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Bloomberg's Paul Richardson writes about the Seychelles' green fisheries initiative.

Seychelles, an Indian Ocean archipelago off the East African coast, plans to offer so-called blue bonds, which fund the development of sustainable fisheries, to investors later this year.

The country’s Treasury is in talks with multilateral agencies including the African Development Bank and the World Bank to facilitate the sale of $10 million of the government-backed debt, Finance Minister Jean-Paul Adam said in a phone interview Jan. 22 from the capital, Victoria. The securities are modeled on green bonds, which channel their proceeds to projects that save energy, curb pollution and recycle resources.

“If you’re going to finance a fishing business it will be generally seen as a risky business and will be costed accordingly,” Adam said. “We hope to absorb this risk. And the involvement of the multilateral agencies will help reduce the cost so we get an affordable interest rate.”

Seychelles is considering the debt as its $169 million of bonds due January 2026 outperform other sub-Saharan African nations, returning 2.6 percent this year compared with an average loss of 2.9 percent among 17 countries on the continent tracked by Bloomberg. The commercial fishing industry in Seychelles, which has Africa’s biggest tuna-canning factory, is dominated by companies including Thai Union Group Pcl, Thailand’s largest seafood exporter. Fisheries account for about 1 percent of the country’s $1.4 billion economy, according to World Bank and African Development Bank data.
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The Indian Ocean island nation of the Seychelles, a French-settled but later British-ruled archipelago in the Indian Ocean off the East African coast, is the subject of Carl Haub's latest post at the Population Reference Bureau's blog. I last posted about the Seychelles in 2005, with a post on efforts to promote Seychelllois Creole on the Internet and in public life and to so avoid the language's displacement by more prestigious English and French. Haub's post is an in-depth exploration of the island nation's insularity, of the isolation that at once makes life difficult for Seychellois through the inflated cost of imports and helps promote the island's economy through the insular isolation of the inhabitants' environment.

The country has a fascinating history. Vasco da Gama was the first European visitor in 1502 but the island remained uninhabited until 1756 when the French first laid claim. It did not become a truly viable colony until the 1790s. Prior to that, it is said to have served as a hiding place for the booty of pirates from Madagascar, such as “la Buse.” Even today, treasure hunters obtain permission to dig for probably imagined riches. French dominion was rather short and the British took over in 1810, although French landowners were allowed to retain their holdings. But much of French culture remains, especially the local language. Seychelles was initially ruled by the British from their colony of Mauritius, hence the designation of the money as rupee. The British conducted a campaign against the Indian Ocean slave trade. Freed slaves taken from slave ships were often brought to Seychelles, forming a large part of the original settlers. But slave ownership was still allowed and the practice continued until made illegal in 1835.

[. . .]

The August 2010 Census reported a preliminary population of 88,311, up from the adjusted 2002 Census count of 81,755. The rate of natural increase in 2009 was 1.0 percent. Net immigration is most likely negligible although difficult to measure since Seychellois who live abroad often have two passports. The total fertility is low for a developing country, averaging 2.3 children per woman for the 2006-2009 period. Life expectancy at birth is 73 years and infant mortality is 11 infant deaths per 1,000 live births in the same period although life expectancy has not risen appreciably for many years.

The country scores very high on many socioeconomic measures, such as education, health, and housing and has already achieved most UN Millennium Development goals. A visitor’s impression is one of a country with many developed country amenities. Car ownership is on the rise with 9,104 cars registered in 2007, or about one for every three households. There is now even the semblance of a rush hour from new developments south of Victoria. Younger Seychellois appreciate the new modern townhouse development but there is also some reluctance to cut oneself off from more traditional village family relationships.

Life can be an economic struggle as virtually all goods must be imported. A visit to the government supermarket in Victoria, revealed large numbers of recently-received items, such as hundreds of bottles of ketchup. Agriculture is almost non-existent due to the terrain. Out 42,000 employment in 2009, only 738 were employed in agriculture, forestry, and fishing. (The 2010 Census reported a higher level of employment than previously estimated at 48,000.) In 2009, the International Monetary Fund required the Seychelles rupee to float on the open market, raising the exchange rate to a more realistic 17 Seychelles rupees from the previous seven. While it created financial hardships, the move was necessary and beneficial and the all-important exchange rate has improved to 12 rupees to the U.S. dollar at this writing. Nonetheless, by 2009, prices for many food items had doubled since 2007 while incomes rose by only 50 percent.

About 25 percent of national income comes from tourism, less than figures often quoted. There is some industry on Mahe, such as Indian Ocean Tuna, called the second-largest tuna processing facility in the world, although it employs a good deal of foreign labor. Each town around Mahe has its own general store, called a supermarket, but these are nearly all run by Indians, primarily from the state of Tamil Nadu. A recently-built Hindu temple, built in the South Indian style, is now prominent in Victoria. The large majority of the population, 87 percent, is Roman Catholic, 7 percent Anglican, with the rest about evenly divided among Hindu, Muslim, Buddhism, and Baha’i. Seychellois are known as avid churchgoers. Many towns have churches which seem unusually large for their size. A recently-built Hindu temple, built in the South Indian tower style, is now prominent in Victoria and the country’s first mosque has been built.
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CBC hosts Forbes' Joshua Zumbrum's article on those national economies worst hit by the current recession.

The economy is bad in North America and Western Europe, but at least economists stopped saying the Great Depression II is at hand.

Other countries aren't as lucky. While the International Monetary Fund said Wednesday that much of the world economy "is beginning to pull out of a recession unprecedented in the post-World War II era," the economies of Latvia, Estonia, Iceland, Ireland and Lithuania won't be coming along for the ride, with gross domestic product falling by more than 10 per cent — the standard yardstick for a depression —this year.

And though most of the world is enjoying low inflation, with high unemployment keeping wage and price growth in check, Seychelles, Iceland, Venezuela, Ukraine and Jamaica, saddled with huge government debt burdens, are drowning in it.

Worse, all five countries have weak GDP, creating the ugly phenomenon known as "stagflation," familiar to millions of Americans who weathered the 1970s. In Iceland, the economic collapse led to 8.5 per cent inflation and GDP that fell 10.5 per cent. Call it a stagflationary depression.


The entire article's worth reading.
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