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An Introduction Development Economics

Assessment and comparison of development of different economies across the world can be essential for benchmarking. This paper compares level of development of Algeria and Ghana. It also assesses the performance of Malaysia in terms of economic growth, human development and millennium development goals achieved as of 2015.  Lastly, the paper discusses attributes of underdevelopment in reference to Mexican country.

Ghana and Algeria are countries from African continent compared on various fronts in terms of Human Development Indicators (HDI). Algeria ranks topmost in Maghreb region. It has achieved many of its goals, and through its oil boom, it has cleared its debt, improved its HDI and investd in infrastructure. It has made gains it almost all of its HDI. It ranks position 83 out of 188 countries as per the latest Gross Domestic Index (GDI) report. Life expectancy at birth recorded an increase by 16.6 years while mean school years increased by 5.8 years (The World Bank, 2017).. Universal education stands at 97 percent net enrollment rate as by 2015. There is gender parity in education. Similarly, enrollment at higher education increased. However, the quality of education in Algeria will require improvement going by the rankings, which placed a 15 year old at 71 out of 72 in mathematics and science in 2015 (The World Bank, 2017).. The ranking was an initiative of PISA. Socio Economic stability of Algeria is not in good shape owing to low oil price on global markets and reduction in hydrocarbon revenues coupled with rapid decrease in currency reserves. Nevertheless, despite bad weather and decline in prices, in economic front., Algeria recorded a growth of 3.4 percent in 2016. Similarly, on the other hand, economy of Ghana recorded improvements in first half of this year from fiscal slippage last year 2016 (The World Bank, 2017). The GDP expected is 3.5 percent. Even though revenue were below budget, through a raft of government inputs, such as cutting on current expenditures have kept fiscal consolidation program on track. Economy grew in 2017 from 4.4 percent to 6.6 percent. Inflation rate was moderate that triggered the central bank to reduce policy rates. Ghana expects to meet its fiscal deficit, which is at 6.3 percent of the GDP (The World Bank, 2017).. Like Algeria, Ghana faces challenges of high youth unemployment, high electricity cost and delays in resolution of debt that energy states owned enterprises incurred. In terms of civil liberties, political liberties and societal safety and security, the two countries are as power. Ghana has however emerged as an epitome of democracy and freedom in press and media.

Since 2000, the performance index of Malaysia has been positive however with some challenges along the way (The World Bank, 2017).  Between 2000 and 2008, Malaysia posted solid growth rates at 5.5% every year. Global financial crisis however hit the country in 2009 but it quickly recovered from the crisis and recorded a growth rate of 5.7% until the year 2010. GDP per capita of Malaysia has been average between 2012 and 2014 at around $10,782 billion (The World Bank, 2017). It however decreased in 2015 and 2016 at $9566 billion and   $69420 billion respectively.

Source:  Focus Economic (2017).

In terms of human development, only less than 1 percent of household in Malaysia live in extreme poverty, also the percent that falls in the lo-income bracket (The World Bank, 2017). Income disparities in Malaysia have also narrowed. Government supports the vulnerable poor with cash transfers. Reforms are underway to improve productivity through increasing quality of human capital.

As per the MDG report of 2015, Malaysia has achieved substantial goals, which mainly focused on inclusiveness, sustainability and resilience. The country has eradicated poverty, reduced infant mortality and closed the gap to universal primary education (Malaysia Millennium Development Goals Report 2015).

Four characteristics attributes of underdevelopment country are, low level of income, mass poverty, unemployment problem and lack of capital formation. Mexico as a point of reference does not demonstrate these attributes hence, do not fall in this category because of its larger economy. Income levels in underdevelopment countries are low because of lack of means of production; poverty is high, as people have no gainful employment. Many people lack access to jobs because they have no requisite skills, training knowledge or opportunity to work.  Lack of capital formation emanates from lack of skills, resources, and opportunity (Kwat, 2017). In Mexico, these issues affect small percent of population because; it is an advanced economy with many skilled people with working opportunities for the people (The World Bank, 2017).

Mexico economic growth

Source: The Economist (2017)