The Economy of Chad

In this project I will be aiming to learn more about the Development of Chad. There are many ways of defining developments. One of the ways I will try to understand the level of development is through how well the economy is doing, also you can look at the living conditions and the state of the public services. The sustainability is also another factor and will help understand if the economy is doing well of if it is unstable.

If you look at the sources of income that a country relies on then you can tell what factors could affect the economy and development, for example countries like America’s economies are going to be affected by the credit crunch because they are based on an economy which relies on Banks and Financial Firms, whereas Chad relies on Oil and other goods export so Oil prices could affect the economy, but I’ll get onto that later in the project.

The Economy of Chad

Economy is probably the best way of monitoring the development of Chad, because it can determine how wealthy the people of the country are and if the economy is going up then generally the standard of life in the country for all the citizens is hugely bettered.

The Economy of Chad is very unstable and uncertain. The economy is very variable due to the fact that they hugely rely on the rainfall for their crops such as cotton and that the terrain and deserts are scrappy dry land which isn’t good for growing most crops. Also the Civil wars that have gone on there have hugely disrupted life and agriculture, the main source of money for the average citizen.

Here is a chart which shows the current GDP compared to the World Leaders

Here is a chart which shows the current GDP compared to the Countries which surround its borders.

This chart shows that even though there is little wealth and prosperity in Chad they are ranked 4th out of 6, although the difference between Chad and the next biggest economy (Cameroon) is a third as big.

One of the huge sources of foreign money is the oil from the Southern province and has already brought stimulation to the economy. For the next 25 years the supply of oil is expected to raise an extra 80-100million per year for the government, although this sounds like a lot of money it is actually nothing compared to the amount of revenue it should, and also there are fears that there will be too much foreign investment that all the money that is taken from the oil will actually go to foreign countries like America, which is what is happening at the moment to China with its factories. Chad is not affected hugely by current affairs like the Credit Crunch because barely any money is invested into the country and a lot of the trade is still between other people in the same towns, whereas things like Oil prices, rainfall and crop prices could bring make or break the economy hugely.