A Brief Note On Financial Development And Inequality Essay

Whilst raising money for African charities at school I developed an interest in global inequality and alternative policies that can help low-income nations escape the poverty trap. Reading ’23 Things’ by Ha-Joon Chang, I was intrigued by his view on blaming free-market policies like SAPs that exposed sub-Saharan Africa to international competition, slowing economic growth. Hence, this extended my research to the other side of the

During the years of 1960, agricultural production contributed 54.7% to Nigeria's GDP. However, it is currently estimated that “Over 95% of foreign exchange earnings come from exports of crude oil and less than 1 % from the manufacturing sector” (Usifo, Victor 2017). Despite the high percentage of Oil exports, it accounts for only 10% of the states GDP (Usifo, Victor 2017). In comparison France has continued to sharpen new ways of using its agriculture, energy, tourism, and industrial chemicals to speak for the growth if its economy. It is well known that developed states who have not swept under the leadership of other countries have a higher chance of becoming developed and earn dominance over those who have been colonized and are facing challenges due to its poverty and instability.

Sub-Saharan Africa has been a laggard with regards to economic growth rates when juxtaposed with many emerging developing countries. Analysts believe this could be due to high import volumes along with population boom dogged by disproportionate income growth. Structural deficiencies have hampered domestic production from propelling as swiftly as upsurges in demand. Many of the North African countries face agro-climatic limitations to increased production so imports are believed to play a pivotal role in satiating consumption

Iceland and Gabon are very unique countries with different statuses. Iceland has a very small population but is highly developed and a model of efficiency socially, politically, and economically. Whereas Gabon has the potential to be one of most developed African countries, with their discovery of oil and the associated profit, but the population trends of the transitional period of development and the social and political endeavours attached to such a change have hindered the countries progression. As a result of this, Iceland has a better economy, quality of life, and social and political structure while Gabon is developing these benefits slowly but with success with signs of development problems in population and infrastructure that

As many know through the news, Sub- Saharan Africa is not a wealthy nor financially stable

Modern African states have various problems ranging from corruption, to armed conflict, to stunted structural development. Africa’s ongoing political instability and economic crisis have hindered the improvement of Africa. Thus, the lack of money, advancement in technology, and climate has hampered economic development. Despite European mistreatment and oppression African’s have endured hardships that have encouraged economy, education, and political

Income inequality has been a major concern around the world, and it mainly links to how economic metrics are distributed among individuals in a country. Economists generally categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed in their studies that inequality has drawbacks that lead to social problems. This is because income inequality and wealth concentration can hinder or delay long term growth. In 2011, International Monetary Fund economists showed that less income inequality increased the duration of countries’ economic growth spells more than free trade, low government corruption, foreign investment or low foreign debt (Berg and Ostry, 2011).

"How Economic Inequality Harms Societies." Richard Wilkinson:. TED Talks, July 2011. Web. 26 Feb. 2015.

Africa is the world’s poorest inhabited continent, with more than one third of its residents living on less than a comparative US dollar per day. Africa is stereotyped as poor, overpopulated, and uncivilized. Historians refer to Africa as one united land mass rather than multiple independent nations. Africa’s limited use of technology, agricultural based economy, and independent self-government prior to independence has made gathering data on the continent difficult. Africa as a whole has little data

The concept of DEPTH is a call for more diversification, more export competitiveness, more productivity increases, more technological upgrading, and more improvements in human well-being in order to beckon in the economic transformation of Africa. Now is the time to expand upon the already growing African market, as is evident by the fact that 6 of 10 of the fastest growing countries in the world are located it Sub-Saharan Africa . However, there has been little to no development in the structure of the Sub-Saharan economy in the past four decades. Africa still hemorrhages natural resources, with little infrastructure to expand into the manufacturing of final goods. Economies remain reliant on agro and extractive sectors, leaving the population

Sub-Saharan economy has improved overall, but the region is still struggling with their economic performance. Prolonged colonization has left the region with weak institutions. Personal rule policy that is based on personal relationships and favors, has also contributed for the prevalence of weak institutions. The rules are applied selectively and depends on the connections one has. The wealth of the state belongs also to the head of the state and those closest to him (Moss 2011, p. 40). Furthermore, the enclave economy does not depend on development or production since it is based on resource exports and accumulation of wealth for the elites. Leonard and Straus argue that enclave economies discourage evolution of the institutions due to lack of incentives, and are the basis for personal rule (Leonard and Straus 2003, p. 13, 17).

To what extent is it true, or not true that Africa remains poor on account of a long history of exploitation by more powerful countries around the world? For most of human history, the whole world has been poor, however, Africa has always been known to be poor. Europe, mainly England, started to lift itself out of poverty in the 18th century with the industrial and agricultural revolutions, but Africa was left behind as the rest of the world was industrializing. There are many reasons for Africa being poor, that includes: corruption, disease, exploitation, geography and religion. In this essay, I am going to explain what factors affected Africa and made the country so poor.

In evaluating the above examples, the qualitative mixed-method of combining online customer service surveys with observational awareness and focus group with in-depth interviews offers insight on their effectiveness within specified financial areas.

Unlike what I know about Africa, Africa is not poor everywhere. Even Mali, one of the poorest country in the world now, was very wealthy about 600 years ago. Mali was under Ghana Empire’s control before, but Mali Empire was established by Sundiata after the decadence of

African nations regularly fall to the bottom of any list measuring economic activity, such as per capita income or per capita GDP, despite a wealth of natural resources. The bottom 25 spots of the United Nations (UN) quality of life index are regularly filled by African nations. In 2006, 34 of the 50 nations on the UN list of least developed countries are in Africa. In many nations, the per capita income is often less than $200 U.S. per year, with the vast majority of the population living on much less. In addition, Africa's share of income has been consistently dropping over the past century by any measure. In 1820, the average European worker earned about three times what the average African did. Now, the average European earns twenty