Although Cote d’Ivoire’s GDP growth rate remains among the highest in the world from 2015 to 2017, 46.4 percent of the population still lives below the poverty line. The West African country, also known as Ivory Coast, relies heavily on agriculture, as do most developing countries. As the African country continues to develop, there are three possible areas that could help reduce poverty in Cote d’Ivoire: economic diversification, improving the agricultural industry and eliminating government corruption.
The country is over-reliant in one industry with 68 percent of Cote d’Ivoire residents having occupations in the agriculture sector. Although the country has grown partly due to the agriculture industry, relying solely on one industry is risky. Price fluctuations of popular exports, such as cocoa and coffee beans, are a high risk for Ivorians. Developing the healthcare, education, transportation, technology, infrastructure and mining industries would create tens of thousands of jobs and reduce poverty in Cote d’Ivoire.
Education is one productive area that would drive economic change and help reduce poverty in Cote d’Ivoire. Only about 48 percent of the population is literate. Education is a basic human right and necessary to develop further; investing in it is the foundation of a strong economy. However, Cote d’Ivoire is focusing more on public education. In 2014, the government spent about 4 percent of GDP on education. In comparison, the U.S. spent 5 percent of GDP on education in the same year. Investing in education has a spillover effect, as those seeking degrees in engineering or in the sciences may build hospitals or work in the lacking Ivorian healthcare industry.
Agricultural Industry Improvement
About 70 percent of the world cocoa production comes from West Africa. The country grew considerably and diversified the agriculture industry by exporting products such as cocoa beans, palm oil, coffee, bananas, sweet potatoes, cotton, sugar and many other products. Due to more than 60 percent of Ivorians relying on crops to feed their families and earn an income, further development in the agriculture industry is a viable option to reduce poverty in Cote d’Ivoire.
Cote d’Ivoire is the world’s largest producer of cocoa beans. Small farmers make up most of the agriculture industry. As the country slowly transitions toward urbanization, especially in the capital and in the major port city Abidjan, investing in more advanced farming techniques could help increase production and lead to a higher income.
Eliminate Government Corruption
Reducing poverty in Cote d’Ivoire begins with government initiative and policy. A strong foundation in government policy, particularly in strengthening the economy and creating jobs, is one fundamental way to reduce poverty in Cote d’Ivoire. A corrupt or passive government will lead to slow or little progress toward eradicating poverty. Under the leadership of President Alassane Ouattara, the country plans to have universal, affordable and clean drinking water by 2030. This goal demonstrates that Ouattara, unlike his predecessor who started a civil war, believes in achieving the Sustainable Development Goals by 2030.
Under President Ouattara, the Ivorian economy grew significantly. Cote d’Ivoire ranked 10th in the world in real GDP growth in 2017. In an effort to improve the economy after the civil war that stemmed from Ouattara’s election, the president increased investment in infrastructure and services. In 2008, the poverty rate was 48.9 percent. A decade later, it went down to 46.4 percent, a modest reduction, but still representing a large percentage of the population.
Reducing and ultimately eliminating poverty in Cote d’Ivoire is a long, and sometimes slow, process. It takes leadership with a moral vision to help its own people. Three solutions to the high poverty rate in Cote d’Ivoire are economic diversification, investment in the agriculture industry and strengthening government policy in order to create jobs that pay above the poverty level. Thanks to the strong growth in the Ivorian economy, poverty has already gradually reduced.
– Lucas Schmidt