Ferl Diane S.

Siño
BSA15

REFLECTION:

Economic growth is the process by which a nation’s wealth increases over time.

Although the term is often used in discussions of short-term economic performance, in

the context of economic theory it generally refers to an increase in wealth over an

extended period. To measure the growth, economic indicators are used and these are

pieces of economic data, usually of macroeconomic scale, that is used by analysts to

interpret current or future investment possibilities. These indicators also help to judge

the overall health of an economy.

In our study, the real gross domestic product growth rate (annual %), gross

domestic product per capita (current US$), consumer price index inflation (annual %),

unemployment rate (% of total labor force) (modeled ILO estimate), official exchange

rate (local currency unit per US$) (period average), net export (constant local currency

unit), and foreign debt are used as indicators to assess the economic condition of

countries from different categories such as developed, developing and underdeveloped.

The countries that were used to demonstrate comparison between the developed

countries are Norway and Singapore; in the developing countries are Philippines and

Afghanistan; and in the underdeveloped countries are Cambodia and Uganda.

I noticed that each country possesses characteristics that made them fall or be

part of a certain category of being either Developed, Developing or Underdeveloped

Country. First of all, I observed that the developed countries are stabled compared to

developing and underdeveloped for they are self-contained flourished, have high
industrial growth, have high Human Development Index, have high per capita income

and GDP. They generate revenue more from the industrial sector as compared to

service sector as they are having a post-industrial economy. Moreover, they have low

rate of unemployment, have relative poverty rate at its lowest, and have established

itself in all fronts and made itself sovereign by its efforts. These characteristics were

proven in the statistics of both Singapore and Norway and I can see that everything is

balanced in the whole economy of those countries that are developed.

Whereas, the developing countries are emerging as a developed country and

they are the one who experience the phase of development for the first time. Usually,

they depend on the developed countries for help to establish their industries. They have

low per capita income and high rate of poverty, have rapid population growth and high

unemployment rate, have lower levels of human capital. They are mostly dependent on

the primary sector and exports of primary commodities. They also have high

international debt as compared to developed with little or no debt at all. The figures and

statistics of both Philippines and Afghanistan also proved such characteristics and I can

say that there are a lot of things that developing countries must work on in order to

improve the status of its people and economic condition of their countries and become a

developed country in the near future.

On the other hand, the underdeveloped countries are experiencing weak

economic growth and have a high rate of poverty. They also have a low amount of

human resource, a high rate of economic vulnerability, mass illiteracy, and heavy

population pressure. The natural growth rate of population in these countries is very

high due to its prevailing high birth rate and falling death rate which also creates a low
standard of living among its people. The level of per capita income very low and also

there is an inequality in the distribution of income along with this low level of income

worsens the situation in these economies to a disastrous level. They also have a very

high foreign debt. Both Cambodia and Uganda have these characteristics that made

them categorized as underdeveloped countries and I think these countries should work

triple time in order to catch up and make a difference in the worse situation they are in

and those developed countries should also help them fix and alleviate their condition.

In conclusion, there is really a big difference between developed, developing,

and underdeveloped as proven by the economic indicators. It is really important to take

notice of those indicators to evaluate and make a solution on how to have economic

growth on their areas especially the developing and underdeveloped countries.