- Micronesia

- Denmark

 Income per capita

 Gross national income
 Gross domestic product
 Health as measured by life expectancy, undernourishment, and child mortality
 Educational attainments as measured by literacy and schooling

The most striking feature of the global economy is its extreme contrasts. Comparison is a tool in
economics which helps us assess strengths and weaknesses. Studying and researching the development
of a country, including how strong or weak it is, is possible with comparing a developed and developing
country. The study of comparative development is measured so as to allow for quantitative comparisons
across countries. In this sense, we take look at the comparative development of two countries namely
Denmark and the Federated States of Micronesia, or simply Micronesia.

Let us first give a brief background of the two countries.

Denmark – a Nordic country in Northern Europe. It is the most populous and politically central
constituent of the Kingdom of Denmark, with a geography that is characterized by flat, arable land,
sandy coasts, low elevation, and a temperate climate. It has a total area of 16,580 sq mi and a
population of 5.86 million (as of 2021), of which 800,000 live in the capital and largest city Copenhagen.
According to World Bank’s classification system, this country falls under high-income Organization for
Economic Cooperation and Development (OECD) countries.

Micronesia - a subregion of Oceania, consisting of thousands of small islands in the western Pacific
Ocean. The region includes approximately 2,100 islands, with a total land area of 1,000 sq mi, the largest
of which is Guam, which covers 225 sq. m., and has a tropical marine climate. According to World Bank’s
classification system, this country falls under LMC or lower-middle income countries.

In accordance with the World Bank’s income-based country classification scheme, gross national income
(GNI) per capita, the most common measure of the overall level of economic activity, is often used as a
summary index of the relative economic well-being of people in different nations. According to World
Bank, Denmark had a 62,660 purchasing power parity (PPP) dollars in the year 2020, which was 1.705%
lower than their GNI per capita in 2019. On the other hand, Micronesia had 4,100 PPP dollars in the year
2019, where it increased from 2,550 international dollars from the year 2000, growing at an average
annual rate of 2.65%. When it comes to their gross domestic product (GDP) per capita adjusted by PPP,
by the total population, Denmark had a 55,938.21 US dollars in 2020, which is equivalent to 315% of the
world's average, while Micronesia’s latest record of GDP per capita is at 3,466.40 US dollars in 2019,
equivalent to 20 percent of the world's average.

Aside from the main factors of GNI and GDP of the two countries, let us also examine their indicators of
Health and Education. Besides average incomes, it is necessary to evaluate a nation’s average health and
educational attainments, which reflect core capabilities.
According to the Human Development Reports of United Nations Development Program (2020),
Denmark’s 2019 Human Development Index (HDI) is 0.940, which is above the average of 0.898 for
countries in the very high human development group and above the average of 0.900 for countries in
OECD, positioning it at 10 out of 189 countries and territories. Between 1990 and 2019, Denmark’s HDI
value increased from 0.806 to 0.940, an increase of 16.6 percent. The country’s life expectancy at birth is
at 80.9 years, while their under-5 mortality rate is at 4.2. The country’s health expenditure is 10.1% of
the GDP.

On the other hand, Micronesia’s HDI value for 2019 is 0.620— which is below the average of 0.631 for
countries in the medium human development group and below the average of 0.747 for countries in
East Asia and the Pacific—positioning it at 136 out of 189 countries and territories. Between 2000 and
2019, Micronesia’s HDI value increased from 0.546 to 0.620, an increase of 13.6 percent. The country’s
life expectancy at birth is 67.9 years, with an index of 0.737. The data on their rate of undernourishment
is currently unavailable, but their under-5 mortality rate is at 30.8, which is pretty high, considering that
their health expenditure is 12.4% of their GDP.

In terms of education, Denmark’s expected years of schooling is 18.9 years, with an education index of
0.920. For female, the expected years of schooling is 19.6 with a mean of 12.8 years, while for male is
18.3 with a mean of 12.4 years. All primary and secondary schools have access to internet, and the
population with at least some secondary education is 90.9%, with 0.2% primary school dropout rate. On
the other hand, Micronesia’s expected years of schooling is 11.5 years, with an education index of 0.581.
The data for female and male expected years of schooling is unavailable schooling is 7.8 years. When it
comes to socio-economic sustainability, Denmark’s skilled labor force is 79.7% of the labor force, while
Micronesia is 65% of the labor force.

In conclusion, in terms of health and education, between 1990 and 2019, Denmark’s life expectancy at
birth increased by 6.0 years, mean years of schooling increased by 3.7 years and expected years of
schooling increased by 4.8 years. On the other hand, Micronesia’s life expectancy at birth increased by
4.3 years, mean years of schooling increased by 3.0 years and expected years of schooling increased by
1.5 years.

The economic activity of Micronesia consists primarily of subsistence agriculture, and fishing. The islands
have few mineral deposits worth utilizing, except for high-grade phosphate. The potential for a tourist
industry exists, but the remoteness of the location and a lack of adequate facilities hinder development.
Financial assistance from developed countries is one of the primary sources of income of the country,
with the US pledged to spend 1.3 billion dollars in the islands from 1986-2001. Geographical isolation
and a poorly developed infrastructure are major impediments to its long-term growth.

However, Denmark has been consistently ranked high in measures of happiness and quality of life, but
with the cost of high taxes for a high quality of living. The country also reportedly now uses its own fossil
fuels more efficiently than the rest of the world, ranking first in The World Energy Council Rankings in
2016. The country is also a model of equality and social welfare: the government known for equitable
distribution of income, promoting a high standard of living.

From the data above, these just prove how powerful Denmark is compared to Micronesia, regularly
providing high marks in economy and standard of living. However, new perspectives do not imply that
development is impossible! Instead, they serve to clarify the nature of the great challenges facing many
developing nations, such as Micronesia. There may be weaknesses, but there is much that Micronesia
can undertake through appropriate policy strategies to speed economic and social progress.