5.2.2.2 Economic
development framework
5.2.2.2.1 In the field of economic
growth
Economic growth is a precondition for a policy of reducing the
debt burden. The financial health of the Togolese government would be greatly
improved by an increase in GDP growth. A sound political action could encourage
investment by creating a favorable environment. At the level of strategies and
actions to implement in order to stimulate the country's economic growth:
Ø The implementation of macroeconomic and structural
policies including trade, fiscal and sectorial policies contribute to a stable
environment for economic activity. These economic reforms affect more
incentives to invest. It is recognized that the countries that undertake sound
macroeconomic policies and that have economic structures that support the
functioning of the market can experience a relatively flexible and stable
economic growth.
Ø The growth of Gross Domestic Product (GDP) per capita
is a way to measure the economic performance of a country. This ratio includes
the demographic dimension and represents the «net gain» of growth:
Its increase results in an improved living standard. Togo can do belter,
especially by restoring the business climate which would increase private
investment and therefore GDP growth.
Ø The relationship between population growth and
economic development through the impact it has on the public debt are obvious
if we refer to our econometric model. For several decades Togo seems to have
borrowed money to meet the demands of public funds for education, health and
even to feed its children because the relationship between imports of consumer
goods and the debt is also proved by the model. A reduction in the population
growth is expected to improve the economic prospects of development of Togo and
hence its ability to improve the living conditions of its citizens. This belief
that is not universally accepted, is based on the reasoning that lower
fertility will reduce the number and proportion of children aged 0-4 years and
hence the demand for public services fund education and health. And because of
the decline in fertility rates, the resources available per capita for
education and health services increase, even in the absence of an increase in
funds allocated by the Togolese state for these services. The threat that
population growth poses for Togo is twofold. Firstly at the macro level by
increasing public debt second but even more because the rate of population
growth will be associated with a current rate of spending and therefore higher
consumption and low investment in building human and physical capital with the
risk of pressure on the environment and humain.il capital is generally accepted
that regulation of fertility and decline in mortality due to better health,
better education and better opportunities for employment, encourage families to
save and invest. Togo must therefore adopt a policy of reducing the rate of
population growth to reduce public debt and paved the way for economic
development
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