Saturday, October 25, 2014

This is what Ebola is doing to West African economies

http://qz.com/286701/this-is-what-ebola-is-doing-to-west-african-economies/

West African economies are plummeting in all facets of business due to the Ebola outbreak. The West Africa sub-region, the Adjame market in Abidjan, held a prestigious reputation as the largest commercial hub for traders. The market creates a network with neighboring countries to undergo various types of trade but they recently had to close its boarders to Guinea and Liberia due to Ebola. Due to this closing, many bus drivers are unable to transport traders to bordering countries because  the health certification requirements disable such activity resulting in a loss in work.  The article states that the economic outlook is the opportunity cost of for survival in West Africa. Ebola is stagnating international businesses across the board such as airlines. International airlines have banned flights to and from these Ebola affected countries. Due to these bans, CEO’s of multinational firms are calling for a review of these bans as they’re halting trade, diminishing agriculture, and terrifying investors. Liberia and Sierra Leone are currently experiencing a food crisis due to farmers abandoning their farms which is hurting production revenue. Famine Early Warning Systems (FEWS) has released a statement that the virus will soon lead to a food insecurity in the region. It is stated that 200,000 to 250,000 Ebola cases will be recorded by January 2015 and more than 2.7 million people could reach a high risk food security level by March 2015. Africa’s largest football tournament is also an issue due to the outbreak which will result in wounding economic benefits from infrastructural development along with the patronage of goods and services by 40,000 visitors. The cancellation of the tournament would amount to a $154 million revenue loss towards Africa. West Africa being the center of this global health crisis must adjust to these depreciating economic benefits as the sub-region is being cut off to prevent further outbreaks of this deadly virus.

5 comments:

  1. The Ebola virus is crushing these countries' economies. It's quite remarkable how one major event can effect an entire country and others. Due to the weaker nature of the countries, the effect of this virus will have an impact for at least a decade after.

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  2. Air travel is definitely being hit hard by Ebola. Although the U.S. hasn't implemented a travel ban to and from certain African countries, just the fear of contracting Ebola has scared off most travelers. Thus, a travel ban doesn't even need to be implemented. It's interesting that you discussed the Football tournament, because most people don't really consider how much of an effect diseases such as Ebola can have on international sports, tourism, and thus economies as a whole.

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  3. wow. It's crazy to see how one thing can make change a whole economy quickly. Ebola is effecting so many aspects of the economy at the moment but i believe it'll still leave it's effect once it's long gone. Many foreigners won't want to travel to these countries that experienced this ebola crisis in the future.

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  4. It is sad that the disease takes so much out of these economies.I have read somewhere that restricting travel to West Africa is a bad idea and will only lead to spreading the disease more. We need to attack the disease head-on and help the affected people come up with a cure so ebola can't do damage in the future. Small pox was a similar epidemic and we have managed to completely eradicate it so I think, with effort, we will be able to cure ebola so it is no longer a problem. Unfortunately, the people and economies of West Africa will feel these effects for quite a while and hopefully we treat this outbreak as any other natural disaster and help them get back on their feet. In the long run, I'm sure this will be but a blip on the radar, the economies will recover and continue to grow, and ebola will be forgotten (as its outbreak in Central Africa in the '90s has been forgotten).

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  5. It is shocking to see what a virus could do to a economy. And the effects that Ebola outbreak bring to the economy in these affected countries will last probably decades. Hopefully with the help of the U.S. and other countries, the economy loss in these countries will be minimized and recovery time will be shorten as much as possible.

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