How do u think the economists of my country can overcome our economic problems?

Question

My country is a small island state in the Indian Ocean called Seychelles. "We " are reported by Wikipedia, to be living a lifestyle beyond our means with an escalating budget deficit, and highly indebted to International Banks. But I understand that we have a govt which generously finance many social services to keep it free for the citizens. It is also a tax haven and attractive to direct investments. We are also described as the richest African country based on exchange rate and GDP.

Even if the living standard is higher compared to Africa, the people are frustrated with the macro-economic problems eg; tight govt control over foreign exchange. Even if people afford to go on holiday they cannot exchange the local currency for as much as they would like to spend overseas.
The country thrives on a tourism industry and fishing secondly. FYI, it is former socialist/communism state.
Are there any economics majors to give their oppinion and solutions for this?

There are other problems linked to to the foreign exchange restrictions. As the time pass, the quality and varieties of food imports gradually decline. Private busineses cannot finance their tradeimports and this gives the govt the monopoly on most businesses. Entrepreneurs cannot maintain their equipments,or sustain supply of raw materials because these are imported and bought with foreign exchange. In a sense, Im saying that the economy should be a free market, but probably we are to immature to handle the consequences and with a central control, the govt sanctions hazardous schemes to our environment-which is the background for our tourism industry.

Answer 1

Unless corporate America and large businesseses quit
focusing so much on making money by sending goods
and jobs overseas, and unless consumers begin buying American-made products instead of those made overseas by schoolgirls, our economy will never straighten out.

Overseas trading and commerce, exporting and importing, is a good thing as long as it is on a limited scale. But when the
average worker can't get a job because of it, then we've gone
too far. And if the American worker can't get a job, there is no
money to be spent. And if when there is no money to be spent,
the result is wealthy CEO's and poor.

The Economists can't do anything. It rests with the will of
the people.....and depends on unselfishness.

Answer 2

I was going to say no, but hey look at Hong Kong, Singapore and Bermuda and Dubai. Island nations has an advantage. Its small enough to be easily controlled. Large nations are slow and have to many groups pushing at two many directions. That is why small nation rank generally higher in various surveys. You need to first stop worrying about raw materials. Change your country into a banking center. Make it advantageous for large companies to move with low to no taxes. Spend as much as possible and borrow to improve your ports to handle large quanitites of container ships. Put state of the art Radiation detectors. In view of terrorist attacks, Some western nations want a third party to screen cargo before its shipped to make sure that its not containing something undesired. You can try to get these nations to help pay for the port facilities.

Answer 3

If the exchange rate for your currency is your only complaint than you've got some good people in charge. Try living in a country where your government is banking on the vote from illegal immigrants to carry them through the next election.

I am glad to see you are out of socialism because USA is going that way. Our doors are open to those that see nope hope in fixing their own government.

Sounds like your country is a good investment.

Answer 4

Sounds to me like you need some freedom.

Answer 5

IF THE POTATO RATES/KG ARE NOT CHANGED FOR ATLEAST AN YEAR...............ASSUME THE ECONOMY IS GOING FINE.