Mayotte Island economy: French dependent.

The Mayotte Island is what is termed as a territorial collectivity of France. It is administered by France, and elects one member of the French Senate, as also one of the French National Assembly.

As any typical small Island with limited resources, Mayotte has its share of problems. Rising sea levels, limited economic activity, lack of trained manpower, raw materials, compulstion to import major part of food and other requirements, are some of the issues faced by this Island. But for the fact that it is part of France, it might be in deeper trouble.

Mayotte’s economy is an agricultural economy, and produces vanilla, the popular essence, another essence called ylang ylang, copra, and coffee. As for industries, there is a tiny and developing lobster and shrimp industry that caters to the export market, and some construction activity. France of course, is the Island’s major trading partner, and Mayotte has full access to French markets though it is not in a position to exploit this benefit fully. Tourism however, has not developed much because of its remoteness, even though that factor could in fact become the very reason for developing this industry.

French financial aid plays an important role in the economy of Mayotte and contributes a good percentage of its GDP. The future development of the Island depends on France. The Island has one airport and a seaport, and roadways that are for most part paved.

The year 2011 is going to be an important date in Mayotte’s future as French laws would come into effect on the Island, and the local laws would come for a review and amendments. That could cause tension on the Island, and it remains to be seen how the situation may develop.

Martinique economy: Part and parcel of France.

The Caribbean Island of Martinique is one of the most beautiful and romantic of the Caribbean Islands and is part and parcel of France, the Mainland, that takes care of the Island in more ways than one.

Martinique enjoys several benefits vis a vis France, like free access to its markets, and those of the EU. Large infusions of economic aid, in cash and kind, from France have offset the adverse effects of the global economic recession, as well as the chronic problem of trade deficits.

Being a small entity with limited resources, Martinique has to import most of its requirements resulting in huge trade deficits. That is where the advantage of being part of the French Republic comes in handy.

Services constitute almost 80% of the GDP, while providing employment to 75% of the workforce. Industry contributes 11% of the GDP, while employing 17% of the workforce, and agriculture contributes about 6% of the GDP, employing 10% of the labor force.

Bananas are the most important agricultural produce. Other produce includes pineapples, avocados, vegetables, and sugarcane. Sugarcane production and sugar manufacture have declined in importance in recent years. Industries include rum manufacture, oil refining, sugar, tourism, and construction. Rum manufacture has replace sugar as an important economic activity.

By far tourism is the most important industry of Martinique today, and it offers several delights for the visitor. It is rated as a prime honeymoon destination, and an excellent place for scuba diving with its warm waters ideal for such a sport. Another star attraction are its beautiful and clean beaches.

Martinique exports rum, sugar, fruit mainly bananas and refined petroleum products, and imports crude oil, construction materials, vehicles, apparel and consumer goods. France of course is the major trading partner. Other include Venezuela, Germany, U.S.A., and EU.

Martinique has really nothing much to worry about economically, as it is a small place that France can easily take care of.

New Caledonia: Nickel economy doing well.

The French Territory of New Caledonia is the world’s third largest producer of nickel, a key ingredient in the manufacture of steel. The Island holds about 25% of the world’s nickel reserves, and earns 90% of its export revenues from this mineral.

Apart from nickel, chrome and cobalt are also found in commercial quantities. The discovery of iron, copper, and gold have added luster to the Island’s economy. New Caledonia seems destined to become an important mining economy in the Pacific.

The Island nation enjoys a per capita GDP that is said to be higher than New Zealand’s, and enjoys a GDP growth rate of 4.5%. Inflation at the end of fiscal 2009 was less than 1%. Services contribute the major part of the GDP, followed by Industry and Agriculture. However, large infusions of cash from Mainland France help sustain a public service providing employment to a large number of people. In spite of the happy combination of mining riches and cash infusions from France, New Caledonia has suffered a fall in GDP growth from 6% to 3-4% for 2009. The reason being the dip in commodity prices on account of the global economic crisis.

There is now a realization for diversification of its economic activities to avoid the pitfalls of a one commodity economy. New Caledonia is developing trade relations with the larger economies of the Pacific, namely, New Zealand, and Australia and is now reported to have become the second largest importer of New Zealand goods and services in the Pacific.

Tourism and Construction are two areas that are gaining in importance economically for New Caledonia, in not only providing employment to its workforce, but in boosting the country’s GDP and adding to the variety of economic activities that are likely to sustain it in future.

For now New Caledonia seems to be doing well, having escaped the worst effects of the global economic crisis under French protection.

Guadeloupe economy: Riding piggyback on France.

The French Overseas Territory of Guadeloupe has developed into a tourist attraction for visitors from around the globe, offering clean and beautiful beaches. The Island has become a regular stop for cruise ships that bring in loads of tourists and dollars. The majority of the tourists come from U.S.A., who have made Guadeloupe a part of their Caribbean circuit.

The French dependency receives large doses of economic aid from the Mainland. Subsidized exports from France relieve Guadeloupe of a lot of financial burden in importing its necessities. Services contribute about 85% of the country’s GDP, while providing employment to 65% of the workforce. Industry contributes 9% of the GDP and employs 20% of the workforce, and the rest is contributed by the Agricultural sector.

The major agricultural produce of Guadeloupe is Bananas that contribute 50% of its export revenues. Other produce includes eggplant, sugarcane, tropical fruit, and vegetables. The major industries are sugar and rum manufacturing. Guadeloupe exports bananas, sugar and rum and imports foodstuffs, fuels, consumer goods, etc. France is of course, the Island’s major trading partner.

Being a dependency of France has helped Guadeloupe escape the harsh realities of the global economic downturn. Many other independent Island nations are struggling with various economic problems, and some of them face the risk of being swallowed up by rising sea waters.

Guadeloupe has a cozy comfort zone under French rule though the high level of unemployment among the youth is a matter of concern. It is also not clear how long France would continue to exercise control over its overseas possessions, and to what extent it would continue to subsidize them. With the global economic downturn hurting almost all the economies, including the ‘infallible’ ones, it remains to be seen how the future works out for Islands like Guadeloupe.

Comoros economy: Long path to progress.

Comoros is the world’s largest producer of ylang-ylang, a type of essence, and the second largest producer of vanilla, another more familiar essence.
But these two products, as also others that the country produces are not sufficient to lift the country out of poverty. 60% of the country’s population is said to live below the infamous poverty line. 80% of the population is engaged in subsistence agriculture. The unemployment rate is over 20%. The country is poor in infrastructure, like roads, bridges, telecommunications, etc., that are hampering progress.

Comoros produces coconuts, bananas, cassava, cloves, etc. It exports essences including vanilla, cloves, perfume oils, copra, etc., and imports rice, petroleum products, cement, foodstuffs, etc. France is the major trading partner. Others include South Africa, Germany, Japan, Singapore, etc. Among the major industries in the country are perfume distillation, fishing, and tourism. Industrial production is growing at a sedate pace of around 2%.

Lack of infrstructure is one of the major problems facing Comoros, and the Government is taking steps to upgrade the same. That apart, the Government is attempting to diversify exports to include new and morep potential industries and activities like tourism.

The industrial sector is being encouraged to increase its contribution to the GDP from the present 4%. The services industry contributes the lion’s share to the GDP at 60%. Development of ports and harbors is an important requirement to boost economic activities through international trade. The general recession around the world has also had its impact on the economy of Comoros, with a good number of Comorons working abroad remitting lesser amounts of foreign exchange back home.

From the look of things, it appears that Comoros has a long way to go before achieving a fair level of economic growth and development.

OECD ups global growth forecast.

The Organization for Economic Cooperation and Development, the Paris-based economic advisor to the world’s 30 biggest economies, including the United States and the European Union, has ventured out to predict a positive and upward economic growth for its members, that contribute to 80% of global economic growth, for the year 2010.

The OECD projects economic growth at 1.9% for the year 2010, and 2.5% for the year 2011. Much of this growth appears to be contributed by China, that is going from strengty to strength, and coming to occupy a pivotal position in the global economic development process. The Western and other countries cannot be very enthusiastic and happy about this situation, but there is pretty little they can do about it right now, without hurting themselves in the process. The desperation of their own econmic condition has persuaded them to go along with the present reality of a economically dominant China.

The present global economic crisis has forced avowedly capitalist countries like the United States and the United Kingdom to adopt several measures that are quite contradictory to their capitalist philosophy, and they would surely like to revert to their earlier systems, and regain their credibility. But the situation right now in not conducive to such an exercise.

According to the OECD, slow growth and high unemployment are going to the features of the slow and painful recovery that is now being witnessed, with relief, across the world. While none of the Western economies are expected to touch more than 3% growth, China is expected to clock a growth rate of 9.3% for 2010, and 10.2% for 2011. Other important economies that are likely to record high growth are India, Russia, and Brazil.

The economic crisis has forced a new equation on the world in which the traditional leaders like the U.S., have been forced to take the back seat and let their arch rivals like China do the driving, out of sheer necessity.

The next couple of years would be quite interesting in terms of the changing equations for countries vying to play a leadership role on the world economic and political stage.

France moving tentatively towards recovery.

Forecasting, particularly economic forecasting can be quite a tricky business. Few experts and specialists had an idea of the economic crisis we are going through now. And so, when forecasts are made about supposed recovery in the economic situation, one tends to take the news with a pinch of salt.

The news about the French economy being out of the worst phase of recession and headed towards more sunny climes, though music to French ears, has drawn lukewarm cheer from French business and industry. Having burnt their fingers badly not long ago, commentators do not wish to been misleading the public again with their grand predictions and pronouncements.
The July 2009 data for industry, commerce, and the economy in general seems to be encouraging, with consumer spending reportedly having improved, and manufacturing activity picking up, or rather, not falling further, and so on.

And in the current depressing scenario, even a slight drop in the negatives, is reason for cheer. The actual situation may be that certain factors may have combined to present a transient positive picture. The question is how long this transient phase would last, and at what point may it be considered to have upgraded from the transient to the stable and permanent.

All kinds of statistical tools are employed in supporting theories of an economic rebound, but in the end, unless the ground level situation does not improve, it cannot really have a positive impact on the overall economic situation.

It is still early days for a French economic recovery, though there are strong pointers to it. In the meantime, the French may want to follow the advice popularly attributed to Marie Antoinette to eat cake if they could not afford bread!