THE SUCCESSFUL INTEGRATION OF THE CONTINENT'S ECONOMIES INTO THE GLOBAL ECONOMIC SYSTEM DEPENDS ON IT.
G. E. ROSHCHIN, Doctor of Economics
In most African countries, capital accumulation and economic growth are severely limited by the current state of their productive forces. Attracting foreign currency, technological and intellectual resources and managerial experience on a significant scale from abroad helps them to some extent reduce the chronic shortage of investment, mitigate the imbalance in production and consumption, smooth out the severity of social imbalances, and improve the situation in providing the population with food and jobs.
Foreign entrepreneurial capital is one of the most important factors in connecting the traditional economy of the continent to global processes, dynamic modernization of the economy and society. Therefore, African Countries actively compete with countries from other regions of the world in the fight for foreign investment, and strive to create a favorable investment climate that would help expand incentives for productive investment by both national and foreign investors.
According to experts of the World Bank (WB), in developing countries, where the population growth rate is high, 1.2 billion people live in the same country. With people earning less than $ 1 a day and youth unemployment twice the global average, improving the investment climate is a top priority for Governments. Increasing the number of jobs and other opportunities for young people is vital for the successful existence and development of many African States.1
In Africa, of course, there are no illusions that the existing problems will be solved in the context of the global financial crisis and the downturn in the global economy. One of the most serious consequences of the current crisis for many countries on the continent may be a decline in global demand for raw materials and a significant reduction in their export revenues. This will lead to a decrease in na ... Read more