All countries of the world are classified into one of the three broad

categories; developed countries, transition economies/countries and

developing countries. Critically analyze why some countries have made
progress towards development while others are transition and many others
remain poor.

ANALYSIS ON REASONS WHY SOME COUNTRIES ARE DEVELOPED,

TRANSITIONING OR POOR.

This academic presentation analyses why some countries in the world

have made rapid progress towards development while some are transitional
and others remain poor. First of all, a country is a set region that occupies a
population that has a political entity asserting authority over it’s
geographical area.

A developed country is one that has advanced technological

infrastructure, high standards of living and has a strong economy. Developed
countries such as the United States, Japan and Canada are characterized by
high standards of living and income, high levels of industrialization and
infrastructure, low unemployment rates and foster equal distribution of
income. Transition economies such as Russia , Poland, Angola and Eastern
European countries on the other hand refer to nations that are undergoing
significant economic and political transformation from centrally planned or
command economies to market-oriented systems characterized by price
liberalization, macroeconomic stabilization, deregulation and privatization
while Developing or poor countries such as Zambia, Brazil and Ethiopia are
nations that have not reached the high level of industrialization,
infrastructure development or economic prosperity compared to developed
countries and are characterized by low per Capita income, high rates of
unemployment and population growth, limited access to technology and
healthcare as well as dependency on primary commodities such as copper.
According to Todaro .M and Smith .S (2015) Economic Development (pg42)-
United States, ‘ Developing countries are those with low, lower-middle or
upper-middle incomes’

Some countries like the United States are developed today because they
had the ability to exploit natural resources and initiate and sustain long term
growth. According to Todaro .M and Smith.S (2015) Economic Development
(Pg74)-United States, ‘Developed countries could take advantage of their
relatively strong financial position to widen the income gaps between
themselves and less fortunate countries in a long period of income
divergence’
 Secondly, Developed countries managed to control their population
growth. North American countries did not exceed two percent of the annual
growth rate during the early development of the states which contributed to
their development. Thirdly , Migration of highly skilled and educated
professionals from developing countries to developed countries continues to
contribute to the rapid growth of Developed countries.

Having relatively stable political structures and expansion of export

markets led to large scale manufacturing industries. European countries and
North America were able to participate in the dynamic growth of
international exchange on the basis of free trade. The United States ,Canada
and the United Kingdoms had economic rules in place that provided a
relatively broad access to opportunity for individuals with entrepreneurial
drive. This enabled high employment and production levels that contribute
to the growth of the economy as well as society when resources tricked
down to other factors of development.

Transition economies, however, take longer to acquire development in

other aspects other than economic and political because some parts of the
country remains poor when resources from economic growth fail to cater for
equal distribution of income. Transition economies face challenges of
inflation and corruption in the market systems due to high interest rates
from privatization. Inequality grows with time as people become more profit
driven hence capitalism strengthens. A good example is the country China.

On the other hand, Developing countries remain poor because of

factors such as conflict. Ethnic and religious conflicts in countries such as
Afghanistan and Rwanda lead to widespread death and destruction of
infrastructure that is essential for economic growth. According to Todaro. M
and Smith. S(2015) Economic Development,‘The greater the ethnic,
linguistic and religious diversity of a country, the more likely it us that there
will be internal strife and political instability’ . Most developing countries in
Africa are land locked thus have lower income than coastal economies
because they suffer tropical pests that affect their agriculture, diseases such
as malaria , water resource constraints and extremes of heat. Along with
lower industrialization due to unequal employment, developing countries
also tend to have a higher dependence on primary exports such as copper in
country like Zambia.

Furthermore, developing countries have underdeveloped market

systems that lack legal systems that enforce contracts and validates
property right, stable and trustworthy currency and quality infrastructure of
roads and utilities that result in low transport and communication cost to
support international trade. This hinders contribution to Gross Domestic
Product and the growth of the economy at large at it affects the taxes on
imports and rates of export of the country. Developing countries also depend
on developed countries for environmental preservation. They endure what is
called environmental dependence , in which they must rely on the
developed world to cease aggravating the problem and develop solutions ,
mitigation at home and assistance to developing countries. An example is
Zambia’s dependence on the developed world to assist in the cultivation of
marketable crops and preservation of trees. Colonial legacy also contributed
to the reasons some countries are currently poor because the colonial era
institutions often favoured extractors of wealth rather than creators of
wealth thus harming development both then and now.

In addition, Illiteracy and lack of human capital in developing countries

has contributed to their underdevelopment because of lack of skill and
technology results in low production and low income which affects the
economy. ‘ Very low income levels leads to low investment in education and
health as well as plant , equipment and infrastructure ‘,( Todaro. M and
Smith. S(2015) Economic Development (Pg57).

Developing countries have remained poor because of lack of innovation

such that there is mass failure in production due to insufficient resources.
These countries export primary commodities that can be utilized to produce
into finished goods on the market. Lack of proper government policies and
investment due to corruption. A country such as Zambia has remained poor
because of lack of employment as well as misappropriation of government
funds that are supposed to be allocated to development of infrastructure.
Developing countries continue to remain poor because they fail to
accumulate human capital in terms of health, education and skills. ‘
Compared with developed countries much of the developing world has
lagged in it’s average levels of nutrition, health and education’ , Todaro. M
and Smith. S(2015) Economic Development(Pg59)- United States.

To sum it up, development of a country depends on it’s political stability

that assures investment, technology that improves productivity that
promotes export , advanced infrastructure that makes retail and
international trade easier and economic policies that support private
investments. A country that manages to attain these has a higher chance at
development. A country Zambia has achieve sustainable development if it
continues to invest in education and industrialization in the business sector
as well as in social development.