Thursday, July 28

Madagascar tops list of worst economies

From 1970 to 2009 per capita GDP in Madagascar tripled after inflation point of view - for a whopping $448, according to the United Nations. About the same time period per-capita GDP in nearby South Africa more than sevenfold to $5,700 has increased.

A history of military coups, mismanagement, and steady population growth left Madagascar in the dust than other emerging markets countries such as South Africa, India and Brazil surge ahead. Yet a further coup d ' etat in 2009 forced the United States to Madagascar from a preferential tariff arrangements program, will cost thousands of jobs in the textile sector seize the besieged island nation. Vaccinations and primary school fall endings, and 77% of the population now lives in poverty.


It landed caused problems like this, top 2011 the Madagascar of the people on the Forbes list of the worst economies in the world in the year. There are cases, poor basket (see: Somalia). But the countries with relatively complete data from the International Monetary Fund Madagascar takes, sometimes called "Eighth continent" due to its natural diversity is characterized for political mismanagement, corruption, poverty and lack of growth.


Our list to construct, place we 177 countries for the three-year average statistics for GDP growth and inflation (including the IMF 2012 estimates), plus the GDP per capita and current account balance, a degree of whether the country is imported more than exports.


There have been significant changes to the list since last year. Unique losers like Zimbabwe and Ghana their economic get act together and way moved from the list, while some countries, including Armenia and Jamaica, marched through the lower ranks primarily due to the global financial crisis. Others, deserves such as Madagascar and Nicaragua, their positions almost exclusively due to the inability of their rulers. It should come as no surprise, that eight of the ten economies also worst were in the bottom quartile countries in transparency international global corruption index, Guinea, Kyrgyzstan and Venezuela scores close to the bottom.


"Income, (damage) covers economic development," says transparency international Robin Hodess, Group Director of research and know. "Suffer any indexes that reflect human development." "If the Government does not work, not economies grow."


Madagascar's poor economic performance reflects the turmoil in his politics. After the independence of the France in 1960, was the country through a brief period of prosperity. But the rest of the world has drawn the per capita GDP since the early 1970's as fast as the economy has grown Madagascar's population.


The current round of troubles began in 2009 as a democratically elected President Marc Ravalomanana under strong pressure from the military and left hand makes strengthened opposition leader Andry Rajoelina. European supporters cut back was obliged by law to $1 billion in promised aid and the United States, Madagascar from the African growth and opportunity Fund importer delete devastating the textile industry. Much of the country has, descended a barter economy according to the U.S. State Department


No. 2 is Armenia, whose Wirtschaft to 15 percent decline in 2009, funded as an expatriate construction boom along with the world economy in the sand. This landlocked States former Soviet Republic, Russia and Iran for virtually all of its energy supplies depending on fights with a mediocre growth forecast for the next few years to keep up with the rest of the world. Per capita GDP of $3,000 is less than one-third of neighboring Turkey and 7 percent inflation is running. On top of that, Russia truncated to the supply of diamonds to hurt Armenia once-thriving diamond industry.


Thirdly, Guinea is a west African State, sitting on half of the world accessible bauxite, reserves, but has trouble attracting productive investments. A military coup in 2008 and "Uncertainty created by government hostility towards investment" have slowed down badly maintained roads, economic development, according to US State Department. The 2010 election as President of Alpha Conde seems somewhat reduced fears have, and Abu Dhabi and BHP Billiton lost a 5 billion dollar alumina refinery project in the North-Western Guinea.


No. 4 Ukraine could still per capita GDP far behind even countries such as Serbia and Bulgaria routes to a leading European economy - and has rich farmland and generous mineral raw materials. The US State Department blames "Complex legal and administrative provisions, bad governance, weak enforcement of contract law by courts and in particular corruption." Jamaica, come in the fifth, is almost entirely a victim of the global financial crisis which devastated its vital tourist industry. On the positive side: Jamaica's poverty rate has been reduced almost in half to 10 percent in recent years during literacy has risen to 88 percent according to the World Bank.


Perhaps the cancer that met dictator Hugo Chavez will bring liberation Venezuela, according to no. 6 managed to keep his people poor despite an embarrassment of the natural wealth. The only thing that healthy about Venezuela's economy is oil fueled surplus its. An inflation rate of 32 percent and subpar GDP show Hugo's management the awkwardness. Nicaragua, his people in subpar economic performance, also suffers from a President who claims to support "the people", but led only the poor hurts.


10. Is Iran, the 10 percent of the world's proven reserves oil according to the energy information Administration has. The Islamic Republic economy, hobbled by Insider control of important industries, international sanctions and mismanagement, is growing at less than one-third of the world's average rate. Per capita GDP of $5,493 sets Iran war torn Iraq than oil-rich peers such as Saudi Arabia and Kuwait far closer.


The Iranian Government has some steps responsible, including the Elimination of 60 billion dollars a year in subsidies for energy products, public transport, wheat, and bread. But, that has as much as 20 times increased the prices of some products, and the International Monetary Fund says that authorities have a hard time to keep inflation below 14 percent.


© 2011 Forbes.com

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