Hiedelyn I.

Llano ECO 4112-5

BS Accountancy 1-5 Prof. Julia N. Peralta

COMPARATIVE ECONOMIC DEVELOPMENT

( Group 2 Reflection paper )

Our report is about Comparative Economic Development, which would clearly be focused on
comparing graphs and tables and would very probably include a variety of data and rates. To be honest,
when I first heard the topic for our report, I was a little anxious since it will be comparing, and because it
will be comparing, we need to completely comprehend each highs and lows of every graph and table that
we will show. As a result, our report covers four subtopics based on developing and developed countries.

We began our reporting by demonstrating how dense Singapore's economy is. We stated that
Singapore is a high-income economy, which is understandable given the country's wealth and quality. We
also noted that Singapore has a high unemployment rate and poverty levels, indicating how strong their
economy is. When it comes to exports and domestic demand, their GDP has fallen since the pandemic
outbreak, but as more vaccines have been available and activity has increased, the economy will grow at
its quickest rate in a decade. We addressed Singapore's currency and central bank, which plainly shows in
the table we gave that it declined in 2018 and is beginning to recover in 2021. As per the industry and
trade, Singapore is still a heavily urbanized economy. According to the study and ranking, Singapore's
economy scored second in the World Bank's 2020 and first in the Heritage Foundation's index of
economic freedom, placing first among the 39 Asian countries.

The very first topic is defining the developing world, where it defines that the developing world
is commonly defined through its per capita income (PCI), which is a country's total gross national income
divided by its total population. Also there is a Several agencies offer a classification of a country by their
economic status, but the best-known system or way to define a developing country is that of the
International Bank for Reconstruction and Development. A World Bank classification system uses per
capita gross national income to classify 210 economies having populations of at least 30,000 people
(GNI). The World Bank defines developing countries based on income classes, geographic regions, and
operational loan classifications. This is to assist data users in conveniently grouping and comparing
statistical data of interest, as well as to provide relevant statistics. Lower-middle-income economies have
a GNP per capita between $1,046 and $4,095; upper-middle-income economies have a GNP per capita
between $4,096 and $12,695; and high-income economies have a GNP per capita of $12,696 or more.
The quotas or cut-offs for this category are derived using the World Bank's Atlas approach, which is
based on GDP converted to current US dollars. East Asia and the Pacific, Europe and Central Asia, Latin
America and the Caribbean, the Middle East and North Africa, North America, and Sub-Saharan Africa
are the geographical regions classified. There are three operational lending classifications: the
International Development Association (IDA), which is part of the World Bank and assists the world's
poorest countries, the International Bank for Reconstruction and Development, which provides loans to
middle-income developing countries, and Blend, which occurs when a country is IDA-eligible based on
per capita income levels and is also creditworthy for some IBRD borrowing.
 The second topic is Measuring development for quantitative comparison between countries,
which examines the streets of the haves and have-nots through the prism of human development. Human
Development Report 2006 of the United Nations Development Program Among the countries colonized
by European powers over the last 500 years, those that were relatively prosperous in 1500 are today
generally impoverished, reflecting changes in institutions brought about by European colonization. They
also define some unfamiliar terms that were addressed in order to fully understand the discussion of the
three facets of development, which are purchasing power parity, which defines the measuring of prices in
different countries that uses the prices of specific goods to compare the absolute purchasing power of the
countries' currencies. Life expectancy, undernourishment, and child morality are all indicators of health.
The final one is educational attainment, which is assessed by literacy and schooling.

The third topic is the Characteristics of the Developing World: Diverse Within Commonality In
this topic, we have 5 characteristics of the developing world. First, as stated at the beginning of the
chapter, there is a large productivity gap between established economies such as the United States and
other developing countries such as India and the Democratic Republic of the Congo. However, there is a
wide range of diversity within these and other developing countries. Some nations with averages below
what is considered high wealth are designated developing in most taxonomies, while developing areas
have lower average levels but considerable income disparities. In reality, when income levels are low, a
vicious spiral can arise. Low income leads to insufficient investment in education, health, plant and
equipment, and infrastructure, resulting in low productivity and economic stagnation. Second, lower
levels of human capital, such as health, education, and skills, are crucial for economic growth and
development. In terms of nutrition, health, and education, most developing countries have lagged behind
developed countries. South Asia and Sub-Saharan Africa are two of the most populous regions on the
planet. Furthermore, there are numerous links between the progress of health and education. And one
statement that sticks out to me is this one: "Extreme poverty arises from a lack of human capital, social
and political isolation, and other problems." Which is correct. The third factor is the increased pace of
population expansion. Low-income developing countries have extraordinarily high birth rates compared
to industrialized countries, which have birth rates that are generally near to or even below replacement
levels. Some developing countries, most notably Africa, continue to see rapid population increase.
Middle-income developing countries vary more, with some having birth rates comparable to those in
developed ones. Low-income countries have roughly three times the birth rate of high-income ones. As a
result, higher birth rates need the active workforce supporting nearly twice as many children as it does in
wealthy countries. The fourth is more social fractionalization, which specifies Ethnic, linguistic, and other
societal divides are widespread in low-income countries, and this process is known as fractionalization.
This is occasionally followed by civil turmoil and even violent war, causing developing countries to
devote enormous resources in reaching political settlements, if not national consolidation.

In conclusion some of the issues were initially difficult for me tocomprehend, but as the
discussion progressed, I grew more conscious of them. With the passage of time, I became more
knowledgeable about the issue. A developed country is one that has a high standard of living. A
developed country has a high level of industry and individual prosperity, whereas a developing country
progresses more slowly. Due to a lack of modernism and a low per capita income, it is vital that they be
contrasted. Since it allows for comparisons, my favorite topic was how low-income countries vary from
developed countries. higher-ups to compare our economy to theirs and see what improvements we can
make.