Causes to Slow Economic Development in Less Developing Countries.
Susanna Yuen Shan, Keung EC1103 Autumn Term Essay 2003 Causes to Slow Economic Development in Less Developing Countries What is Economic Development? Economic development is the process of growth and structural change across the world, which aimed at improving people's living standard. The basic method of measuring economic development is to calculate real Gross National Product (GNP) per capita of the country. GNP is composed of value of all goods and services produced within a country and the property income from abroad. It is real in the sense that it takes inflation into account, thus the term purchasing power parity dollars (PPP dollars). The annual World Development Report, conducted by the World Bank, puts nations in a rank order based on GNP per capita and its rate of change. This is normally how we distinguish between more developed countries (MDCs) from less developed countries (LDCs). The United Nations Development Programme (UNDP) launched a new composite indicator in 1990, which is considered as more sophisticated. HDI, refers to Human Development Index, includes three people's choices which are deemed to be critical: access and purchasing power of resources (GNP per capita in PPP dollars); a long and healthy life (life expectancy); and education (adult literacy rate and enrolment attainment rate). It is published each year in Human Development Report (HDR)
Slovak economic development, measured by GDP, inflation, and Unemployment
Slovak economic development, measured by GDP, inflation, and Unemployment Peter Matay Tomas Koribana Macroeconomics Research paper 20/4/03 Prior to the research, there is need to define, what GDP, Inflation, and Unemployment is. Gross Domestic Product is the value of all goods and services produced in a country during one year.(Macro economy, 11,) The second macroeconomic indicator as well as macroeconomic problem is Inflation. It's occurs when quantity of money within economy increases faster than production showing itself in growth of prices. Unemployment is a problem and macroeconomic indicator as well. When a certain percentage of people that are considered to be a part of labor force, are willing to work but there are not jobs available in the market and therefore they cannot find a job. These 3 macroeconomic indicators and problems (inflation and unemployment), do indicate the state of economy. Also, they influence may the economy in positive and negative way. An example of negative inflatory influence occurred in post war Germany, where the inflation rate was more than 50% and the money had practically no value. The prices of goods and services increased so rapidly, people lost their confidence within the economy. It was calmed just when thigh monetary and disinflatory policy was introduced. Fortunately, with government involvement and concrete disinflatory laws,
Explain the key issues in relation to the developing nations concerning economic development and economic growth.
08.02.04 Anna Markmann Sec. 5 - Development economics - Essay #1 Explain the key issues in relation to the developing nations concerning economic development and economic growth Economic growth occurs if there is an increase in country's output over time, that is an increase in its national income. Economic development occurs if the increased output also improved the standard of living including variables such as the provision of health care, housing, education, employment and income distribution, etc. Even though growth can exists without development (see left diagram in "PPF-development"), growth is not equal to development and vice versa: diagram 1: PPF - growth and development From the Production Possibility Frontier one can see there the national income could be, if all FOPs were most efficient used. The PPF signifies growth in terms of an increase in potential output, but it also shows that growth only benefits the consumer of luxury goods (increase in production of luxury good > production of necessities in diagram 1). A major problem of developing countries. It is very desirable to have growth, because it creates extra resources which can be used to reduce poverty, that is equal to an increase in real national income, which afterwards allows more goods and services for consumption, what is the foundation for the more desirable development. Therefore growth is
Decision Making Exercise on the Economic Development of Brazil.
Decision Making Exercise on the Economic Development of Brazil .a) Large Areas of the Rainforest are being destroyed to make way for industrial and urban developments. Not only is this land being cleared for the new developments, but also for the wood to be used as fuel and building materials to satisfy the physical needs of both the tourists and the local population. b) Both these graphs show that between 1975 and 2000 the rate of reduction of the rainforest has decreased in Latin America going from a loss of 6300 million hectares in 1975 then only losing 5900 million hectares in 2000, And as a percentage loss that was only 0.45% compared to the likes of Asia that loss 0.7% of their area annually. This shows there are new initiatives in place to stop the decline of the rainforest. 2. The rainforest is important, not only to the indigenous tribes, like the Kayapo Tribe, living in an around the rainforest, but also people around the globe. The world's rainforests contain over 50% of all living species of animals on our planet, by destroying these rainforests, we are not only destroying countless numbers of habitats but also damaging one of the world's largest ecosystems. The Rainforests also contain over 40% of our prescribed medicines, but with the gradual diminishment of the rainforests we could be losing valuable medicines, for all we know we could have destroyed a
An Investigation of Vietnam's Barriers of Economic Growth and Development
An Investigation of VIETNAM'S Barriers of Economic Growth and Development Over the past few decades, Vietnam has made remarkable recovery from the damage of war and political reforms. Under Vietnam's communist party, the country's economy has transitioned from a centrally planned economy to a socialist-oriented market economy. Making it a multi-sectored commodity economy regulated by the people, whilst under state management and ownership. Numerous reforms, along with the modernization of the financial system, have led to rapid growth for Vietnam economically. In 2010, the Gross Domestic Product (PPP) of Vietnam was $275,639 million and ranked 40 out of 182 listed countries according to the International Monetary Fund. This is most likely due to rapid industrialization that has and is taking place. Industry and construction contributed approximately 40.9% of GDP in 2010 whereas the share of the agriculture sector has fallen to 21%. Although the rise in GDP has brought about a decline in poverty, larger school enrolment rates, bettered infrastructure, etc, this rapid growth rate has also brought with it negative factors that may hinder subsequent economic growth and development. For instance, Vietnam is facing large budget and trade deficits. In 2010, the current account balance (CAB) of Vietnam was -8.51 billion US dollars based on the International Monetary Fund, with
AN ANALYSIS OF MALAYSIAN ECONOMIC DEVELOPMENT FROM 1993 TO 2002
Acknowledgement I would like to thank my professor, Dr James Nayagam for his guidance, comments and suggestions. I also gratefully acknowledge research support from Bank Negara Malaysia, Asian Bank Development, Finance Ministry and Statistics Department. Executive Summary Over the past three decades, Malaysia has achieved growth and structural transformation in its economy. This review examines the Malaysian economic performance and its policies for the last 10 years (1993 - 2002). My approach to the review will cover the following: * What is the role of the government in the economy process? * What were the forms of government intervention? * What were the costs and benefits? * Could the government have used different policy mix? Based on the approach I will examine and present the conditions that was faced by Malaysia during the period of review along with the major developments since then. AN ANALYSIS OF MALAYSIAN ECONOMIC DEVELOPMENT FROM 1993 TO 2002 INTRODUCTION In this paper I will analyse the performance of the Malaysian economy for the past 10 years between 1993 and 2002. The analysis will be divided into two eras, pre (1993 to 1996) and post (1997 to 2002) Asian Financial Crisis. I will also present the economy polices implemented during the period of review and in the process identify whether the government's intervention had caused a positive or
Economic Development is a necessary and sufficient condition for democracy. Discuss.
'Economic development is a necessary and sufficient condition for democracy' Discuss The last thirty years has seen an unparalleled growth in the spread of democracy. The growth, identified by Huntington as the 'Third Wave' has driven academics to question what independent variables are required for successful democratisation. The concept of 'democracy' is inherently confusing, thus before we can contribute to the debate we must first define the key term democracy. Whilst political theorists disagree as to what constitutes a democracy this essay will follow Samuel Huntington's procedural definition that a society is democratic when those who make major decisions in society have been chosen through free, fair and regular elections.. Thus the aim of this paper will be to assess whether a certain level of economic development (defined in terms of rising capita income, growing per capita energy consumption, etc.) is "the necessary platform upon which democracy can become established and flourish" (Leftwich, 1996, 47) . Theories of democratization come under the guise of three main theoretical approaches which include In search of democracy's preconditions we often come across a multitude of factors that are essentially conducive to democracy modernization, transition and structural theories. An explanatory factor is a condition, structure or process that comparative analysis
How easy is it to define and measure development? Is a strictly economic definition of development adequate?
PIED 1200 CONTEMPORARY DEVELOPMENT ISSUES HOW EASY IS IT TO DEFINE AND MEASURE DEVELOPMENT? IS A STRICTLY ECONOMIC DEFINITION OF DEVELOPMENT ADEQUATE? DANIEL M. ROSE ZOSA DE SAS KROPIWNICK WORD COUNT: 2494 How easy is it to define and measure development? Is a strictly economic definition of development adequate? The theory of development does not have a single approach it is a normative concept. The definition of development will depend on the goals that the economists assume societies want to achieve. The modernization approach equates development with economic wealth and growth. Gavin Kitching argues 'in favour of industrialization in general...as the only road to development'1. Different economists use different indicators to measure development; these can be based on adequate food, shelter, warmth and clothing, education, health care availability and economic freedom. It is difficult to decide whether to include social and political factors as well as their material standard of living. In this essay I will discuss how easy development is to measure and whether a strictly economic measurement is adequate. Development can be defined as a basic list of requirements yet there are a few major problems when defining it this way. It is possible to measure economic indicators such as income per capita and literacy rates; the difficulty here is actually acquiring these
Economic impact of genetic engineering on development
In what ways does technology affect us? U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation's high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman, editor-in-chief of U.S. News & World Report (7/31/95). Since 1973, wages adjusted for inflation have declined by about a quarter for high school dropouts, by a sixth for high school graduates, and by about 7 0.000000or those with some college education. Only the wages of college graduates are up. Of the fastest growing technical jobs, software engineering tops the list. Carnegie Mellon University reports, "recruitment of it's software engineering students is up this year by over 20%." All engineering jobs are paying well, proving that highly skilled labor is what employers want! "There is clear evidence that the supply of workers in the [unskilled labor] categories already exceeds the demand for their services," says L. Mishel, Research Director of Welfare Reform Network. In view of these facts, I wonder if these trends are good or bad for society. "The danger of the information
The level of economic development influences the quality of life Discuss
"The level of economic development influences the quality of life" Discuss Economic development is the increase in ones standards of living within the country's population with sustained growth from a simple, low income economy to a complete opposite, high-income economy. Quality of life is very difficult to define because individuals have different perceptions but it's the social and psychological condition of people arising from their everyday life. So in other words is someone who is wealthy and has everything they need happy? If a person's quality of life is improved for example if they went from having no water or no shelter over their heads to having clean drinking water and a roof over their head, you would expect them to be a lot happier with their lives. People can still be unhappy with their lives even if they have everything they want, so this will lower the quality of life in that area. Bangladesh, Low-income group, Third World---China, Second World, lower-middle income group---Japan, First World, High-income. All these countries are from the continent Asia. GNI in Bangladesh is $1980 pc (180th in the world),China is $5530 pc (129th in the world), Japan is $30'040 pc (19th in the world) Development cable is one way of measuring Quality of Life and it could tell us if with economic development comes a better quality of life, for example if they have all the
