Introduction Development economics

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An Introduction Development Economics

Development of countries varies due to various reasons. Conducting a comparison analysis of the various countries across the world provides an indicator on their economic, social and political development aiding in the benchmarking. This paper compares the level of economic development of Chile and Algeria. It also assesses the performance of Malaysia in terms of human development index (HDI), economic and millennium development goals achieved as of 2015. Last but not least, the paper provides elaborate discussions of various attributes of underdevelopment in reference to Ghana.

Algeria is among the countries in the African Continent while Chile is one of the countries in the South American continent. The two countries compare in different aspects in terms of their Human Development Indicators. Chile economy ranks amongst the highest income in the world as per the World Bank report is the South America. It stands out as the most stable and prosperous country taking on a leading role in the Latin America in terms of income per capita, competitiveness, economic freedom, globalization and low perception of corruption (The World Bank, 2017). For instance, in 2015, the GDP of Chile stood at $424.3 billion, with its GDP per capita, standing at $23,800 (Chile, 2015). The country exports in 2015 average $61.82 billion ranking at position 44 (Chile, 2015). On health, life expectancy stood at 78.61 years The World Bank, 2017). The country likewise, ranks top in terms of its HDI. The country is fairly wealthy ranked among the top 50 countries having higher GDP.  Nevertheless, it still has to make improvements in its education systems to increase literacy rate as well as its school life expectancy which stands and 15 years for both male and female. The literacy rate stands at 97.5 per cent with only a small percentage of 2.5 being illiterate (The World Bank, 2017).  Overall, the country has reduced its level of poverty because of the fast growing economy. For instance, between 2000 and 2015, people living in poverty decreased from 26 to 7.9 per cent (The World Bank, 2017).  Declining GDP growth which fell from 6.1 in 2011 to 1.6 % in 2016 because of low copper prices has negatively impacted on private investments and exports affecting the level of unemployment which however has remained stable due to increasing self-employment caused by stagnation in wages (The World Bank, 2017). Even with these, there are still hopes as the country private prospects sector improve and prices of copper increase. This will help cure the problem of fiscal policy deficits rooted in its structural balance rule. The country need to remain committee in addressing some of these challenges to improve energy provision, promote productivity and reduce overdependence on mining and at the same time increase accessibility to quality social services.

Similarly, in Maghreb region Algeria ranks amongst the top nations in terms of its economic growth and HDI. The country has recorded positive growth in its economy courtesy of its booming oil industry. The exports has helped in reduction of its debts, fostered infrastructural development and improvement in HDI. Latest GDI reports rank Algeria at position 83 out of 188 (World Bank (2017). According to the World Bank (2017), the country life expectancy at birth increased by 16.6 years, while mean school years went higher by 5.8.  By 2015, the enrolment in universal education was at 97 percept, with gender parity. Higher level education recorded an upward trend in this period.  Rankings done by PISA placed Algeria at position 71 out of possible 72 in mathematics and sciences, an illustration of low education standards (The World Bank, 2017). Putting in place measures to improve education quality is highly recommended. Reduction of oil prices, decrease in currency reserves and reduced hydrocarbon revenues on international market has slowed socio economic growth of Algeria. Nevertheless, amidst these challenges the country recorded 3.4 percept growth rates in 2016 (The World Bank, 2017).

Between 2000 and 2015, the performance index of Malaysia is assessed as stable and positive despite few challenges (The World Bank, 2017). Growth rate between 2000 and 2008 stood at 5.5 per cent on yearly basis. 2009 global crisis affected the economy but the country managed to recover recording 5.5 percent growth rate till 2010 (Focus Economic, 2017).  GDP of the country has remained average between 2012 and 2014 at an estimate of $10,782 billion, however recorded a decrease in 2015 and 2016 (Focus Economic, 2017).

HDI assessment provides a clear understanding of the living standards of people of Malaysia. The poverty level is low with less than 1 percent of the people living in extreme poverty conditions, equally under low income bracket (The World Bank, 2017). In the period, the income levels have reduced probably because of government initiatives aimed at providing financial support to the poor and vulnerable with cash transfers. The country has also spearheaded reforms to increase productivity and improve the quality of human capital.

 Millennium Development Goals report 2015 is a proof of the success of Malaysia as it has achieved inclusivity, there is resilience and sustainability. Eradication of poverty is evident. Infant mortality has gone down with major reforms in universal primary education elevating the education standards (Malaysia Millennium Development Goals Report 2015).

Source: Focus Economic 2017.

Four characteristics attributes of underdevelopment country in reference of Ghana include high unemployment levels, low income levels, high population pressure and mass poverty. These attributes are interrelated as they affect each other. The high unemployment is caused by lack of industries and relevant skills. The income level of the country is low compared to development. The per capita income is low brought by inequality in distribution of income and lack of employment opportunities. High level of population in underdevelopment countries such as Ghana is orchestrated by the high prevailing birth rate and decreasing death rates. This situation creates the problem of low living standards. Mass poverty is a major attribute of underdeveloped countries such as Ghana and continues to rise because of orthodox means of production and social institutions (Kwat, 2017). Increase in population, price level increase and growing inequalities leads to increased level of mass poverty (The World Bank, 2017).