For people who have been accompanying the News,
French forces have invaded Mali to drive Islamists extremists out of the
country. Problem is that most of these Islamists are part of a tribe called the
Tuareg, which after establishing itself in the North, started to trade with the
natives. After the French re-established the Malian government rule in those
areas that were once under the Tuareg, they started to flee in fear of
reprisals from other tribes. As a result, food and fuel supplies to some parts
of northern Mali are starting to dry up. Aid Agency Oxfam said prices in Gao
had risen by more than 20% since the French military intervention. Philippe
Conraud, Oxfam country director in Mali, said if the traders did not return
soon, it could become "very difficult for people to get enough food to
feed their families", which makes us think to what extent is the French
intervention really considering Malian internal issues. In the short run, one
could argue that the economy may suffer from the lack of traders but if a
democratic state is established in Mali and it becomes stable enough to get
control over the national integrity, Mali could benefit from better trade
relations with other secular powers, such as France.
It is incredible how war affects the economy of a country. I think that like most invasions, after the job is done the French will stick around for the rehabilitation of Mali. The French economy will also take a bit of a hit because of the sudden increase in military spending.
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