Comparative Analysis Of Economic Developing Countries - 3025 Words

Give A Comparative Analysis Of Economic Development Of Three Developing Countries (Nigeria, Ghana, and Togo) (Research Paper Sample) Content: Comparative Analysis of Economic Development: Case Study of Nigeria, Ghana, and TogoNameInstitutional AffiliationIntroductionMajority of the African countries are either in the initial or precondition level as stipulated by Rostows five stage of development. However, a divergence exists across the nations on developmental phase due to the social, economic and political aspects affecting development. High poverty levels, dependency syndrome, political instability, wars and natural calamities have characterized the slow development progress of the African states. Similarly, demographic factors and enactment of policies do hinder or steer the economic growth process (McConnell Bruce 2014). Nigeria, Togo, and Ghana are some of the Africa countries in West Africa that this paper looks at with an analysis on their economic development since 1945 to 2000. In spite of the close regional proximity of these states, their economic level differs. The three countries GDP, populat ion and GDP per Capital were relatively similar in the 1940s which are never the case in modern day (Bertocchi Canova 2002). The report employs the Maddison data to measure and analyze the differential factors inherent in these countries.Overview of development determinantsWest Africa countries underwent colonialization that made many of the states rely on colonial policy structures even after their independence. In the period just after the WWII to 1960s, most countries were subject to colonial power and rule thus, economic development was minimal. Capitalism and monopolistic imperialism pigeonholed the colonial power who manipulated the cheap labor and raw materials to benefit their home countries. However, environmental factors favored some countries over others. As argued by Diamond (1997), environmental differences such as geography, culture and generic aspects lead to power parity and development. Arguably, the difference in administration of the colonial powers affected the locals response to ethnic conflicts and civil law systems. For instance, Togo in the late 1950s it came under French governance while Nigeria and Ghana were British colonies. The legal structures laid down by these European imperialists formed instrumental aspects to post-independence governance. Nonetheless, political actors influence political stability, growth, and development.The intervention mechanism of each state towards attaining economic development also differ across countries. Fosu (2009) indicate that regulation of the market is necessary. Unlike classical economists view of the market having a natural equilibrium through the supply and demand forces, government intervention as stipulated by the monetarists. The state guard against protectionism in international trade has a favorable and efficient tax system and curbs corrupt activities that hinder development. The intervention also includes advocating for property rights that promote investment opportunities thus, incre ased employment and wage rates for a countrys population. Unfortunately, Zhang points out that political actors lack ideological coherence but heavily endowed with personal drives, interests, and tribalism. Hence, the failed political environment across African countries to spearhead economic development. The unstable political context of West Africa countries hinders the development of long-term macroeconomic policies that strengthens sustainable growth.Furthermore, integrative processes of social, institutional and economic actors reflect on the living standards of people if people meet their basic requirements (Todaro Smith 2012, p. 23). As connoted by Karl Marx, materialism exhibits the economic situation of a nation. Consequently, the forms of production systems create the deterministic module of economic growth. Marx distinguished upon primitive, feudal, slave and capitalist society based on the production systems. According to him, forces of production regulated social cha nge and social relations (Schumpeter 2008). Similarly, Togo, Nigeria, and Ghana have variant production mechanism in spite of their geographical closeness. Moreover, Acemoglu (2000) asserts that every society has a growth impetus which depends on whether societal institutions are inimical to growth or not.The argumentRegarding economic development of the three countries, this paper answers the question of the causes of variant economic development level of Togo, Ghana, and Nigeria. The basis of the argument is that social, political and economic factors underlying macroeconomic management determine the growth and development rate of a state towards economic sustainability (Brempong Traynor 1999). The social element includes culture and demographic issues while the political factor focuses on government policies and political instability (governance). Also, economic factor looks at the trade relations, natural resources. Taxation and GDP mechanism of the countries and it affects pro duction.The choice of the country greatly relies on the geographical proximity, similarities between the economic problems facing the region and the length of independence the countries have enjoyed. Similarly, the countries like many other African states belong to the third world nations (developing) where poverty, poor government policies, high infant mortality, and disease are prevalent. The colonizing power differs, but the countries common variables make them favorable for this case study. In spite of their similarities, the countries have in recent decades posted varying economic development (Appiah-Adu Bawumia 2015). For instance, Togos GDP per capital has had a downward slope while Nigeria and Ghana have progressively posted positive GDP per capital figures. In 2000, Togos GDP per capital was at half that of Nigeria and Ghana. Additionally, Ghana in the late 1940s and early 50s had a very high almost double GDP per capital to that of Nigeria. However, the two countries seem to compete favorably with almost equal GDP per capital as at 2000 and recent years (Maddison 2009).Political stability and social contextGhanaSince 1945, Ghana has experienced military coups and overthrown of the government in two attempts in 1966 and 1972. The initiation of the National Commission for Democracy led to the introduction of a multiparty system that saw peaceful elections in 1992 (Grier 1999). Prior to this, war and clashes between the civilians and the military brought instability to the country. The violence intensified with similar activities taking place in neighboring countries like Cote dIvoire (Danquah 1994, p. 9). In the 70s, Ghanas economy was termed as the fastest declining economy in the world. During this time, the countrys inflation rate was very high. The inflationary period increased the level of unemployment which was minimal following the resource (cacao) boom that followed independence in the 60s.Thus, political instability creates market distortions affecting the whole economy. For instance, Ghanas conflict with the neighboring Togo in the 60s and 70s over possession of Togo in the mainland Ghana further enhanced deteriorating relations. It aggravated political differences with frequent clashes especially around the borders where smuggling of Ghanaian products. It is at this time that Ghana was experiencing an economic crisis. Political instability also results into the poor state of the communities, reduces the living standards of people and accessibility of resources by people. Fig 1. Shows how the years the country experienced wrangles yielded low real GDP per capita. Productivity progressively declined to the 2000.NigeriaNigerias political state has been characterized by religious and ethnic differences in addition to military takeovers. The political parties in the region were divided according to the tribe, region and class status of individuals. Thus, creating ethnic rivalry and mistrust permeating power struggle as un derlying political stability and governance in Nigeria. Immediately after independence, Nigeria enjoyed a considerable economic growth with the oil boom. However, the aftermath of the Nigerian-Biafran war (1967-1970) left the country in an economic crisis. Since then, Nigerias propensity to religious and ethnic violence was very high (Aremu 2016, p. 314).The country has deep-rooted ethnic militias that initiate violence and frequent inter-region, religion or tribal wars. Political immaturity, religious intolerance, disunity, and leadership incapability showed the fragility state of Nigeria in the post-colonial era. Forces of national disintegration took effect as political leaders failed to maintain law and order in the Nigerian society. Leadership failure saw the fall of Nigeria through violent military incursion around the 70s to 90s. In the decade following country still experienced a rampant ethnoreligious crisis over access to power hence, the continuous trend of instability in the region. To some extent, the local vigilantes vandalized the oil pipelines that formed the countrys backbone of trade and economy. Political instability affects societys wellbeing. The high number of people become refugees, displaced, killed and development lags behind due to property destruction (Fagbadebo 2007). Similar to the economic decline and general output of the economy in Ghana, fig 2 also depicts the same outline experienced in Ghana.TogoTogo is a small sizeable country which like many West African countries has been through political turmoil that has seen its economic contraction leading to...