Nord Stream project 2 in common understanding is gas project and the continuation of previous project. As we all know, the project belongs to Russian company, Gazprom alongside companies from France (Engie), Germany (Uniper and Wintershall), Austria (OMV) and Netherlands (Shell). Gazprom is a gas company which Russia holds in a 51% share of this company. Russia itself is the main supplier in fulfilling European Union gas. For developed countries, fossil fuels is an important commodity. Despite campaigns for using renewable energy in the future, fossil fuels still are primadona and favorite for developed countries and this includes all European Union country and specifically Germany.

Germany, as we know is one of the powerhouses in shaping the European Union policy. Germany’s economy is among the largest besides France and also in the global arena with their ordoliberalism doctrine. In time of euro crisis 2008 until now, Germany has succeeded in maintaining stability in the market. They have significant influence in EU policy, especially in economy and foreign policy. Germany is also one of the “green member” in EU whose support environmentally energy policy.

Talking about Nord Stream Project 2 , European Union have a clear position that they do not support the project. The reason is political rather than economical. Nord Stream Project 2 will bring Russia to have greater power in Europe. Until now, Russia has been the main supplier to EU with quiet high number of percentage, 40%. With this number, risk to gas deficit is high and it depends on whether their relationship is in good shape or not. Contradiction with EU position, Germany have their own reason to accept the project.

No one will ever doubt that Germany is one of the biggest economies in the European Union. From 2015-2017, Germany shows positive development in their GDP with 1.5% in 2015, 1.86% in 2016 and significant increased in 2017 with 2.51%. Increase in foreign demand and value added in manufacturing industry has cause Germany macroeconomic, especially in 2017 grow high which leads to bigger investment in Germany. Labor market also performs positive with unemployment rate decrease from 6.1% in 2016 to 5.7% 2017.

Their positive development in macroeconomic, like it or not always increase energy consumption. Energy consumption in 2017 is peaked to 13,550 Petajoule (PJ) which means that several energy sectors suffer increasing in consumption. The most widely used of energy in Germany is mineral and natural gas. As for natural gas, increase uses at 24% compare to 2016 on it’s primary energy consumption share. Since Germany does not have natural gas supply, they need to import from other countries to fulfill their needs. Despite fluctuation in LNG price, one must know that even LNG price is quite cheap, but shipment cost is another thing.

Although Germany-Russia relations is deteriorated, consider Russia behavior lately, and Germany does not implement ostpolitik (A view that Russia’s is strategic partnership to Germany) to Russia anymore, Nord Stream Project 2 can benefit Germany. Ma. Nord Stream Project 2 will reduce shipment cost for Germany and balance sheet of suppliers. Chancellor Merkel accepting this project is also affirmation that Germany-Russia relations is “business as usual”.

What makes Germany accept this project is rather interesting. Despite some reluctance and rejection in European Union institution about this project, Germany is ignoring them and prefers to fulfill their national interest. But I think Germany behavior is reasonable. Any country will always put their national interest first. There are people needs to be taking care of. If Germany stands idly by putting European Union rule of law and policy first rather than their people, all I can say is that they fail as a country. Every country is rational, they know what benefits them and what is not. It is not that my opinion bring Germany to bad position and agains the European Union, I think when Chancellor Merkel affirmed that Germany acceptance in this project for German reason balance between his position in European Union and fulfilling their national interest. Germany is great support for the European Union solidarity and integration, but European Union knowing well and taken fully consideration that after Brexit, they need to solidify even more and EU needs Germany as a main power alongside France to make EU greater. Furthermore, taking the consideration that this project is a joint venture between Gazprom and five companies from Germany, Austria, Netherlands, and France and also Germany is a gas importer who depend their needs from abroad. Any chance to reduce shipment cost will be taken by any country.

Rizky Ridho Pratomo is an International Relations student at National Development “Veteran” Jakarta University. 

Pakistan is going to polls on July 25^th. If the general elections take place as per the schedule, then it would be the third consecutive democratic transition in the history of Pakistan.  For the first time, two consecutive democratic governments have completed their five-year terms. “With the term of the most recent democratically elected government coming to an end a few weeks ago, we have also come to the end of the cycle since 1977, where a decade of civilian government has been followed by a decade of military dictatorship,” comments S. Akbar Zaidi –a political economist. At the beginning of this year, no one was sure about the third consecutive democratic transition of the elected governments. It was because of the cyclical effects as commented by Mr Zaidi. Now, every passing day tells that the general elections will take place as per the schedule. However, certain political analysts and political parties doubt that the coming general elections will be free and fair elections. They raise the issue of election engineering by state institutions to support certain political party (s).

History of general elections in Pakistan:

The first-ever general elections in the history of Pakistan were held on December 7^th, 1970 which were ensued by chaos in the country and resulted in the separation of East Pakistan (Now Bangladesh). Leaders of certain political parties give the example of the first general elections for being free and fair elections and link them with upcoming elections which, they believe, are going to be the free and fair elections after 1970. They sadly do not consider the political instability and chaos which was caused by the results of 1970 general elections.

General elections and rigging have been a common norm in Pakistan. In general elections of 1977, Zulfiqar Ali Bhutto was accused of rigging the elections. In 1985, General Zia’s machinery rigged the general elections and a puppet government was formed. These elections were held on non-party basis. From 1988 to 1997, Pakistan went to polls for four times. All these general elections were rigged in one way or another. From 1988 to 1999, none of the so-called democratically elected governments could complete their tenure of five years. On October 12^th 1999, General Musharraf-Chief of Army Staff of that time dethroned Nawaz Sharif’s government after a coup d’état. Next general elections were held in 2002 under Gen. Musharraf and a so-called democratic government of Pakistan Muslim League-Quaid-e-Azam (PML-Q) was formed with a difference of only one vote. PML-Q was called the King’s party. Gen. Musharraf held the powers as President under constitutional amendment of 58 2(b).

Next general elections helped the rise of democracy in Pakistan. Two times Prime Ministers Benazir Bhutto and Nawaz Sharif both ended their exile and returned to Pakistan before the general elections. Benazir Bhutto was assassinated on December 27th, 2007 in Rawalpindi where her father Zulfiqar Ali Bhutto was hanged in 1979. Her party, Pakistan Peoples Party (PPP), won 122 seats in the national assembly after adding women and minority quota seats. Other political parties did not hinder its way from making a coalition government. PPP completed its five year term and for the first time, in the history of Pakistan, a democratic transition of elected governments took place after general elections of 2013. In 2013, Nawaz Sharif’s political party Pakistan Muslim League-Nawaz (PML-N) formed the government and elected Nawaz Sharif as Prime of Pakistan for the third time. However, Nawaz Sharif had to resign after a court verdict in Panama Papers Case on July 28^th 2017 without completing his five year term for the third time. The national assembly completed its term and Pakistan is going to the polls for a third consecutive democratic transition on July 25^th.

The cycle of Democracy and Dictatorship:

Since its inception, Pakistan had democracy and dictatorship in intervals. Pakistan has been ruled by dictatorial regimes for almost half of its 70-year history. From 1947 to 1958, Pakistan had a civilian government. However, many historians believe that the military had started playing an indirect role long before 1958. In 1958, Pakistan’s first President General Iskander Mirza abrogated the constitution and imposed the martial law. General Ayub Khan, then Commander-in-Chief of Pakistan army, dethroned him after three weeks. Pakistan came under the direct military rule for the first time. General Ayub Khan ruled the country till 1969 and passed the powers to General Yahya Khan. General elections 1970 took place under Gen. Yahya Khan. The country went into chaos and East Pakistan (Now Bangladesh) separated from West Pakistan. According to Nadeem F. Paracha who quotes Hamid Khan that Pakistan did not have a government in any form from 17-20^th December 1971. From 1971 – 1977, Zulfiqar Ali Bhutto ruled the country first as the President and then as Prime Minister. He is also said to have held the title of civil martial law administrator. General Zia-ul-Haq dethroned Bhutto’s government and the country came under the direct military rule for the second time. Gen. Zia held the power till his death in a plane crash in August 1988. Pakistan had democratic interlude from 1988 -1999 as per Ian Talbot. In 1999, Gen. Musharraf’s coup d’état brought the country under the direct military rule for next 9 years. In 2008, he resigned to avoid an impeachment vote in the parliament. Sun of democracy rose in Pakistan which is still shining.

What to expect from the coming general elections?

Coming general elections are expected to take place as per schedule. There are no signs of elections getting delayed. There will definitely be a third democratic transition. However, some political analysts and certain political parties are accusing certain state institutions of engineering the upcoming elections. They accuse these institutions of paving the way for a certain political party (s). Moreover, according to a news report, religious parties have fielded more than 460 candidates for national assembly seats. These candidates have been nominated by Muttahida Majlis-Amal (MMA), Tehreek-e-Labbaik Pakistan, Hafiz Saeed-led JuD’s political wing Milli Muslim League and other religious political parties, the news report adds. Religious parties are not contesting the general elections for the first time in Pakistan. However, there are a few new parties contesting elections this time. In case, they win even a small number of seats, Pakistan’s future especially related to a minority group will be uncertain. Pakistan might end up having a hung parliament but worrying part would be having religious parties having some seats in the parliament.

Elections and Violence:

Liberal political parties and individuals have been targets of violence during their election campaigns. However, the situation is not as worse as it was during 2013 general elections. 148 terrorist attacks had taken place during 2013 election campaigns. During the election campaign for upcoming general elections, 14 lives including a Khyber Pakhtunkhwa provincial assembly candidate Haroon Bilour from Awami National Party (ANP) were claimed by a suicide attack in Peshawar. More than 60 people were injured during the blast. Moreover, more than 130 lives along with more than 200 injured have been claimed again by a suicide attack in Mastung city of Balochistan province. Balochistan provincial assembly candidate Mir Siraj Raisani from Balochistan Awami Party (BAP) has also lost his life during the blast. These two suicide blasts have shattered the relative peace maintained throughout the election campaigns for the upcoming elections.

Conclusion:

History is clearly on its way to witness a third consecutive democratic transition in Pakistan. It, indeed, is a going to be a historic movement for Pakistan. Firstly, democracy (in any of its form) is on the track in Pakistan. Secondly, democracy and dictatorship cycle is going to end or it has already come to an end. However, doubts of certain political analysts and parties about election engineering cannot be completely ignored. Nonetheless, their veracity is yet to be ascertained which would be possible after the results of upcoming general elections are out.

Muhammad Murad has been writing for different magazines and blogs since 2011. He initially started writing on social issues of Pakistan and later on, he began writing on internal and external issues related to Pakistan. Currently, he is Young Diplomats’ ambassador in Pakistan. He believes in a peaceful liberal democratic world away from war and conflict which would be possible by the power of the pen, not the gun. Muhammad is a business graduate turned  social scientist and aspires to be a writer

On July 1, the Communist Party of China (CPC) celebrated its 97 th anniversary.

The party has 89 million members and its reach among the college going students has faced any drastic shrinkage with 1.7 million student members. Around a fourth of its members are below 30 years of age.

July 1, 2018 also marks the 21 st anniversary of Hong Kong’s return to China. Thee have been celebrations and the pro-democracy protests have been amongst the smallest in years. Carrie Lam, the Hong Kong chief executive expressed confidence in Beijing’s leadership and Hong Kong’s future

Most FIFA venues have witnessed large number of sponsorships and hoardings from Chinese firms. This may well be an indication of the next super power inching towards the throne room.

China has also extended an additional $1 billion to secure Pakistan’s falling forex reserves. With this transfer China has lent about $ 5 Billion in the financial year ending in June. Pakistan is expected to seek IMF funds after the July 25 election.

Top South American Tourism Economies & Destinations : Thanks to dropping airfares, improved infrastructure and some imaginative marketing, South America has become one of the most fashionable places for the 21st century traveller to visit.

So which South American nations are winning the battle to become the continent’s most popular tourist destination?

Brazil

The beautiful nation of Brazil has maintained its incredible popularity with 6.6 million touristsvisiting the nation in 2016. Much of this can be attributed to the success of the Olympic Games, as well as the fun-loving reputation of the country that’s best witnessed at the Rio Carnival.

It’s been a touch challenge for Brazil to maintain these impressive figures in light of ongoing political instability and the Zika virus. Plus popular activities like gambling are still illegal in Brazil, and so fans of the likes of LadyLucks might need to look elsewhere if they are seeking for a real-life equivalentfor the jackpots that can be found at the gaming site.

Argentina

Close behind is Argentina who enjoyed 5.9 million foreign visitors coming to the country in 2015. With a wide range of climates that range from polar expanses in the south, to tropical areas in the north, the country has become a real hotspot for more adventurous travellers.

But with cities like Buenos Aires becoming one of the hippest places on Earth, it seems that Argentina is also starting to attract a broader range of tourists.

Chile

Tourism figures for Chile showed a massive 26% growth in 2016, and many of these visitors were from as far afield as Australia and China, plus the arrival of the first direct flights from the UK to Santiago encouraged plenty of British visitors.

Whilst its relative isolation has been a problem for Chile in the past, it could now prove to be a real advantage. This is because the 5.6 million visitors were keen to explore the stunning wildernesses of the Andes mountains as well as the otherworldly landscapes of Patagonia and the chic colourful seaside towns like Valparaíso.

Peru

And finally it’s good to see how Peru is still enjoying a growth in tourism figures with 3.5 million visitors flocking to the mountainous country in 2015.

Whilst many of these tourists come to see the likes of the Machu Picchu ruins, it’s also been apparent that ecotourism is playing a large part in Peru’s success with places like the Manú National Parkgiving foreign visitors an excellent place to hit the jackpot by seeing the elusive giant armadillos, jaguars and capybaras in their natural environment.

Ever associated the hot Middle-East with chocolates? Why not , Bassam Ghraoui made some of the best in Syria.

Armies are considered an important part of a country and its security. Every year, a large fortune is allocated out of the budget for fighting battles. Countries take special initiatives to strengthen themselves militarily. If we try to compare the armies of the different nations to gauge the countries with strongest armies, it would probably not be possible to do so hypothetically. However, without leading to a bloodbath, we can have a fair idea about the military strengths of countries by taking into account the arsenal in their possession, advanced technologies implemented, training, power and number of allies, size of the army, budget allocated, etc. While it is a rather subjective issue, several organizations, such as Business Insider, conduct their own studies to rank the military powers. Let’s take a look at the Top 10 Countries with Strongest Armies.

10. Japan

Japan was the land of Samurais, and Japan was a leading military force in WW-II. Interestingly, its peace treaty at the end of WW-II prohibits it from having an offensive army. In response to its growing disputes with the ever-expanding China, Japan started military expansion, first time in 40 years, placing new base on outer islands. It increased its military spending, first time in 11 years, to $49.1 billion, the world’s 6th highest. It has over 247,000 active personnel and almost 60,000 in reserve. With 1,595 aircraft, it is the 5th largest air force. The army is also equipped with 131 war ships. Besides, through its recent defence initiatives, it maintains a solid military presence in Asia.

9. South Korea

South Korea shares its border with North Korea which has an extremely powerful army at its disposal, and hence, is a constant threat to South Korea. But, its offensive neighbour is not its only problem. To meet the increasing armament of China and Japan, South Korea has been increasing its defence expenditure, which is now $34 billion. It maintains a large army of over 640,000 active personnel and 2,900,000 additional personnel in the reserve, alongside the 6th largest air force with 1,393 aircraft, as well as a small 166 ships. The country has about 15,000 land weapons, including rocket systems, as well as 2,346 tanks. It routinely participates in military training with the US.

8. Turkey

It was perhaps the struggle of the other countries sharing borders with the regions where the Islamic State has a strong presence, the struggle in Syria or the probability of clashes with the Kurdish separatist organization, PKK, which made Turkey realize that it needs to prepare itself to face danger head on, if and when it approaches, and decide to increase its investment in defence in 2015 by 10%. Its defence budget is at $18.18 billion. Its army size, including regular troops and reserves, is just above 660,000. Turkey’s air force has 1000 aircraft. The military also claims to 16,000 land weapons. It has strong diplomatic ties with the US, and partakes in initiatives around the world.

7. Germany

Germany is one of the strongest economic forces in the world, but despite spending around $45 million every year, the army’s condition seems to have deteriorated in the past few years. This is perhaps because, the generation born and growing up in the 1950-60s were against war and its atrocities, and the fear of being beaten by countries with strongest armies, still discourages the people to join the army. In 2011, mandatory military service was eliminated to prevent the country from being a militarized country. It has only 183,000 active frontline personnel and 145,000 reservists, alongside 710 aircraft in total, and on-land armament of nearly 5,000 of various kinds.

6. France

France is another country to follow Germany’s lead because, in 2013, it took the decision to ‘effectively ‘freeze’ its military spending, and cut down on the defence jobs by 10%, to save money for technologically advanced equipment. Its current military budget stands at $43 a year, which is 1.9% of the country’s GDP, much below the spending target as set by NATO. Over 220,000 regular force combines with reservists to form a force of about 500,000. It has just over 1,000 aircraft, along with 9,000 ground vehicles. Even if these do not make France a formidable army, its position in the EU and UN, a total 290 nuclear weapons, and significant deployments strengthen the country.

5. The United Kingdom

The United Kingdom, another member of the EU, also has a plan of reducing the size of the armed forces by 20% between 2010 and 2018, and apply smaller cuts to the Royal Navy and RAF. The defence budget of the UK currently stands at $54 billion. It has a regular force of only about 205,000, along with a small air force of 908 aircraft, and an even smaller navy of 66 ships. However, the army of the UK is still a powerful one, with its superior training, equipment and its 160 nuclear weapons being the main strengths. The Royal Navy is planning to put to service HMS Queen Elizabeth, in 2020. It is an aircraft carrier, planned to carry 40 F-35B joint strike fighters around the world.

4. India

India has put its massive population to use, and built an army of a sizeable 3.5 million, including 1.325 million active military. The huge size of the Indian military is one of the reasons why it has always remained among the countries with best armies in the world. The man force of the army is complemented by almost 16,000 land vehicles which include 3,500 tanks, as well as 1,785 aircraft, alongside nuclear weapons. Its ballistic missiles can hit all of Pakistan or most of China. Its current defence budget stands at $46 billion, but it is expected to rise, in a drive to modernize the military power and become the 4th highest spender by 2020. It is the world’s largest military goods importer.

3. China

China’s defence budget officially stands at $126 billion, and, in a relentless drive to invest massively in defence, there is likely to be an increase of budget by 12.2%. It has a formidable size of army, with 2.285 million active frontline personnel and a further 2.3 million reservists, making it the world’s largest land force, along with nearly 25,000 land vehicles. It has another 2,800 aircraft on its air force. China is in possession of about 300 nuclear weapons, alongside 180 different methods of their deployment. China recently acquired sensitive information about the new F-35, and is noted for successfully stealing sensitive military technology. China is rightly among the top 3 armed forces.

2. Russia

Russia’s defence budget stands at $76.6 billion, and is expected to grow 44% more in the next three years. In fact, the military spending of Kremlin has increased by about a third since 2008, especially since Vladimir Putin took hold of Russia in 2000. The Russian army has shown substantial growth since the collapse of the Soviet Union two decades ago. It has 766,000 active frontline personnel and almost 2.5 million on the reserve force, though the soldiers receive mediocre training. The man force is backed by 15,500 tanks, making Russia the largest tank force in the world, though it is aging, like the other equipment. The country is the world’s leader, with almost 8,500 active nuclear warheads.

1. The United States

The United States spends a whopping $612.5 billion on the military, more than the other nine countries’ budgets combined. It maintains a remarkably large army composed of over 1.4 million soldiers, and a further 800,000 reservists. To complement the active ground force comprising well-trained men and women in uniforms, its biggest advantage is that it is the world leader in aircraft production, with a fleet of 19 aircraft carriers, while the carriers operated by the world together sum up to 12. The US implements cutting-edge technology like the Navy’s new rail gun, and the country also has 7,500 nuclear warheads at its disposal. No wonder it is no.1 military force since WW-II.

Thus, the defence budget, man power, air force, navy, etc. together help to determine the most powerful military forces in the world. The countries with strongest armies are the nations that are considered the biggest threats to global security, and these are the nations that also become the heavyweights in global affairs. While the US has projected a formidable military force for a long time, Russia has risen well, and China, too a force to reckon with. These countries clinch the top 3 positions, and the strategies of other countries may gradually make them recognizable forces in the world in a not-so-distant future.

This article was written by Wonderlist.com and is available here.

Who are the Richest African Countries today? Africa is blessed with an important amount of mineral reserve. Among these reserves are included gold, cobalt, platinum, manganese, diamond, uranium and many more. Unfortunately, due to many reasons,  African countries have been unable to harness these resources into great wealth. However, it seems that with the new generation of African Leaders this is about to change.

There still a number of African countries that have done better than the others. We’ve compiled a list of these top 10 richest African countries based on their current economic performances and their GDP per capita1.

EQUATORIAL GUINEA

• Based on its GDP per capita of $36515, Equatorial Guinea is the richest country in Africa. Oil discovery in this nation in1996 was the event that turned the economy around.

• Large hydrocarbon revenues made it possible in 2017 to continue major structural changes underway for over 20 years, both in infrastructure and human development.
• One of the major challenges in stimulating entrepreneurship is the opening up of the market, in particular, the improvement of the business climate and better regional integration.

GABON

• Gabon ranks as the second richest country in Africa with a GDP per capita of $15960.

The government of Botswana has been able to channel the country’s revenue from diamonds into development. Botswana’s GDP per capita is $14753.

• • The economy recovered in 2016 to 2.9%, driven by the rebound in the global diamond market.
  • Growth prospects remain favorable but crucially depend on continued rebound in the global diamond market, improved reliability in electricity and water supply, as well as reforms.
    
  • Reducing vulnerability to adverse shocks will require accelerating the pace of reforms aimed at enhancing competitiveness and improving the business climate to promote industrialization and entrepreneurship.

MAURITIUS

• Mauritius is the fastest growing wealth market in Africa. One of the major factors that have promoted growth is the favorable government policies. In fact, Mauritius is ranked number 1 in Africa in terms of ease of doing business.
• 

• The pace of economic growth was moderate in 2017, with the economy growing by 3.6% compared with 3.4% in 2015 reflecting a slight increase in domestic investment that was offset by weak external demand.
• Political stability and sound macroeconomic management continue to promote investor confidence. Higher skills and productivity levels would make the country more competitive and innovative.
• The government has demonstrated a firm commitment to promoting, industrialization and entrepreneurship, in an effort to boost sustainable economic growth and enhance the competitiveness of the economy.

 SOUTH AFRICA

One-third of Africa’s 50 richest individuals are South Africans. The overall GDP of this country is $555, 000, 000, 000

• Economic growth decelerated to 0.3% in 2016 although it is expected to rebound to 1.1% in 2017 and higher in later years.
• Growth prospects will be driven by moderately stronger global growth, more favorable weather conditions, reliable electricity supply, less volatile labor relations, recovering business and consumer confidence, and stabilizing commodity prices.
• The industrialization strategy is geared towards promoting entrepreneurship, which will also help to generate employment.

LIBYA

• Crude oil accounts for a large portion of Libya’s revenue. Their GDP per capita stands at $10129 and the overall GDP is $66, 941, 000, 000

• Real GDP growth was -8.1% in 2016, against -10.1% the previous year, due to a slight improvement in oil production, and is expected to recover to -4.9% in 2017 following exemption from OPEC’s supply cap, the recapture of eastern ports and reopening of oil pipelines.
• A persistent struggle for power has prevented the rival governments from converging towards common ground.
• Political instability, humanitarian crisis and security issues continue to hinder efforts to re-establish control over the economy and most national strategies, including those related to industrialisation and entrepreneurship, have remained on hold.

TUNISIA 

• The gross domestic value of Tunisia is over $100 billion dollars.

• Real GDP growth rate of 1.0% was lower than the 2.6% predicted in the 2016 budget but is projected to increase with accelerated implementation of the 2016-20 strategic development (PSD)
• The new administration elected on 31 August 2016 called for reforms to be intensified.
• Tunisia raised TND 34 billion (Tunisian dinars) in pledged public and private funding at an international conference on the investment held in late November to promote the creation of more wealth and jobs.

 ALGERIA

This is another Northern Africa country that ranks among the top richest with a GDP per capita of $8715.

• In 2016, real GDP grew by 3.5% down from 3.8% recorded the previous year on account of lower oil price.
• In July 2016, the government adopted a new economic growth plan (2016-30) focusing on the private sector and a three-year budget stabilization strategy.
• The non-oil and gas industry accounted for no more than 5% of GDP in 2016, compared with 35% at the end of the 1980s, so the authorities are looking towards a re-industrialization of the country.

NAMIBIA

Namibia is another country on the list with a GDP per capita $6826. 

• Growth sharply moderated to 1.3% in 2016 but should be rebound in 2017 as the agriculture sector recovers and production from new mines accelerates.
• On-going fiscal consolidation policy measures to reduce public debt and help address the current account imbalance will need to protect growth-promoting public investments.
• The “Growth at Home” strategy for industrialization and the policy for promoting micro, small and medium enterprises provide a strong foundation for diversification and job creation but the pace for business environment reforms needs increasing to support entrepreneurship.

EGYPT

With a gross domestic of over $500 billion, Egypt is one of the richest countries in Africa Although recent crises in Egypt has affected the economy of the country, their GDP per capita still stands at $6324.

• The economic outlook for 2017 remains cautiously optimistic largely based on the government’s ability to maintain the policy and structural reform agenda as well as successfully implement the sustainable development strategy.
• Assuming economic policy and structural reform implementation, growth is expected to accelerate as confidence returns and investment increases, although some domestic issues and global economic headwinds will remain challenges.
• Overall, Egypt can reverse the major and long-standing trend of low and non-inclusive growth along with weak employment prospects on the basis of the potential of the industrial and entrepreneurial sectors.

Sources :

• http://www.africaneconomicoutlook.org/en/country-notes/egypt

An Eternal Dream? Argentina is the eighth largest country in the world, located in the extreme south of Latin America. Argentina has the highest Human Development Index in South America, its own cultural industry, a highly literate population and an income that exceeds $22,000 per capita. It has some of the richest soil in the world with an ideal geographical variety for a lot of primary, mining and petrochemical sectors. However, one million redundancies in the last year in the private sector, inflation of almost 45% in 2016, 35.9% poverty, and poor economic development with a devaluation of 40% are not in accordance with a country that has such great possibilities.

Political perspective

Argentina’s political situation in the last century was based on constant military outbreaks until 1983, when Raúl Alfonsín was elected. Alfonsín could not finish his term due to the different armed groups opposed to him.

His successor from 1989 was the Peronist Carlos Saul Menen. In this presidency, far from the Peronist doctrine, he aimed to liberate exports and to dismantle the state by generating a hypocritical welfare system in the first years of his term, but then a difficult economic situation deepened amongst corruption scandals.

        In 2001 there was a significant crisis under the motto “Get them out!”, referring to the government, generated by the destruction of national industry and the way in which the focus on social issues had deteriorated.

In 2005, through Néstor Kirchner’s government, a center-left president, this great socio-economic crisis ended. Although during this government the state was committed to the masses and to industrialization through cooperatives and small industries, the progressive model suffered a blow due to a lack of economic depth and great difficulty in stimulating the agricultural sector. This stagnation generated, among other things, a huge state with large cultural and social projects, but the economy was still stagnant, with 25% inflation necessitating measures that would generate more industry and competition.

In 2015 the opposition, Mauricio Macri, a ruler who appeared to be a defender of debate and the free market, won the election. His government, far from improving the disappointing Argentine economy, worsened it with with a rise in taxes (in some cases of 400%), 163 million dollars of debt, and a 34% devaluation of the peso. The dismantling of the state and the deliberate openness to imports is generating a deep economic recession founded on growing unemployment and a fall in consumption. The government intended the latter to be a tool to halt rising inflation, inherited from the Kirchner era, but more than halting inflation, somehow, they halted the economy.

Key Factors of Economic Failure

•        The first factor is historical. In the conquests of the desert in the late 18oos, where a large amount of land was divided, 41 million hectares of Argentina were sold at too low prices to a small group of rich families. This has meant that since then land has been in very few hands, an elite with too much political weight, since the Argentine economy is mainly based on agricultural exports. This elitist reality is still in force in many of the productive areas, and therefore the large agricultural sector is not very competitive.

•       The second factor is that the Argentine economy is based specifically on exporting products with almost no added value and importing products that have added value. A simple example of how bad this is: exporting wool to England, and buying clothing from the same country, which has much more value aggregate than wool.

•       Another point is the demographic. In the last century, many people who left the countryside, and to a lesser extent immigrants, overpopulated big cities (almost all of Buenos Aires) threatening not only social issues but also the economic situation.  Today, as there are many people in Buenos Aires and Cordoba, and almost nobody in Patagonian provinces as La Pampa, there is an economic dominance in the former provinces over the latter, without even taking into account all the disadvantages of an overpopulated city.

•         The fourth very important aspect of commercial failure is the great difficulties that businesses are having in Argentina, mainly because of the tax burden. According to a Word Economic study: ¨Argentina is the country with the highest tax burden in the world with a tax rate of 137.3% ¨. Thus, it is very difficult to undertake and to be able to maintain a butchers for example. This is a large cause of commercial stagnation and a problem for the merchants.

• The last factor is the lack of infrastructure, state transparency and, above all, corruption. These difficulties make their economic policy seem flippant and unreliable.

The future

The future is going to be negative if it is not met with reform, where productivity and international competition will be the main objective, fighting the difficulties already mentioned from a capitalist-protectionist perspective. It is also very important that agricultural production is focussed mainly on the domestic market, and that this will be a vehicle for economic growth. Also there must be an end to inflation which affects the worst-off. For its part, the state itself has to invest in scientific, educational and cultural entities as a tool for social inclusion of the most alienated social sectors. The future will be grim if is not met with a new generation of politicians that will believe in culture, and a new economy that generates work and social welfare. The future is uncertain, but Argentina, as Castelli once said, is an eternal dream.