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Economic Environment of the Diamond Industry in Mozambique and Tanzania
The Economic Environment of the Diamond Industry
In Mozambique and Tanzania
Both nations of Mozambique and Tanzania are among the poorest globally, with each supported through foreign subsidies and foreign direct investment (FDI) (Tanzania, 2011). The relative levels of poverty however have led to political unrest in Mozambique and diamond smuggling to Zimbabwe, where gems are in high demand in that nations' economy which is rampant with information today
(Latham, Katerere, 2011). Due to the strength of its mining operations in aluminum and abundance of natural resources however, Mozambique's GDP growth rate is expected to reach 8.3% in 2010 according to the CIA Factbook.
Tanzania is the 16th highest ranked producer of diamonds globally, having one of the highest quality of diamonds produced in their mining operations of any on the African continent (Macklem, 2003). Paradoxically however, Tanzania has a negative balance of Payments, far higher Debt ($7.6B) and higher inflated (12% than Mozambique.
Economic Analysis
Both Mozambique and Tanzania are uniquely positioned to continually improve...
Both nations have for years concentrated on Corporate Social Responsibility (CSR) programs that seek to create greater competitiveness in the markets each sells into while also seeking to create greater investments in their respective infrastructures as well (Offenheiser, 2003). The stigma associated with the unethical practices in diamond trading, specifically "dirty" diamonds or those mined using slave labor (Economist, 2000) have in the past drastically reduced demand for Sierra Leone and Tanzania diamonds as well (Macklem, 2003).
The future direction of both economies is predicated on three critical economic goals being attained. Mozambique and Tanzania are reliant on investments from MNCs for their infrastructure, investment in education, and investments in IT systems and platforms to become more knowledge-based and less reliant on natural resources. These three catalysts are critical for the nations to capitalize on their diamond trade (Moldofsdky, 2004). Investing in infrastructure, education, and IT will also create more effective…
References
Sierra Leone: diamond king. (2000, January). The Economist, 354(8155), 46,52.
Laffin, Simon. (2000, January 4). Let's hear how mining companies are helping with power, roads and water: [London edition]. Financial Times, p. 14.
Latham, B., & Katerere, F.. (2011, January). Diamond Smuggling Thrives in Zimbabwe. Business Week,1.
Katherine Macklem. (2003, September). Diamonds with an edge. Maclean's, 116(36), 52.
Differentiations are always brought up by the contemporary mainstream economists and their theories regarding ontological questions and assumptions or mere recognition regarding conformity of preference structures regarding some rules can be approximated usefully. This is done by the commodities' association or there quantities uses. Taking into account that preference can as well be taken as a usefulness determinant, departing of this conception from the usefulness concept should not take place.
Diamond Wars in Western Africa Throughout Western Africa, the quest for diamonds has taken control of many of people and affected the stability of economic and governmental status throughout the nation. The diamond mines have caused civil wars, which have resulted in many casualties over the years. Possibly the major cause of the diamond wars is human nature, as it is human nature that sparks the desire to own diamonds. Due to
Principal-Agent Model in Economics and Political Science The international political perspectives of free trade A Global Analysis International Trade Impact on Tunisia The Export of agricultural products International trade and development of Tunisia Balance in the Trade Regime Imports and exports of Tunisia Exports Imports Coping With External and Internal Pressures The Common External Tariff (CET) Safeguard Measures Anti-Dumping Duties (ADDs) and Countervailing Duties (CVDs) Rules of origin The New Commercial Policy Instrument Sector Based Aspects GATT/WTO's Main Principles Non-discriminatory trade Multilateral negotiation and free trade The Trading Policies
This process, however, should be enriched with additions that would turn it into a fair international scheme and enforced by additional bodies. Reference List Associated Press. 2004. De Beers Pleads Guilty in Price Fixing Case. July 13th edition, http://www.msnbc.msn.com/id/5431319/ Crossette, B. 2000. Report on Angola Sanctions is Challenged in the UN. The New York Times, March 16th Edition, http://www.globalpolicy.org/security/sanction/angola/report2.htm De Beers corporate website, Accessed March 09, http://www.debeersgroup.com/en/Sales-and-distribution/Best-Practice-Principles/ Global Witness. 1998. A Rough Trade: The
"In the case of arms trafficking," they advise, "there are arms dealers eager to sell AK-47s to conflict zones all over the world. There are shipping and air transport services willing and able to transport the weapons to warlords who are destabilizing much of West Africa. The warlords trade diamonds for guns, and the arms brokers and transporters in turn launder the diamonds with brokers in Antwerp and deposit
The entire framework of the country is shifting, and it is leaving the people from the rural outskirts behind. Soon, the natives will be like strangers in their own country, and they will not retain any rights or voice. Even worse, those whites with power and money run the government, and own just about anyone they want by bribing them and throwing their money around. Conteh writes, "People who had