Chad Growth and Diversification : Leveraging Export Diversification to Foster Growth
This report describes the key policies for Chad to successfully leverage export diversification to foster economic growth. After several unsuccessful attempts at diversifying in the 1990s, Chad has deepened its dependence on commodities, mainly rel...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/224431559672405878/Chad-AFCW3-Growth-and-Diversification-Leveraging-Export-Diversification-to-Foster-Growth http://hdl.handle.net/10986/31839 |
| Summary: | This report describes the key policies
for Chad to successfully leverage export diversification to
foster economic growth. After several unsuccessful attempts
at diversifying in the 1990s, Chad has deepened its
dependence on commodities, mainly relying on oil; which came
to replace cotton. However, the experience of other
countries, in Africa and other parts of the world, shows
that while large scale production of oil resources offers
great opportunities, it comes with major shortcomings.
Chad’s Vision 2030 is to become an emerging economy, driven
by diversified and sustainable sources of growth. The goal
is to triple the average GDP per capita at current prices,
by increasing it from US$ 730 in 2014 to US$ 2300 in 2030,
while drastically reducing the poverty rate from 46.7
percent in 2011 to 8 percent during the same period. Chad’s
economy is overly dependent on crude petroleum, which makes
it vulnerable to external shocks. Therefore, to achieve this
development goal, only an export diversification strategy
can foster a larger menu of goods and services than can
become growth-accelerating and job-creating activities. Its
implementation challenges are formidable, but the country
has little choice, as the social unrest following recurrent
oil price slumps, its burgeoning youth population and
regional security threats may foment more violence in an
already fragile and volatile economy and keep investors
away. Hence, this report outlines a strategy to achieve this
vision centered on the diversification of its non-oil
economy (mainly agricultural-based exports) away from
natural resource-based commodities. |
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