Malta Development Project

This project provides a comprehensive analysis of Malta's economic and social development, covering various aspects like micro and macroeconomic influences, development indicators, international development policies, and the challenges and opportunities of sustainable development. It also evaluates the impact of the 2030 Agenda and explores the role of BRICS in global governance. The project concludes with a detailed appraisal of international institutions' duty of assistance and a case study of a potential environmental project in Malta.

Question book

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) 3 Microeconomic and Macroeconomics influences on the level of inequality and
sustainability................................................................................................................................1
b) Consensus between macro and micro development economists.............................................2
TASK 2............................................................................................................................................2
a) Strengths and limitations of classic indices which is being used to measure the development
......................................................................................................................................................2
b) Comment on the modern indicator, Happiness.......................................................................3
TASK 3............................................................................................................................................4
a) Middle income trap can be avoid by china .............................................................................4
b) Challenges that is being possess by traps to china's economic development .........................4
TASK 4............................................................................................................................................5
a) Compare and contrast the development status of EU, USA and CHINA................................5
b) Compare and contrast the dependency ratio of EU, USA and CHINA...................................6
c) Compare and contrast the income deciles of EU, USA and CHINA......................................7
TASK 5............................................................................................................................................7
Economic development theory ...................................................................................................7
TASK 6............................................................................................................................................8
Challenges and opportunities in the implementation of sustainable development......................8
TASK 7............................................................................................................................................8
Evaluation of impact of 2030 agenda on practitioners of international development.................8
TASK 8............................................................................................................................................9
UN's sustainable development goals ...........................................................................................9
TASK 9..........................................................................................................................................10
TASK 10 .......................................................................................................................................10
Detailed appraisal of the two considerations.............................................................................10
Malta's development status........................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Malta is a southern European island country whose economic is modern. Malta is
considered to be highly industrialised and service based economy. It is counted as high-income
and advanced economy in the world. Its currency is Euro (EUR - €) and it is a member of
European Union (EU).
Present report will highlight the development economics in the context of micro and
macro economic consideration, different ways of measuring development status of the country
and international development policies and their specificities. It will also tell about the
challenges of development praxis, characteristics of developed countries and its compared with
developing countries. It will also describe the features of traditional theories of economic
development and problem & challenges related to development praxis. It will assess the progress
and remaining gaps in the implementation and evaluate the connections between globalization
debate and development debate. Lastly, it will evaluate the efficiency of economic development.
TASK 1
a) 3 Microeconomic and Macroeconomics influences on the level of inequality and sustainability
3 Microeconomic influences are as follows:
Trade Union protection:- Trade union are made for protecting the interest of workers in the
organization. It affects the level of inequality as when all the members of trade union cannot
come together to fight for their interest here the inequality between workers breakdown. They
come together for the purpose of collective bargaining for the purpose of improving their
working conditions. Sustainability is also disturbed if workers are not agreed for their common
interest in the company.
Discrimination in labour market:- Discrimination leads to bring inequality among employees
in the organization. As it create differences between employees based on gender, equality, age,
etc (Johnson, 2017). This creates a negative impact on employees of Malta as they discriminate
people on this basis and it also disturbs sustainability in the organization.
Statutory minimum wages:- Providing minimum wages to employees will create inequality
among them in Malta as it is a microeconomic influence that will have an impact on employees
as there wages are given on basis of their work. This will influence level of inequality and
sustainability.
3 Macroeconomic influences are as follows:
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Fiscal Resources:- Fiscal resource are related to the financial resources of the organization. If
company's resources are utilized fully then it will not create a state of inequality in the company.
These resources also have an impact on sustainability when improper availability is not there.
GDP:- GDP stands for gross domestic product as if the GDP rate is increasing that will lead to
increase in the national income and it will affect level of inequality as well as sustainability.
Inflation rate:- Increase in price rise in the economy will lead to decrease purchasing power of
the people because of level of inequality and due to it sustainability also disturbed (Laidler,
2015).
The above microeconomic and macroeconomic influences level of inequality and
sustainability in Malta.
b) Consensus between macro and micro development economists
Microeconomic focuses on individual needs and wants of a consumer while
macroeconomic focuses on economy as whole. Microeconomic factors include supply and
demand, price that will have a greater impact on the economy. Supply and demand of a product
is based upon price. If price is increasing then demand decrease ultimately supply is also
decreased and when price is decreased supply will be increasing that will have an impact on
GDP of the country. Macroeconomic consists of GDP and national income. If the GDP growth
rate of the economy is increasing that will be beneficial for the Malta economy.
TASK 2
a) Strengths and limitations of classic indices which is being used to measure the development
Following four classic indices are as follows -
Per capita income – It refers to the measurement of average income earned by per person in a
particular country in a given particular year. Malta's per capita income Strengths of this indicator
is that it involves the income of per person which is an important aspect of economic
development. Limitation of this indicator is that it represent the average which doesn't represent
the actual standards of living of Maltese.
% of population BPL – It refers to the indicator which is used as a benchmark to identify the
population living in the poverty and need government aid to improve the life quality. This
indicator allows government to get to know about the real conditions of their economy. It doesn't
represent the amount of consecutive years of people living below poverty line.
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Measure of inequality – It is the most common used measurement or indicator which is also
known as Gini Co-efficient (Sookias, Passmore and Atkinson, 2018). It measures the equality in
the distribution of income. It doesn't take consideration of size of economy, which is an
advantage. It is not accurate measurement because it will increase in case of increase in the
inequality of distribution of income.
Human development indicator (HDI) – It is also known as Human development index which is
the composite index of life expectancy, per capita and education indicators. It is useful because it
looks at the other aspects of human development. Human development also depends upon the
access to clean water, accurate health services and levels of population etc. which HDI doesn't
take into account.
b) Comment on the modern indicator, Happiness
Nowadays, Happiness is considered to be an economic indicator which is becoming
popular. Here happiness refers to the satisfaction and getting basic needs of human. This can be
measure by sustainable and equitable socio – economic development, environmental
conservation, preservation and promotion of culture and good governance.
There are nine domains which can be helpful in measurement of happiness of Maltese
population. These 9 domains are community vitality, health, psychological well-being, time use,
education, cultural diversity and resilience, good governance, community vitality, ecological
diversity and resilience, and living standards.
It is considered to be the best indicator of development as rest of indicators are
contribution to these indicators (Asongu and Nwachukwu, 2016). It is true statement because
Happiness indicators involves various combination of indicators which show lifespan, income
distribution, per capita income, health services and education.
In the case of MALTA country, its rank is 22 out of 156. Its score is 6.627. its GDP per
capita is 1.270, social support is 1.525, its healthy life expectancy is .884, its freedom to make
life choices is .376 and its perceptions of corruption is 0142, which is very good in every aspects.
This lead Maltese to grow and develop its social and economic standards. If there is growth in
development level means economic and social aspects get improve which improve the quality of
life and people become healthy and happy.
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TASK 3
a) Middle income trap can be avoid by china
Yes china can avoided middle income trap. As manufacturing sector and technological
capacities are important for the china to achieve the goal (Guerrazzi, 2016). This middle income
trap can be avoided by growing manufacturing sector of the country.
Different obstacles of china's economic development are as follows:
International trade obstacles:- International trade obstacles refers to government barriers that
is imposed on export and import of goods and services that will decrease economic efficiency of
the country. Therefore, in china economic development is getting down as earlier china is
developed country as compared to others. Its growth and development is decreasing day by day.
It is difficult for china to maintain growth and development in the country.
International Financial Obstacles:- These are the barriers that is related to problem of finance
that is being occurred in future course of action. It is difficult for china to collect finance for
growth and development of the economy of china (Nilsson, Griggs and Visbeck, 2016).For
expanding business at international level there will be problem occur regarding finance that is
being needed for china to run its operation.
Social/ Cultural Obstacles:- These are the barriers that is based on lifestyle, culture, social
norms, attitude of people in the economy of china (Baddeley, 2017). These barriers also affect
the business operations and its growth and development. Different people is having different
attitude and culture so it sometimes brings barrier among companies in china.
b) Challenges that is being possess by traps to china's economic development
Innovation is the main purpose of development of china. Science and technology plays an
important role for surviving in the economy. Therefore, advancement in the technology plays an
important role in the economy. Adopting new technology is the biggest challenge for the
development of china. China's economic development can be affected by pollution that is being
created in the environment. It is another biggest challenge for preventing environment from
pollution. It is important for china to developed its economy for the future course of action.
Demographic factors also affect the economic development of china. As there will be equal
distribution of population in the china. Artificial intelligence is another factor that influence
economy of china in future course of action. It will be difficult for china to adopt the operations
for future. It is being said that china's economic condition is very bad nowadays as it is being
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connected with economy of the china (Martins, Gan and Ferreira-Lopes, 2017).China is a
developed country but from past year its growth slows down and the development is based on
traps of the country. It is very essential to evaluate the factors that become challenges in the
future for china. It is important for china to evaluate development strategy in china . It is
important to maintain the culture and social factors for the development of china.
TASK 4
a) Compare and contrast the development status of EU, USA and CHINA
The significant to know about the development status of various countries because it
gives a picture of countries' access to its employment conditions, its industry diversification
conditions, its business retention, expansion and business world conditions, its quality of life of
population & their social life conditions and economy fortification conditions (Visconti and et.
al., 2016).
There are 3 types of development status regarding countries. These 3 types of status are
Developed Countries, Developing Countries and Under developed Countries.
COMPARE AND CONTRAST OF THE DEVELOPMENT STATUS OF EU, USA AND
CHINA
FACTORS EUROPEAN UNION UNITED STATES
OF AMERICA
CHINA
Development status It is developed
country.
It is developed
country.
It is developing
country.
Land resources Its land resources are
spread over
154,539.82 sq km
since 2011.
Its land resources are
spread over 264,000 sq
km till 2012.
Its land resources are
spread over 690,070 sq
km till 2012.
Geography It is less than twice the
geographical size of
the USA.
It has huge
geographical area.
It is sightly small than
United States.
Location Its location is Europe. Its location is North
America.
Its location is Asia.
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Age structure From the estimation of
2017 -
0 – 14 years – 15.5%
15 – 24 years – 10.9%
25 – 54 years – 41.8%
55 – 64 years – 12.9%
65 and above – 19.1%
From the estimation of
2017 -
0 – 14 years – 18.73%
15 – 24 years –
13.27%
25 – 54 years –
39.45%
55 – 64 years –
12.91%
65 and above –
15.63%
From the estimation of
2017 -
0 – 14 years – 17.15%
15 – 24 years –
12.78%
25 – 54 years –
48.51%
55 – 64 years –
10.75%
65 and above –
10.81%
Life expectancy 80.2 years 80 years 75.7 years
Education regarding
school life expectancy
17 years 14 years
GDP per capita from
the estimation of 2016
$39,200 (Ramos and
et. al.,2018).
$59,500 $16,600
Unemployment rate
from the estimation of
2017
7.20% 4.40% 4.00%
Inflation rate from the
estimation of 2017
1.60% 2.10% 1.80%
Public debt rate of
GDP from the
estimation of 2017
81.60% 77.40% 18.60%
FDI $5.148 trillion (2012) $4.084 trillion (31
December 2017 est.)
$1.514 trillion (31
December 2017 est.)
Technologies
advancement
Technologically
Advanced
Technologically
Advanced
Technologically
Advanced
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Political structure Intergovernmental constitutional federal
republic
communist party-led
state
b) Compare and contrast the dependency ratio of EU, USA and CHINA
DEPENDENCY RATIO
It is a measurement of the number of dependents aged 0 – 14 and above the age of 65 and
compared it with the age of 15 – 64.
FACTORS EUROPEAN UNION UNITED STATES
OF AMERICA
CHINA
Dependency Ratio
from the estimation of
2017
29.90% 52.27% 39.20%
c) Compare and contrast the income deciles of EU, USA and CHINA
TASK 5
Economic development theory
Classical Theory of economic development
According to this theory growth of the economy plays an important role in achieving
success for future course of action. This theory depict price, rent and economic affairs of the
country. It helps in promoting public interest that will create competition among people in the
country. There is no intervention from the government that the particular thing is to be restricted
from the country. This facilitates easy flow of money from one country to another that enhances
growth and development of country (Listokin, 2019).This will create less labour division in the
economy as all the labour will be treated equally. It also emphasizes on free trade in the
economy.
Classical theory of economic development contrast realities of European Union, the
United States of America and China as this theory emphasize on doing free trade from different
countries in the country. European Union economic development is lenient as there is no
restriction in using import and export from outside countries. It facilitates easy export and import
in the country. This is beneficial for all the sector of the country. In United states also there is no
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restriction on trade or giving low wages to the employees of the country. In china also free trade
is being conducted and there is no tariff policy in the country (What is sustainable development,
2019).As it is being noted that America, United states of America and China's economy is
considering to be good for all the country.
TASK 6
Challenges and opportunities in the implementation of sustainable development
The main challenges of the sustainable development are availability of lack of financial
resources in the country. As these resources helps in development of nation. As sustainable
development plays an important role in the country for maintaining sustainability for future
course of action (Mitchell, 2019). The priority is given to many people that is being considered
to be important for development of economy. Natural calamities such as earthquake, flood,
landslide will affect the sustainability in economy. There may conflict arises in the investment
between profit that will lead to provide sustainable technology to the people in the economy.
Corruption is also another factor that influence working of people in the economy. Measures can
be taken to protect the environment so that it emphasize sustainability in the country. Lack of
efforts is given by municipal levels in the country. There are many factors that will have greater
impact on the economy. Sustainability plays a crucial role for the country's development as it is
necessary to maintain good environment in the country that will lead to create better impact on
future. Unfortunately, environmental issues is rising for the country. As it may have bad impact
that will create a greater impact on economy (Carley and Christie, I2017). There is lack of
awareness regarding environmental issues that is occurred in the economy for future course of
action. Waste management will affect the environment of the country as it will lead to create
many issues in the country regarding sustainability. It has a greater impact on the economy for
considering various factors of the economy.
TASK 7
Evaluation of impact of 2030 agenda on practitioners of international development
There are 5 ways in which 2030 agenda is affecting practitioners of international
development. These 5 ways are as follows -
1. For the development of developing countries, they are taking help of developed countries,
this lead SDGs to recast the development of world as a shared, common and universal
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objectives which must be achieved by all the countries till 2030. It leads underdeveloped
countries to participate in international market and international investment.
2. All the countries concern for new environmental issues at the global level which
negatively impact the development status of the countries (Lew and et. al.,2016). For that,
they did initiative UNDP and UNEP where One health approach is being used. In this
approach, physicians, ecologists and veterinarians are coming together and work on the
framework in which 3 dimensions are focus such as Economic, Social and
Environmental.
3. Poor countries are getting recognized at the global level due to rich in natural resources
which aids in sustainable growth of countries. Before 2030 agenda, development of
countries was based on the needs of populations. But after 2030 agenda, development of
countries are based on one planet approach which starts in the form of traction in
development circles.
4. For the monitoring of progress, 2030 agenda launched “Follow-up and review” and “No
one left behind” (Evans and Heller, 2015). The purpose of these monitoring approaches
are to help government of the countries to produce the data for measurement of progress
of development of countries and enhance the statistical capacity.
5. For the achievement of goals decided by Agenda 2030, “World We Want” initiative
made by various countries in order to crowdsourcing of development solutions of the
development issues faced by the countries. If developing, developed and underdeveloped
countries will share developmental solutions with each other, it will lead world to achieve
technical, expert based and respect developmental approaches.
TASK 8
UN's sustainable development goals
Sustainable development goals are also known as global goals that are universal in nature
that helps in reducing poverty from the country. It also helps in protecting our planet spread
peace and prosperity in the environment. There are 17 goals that is being introduced by the
government for implementation of sustainability in the country. Some of these goals are No
poverty, Zero hunger, good health and well being, quality education, gender equality, clean water
and climatic action. All these goals will be implemented to create a success in the organisation.
All these goals plays an important role in considering for implementing greater impact on the
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economy (Sachs, 2015).The goals are based on interdependency that will help in reducing
poverty from the country. The main aim of the UN sustainable development goal is to reduce
poverty from the country by enhancing more services to the people. These plays an important
role in reducing poverty for future course of action. Therefore, it is important to maintain
sustainable development in the country.
TASK 9
Impact on global governance due to BRICS
Due to grouping of the world's leading and emerging economies and political powers at
the international level of BRICS is facing changes in the architecture of the global governance.
All countries see brics as a different agenda which lead to opposition of one objective of Brics
which creates challenges for the established global order.
BRICS are against protectionism which lead multilateral trade system to be under attack
which lead countries to face power shifts from the China because every countries has its own
economic cooperation policies, political conditions and people to people exchanges policies
which creates contrast the policy of BRICS “THREE WHEEL DRIVEN”.
There have been continuosuly changes and adjustments happening in the world economy
policy which impact the governance policy of BRICS (Colby and Ortman, 2017).This also lead
these 5 countries to not to able to form BRICS development bank and BRICS contingent reserve
arrangement.
In the BRICS countries, due to slow economic growth, high unemployment rate and high
inflation rate of Russia, Brazil and South Africa impact the initiatives started by the Brics which
lead all the countries of Brics to face a lot of internal challenges such as increase in social and
economic problems, strikes and crimes.
The BRICS needs to face a lot of internal and external challenges due to pressure from
china in order to established global order which lead to change in power shifts for the global
governance and not able to achieve the developing world objectives (Hopkins, 2017).
TASK 10
Detailed appraisal of the two considerations
1. DUTY OF ASSISTANCE
Yes, International institutions should be reformed to better fulfil their duty of assistance to the
poor countries in order to provide them opportunities to improve their economic conditions and
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social development of their population. International institutions such as IMF and World Bank
had played an important role in globalization which improved so many underdeveloped countries
and now these underdeveloped countries are converted into developing countries (Verger,
Altinyelken and Novelli, eds., 2018). These two international institutions did safeguard the
international financial system and implemented so many policies in the flavours of developing
and underdeveloped countries.
2. LOWER COST OF THEIR CONTRIBUTORS
Also, the institutions should reformed their policy “LOWER COST TO THEIR
CONTRIBUTORS” so that developed and rich countries can provide assistance and benefits to
the poor countries in the form of labour, investment, products and technologies so that developed
country can get land, capital and labour and in exchange poor countries can get employment
creation, investment opportunities and various goods and services at the low price (Reed,
2015).This will lead poor countries to grow and improve their economic and social development.
PART 4
Malta's development status
Project Type:- The project that is being chosen in Malta development project is related to
environmental or social project. This project aim to protect the environment from natural
calamities as well as barrier that comes between the economic development of this project. As
environment can be affected by pollution, deforestation or any other reason. Increasing global
warming is the obstacle for environment in the Malta country (Bendell, 2017).The main purpose
of this project is to save the environment from getting destruction. There are so many factors that
will affect the working of the project in future course of action.
Project Goal:- The goal of this project is to protect the environment by giving a set of guidelines
in company Malta. It helps in promoting Corporate social responsibility in the different
industries of Malta through which sustainability can be improved. Environment will be
sustainable if continuous CSR activities is being done by different companies in the country
(Welford, 2016).The goal can be achieved by maintaining sustainability in the Malta country.
Financial Analysis:- The cost estimated to complete this project is £ 5347.Expected rate of
return is 20%.
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CONCLUSION
From the above study it can be concluded that macro and microeconomic influence on
level of inequality and sustainability in the development policy of the country. There are many
strength and weakness that will help in measuring economic development of the country.
Happiness is the one factor that will lead to create a sustainability in the economy for future
course of action. It will be beneficial for the economy in maintaining good environment for the
country so that poverty will be reduced. There are three type of development trap in the china
Tacitus Trap, Thucydides and Kindleberger Trap. As classical development theory of economics
helps in free trade from outside country.
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