Africa is the continent with the lowest average amount of development. The cause of the lack of development on the continent is still being debated today. According to Amartya Sen, development is the measure of “freedom”, or the capability to improve one’s situation, in a region. From an economic standpoint, development is determined by two main factors: Human Development Index (HDI) and Gross Domestic Product (GDP). The low levels of development amongst the African nations lead to social and structural problems such as the uneven distribution of income and the existence of dualism, the economic separation of the urban and rural sectors. These problems hinder the ability of the country to develop. However, there are several development models and theories such as the linear-stages-of-growth model structural-change theory, the International dependence theory and the neoclassical theories. (Child 2013)
The term development doesn’t refer to only economics, but also refers to education, health, infrastructure, conserving the environment and the freedom of expression. Although GDP only considers the economic development in a country, it is still useful because it portrays the status of a country in relation to its neighbors an as well as future development. The GDP measurements allow economists to compare the costs of products in different countries through Purchasing Power Parity (PPP). This helps determine the value of a country’s currency from an international standpoint. The HDI, on the other hand, was formed by Sen to encompass three major components of development, primarily health, education and monetary wealth in U.S. dollars. To quantify these dimensions HDI uses the “life expectancy at birth, mean years of schooling (expected...
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...ates that the economic structure of the country should be changed from a subsistence farming economy to a modern, industrialized economy. The international dependence theory was made in response to the failure of several attempts at restructuring the African economies. It suggests that the reason for Africa’s inability to mobilize economically is its dependence on wealthy nations, which wish to maintain dominance, for economic support. As a result of this theory, questions regarding who is responsible for the unstable state of Africa have arisen. The neoclassical theories suggest that development will take place once the national and international governments do not intervene in the economy and open free markets. Though each theory seems thorough, they cannot be applied to every economy in Africa due to the differences in culture and economic structure. (Child 2013)
The impact of the Structural Adjustment Programs imposed by International Financial Intuitions (IFIs) such as the World Bank and the International Monetary Fund on the developing countries of Africa has led to the destruction of Africa’s social sectors and has handicapped Africa in its fight with poverty, the AIDS pandemic, and keeping children in school.
Africa is the world’s poorest inhabited continent, with more than one third of its residents living on less than a comparative US dollar per day. Africa is often stereotyped as poor, overpopulated, and uncivilized. Africa is commonly interpreted as one united land mass rather than multiple independent nations. Africa’s limited use of technology, agriculture and market based economy, and independent self-governing prior to independence have made gathering data on the continent difficult. Africa as a whole has little data collected about its past and as a result many studies conducted and published refer to the continent as a whole rather than referring to individual nations.
The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country's HDI are gross domestic production per capita, life expectancy at birth, adult literacy, and the number of persons enrolled in educational institutions. In 1975, Peru's Human Development Index was 0.643. By 2003, the Human Development Index had risen more than one tenth to 0.762. The substantial increase in Peru's HDI is a clear indication that globalization has made a positive impact.
Standard of Living, in a purely material dimension is the average amount of GDP per person in a country (therefore determining access to goods and services). However the term has a much broader, non-material dimension involving issues of quality of life and are therefore much more difficult to quantify. There is no single measure of SoL, but a range of indicators, which can be used together to give a good idea of a countries’ SoL. Reasons for GDP figures alone giving an incomplete understanding of SoL in a country will be explained in this essay, along with problems faced when comparing levels of development between countries.
Over one billion people are living in poverty, lacking safe water, housing, food, and the ability to read. There is a high concentration of communities in poverty in Africa; particularly Central Africa. States that are considered in Central Africa are the following: Cameroon, Democratic Republic of Congo, Central Republic of Africa, Chad, Equatorial Guinea and the Congo. The majority of these Central African states’ economies are dependent on agriculture. As a result of this dependency, natural disasters, droughts and wars can displace subsistence farmer from their land resulting in poverty becoming even more prevalent and harder to come back from. Also with a history of dependency on farming there tends to be the trend of education not being a primary focus for the youth which is another factor into the stagnant poverty trend in Central Africa.
Can we measure well-beings of country by GDP (Gross Domestic Product)? First, we should understand what the meaning of “Well-being” is. As refers to the Wikipedia, Well-being or welfare is a general term for the condition of an individual or group. That means social, medical, psychological, spiritual and economic state of citizens (Well-being, 2014); where Gross Domestic Product (GDP) is the final measure of the goods and services produced within the country in a specific year. Nowadays, countries are measuring their well-beings in GDP which means people are as happy as GDP rises. GDP has its own limitations: overestimation of economy, underestimation of negativities and quality of life.
In international parlance, development encompasses the need and the means by which to provide better life for people in poor countries and it includes not only economic growth, although that is crucial, but also human development like...
How Europe Underdeveloped Africa by Walter Rodney, was one of the most controversial books in the world at the time of its release. The book seeks to argue that European exploitation and involvement in Africa throughout history. This is the cause of current African underdevelopment, and the true path to the development is for Africa to completely sever her ties with the international capitalist economy. Rodney describes his goal in writing the book in the preface: “this book derives from a concern with the contemporary African situation. It delves into the past only because otherwise it would be impossible to understand how the present came into being and what the trends are for the near future” (vii). Rodney writes from a distinctly Marxist perspective by arguing that the inequalities inherent in European capitalism and required exploitation of certain countries in order to sustain capitalism.
The Problems of Defining Development Development is very difficult to define as it has a wide range of meanings and has therefore been used in a variety of ways, by different people or organizations at different times. For example, geographers will link development with improvements in human welfare. e.g. greater wealth, better education and health. Many geographers will measure development in terms of the countries HDI (Human). Development Index.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
The topic that I have selected for my chapter evaluation essay is that of “Economic Development”. This paragraph above is the best summary of the chapter’s contents. In this chapter the author discusses the influence of development on the three worlds of countries. These worlds are benchmarks set to assess countries economic states relative to each other.
There is no doubt that European colonialism has left a grave impact on Africa. Many of Africa’s current and recent issues can trace their roots back to the poor decisions made during the European colonial era. Some good has resulted however, like modern medicine, education, and infrastructure. Africa’s history and culture have also been transformed. It will take many years for the scars left by colonization to fade, but some things may never truly disappear. The fate of the continent may be unclear, but its past provides us with information on why the present is the way it is.
Inflation, what does it mean? It is simply the rate at which the price of goods and services rises and thus leads to falling in purchasing power. It also means the rise in price as compared to a pre-defined benchmark. It can also mean an increase in supply of money in the market. Growth in economics refers to economic growth of a country and it means an increase in the market value of services and goods produced by a country over a period of time. Whatever the meaning is taken, both inflation and growth are closely related and dependent on each other and a proper balance should be established.
in relation to development. Development is explained by the Oxford Dictionary as the process of developing or developed in a specified state of growth or advancement. Underdeveloped as according to the Oxford Dictionary is ‘not fully developed or not advanced economically’ which is meant for a country or a region. We can certainly see the difference between underdeveloped and developed where the changing situation emerges from the economic point of view. To be more specific, worlds within world were created i.e. the nomenclature of First World and Third World came into picture. The First World is said to be the industrialised, capitalist countries of Western Europe, North America, Japan, Australia, and New Zealand who are developed (as explained in the definition). The Third World includes the developing countries of- Asia, Africa and Latin America who are still in the mode of developing. Normally we understand the situation of underdevelopment is because the third world was under the colonies or the colonial rule for a certain period of time and lags behind the first world in every aspects like- social, economical, political, technological advancements which are yet to be seen in the third world fully like the first world. In this paper we will talk about various theorists from - Karl Marx (capitalism and class conflict), Kay and Amin (merchant capitalism, colonialism and neo-colonialism), Vladimir Lenin (imperialism), Andre Gunder Frank (third world dependency), Lipton (urban bias) and dependency theory. Here in this paper we will try to explain and understand the relevance of the various underdevelopment theories and different attributes related to it terms of the Indian Context.