Q.4 a. Critically analyze the overall development of Oman during the years 2012
ID: 1113406 • Letter: Q
Question
Q.4 a. Critically analyze the overall development of Oman during the years 2012 to 2017? (5 marks) a. Oman economy remains fairly frail, on the back of OPEC oil production cuts and ailing consumption linked to the government’s austerity drive……budget deficit, public debt ratio….before the year 2014,oil price was very high… Data of GDP in the years required…………..new investments….economic development, social development…policies, programmes, agreements…trade agreements b. Justify the statement “Vision 2020 - a plan for Oman's economic future.” (5 marks) First Five-Year Plan (1976–1980). Vision 2020- a plan for Oman's economic future up to the year 2020 was set, outlining the country's economic and social goals over the next 25 years. The main policies are ; Economic and financial stability, redefine the role of government in the economy, lengthening the private sector participation, diversifying the economic base and sources of national income, globalization of the Omani economy, improving the skills of the Omani workforce and developing human resources. Oil wealth approximates to 90% of government revenues and accounts for more than 50% of GDP; however, the Government has been trying to diversify its reliance on oil sector and edge on a development plan of diversification, tourism, industrialization and privatization. Oman Vision 2020 aims to enhance industrialization within the Sultanate and to encourage the private sector to take a more active role in the economy and generate employment opportunities, both of which are measured as key drivers for growth. During the last decade, the Government has put significant reform programs intended to develop and diversify the economy through increased government spending on key sectors and motivating private investment in sectors such as tourism, agriculture and aquaculture, and manufacturing. Omanisation and development, development of SME’s, in country value strategy, development projects, industry, tourism, taxation…… Shows data that how far Oman has achieved it‘s objectives…
Explanation / Answer
Oman is a small oil-producing country. Its economy depends on oil prices which stays fairly week due to fall in oil prices. Its GDP in 2013 was $78.93 while in 2014 was $81.03 and in 2015 was $69.83. Oman expect its GRP to grow by 2.6% in contrast to 1.6% in 2016. Therefore the future look a little bright. The country fall by four place from rank 62 to 66th in the Global Competitive Report 2016-2017.
As per its vision 2020 a plan which was made as per the instructions of Sultan Qaboobs, Oman plans to achieve economic and finacial stabiltiy, diversifying the economic base and upgrading the skills of its workforce. Apart from oil a high foreign investment which formed nearby 50% of the local capital formation sector due to competitively low tax rates in the area has contributed a lot to Omansuccess. To achieve the vision of 2020 Onam has contributed to development of Duqm area through which 20% of oil passes to Gulf and 35% of oil passes via sea. Oman has also started to build its rail network which link major ports, free zones at Soat, Salahah with GCC network. The country has also given tax exemptions for the expansion on industrail sector. The development of SMEs with ICV strategy has contributed towards sustainable growth and diversification of Onam.
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