**4.1 Status quo of inequalities**

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

poverty within the nation. These are formally known as the *triple challenge* [2].

Before the in-depth explanation of the Namibian culture and economy, the reader finds a brief summary of the main indicators, in order to understand the

As a project of the *United Nations Education, Scientific and Cultural Organization* (*UNESCO*), CDIS has been established in 2009 with the help of the Spanish government. With the contribution of more than 300 partners, the aim is to promote and to protect the diversity of cultural expressions globally. It is a multimethodological tool that measures and visualizes data in seven interrelated policy dimensions, including 22 indicators. Especially, the following dimensions that will be used in this chapter, in order to achieve fact-based assessments, are *economy, education, gender equality, social participation, and heritage.* This multidimensional instrument is only one project of the *UNESCO*, accessing international comparisons among nations and their facts of development. *Culture for Development Indicator Suite* gives an insight into the enrolment of culture in a nation's development. Additional results are indicating the potential of domestic sectors and exhibit obstacles hindering full potential. Namibia's government recognized the key factor of culture in its

Between 1967 and 1973, the Dutch psychologist *Geert Hofstede* developed the origins of this model while conducting an international survey about national values for *International Business Machines* (*IBM*). He defined six dimensions that society needs in order to organize itself. A further purpose of *Hofstede's six dimension model* is to understand the contribution of national culture in habits and values in a professional environment. Global data manifest into six cultural dimensions, which enable comparisons among 76 countries, while Namibia is one of them. Especially the following three dimensions will be discussed within this chapter: *power distance, masculinity vs. femininity*, and *long-term orientation*. Those dimensions can be used most effectively for the clarification of cultural and economic correlations [22].

The sub-Saharan African country Namibia is a prime example of a country with diverse and extraordinary nature and culture but one that must overcome challenges. As a result of numerous drastic events in the past and the country's recent national independence, Namibia's government is facing several cultural and economic difficulties. Every 4–6 years a new *National Development Plan* (*NPD*) appears from the domestic government with different focuses. At this point of time, the fifth *NPD* has been introduced, describing the main goal in working together toward prosperity [1]. Similar goals are pursued also by the UNO: The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice. The goals interconnect, and in order to leave no one behind, it is important that each goal and target by 2030 are achieved. Similar goals have been recognized also by the *World Bank* in 2019, stating that Namibia is facing three major long-term objectives: the combatting of inequality, unemployment, and

**3. Introduction to empirical part: the case of Namibia**

**46**

**3.1 Explanation**

significance of such, in the following sections.

*3.1.2 Hofstede six-dimension model*

*3.1.1 Culture for Development Indicator Suite (CDIS)*

development process and introduced *CDIS* in November 2011 [21].

Namibia is known worldwide as having tremendous inequality conditions, which can be traced back to their past. The nation's history still has an effect on their individual degree of trade, governance, and cultural factors [23].

These unequal conditions are affecting the 13 regions of the country in gender, education, health, wages, infrastructure, and a plethora of other aspects. When analyzing Hofstede's six dimension model, Namibia's ranking within the power distance dimension highlights these issues. It monitors to which extent power is distributed and how citizens of the analyzed country are satisfied with the distribution. Namibia currently reaches 65 out of 100, which indicates a hierarchical society with high inequalities [22].

## *4.1.1 Societal segmentation*

The Republic of Namibia has witnessed turbulent historic times, including colonization by several foreign powers, genocide committed by the German's, and foreign administration by South Africa.

During the nineteenth century, Victorian Britain and Germany were the major players involved in the nation's colonialization [24]. In the early twentieth century, Namibia experienced the nation's first genocide. It was committed by the German general *Lothar von Trotha*, which killed more than 75,000 African primary residents and destroyed their tribal structures. Particularly the ethnic groups of Herero and Nama suffered the most from this event, which led to losses of approximately 80% (Herero) and 50% (Nama) in their tribal size [25, 26].

The previous influence of foreign policies in the twentieth century, e.g., the racial segregation formally known as apartheid, continues to impact the nation to this very day. Such events influenced the population in terms of behavior, structures, and their growth. However, these historic incidents have evoked societal inequalities [24, 27].

Although there is a lack of historical content from generation to generation, former leader of the ethnic group Nama has written controversially in his dagboek (*diary, English translation*): *"… no person, nor his money comes short in our way of living*" [24]. According to additional diary entries, it is liable that there have not been major inequalities in at least one of the ethnic groups before 1905 [24].

The national independence obtained in 1990 was an important first step out of several dependencies toward an emerging national and societal self-perception.

Nevertheless, Namibia suffered from a fragmented society in post-independent times: a gap between ethnic groups of the poor and rich arose. This created political and economic instability [28].

A new constitution was written with several different focuses, but the most intriguing was the empowerment of women and gender equality. It states that there should not be any discrimination because of sex [21].

The nation's second president, *Hifikepunye Pohamba*, also made these issues to one of his major duties in his period from 2005 to 2015, as well as several National Development Plans that followed [27].

According to data from the *World Population Review*, Namibia exhibits nine different ethnic groups. The largest ones are the Ovambo with 49.8%, followed by Kavango (9.3%), Herero (7.5%), Damara (7.5%), Whites (6.4%), Nama (4.8%), Caprivian (3.7%), San (2.9%), and Basters (2.5%). Whites are mainly consisting out of Portuguese, British, and German origin. The remaining 5.6% are assigned to a group of mixed races [29].

Currently, 65% of Namibia's population are living in communal areas owned by the government, which are covering only 40% of the nation. Such is attributable to the event of caging ethnic groups into rural areas in the mid-twentieth century, by the white population [27, 30].

Since their national independence, there has been a lot of resettlement within the nation. Unfortunately, inequalities are still present. An example is the distribution and access to information differentiate among inhabitants. Namibian society records high inequalities in information, information in technology such as TV and radio, and in financial facilities and services.

Furthermore, these issues also occur in terms of natural resources, e.g., water and fish stock [31]. According to the *World Population* Review, only 91% of Namibia's population has access to clean drinking water, while 65% is struggling to gain access to appropriate sanitation facilities [29].

One reason for these inequalities is the ongoing exclusive access to private farmlands by the wealthier population. In the long run, this will lead to even higher inequalities as well as challenges among demographics, environment, land distribution, and enjoyment of cultural rights [21, 28].

With a *Gini coefficient* of 61 out of 100—an indicator of a nation's distribution of income, economic inequality, and wealth distribution—it again gets determined Namibia is facing high inequalities [32]. The authors *Humavindu* and *Stage* strengthen this statement, by speaking distinctly about one of the highest unequal distributions of income on the continent of Africa. Typically, the rural areas are suffering from lower income, in comparison to cities [32].

A controversial impression of Namibia's society is indicated by *Hofstede's masculinity vs. femininity dimension*. Such provides information about the internal societal interaction. Namibia indicates with its result—40 out of 100—to be a rather feminine society. This is reflected in habits such as caring about each other, solidarity, and resolution of conflicts by negotiation. According to Hofstede, social status and inequalities should be of secondary importance which contradicts the situation in Namibia [22].

#### *4.1.2 Gender inequalities*

Another determining index is the *Gender Inequality Index* (*GII*), which measures gender-based inequalities out of the following three dimensions: reproductive health, empowerment, and economic development. The nation achieved position 115 out of 160, which confirms gender inequality as a major problem [33, 34].

*CDIS* is also observing gender inequality in one of their dimensions. According to their expendable result in the *Gender Equality Objective Outputs* indicator—0.84 out of 1—the governmental efforts are being reflected [21].

According to *Ferrant's* article "How do gender inequalities hinder development?," gender roles and gender inequalities emerge out of culture, religion, and agricultural practices [23].

#### *4.1.2.1 Gender roles*

Confirmable to the issue of gender inequality is the description of gender roles within the nation. There are minor differences in describing their functions among the nine different ethnic groups, but this is summarized as men enjoy higher status in Namibian society than women. When separating into core tasks and functions, men are known as the pillar for family and house. Their characterization is strong and tough and includes tasks, e.g., the protection of their families, responsibility for providing food and income, and livestock farming.

**49**

*Namibia's Triple Challenge and Its Economic Development*

On the other hand, women are seen as physically weak and a dispensable tool for men. Women would not be able to survive without men. Interestingly, some of the ethnic groups are connecting women as the mother of the nation but still giving them a secondary legal status by describing them as a second-class citizen or as the

Women's suppression leads to governmental recognition. In Namibia's third

These monitored gender roles are leading to the disqualification of women in society. This is visible in their limited access to assets, resources, technology, educa-

Especially female-headed households are worse off. The usual case describes the eldest son as a decision-maker. However, these outcomes are also affecting the careers of female habitants. For instance, when applying for a profession, women

Alternatively, a household including male and female often leads to domestic abuse victims. As reported in the case study of *Angula*, the violence against women and children is still increasing in Namibia [31]. Additional evidence is given by the *Perception of Gender Indicator* of *CDIS*, stating that 38% of Namibian population thinks beating wives is fair enough when she, for instance, argues, burns the food, or denies sexual activity [21]. Outreaching, such behavior is leading to absenteeism of women, lower productivity, and collateral reduction in women's wages. Furthermore, it creates an inferiority cycle for women in Namibian society and

As mentioned above, gender inequalities do influence social and economic development. *Ferrant* confirms this statement by announcing that gender inequalities are internationally leading to a decrease of 3.4% in income per capita [23]. The empowerment and increasing wages of women are leading to a lower fertility rate and more consumption in nutrition, instead of alcohol and cigarettes [28]. That is also confirmed by growth literature, explaining that human and physical capital are

Another example monitored in *Ferrant's* article describes the impact of an increased enrolment of women. If sub-Saharan African females have the same status than Western Europe's female, the mortality rate for children—less than 5 years—would decrease by 25% [23]. Namibia's current mortality rate for children

Additionally, according to studies from *Ainsworth*, *Fransen,* and *Over* in 1998, there is a positive correlation between gender inequality and health, especially AIDS/HIV. The HIV infection rate in cities with higher gender gaps increases stronger compared to low gender gap cities [36]. Latest results from *UNAIDS* are displaying Namibia's situation. There has been an estimated number of 200,000 people living with HIV and alarming 7400 new infections in the year of 2017. While the number of people living with HIV is slightly increasing, the infection rate in

have fewer chances to succeed when competing against man [31].

*National Development Plan*, women are empowered to play a full cultural, social, and economic role. According to Ferrant, gender equality is leading to an increasing capita per income which results in long-term advantages for

*DOI: http://dx.doi.org/10.5772/intechopen.88638*

property of men [31].

national economies [1, 23].

*4.1.2.2 Enrolment and wages*

tion, and employment.

economy [23].

*4.1.3 Economic development and healthcare*

the main drivers for economic growth [23].

previous years has decreased [37].

under 5 years is 44.2 deaths per 1000 live births [35].

*Namibia's Triple Challenge and Its Economic Development DOI: http://dx.doi.org/10.5772/intechopen.88638*

On the other hand, women are seen as physically weak and a dispensable tool for men. Women would not be able to survive without men. Interestingly, some of the ethnic groups are connecting women as the mother of the nation but still giving them a secondary legal status by describing them as a second-class citizen or as the property of men [31].

Women's suppression leads to governmental recognition. In Namibia's third *National Development Plan*, women are empowered to play a full cultural, social, and economic role. According to Ferrant, gender equality is leading to an increasing capita per income which results in long-term advantages for national economies [1, 23].

#### *4.1.2.2 Enrolment and wages*

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

white population [27, 30].

*4.1.2 Gender inequalities*

tural practices [23].

*4.1.2.1 Gender roles*

radio, and in financial facilities and services.

gain access to appropriate sanitation facilities [29].

tion, and enjoyment of cultural rights [21, 28].

suffering from lower income, in comparison to cities [32].

out of 1—the governmental efforts are being reflected [21].

providing food and income, and livestock farming.

Currently, 65% of Namibia's population are living in communal areas owned by the government, which are covering only 40% of the nation. Such is attributable to the event of caging ethnic groups into rural areas in the mid-twentieth century, by the

Since their national independence, there has been a lot of resettlement within the nation. Unfortunately, inequalities are still present. An example is the distribution and access to information differentiate among inhabitants. Namibian society records high inequalities in information, information in technology such as TV and

Furthermore, these issues also occur in terms of natural resources, e.g., water

Namibia's population has access to clean drinking water, while 65% is struggling to

One reason for these inequalities is the ongoing exclusive access to private farmlands by the wealthier population. In the long run, this will lead to even higher inequalities as well as challenges among demographics, environment, land distribu-

With a *Gini coefficient* of 61 out of 100—an indicator of a nation's distribution

A controversial impression of Namibia's society is indicated by *Hofstede's masculinity vs. femininity dimension*. Such provides information about the internal societal interaction. Namibia indicates with its result—40 out of 100—to be a rather feminine society. This is reflected in habits such as caring about each other, solidarity, and resolution of conflicts by negotiation. According to Hofstede, social status and inequalities should

Another determining index is the *Gender Inequality Index* (*GII*), which measures

*CDIS* is also observing gender inequality in one of their dimensions. According to their expendable result in the *Gender Equality Objective Outputs* indicator—0.84

According to *Ferrant's* article "How do gender inequalities hinder development?," gender roles and gender inequalities emerge out of culture, religion, and agricul-

Confirmable to the issue of gender inequality is the description of gender roles within the nation. There are minor differences in describing their functions among the nine different ethnic groups, but this is summarized as men enjoy higher status in Namibian society than women. When separating into core tasks and functions, men are known as the pillar for family and house. Their characterization is strong and tough and includes tasks, e.g., the protection of their families, responsibility for

of income, economic inequality, and wealth distribution—it again gets determined Namibia is facing high inequalities [32]. The authors *Humavindu* and *Stage* strengthen this statement, by speaking distinctly about one of the highest unequal distributions of income on the continent of Africa. Typically, the rural areas are

be of secondary importance which contradicts the situation in Namibia [22].

gender-based inequalities out of the following three dimensions: reproductive health, empowerment, and economic development. The nation achieved position 115 out of 160, which confirms gender inequality as a major problem [33, 34].

and fish stock [31]. According to the *World Population* Review, only 91% of

**48**

These monitored gender roles are leading to the disqualification of women in society. This is visible in their limited access to assets, resources, technology, education, and employment.

Especially female-headed households are worse off. The usual case describes the eldest son as a decision-maker. However, these outcomes are also affecting the careers of female habitants. For instance, when applying for a profession, women have fewer chances to succeed when competing against man [31].

Alternatively, a household including male and female often leads to domestic abuse victims. As reported in the case study of *Angula*, the violence against women and children is still increasing in Namibia [31]. Additional evidence is given by the *Perception of Gender Indicator* of *CDIS*, stating that 38% of Namibian population thinks beating wives is fair enough when she, for instance, argues, burns the food, or denies sexual activity [21]. Outreaching, such behavior is leading to absenteeism of women, lower productivity, and collateral reduction in women's wages. Furthermore, it creates an inferiority cycle for women in Namibian society and economy [23].

#### *4.1.3 Economic development and healthcare*

As mentioned above, gender inequalities do influence social and economic development. *Ferrant* confirms this statement by announcing that gender inequalities are internationally leading to a decrease of 3.4% in income per capita [23]. The empowerment and increasing wages of women are leading to a lower fertility rate and more consumption in nutrition, instead of alcohol and cigarettes [28]. That is also confirmed by growth literature, explaining that human and physical capital are the main drivers for economic growth [23].

Another example monitored in *Ferrant's* article describes the impact of an increased enrolment of women. If sub-Saharan African females have the same status than Western Europe's female, the mortality rate for children—less than 5 years—would decrease by 25% [23]. Namibia's current mortality rate for children under 5 years is 44.2 deaths per 1000 live births [35].

Additionally, according to studies from *Ainsworth*, *Fransen,* and *Over* in 1998, there is a positive correlation between gender inequality and health, especially AIDS/HIV. The HIV infection rate in cities with higher gender gaps increases stronger compared to low gender gap cities [36]. Latest results from *UNAIDS* are displaying Namibia's situation. There has been an estimated number of 200,000 people living with HIV and alarming 7400 new infections in the year of 2017. While the number of people living with HIV is slightly increasing, the infection rate in previous years has decreased [37].

#### *4.1.4 Education*

Often the foundation for economic and cultural inequalities emerges out of a weakened education sector. In the case of Namibia, a controversial but still similar situation is present.

In previous times, the Namibian population suffered from a low level of education and unskilled workers. The government recognized this issue and destined one-fourth of its annual budget for the national education system [28]. Likewise, education became part of their new constitution in post-independent times. It reports the access and right to education should be given to all citizens [21]. These various governmental efforts have been—partly—prosperous.

The second dimension of *CDIS, Education*, displays Namibia's adolescents—aged from 17 to 22—contributing in schooling by 8.4 years on average, while only 9% of them are showing less than 4 years of education [21]. The government succeeded partly because still the access and the contribution between male and female differ. Namibian women are still worse off in education than of their male counterparts [23].

*Ferrant* emphasizes that the level of corruption and nepotism is decreasing if the contribution of women in education increases. Women are simply less affected by such behavior compared to men [23]. Less corruption and nepotism will also influence the well-being of the next generations, the level and quality of human capital, and the nation's economic growth in a positive way, as already stated under Section 4 [38].

Even Namibia's high adolescence birth rate—75% out of 1000 women aged from 15 to 19 in 2016—is indicating a minor education status within the nation [32]. Such behavior influences participation in the labor market, as well as the health situation of adolescent Namibians [21].

Another example of *Klaasen*, *Gatti*, and *Dollar* is strengthening these statements. If a society has the same number of males and females participating in education but distributes scarce knowledge unequal, the outcome will represent more educated men that are less able than women. Furthermore, a gap in education leads to an unequal distribution of income and results in an even higher gender gap [38].

#### *4.1.5 Governmental recognition of inequalities*

There has already been recognition among several inequality issues by the Namibian government [31]. Working against them is their objective. But how is it possible to escape the vicious cycle of inequalities or at least to raise the equality standard?

Namibian governmental efforts are reflected in the contribution of several programs and by introducing new policies. Policies, for instance, to strengthen the perception of gender equalities, education, and culture and arts, have been designed [21]. The government of Namibia is also revising their *National Development Plans* every 4–6 years. A focus on crucial equality and cultural aspects has been made by the governmental third *National Development Plan* [1]. Namibia, with these actions, is trying to bridge the gap between postapartheid and post-independent times. It hopes to get the nation on a reliable track.

As indicated in *CDIS education* and *social participation* dimensions, further efforts should be made toward the thinking of Namibian citizens [1]. Due to the horrific events in former times, e.g., decades of occupation and genocide, the Namibian majority is not able to trust each other or to respect other cultures. Mostly there is low recognition of significant benefits emerging out of their multicultural society [1]. If changing these societal perspectives to preferable ones, the equality conditions will be favored in Namibia. Such will lead to greater achievement of sustainable cultural and economic development, as described in *Krugmann's* article [28].

**51**

*Namibia's Triple Challenge and Its Economic Development*

The second out of the *Triple Three* governmental objectives deals with the diminishment of Namibia's unemployment rate [2]. Due to the fact that women and the young population are affected, it is interlinked to the previous topic of inequality. According to data from *Trading Economics*, the unemployment rate in Namibia has increased from 27.9–34% in the years of 2014–2016. Current numbers monitor a minor decrease to 33.4% in 2018, which is equivalent to 364,411 unemployed persons. The youth unemployment rate of 46.1% in 2018 has experienced an all-time high [32]. Adolescents between the ages of 20 and 24 are majorly affected [39]. Compared to the previous numbers, the female unemployment rate is slightly lower. Latest data from 2018 monitor the female unemployment rate achieving

Yet, women are not the only ones suffering in the Namibian labor market. Also, certain ethnic groups experience disadvantages in the job market due to historic events, cultural habits, and different values. For instance, members of the ethnic group San, which are mainly working in the service sector, are the first ones to be fired, because of their nomadic behavior. *Sylvain* describes them as decentralized workers in western clothing and justifies their manners with the statement: "*You can take the Bushmen out of the bush, but you can't take the bush out of the Bushman*" [30]. In addition, there is the presence of dealing with unemployment: Once Namibians are unemployed, their majority is seeking for assistance of families or

An additional observation made by the *Namibian Labor Survey 2016* states that the majority of unemployed citizens stays without employment for at least 1 year. This indicates whether there is a low amount of available jobs, labor institutions need to improve, or inhabitants are indolent when it comes to finding new employment [39]. There are different reasons for the current situation of Namibia. First, it is explained by the historic labor movements. At the beginning of the twentieth century, Namibia was a cattle-based society, and wealth was equivalent to a high stock in cattle. However, all of these growing herds needed to be managed. This evoked a labor migration which resulted in a higher population and later in less labor due to

Second, *the Culture for Development Indicator Suite* describes Namibia's tiny industry and the resulting low level of production as another reason for the present situation. The *World Bank* announces Namibians' major source of income as a third reason. The minority of Namibia's population is relying on income from employment, while the majority banks on subsidence farming, pensions, and grants [21]. One aim of the Namibian government is to promote the domestic labor market, especially for women. Their goal is to achieve a rate of 50% of female in decisionmaking positions, while, e.g., currently only 8% of them are working as regional councils. This rate can be traced back to the minor degree of access to the labor market, as well as the disadvantageous situation for women when competing

The *Namibia Labour Force Survey 2016* states that the unemployment rate of a nation is directly linked to its economic growth. It is explained as follows: a decreasing unemployment rate, as it is hardly visible in Namibia, is a sign for economic growth. An increasing rate, as there are in the unemployment rates of women and youth, indicates an economy that is not able to absorb the people in working age [39]. Though to the slow but almost steady economic growth (described under Section 12) which results in job creation then, there is an improvement in sight [2]. Another correlation is being made between unemployment and poverty, which arose in post-independent times and will be discussed in the following section.

24.7% [2]. This is due to a high informal market within the nation [21].

*DOI: http://dx.doi.org/10.5772/intechopen.88638*

friends, in order to get a new job.

changing professions [40].

against men [21].

**4.2 Unemployment**

### **4.2 Unemployment**

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

Often the foundation for economic and cultural inequalities emerges out of a weakened education sector. In the case of Namibia, a controversial but still similar

In previous times, the Namibian population suffered from a low level of education and unskilled workers. The government recognized this issue and destined one-fourth of its annual budget for the national education system [28]. Likewise, education became part of their new constitution in post-independent times. It reports the access and right to education should be given to all citizens [21]. These

The second dimension of *CDIS, Education*, displays Namibia's adolescents—aged from 17 to 22—contributing in schooling by 8.4 years on average, while only 9% of them are showing less than 4 years of education [21]. The government succeeded partly because still the access and the contribution between male and female differ. Namibian women are still worse off in education than of their male counterparts [23]. *Ferrant* emphasizes that the level of corruption and nepotism is decreasing if the contribution of women in education increases. Women are simply less affected by such behavior compared to men [23]. Less corruption and nepotism will also influence the well-being of the next generations, the level and quality of human capital, and the nation's economic growth in a positive way, as already stated under Section 4 [38].

Even Namibia's high adolescence birth rate—75% out of 1000 women aged from 15 to 19 in 2016—is indicating a minor education status within the nation [32]. Such behavior influences participation in the labor market, as well as the health situation

Another example of *Klaasen*, *Gatti*, and *Dollar* is strengthening these statements. If a society has the same number of males and females participating in education but distributes scarce knowledge unequal, the outcome will represent more educated men that are less able than women. Furthermore, a gap in education leads to an unequal distribution of income and results in an even higher gender gap [38].

There has already been recognition among several inequality issues by the Namibian government [31]. Working against them is their objective. But how is it possible to escape the vicious cycle of inequalities or at least to raise the equality

As indicated in *CDIS education* and *social participation* dimensions, further efforts should be made toward the thinking of Namibian citizens [1]. Due to the horrific events in former times, e.g., decades of occupation and genocide, the Namibian majority is not able to trust each other or to respect other cultures. Mostly there is low recognition of significant benefits emerging out of their multicultural society [1]. If changing these societal perspectives to preferable ones, the equality conditions will be favored in Namibia. Such will lead to greater achievement of sustainable cultural and economic development, as described in *Krugmann's* article [28].

Namibian governmental efforts are reflected in the contribution of several programs and by introducing new policies. Policies, for instance, to strengthen the perception of gender equalities, education, and culture and arts, have been designed [21]. The government of Namibia is also revising their *National Development Plans* every 4–6 years. A focus on crucial equality and cultural aspects has been made by the governmental third *National Development Plan* [1]. Namibia, with these actions, is trying to bridge the gap between postapartheid and post-independent times. It

various governmental efforts have been—partly—prosperous.

*4.1.4 Education*

situation is present.

of adolescent Namibians [21].

*4.1.5 Governmental recognition of inequalities*

hopes to get the nation on a reliable track.

**50**

standard?

The second out of the *Triple Three* governmental objectives deals with the diminishment of Namibia's unemployment rate [2]. Due to the fact that women and the young population are affected, it is interlinked to the previous topic of inequality.

According to data from *Trading Economics*, the unemployment rate in Namibia has increased from 27.9–34% in the years of 2014–2016. Current numbers monitor a minor decrease to 33.4% in 2018, which is equivalent to 364,411 unemployed persons. The youth unemployment rate of 46.1% in 2018 has experienced an all-time high [32]. Adolescents between the ages of 20 and 24 are majorly affected [39].

Compared to the previous numbers, the female unemployment rate is slightly lower. Latest data from 2018 monitor the female unemployment rate achieving 24.7% [2]. This is due to a high informal market within the nation [21].

Yet, women are not the only ones suffering in the Namibian labor market. Also, certain ethnic groups experience disadvantages in the job market due to historic events, cultural habits, and different values. For instance, members of the ethnic group San, which are mainly working in the service sector, are the first ones to be fired, because of their nomadic behavior. *Sylvain* describes them as decentralized workers in western clothing and justifies their manners with the statement: "*You can take the Bushmen out of the bush, but you can't take the bush out of the Bushman*" [30].

In addition, there is the presence of dealing with unemployment: Once Namibians are unemployed, their majority is seeking for assistance of families or friends, in order to get a new job.

An additional observation made by the *Namibian Labor Survey 2016* states that the majority of unemployed citizens stays without employment for at least 1 year. This indicates whether there is a low amount of available jobs, labor institutions need to improve, or inhabitants are indolent when it comes to finding new employment [39].

There are different reasons for the current situation of Namibia. First, it is explained by the historic labor movements. At the beginning of the twentieth century, Namibia was a cattle-based society, and wealth was equivalent to a high stock in cattle. However, all of these growing herds needed to be managed. This evoked a labor migration which resulted in a higher population and later in less labor due to changing professions [40].

Second, *the Culture for Development Indicator Suite* describes Namibia's tiny industry and the resulting low level of production as another reason for the present situation. The *World Bank* announces Namibians' major source of income as a third reason. The minority of Namibia's population is relying on income from employment, while the majority banks on subsidence farming, pensions, and grants [21].

One aim of the Namibian government is to promote the domestic labor market, especially for women. Their goal is to achieve a rate of 50% of female in decisionmaking positions, while, e.g., currently only 8% of them are working as regional councils. This rate can be traced back to the minor degree of access to the labor market, as well as the disadvantageous situation for women when competing against men [21].

The *Namibia Labour Force Survey 2016* states that the unemployment rate of a nation is directly linked to its economic growth. It is explained as follows: a decreasing unemployment rate, as it is hardly visible in Namibia, is a sign for economic growth. An increasing rate, as there are in the unemployment rates of women and youth, indicates an economy that is not able to absorb the people in working age [39]. Though to the slow but almost steady economic growth (described under Section 12) which results in job creation then, there is an improvement in sight [2].

Another correlation is being made between unemployment and poverty, which arose in post-independent times and will be discussed in the following section.

#### **4.3 Poverty**

The third aspect of Namibian governmental *triple challenge* is the fight against poverty. Poverty goes hand in hand with inequality and especially with unemployment and thereby arises the difficulty of monitoring the aspects of poverty isolated.

Namibia is reflecting poverty particularly in female-headed households, extended families, inhabitants with a low level of education, and farmworkers. When separating the occurrence of poverty into regions and economic sectors, it holds true for the rural communal land and the informal urban sector [2]. Nevertheless, which leverage yields out for Namibian inhabitants?

According to authors *Humavindu* and *Stage* and data from the *World Bank*, most of Namibians had to live with less than 2 USD per day in 2018 [2]. Even worse is the fact that the majority has to deal with an annual income of less than 100 USD [33, 34]. Plenty of inhabitants call upon urbanization, in the hope of better access to resources and professions, but mostly end up in worse conditions or the black market. Namibia's cities are currently recording an annual population growth of around 5–6% [28].

Wealth and income are distributed by far unequal, as already indicated with the *Gini coefficient* under Section 3. This also clarifies why the *World Bank* classified the nation in 2019 as an upper-middle-income nation while having tremendous poverty issues [2].

In terms of the *Human Development Index* (*HDI*), which focuses on people and their capabilities by analyzing data from three different dimensions—long and healthy life, being knowledgeable, and decent standard of living—Namibia ranked itself in position 129 out of 189 countries. This refers to a medium human development, which is surprisingly higher than the average in sub-Saharan Africa [33, 34].

Another indication strengthening the country's poverty is the small degree of domestic industry, as previously described. It causes minor economic development which results in negative outputs for domestic education, employment, and especially the nation's poverty.

Again, the contribution of history influences the current situation. Former drastic events, as already mentioned under Section 4, are responsible for the dominant degree of poverty in Namibia. Decades of suppression, exploitation, and slaughtering native population has long-lasting effects on their self-perception. Those effects are staying within the Namibian population and do not erase with their national independence or any other progressive event. It takes time to change the social and economic thinking toward favoring the nation and a self-decision-making concept. Namibian population is currently still suffering from former times. *CDIS* describes that such is especially visible in the gap of tolerating, trusting, and accepting other cultures [21].

Health and nutrition are also influencing the degree of poverty within Namibia. A constant nationwide supply leads to food security, agricultural production, and higher wages, which in return has a positive impact on the degree of poverty [28].

Furthermore, the "western economic" long-term thinking is missing. Namibia scored low in *Hofstede's long-term orientation dimension*—35 out of 100—which reflects a normative culture that thinks suspiciously among societal changes and that focuses on accomplishing quick results [22]. Namibian governmental efforts would be wasted if their inhabitants refuse to change. An example of the majorly nonexisting long-term thinking is described by *Sylvain*. In her article, she characterizes the San—besides their unfavorable economic situation—as spending all their wages on payday [30].

Efforts against poverty have been made by the Namibian government by doing it carefully and always in regard to the possible side effects, e.g., exploitation of natural resources. In compliance with *Krugmann's* article, the domestic government is working against poverty in direct and indirect ways. The direct way is tackling health, education,

**53**

Union [42].

**5.2 Social accounting matrix**

*Namibia's Triple Challenge and Its Economic Development*

housing, pension, and resources, while the indirect form is dealing with topics as investment promotion and taxes [28]. Hence, Namibia was able to succeed by reducing the national poverty line from 69.3% to 17.4% in the years of 1993–2016, altogether in accordance with an upward trend and stability in their economy and politics [2].

objective that wants to be achieved by the Namibian government [28].

Besides the *Triple Three* challenge, sustainable economic growth is an additional

In accordance with the low level of industrial activities, Namibia has a relatively small economy that gets reflected in the nation's *Gross Domestic Product* (*GDP*). *The World Bank* indicates an increasing *GDP* of 14,522 billion USD in 2018, which is

Namibians have a high level of consumption of foreign goods, services, and activities. This has developed a domestic economy that is highly dependent on imports and exports [2]. Hence, Namibia's economy has reached a high degree of openness, which is visualized in the domestic *GDP*. More than 90% of it stems from imports and exports [33, 34]. The main imported goods are to the greatest extent represented in consumer goods, e.g., petroleum products, pharmaceuticals, plastic

On the other hand, there are exported goods largely consisting of raw materials and semifinished goods, for instance, copper, cut diamonds, gemstones, granite, lead products, marble, uranium, and zinc. A large proportion of exported goods are represented in beef, which is mostly transferred to South Africa and the European

The steady increasing economic growth of African emerging markets is favoring

Defining economic key sectors is essential for any domestic economic growth. Key sectors represent the largest amount of independence among the rest of the

the economic situation of Namibia. Primarily responsible are their neighboring

*Humavindu* and *Stage* are describing the current domestic economy as the combination of a modern market sector industry with farming while mainly focusing on sectors that have been successful in the past, e.g., the mining sector [33, 34]. Furthermore, the level of industrial activities remains low which represent an obstacle for sustainable economic growth. As one possible solution, the economic diversification of Namibia has been announced by *Krugmann* [28]. Additional assistance to achieve sustainable growth is generally given by the implementation of economic favoring policies. However, Namibia, as well as other emerging markets, is often confronted with institutional voids, which result in a lack of the governmental implementation process. One example is monitored by the *government* dimension of *CDIS*, describing issues in the implementation of Namibia's tax policies [21]. *Multinational enterprises* (*MNEs*) are able to recognize the favorable situation as comparative advantages while the local content is remaining low. The *Institute for Public Policy Research* (*IPPR*) describes the situation as an exploitation of Namibia. To a great extent, these are fundamental obstacles in order

*DOI: http://dx.doi.org/10.5772/intechopen.88638*

**5. Development of Namibia's economy**

to achieve sustainable development [41].

**5.1 Gross domestic product and trade**

projected as a minor steady growing one [2].

products, rubber, spare parts, textiles, and timber [42].

countries, such as Angola, Botswana, and South Africa [2].

*Perspectives on Economic Development - Public Policy, Culture, and Economic Development*

Nevertheless, which leverage yields out for Namibian inhabitants?

The third aspect of Namibian governmental *triple challenge* is the fight against poverty. Poverty goes hand in hand with inequality and especially with unemployment and thereby arises the difficulty of monitoring the aspects of poverty isolated. Namibia is reflecting poverty particularly in female-headed households, extended families, inhabitants with a low level of education, and farmworkers. When separating the occurrence of poverty into regions and economic sectors, it holds true for the rural communal land and the informal urban sector [2].

According to authors *Humavindu* and *Stage* and data from the *World Bank*, most of Namibians had to live with less than 2 USD per day in 2018 [2]. Even worse is the fact that the majority has to deal with an annual income of less than 100 USD [33, 34]. Plenty of inhabitants call upon urbanization, in the hope of better access to resources and professions, but mostly end up in worse conditions or the black market. Namibia's cities are currently recording an annual population growth of

Wealth and income are distributed by far unequal, as already indicated with the *Gini coefficient* under Section 3. This also clarifies why the *World Bank* classified the nation in 2019 as an upper-middle-income nation while having tremendous poverty

In terms of the *Human Development Index* (*HDI*), which focuses on people and their capabilities by analyzing data from three different dimensions—long and healthy life, being knowledgeable, and decent standard of living—Namibia ranked itself in position 129 out of 189 countries. This refers to a medium human development, which is surprisingly higher than the average in sub-Saharan Africa [33, 34]. Another indication strengthening the country's poverty is the small degree of domestic industry, as previously described. It causes minor economic development which results in negative outputs for domestic education, employment, and espe-

Again, the contribution of history influences the current situation. Former drastic

events, as already mentioned under Section 4, are responsible for the dominant degree of poverty in Namibia. Decades of suppression, exploitation, and slaughtering native population has long-lasting effects on their self-perception. Those effects are staying within the Namibian population and do not erase with their national independence or any other progressive event. It takes time to change the social and economic thinking toward favoring the nation and a self-decision-making concept. Namibian population is currently still suffering from former times. *CDIS* describes that such is especially visible in the gap of tolerating, trusting, and accepting other cultures [21]. Health and nutrition are also influencing the degree of poverty within Namibia. A constant nationwide supply leads to food security, agricultural production, and higher wages, which in return has a positive impact on the degree of poverty [28]. Furthermore, the "western economic" long-term thinking is missing. Namibia scored low in *Hofstede's long-term orientation dimension*—35 out of 100—which reflects a normative culture that thinks suspiciously among societal changes and that focuses on accomplishing quick results [22]. Namibian governmental efforts would be wasted if their inhabitants refuse to change. An example of the majorly nonexisting long-term thinking is described by *Sylvain*. In her article, she characterizes the San—besides their

unfavorable economic situation—as spending all their wages on payday [30].

Efforts against poverty have been made by the Namibian government by doing it carefully and always in regard to the possible side effects, e.g., exploitation of natural resources. In compliance with *Krugmann's* article, the domestic government is working against poverty in direct and indirect ways. The direct way is tackling health, education,

**4.3 Poverty**

around 5–6% [28].

cially the nation's poverty.

issues [2].

**52**

housing, pension, and resources, while the indirect form is dealing with topics as investment promotion and taxes [28]. Hence, Namibia was able to succeed by reducing the national poverty line from 69.3% to 17.4% in the years of 1993–2016, altogether in accordance with an upward trend and stability in their economy and politics [2].
