Macroeconomics and Microeconomics Influences on Level of Inequality and Sustainability in Development Policy

DEVELOPMENT ECONOMICS TABLE OF CONTENTS 7.6 UK 1 TASK 11 a.) explanation of 3 macroeconomics and 3 microeconomics influences on level of inequality and sustainability in development policy 1 b.) explanation on how to carry out development policy with emerging consensus between macro and micro development economists 2 TASK 23 a.) strength and limitations of four classic indices which used to measure sustainable development3 b.) comment on modern indicator that is Happiness which is known as the best indicator of

DEVELOPMENT
ECONOMICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a.) explanation of 3 macroeconomics and 3 microeconomics influences on level of inequality
and sustainability in development policy ...................................................................................1
b.) explanation on how to carry out development policy with emerging consensus between
macro and micro development economists.................................................................................2
TASK 2............................................................................................................................................3
a.) strength and limitations of four classic indices which used to measure sustainable
development................................................................................................................................3
b.) comment on modern indicator that is Happiness which is known as the best indicator of
development................................................................................................................................4
TASK 3............................................................................................................................................5
a.) explanation on following obstacles which create middle-income trap in China...................5
b.) explanation of three traps which affecting China to become the world leader......................6
TASK 4............................................................................................................................................6
a.) development status of European union..................................................................................6
b.) comparison of Dependency ratio of European union, United states of America and China. 8
c.) comparison of all incomes which expressed in 2005 USD PPP............................................8
TASK 5..........................................................................................................................................15
Economic development theory which contrast realities of the European union, united states of
America and China....................................................................................................................15
TASK 6..........................................................................................................................................16
Discussion on trends, problems and challenges of development feed by UNDP-UNRISD
report.........................................................................................................................................16
TASK 7..........................................................................................................................................17
Explanation of five ways which affecting practitioners of international development 2030
agenda.......................................................................................................................................17
TASK 8..........................................................................................................................................18
Explanation on UN's sustainable goals which has stalled in recent years................................18

TASK 9..........................................................................................................................................19
Discussion on BRICS nations which spearheaded by China, which is representing challenges
to global leaders of countries and explanation of power shifts.................................................19
TASK 10........................................................................................................................................19
Detailed appraisal for both given considerations......................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21
APPENDIX....................................................................................................................................23
1. China ....................................................................................................................................23

INTRODUCTION
This assessment provides an information in two different units. In first five tasks,
assessment provides information regarding sustainable development of countries. This present
report provides explanation of development policy which helps in sustainable development in
countries. New economic indicator is also explained in this report. Further, study is done on
economic development theories and new agenda of 2030 to achieve sustainable development
goals across the nations.
TASK 1
a.) explanation of 3 macroeconomics and 3 microeconomics influences on level of inequality and
sustainability in development policy
In recent years, there has been decline in a global income inequality. According to Gini
index, some developing countries has achieved relatively strong economic growth. Particularly
China and India are on top which has achieved tremendous growth in its economics. But there
are some micro and macro economic factors which are overall affecting level of influences and
sustainability in development countries (Boianovsky, 2019). Micro and macro economic factor
which affect income inequality and sustainability are as follows-
Macro level variable factors:
Unemployment: this is the factor which badly affecting level of income inequality and
sustainability in developing countries. Government policies needs to be more effective which
overall helps in creating productive employment in developing countries. With the current
survey, there is more population growth in developing with they unemployment is a factor which
badly affecting standard of living of people of society. For example: in developing countries,
average income of richest 10% population is measured as nine times that of poor 10% peoples.
In UK, unemployment rate has been rises at faster rate in recent five years. Official figure which
represent measure of jobless people is almost 1.47 millions. If wealth of UK is considered than
data obtain is considered as there are only 1% of rich people among 20% of poor people which
creates as level in inequality. There are millions of children and peoples who are jobless and will
not able to earn for their families because of unemployment rate in country.
For example in US, income inequality is continuously increasing. It is happening their
because rich are getting richer and poor are getting poorer. It is said that inequality is mainly
considered with people who don't spend much money which affecting the economy of country.
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Level of inequality with unemployment is mainly occurring in developing countries of
nation. According to a statistics, in India unemployment rate is increasing with 18.6 million and
in China number of unemployment rate is increase with 37.6 million. This data shows that there
is huge level of income inequality in countries across the nation.
Poverty: this is the another factor which also influencing level of inequality and
sustainability in developing countries. According to survey it is indicated that about 162 million
peoples across the world living in ultra poverty. For example: in UK, there are approx 25.3% of
population living under the poverty line which is the huge data that shows level on income
inequality in UK. Compared to other developed countries of nation, there is a high level of
income inequality. As there are less jobs people are not able to earn for their families by which
poverty in UK is substantially increasing. Economic growth of country does not affect poverty
but it is affecting standard of people living which overall affect growth of country.
Poverty is the factor which has almost affected all countries of nation. US is also one
among them. According to survey, it is found that there one-quarter of American workers which
earning less than $10 per hour a day which creates a huge level in income inequality. Developed
economy is showing that rich people getting richer and poor people getting poorer by which in
equal income distribution is not reducing in countries.
Demographic changes: changes demographically in countries majorly influencing level
of inequality and sustainability. Demographic change directly affect GDP growth of country
(Tamura and et.al., 2019). Increase or decrease in GDP will majorly affect income level,
accumulation level, prices of goods, inflation in countries etc. for example:- There are various
changes which took place in UK like technological changes, education changes which have
majorly created unequal distribution of income, where skilled worker are getting higher income
in comparison to unskilled workers. This difference in pay scale in workers at same stage of
work is majorly creating unequal income distribution which overall affecting economic
development of country.
Income inequality in US has increased with past 30 years. It is because income
distribution in country in unequal which means that those who are at top of income spectrum are
getting higher income as compared to people who have less income earning. With current
changes like technology, trade and institutions are the main factors which creating level of
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inequality in countries. Demographic changes occurs with rising population, rising poverty and
rising unemployment rate in countries which overall affecting GDP of country.
In developing countries, major demographic changes are with rising poverty and rising
unemployment with increasing poverty which overall creating high income inequality across
nations. Other factor which affecting GDP of developing country is majorly taxed evasion,
corruption and smuggling in country which badly affecting growth of countries.
Micro level variable factors-
Education: countries which have high literacy rates will always be able to develop a
good sustainable development for its country. Low literacy rate will always be a factor which
majorly affect growth of country and standard of living of society of country. For example:- in
UK, payment of skilled workers is higher than payment of unskilled workers. This shows that
education pays an important role for the development of economy of country. There are people's
who are not completing their education because of less earning of family which overall affecting
growth of economy of country. This is the problem which mainly create unemployment in
developed country with this level of income inequality is get generated in economy of nation.
In developing nation, education is the main factor which create unequal income
distribution. Corruption, smuggling and evasion tax is only get happened in countries where
people are less educated. Some People are not that much capable to pay fees of college
institutions and are not able to afford private school fees by which they prefer to remain
uneducated which creates unequal distribution in developing nations.
Health: it is defined as the difference between health status or distribution of health
determinants among different population group of countries. Society which facing poverty will
not be able to improve its health as possible which affect sustainability and inequality in
developing countries. For example:- in UK and US, majorly people are suffering from obesity
and are not able to work for whole day. This problem of obesity is the main concern for
legislation. Diseases like obesity, hypertension and diabetes are majorly found in people of both
nations which badly affecting growth of economy.
b.) explanation on how to carry out development policy with emerging consensus between macro
and micro development economists
Developing economy is split between micro-development economist and micro-
development economists. Micro-development economist will only consider on factors like
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microfinance, education, health and other social programs of country and macro economist will
only consider factors like economic growth, international trade and fiscal policies of the
government of countries (Tomos and et.al., 2019). Macro-development economists will only
focus to recognise competitive advantages which they have recognised using experimental
approach and micro-development economists will focus to find utility of randomised evaluation
in their approach. Role of both macro and micro-development economists is to find factors
which overall helps in developing policy which improve economic conditions of the country.
Micro development economists are more interested in developing effective factors which
helps in developing effective policies. Both economists have motive to find factors which work
and which does not work for the development of country. Role of economists is to find evidences
which provides an information which is more efficient for the development of economy of
country. Information’s which developed by the economists needs to informative so that economy
which needs improvements with both micro and macro factors will get developed in developing
countries. For example:- in 2017, there are 13 economists who have done effective research that
shaped world and among 2 are the Nobel Prize winners. These are the economists who predicts
global financial crises so that policies get developed prior to face recession period in country.
For example- there are 60 private sector economists who have surveyed and predicted
that 2020 is for recession period and 21% of economists have surveyed that recession will hit the
fan by 2021 as well. The prediction of this survey is same as 2008 recession prediction where
there are people who have lost with their retirement savings. Prediction for 2020 and 2021 is
same for world economy where economists have predicted that it will majorly will affect poor
working class peoples of countries.
Both micro and macro-development economists provides their study which is based on
both qualitative and quantitative surveys. But one of the potential problem in doing study is that
many countries did not have experienced either cost sharing or free distribution programs.
Therefore, to develop the effective policies both macro and micro-development economists
provides proper research of factors by which economic conditions of country get improved
(Roth, Hahn and Spinath, 2017).
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TASK 2
a.) strength and limitations of four classic indices which used to measure sustainable
development
There are various indices which are used for the sustainable development of countries.
Therefore, four induces used are gross domestic products, the human development indexes, GNP
per capita and gross national products. Strengths and limitations of these indices are as follows-
Gross Domestic Product
This is the factors which help in recognising how much money a country makes from its
products throughout the year. For example:- GDP of 4% shows that there is a growth in economy
by 4% in comparison to last year. Therefore, GDP is considered as the national income for
development of economy. It also helps economists to get idea for nation's financial viability. If
nominal GDP was considered as $200 billion due to increase in level of price in comparison to
another year GDP which is $170 billion then it will reflect change in price only.
Its advantages are:-
 This method helps in providing effective analysis and measure of economic activity
which is through growth rate of country and changes in economy of the country. It also
helps in providing rage of economic information which helps in determine strength and
weaknesses of various sectors of country.
 It also helps analyst to implement economic policy which provides a effective growth to
country.
Its limitations are as follows-
 It does not include non-market activities. Such activities based on the production and
consumption occurs outside the market economy such as unpaid house workers,
volunteer work etc.
The human development index
This index is known as composite statistic which is calculated on four basis which
includes life expectancy index, education index, mean years of schooling index, expected years
of schooling index and income index.
Its strength is as follows-
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 This is the factor which does not provide information only on income alone. Information
which provided by this index is measure with education, health status, poverty, and with
life expectancy which reflect true status of economy (Doner and Schneider, 2016).
 This helps the legislation of nation to develop appropriate policy so that areas which
needs improvement will get improved.
Its limitations are as follows-
 This method fails in taking account of qualitative factors such as cultural identity and
political freedoms etc.
GNP per capita
This is known as common factor which used to measure development of country.
Therefore, it is calculated as GNP divide by populations. It does not calculate certain forms of
account. For example:- if nominal GNP increase with 10% and inflation with 3% then GNP
growth will be measured as 7%.
Its strength are as follows-
 This method provides reliable information about income of person which gets on an
average which is more accurate in nature.
 Figures which generated with this method is easily obtainable than measurement from
human development index.
Its limitations are as follows-
 This method measure income of whole country which sometimes result in mislead and
policies will not be developed in accordance for countries growth.
Gross national product
It is the GDP of nation which put together to measure money which has been earned with
investment abroad minus income which earned within the nation. Its strength are as follows-
 With this method, economist will able to measure well-being which provides information
of standard of living of people across the nation. This theory provides an relationship
between consumers and firms with regards to goods and services.
 This method provides a calculation of marginal utility which provides information related
to consumer gains in market. Therefore, with this method monetary expenditures which
spend by consumers will be generated effectively.
Its limitations are as follows-
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 Accurate information of standard of living is not obtained with this method because GNP
increases year after years with poverty rate and with medians of incomes.
b.) comment on modern indicator that is Happiness which is known as the best indicator of
development
Yes this said truly that happiness is ultimate economic indicators which emphasis on
human satisfaction. A good increase in production and consumption will not be effective full for
economy of country if there is no increase in human satisfaction (Hák, Janoušková and Moldan,
2016). This is now recent factor which economist are considering for getting growth of economy.
In recent years, economists are founding ways which combine subjectivity survey with data's like
lifespan, income and eduction so that a pattern will get developed in making national happiness
index.
For example:- According to a survey of Harvard university in America, during past 35
years, per capita of income has been increased with almost 60%, new homes in cities increased
with 50% larger but the percentage of peoples who have admitted “very happy” or “pretty
happy” is constant with many years. Happiness is considered economic indicator because
nowadays people with huge money easily get into depression and will affect their own life.
Finland is known for happiest country according to report of happiness. Therefore, research has
been developed in economics known as Gross National Happiness which is a signal of building
economy which serves the best influenced cultures. A graph which measures peoples who say
that they are happy is as below-
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Government has also released a series of happiness studies to began tracking of well-
being with GDP of country. Britain has also been published new economics foundation which is
Happy Planet Index. This index shows possible for nation in creating high well-being for society
of country. To promote happiness, a new documentary which is called The Economics of
Happiness is also had been realised by government so that initiatives will get developed to create
happiness among peoples. Therefore, happiness is known as ultimate economic indicator.
TASK 3
a.) explanation on following obstacles which create middle-income trap in China
Middle-income trap is the situations which occurs in country when certain income attain
by country and that is get stuck at that level only. With that stuck of income, advanced
economics of China falls short. With this middle-income trap, GDP of China fall below 6.5
percent. Apart from normal growth of China, there are various factors which slow down its
economic convergence such as high debt levels and rapid population. Obstacles which creating
middle-income trap in China are as follows- International Trade Obstacle: China is continuously trying to pursue industrial policies
by which they will able access for import of goods, foreign manufacturers and to seek
foreign services. This limits are pursued by government of China so support Chinese
industries. Companies are facing unfavourable interpretation of trade regulations where
many countries has stopped trading from China (World Health Organization, 2016). For
example: China currently has 12% of US import and 9% with Japan, but with increasing
share of Chinese products in market, countries has reduced their import from China. International Financial Obstacles: Chinese products in market are highly criticised in
international market nowadays. This is because domestic products are less preferring by
the peoples across the nations. Because of that governments of countries imposed many
restriction for importing Chinese products in countries. Government borrowings, lending
practises, interconnectivity and sovereignty are the main international financial obstacles.
 Social Obstacles: now business peoples across the nations has been developed more
sensitive towards use of Chinese products in marketplace of countries. Social and cultural
factors are the one which faced by every foreign company because each country have its
own social culture and values. Therefore, for foreign companies, it is not possible to
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develop products in accordance with different social and cultural values. This problem
will also create an obstacle for Chinese companies. Examples of social behaviours are
poverty, drug abuse, alcohol abuse, economic deprivation, anti-social behaviour and
unemployment which majorly affect economics of country.
b.) explanation of three traps which affecting China to become the world leader
Other than middle-income trap, there are many other traps which faced by China for
becoming world leader. This three development traps are as follows-
Tacitus Trap: Chinese government also has to face this trap (Huang, 2017). This is trap
which describe situation where people will only consider lie or bad deed, no matter what
government has said. Therefore, prime minister of China also highlighted that it is the need to
maintain government credibility in order to overcome with this tacitus trap. To overcome with
this trap, government tried to introduced more transparency, and to restructure relation where
people will relay on them (Lim and et.al., 2016).
Thucydides Trap: this is the trap which also affecting China for becoming world leader.
According to this trap, rising power will challenge dominance of existing leader of market which
create a competitive dynamic for other leaders to lead in market. With this trap, other leaders of
market will challenge China which overall affecting it to become the world leader.
Kindleberger Trap: this is the another trap which affecting China to become the world
leader. Both Thucydides trap and Kindleberger trap known for danger inherent for shifting
balance of power. Kindleberger trap is the trap which contributes failure for international system
among global public. China has overcome with small capacity gaps, small amount of foreign
aids, lack of soft power and in domestic political challenges for becoming world leaders across
the nations.
These are the three traps which needs to overcome by Chinese government for becoming
world trade leaders. This factors majorly affecting economy of China, and because of that its
GDP gets decreases below 6.5 percentage.
TASK 4
a.) development status of European union
Natural factors
A large portion of Europe is occupied by the European union. It covers 4,422,773 km². Its
territory extends to four parts that is north-east, north-west, south-east and south-west. Therefore,
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its territories are north-east to Finland, Northwest to Ireland, south-east to Cyprus and south-east
to Iberia. Its location are seated in four different cities which includes Brusseles, Frankfurt,
Luxerbourg and Strasbour (Leigh and Blakely, 2016).
According to population and land area, united states of America is the third largest
country. It occupies an area of 3,794,100 square miles with border of Canada and Mexico.
United states of America is located in continent of North America with cover of 9,161,966
square kilometre of land and 664,709 square kilometre of water.
China is located in south-east Asia with the coastline of Pacific ocean. It has area of 9.6
million square kilometres and coastline of 18000 kilometres. China is located in the continent of
Asia with land of 9,569,901 square kilometres of land and 27,060 square kilometres of water.
Social factors
Age structure of European union from 2014 to 2017 is as follows-
Year 0-14 years 15-64 years 65 years and older
2017 15.41% 64.82% 19.77%
2016 15.43% 65.11% 19.46%
2015 15.49% 65.38% 19.14%
2014 15.51% 65.70% 18.80%
Average Life expectancy of European union is 79.6 years which is for both females and
males. Higher life expectancy is of females that is 82.4 and males life expectancy is lower than
females that is 76.6
According to 2017, 80% of age group between 25-54 years have completed upper
secondary level of education in comparison to 65% age group of 55 to 74.
Age structure of America from 2014 to 2017 is as follows-
Years 0-14 years 15-64 years 65 years and older
2017 18.91% 65.67% 15.41%
2016 19.03% 65.94% 15.03%
2015 19.21% 66.15% 14.64%
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2014 19.38% 66.35% 14.27%
Average life expectancy of united states of America according to 2016 is 78.69 years.
Female has ratio of 81 years and male has 76 years of life expectancy.
According to 2018, 56.6 million students has completed their secondary eduction.
Age structure of China from 2014 to 2017 is as follows-
Years 0-14 years 15-64 years 65 years and older
2017 16.80% 71.80% 11.40%
2016 16.70% 72.50% 10.80%
2015 16.50% 73.00% 10.50%
2014 16.50% 73.40% 10.10%
Average life expectancy of China according to 2016 is 76.25 years in which male has 75
years of age and female has 77.9 years of age.
It has the largest state run education system in the world. Therefore, it has 99% of
attendance for primary schools and more than 60% of students are graduates (Schumpeter,
2017).
b.) comparison of Dependency ratio of European union, United states of America and China
Dependency ratio is a measure which show ratio between number of dependent which
aged between 0-14 and over the age of 65 with total population aged to 15 to 64. It is the ratio
which shows comparison between amount of non working people to amount of working peoples.
Dependency ratio of China, Unite states of America and European union is as follows-
year European Union United states of
America
China
2017 29.90% 51.65% 39.20%
The Highest dependency ratio is of United states of America which means that those of
working age with overall economy in America faces great burden which is for supporting ageing
population.
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c.) comparison of all incomes which expressed in 2005 USD PPP
(I) Gini and Lorenz curve
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China (1980)
Year
Gini
Coefficient
1980 0.2908585
2014 0.51
Lorenz curve
13

USA (1980)
Year
Gini
Coefficient
1980 0.34
2014 0.4
14

Lorenz curve
15

EU (1980)
Year
Gini
Coefficient
1980 0.283533802
2014 0.305269084
Lorenz curve
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(ii)comparison of distribution of income across time for each country
Countr
y
Year Decile 1 Decile
2
Decile
3
Decile
4
Decile
5
Decile
6
Decile
7
Decile
8
Decile
9
Decile
10
China 1980 79 113 146 177 210 245 286 336 404 520
China 2014 448 927 1440 2008 2659 3445 4457 5911 8473 18689
%
chang
e
467% 720% 886% 1034
%
1166
%
1306
%
1458
%
1659
%
1997
%
3494
%
USA 1980 3392 5820 7855 9724 11574 13549 15843 18839 23622 37949
USA 2014 3778 6534 9069 11552 14132 16993 20429 25061 32763 60418
%
chang
11% 12% 15% 19% 22% 25% 29% 33% 39% 59%
17

e
EU 1980 68840 96882 11869
1
13815
5
15720
5
17742
9
20092
1
23164
5
28087
7
44253
5
EU 2014 80539 12320
6
15572
2
18407
5
21129
9
23978
3
27249
2
31504
2
38373
2
64097
7
%
chang
e
17% 27% 31% 33% 34% 35% 36% 36% 37% 45%
Across time is as follows:
EU: there is also been increased from 17% to 45% which from 1980 to 2014. Overall income
distribution across the time has been increases in country.
USA: USA has also achieved better growth which is from 11% to 59%. It means that country has
improved its income distribution growth through 1980 to 2014.
China: according to above table, it is interpreted that throughout year from 1980 to 2014, there
has been tremendous growth, country has achieved across the time for its income distribution.
Growth have been achieved from 467% to 3494%
(iii) comparison of distribution of income across countries for each country
Decile 1 Decile 2 Decile 3 Decile 4 Decile 5 Decile 6 Decile 7 Decile 8 Decile 9 Decile 1
0
China 79 113 146 177 210 245 286 336 404 520
USA 3392 5820 7855 9724 11574 13549 15843 18839 23622 37949
EU 68840 96882 118691 138155 157205 177429 200921 231645 280877 442535
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Across countries is as follows-
Across the time frame, as compared to China and USA, European union is the country
which has achieved effective growth in accordance with income distribution.
(iii) Some Suggestion on similarities and difference between countries:
From political point of view, China has removed two-term limit on presidency so that power
remain in hands of president. To solve financial problems China has increase oversight with
world's second largest banking institution.
USA throughout 1980-2014 has developed tremendous change for development of economy and
makes country a developed nation. Major development of industries have taken place in both
European union and USA.
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TASK 5
Economic development theory which contrast realities of the European union, united states of
America and China
For the development of growth and economy, European union has adopted Rostow's Five
stages of economic growth model. This is the model which is generally adopted by developed
countries for getting growth with five stages of development. Five stages are:
Traditional society: this is the step in which country focuses on agriculture economy of
substance farming. To increase labour productivity and surplus of output by selling domestic and
overseas markets.
Pre-conditions for take-off: agriculture is a more mechanised output which is traded by
country. By saving and investing grow, Europe will able to achieve growth in its GDP.
Take-off: in this step, focus of country is on manufacturing industries by which 15%
GDP of country get increased. In this step, agriculture assume for lesser importance, and focus is
on the industries of countries (Bergsten, 2018).
Drive to maturity: to develop industries more diverse, country has more focus on the
technological development in industries so that growth of economy get achieved.
Age of mass consumption: by increasing customer expenditure, output level get
increased. Shift towards tertiary sector helps country in getting overall growth in economy.
With these stages of theory European union has been able to achieve maximum growth
for country's and for its development of economy. This helps in getting effective economic
growth of country and in reducing poverty in country.
Theory which adopted by China
For getting economic development, Chins has adopted Dependency theory in which
understanding of factors which underdeveloped and which is imposed by global and political
order has been analysed. This theory mainly adopted by developing countries in which
underdeveloped factors which caused peripheral position of counties of world. To get the growth
of country in worldwide, China has developed strategies which is by selling its own products and
services to other countries in cheap rate which helps them in capturing business market at world
level. For example:- now in across all market, people which does not able to afford high ranges
of products will only consider buying products which have fair price. This will overall helps
China in becoming global leader in across all the marketplace of nation.
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Theory which adopted by United states of America
For the development of economy, United states of America has adopted Endogenous growth
theory by which country's main focus is on investment on human capital, innovation and
knowledge so that significant contribution will be provided by people for the development of
economy. Applying of this theory helps in engaging long term growth of country. For example :-
US government mainly focus on providing guidance to society regarding their completion of
education so that people will able to selection job in accordance with their occupation. To
developed skilled workers, government also developed federal set of policies to provide effective
loan with less interest to students so that they will able to complete their education and will able
to earn high income. This education development will help government for developing effective
economic growth of country. This also helps government in getting skilled workers more than
compared to unskilled workers in service sector areas of nation so that greater earning in people
will help government in getting better economic growth of country.
TASK 6
Discussion on trends, problems and challenges of development feed by UNDP-UNRISD report
Agenda of countries is by 2030, sustainable development needs to commit for promoting
and for developing balanced way by economically, socially and environmentally so that special
attention has been provided to people who are poor and most excluded. This mission seems to be
impossible but several economists have presented their reports in which six mega trends are
given to meet sustainable development goals by 2030 (Tega, 2018).
This mega trends are- poverty and inequalities, demography, environmental degradation
and climate change, shocks and crises, development cooperation and financing for development
ad technological innovations. With these six steps, some are considered as positive changes
which helps in reducing poverty and some are considered as the significant risks for development
of sustainable development goals.
TASK 7
Explanation of five ways which affecting practitioners of international development 2030 agenda
1. The SDG's have recast development as shared, universal enterprise
To achieve agenda of sustainable development by 2030, many countries are doubted
about its implementation in worldwide. Coherent and effective actions needs to take place for
such wide agenda of country. Therefore, for its successful implication, Millennium development
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goals has identifies actions which taken in developing countries with support from developed
countries (Lee and et.al., 2016). Therefore, SDG's have recast development as shared, universal
enterprise. With this recasting, new framework has been developed which is beyond aid industry
and by applying new partnership approaches to achieve SDG.
2. International development is seeking to incorporate environmental concern to greater
extent than before
For adopting 2030 agenda, various incorporate environment changes has been concerned
in greater extent (Tao, 2017). For this UN Member has promoted cases for poorest countries for
look on international trade, investment and for collection of domestic tax revenue fuel
development. This concern is mainly focuses on to reduce poverty in countries.
3. Poor countries are increasingly recognised as stewards of planetary resources for all
humanity
According to this statement, stewardship role is to look on countries which are poor with
gross domestic product but they are rich in their natural resources so that different kind of
development will get developed by sustainable approaches.
4. 2030 agenda which brought higher expectations for monitoring of progress
Countries agenda is to follow-up and review one of debated topic among countries so that
strategies will get developed to producing sufficient and credible data which overall provides
growth in developing SDG.
5. Crowd-sourcing of development solutions which become more frequent and respected
complement to technical, expert-led approaches
When a conference has been developed for sustainable development in June 2012,
agenda has been developed for online consultation through UN and civil society (Lu and et.al.,
2015). This agenda is developed with lines of world we want so that participation will get occur
at international level. Crowd-sourcing is web based communication which is not new but world
we want process leads to downfall for this approach.
TASK 8
Explanation on UN's sustainable goals which has stalled in recent years
United nations have decided to achieve sustainable development to solve many of
civilization pressing challenges (Leitner and Tillemann, 2017). The project which United nation
22

wants to bring is the most ambitious and if it will successful then many challenges of civilization
get solved. By 2030, United Nation wants to achieve sustainable development by applying
straightforward fix.
These sustainable development growth was adopted by 193 other nations two years ago
with aim of reducing poverty, to address climate change and to build effect full societies across
the nation (Costanza and et.al., 2016). But this project has been failed now because of
insufficient input from public and from developing countries. Another reason for its failure is
because of high extraordinary cost. Price tag which measure for 169 targets is estimates at $45
trillion. Focus of countries is to work on sustainability, hunger and for child mortality. Therefore,
10 steps are developed to achieve sustainable development goals by countries.
These are promotion of rule of law and justice, elimination of extreme poverty, access to
safe, effective and for affordable health care and other health related things, to ensure rights of
women's, ensure of government accountability and transparency, to educate children from
primary and secondary schools, end of discrimination, expansion of safe drinking water,
promotion of social, economic and political inclusion and to end corruption and bribery.
TASK 9
Discussion on BRICS nations which spearheaded by China, which is representing challenges to
global leaders of countries and explanation of power shifts
BRICS (Brazil, Russia, India, China and South Africa) has developed an initiative to come
together for developing economics with different stages of development. To achieve set of goals,
these countries come together and developed a geopolitical moment (Schaltegger, Beckmann and
Hockerts, 2018). Among all these countries, China has been considered as the dominating group
which is careful for not push its interest too hard.
China played an important role for achieving progress among cooperation for BRICS
countries. Its members have pledged $10 billion to release common strategy for the development
of economic and trade cooperation. China's role is huge where they are implementing national
manufacturing policy to overcome with obstacles for the development of infrastructure. China
also providing cheap manufactured products to provide keen competition among all the countries
and to become global leader of world.
23

TASK 10
Detailed appraisal for both given considerations
According to given considerations, answer would be both international institutions have
to reform and transform both considerations for better fulfilment of duty. A good institution will
always consider as matter of development (Sobolevsky and et.al., 2017). They help countries to
address challenges which helps in managing systems of schools and irrigation by raising and
spending revenues. To end poverty, new consensus which is more effective institution have been
developed by countries. According to current statistical data, there are across $1 billion people
who live under poverty line which majorly affecting economy worldwide. Increasing population
is the major factor on which government has to work so that unemployment rate and poverty
across the nation will get reduced and economic growth will get achieved.
To end poverty, many countries has developed effective institution which work for the
development of education system among children and peoples which overall helps for beginning
of improving quality. China is the country which has developed impressive infrastructure so that
stakeholders will get involved for ending poverty in country. Approaches have been initiated
with help of institution to reduce poverty in countries which are as follows-
 Broad and effective systematic effort have been developed for generating evidence which
overall provide positive impact countries economy. Such as education programs and
social plays which motivate people to complete their education which helps them in
earning more for their families.
 Factors are developed for raising information which helps in improving economy of
country. One best factor that is now considered as economic indicator is happiness.
Happy people work with motivation and will earn high which helps in developing
economic growth of country.
CONCLUSION
From the above report, it is summarised there must be a proper strategies and policies of
government in each country which overall contribute in developing its economy. This
assessment provides explanation about some economic indicators and factors which helps in
sustainable development of countries. Further, in this report explanation is provided on the
agenda of 2030 (SDG) in which study provide explanation of ways which helps in reducing
poverty of countries.
24

REFERENCES
Books and Journals
Bergsten, C.F., 2018. China and the United States: Trade Conflict and Systemic
Competition (No. PB18-21).
Boianovsky, M., 2019. The Development Economist as Historian of Economics: The Case of
William J. Barber. Journal of the History of Economic Thought.
Costanza, R and et.al., 2016. Modelling and measuring sustainable wellbeing in connection with
the UN Sustainable Development Goals. Ecological Economics. 130. pp.350-355.
Doner, R.F. and Schneider, B.R., 2016. The middle-income trap: more politics than
economics. World Politics. 68(4). pp.608-644.
Hák, T., Janoušková, S. and Moldan, B., 2016. Sustainable Development Goals: A need for
relevant indicators. Ecological Indicators. 60. pp.565-573.
Lee, B.X and et.al., 2016. Transforming our world: implementing the 2030 agenda through
sustainable development goal indicators. Journal of public health policy. 37(1). pp.13-31.
Leigh, N.G. and Blakely, E.J., 2016. Planning local economic development: Theory and
practice. SAGE publications.
Lim, S.S and et.al., 2016. Measuring the health-related Sustainable Development Goals in 188
countries: a baseline analysis from the Global Burden of Disease Study 2015. The
Lancet. 388(10053). pp.1813-1850.
Lu, Y and et.al., 2015. Five priorities for the UN sustainable development
goals. Nature. 520(7548). pp.432-433.
Roth, B., Hahn, E. and Spinath, F.M., 2017. Income inequality, life satisfaction, and economic
worries. Social Psychological and Personality Science. 8(2). pp.133-141.
Schaltegger, S., Beckmann, M. and Hockerts, K., 2018. Collaborative entrepreneurship for
sustainability. Creating solutions in light of the UN sustainable development
goals. International Journal of Entrepreneurial Venturing. 10(2). pp.131-152.
Schumpeter, J.A., 2017. Theory of economic development. Routledge.
25

Sobolevsky, S and et.al., 2017, December. Predicting regional economic indices using big data
of individual bank card transactions. In Big Data (Big Data), 2017 IEEE International
Conference on (pp. 1313-1318). IEEE.
Tamura, R and et.al., 2019. Economic growth in the long run. Journal of Development
Economics. 137. pp.1-35.
Tao, X., 2017. China-US Relations during the Trump Administration: Mixed Signals, Increased
Risks. Asia Policy. 24(1). pp.5-12.
Tega, Y., 2018. Destined for War: Can America and China Escape Thucydides’s Trap?.
Tomos, F and et.al., 2019. Inequalities: A Concern for Capitalism and Global Strategy.
In Women Entrepreneurs and Strategic Decision Making in the Global Economy (pp. 1-
19). IGI Global.
World Health Organization, 2016. World health statistics 2016: monitoring health for the SDGs
sustainable development goals. World Health Organization.
Online
Huang, Y., 2017. The Four Traps China May Fall Into. [Online]. Available through
<https://www.cfr.org/blog/four-traps-china-may-fall>.
Leitner, J., and Tillemann, T., 2017. Why are the United Nations Sustainability Development
Goals Stalling. [Online]. Available through <https://psmag.com/environment/why-are-the-
uns-sustainable-development-goals-stalling>.
26

APPENDIX
1. China
(1980)
# of Decile 10
Decile Income Distribution
1 79
2 113
3 146
4 177
5 210
6 245
7 286
8 336
9 404
10 520
Mean 251.6
j= 1 2 3 4 5 6 7 8 9 10
1 0 34 67 98 131 166 207 257 325 441
2 34 0 33 64 97 132 173 223 291 407
3 67 33 0 31 64 99 140 190 258 374
4 98 64 31 0 33 68 109 159 227 343
5 131 97 64 33 0 35 76 126 194 310
6 166 132 99 68 35 0 41 91 159 275
7 207 173 140 109 76 41 0 50 118 234
8 257 223 190 159 126 91 50 0 68 184
9 325 291 258 227 194 159 118 68 0 116
10 441 407 374 343 310 275 234 184 116 0
Vertical
Sum 1726 1454 1256 1132 1066 1066 1148 1348 1756 2684
Horizonta
l Sum 14636
Lorenz curve
# of
individual
s 10
Individual Income
1 79
27

2 113
3 146
4 177
5 210
6 245
7 286
8 336
9 404
10 520
Total 2516
Population
Share
Cumulative
Income
Cumulative
Share
Perfec
t
Equali
ty
0 0 0 0
0.1 79 0.03139905 0.1
0.2 192 0.07631161 0.2
0.3 338 0.13434022 0.3
0.4 515 0.20468998 0.4
0.5 725 0.2881558 0.5
0.6 970 0.38553259 0.6
0.7 1256 0.49920509 0.7
0.8 1592 0.6327504 0.8
0.9 1996 0.79332273 0.9
1 2516 1 1
(2014)
# of Decile 10
Decile Income Distribution
1 448
2 927
3 1440
4 2008
5 2659
6 3445
28

7 4457
8 5911
9 8473
10 18689
Mean 4845.7
j= 1 2 3 4 5 6 7 8 9 10
1 0 479 992 1560 2211 2997 4009 5463 8025 18241
2 479 0 513 1081 1732 2518 3530 4984 7546 17762
3 992 513 0 568 1219 2005 3017 4471 7033 17249
4 1560 1081 568 0 651 1437 2449 3903 6465 16681
5 2211 1732 1219 651 0 786 1798 3252 5814 16030
6 2997 2518 2005 1437 786 0 1012 2466 5028 15244
7 4009 3530 3017 2449 1798 1012 0 1454 4016 14232
8 5463 4984 4471 3903 3252 2466 1454 0 2562 12778
9 8025 7546 7033 6465 5814 5028 4016 2562 0 10216
10 18241 17762 17249 16681 16030 15244 14232 12778 10216 0
Vertic
al Sum
43977 40145 37067 34795 33493 33493 35517 41333 56705 138433
Horizo
ntal
Sum
494958
Lorenz curve
# of Decile 10
Decile Income distribution
29

1 448
2 927
3 1440
4 2008
5 2659
6 3445
7 4457
8 5911
9 8473
10 18689
Total 48457
Population Share Cumulative Income Cumulative Share Perfect Equality
0 0 0 0
0.1 448 0.00924531 0.1
0.2 1375 0.028375673 0.2
0.3 2815 0.058092742 0.3
0.4 4823 0.099531543 0.4
0.5 7482 0.154404936 0.5
0.6 10927 0.225498896 0.6
0.7 15384 0.317477351 0.7
0.8 21295 0.439461791 0.8
0.9 29768 0.614317849 0.9
1 48457 1 1
2. USA
30

1980
# of Decile 10
Decile Income
distribution
1 3392
2 5820
3 7855
4 9724
5 11574
6 13549
7 15843
8 18839
9 23622
10 37949
Mean 14816.7
j= 1 2 3 4 5 6 7 8 9 10
1 0 2428 4463 6332 8182 10157 12451 15447 20230 34557
2 2428 0 2035 3904 5754 7729 10023 13019 17802 32129
3 4463 2035 0 1869 3719 5694 7988 10984 15767 30094
4 6332 3904 1869 0 1850 3825 6119 9115 13898 28225
5 8182 5754 3719 1850 0 1975 4269 7265 12048 26375
6 10157 7729 5694 3825 1975 0 2294 5290 10073 24400
7 12451 10023 7988 6119 4269 2294 0 2996 7779 22106
8 15447 13019 10984 9115 7265 5290 2996 0 4783 19110
9 20230 17802 15767 13898 12048 10073 7779 4783 0 14327
10 34557 32129 30094 28225 26375 24400 22106 19110 14327 0
Vertic
al Sum
114247 94823 82613 75137 71437 71437 76025 88009 116707 231323
31

Horizo
ntal
Sum
102175
8
Lorenz curve
# of Decile 10
Decile Income
distribution
1 3392
2 5820
3 7855
4 9724
5 11574
6 13549
7 15843
8 18839
9 23622
10 37949
Total 148167
Population
Share
Cumulativ
e Income
Cumulativ
e Share
Perfect
Equality
0 0 0 0
0.1 3392 0.02289308
7
0.1
0.2 9212 0.06217308
8
0.2
0.3 17067 0.11518759 0.3
32

2
0.4 26791 0.18081624
1
0.4
0.5 38365 0.25893080
1
0.5
0.6 51914 0.35037491
5
0.6
0.7 67757 0.45730155
8
0.7
0.8 86596 0.58444862
9
0.8
0.9 110218 0.74387684
2
0.9
1 148167 1 1
2014
# of Decile 10
Decile Income
Distribution
1 3778
2 6534
3 9069
4 11552
5 14132
6 16993
7 20429
8 25061
9 32763
10 60418
33

Mean 20072.9
j= 1 2 3 4 5 6 7 8 9 10
1 0 2756 5291 7774 10354 13215 16651 21283 28985 56640
2 2756 0 2535 5018 7598 10459 13895 18527 26229 53884
3 5291 2535 0 2483 5063 7924 11360 15992 23694 51349
4 7774 5018 2483 0 2580 5441 8877 13509 21211 48866
5 10354 7598 5063 2580 0 2861 6297 10929 18631 46286
6 13215 10459 7924 5441 2861 0 3436 8068 15770 43425
7 16651 13895 11360 8877 6297 3436 0 4632 12334 39989
8 21283 18527 15992 13509 10929 8068 4632 0 7702 35357
9 28985 26229 23694 21211 18631 15770 12334 7702 0 27655
10 56640 53884 51349 48866 46286 43425 39989 35357 27655 0
Vertic
al Sum
162949 140901 125691 115759 110599 110599 117471 135999 182211 403451
Horizo
ntal
Sum
160563
0
Lorenz curve
# of Decile 10
Decile Income distribution
1 3778
2 6534
3 9069
4 11552
5 14132
6 16993
7 20429
34

8 25061
9 32763
10 60418
Total 200729
Population
Share
Cumulativ
e Income
Cumulativ
e Share
Perfect
Equality
0 0 0 0
0.1 3778 0.01882139
6
0.1
0.2 10312 0.05137274
6
0.2
0.3 19381 0.09655306
4
0.3
0.4 30933 0.15410329
3
0.4
0.5 45065 0.22450667
3
0.5
0.6 62058 0.3091631 0.6
0.7 82487 0.41093713
4
0.7
0.8 107548 0.53578705
6
0.8
0.9 140311 0.69900711
9
0.9
1 200729 1 1
3. EU
35

1980
# of Decile 10
Decile Income
distributio
n
1 68840
2 96882
3 118691
4 138155
5 157205
6 177429
7 200921
8 231645
9 280877
10 442535
Mean 191318
j= 1 2 3 4 5 6 7 8 9 10
1 0 28042 49851 69315 88365 108589 132081 162805 212037 373695
2 28042 0 21809 41273 60323 80547 104039 134763 183995 345653
3 49851 21809 0 19464 38514 58738 82230 112954 162186 323844
4 69315 41273 19464 0 19050 39274 62766 93490 142722 304380
5 88365 60323 38514 19050 0 20224 43716 74440 123672 285330
6 108589 80547 58738 39274 20224 0 23492 54216 103448 265106
7 132081 104039 82230 62766 43716 23492 0 30724 79956 241614
8 162805 134763 112954 93490 74440 54216 30724 0 49232 210890
9 212037 183995 162186 142722 123672 103448 79956 49232 0 161658
10 373695 345653 323844 304380 285330 265106 241614 210890 161658 0
36

Vertic
al Sum
122478
0
100044
4
869590 791734 753634 753634 800618 923514 121890
6
251217
0
Horizo
ntal
Sum
108490
24
Lorenz curve
# of Decile 10
Decile Income
distribution
1 68840
2 96882
3 118691
4 138155
5 157205
6 177429
7 200921
8 231645
9 280877
10 442535
Total 1913180
Population
Share
Cumulativ
e Income
Cumulativ
e Share
Perfect
Equality
0 0 0 0
0.1 68840 0.03598197
8
0.1
0.2 165722 0.08662122 0.2
37