Finding New Paths for Growth in Djibouti
The report posits a long-term vision for Djibouti s economic development with specific measures that form a road map for long term, sustainable growth. The current growth model is highly capital intensive and dependent on rent-seeking, thus present...
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| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/03/17427197/finding-new-paths-growth-djibouti http://hdl.handle.net/10986/20570 |
| Summary: | The report posits a long-term vision for
Djibouti s economic development with specific measures that
form a road map for long term, sustainable growth. The
current growth model is highly capital intensive and
dependent on rent-seeking, thus presenting sustainability
and diversification challenges. Growth has increased
recently, reaching 4.6 percent on average between 2005 and
2010. Also, recent growth is tightly linked to strong
inflows of foreign investment, financing the new port and
hotel infrastructure. These investments are due to
Djibouti s strategic geographic location at the entrance to
the Red Sea, owing to the presence of foreign military bases
and its status as Ethiopia s sole means of access to the
sea. Historically the government has played an important
role in Djibouti s economy but with today s fiscal
constraints, growing the private sector is the only way to
sustain and promote growth, provide jobs, and reduce
poverty. The private sector remains very small and not well organized. |
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