Development Economics Report: Comparative Analysis of Economies

This report delves into the multifaceted field of development economics, exploring key concepts, factors, and challenges. It begins with an introduction to development economics, emphasizing its role in fostering economic growth and improving living standards. The report analyzes micro and macro economic factors influencing inequality and sustainability, examining topics such as remuneration, care and safety, employment acts, and tax regulations. It evaluates various indicators for measuring economic development, including poverty rates, measures of inequality, human development indicators, and per capita income. The report also examines the concept of the middle-income trap and proposes strategies to overcome development traps. A significant portion of the report is devoted to a comparative analysis of the economic development of the European Union, the United States, and China, focusing on factors such as natural, social, economic, technological, political, and institutional influences. The report further assesses the economic development theories, including the Classical theories of development economics. Finally, the report provides insight into global challenges and sustainable development.

DEVELOPMENT
ECONOMICS

TABLE OF CONTENTS
INTRODUCTION............................................................................................................................4
PART 1 ............................................................................................................................................4
K&U1..........................................................................................................................................4
K&U2..........................................................................................................................................6
K&U4..........................................................................................................................................6
A&A1..........................................................................................................................................7
A&A2 An economic development theory that best explains the contrasting realities of EU, US
and China.....................................................................................................................................8
PART 2 ............................................................................................................................................9
A &A3 Illustrating how trends, challenges and problems of development feed into
development praxis......................................................................................................................9
S &E1 Evaluating various connections between the globalistion debate and development
debate and the new role of foreign aid and assistance in a post 2015 world.............................11
A$A4 Assessing why UN's sustainable development goals have somewhat stalled in recent
years...........................................................................................................................................12
PART 3...........................................................................................................................................13
K&U3 Future impact of BRICS................................................................................................13
S&E2 1) Duty of assistance.......................................................................................................14
2) Lower cost of contribution....................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES...............................................................................................................................16

INTRODUCTION
Development economics in the major aspects in relation to countries to grow their
economy and policies to increase their capital in the country. With this strategy it helps the
countries to improve their condition in terms of providing employment to the illiterate people or
providing better education or also improve health condition. As every people are not stable to
maintain their livelihood in the country, they have to manage various factors to improve their
living condition (Schumpeter, 2017). In this case various economic factors are enhanced which
helps in development of countries. Thus, the concept of economic development is successful if
they adapt new technologies in a better way to enhance their living standards in perspective for
future growth.
Report will include the various factors including the macro and micro factors which helps
in development of economy of the country. It also includes identifying ways which helps in
shaping and implementing international development policies. Further it helps in identifying
different ways in measuring development and also challenges which is examined in development
plans. It also includes the progress and the remaining gaps in implementing the outcomes on
inclusive and sustainable development. Lastly it is also evaluated in achieving the international
institutions and civil society for effective economic development in terms of reforms.
PART 1
K&U1
a) The termed inequality means differentiating between any person regarding their caste, sex and
region. As inequality occurs in every country and it usually happens in companies regarding
appointing person for any post (Miletzki and Broten, 2017). Thus, to maintain the sustainability
in the company they mange their accounts and other department at certain level to achieve a
common targets.
The 3 microeconomics factors which influence the level of inequality and sustainability on the
developing economies are as follows:
 Remuneration is the first step in which every individual got effected at the time of
working in the company. As there is inequality arise when the work is accomplished by
any person in comparison to others. Company decides the Remuneration according to the

work accomplishment and if the person achieve more targets than he is liable to be paid
more (Coale and Hoover, 2015).
 Care and safety is the another important aspects as the individual which are poor or
cannot afford their health expense are usually neglected by the company. In that case
inequality arises which is to be rectifiers as all the employees are equal and their heath
maintenance which the company affords should be maintained and manage properly
(Platteau, 2015).
 Training and development related issue are mostly occurs in case of inequality. In this,
most companies avoid such person which are of different caste and also they not provide
proper guidance to achieve goal in the organisation. By these factors they avoid
appointing any person of lower caste and not having adequate knowledge to learn
something.
The 3 macro economic factors which influence the level of inequality and sustainability are as
follows:
 The factors related to employment Act, in this mainly companies prefer the person which
are employed and had proper experience to handle the work loads. In this case they
commit inequality with the employees which had the least knowledge but can work in
better way to achieve goal (Van den Berg, 2016).
 Tax regulation is the another important concept which is generally finds in respect of
inequality and sustainability in which the companies is facing in case of expanding their
business in international market. As different countries had different government to rule
on and there tax system also depends upon the quantity of goods imported and exported
in this case inequality and sustainability occurs to balance their working structure.
 In this global world, global changes which occurs due to changes in environment in this
the company which had renowned brand name can easily enter into the market and they
can expend their business but with the company having less brand image had to struggle
to enhance their name. This is the major factors of inequality in the country (Croes,
Ridderstaat and van Niekerk, 2018).

b) The general agreement which is made between the micro and macro factors are regarding to
employment factors which helps the companies to manage their internal and external matter. As
with the employees team wok they can achieve goal in the organisation and also can produce
quality products which helps to grow their business for longer terms.
K&U2
a) The four ways which helps in identifying the development of economies are as follows:
1. Percentage of population below poverty line: as the country success depends upon the
person education and illiterate if they represent below poverty lone it means they are
uneducated and non working. Its limitation is that in case of development it represents the
backward image of the county in terms of successful growth (King, 2015). Its strength is
that no person are not depended to anyone. They are liable to maintain their livelihood.
2. Measure of Inequality: Its strength is that it helps the person who are more experienced
and knowledge should gain more advantage in the company and they can face tough
competitor to the employees who are least knowledgable in the organisation. Its limitation
is that it differentiate the person according to the discrimination based on caste, sex and
colour.
3. Human development indicators: Its strength is that it helps the companies to grow more
in the emerging market due to various technique which they adapted regarding the
demand for changes. Its limitation is that if one person behaves unethical it reflects the
whole working of the organisation to achieve goals (Alola, 2019).
4. Per capita income: To adapt this factors its major strength is that person can individually
earn more income through their hard work and strategies to produce more products but its
limitation is that If the market demand is high the prices also increased which reflect their
working structure.
b) Usually the word Happiness related to the employees working in the organisation or engaged
various business activities to achieve goals. As if employees are happy with their work premises
they archive more targets which brings more business to the country and their economy directly
increases (Lippit, 2018).

K&U4
a) Middle income trap means the company is trapped in the middle purpose where they can take
proper advantage to the resource which they are liable to use it in the country. The advantages are
related to income, trading activities which includes import and export of goods and services and
many more factors. In respect to International trade Obstacles which means barriers at the time of
importing and exporting products and services to the other county. In respect of international
Financial obstacles which means barriers at the time of financial matters of the company which
determine their working structure to achieve goals in international market. In respect of social/
cultural, the major barriers is related to communication and mostly companies is lacking in this
(Yeager, 2018). As every people had different background and there way to treat people is also
different which is the results in lacking economic development in country.
b) To overcome for the issue the 3 development traps plays a major role in the country as Tacitus
trap reflect the more transparency in the country and they also help the Chinese state to maintain
the close relationship with the state to establishes their working structure. In case of Thucydides
trap, it helps to overcome in such situation when one great achievement stops reflecting the
another one (Dai and et.al., 2016). In such cases they can save their energy for further use. In
case of Kindleberger traps, to overcome from this trap they have to take an exit point form small
amount of foreign aids.
A&A1
a) Economic development in countries in relation to European Union, USA, China is in contraxt
to income distribution which reflects their higher saving and investment in the country. The
factors which reflects their overall development growth are as follows:
 Natural factor: Economic development in three countries resulting only in not using their
optimum resources which is available to them to increase their productivity to earn more
profits.
 Social factors: The major role plays in social factors is relating to values, customs,
language and culture which is majorly reflecting the economic development in countries
(Lu and et.al., 2017).
 Economic factors: It influences through changes in inflation rate, labour cost and climate
changes which mainly affects the products and services which the county are dealing in.

 Technological: Up gradation of new technologies or new technology's advancement
always helps the country to grow their business into large scale.
 Political and institutional factors: As government impose various rules and regulation
which every country had to follow it. And due to these factors they are influencing the
companies to expand their business into different countries ()Cantore, Calì and te Velde,
2016).
b) The dependency ratio of China is as on 2015 is 37% which in results contrary to USA as
51.2%.
“Lorenz curve” and “Gini coefficient” for European Union, U.S.A. and China.
Lorenz curve is mainly designed to show the income distribution in the country. As of the
prices are high, the income curve reflect similarly in case of low income price. Gini coefficient is
the statics measure which helps in examining the average income generated or population occurs
or wealth distribution in the country (Khan, 2017).

China is on the top position in equality and as comparison too USA they are more settled and
their income in terms of equality are more stable. Also, European Union has also a big gap in
income distribution in country (Billari, 2015).
A&A2 An economic development theory that best explains the contrasting realities of EU, US
and China
Classical theories of development economics :
 Structural change theory : This theory is called as Lewis model which was presented in
1955. It is centred the phenomenon of surplus labour. This model focussed on the
requirement of nations to transform their structure by shifting away the surplus labour
from agriculture sector to industrial sector (Xia and et.al., 2019 ). This theory was well
adopted by these economically advanced countries such as EU, US and China which
further helped them in triggering the pace of their economic growth.
 Linear stages of growth model : It is considered as one of the most traditional
development economic model which was created by Roslow in 1916. It consists of five
stages namely; traditional society, pre conditions of take off, take off, drive to
technological maturity and high mass consumption.
 Neo classical model : This model is concerned with the economy which is run by the
market forces such as demand and supply which leads to optimum utilisation of resources
and greater profits leading to greater economic growth.

The non classical theory best explains the realities of EU and US where the economy is
free and is run by market forces while this theory is not suitable foe China as it is characterised
by communism type of structure which is a kind of contrasting to US and EU.
PART 2
A &A3 Illustrating how trends, challenges and problems of development feed into development
praxis
The major challenges to sustainable development involves unemployment, poverty,
exclusion, humanitarian aid, conflict, creating peaceful and inclusive society etc (Santeramo and
Shabnam, 2015).
As per the joint report by UNDP-UNRISD, an agenda has been set for sustainable
development through out the world. The agenda is set for promoting economic, social and
environment development in a balanced manner. The joint report has reviewed latest mega-
trends in six areas that are of utmost significance for attaining the objectives and agenda 2030.
These are :
 Demography : It includes growth in population, migration, urbanization which
significantly affects all dimensions of the sustainable and economic development in the
world. The recent trend in population growth has decreased , however, the same is not in
the case of India and Nigeria. This is the reason why this issue has been considered by the
UNDP in its agenda 2030 (GLOBAL TRENDS Challenges and Opportunities in the
Implementation of the Sustainable Development Goals, 2017 ).
 shocks and crisis : Conflicts are the challenges that are hindering the economic and
sustainable development. They disturbs the harmony and peace at the international level
which needs to be controlled and it has been the target of UNDP- UNRISD to convert this
development feed into development praxis.
 poverty and inequalities : Income poverty has seem to be declined by almost two third
in the developing countries, however considerable challenges and problems remains. Due
to the economic development, inequalities in the income has seen to be increased globally
for which necessary actions are required for the sustainable development throughout the
world (Lim, Oh and De Clercq, 2016).

 degradation of environment and change in climate : The governments and societies
around the world are changing their attitudes towards the conservatism of environment.
Efforts are being made for reducing the carbon footprints on the global environment. This
was included in the agenda 2030 due to the fact that rapid economic development of the
world has led to rapid depletion of natural resources that has resulted into the degradation
of environment. The underlying factors that led to such degradation are increase in
population, excessive exploitation of ecosystem, technological advancement etc.
 Cooperation in development and development financing : Implementation of the
actions of the agenda 2030 requires finance for trade, partnerships, technologies that are
eco-friendly, institutional coherence, etc.
 Evolution and innovation in technology : Rapid evolution and advancement in
technology has undoubtedly paced the economic development around the world but it
has negatively impacted the human and natural capital of the globe. Polluted technologies
and extra efficient machines have taken up the roles of human leading to high number of
unemployment and depletion in the quality of climate and environment.
These are the trends that has been recognised by the international bodies for the purpose
of overall development around the world. Collective actions are to be taken by the governments
and other impactful institutions for maximizing the positive aspects of the mega trends for
making the world suitable for next generation (Becker, 2017).
S &E1 Evaluating various connections between the globalistion debate and development debate
and the new role of foreign aid and assistance in a post 2015 world
.i SDGs have recast development as a shared, universal enterprise : Sustainable
development goals(SDGs) have been adopted by all UN members for contributing
towards the sustainable economic growth of the world. The aim of SDGs is to encourage
an action for addressing common problems wherein all countries have evaluated the
aspects of SDGs to implement them in their respective nations. This led to development
of new concept called as beyond aid in which there are north south transfers indicting
new partnerships and eradication of conventional giver recipient relationships (Billari,
2015). The poorest countries are being encouraged for increasing international trade by
the way of 2030 agenda, investment in private sector and accumulation of tax revenues

for triggering the development. This adoption of SDGs by different countries are aiding in
attaining the objectives of agenda 2030.
.ii International development is attempting to incorporate environmental
concerns to a greater extent that ever before : It means that international development
is attempting to take more holistic approach which will underline the fact that a suitable
environment is necessary for other issues & challenges such as poverty eradication. Some
of the approaches are Poverty Environment Initiative carried out jointly by UNDP and
UNEP, One Health Programme, an initiative of WHO which focusses on facilitating
people with better medical opportunities and for proper addressing the public health
issues (Khan, 2017).
.iii Poor countries are increasingly recognised as stewards of planetary resources
for all humanity : A different kind of aid in sustainable development is received from
the stewardship role of countries with poor GDP but high and rich natural resources
which is based on the recognition that adoption of sustainable practises might have short
term costs for these countries but helps them to contribute significantly in protecting the
health of the environment.
v.i The agenda 2030 brought with it higher expectations around monitoring of
progress : One of the highly debated topic in agenda 2030 was follow up and review of
progress. Governments of different countries debated that how could they generate
adequate and reliable data for measuring progress and how can they improve statistical
capability. The Inter Agency Expert Group on SDG indicators is being involved in the
process of developing indicators for measuring 169 SDG objectives (Five Ways the SDGs
Are Changing International Development, 2019).
v. Crowdsourcing of development solutions will become a more frequent and respected
complement to technical and expert led approaches : “World We Want” was an
initiative in the 2030 agenda that was formed through various online consultations with
the UN and civil society and is also considered as the best participatory global process.
Crowdsourcing or online space has become a standard in all UN conferences where

different players such as corporations, governments, NGOs etc., put forwards their
commitments in implementing the results of conferences. A recent example is Lima Paris
Action Agenda (LPAA). These conferences involves experts from various fields that
facilitates a common standard/solution for handling policy problems (Cantore, Calì and te
Velde, 2016).
A$A4 Assessing why UN's sustainable development goals have somewhat stalled in recent
years
SDGs are stalling because of the following reasons:
 These sustainable development goals are defective in their conceit.
 It consists of 17 goals and 169 targets which is way longer than the constitution of a
nation (Lu and et.al., 2017).
 One reason cited by many experts for stalling of the SDGs is that it is the lack of internal
logic that has slowed down the project of SDGs.
 These development goals are post contemporary and deconstructed.
 Another reason that has slowed down the functioning of the SDGs is the price or cost of
hitting all the 169 SGDs targets which is estimated to be 45 trillion (why are the united
nations' sustainable development goals stalling. 2017)
PART 3
K&U3 Future impact of BRICS
BRICS is a word form of unification between 5 international countries that is Brazil,
Russia, India, China, South Africa. However, the goal of the association involves countless of
objectives ranging from helping China’s one belt and avenue initiative (OBOR) to trade,
communique, local security, human safety, human development, technical development,
destruction of terrorism and easement of social and monetary evils from the place (Nordenstreng
and Thussu, 2015).
Further, through this association Russia is focusing for growing trade activities
throughout Africa and South America. Moreover, China provides Russia an opportunity to reach
heat waters through China’s one belt and road initiative (OBOR). Likewise, different emerging
countries like Brazil and South Africa desires nearby security and improvement. Consequently,

they're key companions of BRICS association. On the flip side, India is also widespread part of
BRICS in Asia as India’s economy is developing and its social and monetary indicators are
enhancing. Hence, to keep its upward monetary ladder India desires to collect all benefits of
OBOR, thus, For the same motive it's been a part of the BRICS affiliation.
Moreover, Due to dynamic changes of developed globalisation has intended these power
shifts has grown to be a vital supply of world boom and political have an impact on. Further,
BRICS economies have grown speedily with their share of worldwide GDP growing from around
10.9% in keeping within 1990 to almost 30% according to statistics in 2014. Moreover, BRICS
report for over 40% in step with the world populace, hold over US$4 trillion in reserves and
report for over 17 according to cent of world trade. On the other hand, financial markets in the
BRICS countries have in addition have developed rapidly (Stuenkel,2015). For Instance, within
the 20 decades until 2010, Brazil's market estimation multiplied from a totally low 4 according to
cent of GDP to seventy-four in line with cent, India from 12 per cent to 90 accordant with cent,
Russia and China from zero to around 70 in line with cent and 81 per cent, respectively. Further,
in South Africa, marketplace estimation has been doubled from around 120 per cent to 278 in
keeping with cent. Accordant with S&P global marketplace Intelligence international financial
institution ratings, banks from these 5 countries figured a few of the top one hundred banks in the
global, with the top four banks centred in China.
However, due to the global economic crises the future impact of BRICS has been reduced
that means Exports from BRICS to evolved markets and investments into their respective
economic system have declined, whilst the aggregate contribution to international increase has
fallen from a height of nearly 50 in keeping with cent in 2013 to around 35 in keeping with cent
in 2015. Further, real GDP boom of BRICS, which turned into over eight consistent with cent in
2010 declined to just over 4 in line with cent in 2015 (Kamminga,2018). Moreover, in addition,
the neighbourhood currencies of BRICS, except for China, has skilled various levels of
unpredictability following the oncoming of the worldwide monetary disaster.
S&E2 1) Duty of assistance
Duty of assistance means a humanistic responsibility which calls on rich societies to
alleviate worldwide poverty with the assets they possess. Further, duty of assistance is a
sufficient law that is absolutely discharged as soon as the survival or fundamental desires of the

worldwide poor are met. However, there are many international institution like WHO,
commonwealth care, NATO(The North Atlantic Treaty Organisation), The European Union etc.
Further, World health organisation is an institution that providing assistance to the people
by keeping offering them treatments and other health related facilities. Moreover, the WHO
should add new reforms for greater development of the society like along with treatments they
should also provide the routine medical check-up for the poor people so that if any disease is
developing within their body it can be treated on the initial stage of the diseases (Cooper, 2016).
Moreover, Commonwealth care alliance is non profit organisation that provide medical
facilities and treatments to disable people so that they can live a healthy life. Further, this
institution provide healthcare service in two broad ways that is treatments to people who are
between 21 years to 64 years and facing the behavioural disorder and other health disabilities at 0
cost and other is providing treatments for 65 years and above citizens inclusive of Medicare
benefits at 0 charges. However, this organisation should include home treatments to senior
citizens and infants who are new born as it will be convenient for them to take treatments at their
own residence without getting any difficulty.
2) Lower cost of contribution
The international institution namely WHO, commonwealth care, The European union,
NATO etc., must take lower funds form more developed countries like US, china, Germany,
France, Italy etc., so that these countries with higher GDP can assist the countries with lower
GDP like Syria, Sudan, Uganda, so that these countries can provide the assistance to the poor
people in their country (Nayyar,2016). Furthermore, these international institution should add
reform by lowering cost and provide assistance to those countries who are unable to provide
basic treatments to people. Moreover, the WHO should change their reforms and provide their
medical facility to all over the world specially to the countries like Syria, Sudan, Uganda etc. so
they the development of country can be enhanced and people can people a healthy life.
Simultaneously, the commonwealth care institution must provide their services to the people of
lower GDP county like providing medical treatments to people who are disabled and won't be
able to travel to their institution thus they should provide them assistance and treatments at their
place of residence by opening their institution in such countries as well. Further, the NATO must
provide security and other facilities to the military candidates of the country who have lower

assistance to the basic treatments and must provide medical benefits to the militants who have
been suffered during the terrorists attacks (Rolf,2018).
CONCLUSION
From the above project report, it can be concluded that development economics is that
area of economics that deals with the improvement in the fiscal, economical and social
conditions in the developing nations. There are different macro factors that affects the economic
growth in the emerging countries such as social, technological, political, environmental and legal.
Favourable trade and fiscal polices helps in the generation of income and commerce in the
country that leads to higher economic growth rate. For the purpose of sustainable economic
development, UNDP-UNRISD has laid out agenda 2030 which focuses on the social , economic
and environmental developmental of all nations through the world. It focuses on major areas such
as eradication of poverty, conserving of the environmental and preventing degradation etc.
However, the pace of SDGs has slowed down lately due to the defective and n=inadequate
internal logic, high cost of implementing 169 SDGs targets.

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