Competitive horizon
Article Type: Competitive horizon From: Strategic Direction, Volume 27, Issue 2
Rwanda aims to transform economic standing
The government in Rwanda has announced sweeping initiatives aimed at achieving middle-income nation status by 2017. A report published by www.allAfrica.comnotes its intentions to increase access to clean water by 100 percent and electricity by 30 percent, while also significantly raising energy generation levels. There are also plans to attain a 20 percent rise in the country’s gross domestic product (GDP) by boosting industrial production. The report likewise points out expectations that the financial sector will account for 27 percent of GDP as a result of government aims to ensure access to financial services for 80 percent of Rwanda’s population. Measures targeted at keeping unemployment levels below 5 percent include the creation of over 350 youth cooperatives. In addition, the plan also outlines moves to tackle environmental issues and incorporates a focus on strengthening national identity and unity.
Tourism boost sought by Russia
The Russian government has announced ambitious plans to transform the country into a major tourist destination by 2016, according to a report published by the Daily Telegraph (www.dailytelegraph.com.au). World Tourism Organization records indicate that France with 74 million and the USA with 55 million attracted most foreign visitors in 2009. In Russia, the figure was just 2.3 million. However, the government hopes its $11.83 billion program will see levels soar to around 40 billion tourists annually. It is acknowledged that visitors to Russia face complex bureaucracy relating to such as visa applications and the program will focus on improving the tourism infrastructure. The report also notes the need to make the country more tourist friendly by installing English language signs in key locations to assist non-Russian speakers. Another objective of the program is to improve service quality and specialists will be trained for this purpose. Russia is noted as having some of the world’s most expensive hotels so proposals to improve the quantity and quality of economy-class accommodation are likewise on the agenda. This issue is a particular concern in Moscow and St Petersburg, cities that currently account for up to 98 percent of foreign visitors to the country.
Deficit predicted in copper market
Ongoing strong demand from China is expected to further strain already tight supply and leave the global copper market facing a deficit in 2011. According to Resource Capital Research (RCR), worldwide demand is predicted to increase by 4.5 percent during this period to reach 19.7 million tons. The Australian research firm also expects global consumption to increase annually by between 3 percent and 5 percent until 2020. By this time, the amount of copper consumed in China is expected to be double that of current levels. Mining Weekly (www.miningweekly.com)cites ongoing urbanization and the anticipated rise in gross domestic product(GDP) of approximately 10 percent per annum as reasons for this surging demand within a country that already accounts for 36 percent of global consumption of the metal. The report also points to issues such as cost and technical problems that are expected to hinder the introduction of new projects and ensure that supply remains limited. On the upside, RCR believes that copper prices will therefore hover around current levels or higher for several years at least.
Green energy dilemma for Portugal
A report produced by www.cnn.compoints out that Portugal’s growing reputation for using renewable energy sources has scope to positively impact on its economy into the bargain. For instance, the country had to previously import virtually all of its energy as it boasts no fossil fuels of its own. The shift away from traditional energy sources consequently has huge significance for Portugal’s national deficit. Government intervention to upgrade the once privately-run infrastructure also ensures that a wealth of opportunities in the energy sector continue to exist for both domestic and international firms. Companies are seeking to exploit openings in areas like solar and wind power, while hydropower capacity is set to improve by 50 percent by 2012 thanks to the construction of new dams. However,that Portugal remains strongly dependent on funding from the European Central Bank is seen as cause for some concern. Objections from environmental groups about the impact on local wildlife and the country’s cork-oak habitats are similarly worrying. Skeptics point out that the promised boost to local employment has not materialized and there are also fears that the government might allow multinationals to secure contracts at the expense of domestic firms. Another issue for the government to address is the high costs associated with cleaner energy. Household consumers have faced substantial rises in their electricity bills during the last decade and the report urges the government to find ways of making renewable energy comparable with fossil fuels in this respect.
