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Development Economics

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Submitted By sanele17
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Introduction
The essay will focus on the subject of rich and poor countries; it will distinguish between four classifications based on income levels. These include low-income country, lower-middle income country, upper-middle income country and high income country. It will provide an analysis and explanation for observed differences and trends. Each category will provide a practical example by comparing the levels of development indicators of the four countries as well as the trends over time. The development indicators include:
Health – This is a state of the whole physical, mental and social well-being and not merely the absence of disease. A person can be in good health and poor health. Health is not just a feature of the daily life; it also appears frequently on the political landscape (Bury, 2005).
Education – this is the act of teaching or getting general knowledge, developing the powers of reasoning and judgment, and generally of preparing oneself for developed life.
Poverty and inequality- it refers to a social phenomenon under which the standard of living of individuals and households in a community or country is persistently below a certain level required physically for sustaining human life according to some accepted social norms (Bhalla & Qui, 2006). Inequality is the gap between the rich and the poor.
GDP per capita- this is a core indicator of economic performance and commonly used as a broad measure of average living standards or economic well-being despite some recognised shortcoming (OECD, 2011).
Low income economy (Mozambique)
Mozambique is a low income country in southern Africa, the country is bordered by the Indian Ocean, and it was involved in a civil war lasting from 1977 to 1992. About 54% of the population are living below the poverty line (WHO, 2009).
Health- the civil war had a huge contribution to the down fall of the health system in the country. The war led to an economic hardship and severe destruction of social infrastructure, including damage to the health care system. The population’s health status was also weakened because of the HIV epidemic, which heavily affects young women (unfpa, 2013). There are three basic health status indicators, infant mortality, under-five child mortality, and maternal mortality, are among the highest in the world (Table 2).

The spread of HIV decreased the health status in Mozambique. The prevalence among male STD clinic pertains tested in the capital city increased from 3 to 20 per cent from 1987 to 1996. And outside Maputo it increased by 26 per cent. The overall estimate of HIV prevalence was 13.2 per cent in 1999 and it later increased to 16.1 per cent in 2000.
There where improvements made in heath since 1992 after the civil war. After the war they were positive outcomes which show a positive trend line

The growth monitoring program also shows a slight improvement in nutritional status among children: between 1996 and 1999, the proportion of children with poor growth has decreased from 10.5 per cent to 8.9 per cent.
Education - The education component is concerned with creating a quality learning environment that promotes child-centred teaching approaches in well-managed classrooms. It includes a range of interventions such as training educators in teaching and school management, promoting the participation of parents and community members in the School Committees, providing quality learning and teaching materials, including desks, and rehabilitating classrooms in need (unicef, 2013). From the mid-1990s the after math of the civil war, there was a serious blow on education infrastructure which resulted on free primary education, to encourage more primary enrolment.
The education system in Mozambique is divided to three main categories: primary, secondary school and high school, this are divided into two namely private and public schools. The private schools are for the well-off Portuguese families and public schools are for the general population.

The graph above shows the net enrolment in primary education by sex, from 1990 they were 43 per cent of boys enrolled in primary education. 1999 the number of boys and girls enrolled in primary education increased. By 2002 there was a father improvement of primary enrolment. 2010 there was a drastic improvement in both boys and girls enrolled in primary.

The graph shows no enrolment on the early 90s as a result of the civil war. Students started enrolling in the late 90s; about 3 per cent of students were enrolled in secondary education in 1999. By 2002 the number of students enrolled in secondary education improved to 4 per cent. Year 2010 16 per cent of male student were enrolled in secondary education
Poverty and Inequality – Mozambique was considered one of the world’s poorest countries. The mean consumption per capita was below the absolute poverty line. In the period 1990 to 2002 the consumption per capita grew by 62 per cent. The poverty headcount fell from 69 in 1996 to 54 per cent in 2002 to 2003, despite the increase or the reduction in poverty half of the population continued to live in poverty. The government is still fighting poverty across the country; on its attempt poverty has declined by 28 per cent in the central region. The headcount poverty has increased in the capital city, while there was a marginal reduction in Inhumane and Gaza province

GDP Per capita- this is an indicator that measures how wealthy a country feel to each of its citizens. The Gross Domestic Product per capita in Mozambique was last recorded at 401.56 US dollars in 2011. The GDP per Capita in Mozambique is equal to 3 per cent of the world's average. GDP per capita in Mozambique is reported by the World Bank. Historically, from 1980 until 2011, Mozambique GDP per capita averaged 234.3 USD reaching an all-time high of 401.6 USD in December of 2011 and a record low of 140.0 USD in December of 1986. The GDP per capita is obtained by dividing the country’s gross domestic product, adjusted by inflation, by the total population. This page includes a chart with historical data for Mozambique GDP per capita (Tradingeconomics, 2012)

Lower-middle income country (Swaziland)
Swaziland is the last absolute monarchy; it is a landlocked country bordered by South Africa and Mozambique. The country generates its revenue from agriculture which includes the growing of sugar cane, forestry and citrus. The country is also involved in mining.
Health- Swaziland has the highest adult HIV prevalence from age 15 to 49 worldwide; it was estimated at 25.9 per cent in 2009. In 2011, a projected figure of 10,900 pregnant women and, in 2009, an estimated 14,000 children were living with HIV. Swaziland is trying to get access to HIV prevention tables, treatment, and care for women and children. HIV testing among pregnant women increased from 39% in 2005 to 83% in 2010. In 2011, 95% of pregnant women living with HIV received successful ARVs for pregnant woman. In 2010, more than 95% of children born received ARVs for. Swaziland has adopted the World Health Organisation 2010 (unicef, 2012).

Education - the education in Swaziland is neither free nor compulsory, the government pays teachers’ salaries while the parents or the community pay for cost such as building the school and the general maintenance of the school. Swaziland implemented a ten-year basic education programme as part of the Southern Africa Development Community (SADC) Protocol on Education. Seven years of primary education are followed by three years of lower secondary education. This system faces several challenges that include ensuring the availability of schools and teachers, and the provision of teacher salaries.

The above graph shows primary enrolment in the kingdom of Swaziland. From the 80s Swaziland had a very good percentage of primary enrolment; this was due to the English colony which left a good education system in Swaziland. During the 90s the level of primary school attendance of male and female began to grow even more early 2000 the primary school attendance began to follow a constant trend.

Poverty and inequality - The poverty rate is the most widely used indicator of family economic security and determines eligibility for programs to assist needy families. Looking at the diagram below it shows that in 2010, a family with two adults and two children was considered poor if its income fell below $22,113. Official poverty estimates released in September 2011 by the Census Bureau show that in 2010, the total poverty rate rose to 15.1 per cent, up from 13.2 per cent in 2008.3 The United States has not seen poverty this high since 1993. While poverty rates among the population ages 65 and older declined between 2008 and 2010, poverty rates among children continued to rise from 19 per cent to 22 per cent a level more than double that of the elderly (Prb, 2013).

GDP Per capita- GDP per capita is gross domestic product divided by midyear population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources the graph below shows that in 2003 the GDP per capita was low as compared to 2011, as years went by it grow and maintained a constant growth in 2008 to 2011. The GDP per capita in Swaziland was last reported at 1813.54 in 2011, the GDP per capita is expected to improve according to a World Bank report published in 2012

Upper-middle income country (Argentina)
Argentina is the second largest country in both South America and the Latin America region.

The country is a federation of 23 provinces and the autonomous city of Buenos Aires, its capital and largest city. It is the eighth-largest country in the world by land area and the largest among Spanish-speaking nations by geographical area of 2,780,400 km2 and is the fourth by population, with over 41 million people
Health – the diagram below shows the Standard and Poor’s Healthcare Economic Indices for commercial and Medicare payers, representing a composite of hospital and professional services. Prices have clearly been rising much faster for services delivered under private insurance than for those delivered under Medicare. Hospital charges were the biggest driver of the widening public and private price gap, with the commercial sector index increasing more than four times faster than the Medicare index over the last year 8.85% versus 2.04%. Physician charges in the private sector outpaced those under Medicare by 2.5 times 7.74% versus 3.11%. Congressional overrides to scheduled Medicare physician payment cuts at least partly explain the smaller Medicare and private sector growth differential for physician charges versus hospital charges. Also, Medicare’s bundled payment approach for hospital charges could be more cost-effective than the private sector’s predominant fee-for-service model
Figure 2. S&P Healthcare Economic Indices: 12-month moving averages,
2004 – 2012

Education- the graph below shows the Ratio of girls to boys in primary and secondary education percentage in Argentina was 104.37 in 2009, according to a World Bank report, published in 2010. Ratio of girls to boys in primary and secondary education is the percentage of girls to boys enrolled at primary and secondary levels in public and private schools. This page includes a historical data chart, news and forecasts for Ratio of girls to boys in primary and secondary education in Argentina.

Poverty – The Poverty headcount ratio at dollar2 a day (PPP) (% of population) in Argentina was last reported at 1.87 in 2010, according to a World Bank report published in 2012. Population below $2 a day is the percentage of the population living on less than $2 a day at 2005 international prices. As a result of revisions in PPP exchange rates, poverty rates for individual countries cannot be compared with poverty rates reported in earlier editions.This page includes a historical data chart, news and forecasts for Poverty headcount ratio at dollar2 a day (PPP) (% of population) in Argentina (tradingeconomics, 2012).

GDP per capita – The Gross Domestic Product per capita in Argentina was last recorded at 17554.12 US dollars in 2011, when adjusted by purchasing power parity (PPP). The GDP per Capita, in Argentina, when adjusted by Purchasing Power Parity is equivalent to 80 per cent of the world's average. GDP per capita PPP in Argentina is reported by the World Bank. Historically, from 1980 until 2011, Argentina GDP per capita PPP averaged 8529.81 USD reaching an all-time high of 17554.12 USD in December of 2011 and a record low of 4810.45 USD in December of 1980. The GDP per capita PPP is obtained by dividing the country’s gross domestic product, adjusted by purchasing power parity, by the total population. This page includes a chart with historical data for Argentina GDP per capita PPP (tradingeconomics, 2012).

High income countries (United Kingdom)
The United Kingdom is a constitutional monarchy and parliamentary democracy, with a queen and a parliament that has two houses: the House of Lords, with 574 life peers, 92 hereditary peers, and 26 bishops; and the House of Commons, which has 651 popularly elected members

Health – Following the discovery of AIDS in the UK in the early 1980s, there was a steady increase in the number of people diagnosed with HIV. From 1987 to 1990 the cumulative number of reported HIV diagnoses almost doubled, from 8,888 to 15,570.

HIV/AIDS was first concentrated among three 'high-risk' groups - men who have sex with men (MSM), injecting drug users and people who had received blood products.

Between 1990 and 1998 the epidemic was fairly steady with between 2,000 and 3,000 new HIV diagnoses reported annually. From 1999 there was a steep increase in the number of annual HIV diagnoses, peaking in 2005 at 7,824. There has been a slight decline in subsequent years, but the number of new HIV diagnoses today is still far higher than the pre-2001 figure.

The introduction of combination antiretroviral treatment in the mid-1990s has resulted in a steep decline in the number of AIDS cases and deaths reported each year. In 1997, deaths among people living with HIV amounted to 748, compared to 1,481 the previous year. Since 1998 the annual number of people living with HIV who have died has remained more or less constant, usually between 400 and 600 each year.

Education
The School enrolment; primary (% net) in the United Kingdom was 99.62 in 2009, according to a World Bank report, published in 2010. Net enrolment ratio is the ratio of children of official school age based on the International Standard Classification of Education 1997 who are enrolled in school to the population of the corresponding official school age. Primary education provides children with basic reading, writing, and mathematics skills along with an elementary understanding of such subjects as history, geography, natural science, social science, art, and music. This page includes a historical data chart, news and forecasts for School enrolment; primary (% net) in the United Kingdom (tradingeconomics, 2012).

Poverty
Table 1 – Groups in poverty

Table 1 shows the proportions of different groups in poverty and how these have changed in recent decades. The poverty rate for pensioners has fallen markedly in the last twenty years; at 17 per cent; it is now around half that of the early 1990s. Conversely, the proportion of working age adults without children in poverty has risen steadily, from 7 per cent in 1981 to per cent in 2010 and 11. Child poverty raised during the 1980s to 31 per cent, and only started falling in the 2000s (tradingeconomics, 2012).

GDP per capita
The Gross Domestic Product per capita in the United Kingdom was last recorded at 28032.79 US dollars in 2011. The GDP per Capita in the United Kingdom is equivalent to 226 per cent of the world's average. GDP per capita in the United Kingdom is reported by the World Bank. Historically, from 1960 until 2011, the United Kingdom GDP per capita averaged 18761.0 USD reaching an all-time high of 28928.9 USD in December of 2007 and a record low of 10479.7 USD in December of 1960. The GDP per capita is obtained by dividing the country’s gross domestic product, adjusted by inflation, by the total population. This page includes a chart with historical data for the United Kingdom GDP per capita (tradingeconomics, 2012).

Reference list
Michael. (2005). Health and Illness
Polity Short Introductions
Short Introductions.BuryPublisherPolity.
Bhalla, S. & Qiu, S. (2006). Poverty And Inequality Among Chinese Minorities
Issue 22 of Routledge studies on the Chinese economy / Routledge studies on the Chinese economy .PublisherRoutledge,
OECD. (2011). National Accounts at a Glance.OECD Publishing.
Who. (2013) . retrieved from 14 April 2013 from http://www.who.int/countryfocus/cooperation_strategy/ccsbrief_moz_en.pdf
Unfpa.(2013). Country info. Retrived 14 april 2013. From http://www.unfpa.org/sowmy/resources/docs/country_info/profile/en_Mozambique_SoWMy_Profile.pdf
Unicef. (2012). Education in mozambique . Retrieved . 15 April 2013. From http://www.unicef.org/mozambique/education.html
Prb. (2011) . population bulletins . Retrieved 15 april 2013, from http://www.prb.org/Publications/PopulationBulletins/2011/us-economicsocialtrends-update1.aspx
Tradingeconomics. (2012). GDP per capita. Retrieved 15 April 2013. From http://www.tradingeconomics.com/mozambique/gdp-per-capita

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