Comparative Analysis Of Qatar And Central African Republic

Qatar

Qatar holds the first rank in the list of the countries with the highest per capita GDP (PPP), whereas, Central African Republic holds the last (187th) rank in the same list, which was prepared by the International Monetary Fund in 2017. Roughly, a person in Qatar earns on average $128,702 annually, while in Central African Republic an average person earns $693 annually. Our concern is that what makes Qatar so rich and at the same time what makes Central African Republic so poor. 2. HISTORY QATAR Qatar was ruled by Ottoman Empire before being ruled by the British Empire. British Empire did not benefit economically much from the State of Qatar as it was a poor country. Like most of the oriental countries, Qatar also did not witness industrial revolution and hence lacked modern industries. Fishing and pearl hunting were the most common economic activities being practiced back then. Qatar’s pearl industry also suffered a big setback during 1920’s and 1930’s as the Japan introduced the cultured pearls in the market at that time. It was a moment of extreme delight, when Oil was discovered in 1940. But, the drastic change occurred after Natural Gas was discovered in 1970. Qatar got independence from the British Empire in 1971. Since then, Qatar has developed swiftly and today it is world’s richest country.

Central African Republic

Central African Republic was a French colony and the French used to trade upon this territory in various goods. French coercively used to make people cultivate rubber, coffee and other cash crops without paying a penny to them, by keeping their family members as hostages till they used to meet their quota. French also used to exploit gold, diamond, timber, crude oil and mineral resources; as the country is rich with them. Central African Republic got its independence from the French Empire in 1960. Since then, country has not remained politically stable and though democratic government is established over there but still corruption is high and as a result the country has not performed that well in the developmental realm. So we see that the Central African Republic was historically harmed by the imperialism more than the Qatar. Economic policies of the French Empire in Central African Republic were more exploitative than those of the British Empire in the Qatar. This was primarily because; the oil and gas were not the main economically traded goods at that time. While the gold, diamond, timber and mineral resources were the most coveted goods back then. So, this made Central African Republic more susceptible to economic exploitation as compared to the Qatar. Naturally, the country with more resources would be exploited more by the imperialist forces. Thus, the disadvantages of imperialism were faced more in the Central African Republic than in the Qatar. The imperialism naturally comes with phenomena such as - ruining of the traditional industries, forced labor, decline in literacy rates, etc. These made Central African Republic more disadvantaged than the Qatar.

Current Scenario

Today, Qatar’s economy is mainly dependent upon oil and the natural gas exports. Most of the oil and natural gas exporting countries are rich in certain sense in the present day scenario. Owing to the wealth amassed by the oil and natural gas export, Qatar is a country that does not take income tax from its citizens. Though, there are plans about taxing the products that harm the human body, such as – tobacco, fast foods, drinks, etc. Unemployment rates are about 0.1%. Standards of living are very high, with many five star hotels in the country, skyscrapers, luxury airlines, etc. In 2005, Qatar Investment Authority was set up as the Sovereign Wealth Fund of the country, which specializes mainly in the foreign investments. Actually, by selling the oil and natural gas, Qatar accumulates a big reserve of petro-dollars. So, the next puzzle which comes to the country is that how should that fund be managed. Qatar Investment Authority provides solution to this puzzle. Consequently, Qatari government has channelized the investment in the many foreign countries such as United States of America, United Kingdom, etc. Wealth distribution is also equitable as the country is less corrupt.

Central African Republic

Central African Republic is rich in mineral resources, uranium, gold, diamond, cobalt, timber, etc. It also has substantial amount of arable land and hydropower energy resources. Still, it is the country with least per capita GDP, least HDI, unhealthiest population and the worst place to be young. Its per capita GDP is lowest in the world but the accounted GDP is only calculated out of legitimate goods and services. It ignores the black marketing of alcohol, diamond, ivory, bush meat and traditional medicine. The annual GDP growth rate is about 3%. Main agricultural crops are cassava, peanuts, maize, sorghum, millet, sesame, etc. The food crops are extensive as compared to the cash crops. This is primarily because the country has to be self-sufficient in the food stuffs and that the food crops’ surplus offers more money than occasional exports of cash crops. Wealth distribution is also not equitable as the country is more corrupt. By this we can conclude that the oil and natural gas are the consumer goods, while gold, diamond and ivory are the luxury goods. Therefore, exports from Qatar have more market than the exports from Central African Republic. Hence, more revenue comes to Qatar than Central African Republic. Moreover, the money obtained is better invested and utilized in Qatar than in Central African Republic, due to less corruption.

Geography

Qatar is a small country with an area about 11,581 K.M.2. It is situated in West Asia, at the north-eastern coast of the Arabian Peninsula. It has a sea – ocean connection towards the western side of the country through the Persian Gulf. Most of the land terrain is plain sand desert. Water on its land is just about 0.8%. Therefore, it is not predominantly an agrarian economy. Ocean connection gives Qatar an advantage as it can directly export oil and natural gas from its harbors and ports through waterways, as the air export of goods is more expensive than the water export. Climate is mostly hot and dry.

Central African Republic

Central African Republic is larger than Qatar in the geographical area with the figure touching about 622,984 K.M.2. It lies in Central Africa and is a landlocked country. This means that Central African Republic cannot directly export its goods through waterways. This hampers its export sector a bit. A lot of its land is savannah and equatorial forests. Equatorial forests do not offer a very good quality of timber though they offer good quantity of trees and hence the trade is not negligible. Whereas, savannah offers a substantially good quality of timber but the quantity is less as the trees are sparsely growing in the area. But, the savannah does offer a good grazing ground for the livestock. But the livestock industry also does not flourish in the country as the country hosts deadly pathogens such as the Tsetse fly. To boost the livestock industry, country has to invest heavily in the realms of the animal health, veterinary science and animal husbandry. But the country’s human population suffers from the dearth of good medical facilities so we cannot expect it for the animals also. The country has the river basins of the River Ubangi and the River Chari. These rivers offer good hydropower potential to the country’s energy credit. Some dams have been constructed but more optimum utilization of these resources is needed. Landscape is beautiful and the country houses several National Parks which offer a tourist destination. Though, this sector is also not as developed as some other African counties which offer safaris and so on. Climate is mostly tropical wet type.

Polity

Qatar is a constitutional monarchy, though it is disputed. Since, its independence Qatar has continued the same type of government. Hence, authoritarian environment is possible in the country. Consequently, trade unions, political bodies, etc., are not permissible by law in Qatar. This poses a big question to the rights and safety of the workers. The problem becomes even more serious when almost all of the labor force comes as expatriates into the country. Many a time, issues of exploitation and human rights violation have come to attention by that of the employer of the servant or the laborer. But since independence, Qatar has been internally politically stable. No major civil wars have taken place. This provides added security to the capital established in the country. The country holds 31st rank in the Corruption Perception Index prepared by the Transparency International. Hence, it could be said that the official corruption is low.

Central African Republic

Central African Republic is a semi – presidential constitutional republic. Though, democratic principles are established by the law, country suffers a lot from corruption. Since independence, country has witnessed a transition from the autocratic form of government to the democratic form of government. Since 1993, democracy is sustaining. But the country has also faced many civil wars, since independence. These internal conflicts pose a serious threat to the capital within the country. Instances of communal violence have been noticed and the crime is also high. The country holds 159th rank in the Corruption Perception Index prepared by the Transparency International. Hence, it could be said that the official corruption is high.

Demography

Islam is the official and the predominant religion of the State of Qatar. Most of the population of the other religions comes as expatriates. In 2017, Qatar’s population was about 2.6 million. Out of which 313,000 were Qatari citizens and 2.3 million were expatriates. So we see that Qatar relies heavily upon the migratory labor force. Most of this labor force comes from the South Asia. Population of Qatar is less but the population density is more.

Central African Republic

In 2003, Muslim population was more as compared to the 2010’s Muslim population. Proselytizing occurred in large numbers, which obviously resulted in communal tensions. These things created the grounds for the civil wars. Since the country lacks the industrial setup, employment opportunities are also scarce. Therefore, labor migration into this country s almost negligible. Population density is less, whereas population is more. Inadequate health care facilities are to be blamed for this.

Infrastructure

Owing to its immense wealth Qatar has invested heavily upon the improvement of the infrastructure of the country. Roadways, waterways, airways, electricity, internet, sewage, etc. are well developed. Moreover, this developed infrastructure helps develop the country even more. Once, a big push is required to set the economy on the growth ladder and to escape the vicious circle of poverty. This big push was provided by the oil and natural gas exports.

Central African Republic

Central African Republic never received that big push to give itself a thrust, so far as the economy is concerned. Traditionally being a poor country with ill managed resources, it still continues to be so. The vicious circle of poverty still haunts upon its skies. Therefore, the infrastructure is very poor in the country. Access to safe drinking water, sanitation, housing, etc. is missing. Basic needs of the citizens are not being able to be fulfilled properly. To set the country on the track of growth and development, infrastructure is required, which is not adequate in the country.

Conclusion

So we see that the State of Qatar is more developed than the Central African Republic as the former has good oil and natural gas reserves, good investment plans, human resource development, better infrastructure, etc. While the latter lacks the above mentioned things, it surely has certain resources of its own, which the country can utilize to their advantage. Optimum utilization of the resources is required in the Central African Republic. Government should invest in the human resource taking the instance of Japan. Basic need approach model will be a good growth model for the developmental issues of the country. It has to be corruption free and the crime rates have to be curtailed. Investment from the foreign route should be welcomed so as to provide the economy with a big push. In the long run, developmental model of the Qatar is not sustainable. They have realized it to their advantage and hence are planning to drive their economy towards a more sustainable model. ‘Qatarisation’ refers to the phenomenon in which the economy has more citizens as their labor force in contrast to the present model in which the labor force is imported. Moreover, it also refers to the shifting of the economy towards the more renewable sources of energy from the non – renewable sources of the energy.

Therefore, Qatar has started to plan out the ways of driving its economy towards a sustainable path. Central African Republic has to keep into the consideration the changing global climate and the environmental and sustainable aspects of development. Investment has to be channelized in a manner which comes out to be sustainable in the long run. Development is not just about increasing the money in the economy, but also about bettering the lives of the people. Therefore, Central African Republic has to curtail the social problems prevalent in the country. It has to increase the health index of its population, literacy rates, etc. with the participation of all citizens of the country scenario might change easily and swiftly.