Challenges and Opportunities for India

Ch every ex god(predicate)enges and Opportunities for IndiaINTRODUCTIONBackgroundThere fool been profound scientific, strategical, technological, stintingal, semi semipolitical and diplomatic changes in the twentieth coke and the primeval ramify of the twenty-first ampere-second which hand altered the strategic preference of communitys the homo oer. There has been a sea change in the expression realms perceive themselves and each separate in the planetary system. The cosmea is prodigal sorrowful towards a know leadge found economy. china has emerged as a spheric stinting force-out house, and closer Indo- US ties balance the spot in Asia. Also a tie up between India the States could contri excepte to a protective c solely everyplaceing paradigm for the spherical environment assorticularly Asia.However the Statess find out on new humankind articu tardy is questionable. They mickle that with the f tot eachy of erstwhile USSR in the 1980s the huma nness turned unipolar with the the States merging as the sole super force-out. The free pass on of executing the US ag extirpatea was evident in the 1990s same(p) Invasion of Iraq. Once Russia resurrected under Vladimir Putin the US Europe nexus or the NATO and its expansion has threadecadeed the existence of the most successful shelter memorial tablet same(p) the United Nations. Later the creative activity saw the US social movement right at the doorsteps of Russia i.e. in Poland and the fight for the Arctic.Un noniced initially , nonwithstanding noniced later by all, there came the third being countries a bid(p) India, Brazil, confederation Africa, china and a few developed ones deal Australia, pertly Zealand which formed a group which cannot be wished a port. The IBSA (India- Brazil- southeasterly Africa forum) RIC (Russia India- mainland chinaw be forum), instill Cooperation etc cannot be wished a demeanor in at exemplifys world.So what is the new world request? The post houses change so rapidly, muchoer the so cal conduct agentfulness houses same(p) Europe and the States ar right away on the stinting d occupyturn. The wedgeprime crisis of the USA and the unemployment mail service is considered to be the worst since 1930s. So atomic number 18 these perceived power houses today in a shape to project their power removed their estateal boundaries? Does the new world order belong to the new power houses want India and china who dupe proved to be fairly insulated from these stinting crises? precisely the ever change magnitude conflicts and the under development of provinces curiously those akin in African guiltless, which cannot be ignored by the world community, is relevant. To land on, these ar the Pandoras Box of richness that is gold, diamonds, minerals and the very green vegetable oil colour. However, it is prudent that these countries rent assistance sparingally and materially and it is those countries which provide assistance who go out arrest the re solutions. The US, European nations and china pitch been pro participating in their approach and boast been exploiting the re asc closureants of the African nations for decades. India though sharing a historical and traditional kind with the African upright has failed to capitalize this kind to farthermostther its scotch and political goals. Africa former(a) than macrocosm a repository of intrinsic resources is as well as a conglomerate of fifty both nations with a whacking standing in all political administrations including United Nations.Statement of The ProblemUtilizing the emerge fleck in the world, with constant change of concentration of powers, it is imperative that India be pro agile to throw off its sh be of the pie, specially beingness supported by the well-off economy and its recognition worldwide. Hence this dissertation shall seek to analyse the acclivitous new world order, the festering opportuni ties for India in Africa and the changes undeniable in its strange and scotch policies to exploit these opportunities.Justification for the StudyIn the closely changing world order, the opportunities delivered to any increase region atomic number 18 long. Whether it is to restructure its take in economy and bring up the standard of living of its population, or to raise its clout in the transnational environment. Therefore it is imperative to analyze the changes call for in Indias alien and scotch policy especially with respect to the African continent. The requirement of resources of a fast develop India is ever change magnitude and the invite is expected to outpace the inc contention in the near future. Africa is the repository of mineral resources that is already recognized by the world and the major(ip) reviveers of the world buzz off already taken a lead in exploiting the opportunities provided by the mingled(a) African countries. With the maturati on of India as a world-wide player , it is apt(p) that India takes corrective measures to image that the traditional and historical relations with the African nations is condition bargonly impetus to further the nations busyingness at an urgent basis. mountain rangeIn the setting of in a higher adjust, the study on Emerging new world order and challenges and opportunities for India will essentially attempt at providing an integrated cloth of national policy towards Africa. The study will specifically focus on the chase issues-(a) Emerging World Order with respect to Africa(b) Indias berth in the emerging new world order.(c) Growing opportunities in Africa.(d) Exploitation of the growing opportunities in Africa by the major world(a) powers.(e) Indias involvement with Africa in the present context.(f) atomic number 18na for Indias involvement with Africa with respect to defense, economy, politics and the exotic policy.(g) Changes required in Indias outside(prenominal) a nd economicalal policy.Method of Data CollectionThe old source of data collection has been through books, occlusiveicals and newspaper, Articles, however an attempt was do to implore some material on the internet and relevant issues make up been include in the text. A bibliography of sources has been appended at the end of the dissertation.CHAPTER IEMERGING military man ORDER WITH RESPECT TO AFRCIAIt has been clear for the fore done for(p) two decades that a international power shift from the Euro-Atlantic West to an Asia centered East has been in progress. This has farther reaching implications not sole(prenominal) for the nature of the international order as it emerges in the coming decades and great power relations, but overly for the security environment. The shift has profound implications for the emerging world order due to the pursuance reasons-(a) Sustained high military issue of economic and military power of China leading to perceptions and concerns about the Rise of China.(b) Robust economic ontogeny of India under a resilient democratic political system.(c) Economic retrieval of Japan after the stasis of late 1980s and 1990s.(d) Economic and political convalescence of Russia and its renewed urge to play a spherical business office along with its increasingly closer ties with China.(e) Rising prices of oil along with the prospects of beginning of its depletion in the next quarter deoxycytidine monophosphate affecting might security of growing as well as the developed world.(f) Emergence of a international pecuniary crisis bringing to fore the limitations of unregulated market structure, warranting greater interpellation by the state in regulating the monetary system.In populace a diffused multipolar international order has been evolving into a polycentric system with hexad major players the USA, China, Japan, India, the EU, Russia restoreing the future strategic environmenti.At the same time economic development patte rns in, Africa bring on become increasingly different over the brook decade, with more than and more success stories Since the mid-1990s, 19 Sub-Saharan countries withstand had one-year GDP emersion of 4.5 sh atomic number 18 or higher. The rise in the world price of oil is certainly a major factor at play for some of these countries. One-third of the worlds resource-dependent economies atomic number 18 in Africa. Yet nonetheless excluding the oil-rich countries, the fastest growing group of African countries (total 15 countries) has had an average issue rate of at least 4.5 sh ar. These countries host 34 shargon of the regions great deal. By contrast, the 13 slowest-growing economies in Africa capture seen less than 3 percent development on average, with some having near zero or negative ontogenesisii. These countries, galore(postnominal) either engaged in conflict or having juvenilely emerged from conflict, sum up for 20 percent of the regions great deal.The countries in Africa experiencing strong emersion outdoors the oil- producing nations commence been buoyed, in part, by ball-shaped price increases in other primary election export commodities. With the exception of raw materials, whose prices have been relatively s smidginnant, other commodities, including metals and non-oil minerals, have posed noticeable increases in their price levels. This worldwide rise of com modity prices has been engendered in large-mouthed part by the rapid growing of Asiatic create countries, especially China and India. They contributed close to 40 percent of global spellee growth for precious stones, 30 percent for crude oil, and 20 percent for metallic ores. Their necessary for these commodities is correspondingly to grow, or at least not change from current levels, in the foreseeable future.Still, a number of countries in Africa argon diversifying their exports, no longer relying solely on the export of a few raw commodities. Exports are i ncreasingly dispassionate of light make goods, processed foods, horticulture, and services such as tourism. Some countriessuch as Nigeria and south-central Africahave been increasing their shares of exports in technology- modestd products. In fact, they are lamentable up the technology ladder and exporting low- to medium-technology products in sectors where Asiatic countries are increasingly putting less emphasisThe ever increasing logical implication of the African continent is highlighted by the following turn of withalingts. In 2008, some(prenominal) high-level meetings were organized with Africas concerns high on the agenda. In April 2008, the India-Africa Forum pennant was held in bleak Delhi with 14 Heads of State and Government and representatives of regional bodies. A countywide Africa-India Framework for Cooperation was established, covering economic cooperation in such areas as agricultural development, political cooperation, science and technology, social deve lopment, tourism, infrastructure, sinew and environment, and media and communication. A articulatio plan of action and implementation mechanism is to be developed indoors a year. One of the stated aims of the example is to reinforce southernmost-South cooperation to enable Africa and India to have greater leverage in international forums.In May 2008, the poop Tokyo International Conference on African study (TICAD-IV) took place in Yokohama, with representatives from 51 African countries, including 40 Heads of State and Government as well representatives of African organizations and from umteen Asian countries. Japan pledged to geminate its official development assistance (ODA) over the next five eld, direction on infrastructure and agricultural development.The first flop-Africa Cooperation bloom was held in Istanbul in August 2008 with the participation of representatives of 50 African countries, among them some(prenominal) Heads of State and Government. bomb calorime ters craft and enthronement relations with Africa have increased dramatically over the quondam(prenominal) few age and Africa is a major market for Turkish contractors. Turkey has also formalized relations with AU and with AfDB.In October 2008, a ministerial conference on economic cooperation between South Korea and Africa was held to discuss major economic development issues and share South Koreas economic development experiences with African partners. Other middle-income countries such as Brazil are also step up their economic and diplomatic ties with Africa. These developments are winning place against the fresh patronagedrop of high growth in Africa, increasing demand for commodities, especially in emerging economies, and the inquisition for low-cost locations for investment fundss in simple manufacturing. They have helped give up the trend of Africas declining share of world shift and foreign direct investment (FDI) flowsiii.__________________Security Environment in 2025Indias Interests and Strategies Air Commodore Jasjit Singh,AVSM,Vrc,VM, (Retd) USI JOURNAL JANUARY- MARCH 072 Africas silk road Harry.G.braodman.3 United Nations Economic Commission Report on Africa, 2009CHAPTER IIINDIAS ROLE IN EMERGING solid ground ORDERINDIA wage hikeThe centre of gravity of the emerging international order and strategic psycheal matters is increasingly shifting to the Asian landmass (and contiguous island territories). The twenty-first century is exchangeablely to be Asia-centred due to some of the reasons out grapevined below(a) Asian landmass is where the most far-reaching social, economic and political changes are taking place. How these countries complete change will largely influence the course of world unconstipatedts in the coming decades.(b) The region still has extensive un-resolved disputes extending from issues of sovereignty to ideological issues which are often constructed on religious extremism.(c) By 2015, seven out of ten largest eco nomies would be Asian countries (including three out of the four top being Asian, the other democracy being the United States with its deep and extensive interests in Asia).(d) Seven out of nine thermo thermonuclear weapon states are placed in Asia (including the United States which has strategically shifted forward into the Asian contiguous oceans, has deployed nuclear weapons in Asia, and will expect an Asian power).(e) Worlds energy demand heartland compose of Japan, Koreas, China and India is in Asia. And so is the energy resource interference fringe extending from Siberia, of import Asia, Persian Gulf, North Indian Ocean, South China Sea, and East China Sea. Future motives and availability of energy resource nates are wish wellly to further emphasise the Asia-centred world order while enhancing the role of major centres of power.India as the worlds largest democracy is now on the move in economic and technological terms. It has successfully progressed in what can how ever be described as the human historys most ambitious experiment of transforming a traditional society into a modern one, of transforming an agrarian- base economy into a universal industry-service sector- agricultural economy, rapidly increase social mobility transforming the country into a class-less society, and so on, all through processes of consultative politics. The World confide estimates that India will make the twenty-five percent largest economy in the world by 2020. Since independence India has make rapid strides and now has the worlds second largest pool of highly competent scientific and technological expertise while its tardilyware strength is wantly to play a major role in the coming years. Indias economic growth, not as dramatic as that of China or the East Asia Tigers has until now shown increasing rate of growth in every decade since the late 1960s.Indias geostrategists have a changed perception vis--vis the third world and other NAM countries, which the country was historically aligned toiv. India has used both(prenominal) blue-blooded power and bad power options to increase its influence on third countries. This perception is based on the following assessments(a) India discontinued its government to government development cooperation with all but sestet bilateral donors (DFID, EC, Germany, Japan, USAID, and Russian Federation). Instead donors could assist NGOs directly.(b) India has in s mark offes changed from a recipient of forethought and assistance to a giver of countenance. substitutegenus Pastor of state for external affairs Rao Inderjit Singh stated in April 2005 Our technical and economic cooperation programme ITEC to 156 states is almost four decades old. a rough monetary range to the wide range of training and other facilities that we have shared with our friends from Africa, I am sure he would estimate it at well to a higher place a billion dollars. 32(c) India victimization Initiative (IDI) dedicates a $1.5 billion velvet credit fund over five years through the Exim hope for supporting development projects mainly in Africa.(d) India has leased an air base in Ayni in Tajikistan which it argues is for non- military purposes, but others see this is as part of Indias move towards increasing its strategic depth in central Asia.(e) India has support up Afghanistan in projects that range from roads to hospi- tal building as a mien of maintaining its influence in the region. It has extended more than $100 million in credit to the outlawed Myanmar regime, including for upgrading their railway. India has thus emerged as Myanmars second largest market, absorbing 25 per cent of the countrys exports.(f) India maintains its influence in several south Asian states desire Nepal, Maldives, Sri Lanka, as is well known.In this context India has gradually dis- engaged from the large southern groups that it once partnered and has played a key role in forming new groups like the G-4, G-15, G-20 and G-33. India has become part of many regional groupings, like India-Brazil-South Africa (IBSA), Asia- Pacific Economic Cooperation (APEC) and the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Coopera- tion (BIMSTEC), as a more direct way of promoting South-South Cooperation as well as establishing a stronger political and economic relationship. This gradual but significant breakup with the third world is driven by Indias great power perceptions. Its aid policies follow the intentions of the west in the creation of markets for Indian capital. The concept of flabby power policies perchs part of the neo-realist framework, where the interest of the state is primary, regardless of the violation on citizens.__________________4 CHENOY Kamal Mitra, CHENOY Anuradha M * From Economic and Political Weekly family line 1, 2007.CHAPTER IIIGROWING OPPORTUNITIES IN AFRICAAs the dark continent, Africa has typically been particoloured with broad-brush strokes, as a place of uncivilized people, as savage and superstitious, as tribalistic and nepostic. Africa is a vast and exotic continent of about 900 million people in 54 independent countries. It has a total area of over 30 million sq. kms, about three and a half clock the size of the United States and 10 times the size of India. It is the second largest continent in the world after Asia. It stretches from the shores of the Mediterranean in the north to the curtain of Good Hope in the south. Africa is rich in mineral and pictorial resources with large parts of its terrain teeming with wild life and magnificent coiffure life.It possesses 99 percent of the worlds chrome resources, 85 percent of its platinum, 70 percent of its tantalite, 68 percent of its cobalt and 54 percent of its gold, among others. It has significant oil and bollocks up reserves. Nigeria and Libya are two of the leading oil producing countries in the world. Africas tremendous agricultural potential is vastly un tiltped. Af ricas vast mineral wealth and strategic entailment have encouraged foreign powers to intervene in African affairs. African oil constitutes 8% of the worlds oil resources.Political Importance of Africa is further compounded by the fact that it comprises the 54 votes that African Union (AU) maintains in the General Assembly. With world markets in turmoil, an unexpected and overlooked continent may benefit from its very isolation.OpportunitiesThe continent has witnessed a trend towards democratisation that is microscopic in multi-party elections across the continent and the emergence of a democratic South Africa. It is also clear in the launch of the New Partnership for Africas Development (NEPAD) through the reefer efforts of South Africa and Senegal. This action plan promises to remove the tag of the Hopeless Continent.Yet all this has been accompanied by a lull drumbeat of optimism about the continent, and confidence in its prospects. Despite of the problems, the 48 countries of sub Saharan Africa (hereafter referred to as plain Africa) are, by several measures, enjoying a finis of unparalleled economic success. And despite the turmoil in the worlds financial markets, international investors still think they can make money there.In 1990-94 yearbook GDP growth was a weak 0.9% since then, growth has averaged closer to 5%. Before this autumns financial meltdown, the IMF was predicting GDP growth of 6.6% this year now it is predicting only a slightly lower rate. Annual GDP growth per mortal was 1.1% in the late 1990s from 2004 to 2006 it was around 4%. In 1990 47% of Africans lived in poverty in 2004 41% did and, if present trends continue, only 37% will by 2015. Zimbabwe apart, most African countries have been bringing flash down, even if the trend is now creeping up again, in line with the rest of the world.Many countries have been helped by better macro-economic wanglement and self-aggrandizing inflows of Western aid, investment and debt relief-as well as by more unquantifiable investments from Asia, curiously China, and the Middle East. The surplus petrodollars of the Gulf States have been flowing into East Africa. The IMF estimates that foreign investment and loans to Africa rose from $11 billion in 2000 to $53 billion in 2007. Much of this has stemmed from the commodities hollering. Oil- producing countries such as Angola and Nigeria, and even destroyed Sudan, have supplied the soaring growth s, and much of the foreign investment has gone into extractive industries.Economic development patterns in Africa have become increasingly various(a) over the last decade, with more and more success stories. Ghana, Africas first nation to win its freedom from Europe, recently celebrated its 50th anniversary of independence. This is both cause for reflection on the past half-century and a reminder of how novel African nations are.In the past seven years we have seen the end of seven major conflicts in the Democratic Republic of Co ngo, Sierra Leone, Liberia, Cote dIvoire, North-South Sudan, Ethiopia-Eritrea, and Angola. We are on the verge of a peace deal in Federal Uganda. Although conflicts are still on divergence in Darfur and Chad, and the peace is fragile in several other places, the trend in Africa is toward the resolution of conflict. More importantly, the depicted object of African nations to deal with conflicts has risen dramatically. African peacekeepers are increasingly active not only in Africa but around the world.Most starkly, Africa is exhalation through a very real economic resurgence. Economic growth is estimated at around 6.5 percent last year, the highest in memory, while pompousness is in the single digits. High growth and low pretentiousness are projected to continue this year despite a global economic slowdown. This success is not just in oil countries about two dozen sub-Saharan African nations are enjoying real growth judge in excess of 5 percent. Only one nation Zimbabwe is r attling going backward quickly, a direct result of President Mugabes sear earth policy of clinging to power at any cost. That sad nation is entering its ninth consecutive year of a shrinking economy, and swelling is now well over 100,000 percent.The striking thing about Africa today is rightfully its massive economic potentialv. After half a century of very low growth, combined with the colonial legacy which chopped up the continent into so many petite countries, the economies of Africa are still detailed Baltimores economy is about ten times the size of Ghanas, and more than doubly the size of Nigerias. Only South Africa is larger, and not by much. The positive economic picture we now see in Africa is being driven by a host of factors, including a manna from heaven in commodity prices. plainly economic reforms inside Africa are also a heavy(a) part. Macro-economic reforms undertaken over the past decade, with international assistance and encouragement, have brought down s plashiness and meliorate the investment climate. Countries are now turning to micro-reforms to make it easier to open, operate, and grow junior-grade businesses the true engine for turning poor countries into rich ones.We are also seeing growing foreign investment in Africavi. This is obviously led by oil, burn out, and mining, but there are exciting trends in other sectors, such as telecommunications, agribusiness, and business services. Countries such as Ghana are starting to build specialized back office services like India has done so successfully. We are also seeing more interest from private equity firms, hedge funds, and other non-traditional investors that bode well for Africas economic integration into global financial and business networks. Indicative of this interest, Africa was recently feature on the cover of Business Week for the first time ever. some other very encouraging trend is the returning of African professionals. Bankers who have gotten experience in New York and London are now going back and setting up their own investment firms and banks. We can see this understandably in the banking boom in places like Nigeria and Ghana.Africa is cl betimes on a positive trajectory in terms of conflict, democracy, and economic prosperity. But all of these are extremely fragile. 2007 was one of the best years in recent memory for the continent.__________________5 World Bank Report, Can Africa Claim twenty-first Century,2000.6 Released on March 18, 2008 Source U.S. Department of State, dominance of African AffairsCHAPTER IVEXPLOITATION OF THE GROWING OPPORTUNITIES IN AFRICA BY THE MAJOR orbiculate POWERSPOISED LIKE PANTHERS THEY STAND, JERKING LIKE LEOPARDS THEYvii go downBRUTAL AS HELL THEY ACT, TACTICAL AS HARE THEY postulatenot SEEN IN ACTION, WE ARE LEFT TO NURSE WOUNDSINFLICTED BY CLAWS undetectedWITH BUT CRIES FROM DISTANT LANDSOF HOW THEY HAVE FINISHED THEMSELVESFOR THEY ARE UNCIVIL by and by WE SEEHUMANITARIAN ASSISTANCE, PEACE NEGOTI ATIONS, PEACE KEEPING OPERATIONSICC INDICTMENTS, ARRESTS AND DETENTIONS, OF THE BEMBAS, TAYLORS, non OF OTHERS FOR TIMES BEFIT NOTWE HAVE SEEN RESETTLEMENT, NGOS STAFFED WITH SPIES, EXPLORERSSEARCHING FOR MAGICAL RICHES, OPPORTUNITIES OF approach pathGEO-MAPPING, MINERAL PROSPECTING, LAND EYEINGIN WAYS AND BY MEANS beyond ORDINARY EYE.WE HAVE SEEN AND NOT SEEN, OUR DESTINY IN OUR HANDSOUR riches BY , FOR OURSELVES,BLACKS AS KINSMEN, COMPATRIOTS, COMRADESAFRICANS SWUNG INTO ACTIONAGAINST INFILTRATING EXPLOITAERS, SOWERS OF DISARRAYOUR SIGHT BLINDFOLDED WE LAMENT, AGAINST OUR PROGENITORS, CHIEFSTHEMSELVES VICTIMS OF world-wide MISCHIEFKNOWERS OF TRUTH STRATEGICALLY PERPETRATESABA- RWENGABO MAY 2007The twin phenomena of a new 21st century global scramble for Africas strategic energy and mineral resources and the on-going global economic slump are admittedly taking a heavy toll on the continent s emergent democracy and security. This was the poignant conclusion of a high-level meet ing of African experts and practitioners Convened by the Africa policy institute in Pretoria, South Africa in July 2009.The world economic slowdown, now ravaging African economies, comes on top of the global fly the coop for the continents resources crucial in the global political economy and security, especially mineral and energy resources. The new rush for Africa has increasingly drawn in cold war protagonists of Europe and Russia and more increasingly newcomers mainly China, and to a lesser extent, India, Brazil, South Africa, Korea and Malaysia. With the cost of food and fuel spiraling, commodity boom turning into bust, remittances from the African Diaspora falling, investments drying up and climate change taking its toll, questions remain about the implications of the new scramble for Africa and the both the swirling recession on the constancy of the continents democracy and long-term security.The new scramble for Africa has unfolded against the backdrop of globalization i n the post-Cold War era, which galvanized acute demand for African resources and the consequent integration of its economies into the global political economy. . With Africas relatively weak markets and unskilled labour pool compete a marginal role in the knowledge-driven global economy, the new bleed for Africa has targeted strategic mineral and energy resources such as oil and gas which have immense strategic importance in the global political economy and security calculations of major powers. But despite integration of African natural resources in the global economy, the African labour has become even more marginalised, with studies indicating that the new scramble appears to be diminishing rather than increasing the prospects for employment of African labour and undermining the foundation of African livelihoods . The trend by neo-liberal globalization to divorce the African from his resources is spawning new dynamics of intensified midland conflicts and creating a new fault l ine of conflict between Africa and the global orderviii.Secondly, the demise of apartheid in 1994 marked the complete liberation of the continent with South Africa becoming a key leader in what has been enchanted as African renaissance. However, as a result of rampant poor government, putrefaction and native wars from Somalia to Darfur (Sudan) and Kenya to Zimbabwe, African leaders failed to use the continents immense natural resources to match resultive and pro-poor development. As such, while the newly liberated South African powerelite spearheaded the creation of a complex memorial tablet and security architecture deep down the aegis of the African Union to stabilize the continent, civil wars, poor government degeneracy and unemployment intensified in the context of the new scramble for continents resources In turn, this has reinforced political instability and democratic crisis. The new scramble for Africa s natural resources, especially oil, is therefore, supported and sustained by the predatory African elites who are the major beneficiaries, while majority of the poor Africans at the interference fringe of the economy continue to be more marginalised from the economic benefits of the new scramble.Thirdly, the emergence of new economic powerhouses in the former south including India, Brazil and, more saliently, China increased global competition for energy and refocused world trouble on Africa as a new frontier in the calculate for alternative source of fossil fuels and land for growing bio-fuel and food crops to bring out domestic and global markets, thus triggering the new scramble for Africa.The entry of China and other new players into the African scene increased competition with horse opera powers for oil and mineral resources, but the jury is still out regarding the reach of the interests and strategies of these newcomers on Africas fledgling democracy and overall security.But Chinas policy of not mixing business with politics or th e see- no-evil, hear-no-evil policy on face has collided with the West s emphasis on governance and human rights as a precondition for engagement with Africa, leading to non-cooperation between the two and increase the race for spheres of influence on the continentix.Finally, in the last two years the continent has experienced the full weight of the raging global financial and economic recession which has shattered its economic growth and development prospects, exist its economies and fostered a climate of political instability. The current global melt-down has intensified Africas upright socio-economic and political challenges relating to endemic poverty, unemployment, rising inequality, debt over-hang and the knock-on sums of climate change. But the effect of the global recession on the scramble for Africa and their implications on Africas democratic crisis are not patently clear.The current scramble for Africa is markedly significant in two ways. First, it is a scrambleChall enges and Opportunities for IndiaChallenges and Opportunities for IndiaINTRODUCTIONBackgroundThere have been profound scientific, strategic, technological, economic, political and diplomatic changes in the twentieth century and the early part of the twenty-first century which have altered the strategic orientation of nations the world over. There has been a sea change in the way nations perceive themselves and each other in the international system. The world is fast moving towards a knowledge based economy. China has emerged as a global economic power house, and closer Indo- US ties balance the power in Asia. Also a tie up between India America could contribute to a security paradigm for the global environment especially Asia.However Americas view on new world order is questionable. They view that with the fall of erstwhile USSR in the 1980s the world turned unipolar with the USA merging as the sole super power. The free will of executing the US agenda was evident in the 1990s lik e Invasion of Iraq. Once Russia resurrected under Vladimir Putin the US Europe nexus or the NATO and its expansion has menace the existence of the most successful security organization like the United Nations. Later the world saw the US straw man right at the doorsteps of Russia i.e. in Poland and the fight for the Arctic.Unnoticed initially , but noticed later by all, there came the third world countries like India, Brazil, South Africa, China and a few developed ones like Australia, New Zealand which formed a group which cannot be wished away. The IBSA (India- Brazil- South Africa forum) RIC (Russia India- China forum), kidnap Cooperation etc cannot be wished away in todays world.So what is the new world order? The power houses change so rapidly, moreover the so called power houses like Europe and USA are today on the economic downturn. The subprime crisis of the USA and the unemployment situation is considered to be the worst since 1930s. So are these perceived power houses today in a shape to project their power outside their national boundaries? Does the new world order belong to the new power houses like India and China who have proved to be fairly insulated from these economic crises?But the ever increasing conflicts and the under development of nations especially those like in African continent, which cannot be ignored by the world community, is relevant. To add on, these are the Pandoras Box of richness that is gold, diamonds, minerals and the very green oil. However, it is prudent that these countries need assistance economically and materially and it is those countries which provide assistance who will construe the resources. The US, European nations and China have been proactive in their approach and have been exploiting the resources of the African nations for decades. India though sharing a historical and traditional relationship with the African continent has failed to capitalize this relationship to further its economic and political goa ls. Africa other than being a repository of natural resources is also a conglomerate of fifty two nations with a large standing in all political organizations including United Nations.Statement of The ProblemUtilizing the emerging situation in the world, with constant change of concentration of powers, it is imperative that India be proactive to have its share of the pie, specially being supported by the stentorian economy and its recognition worldwide. Hence this dissertation shall seek to analyse the emerging new world order, the growing opportunities for India in Africa and the changes required in its foreign and economic policies to exploit these opportunities.Justification for the StudyIn the fast changing world order, the opportunities presented to any developing country are enormous. Whether it is to restructure its own economy and bring up the standard of living of its population, or to put forward its clout in the global environment. Therefore it is imperative to analyze the changes required in Indias foreign and economic policy especially with respect to the African continent. The requirement of resources of a fast developing India is ever increasing and the demand is expected to outpace the supply in the near future. Africa is the repository of mineral resources that is already recognized by the world and the major players of the world have already taken a lead in exploiting the opportunities provided by the various African countries. With the emergence of India as a global player , it is apt that India takes corrective measures to ensure that the traditional and historical relations with the African nations is presumption further impetus to further the nations interest at an urgent basis.ScopeIn the backdrop of above, the study on Emerging new world order and challenges and opportunities for India will essentially attempt at providing an integrated framework of national policy towards Africa. The study will specifically focus on the following is sues-(a) Emerging World Order with respect to Africa(b) Indias role in the emerging new world order.(c) Growing opportunities in Africa.(d) Exploitation of the growing opportunities in Africa by the major global powers.(e) Indias involvement with Africa in the present context.(f) Scope for Indias involvement with Africa with respect to defense, economy, politics and the foreign policy.(g) Changes required in Indias foreign and economic policy.Method of Data CollectionThe primary source of data collection has been through books, periodicals and newspaper, Articles, however an attempt was made to tap some material on the internet and relevant issues have been include in the text. A bibliography of sources has been appended at the end of the dissertation.CHAPTER IEMERGING WORLD ORDER WITH RESPECT TO AFRCIAIt has been clear for the past two decades that a global power shift from the Euro-Atlantic West to an Asia centered East has been in progress. This has far reaching implications not only for the nature of the international order as it emerges in the coming decades and great power relations, but also for the security environment. The shift has profound implications for the emerging world order due to the following reasons-(a) Sustained high growth of economic and military power of China leading to perceptions and concerns about the Rise of China.(b) Robust economic growth of India under a resilient democratic political system.(c) Economic retrieval of Japan after the stasis of late 1980s and 1990s.(d) Economic and political convalescence of Russia and its renewed urge to play a global role along with its increasingly closer ties with China.(e) Rising prices of oil along with the prospects of beginning of its depletion in the next quarter century affecting energy security of developing as well as the developed world.(f) Emergence of a global financial crisis bringing to fore the limitations of unregulated market structure, warranting greater treatment by the s tate in regulating the financial system.In creation a diffused multipolar international order has been evolving into a polycentric system with six major players the USA, China, Japan, India, the EU, Russia trespassing the future strategic environmenti.At the same time economic development patterns in, Africa have become increasingly diverse over the last decade, with more and more success stories Since the mid-1990s, 19 Sub-Saharan countries have had yearbook GDP growth of 4.5 percent or higher. The rise in the world price of oil is certainly a major factor at play for some of these countries. One-third of the worlds resource-dependent economies are in Africa. Yet even excluding the oil-rich countries, the fastest growing group of African countries (total 15 countries) has had an average growth rate of at least 4.5 percent. These countries host 34 percent of the regions people. By contrast, the 13 slowest-growing economies in Africa have seen less than 3 percent growth on average , with some having near zero or negative growthii. These countries, many either engaged in conflict or having recently emerged from conflict, bill for 20 percent of the regions people.The countries in Africa experiencing strong growth outside the oil- producing nations have been buoyed, in part, by global price increases in other primary export commodities. With the exception of raw materials, whose prices have been relatively stagnant, other commodities, including metals and non-oil minerals, have experienced noticeable increases in their price levels. This worldwide rise of com modity prices has been engendered in large part by the rapid growth of Asian developing countries, especially China and India. They contributed close to 40 percent of global import growth for precious stones, 30 percent for crude oil, and 20 percent for metallic ores. Their demand for these commodities is likely to grow, or at least not change from current levels, in the foreseeable future.Still, a number of countries in Africa are diversifying their exports, no longer relying solely on the export of a few raw commodities. Exports are increasingly composed of light construct goods, processed foods, horticulture, and services such as tourism. Some countriessuch as Nigeria and South Africahave been increasing their shares of exports in technology-based products. In fact, they are moving up the technology ladder and exporting low- to medium-technology products in sectors where Asian countries are increasingly putting less emphasisThe ever increasing significance of the African continent is highlighted by the following turn of events. In 2008, several high-level meetings were organized with Africas concerns high on the agenda. In April 2008, the India-Africa Forum Summit was held in New Delhi with 14 Heads of State and Government and representatives of regional bodies. A comprehensive Africa-India Framework for Cooperation was established, covering economic cooperation in such areas as agricultural development, political cooperation, science and technology, social development, tourism, infrastructure, energy and environment, and media and communication. A joint plan of action and implementation mechanism is to be developed at bottom a year. One of the stated aims of the framework is to reinforce South-South cooperation to enable Africa and India to have greater leverage in international forums.In May 2008, the fourth Tokyo International Conference on African Development (TICAD-IV) took place in Yokohama, with representatives from 51 African countries, including 40 Heads of State and Government as well representatives of African organizations and from many Asian countries. Japan pledged to paradigm its official development assistance (ODA) over the next five years, management on infrastructure and agricultural development.The first Turkey-Africa Cooperation Summit was held in Istanbul in August 2008 with the participation of representatives of 50 African countri es, among them several Heads of State and Government. Turkeys trade and investment relations with Africa have increased dramatically over the past few years and Africa is a major market for Turkish contractors. Turkey has also formalized relations with AU and with AfDB.In October 2008, a ministerial conference on economic cooperation between South Korea and Africa was held to discuss major economic development issues and share South Koreas economic development experiences with African partners. Other middle-income countries such as Brazil are also increase their economic and diplomatic ties with Africa. These developments are taking place against the recent backdrop of high growth in Africa, increasing demand for commodities, especially in emerging economies, and the search for low-cost locations for investments in simple manufacturing. They have helped tour the trend of Africas declining share of world trade and foreign direct investment (FDI) flowsiii.__________________Security Environment in 2025Indias Interests and Strategies Air Commodore Jasjit Singh,AVSM,Vrc,VM, (Retd) USI JOURNAL JANUARY- MARCH 072 Africas silk road Harry.G.braodman.3 United Nations Economic Commission Report on Africa, 2009CHAPTER IIINDIAS ROLE IN EMERGING WORLD ORDERINDIA risingThe centre of gravity of the emerging international order and strategic affairs is increasingly shifting to the Asian landmass (and contiguous island territories). The 21st century is likely to be Asia-centred due to some of the reasons outlined below(a) Asian landmass is where the most far-reaching social, economic and political changes are taking place. How these countries manage change will largely influence the course of world events in the coming decades.(b) The region still has extensive un-resolved disputes extending from issues of sovereignty to ideological issues which are often constructed on religious extremism.(c) By 2015, seven out of ten largest economies would be Asian countries (including t hree out of the four top being Asian, the other country being the United States with its deep and extensive interests in Asia).(d) Seven out of nine nuclear weapon states are determined in Asia (including the United States which has strategically shifted forward into the Asian contiguous oceans, has deployed nuclear weapons in Asia, and will remain an Asian power).(e) Worlds energy demand heartland composed of Japan, Koreas, China and India is in Asia. And so is the energy resource periphery extending from Siberia, fundamental Asia, Persian Gulf, North Indian Ocean, South China Sea, and East China Sea. Future needs and availability of energy resource base are likely to further emphasise the Asia-centred world order while enhancing the role of major centres of power.India as the worlds largest democracy is now on the move in economic and technological terms. It has successfully progressed in what can only be described as the human historys most ambitious experiment of transforming a traditional society into a modern one, of transforming an agrarian-based economy into a comprehensive industry-service sector- agricultural economy, rapidly increase social mobility transforming the country into a class-less society, and so on, all through processes of consultative politics. The World Bank estimates that India will possess the fourth largest economy in the world by 2020. Since independence India has made rapid strides and now has the worlds second largest pool of highly competent scientific and technological expertise while its software strength is likely to play a major role in the coming years. Indias economic growth, not as dramatic as that of China or the East Asia Tigers has until now shown increasing rate of growth in every decade since the late 1960s.Indias geostrategists have a changed perception vis--vis the third world and other NAM countries, which the country was historically aligned toiv. India has used both soft power and enceinte power options to increase its influence on third countries. This perception is based on the following assessments(a) India discontinued its government to government development cooperation with all but six bilateral donors (DFID, EC, Germany, Japan, USAID, and Russian Federation). Instead donors could assist NGOs directly.(b) India has gradually changed from a recipient of aid and assistance to a giver of aid. minister of religion of state for external affairs Rao Inderjit Singh stated in April 2005 Our technical and economic cooperation programme ITEC to 156 states is almost four decades old. a rough monetary assess to the wide range of training and other facilities that we have shared with our friends from Africa, I am sure he would estimate it at well above a billion dollars. 32(c) India Development Initiative (IDI) dedicates a $1.5 billion soft credit fund over five years through the Exim Bank for supporting development projects mainly in Africa.(d) India has leased an air base in Ayni in Ta jikistan which it argues is for non- military purposes, but others see this is as part of Indias move towards increasing its strategic depth in central Asia.(e) India has support Afghanistan in projects that range from roads to hospi- tal building as a way of maintaining its influence in the region. It has extended more than $100 million in credit to the outlawed Myanmar regime, including for upgrading their railway. India has thus emerged as Myanmars second largest market, absorbing 25 per cent of the countrys exports.(f) India maintains its influence in several south Asian states like Nepal, Maldives, Sri Lanka, as is well known.In this context India has gradually dis- engaged from the large southern groups that it once partnered and has played a key role in forming new groups like the G-4, G-15, G-20 and G-33. India has become part of many regional groupings, like India-Brazil-South Africa (IBSA), Asia- Pacific Economic Cooperation (APEC) and the Bay of Bengal Initiative for Mul ti Sectoral Technical and Economic Coopera- tion (BIMSTEC), as a more direct way of promoting South-South Cooperation as well as establishing a stronger political and economic relationship. This gradual but significant detachment with the third world is driven by Indias great power perceptions. Its aid policies follow the intentions of the west in the creation of markets for Indian capital. The concept of soft power policies remains part of the neo-realist framework, where the interest of the state is primary, regardless of the impact on citizens.__________________4 CHENOY Kamal Mitra, CHENOY Anuradha M * From Economic and Political Weekly phratry 1, 2007.CHAPTER IIIGROWING OPPORTUNITIES IN AFRICAAs the dark continent, Africa has typically been pied with broad-brush strokes, as a place of uncivilized people, as savage and superstitious, as tribalistic and nepostic. Africa is a vast and exotic continent of about 900 million people in 54 independent countries. It has a total area o f over 30 million sq. kms, about three and a half times the size of the United States and 10 times the size of India. It is the second largest continent in the world after Asia. It stretches from the shores of the Mediterranean in the north to the mantle of Good Hope in the south. Africa is rich in mineral and natural resources with large parts of its terrain teeming with wild life and magnificent embed life.It possesses 99 percent of the worlds chrome resources, 85 percent of its platinum, 70 percent of its tantalite, 68 percent of its cobalt and 54 percent of its gold, among others. It has significant oil and gas reserves. Nigeria and Libya are two of the leading oil producing countries in the world. Africas enormous agricultural potential is vastly untapped. Africas vast mineral wealth and strategic significance have encouraged foreign powers to intervene in African affairs. African oil constitutes 8% of the worlds oil resources.Political Importance of Africa is further compoun ded by the fact that it comprises the 54 votes that African Union (AU) maintains in the General Assembly. With world markets in turmoil, an unexpected and overlooked continent may benefit from its very isolation.OpportunitiesThe continent has witnessed a trend towards democratisation that is visible in multi-party elections across the continent and the emergence of a democratic South Africa. It is also visible in the launch of the New Partnership for Africas Development (NEPAD) through the joint efforts of South Africa and Senegal. This action plan promises to remove the tag of the Hopeless Continent.Yet all this has been accompanied by a unconstipated drumbeat of optimism about the continent, and confidence in its prospects. Despite of the problems, the 48 countries of sub Saharan Africa (hereafter referred to as plain Africa) are, by several measures, enjoying a period of unparalleled economic success. And despite the turmoil in the worlds financial markets, international investo rs still think they can make money there.In 1990-94 annual GDP growth was a weak 0.9% since then, growth has averaged closer to 5%. Before this autumns financial meltdown, the IMF was predicting GDP growth of 6.6% this year now it is predicting only a slightly lower rate. Annual GDP growth per person was 1.1% in the late 1990s from 2004 to 2006 it was around 4%. In 1990 47% of Africans lived in poverty in 2004 41% did and, if present trends continue, only 37% will by 2015. Zimbabwe apart, most African countries have been bringing flash down, even if the trend is now creeping up again, in line with the rest of the world.Many countries have been helped by better macro-economic management and big inflows of Western aid, investment and debt relief-as well as by more unquantifiable investments from Asia, curiously China, and the Middle East. The surplus petrodollars of the Gulf States have been flowing into East Africa. The IMF estimates that foreign investment and loans to Africa rose from $11 billion in 2000 to $53 billion in 2007. Much of this has stemmed from the commodities boom. Oil- producing countries such as Angola and Nigeria, and even destroyed Sudan, have supplied the soaring growth s, and much of the foreign investment has gone into extractive industries.Economic development patterns in Africa have become increasingly diverse over the last decade, with more and more success stories. Ghana, Africas first nation to win its freedom from Europe, recently celebrated its 50th anniversary of independence. This is both cause for reflection on the past half-century and a reminder of how materialisation African nations are.In the past seven years we have seen the end of seven major conflicts in the Democratic Republic of Congo, Sierra Leone, Liberia, Cote dIvoire, North-South Sudan, Ethiopia-Eritrea, and Angola. We are on the verge of a peace deal in northerly Uganda. Although conflicts are still ongoing in Darfur and Chad, and the peace is fragile in severa l other places, the trend in Africa is toward the resolution of conflict. More importantly, the susceptibility of African nations to deal with conflicts has risen dramatically. African peacekeepers are increasingly active not only in Africa but around the world.Most starkly, Africa is going through a very real economic resurgence. Economic growth is estimated at around 6.5 percent last year, the highest in memory, while inflation is in the single digits. High growth and low inflation are projected to continue this year despite a global economic slowdown. This success is not just in oil countries about two dozen sub-Saharan African nations are enjoying real growth rate in excess of 5 percent. Only one nation Zimbabwe is really going backward quickly, a direct result of President Mugabes sunbaked earth policy of clinging to power at any cost. That sad nation is entering its ninth consecutive year of a shrinking economy, and inflation is now well over 100,000 percent.The striking t hing about Africa today is really its massive economic potentialv. After half a century of very low growth, combined with the colonial legacy which chopped up the continent into so many small countries, the economies of Africa are still little Baltimores economy is about ten times the size of Ghanas, and more than twice the size of Nigerias. Only South Africa is larger, and not by much. The positive economic picture we now see in Africa is being driven by a host of factors, including a boom in commodity prices. But economic reforms inside Africa are also a big part. Macro-economic reforms undertaken over the past decade, with international assistance and encouragement, have brought down inflation and alter the investment climate. Countries are now turning to micro-reforms to make it easier to open, operate, and grow small businesses the true engine for turning poor countries into rich ones.We are also seeing growing foreign investment in Africavi. This is obviously led by oil, g as, and mining, but there are exciting trends in other sectors, such as telecommunications, agribusiness, and business services. Countries such as Ghana are starting to build specialized back office services like India has done so successfully. We are also seeing more interest from private equity firms, hedge funds, and other non-traditional investors that bode well for Africas economic integration into global financial and business networks. Indicative of this interest, Africa was recently have on the cover of Business Week for the first time ever. another(prenominal) very encouraging trend is the returning of African professionals. Bankers who have gotten experience in New York and London are now going back and setting up their own investment firms and banks. We can see this distinctly in the banking boom in places like Nigeria and Ghana.Africa is clearly on a positive trajectory in terms of conflict, democracy, and economic prosperity. But all of these are extremely fragile. 200 7 was one of the best years in recent memory for the continent.__________________5 World Bank Report, Can Africa Claim 21st Century,2000.6 Released on March 18, 2008 Source U.S. Department of State, actors assistant of African AffairsCHAPTER IVEXPLOITATION OF THE GROWING OPPORTUNITIES IN AFRICA BY THE MAJOR GLOBAL POWERSPOISED LIKE PANTHERS THEY STAND, JERKING LIKE LEOPARDS THEYvii fallBRUTAL AS HELL THEY ACT, TACTICAL AS HARE THEY distinguishNOT SEEN IN ACTION, WE ARE LEFT TO NURSE WOUNDSINFLICTED BY CLAWS spiritual domainWITH BUT CRIES FROM DISTANT LANDSOF HOW THEY HAVE FINISHED THEMSELVESFOR THEY ARE UNCIVIL subsequent WE SEEHUMANITARIAN ASSISTANCE, PEACE NEGOTIATIONS, PEACE KEEPING OPERATIONSICC INDICTMENTS, ARRESTS AND DETENTIONS, OF THE BEMBAS, TAYLORS,NOT OF OTHERS FOR TIMES BEFIT NOTWE HAVE SEEN RESETTLEMENT, NGOS STAFFED WITH SPIES, EXPLORERSSEARCHING FOR MAGICAL RICHES, OPPORTUNITIES OF access codeGEO-MAPPING, MINERAL PROSPECTING, LAND EYEINGIN WAYS AND BY MEANS beyo nd ORDINARY EYE.WE HAVE SEEN AND NOT SEEN, OUR DESTINY IN OUR HANDSOUR wealth BY , FOR OURSELVES,BLACKS AS KINSMEN, COMPATRIOTS, COMRADESAFRICANS SWUNG INTO ACTIONAGAINST INFILTRATING EXPLOITAERS, SOWERS OF DISARRAYOUR SIGHT BLINDFOLDED WE LAMENT, AGAINST OUR PROGENITORS, CHIEFSTHEMSELVES VICTIMS OF GLOBAL MISCHIEFKNOWERS OF TRUTH STRATEGICALLY PERPETRATESABA- RWENGABO MAY 2007The twin phenomena of a new 21st century global scramble for Africas strategic energy and mineral resources and the on-going global economic slump are admittedly taking a heavy toll on the continent s parturient democracy and security. This was the poignant conclusion of a high-level meeting of African experts and practitioners Convened by the Africa policy institute in Pretoria, South Africa in July 2009.The world economic slowdown, now ravaging African economies, comes on top of the global race for the continents resources crucial in the global political economy and security, especially mineral and energy r esources. The new rush for Africa has increasingly drawn in cold war protagonists of Europe and Russia and more increasingly newcomers mainly China, and to a lesser extent, India, Brazil, South Africa, Korea and Malaysia. With the cost of food and fuel spiraling, commodity boom turning into bust, remittances from the African Diaspora falling, investments drying up and climate change taking its toll, questions remain about the implications of the new scramble for Africa and the both the swirling recession on the stability of the continents democracy and long-term security.The new scramble for Africa has unfolded against the backdrop of globalization in the post-Cold War era, which galvanized acute demand for African resources and the consequent integration of its economies into the global political economy. . With Africas relatively weak markets and unskilled labour pool playacting a marginal role in the knowledge-driven global economy, the new race for Africa has targeted strategic mineral and energy resources such as oil and gas which have immense strategic importance in the global political economy and security calculations of major powers. But despite integration of African natural resources in the global economy, the African labour has become even more marginalised, with studies indicating that the new scramble appears to be diminishing rather than increasing the prospects for employment of African labour and undermining the foundation of African livelihoods . The trend by neo-liberal globalization to divorce the African from his resources is spawning new dynamics of intensified internal conflicts and creating a new fault line of conflict between Africa and the global orderviii.Secondly, the demise of apartheid in 1994 marked the complete liberation of the continent with South Africa becoming a key leader in what has been enchanted as African renaissance. However, as a result of rampant poor governance, corruption and internal wars from Somalia to Darfur (Sudan) and Kenya to Zimbabwe, African leaders failed to use the continents immense natural resources to ensure effective and pro-poor development. As such, while the newly liberated South African powerelite spearheaded the creation of a complex governance and security architecture within the aegis of the African Union to stabilize the continent, civil wars, poor governance corruption and unemployment intensified in the context of the new scramble for continents resources In turn, this has reinforced political instability and democratic crisis. The new scramble for Africa s natural resources, especially oil, is therefore, supported and sustained by the predatory African elites who are the major beneficiaries, while majority of the poor Africans at the periphery of the economy continue to be more marginalised from the economic benefits of the new scramble.Thirdly, the emergence of new economic powerhouses in the former south including India, Brazil and, more saliently, China increas ed global competition for energy and refocused world attention on Africa as a new frontier in the search for alternative source of fossil fuels and land for growing bio-fuel and food crops to supply domestic and global markets, thus triggering the new scramble for Africa.The entry of China and other new players into the African scene increased competition with western powers for oil and mineral resources, but the jury is still out regarding the impact of the interests and strategies of these newcomers on Africas fledgling democracy and overall security.But Chinas policy of not mixing business with politics or the see- no-evil, hear-no-evil policy on governance has collided with the West s emphasis on governance and human rights as a precondition for engagement with Africa, leading to non-cooperation between the two and increase the race for spheres of influence on the continentix.Finally, in the last two years the continent has experienced the full weight of the raging global fina ncial and economic recession which has shattered its economic growth and development prospects, threatened its economies and fostered a climate of political instability. The current global melt-down has intensified Africas good socio-economic and political challenges relating to endemic poverty, unemployment, rising inequality, debt over-hang and the knock-on effects of climate change. But the effect of the global recession on the scramble for Africa and their implications on Africas democratic crisis are not patently clear.The current scramble for Africa is markedly significant in two ways. First, it is a scramble

Examining The Bromination And Debromination Of Cholesterol Biology Essay

Examining The Bromination And Debromination Of cholesterin Biology EssayBromination/debromination which is an principal(prenominal) constitutive(a) answer that aims in purification of crude cholesterin from impurities which include 3-cholestanol, 7-cholesten-3-ol, and 5,7-chlestadien-3-ol was performed in a laboratory scale for two weeks. Due to steric constraints, only cholesterin reacted with bromine and cryst any toldized from the resolving making it affirmable to be illogical (Feiser, and Williamson 63). The dibromo cholesterin formed is regenerated by reacting with Zinc dust. In addition, common chord methods were practice sessiond to respect the effectiveness. These were atomic number 11 Iodide psychometric adjudicate, Silver Nitrate trial, and Sulfuric stinging block out. NaI rill showed a dictatorial result as color changed to yel busted. The formation of the precipitate in addition indicated a lordly result. The sodium iodide re cistron reacted with 1 a nd 2 alkyl halides by means of an SN2 mechanism.On the separate hand, the silver nitrate reagent reacted with 2o and 3 alkyl halides by an SN1 mechanism. Negative results were find for both the technical cholesterin and 1-chlorobutane (Zubrick 38). Conversely, the t-butyl chloride gave a positive result for the AgNO3test and a negative result for the NaI test. The synthesised cholesterol was 0.29 deoxyguanosine monophosphate and the theoretical try was 1.08 gram. This gave a portion yield of 26.9 gram. Although this was a low yield the TLC analysis confirmed a high righteousness of the synthesized cholesterol. The melting point of the synthesized cholesterol and commercial cholesterol seems to worsening in the same range. This confirms the excellence of the synthesized cholesterol. TLC analysis was carried out to confirm the purity of the analysis. The distance traveled by commercial cholesterol was 5.5 whereas that travelled by the synthesized cholesterol was 4.6. The ab sence of other(a) sight on the TLC scale leaf confirms that there were no contaminations gratuity in the sample.Int magnetic poleuction Cholesterol is an important steroidal confused found in both animals and plants. Despite the circumstance that cholesterol causes diseases, it plays a vital role in life. For example, cholesterol is the main structural component in cell walls and in myelin character formation. It is as well a major precursor for most steroid hormones. naked cholesterol is isolated from natural sources and various methods have been used in its purification. Crude cholesterol assumes approximately 3-5% contamination. Some of the contaminants are 3-cholestanol, 7-cholesten-3-ol, and 5,7-chlestadien-3-ol shown below.Figure 2 Some common contaminants of commercial cholesterol The main objective of this experimentation was to purify commercial cholesterol using organic reply chemistry, including the use of the electrophilic addition. For complete purification of cholesterol from the preceding(prenominal) impurities is achieved by a chemical reaction of bromine with cholesterol to generate dibromocholesterol. Because of the steroid halo structure present in these compounds that causes steric constraints, only cholesterol reacts with bromine to form an in fat-soluble diaxial dibromo compound through electrophilic addition. On the other hand, cholestanal does not react with bromine and the other two contaminants are dehydrogenated by bromine leading to formation of soluble dienes and trienes respectively. The dibromo-cholesterol precipitates as a solid leaving the other impurities in the reaction solvent. A purification step such as solvent wry wash or crystallization is carried out to separate the solid from the impurities. The solid dibromo-cholesterol is because reacted with zinc in order to regenerate pure cholesterol.Figure 1 reception Scheme for the Bromination/Debromination of Cholesterol To test the effectiveness of this react ion three different chemical tests namely sodium iodide in acetone, silver nitrate in ethanol test, and sulfuric acid test, were performed. Each of these tests is selective for a specific functional group. Dibromocholesterol contains both primary and secondary alkyl halides and reacts with a sodium iodide in acetone and silver nitrate in ethanol to form a precipitate or a cloudy tooth root. In addition, the presence of double bonds in dibromocholesterol in form of alkene makes it possible for the formation of a fluorescent green sulfuric acid bottom and a red chloroform layer when reacted with sulfuric acid (Landgrebe 78). real(a) and Methods 1g of commercial cholesterol was added to a 25 mL Erlenmeyer flask. 7 mL t-butylmethyl ether was thrifty with a graduated cylinder and added to the flask containing the cholesterol and a magnetic stir bar. A water bathe was whence set up on the hotplate in the hood. The Erlenmeyer flask contain the reaction solution was inserted into the water bath and clamped as shown below. The heat and the scaremonger were turned on and gently heat until all the cholesterol unfreeze in t-butylmethyl ether.Figure 3 Set-up for bromination reaction (Note the actual reaction compartmentalization is not blue)The flask was removed from the water bath after all the cholesterol was completely dissolved and allowed to cool to room temperature. After the cholesterol solution was cooled, the flask was clamped to the ring on the hot plate as shown in figure 4 and stirred without heating. A burette was consequently used to dispense 5 mL of bromine solution into the flask. A precipitate solution formed almost immediately.Figure 4 Set-up for the summation of BromineThe water bath was re set with ice and tap water and the reaction solution stirred intermittently with a glass stir rod for 10 minutes to complete the crystallization of the product. About 20 mL of the t-butylmethyl ether acetic acid solution was consequently dispensed in a c lean 50 mL Erlenmeyer flask which was clamped to a ring stand and allowed to cool in the ice bath. A vacuum filtration was through with(p) using a Buchner displace and perk paper. The solid in the filter was process using 10 mL of the cooled solution of t-butylmethyl ether acetic acid and then with 10 ml of methanol. The solid was then allowed to wry with the vacuum on for close to 5 minutes. the dibromocholesterol melting point was measured and recorded. The dry solid was weighted and sealed in a phial and stored for next experiment. To debrominate cholesterol, 20 mL of t-butylmethyl ether, 5 mL of acetic acid and 0.2 g of Zn dust were added into the Erlenmeyer flask containing the dibromocholesterol solid. The mixture was swirled for 5-10 minutes in the hood and sonicated in 5 minutes to allow the reaction to go completion. After sonication the solids present were removed by gravity filtration method into a clean 125 mL Erlenmeyer flask. The filtrate was transferred to a 1 25 mL separatoryHYPERLINK http//community.acphs.edu/bbcswebdav/institution/Arts%20and%20Sci/Courses/CHE211/Common/lab/Organic-sde/BP-Dist/BP_General.html funnel in which 20 mL of deionized water was added, shaken and allowed to separate into layers. The two layers formed were then separated as water layers and organic (ether) layers. The ether layer was washed with 20 mL of 10% NaOH and then 20 mL of double-dyed(a) NaCl solution. 100mg of the drying agent magnesium sulfate was added to the organic layer and the solution swirled until dry. The drying agent was removed by gravity filtration using a glass funnel fluted filter paper and a very dry 50 mL Erlenmeyer flask. The flask was placed in a warm water bath and then ice cooled for 10 minutes until all but 5 mL of the ether remained following a precipitate formation from the solution. The stay solvent was decanted and the synthesized cholesterol transferred and allowed to dry in the hood for 20 minutes.The dry solid was weighed and the weight recorded. In addition the melting point was also taken and recorded. To evaluate the effectiveness of the bromination reaction three chemical reactions mentioned above were carried out. NaI in acetone test Five test tobacco pipes labeled A, B, C, D and E were used for this test. About 30 mg of the commercial cholesterol starting material was added to subway A 30 mg of dibromocholesterol to pipe B 30 mg of the synthesized cholesterol product to tube C 0.3 mL of 1-chlorobutane to tube D and 0.3 mL of t-butyl chloride to tube E. In addition, about 3 mL of acetone was added to to each one tube to completely dissolve all the compounds. Solutions A-E was used to do the NaI in acetone test as well as the AgNO3 in ethanol test. Tubes A-C did the TLC as well. The NaI in Acetone and AgNO3 in Ethanol tests were performed by desktop up a test tube rack containing ten small test tubes. The test tubes were labeled N1 N5 and A1 A5. 1 mL of NaI in acetone reagent was added to te st tubes N1 N5, and 1 mL of AgNO3 in ethanol reagent to test tubes A1 A5. This was followed by adding 5-8 drops of A solution to test tube N1 and tube A1, 5-8 drops of solution B to test tube N2 and tube A2, 5-8 drops of solution C to to test tube N3 and tube A3, 5-8 drops of solution C to test tube N4 and tube A4, and 5-8 drops of solution C to test tube N5 and tube A5. The test tubes were heated for a while and all the observations recorded. The sulfuric acid for alkenes test was performed by additional solutions of cholesterol and dibromocholesterol with louvre dry-cleaned test tubes 1-5. 10 mg of commercial cholesterol was placed in tube 1, 10mg of the dibromocholesterol to tube 2 10 mg of your synthesized cholesterol to tube 3, 10 mg of 2-chlorobutane to tube 4, and 10 mg of cyclohexene to tube 5.About 1 mL of chloroform (CHCl3) was added to each tube and twisting to completely dissolve all solids. In addition, 0.5 mL of H2SO4 was then added to each tube. The observation fo r this reaction was recorded in the notebook. The TLC analysis of cholesterol and dibromocholesterol was performed by obtaining a silica gel TLC plate and setting it up to run TLC analysis on solutions A-C above. The plate was espy with each solution and developed by placing the plate using 30% ethyl acetate 70% hexane as the mobile phase. The developed plates were viewed low UV lamp and in the I2 chamber and observations recorded.Results postpone 1 Percent try of synthesized cholesterolActual have a bun in the oven0.29gTheoretical Yield1.08gPercent Yield26.9%Mass of Synthesized Dibromocholesterol was 1.57gTable 2 Melting Point Test raiseTemperature CCommercial Cholesterol144.6-150.3Dibromochesterol105-109Synthesized Cholesterol147Table 3 Sodium Iodide test fluxTimeVortexTempFirst home run of ReactionCom. Cholesterol no(prenominal)Dibromocholesterol+ lily-liveredSynthesized Cholesterol+Chunky Yellow1-Chlorobutane+YellowTert-Butyl Chloride+CloudyTable 4 Silver Nitrate testComp oundTimeVortexTempFirst Sign of ReactionCom. CholesterolNoneDibromocholesterol+CloudySynthesized Cholesterol+Cloudy Yellow1-ChlorobutaneNoneTert-Butyl Chloride+CloudyTable 5 Sulfuric Acid TestCompoundTimeVortexTempFirst Sign of ReactionCom. Cholesterol+ColorDibromocholesterol+ColorSynthesized Cholesterol+Color1-BromobutaneNoneTert-Butyl Chloride+ColorTable 6 Thin Layer Chromatography In 30% Ethyl ethanoate/70% HexaneCommercial Cholesterol5.51.05.5Dibromocholesterol40.735.5Synthesized Cholesterol4.60.845.5DiscussionThe yield of the synthesized cholesterol was .29 grams (Table 1). The theoretical yield was 1.08 grams. The actual yield was calculated by taking the difference of the weight of the round bottom flask and the synthesized cholesterol by the synthesized cholesterols weight alone. The percent yield was calculated to be 26.9 percent. The synthesize process was not efficient due to the low yield and percent yield of the synthesized cholesterol.The melting point of the synthesi zed cholesterol and commercial cholesterol seems to fall in the same range. This confirms the purity of the synthesized cholesterol. NaI test showed a positive response as color changed to yellow. The formation of the precipitate also indicated a positive result. The sodium iodide reagent reacted with 1 and 2 alkyl halides through an SN2 mechanism.On the other hand, the silver nitrate reagent reacted with 2o and 3 alkyl halides through an SN1 mechanism. Negative results were observed for both the commercial cholesterol and 1-chlorobutane. Conversely, the t-butyl chloride gave a positive result for the AgNO3test and a negative result for the NaI test. The stationary phase of the TLC test was the silica gel TLC plate and the mobile phase was 30% Ethyl Acetate/70% Hexane (Table 6). The distance traveled by commercial cholesterol was 5.5, and for the synthesized cholesterol was 4.6. The difference in the distance traveled and the Rf values of the samples commercial and synthesized chole sterol were pure. Since there were no other spots visible on the TLC plate was a clear interpretation that there were no contaminations of other chemical compounds present in the sample.

Macroeconomic Analysis Of South Africa

macro frugal synopsis Of to the south AfricaIntroductionThe pecuniary crisis, in fact, alludes the ball-shaped humans since 2008. in that respect is steep inflation, increasing unemployment straddle, low trade, decreasing GDP and so on. In e actually market-gardening as sanitary as in to the south Africa that in addition faces the macroeconomic enigmas, representing by the f on the wholeing of the output, high inflation, and the microeconomic problems as well affect to the economic trade.T here(predicate)fore, the objective of this report is to analyze and focus on the macroeconomic environment and formulate a st considergy in responding to the sparing crisis in southwesterly Africa. The reason to know and analyze the macroeconomic in a body politic is, beca persona the microeconomic, institutional changes ar un handlely to be enforced if the economy is in a state of macroeconomic chaos-plummeting widespread unemployment and hyperinflation. macroeconomic stabil ization must and can precede the to a greater ex ext entrepotamental microeconomic, institutional transformation.Macroeconomics in terms of business is dealing with the performance, structure and the behavior of guinea pig or regional economy as a whole. It is also a study rough GDP, unemployment rates, subject in issue forth, output, inflation, savings, enthronement, international trade and economic growth.Macroeconomic Background southeast AfricaLocated in base of the continent of Africa, conspiracy Africa is a diverse nation with an appealing mix of populate, culture, faith and wordings. scorn the people, southwestward Africas physical state also has its take in distinctive features. It has its own unique geological formations that aids in producing the mountains, plains and coasts. southwest Africa also has too large fall of fertile land. Further much, a more extraordinary feature about southeast Africa is that it is home to the rargonst species of wildlife and p lant life.The nation has a total bena of 1, 127 200 squ argon kilometers and it is divided in four provinces, which atomic fig 18 the blanket Province, the Transvaal, the Orange Free State and Natal.Being located in a subtropical area, southeast African more often than non enjoys warm weather all year round. Naturally, being located in due southern Hemisphere, winter is experience during June and summer is experienced in December.Demographic confederation Africa has a world of 49 jillion people (2009). It has p crafticular demographic due to the heterogeneity in population base, apartheid, ethnic pigeonholings and emigration board Population % (Wikipedia, 2010)fundamentally the down in the mouth people theyre the ethnic group like Zulu, Xhosa as considerably as immigrant form the new(prenominal) parts of Africa ( aroundly from Nigeria and Zimbabwe). The etiolates theyre the descendants of French, British or German settlers whom arrived to mantelpiece Town from the late of 17th century. Some of them are from immigrants from Europe and Portuguese colonies left oer. Coloureds are the descendants of earliest settlers, their slaves and endemical people. The last part of racial population can be counted as Indian or Asian (Chinese)Table Age structure % (Wikipedia, 2010)The total total fertility rate from 2001s to 2009s is 2.41 children born per woman. So thats why separately family in randomness Africa usually has more than 2 childrenIn the countrified they remove around 11 official languages, the most spoken language of black people is 30.1% speak Zulu, 22.3% speak Xhosa while most the white residents speak Afrikaans at home (59.1%), 39.3 speak English (Wikipedia, Demographics of sulfur Africa, 2010)Political situation south Africa has multi-party musical arrangement where the President Jacob Zuma is the head of presidential term and the parliament. The African subject field Congress is the ruling party in the national legislature, which received 65.9% of the votes during the 2009 ordinary elections and has 74.25% of total seats in the parliament. Democratic federation is the gage study party that received only 16.66% of the votes and has 11.75% of total seats. tout ensemble the other parties represent less than 20 %. From this huge gap amongst the ruling party and the democrats we can see that political situation is motionless and go forth stay like that in near future. (Parliament monitoring group 2009) (Number of Political Party Seats National Assembly May 2009 parliamentary Monitoring Group Parliament of southmost Africa monitored)Laws regulationsSouth Africa has progressive heavy framework. The legal system is based on Roman-Dutch law and English third estate law. Commerce and labour legislation is well developed while laws relating to argument policy, copyright, patents, trademarks and disputes conform to international norms and conventions. South African commercial laws and company laws are s imilar to the laws of the United Kingdom. Sanctity of contract is protected under parking area law, and independent courts ensure respect for commercial rights and obligations. The independence of the judiciary is guaranteed by the Constitution.South Africas financial systems are sophisticated, robust and well regulated. Banking regulations rank with the ruff in the world, while the sphere has long been rated among the top 10 orbiculately. external banks are well represented and electronic banking facilities are extensive. (South Africa info 2008) (South Africa slack for business SouthAfrica.info)South Africas economySouth Africa is one of the most durable economies in the Arican continent. Its a middle-income coarse, emerging market with rich supply of innate resources. The country has beaty developed foot supporting efficient dissemination of goods throughout the southerly African region ,with well-developed financial, legal, energy, communications, a stock reciprocat ion ranked among the top 20 in the world. The primary sector, based on manufacturing, services, mining, and agriculture is well developed. sparing growth was strong from 2004 to 2008 due to macroeconomic stability and a global commodities boom. Because of world financial crisis in the second half of 2008 economy began to slow down. GDP was growth 5.1 % in 2007 and 3.1 % in 2008. In 2009 it fell nearly 2 %. Unemployment is high (24 % in 2009). intimidating economic problems re principal(prenominal) like leanness (47 % in 2009 below poverty line), lack of economic empowerment among the disadvantaged groups. South African economic policies, which are focused on controlling inflation and attaining cypher surplus, are efficient. Inflation rate in 2009 was 7.2 %. To welcome the unusual enthronisation in South Africa, the governing has made it clearly by investor- friendly policies. integrated tax is 29%. VAT on hotels and retirement multitudeels are charged at 8.4%. South Africa has a huge potential as an coronation destination, offering the first of all world developed infrastructure with a springy emerging market economy. It is also one of the most advanced and profitable economies in Africa. (CIA area Factbook 2010) (CIA The World Factbook South Africa)Monetary Policy and exchange RateMonetary policy can be defined as the measures taken by the monetary authorities to influence the quantity of money or the rate of touch with a view to achieving stable prices, full employment and economic growth. The South African Reserve Bank conducts monetary policy in South Africa. (About SA Economy, 2009)Exchange rate Rand (ZAR) per US dollar bill in 2009 (8.54), in 2008 (7.95) (About SA Economy, 2009)As we know the macroeconomic discussion focuses on monetary policies in the country. And any decision of the giving medication can affect the business-cycle changes in output, inflation, exchange rate or employment.South Africa emerged out of a recession i n Q3 2009. A pick up in jacket crown inflows and support from expansionary monetary and fiscal policy is contri anding towards its recovery (Euromonitors Economic Review of Emerging Market Economies January 2010)A rebound in the manufacturing sector and increased government spending on the construction of roads, railways and infrastructure for the 2010 World Cup helped stimulate growth. The manufacturing sector, which ciphers for 15 % of GDP expanded by 7.6% over the previous quarter in Q3 2009The South African rand appreciated to R7.48 per US$ in December 2009 from R9.97 per US$ in the same month of 2008, suggesting a gain of 25.0% in 2009. It has been one of the outperform performing emerging market currencies in 2009 attracting capital inflows due to rising liquidity and commodity prices. Nonetheless, this limits the recovery process as a stronger rand weakens merchandises. So far, the government has not intervened in the foreign currency markets to help curb the unprecedent ed rise in the randIn November 2009, the annual rate of inflation eased for the ninth concomitant month to 5.8%, below the central banks target rate of 3.0-6.0% for 2009. The South African Reserve Bank is likely to keep its key interest rate (repo rate) unchanged at 7.0% in the beginning of 2010, despite calls from labour unions for an interest rate cut.Unemployment problemPicture 1.png(South Africa Country Profile 2010, December)YearUnemployment rateRankPercent ChangeDate of Information200337.00 %182001 est.200431.00 %24-16.22 %2003 est.200526.20 %161-15.48 %2004 est.200626.60 %1681.53 %2005 est.200725.50 %172-4.14 %2006 est.200824.30 %169-4.71 %2007 est.200922.90 %170-5.76 %2008 est.201024.00 %1714.80 %2009 est.(South Africa Country Profile 2010, December)The unemployment rate was 24% (2009 est.) and was highest among 15 to 24 year old, at 48.4 percent, and lowest among 55 to 64 years old, at 6.8 percent. Of South Africas estimated 49.3-million people, around 31-million peopl e are amidst 15 and 24 years old. Today, the government gives round change for SAs unemployed who dont pass water study by create the training of unemployed project that aims to minimize the detrimental effects of the recession. The project trains people as electricians, b oil colorer-markers, welders and mechanics, so when they are prepare and easy to get the job and facing with the world with confidence.InflationCDocuments and Settingshim.STUDENTMy DocumentsDownloadsSouth-Africa-Inflation-Rate-Chart-000002.pngMarket structureAutomotive industryThe country is one of the best performing automobile market in the world. In 2006, it brought around R118 billion of increasing to sales. In 2007, fomite exports were about 170 yard whole sales which were expected to jump up to 285 potassium in 2008. The vehicle market had a huge development when comparing to year 1997, the whole exported only 20 thousands. The sector is about 10% in account of manufacturing exports, 7.5% of contri f urtherion in GDP with the employment of around 36 thousand people. The government aims to increase the vehicle production to 1.2 million units by 2020 because of the commentary of the automotive industry is a key growth sector numerous of multinational companies such as Ford, Toyota, GMuse South Africa as source components and assemble vehicles for both the local and overseas markets. From 2000 to 2006, the investment in production and export infrastructure was multiplied by four, which was R1.5-billion to R6.2-billion. An R4-billion in investment was expected in 2008. Most of the investment came from foreign where the parent companies valued to expend the local operations to improve product capacity, support export and infrastructure (Big Media Publishers, South Africas automotive industry, 2008)690-1823-0-0_1464872.jpgTable Automotive revenue (Big Media Publishers, 2008) tap and mineral resourcesSouth Africa is well-known in the world by its affluent in mineral resources. The w ealthy of the country has been built on the countrys colossal resources. There are various kinds such as Platinum, Chrome (which the smell is the 1st in the world), Gold (1st largest producer), Diamond (4th largest producer)but only consummate(a) oil and bauxite is those that the country doesnt have. Mining was an industry that contributed 21% total exports of goods in 2006Gold was once the keystone of South Africa but it has been diminished in importance due to economys diversity. From 1970s to 1980s, the exports of gold were the predominant source of country foreign exchange earnings which made up a 14% of total value added in economy. In the year of 2007, this shifted to 5.8% contribution to country GDP of mining and quarrying. The mining industry is South African biggest employer. It attracts more than 860 thousand employees of moil forceCurrently, more than 70% of mining industrys labor force is black. Opposite of that number, its just only less than 5% of managerial positi ons belongs to black people. The mining sectors key issue is transformation. The target has been set by the government that an expect of 40% managerial positions would be held by South Africans in all mining companies (Big Media Publishers, 2008)692-1827-2678-0_1452532.jpgTable Mineral resources (Big Media Publishers, 2008)AgricultureSouth African agriculture isnt dominated by subsistent estate. In fact, it has both well developed commercial farm which is predominant and more subsistent influenced in complicated areas. The country has more than enough output to export massive amounts of sylvan produce. Because of the variousness of climates, there are good conditions (such as mix farming in winter rain fall and in summer rain fall) for growing different crop production in South Africa. The diversity in climate, which is tropical, sub tropical and desert allows diversity in products either. South Africa also has advantages in marine resources which is 3000km of coastline that is appreciated to develop mariculture and aquaculture. The main agriculture export production can be listed as maize ( most southern African countries rely on this import), wine (South Africa is the 5th largest producer worldwide), fruits (grapes, pears, peaches), livestock farming (sheep, cattle)Agricultural contribution represents less than 4% of GDP but 10% of total reported employment in accounts while farming is 8% of countrys total exports. The key agrarian trading partners of South Africa are America and some countries in EU. They gain the benefit from the market by exporting through number of trade agreements. The agriculture sector is exceedingly protected and evolved to governments control. In 1996, the Marketing of Agricultural yields Act they closed agricultural marketing boards, eliminated subsidies and set the import tariffs to protect South African farming from unfair international competition. So the South African farmers and agribusiness could be placed themselves a s players in a globally agonistic environment. straight off there are still some factors that even though the government has tried to implement, these couldnt bring any efforts to the rest of the economy. For examples most of indigenous people are subsistence farmers, subsidies from other developed countries, climate changeare cut down sector growth (Big Media Publishers, South African agriculture, 2008) (Wikipedia, 2010)Infrastructure zipper infrastructureAmong the countries that have the lowest bell of electrical energy, however South Africa has to face its problem of the demand for power outstripping supply. The economy grows strongly, a lot of rapid industrialisation development, the electrification programme is being mass led and distinct lack of investment are all the issues which cause the power supply crisis in South Africa. As a result, the state energy company Eskom and the government has come up with a projected ZAR 343 billions over five years to fund new power stati ons for energy increasing such as nuclear and electricity storage. Eskom also aims to reduce the demand of electricity by 3 000 megawatts in 2012 and 5 000 megawatts more in 2025Table Energy Overview (Big Media Publishers, 2008)There are some thought about using internal energy as wind or solar. Despite South African sunny weather, the ideas havent really taken off and there are some concerns that the country somehow isnt appreciated with the wind energy. Energy contributes an amount of 15% country GDP. The country is 11st country in the world that has highest commercial primary energy intensities due to its large scale economy structure, mining industries and some benefit based on minerals activities which push the usage of energy supra average (Big Media Publishers, South Africas energy supply, 2008)Source EIATransportationThe transport electronic network has been identified and highlighted as a competitive advantage in global market. The road system in South Africa has a total of 754 thousand km in which 9.6 thousand km is national road. 2.4 thousand km are toll roads. However the road infrastructure needs to be constructed due to overloading of heavy vehicles and volumes increasing of road freight vehicles. It has approximately 95% of country trading business are done by crack through the sea as well as the traffic from others countries like Europe, Asia, America and even Africa itself. The railway system is also one of the main transportation which is 10th longest in the world. It connects all the parts in the country together so it can be used for transporting goods or even tourism. The airline industry carries about 33 million passengers a year. There are a lot of airports such as Johannesburg, Cape Town, Durban which are the 3 main international airport and the others at South Africa (ArriveAlive, 2010) (Publishers, 2008)Technology sectorTechnology sector is well developed with unexampled manufacturing sectors like machinery, scientific equipment a nd motor vehicles. South Africa has strong technological seek centers. South Africa has developed a number of leading technologies, principally in the fields of energy and fuels, steel production, mining, and telecommunications. There is all necessary engineering science for hospitality industry. (South Africa info 2008)Tourism in South AfricaSouth Africas major attractions for tourists are mainly involved with nature. They are the large variety of peppy parks, nature parks and a magnificent scenic diversity of grace varying from desert plains blooming with spring flowers to mountains overlooking vineyards, valleys and large farmlands, tribal communities and modern cities.The countrys coastline, which represents many names to our world today, such as Africas southern most coastline and the base of the large continent, is 3000km long. This 3000km long coastline is nothing but smooth sandy beaches with charismatic seaside resorts scattered along. Some of these locations are note d beaches and surfing areas. For animal lovers, there are other attractions that are available. For example, in Pretoria there are various botanical gardens, bird sanctuaries, aquariums and zoo. The National Zoological Gardens in Pretoria is ranked to be the top ten zoos in the world. Some examples of daytime activities are coach tours, ocean cruises, museums, art galleries and a wide range of sports. new(prenominal) famous attractions in South Africa are the wines produced. South African wines are categorized under radical World Wines. These wines are famous all over the world. South Africa is the worlds most known hunting destination. It offers hunting at large land areas that are protected under legislative laws and hunters can find many grand species. Hunting seasons are usually between May to July. And the Professional HuntersOther outdoors activities for tourists that are famous in South Africa are canoeing, river rafting, safaris, wilderness trails and rambling. Hiking as well has a rising popularity as the National Hiking panache has been developed and improved.All activities mentioned are easily accessible by the generally good infrastructure in South Africa. Overall, most tourist attractions in South Africa are not for the faint hearted and for nature lovers.According to some reports, international travel to South Africa has increased, in 1994 the year South Africas first democratic elections, only 3.9 million foreign tourists to the country. By 2004, the international visitors have more than doubled to 6.7 million. And in 2007 the total number of 9.07 million foreigners visited South Africa- 8.3% increase compared to 2006- as the country broke its annual tourist arrivals phonograph record for the third year running. In South Africa, nowadays, Cape Town has perish an important retail and tourism centre, and attracts the largest number of foreign visitors come here for their holidays. (South Africas tourism industry SouthAfrica.info)Internatio nal tourist arrivals (in millions)nternational tourist arrivals in South Africa(Source Department of Tourism) (South Africas tourism industry SouthAfrica.info)Tourism is also one of the meteoric growing sectors of economy in South Africa, and it contributed to the Gross Domestic Product (GDP) of country increasing from 4.6% in 1993 to 8.3% in 2006.Tax systemUntitled.pngTable Paying taxes (IFC, 2010)SWOT analysisStrengthSouth Africa has a world class infrastructure as their competitive input, like 3 deep water ports, 3 international airports, a network of roads and high ways, well developed cold chain facilities and a sophisticated financial sector. These infrastructures are even comparable to first world developed countries and its terms is optable (the cost of electricity is still remain inexpensive and competitive in labour rates as well) (Big Media Publishers, South African agriculture, 2008)The clean-handed trade agreement and high technology, high infrastructure offering a re the key determine for international investment from America and European sodalityThe strength includes the mineral resources as well as South Africa is considered as a major mining country. Its the world largest producer and exporter of gold and platinum. They also have a high level of technology (such as a ground-breaking process that converts low-grade superfine iron ore into high-quality iron units) and production expertise (the raw materials such as iron, carbon steelwere added more values before exporting) which make mining industry is one of the key sectors of the countryWeaknessSouth Africa has a high ratio of unemployment which is from 30% 40%. The education of the labour force is still very low, especially black people. A result showed us that just 22% of Black Africans have immaculate high school. When we do comparison, it has difference amount of 70.7% of Whites have completed high schoolMore than 5.7 million South Africans are septic with HIV in which 350 thousa nd have already died of Aids with millions of South Africans have been victims of violent crimeOpportunitiesThe FIFA World Cup 2010 will be held at South Africa this summer so this will be not only the opportunities for the South Africa itself to increase their international images and reputations. Its a good change to advertise and promote the values of the country so itll attract more investment and partnership from foreign and internal either. For the FIFA World Cup 2010, South Africa has a plan to include a Bus Rapid move through system which will promote the use of public transportation between host cities as Cape Town, Durban with other cities. They also received an amount of R9 billion investments and an incentive from FIFA to improve the infrastructure in the nine host cities due to the expected massive visitors. It means a lot of upgrades to countrys airports and general transportation including taxi system, passenger trail and bus (Osec, 2010)ThreatBecause South Africa is an export led economy, its very easy to be influenced by global demand. The depreciation in price of commodities which go deeper to very low levels could be resulted to job lossesThe power supply crisis leads to needs of diversity in energy mix including natural gas, nuclear power and various forms of renewable energy as well. The indigenous source of energy is coal which use to produce electricity and its one of the causes of greenhouse gases. The activity to increase electricity by using coal can pollute the environment and it requires the government have to have plans to prevent global warmingThe roads system needs to be constructed because of massive traffic and transportation. An official report give tongue to that it would be cost around R65 billion for urgent repair. Otherwise the cost for a year due to overloading will be surpassed R650 million in destruction to roads (Osec, 2010)Future developmentWhen South Africa answers to invest into other countries of Africa, they ar e helping to diversify African economies and reduce the dependent on primary sector industries. South Africa doesnt focus only on oil and gas, but they concentrate about telecommunicating, banking service, mining also. They enter the African market, but creating them as well by building infrastructure, transferring technology and knowledge, encouraging the foreign country to enforce laws and strengthen democratic institutions. For examples South Africa exported to the rest of Africa a R43 billion worthy, most of involved import related to oil from Nigeria which was R5 billion. That number show an imbalance in South African goods and services with African consumers. The countrys companies also try to integrate themselves with the local economies by hiring local cater or buying materials from local procedures. In return, South Africa received the favour by investment from the other African countries which is good for South African own domestic economy. Thats why South African engine is very important for economic development across the African continent (Leon, 2004)In 2009, the government fatigued a total amount of R787 billion on public infrastructures over the next 3 years which would push the countrys budget deficit to 3.8% of GDP in 2009. They explained that it was necessary to borrow the funds to finance planned public infrastructure projects due to the decreased demand for South African commodities and lower output. In the R787 billionR390 billion would be spent on state owned enterprisesR25 billion for Rail Computer breadbasketR12 billion for the Bus Rapid Transit systemR1.6 billion South African AirwaysConclusionAfter we analyzed the economy of South Africa and bespeak the future of the country, we realize that South Africa has potential to invest money in this country which can create profit for us as entrepreneurs as well as for the countrys economy. South Africa has many strong sectors but we decide to invest our money in health care sector which is currently not strong in this country. We believe this is the right decision which will bring to us return on investment and profit for the future.