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An Explanation Of The Causes Of Economic Crisis In Namibia

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For the past few years, and currently the Namibian government has been experiencing difficulties based on its economy. However that the nation seemed to have a high gross domestic product (GDP) per capital, country still faces economic instability. It practices both capitalism and communism called mixed economy and this may have a negative impact on the economy of Namibia. This essay will explain four probably major causes of economic crisis in the land of the braves.

Poor education and colonialism Due to the Namibian educational background and colonialism ties, this nation has few highly specialized and skilled citizens. This means that majority part of the Namibian productive ratio works on the primary sector. Further results, this country is exporting its most valuable raw materials for further processes. People who can actually work on other industry sectors such as secondary, tertiary, quantitative and so on are foreigners. These are the most people who are living luxury lifestyle leaving many citizens jobless. Most big Namibian businesses are owned by international individuals, so money is being taken away by these people to their country of origin. According to the African Economic Outlook (2008) stated that “The government has embarked on an Education and Training Sector Improvement Program (ETSIP) to address these shortcoming” p.475. In order to do that the government has to lose some amount to strength such program to be active and successfully. Stokke and Widstrand (1973) also stressed that South Africa is also offering difficult international law on Namibia (as on Rhodesia), if South Africa is experiencing economic problems, then it will have a negative consequences on its allies whereby Namibia is included due to politics and colonial ties.

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According to the Contemporary and Social Issue Module (2018) defined corruption as the act of dishonest by an individual in power or in an authorized position. Some officials entrusted with government tasks misuse national resources as self-enrichment become a source of wealth. There many forms of corruption in Namibia such as embezzlement, fraud, and nepotism. All these kind of corruptions lead the national into loss of wealth. Apart from the few mentioned forms of corruption, Immanuel (2018) emphasized on “Chinese nationals over the years have been implicated in wildlife poaching, trafficking as well as tax evasion”. This included some Namibians participation where they are offered bribes. Some theorist said that some government officials are using government transport for their own benefits and therefore spend few hours in their respectable offices. The worse of all is highly paid government officials do not pay tax while those with little wages and salaries pay tax, is this not corruption?

Influence of weather and climate change

Moreover, weather and climate change has a negative impact on the economy of a country. For example if the country does not receive adequate rainfall to support like power station plant, the country has to spend a huge amount of money in exchange with international support. Apart from the power station plant, Shigwedha (2007) stated that Namibia is one of the countries prone to climate change due to its arid environment, recurrent drought and desertification could be due to global warming. Thus the government has to pay and organize awareness campaigns for the public to be acquainted with the negative results in order to be friendly with the environment. Based on agriculture, much money may be spend on irrigation artificial fertilizers and seeds for the future. If animals died due to drought there will be a reduction on exportation of animals and related products. There will be some money spend on to enforce the sustainability of resources.

Occurrence of health diseases

As an individual, everyone knows how expensive the health department is. Therefore, the government as well cannot let its nation dying, it has to respond and ensure maintenance of a health wellness environment. This is not easy and in order to positively respond to this, a huge amount of money is spend on for example ARV pills. In addition to the ARV pills, the nation is facing again the occurrence some diseases such as Malaria, Hepatitis E and unmentioned diseases that need an emergence medical attention. The more the country needs medical attention, the more the government spend on the health equipment and hired international doctors for medical assistance. All these above mentioned challenges are not cheap at all, they require a huge government financial attention. There are some attempts that the government has made in an effort to prevent sexual transmitted diseases (STDs) where it regularly provides condoms and other contraception equipment. This also where the government focus but very expensive.


This essay have outlined about some major causes of economic crisis. Firstly it emphasized on poor education and colonialism resulted in reliance. Then, it further elaborated on corruption on the face of government offices. It also explained on the influence of weather and climate change and the financial implications it has on the government. It also addressed the occurrence of health diseases and the negative impact it has on the government financial coffin. Finally, some theorists said that the Namibia economic crisis is due to the fact that Namibia does not have a law and land because all these seemed to be owned by the colonial masters outside the country.


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