2.6 Governmental
Policies
The governmental policies of a country has an important impact
on the economic conditions of the country and the business improvement (Cui,
Quddus, &Mashuga, 2020; Jackson, 2017; Murrey, 2015; Sovacool, 2011;
Utzinger et al., 2005). This is because of the availability of the
infrastructure development that will improve the business performance (Cui et
al., 2020; Dehkissia, Larachi, Rodrigue, &Chornet, 2004; Jackson, 2017;
Murrey, 2015, 2017; Sovacool, 2011; Utzinger et al., 2005). Chad being an
underdeveloped country, has to face a lot of social and developmental
challenges. Research studies (Dehkissia et al., 2004; Irurzun-Lopez et al.,
2016; Murrey, 2017; Orsi et al., 2017) show that because of the developmental
challenges faced by the country, they had a high poverty rate. This also
increased the deficiency of the infrastructure development, as the funds could
not be used on the developmental projects. But after the oil discovery and
extraction process, the need to have a good infrastructure increased (Cui et
al., 2020; Jackson, 2017; Murrey, 2015; Sovacool, 2011; Utzinger et al., 2005).
The lack of development and infrastructure is also attributed to the
socio-political instability of the country (Cui et al., 2020; Jackson, 2017;
Utzinger et al., 2005). Therefore, after the year 2010, the peaceful era for
the Chadians began and legislative government came in position to take actions.
The government took several actions to improve the business
environment of the country and also to promote the private sectors (Dehkissia
et al., 2004; Irurzun-Lopez et al., 2016; Orsi et al., 2017). Joining of the
ECCAS and CEMAC economic communities was also an attempt taken by the
government for the trade improvement of the country. Another major drawback in
the developmental infrastructure of the country was the lack of roads that will
be used for transportation purposes (Dehkissia et al., 2004; IrurzunLopez et
al., 2016; Orsi et al., 2017). The gas pipeline project initiated to benefit
from the full potential of the petroleum reservoirs of the country also worked
on the construction of around 500 km of the roads (Cui et al., 2020; Dehkissia
et al., 2004; Jackson, 2017; Murrey, 2015, 2017; Sovacool, 2011; Utzinger et
al., 2005). The implementation of these strategies depends upon the different
factors which include the cofinancing and partnerships between the investors
and the governmental management of the country (Dehkissia et al., 2004;
Irurzun-Lopez et al., 2016; Orsi et al., 2017).
2.6.1Level of inflation now
and before oil discovery
The inflation rate of the country depends mainly on the
agricultural commodities. According to the research studies (Baninla et al.,
2020; Chang et al., 2014; Jerven, 2014; R. Mahmood & Jia, 2019), in 2012,
the inflation rate of the country was 7.7 percent and this was because of the
extreme climatic conditions and environmental factors, the agricultural sector
got effected. Thereafter, the inflation rate decreased to 0.4 percent in the
year 2013 (trading economics). After that, the inflation rate increased to 1.7
percent in the year 2014. According to the research studies, this number
increased to 3 percent in 2015 because of the security conditions in the
country and because of the disturbance of the supply routes (trading
economics).
After the exploration of oil and its extraction, the inflation
rate of the country reduced.
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