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By Zamokuhle Mngomezulu 09/11/2003 Economics Homework Explaining Failure Over the years 1965 and 1990, Sub - Saharan Africa when compared to South and South East Asian countries (the tiger economies of the period) has to a large extent grown less quickly. Overall, the actual difference in development among the regions selected is most vividly illustrated by the statistics of Sub - Saharan Africa. They have growth less quickly by negative four percentage points per year, over the time period of 25 years. Using Sub - Saharan Africa's initial conditions figure of 1.007 ( (0.7 / 100) + (100 / 100) ) as the base year, using -4.0 (the annual rate of growth), and taking into consideration 25 years, the actual difference in growth (based on the percentage point provide) ...read more.
Africa scoring the lowest at -0.3, compared to South Asian 0.0. Access to the sea is important for international trade apart from moving countries closer to the markets which they are trying to trade with, it has the immediate effect of reducing transportation costs. Temperature has also been a contributing factor, as according to data provided, tropical countries grew 1.3 percentage points slower than countries that are situated in temperate zones. East and South East Asian countries rather taking the route of tropical agriculture, they decide to focus on large expansion of manufactured exports. Their focus brought about by their determination to improve conditions for profits and labour intensive manufactured exports. This was a good economic policy as in doing so, East and South East Asian countries have avoiding the problems a linked with tropical agricultural. Allowing them to escape the poverty trap of the tropics. ...read more.
Considering the data provided, the demographic section of the data illustrates the increasing gap between South and South East Asian countries the greatest - The main contributing factor, being life expectancy (-1.3). This surpasses the percentage point obtained by South Asia by 2.6 times. It is apparent that this is the most imposing obstacle Sub - Saharan countries must overcome. In effect, breach of contract, expropriation of property, inefficiency in public administration, corruption and conflicts (wars and civil-wars), have stagnated relative positive growth. And have had the effect of moving it in the opposite direction. Void of social stability and political legitimacy (undermined by dictatorships), hopes of over coming problems of resources and geography, demography or implementing shrewd economics policy (that will increase growth at sustainable levels), cannot be realised until the issues of responsible and legitimate governance is addressed. As the article rightly sights, governments must play a fundamental part in economic growth through "prudent fiscal policy." ...read more.
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