Mali Economy Grows Despite Numerous Setbacks

Mali’s economy grew 7.2 percent in 2014, despite the disruption of a 2012 coup and the threat of Islamist incursion. The growth stems from improvements in public finance and complying with financial market rules.

Mali’s economy grew 7.2 percent in 2014, despite the disruption of a 2012 coup and the threat of Islamist incursion. The growth stems from improvements in public finance and complying with financial market rules.

A variety of other factors is at play as Mali’s economy advances, such as industry gains and good weather. The expansion is positive news, but other data shows the economy will only expand five percent in 2015. Mali may not be able to surpass 2014 growth levels, but some growth is better than no growth at all, especially when considering Mali’s dire situation.

The West African nation remains in desperate poverty, and its economy is heavily reliant on gold and agriculture to remain prosperous. The nation underwent zero growth in 2012 and only 1.7 percent growth in 2013. However, the economy improved in 2013 after a food crisis and the coup, and the government re-established ties with international partners that same year.

Political and Social Chaos

Mali continues to deal with the aftermath of the 2012 coup, when Amadou Sanogo overthrew President Amadou Toumani Toure, a democratically elected leader. The violence gave way to a power grab in the region as the National Movement for the Liberation of Azawad (MNLA) captured parts of the country with the help of Islamist rebels. However, the Islamists grew more powerful and advanced further south, which sparked a French intervention in 2013 to restore democracy to the land.

Mali is also dealing ethnic tension. For instance, the Tuareg (a lighter-skinned ethnic group in the region) and Arab populations of the north feel ostracized by the sub-Saharan population of the south. Further, members of the Tuareg alliance group called the Coordination for the Movements of Azawad stated they would not agree to a peace agreement without recognition of their territory as a separate entity.

Mali’s Management Problems

The International Monetary Fund suspended aid in May of last year when the government spent $40 million on a presidential airplane, including a $200 million agreement with private companies to purchase equipment for the nation’s army. The international community questioned the government’s priorities and budget skills, but officials have made reforms, causing the IMF to lift the ban in December of last year. Mali also contends with widespread poverty, and instability in the north remains a barrier to the country’s economic progress.

Advancements in such areas as safe drinking water and education stalled because of the numerous problems. In addition, the nation has a high fertility rate, increasing poverty and gender inequality, while putting a further strain on government resources. One should not ignore Mali’s advancements, but the nation has a long way to go in transitioning from an emerging market.