ECONOMIC DEVELOPMENT

A Research Paper Presented to

Mrs. Rizza Mae Catungal

In Partial Fulfilment

Of the Requirements for the Subject

CBM 122

Asarez, Arlyn

Brigole, Joewelyn

Cahapon, Robert Mina

Sang-an, Richie Mae N.

January, 2020
 Poverty, Unemployment, and Inequality has been the major issue faced in
every economy, and these three factors were the prevailing problem that
international bodies are trying to fix. In this paper we compared three countries
according to their corresponding 2018 Human Development Index result and rank for
2019 Human Development Report. For cross country comparison, a statistical tool
which measure’s the Human Development in each country was utilized. Human
Development has three basic dimensions namely a long and healthy life, access to
knowledge and a decent standard of living. The said dimensions where measured as
follows; life expectancy for long and healthy life; mean years of schooling among the
adult population, which is the average number of years of schooling received in a
life-time by people aged 25 years and older; and access to learning and knowledge
by expected years of schooling for children of school-entry age, which is the total
number of years of schooling a child of school-entry age can expect to receive if
prevailing patterns of age-specific enrolment rates stay the same throughout the
child's life for knowing Knowledge level; lastly, Gross National Income (GNI) per
capita expressed in constant 2011 international dollars converted using purchasing
power parity (PPP) conversion rates is used to measure Standard of living.
International data served as the basis to arrive at the HDI the results. United Nations
Population Division (the life expectancy data), the United Nations Educational,
Scientific and Cultural Organization Institute for Statistics (the mean years of
schooling and expected years of schooling data) and the World Bank (the GNI per
capita data). The following instruments and methodology were followed to ensure
comparability and produce result that will help the country to be informed in its
economic state not just limit on its income but also on socio-economic status.

The countries compared in this research are Germany, Nigeria, and Democratic
Republic of Congo. This paper will present the results of the said countries and the
researchers were to communicate conclusions and recommendations of each
country.

Table A: Congo (Democratic Republic of the)’s HDI and component indicators for
2018 relative to selected countries and groups

COUNTRY HDI HDI Life Expected Mean GNI per

value rank expectancy years of years of capita
at birth schooling schooling (2011
PPP
US$
Germany 0.939 4 81.2 17.1 14.1 46946
Nigeria 0.534 156 54.3 9.7 6.5 5086
Congo 0.459 179 60.4 9.7 6.8 800
(Democratic
Republic of
the)
Germany
81.2−20
Health Index = = 0.94
85−20

17.1−0
Expected Years of schooling = = 0.95
18−0

14.1−0
Mean Year = = 0.94
15−0

0.95+0.94
Education Index = = 0.95
2

log(46946)−log(100)
Income Index = log(75000)− log(100) = 0.93

HDI =(0.93 ∗ 0.95 ∗ 0.94)1/3 = 0.94

Nigeria
54.3−20
Health Index = 85−20
= 0.53

9.7−0
Expected Years of schooling = = 0.54
18−0

6.5−0
Mean Year = = 0.43
15−0

0.54+0.43
Education Index = = 0.49
2

log(5086)−log(100)
Income Index = log(75000)− log(100) = 0.59
HDI =(0.59 ∗ 0.54 ∗ 0.53)1/3 = 0.56

Nigeria has the lowest life expectancy in West Africa. According to the
latest World Health Organization (WHO) data, around 54.5 years of age is the
average life expectancy of Nigerians. This gives the country a low World Life
Expectancy ranking of 178. This data published in 2018, found that men are
expected to live for an average of 53.7 years while women live for an average of
55.4 years.

Major causes of lower average life expectancy in third world countries may be
the opposite of those in countries of higher life span. There are many cultural,
genetic, and environmental factors that could contribute and interact to produce the
obtained outcome.

One of the leading causes of Death in Nigeria was Influenza and Pneumonia
has been cited as the number one cause of death in the country. It is responsible for
305,460 deaths. Diarrheal diseases (186,218 deaths) is second on the list, followed
by tuberculosis, with 175,124 deaths, HIV/AIDS (168,900 deaths) and Malaria with
112,371.

In an earlier report, a Doctor of Medicine, University of Ibadan, Dr. Dorothy

Esangbebo explained that a 2008 estimate showed that every hour, 20 children
across Nigeria die due to pneumonia, adding that this figure was the highest in Africa
and the second highest in the world. She therefore called for pneumonia vaccines to
be available, as this would save many lives in the country.
Recommendation

Based on researchers’ comprehensive study it was found that exclusive

breastfeeding during the first six months of life, children can be protected from
pneumonia and many other diseases. Also, if pneumococcal vaccines available to all
Nigerians, the prevalence of death rates from the scourge will greatly reduce. Their
unhealthy lifestyle, unbalanced diet, tobacco use, harmful alcohol intake, and
physical inactivity are the major clustering risk factors for the development of
cardiovascular; hence the need to live a healthy life as it would greatly reduce the
prevalence of the diseases, which in turn will reduce deaths in the country.
Therefore, the Life Expectancy of Nigeria will be improved if all of the people will pay
attention to their health and give time to their self not to be sick, so that they will not
able to contaminate, infect or any viruses that can result a lowest life expectancy in
particular country like Nigeria.

Democratic Republic of Congo

60.4−20
Health Index = = 0.62
85−20

9.7−0
Expected Years of schooling = = 0.53
18−0

6.8−0
Mean Year = = 0.45
15−0

0.54+.45
Education Index = = 0.50
2

log(800)−log(100)
Income Index = log(75000)− log(100) = 0.31

HDI =(0.31 ∗ 0.50 ∗ 0.62)1/3 = 0.48

Despite being endowed with rich natural resources, Democratic Republic of

Congo has an HDI value 0.459 ranking 179 out of 189 countries labeled as one of
the countries that has low development. Its rich sources of minerals served as an
eye interest of conflicts since World War ll. With sparse data the United Nations
Economic Commission for Africa however concluded that there is decline of living
standards in most provinces.

The HDI value represents the value of 0.62 in life expectancy, educational
index of 0.50, and 0.31 on their income index.

Life expectancy result are due to diseases such as cholera, hepatitis

A, malaria, polio, measles and typhoid fever that are highly rampant in the country.
1.2% of the Congolese are affected by HIV/AIDS. In the DRC, malaria is the primary
cause of morbidity and mortality. The DRC has the second-highest number of
reported cases of malaria worldwide. Children are especially susceptible to malaria,
and the disease is responsible for the deaths of 19 percent of children under the age
of five. Tuberculosis is another leading cause of death. Infectious diseases have
reduced the life expectancy of the Congolese to only 48 years, while one in seven
children dies before the age of five.
 Inadequate food supply contributed to the malnourishment of one out of every
four children. Statistically, nearly 70 percent of the DRC population have little access
to food according to the Food Security Portal. Malnutrition in children is especially
high in war-torn provinces that rely on the mining industry. Due to the ongoing
violence population displacement has been the principal contributing factor to food
shortages and the United Nations estimates that approximately 2.3 million persons
are displaced in the DRC. The conflicts in mining provinces have disrupted
harvesting activities resulting in three million people being at risk of starvation.

In spite of the fact the Democratic Republic of the Congo (DRC) has Africa's
largest freshwater resources, there is a scarcity of safety water for drinking. The
country has one of the lowest rates of access to drinking water in Sub-Saharan
Africa. Only 46 percent of the population had access to an improved drinking
water source in 2012.Furthermore, the sanitation coverage was estimated at only 31
percent in 2012. Up to date and accurate information on water supply and sanitation
services in the DRC is scarce. As a result of inadequate water supply and sanitation
services, many inhabitants are suffering from waterborne diseases,
including diarrhea, typhoid, and cholera. In the country women and children holds
the duty of providing water supplies for their families. Water supply scarcity
transforms this process into a highly laborious and time-consuming activity, which
decreases the amount of time available for education.

Chronic economic mismanagement and internal conflict has led to serious

under-investment over many years, especially that the means of transportation in the
country is arduous that present serious barriers to road and rail construction, and the
distances are enormous across the country.

Severe shortage of teachers in public schools are another concern with the
education system one of the factor why their educational index is also low. The
national average for primary schools is one teacher for 37 pupils; however,
marginalized or rural areas endure much worse ratios. On average, educational
programs in marginalized areas consist of one teacher to 100 pupils per class.
Complications in DRC’s education system stem from the 1980s when the state’s
budget essentially evaporated. Because of structural changes and program
implementations within the government, the educational budget was cut from 25% to
7% of national state expenditure. Between 1982 and 2002, teachers’ monthly
salaries decreased from $68 to $13. In addition to the governmental modifications
that resulted in the economic crisis of the 1990s, wars devastated the DRC. To this
day, many natives struggle with the effects of wars that raged between 1996 and
2003. Current violence in the east of the country as well as corruption and poor
governance have also been an obstacle to education.

Income index resulted low as a result of corrupt activities of national and

international corporations. The corporations instigate and allow the fighting for
resources because they benefit from it. A large proportion of fatalities in the country
are attributed to a lack of basic services. The influx of refugees since the war in 1998
only serves to worsen the issue of poverty. Money of the taxpayers in the DRC is
often misappropriated by the corrupt leaders of the country, who use the money to
benefit themselves instead of the citizens of the DRC. The DRC is consistently rated
the lowest on the UN Human Development Index.

A major problem for people trying to start their own companies is that the
minimum amount of capital needed to launch the company is 5 times the average
annual income, and prices are regulated by the government, which almost forces
people to have to work for the larger, more corrupt businesses; otherwise, they won't
have work. It is hard for the DRC to encourage foreign trade because of the
regulatory barriers.

The nation also faces the problem of human rights and the countless crimes
against humanity because while many have returned home, an estimated 1.5 million
are still displaced. DR Congo is also infamous and heavily criticized for its treatment
of women. The east of the country has been described as the “rape capital of the
world” and rates of sexual violence has been described as the worst in the world.

Conclusion

In conclusion, Democratic Republic of Congo has the lowest HDI compared to

the countries aforementioned. Political instability, a lack of infrastructure, issues with
corruption and centuries of both commercial and colonial extraction and exploitation
resulted to their inability to rise. Children are risk of starvation and are exposed to
infections, and the fighting has displaced millions of Congolese in which there is a
lack of access to shelter, water, food and medicine which contributed to their low life
expectancy. Congo’s underdevelopment on infrastructure and roads and constant
war resulted to their low value of education. Their GDP per capita of $800, many
government programs such as basic education have been left underfunded. While
mining growth has somewhat boosted the country’s economy, the elite are said to
syphon off revenue for their own personal gain due to the nation’s lack of strong
central government. The reason, also, they are not adequately developed in terms of
industries in a sense that their GNI is not to lend capital for potential investors within
the country plus the lacking of knowledge in business, Democratic Republic of
Congo experiences too little holistic development.

Recommendation

Eliminating political instability and corruption must be their first concern in

attempt to experience high development, since it has been the main factor of the
Democratic Republic of Congo’s economy being underdeveloped even from the start
and the main reason why it undergone crises. Inconsistency on upholding laws to
protect citizens and provide security for their country resulted to different investors
abusing its power of having more must be diminished, wherein its leaders must
prioritize the constituents’ safety and nation’s progress above all. Different
international organizations have already took the initiative to fund in support for
Government projects that includes strengthening the health system for maternal and
child health, expansion of electricity access, water supply reconstructions, and urban
and social rehabilitation programs but the prevailing personal interest of political
leaders make their efforts and money wasted. Though the fact is, their HDI have
been experiencing increase but still immense efforts are needed to be conducted
especially those who are in remote areas. Therefore, to eliminate the factor that has
been detriment of their economic development even from the start, corruption, they
choose leaders that will put the nation’s benefit first instead of its personal agenda.