A. Introduction
The world is divided between developed and underdeveloped countries where the developed countries have necessary policies in place to manage finance and growth of the country. However, the underdeveloped country is still in the process of becoming a self-sufficient country with limited technological and financial capabilities. Moreover, underdeveloped countries have poor policies that fail to accommodate changes in the global market which results in loss of opportunity for the country to gain a source of income. The study focuses on a poor and underdeveloped country Central African Republic. The country relies heavily on the exports of coffee, cotton, diamond and timber. However, there is a negative trade in the Central African Republic due to higher amounts of import as compared to exports. The study focuses on evaluating the background of the economy of the Central African Republic along with analyzing the strengths and weaknesses. The study further focuses on providing advice to the government regarding adoption of policies to improve their economy.
e. Technology Policy:
The fifth policy that the Government needs to work towards for economic improvement relates to technology. The country has strengths in the field of agriculture, mineral and ore. However, the country severely lacks the financial resources and energy production capacity which leads to weak infrastructure in the country. The Central African Republic is an underdeveloped country with investment opportunities in the field of mining, tourism and technology. In present times, the use of IT infrastructure in developing countries has increased exponentially (Tan & Taeihagh, 2020). In this regard, the government of the Central African Republic needs to focus on technology policy that supports the IT infrastructure. The Central African Republic needs to focus on three key policies for technological development in the country which can assist in attracting foreign direct investment and aging benefits from technology transfer.
The first policy is promoting the use of IT within small and medium businesses which can allow the businesses to provide products and service to global customers without the need of large amounts of financial resources. The second policy is providing direct support to business using novel technologies and IT infrastructure. Government support can be given by providing loans at lower interest rates along with creating incubators for technological start-ups. The third policy is to create a partnership between multinational firms and local firms. Partnership with multinational firms will allow the country to gain foreign direct investment which can assist in economic growth of the country (Haudi & Cahyono, 2020). These three policies can help in attracting foreign direct investment within the country.
In addition to this, the Central African Republic can introduce a Clean Technology Fund to support technological policy. The Clean Technology Fund focuses on promoting scaled up finance for deployment, transfer and demonstration of low carbon technologies in developing countries and underdeveloped countries (climatefundsupdate.org, 2019). Moreover, the policy regarding the Clean Technology Fund will help the Central African Republic to gain maximum benefit from technology transfer through foreign investment. Thus, these policies are necessary within the country for economic growth and development.
Bibliography
Haudi, H. W., & Cahyono, Y. (2020). Analysis of Most Influential Factors to Attract Foreign Direct Investment. Journal of Critical Reviews , 7 (13), 4128-4135. Retrieved on: 24th August 2021, from: https://www.researchgate.net/profile/Hadion-Wijoyo/publication/344327360_ANALYSIS_OF_MOST_INFLUENTIAL_FACTORS_TO_ATTRACT_FOREIGN_DIRECT_INVESTMENT/links/5f68658d92851c14bc8bd6f2/ANALYSIS-OF-MOST-INFLUENTIAL-FACTORS-TO-ATTRACT-FOREIGN-DIRECT-INVESTMENT.pdf
Tan, S. Y., & Taeihagh, A. (2020). Smart city governance in developing countries: A systematic literature review. Sustainability , 12 (3), 899-912. Retrieved on: 24th August 2021, from: https://www.mdpi.com/2071-1050/12/3/899/pdf
