African Development Bank
Furthering Private Sector Development for Economic Growth
Kuwait
Central Piedmont Community College
Gross domestic product per capita as private firms assist in creating jobs where is necessary and meet the demand of consumers. Developed countries such as Kuwait, understand the importance of a strong private sector and the benefits it holds for a country, as a result they have been providing aidand programs to developing countries through the Kuwait Fund for Arab Economic Development(KFAE)and the African Developmental Bank (AFDB)According to the AfricanDevelopmental Bank Group, AFDB main objectives are to eliminate poverty and improve living conditions through the funding, investingand promotion of public and private capital and program.
There are three major areas that require great attention and investment: energy, transportation and infrastructure and agribusiness. According to the Kuwait permeant mission, “The total value of loans provided by Kuwait Fund for Arab Economic Development ,until the end of 2014,exceeds $17.9 billion, and has benefited 104 countries all over the world.”
Energy is vital for development, and Kuwait believes it should be a top priority for development, but Kuwait prefers renewable energy, which also has numerous benefits in jobs and other economic benefits. For example, renewable energy such as solar, hydro, and geothermal energy can be expensive to install, but do have long term benefits. First, it will provide jobs for numerous people. As supported by Union of Concerned Scientist website, “Other renewable energy technologies employ even more workers. In 2016, the solar industry employed more than 260,000 people, including jobs in solar installation, manufacturing, and sales, a 25% increase over 2015”
Transportation is an essential part in economic growth, better roads will allowfor the movement goods, faster access to businesses, ports, and the international market. This can promote international trade, which provides a variety of good for consumers, lowers cost, increasing efficiency and helps create a comparative advantage for developing countries; certain countries can produce goods cheaper and could trade with other countries. This is supported by Ohio University online masters program.
Finally, Agribusiness plays a major part in furthering development, Kuwait strong believes that investment in agriculture will aid in food production, but also economic growth as it will create jobs and generate trade. To illustrate, KFAE provided a grant for Mali a developing country to assist in food security the project included “Construction of an irrigation dam and drainage schemes and procurement of electromechanical equipment as well as capacity building.”
Work Cited
“Benefits of Renewable Energy Use.”Union of Concerned Scientists,
“Ten Economic Benefits of International Trade.”Ten Economic Benefits of International Trade | Ohio University, onlinemasters.ohio.edu/ten-economic-benefits-of-international-trade/
Kuwait Fund,
“Building Today, a Better Africa Tomorrow.”African Development Bank,