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Overall Economics Development

University: Kensington College Of Business

  • Unit No: 6
  • Level: High school
  • Pages: 21 / Words 5152
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 328
Question :

This sample will let you know about:

  • Discuss about the Analysis of two economic theories of Development Economics.
  • Discuss about the List of resources of Development Economics.
Answer :
Organization Selected : N/A

TASK 1

a) Overview of Niger with a discussion of trade-off that donor countries face when deciding the allocation of funds and resources to be distributed to developing nations

Niger is one of the country of West Africa which is named after Niger River and covers an area of land near about 1,270,000 km2, that makes it as the largest one. As per statistical survey, current it has estimated that number of population includes 22,442,831 approx., where most of them are belonged to Muslim community (near about 22 million). In context with growth factor, estimated GDP of this nation is $9.8bn including $510 as per capita income. Therefore, having the least growth of capital, it is counted as one of the least developed country among 188 nations, where 45.7% of population come under category of BPL (below poverty line). Due to this reason, hunger is the most significant issue that every two out of three residents are facing on daily basis (Acaravci and Akalin, 2017). Other main problems, faced by Niger people include water crises that affects near about 10 million populations who live in rural areas.

For supporting the developing countries like Niger to overcome from poverty and improve their living conditions, government of developed nations provide financial and other resources specifically. Development cooperation like international agencies, overseas aid, official development assistance etc. are such agencies that provide support for improving economic, political, social and environment conditions of developing and least developed countries. Foreign aid or financial support can be defined as process of providing funds from donors (developed countries) to developing countries, including the nations within a transitional status. In this regard, such financial donations for improving the conditions of Niger and other under-developing (or least-developing) nations include funding of trade, official financial loans, funding charity organizations, economic aid, military, security as well as political aid. Charitable aid in this process, represent efforts of the donor countries for providing help to poor countries to fight from hunger, water crisis, misery and more.

These efforts give support to government of such nations for developing their resources and creating appropriate conditions that help in sustainable development of economic and make them able to become self-sufficient nations. Along with this, political, security as well as military aid are taken as programmes which are organised by donor countries, for achievement of political stability in recipient countries (Bernheim and et.al., 2019). This would help in minimising the risk of conflict and war, along with strengthening peace and promoting democracy by maintaining independence of former colonies in terms of politics of the donor countries. Therefore, for deciding how much funds are required to be distributed for such nations that lie under developed countries, foreign aid agencies conduct the statistical survey for gathering entire information in terms of - GDP (PPP and nominal), Population area-wise, Water scarcity, food insecurity etc. This would help in deciding the requirement of fund and other essential resources for improving their condition.

When allocating the financial or foreign aid, donor nations face a number of problem to make invest in state capacity. It includes individual biases over which nation receives funds, political biases to make ties to former colonial nations. Similarly, bargaining process of under-developing nations, where donor countries, sometime make commitment to provide funds to multilateral organisations over precise allocations of spending funds on some projects. Therefore, under this process of multilateral aid, recipient countries having a higher effectiveness receive higher funds, that lead to arise problem for other poor nations. This kind of biasedness affect nations like Niger to receive sources and demanded funds for improving their economic conditions. Therefore, its government required to improve their bargaining process and work on new project, that will help in earning desired funds from foreign aid. Get Assignment Examples.Talk to our Experts!

b) Analysis of two economic theories of Development Economics

Development economics is the concept of economics which is related with the aspects of the development process of nations which generate low income. These theories consider the factors which contribute in the development of an economy (Blasiak and et.al., 2017). There are various theories of economic development and two of them are explored below to analyse their conclusions in the context of an under developed country selected as Niger.

Mercantilism theory

This theory is an approach which promotes and advocates the government regulations of international trade. Every country which is developed in current era is heavily dependent upon international trade, this provides an evidence that international trade can be a major factor for the economy of Niger to develop economically. The theory of Mercantilism is based on a principle, according to which world's wealth is static and consequent. And this wealth is possible to enhance by maximising the exports and international trade.

In the use of this theory, the regulations of government strengthen the private owners of production by which a country become able to produce goods such as capital goods, natural resources and labour by its own through which they not only utilise their products tax free but can also export their products by implying heavy duty and taxes on them.

This theory has a deep history as it was highly utilised in the area of Europe between the era of 1500s. All nations such as United Kingdom, Germany, Italy and Rome were focusing on increasing their exports and decreasing their imports (Boianovsky, 2018). This theory was started to be criticized in the era of 1700s as international trade organisation decided to concentrate upon strengthening the economies of all the countries so that nations can gain competitive advantage rather than undue advantage of monopolism.

In has been concluded that at this stage of Niger where it is considered as the most under developed country, the use of Mercantilism theory is appropriate for this nation as they can focus upon their agriculture and manufacturing sector and can be a huge producer to enhance their export power which will open the routes of international trade and economic development for them.

Keynesian theory

Keynesian is a theory of analysing the total spending of a country and its impacts on the inflation level of that country. This theory is considered as a modern theory and was developed in 1930s by John Maynard Keynes. This theory advocates that government regulations should increase the demand so that growth can be boosted (Boianovsky, 2019). All the revenue which is earned by an economy must be spend on infrastructure, education and unemployment benefits.

(Source: Criticism of Keynesian Economics, 2020)

The only drawback which is reviewed in this theory is that it supports expansionary fiscal policy which will eventually increase the inflation of a country as it can be seen in above graph.

By this analysis, it has been evaluated that Niger should spend a high percentage of their revenues on development activities as this country is at a stage where the economy can only be developed if the people of that country are receiving appropriate education and health services.

Task 2

c) Identify and recognise different indicators to identify whether country is developing or developed.

In present scenario, it is necessary for any of the nation to take those initiatives through which they can indicate themselves that whether they are being developed or still some of the changes are required. It is that whenever any of nation requires changes in their working policies for the positive impact that simply reflects that changes it is in the state where process of development is still required for effective result (Bojanic and Lo, 2016). Talking about Niger, it is one of those country where they are required to bring lots of changes in future period of time for positive outcomes which means they are not in the stage where they can identify as a developed country.

The primary factor to identify that whether country is developed or under the stage of developing can be classified with the help of Gross Domestic Product per capital. Here, it is evaluated that how much product is imported and exported in the form of US dollar. In this situation, it is said that Niger, is developing because they are in the situation where they get very minimum opportunity for the development and just best of the land structure of a country and its surrounding location. They been also facing the problem related to refugees which is not allowing them to perform better at an international level to stand better a developed country.

In economic context, economic growth rate plays the most crucial role as it is necessary to compare whether it is increasing or decreasing on a daily basis. Talking about developed country they are able to maintain each and every sector in a systematic manner which allows them to accomplish their goals (Bresch, 2016). The countries which are developed find the way to expand its business at international level where import and export plays the most significant role. If company is able to earn good amount of money in US dollar from its business helps them to establish their economic level which has a direct effect on positive outcome. It is one of the way to identify whether country is developed or not. Want to get Assignment help? Talk Our Expert Now!

There are number of other way through which it can be easily identified that nation is developed or in the condition of development. For example: the country which is developed has the very low birth and death rate but in case of under developing country, they are required to maintain this respective figure they don't have any of the control over birth and death rate. In addition, the nation which has high per capital income they are said as developed country but on the other side developing country has to suffer in this respective sector as well. In context of the Niger, they have high unemployment rate and poverty which also indicates that it is an under developing country but on the other side the country which has low and stable poverty rate is determined as a developed nation.

In short, this are some of the ways through which it can be easily identified whether country is developed or still developing.

d) Undertake a historical summary to assess the progress (or lack of) that the developing country of your choice has attained as compared to another developed country

Country like Niger is facing lots of problem in current issues just because of it is under development activity (Capstick, 2019). Niger is a developing country where as South Africa can be determined as a developed nation. Both of nation are not quite far from each other but still they have lots of differences. Talking about annual GDP of Niger in 2018, it was just $9.299M but on the other side South Africa had a GDP of $368,135M which is totally opposite of each other. There is the situation where Niger has to suffer for delivering the human rights to its public just because of its current position but on the other side people of South Africa gets the chances to deliver better facilities to its public. It is the sign that developed country gets the option to supports its people but on the other side poor nation faces lots of difficulties in number of circumstances. Also, developed country like South Africa gets the opportunity to enhance their business but in case of Niger lots of problem is needed to be face by them.

(Source: Country comparison Niger vs South Africa, 2020)

As compared the GDP of Niger with South Africa, it has been illustrated from this figure that there is less growth rate in Niger. From 1951 to till 2017, it has been estimated that increased $1.128M from $3.0M only, while South Africa which was considered as developed one, $1.150.8 M to $88.837M. Therefore, donor countries are required to provide sources for Niger government that helps in improving its GDP rate, so that people can earn a proper livelihood.

TASK 3

(e) Outcome of international summits in which Niger country participated in recent years and assess the remaining gaps in the implementation of the outcomes of these summits

International Summits is the kind of meeting among various countries where people of different countries decide one venue and where they conduct meeting. Conference will helps in specific country and world's leaders participated and discussed about various aspects such as social, financial, political, economic and community or cooperation (Casadella and Uzunidis, 2017). There are one of international submits which helps between the India or Niger and that international conferences has purpose and it will provide effective outcomes which positively impact both countries.

Niger country situated in sub- Sahara region of West Africa. Between India and Niger, Bilateral relations are very friendly or warm that is beneficial for both in every aspect. Republic of Niger had open their Embassy in November 2011 in the location of New Delhi. There several visits done by Niger for different purpose. In 2015, Issoufou Mahamadou president of Niger was visited India to participate in the India -Africa Forum Summit. After that, in 2018 March Founding Conference of International Solar Alliance organized. At the time of visiting both conferences, president of Niger met with Indian Prime Minister Modi.

On 19th March 2018, international submits had organized between Niger and India in New Delhi and co chaired by Indian Prime Minister and French president Emmanuel Macron. Solar alliance was jointly declared and signed with multiple international organizations, along with international energy agency, International renewable energy agency and united nations industrial development organizations.

The ISA ( International Solar Alliance ) is an agreement which is based on international inter-governmental organization. Its main purpose is to offer that platform which helps in promoting solar energy across the world before 2030 (Cherif and Dreger, 2016). In addition, this conference held to gather around US $1 trillion of investment in order to produce solar energy at inexpensive costs. One aspect focus on International Solar Alliance and try to reduce its overall cost in order to make cost effective for individuals. But, it has various risk related to investment which become significant barrier or further influence the growth of solar.

Joint declaration between International Solar Alliance and International Energy Agency, both are agreed to share capacity building programs and on the basis of it they create extremity joint policy. In order to facilitate International Energy Agency they work together with Technology Collaboration Programmes. IRENA committed to collaborate with ISA to help other countries to develop policies and various regulations to produce solar energy. In addition, there are various initiatives taken by the IRENA such as Clean Energy Corridors and SIDS Lighthouses. ISA and UNIDO, both are agreed to spread awareness regarding benefits of solar energy and also recommend other countries to modify their nations policies and practices accordingly to maximise the deployment of solar energy.

There are various Indian companies which operated in Niger as well as invested in the country such as Airtel mobile service provider which capture around 64 % of shares in local market. Company invested around US$ 350 million in Niger for the expansion or diversification of their services around the world (Desli and et.al., 2017). India has approve the grant of $ 50 million for the sub -Saharan region of Niger where French speaking West African country utilised these finances to generate high profile. It was first time happen that India has extended their grant for AU summit.

With the help of international submits countries can focus on their vision or they further take actions to do something (Ogwumike and et.al., 2016). Basically it will motivate countries to focus on key areas which required development and it will further provide economic growth. International summits required lot of work as well as planning and also make sure to develop efficient team who helps in making summits.

F) Impact of local government, international institutions and civil society.

In order to increase the economy of Niger government, civil society and international bodies have been continuously taking valuable steps which will definitely increase the overall growth in future. Such as:

Role of Government and other international bodies

Fiscal policy

Niger is a democracy in accordance with the 2010 Constitution. Appropriate budgetary allocations will be allocated for public sectors in accordance with the government's top objective of poverty reduction and require close monitoring of lesser priority spending. The Government has as its goal, from 56% in 1997 to very little then 40 % in 2001, to increasing its percentage of tax revenue consumed by the transfer budget (Ee, 2016). The government has therefore agreed there will be no net recruiting in to the public sector besides the introduction into the public service of individuals from the past armed insurrection. For a first step in the development of a compensation package the government has audited domestic arrears and proposed tentative measures to avoid potential escalation of domestic arrests. The policy must remain committed to protecting the most marginalized segments of the population from all negative effects of the adaptation process. The Government continues to insure that social groups of the most needy are shielded of any negative effects of the cycle of transition. For this reason, a protection net will be built to allow:

  • Make sure that food raw material is secure
  • Make plan to benefit participant for the scheme of departure form the civil services.
  • Ensure that there are certain reform which would make a program such food for work that will provide food supplies in the rural areas (Oshodi, 2016).
  • Other programs will be devised in collaboration with NGOs to enhance the fight against poverty.

Monetary and credit proposal

The Federal reserve of West African States (BCEAO), inside the sense of federal agreements and the franchise area from which Niger is a part, will carry out monetary expansion and financial regulation. In accordance with the goals of inflation and sufficient increases in government assets, national financial authorities should pursue a monetary expansion. A rate of growth of the supply of money in line with real GDP growth is forecast in the Niger Economic system (Eyckmans and et.al., 2016). The development in private industry loans will be partially encouraged by a decline in the net credit available to the government, as its economic situation improves. The mortgage rates would tend to be determined by competitive forces in order to improve financial savings and protect the optimal credit distribution. The Government shall, in compliance with its separate reform measures, specific Treasury delays to the (ONPE) Office National des Postes et de l'Epargne, commercial banks, and banks; preference shall be accorded to those with a plurality of resources under the state control, such as the Crédit du Niger (CDN), as well as the (CPCT) Caisse de Prêts des Collectivités Territoriales. In particular, to ever more banking operations the government must keep improving the current legal system. In exchange for the right to operate in a competitive market, it will also have to disburse the investment in these institutions.

External sector reforms

The government calculated the lost revenue arising from this intervention with the technical assistance of the World Bank. At the direction of the nation, the IMF capacity building project can provide additional assistance in the evaluation and specification of reimbursement mechanisms for loss of imports revenue triggered by the law. In order to improve the recovery of domestic income and avoid the introduction of the ECT from creating operating losses in income, the focus will be especially on eliminating more restrictions and enhancing the domestic tax system (Fantom and Serajuddin, 2016). The State is also taking measures to phase out intra state markets tariffs and non-tariff barriers and to modulate the national indirect tax system according to WAEMU specifications. The government acknowledges that ties with foreign investors need to be improved and is committed to will the stock reserve of external arrears.

Civil service reform

In addition to steps on the spending side to track the wage budget it is important to simplify the government service and improve efficiency the amount of employment staff in order to make public management more effective. Government also initiated the reform plan in civil service, which includes:

  • Restructuring of compensation and recruitment processes, including the adjustment of rewards and the development of a job control system (Gupta and Vegelin, 2016).
  • Streamlining of hiring, including implementation of staff transfer systems in prioritization areas, expenditure decentralization, as well as the formation of organized persons.

TASK 4

g) Implementation of solutions and actions in specific areas to help the country pursue its development process

Niger is the nation present in West Africa. The capital of this nation is named as Niamey. It is a landlocked nation which present along to the border between Sahara and Sub-Saharan regions. Under-develop situation is present in nation due to the adherence of poor policies. This resultant into presence of low growth rate. Each area of nation had faced the negative impact of the poor policies. The major areas which are underdeveloped in this nation includes agriculture, manufacturing, services and defence. This would be the reason that in terms of development, this nation is far behind in compare to many other African regions. The government of nation is require to do restructuring in their policies development procedures and frameworks as it provides an opportunity to follow the path of growth in future. The best policy that can help this nation to ascertain development in all the different areas simultaneously includes adherence of liberalisation, privatisation and globalisation concept. The concept of liberalisation provides an opportunity to the local parties of the nation to take higher amount of risks and start their own businesses (Hallwood and Sinclair, 2016). This not only help in ascertainment of their own livelihood but aid in building strong economy of nation. Privatisation help in development of the different areas in speedier manner along with the creation of determinants which are qualitative in nature. This will provides an opportunity to nation about enjoyment of strong base for longer period of time in future (Policardo and et.al., 2016). Globalisation provides an opportunity to the foreign organisations to operate their businesses at Niger to unveil the hidden opportunities and simultaneously enhance their profit earning capacities. This will attract the local organisations of nation about improvement in their operations for the purpose of attaining the benefits of globalisation. Development of quality products and exporting the same in foreign markets help in building separate identity. The positive impact is ascertained in the manner of continual development in future too. The detailed application of defined policy along with its impact over developing specific areas of Niger is understood from the points presented below:

Liberalisation: This is the aspect that can includes about the providence of different resources and other important determinants in very liberalised way that promotes the local players to grab the benefits of same in manner of developing their own activities. Also, government has an option under this point is about reduction in corporate and personal tax rates along with the providence of subsidies (Hessels and Naudé, 2019). The direct impact of this measure will be majorly visible over the development of the agriculture and service sector of nation. This motivates the local residents in starting of their own business activities as they have to pay less rate of tax amounts over their earnings. Also, they can attain the subsidies from the government side (Roland, 2016). So, whatever the return they get from the running of business operations is available on their hand only which they can spend over the improvement of their own livelihood. The major growth can be ascertained after the proper application of this measure in different sectors of Niger includes Agriculture, service and retail. The development in these three areas strengthen the core base of nation and drives the the growth of nation in positive direction.

Privatisation: This is about improvement in the privatised activities at different sector level within the nation. The major impact of same is ascertained over the development of major sectors like manufacturing and health. The organisations in this sector requires large amount of investment (Higgins, 2017). So, successful operation in these areas is possible for only the large and private organisations who have enough amount of funds and resources. Presence of multinational organisations provides an opportunity at local level about the creation of nationalised company. So, adoption of the concept of privatisation finally aid in opening the path of entry for large organisations along with the development of many other nationalised companies within the manufacturing and health sector.

Globalisation: The concept of globalisation is most important in terms of growth where allowance is provided to outsider organisations regarding their investment in different sectors. This concept has much importance for the local players also regarding improvement of their earnings through improving business activities b adopting the option of export (Hrubcova and et.al., 2016). This provides an opportunity in identification of new potential customers outside to the nation boundaries. The aspect of globalisation does not have limited scope over growth of some specific sectors. This will prove beneficial for all different sectors whether agriculture, manufacturing, service or defence. Ultimately, this will aid the nation in overall consecutive development of all the industries along with economy. Take College assignment help from professional experts!

(h) List of resources which a country needed to above mentioned proposal.

This is essential for government of any nation to gather all needed resources on time so that sustainable development can be assured (Sugiyanto and Digdowiseiso, 2017). If foreign investors wants to make invest in least developed countries then they will need a vital range of resources. Herein, below list of resources is mentioned that will be needed by government of Niger for economic development:

Physical resources- These are type of resources which are related to tangible items (Khayum, 2019). In the context of overall development of a nation different types of resources will be needed and some of them are mentioned below in such manner:

Forest resources- Niger has wider area of forest which can be used by government in order to acquire natural resources. The country has 18.03% area of covered forest from which different types of raw material can be assessed. As well as foreign investors can make invest to open new ventures and needed material can be gathered from forest areas.

Land resources- Along with the above mentioned source, Niger has wide area of 20700 square meeter. In this total of land area most part of the land is vacant and their government can use it for opening a large industrial sector. This will contribute in large manner to above country. It is so because this vacant area will attract more number of foreign investors who can open new ventures. Thus, this is also a key resource that can be helpful in order to economic development.

Mineral resources- A nation's economic growth relies in large extent on exploiting and maintaining its mineral wealth (Khoury and Prasad, 2016). Natural gas and iron, for example, are needed for the growth of the metalworking industry that is essential to any country's economy. In the aspect of above nation, this resource can be useful (Thirlwall and Pacheco-López, 2017). It is so because they have huge amount of mineral resources that can be helpful in order to open coal mining industries. So this is also a main source that can contribute to Niger for improving economic condition.

Water resource- It is also a main resource that can be useful in order to sustainable development of a country. This is so because in the absence of it, this will be difficult to operate any kinds of operation. In the aspect of Niger country, this can be find out that there is limited amount of water resource, hence this is essential to use this resource with an effective manner.

Capital- is indeed a concept in economics that implies consumer goods production. It can therefore be used during addition to produce certain products and services. These are the capital factors:

Fixed Capital- This encompasses new technology, plants, design, machines and other facilities.
Working Capital- It is also the collection of manufactured goods or parts or of half-finished goods. In the immediate future, certain goods or parts will be used.

Capital productivity- In order to enhance labour productivity, features of money, equipment, or technologies are typically used (Kim and et.al., 2016). These new methods of cultivation lead to increasing production in the agricultural sector as well as to providing more productive employment in this field.

Infrastructure- This is a capital asset used to sustain the entire economy. For instances, paths, tracks and airports.

Human resources- These are one of the crucial resources that are needed to overall development of a country. Eventually contribution of human resource is essential for each aspect because in the absence of effective and proper human resource a nation can not progress. In the context of Niger country, herein below contribution human resources is mentioned in such manner:

Labour force- It is a key human resource for any kinds of nation because labour force is needed in order to complete different types of activities and operations. This resource can be utilised only if a country has enough range of industries (Maksimov and et.al., 2017). In the aspect of Niger country, there is higher percentage of unemployment which can be acquired if foreign countries will expand their business.

So these are the key resources which are too crucial for economic and overall development of different types of above mentioned nation (Van den Berg, 2016). Herein, this is important to know that these resources should be used in an effective manner because if resources will not be used effectively then it will be difficult to make proper utilisation.

Read Also :- Business and Business Environment Brief

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