How to Reduce the Unemployment and the Poverty in Djibouti: Another Alternative

Mohamed Elmi and Ibrahim Robleh

International Journal of Economics and Finance, 2018, vol. 10, issue 9, 114

Abstract: The Unemployment and the poverty are problems which exist throughout in the world. Many methodologies and policies are proposed in the literature for defeating them. The Republic of Djibouti is among these countries which has the problems of the unemployment and the poverty. For fighting the unemployment and the poverty, the government of Djibouti takes many initiatives such as the Strategic Document for Reducing the Poverty (SDRP) in 2003 and National Initiative of Social Development (NISD) in 2007 and created agencies for promoting the entrepreneurships. Despite of all these measures, the unemployment and the poverty rate still remain high critical level. In this paper, we propose another alternative- the classification of unemployed persons, the creation of service industries by structuring the informal jobs and a manner to create manufacturing industries.Our proposed methodology allows the reducing of the unemployment rate of order 6% (six percent) and if we apply it on all informal jobs in Djibouti, the unemployment rate will decrease of order 20% at 25% (twenty to twenty five percent). We also discuss how to update the used measures till today.

Date: 2018
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