| PaulSimonon |
12-01-2004 09:56 PM |
Period 2 Modern World Civilizations.
Aruba is an up-and-coming country in terms of its economy. Although both in debt and with a negative trade balance, Aruba’s economy is gaining strength. Aruba experienced major problems after the terrorist attacks on September 11th, and is recovering. Although a part of the Kingdom of the Netherlands, Aruba’s economy revolves around the U.S., and its economy. Aruba’s economy is thriving, but the government is trying to recover from a low economic period.
Aruba is a democracy, and its main source of income reflects that. Aruba makes most of its money from tertiary business, and a smaller part from secondary. Most Arubans are employed in quaternary jobs, followed by tertiary services, and the secondary manufacture of oil. Because of the American tourists that frequent the area combined with the offshore oil refinery and relatively small population of 71,218 people, most Arubans are employed. Only 0.6% of their population is without work. Arubans make a significant amount of money, with, on average, an income of $28,000, which is only $10,000 less than the United States, and almost ten times the $2,900 of India. The average Aruban makes more than the average person who lives in the United Kingdom, so Aruba is definitely developed.
After the attacks of September 11th, the money in the tourism industry dropped tremendously. Aruba, a country that revolves around American tourists, took a hard hit. The economy went bad, and the government lost money. $12 million over budget and in $285 million in external debt, Aruba is just in its way out of a regression. Aruba’s economy follows the trend of the American economy. The Aruban guilder has maintained a constant exchange rate with the US since 1999, showing that the American economy is an indicator of how the Aruban economy is doing. Aruba does have a higher inflation rate than the United States, which is plausible because of the tourism industry’s trend of high prices. Aruba imports 55.1% of imported goods from the United States. Aruba imports more than $700 million more than it exports. Aruba imports over $420 million of American goods.
The population growth of Aruba is 0.51%, in contrast with the United State’s growth rate of 0.92%. Aruba is growing, but is still very small. The life expectancy for Arubans is longer than that of an American, by more than one year on average. The infant mortality rate is slightly lower than the United States, but there are fewer children born per woman in Aruba. Deaths are also lower in Aruba.
Aruba’s economy is stable, and will remain stable because its economy goes up and down with America’s, which is growing at a slow rate, and is usually very steady. Due to the lack of natural resources, Aruba imports most of its goods. Arubans can afford to do this because they make enough money to be able to import more than they export, which is possible since there are many job opportunities for Arubans, and there are not many citizens unemployed. Aruba’s population is growing along with its economy.
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