How Developing Countries Should Manage Economic Development - Essay Example

How developing countries should manage economic development affiliation How the developing countries should manage economic development Developing countries face many challenges, as they strive to ensure that there is economic development in their countries1. The government can have skilled personnel and the support from financial institutions, but they may not have the resources to implement the policies. Corrupt bureaucracies, lack of competence and set of anti-development priorities, are some of the hindrances to economic development2. Alternatively, the problems that may be caused by external factors, which are beyond their scope. This paper focuses on a journal about East Asian economies, which is an example of the competent development of an economy. This case shall be compared to Sub-Saharan Africa since it has a record of failed and poor development of the economy. Governance and democracy are two different aspects in a country3. Governance is the act of leading people in an accountable way. The way leaders conduct their roles, as per their capacity leads to an even economic distribution for all the individuals across a country. The two factors, governance, and democracy, can have a huge implication in political and economic state of a country4. In this case, the political aspect is considered because it is a fundamental element for economic development in any country. From the World Bank point of view, governance is the way power is applied to the social and economic aspects of a country’s affairs, for the purpose of development5. Therefore, governance plays a crucial role in the economic development of a particular country. The development stage in East Asia and Africa is significantly different. The stages of development differ in terms of political, social and economic activities. The difference has been brought about by the governance that is being administered in the two areas. In this paper, The researcher shall take an example of Zimbabwe, where the leaders, in the government, are even unable to enhance the economic performance6. They have also failed to develop economic conditions since there are ever-changing regimes in the country. A good and a strong governance leads to success in the economic performance of the particular country. For instance, from the East Asia, let us take an example of Taiwan. Here there is a strong governance that leads to the creation of a conducive environment, that attracts private and even foreign investment, thus leading to successful economic development7. Therefore, governance in any developing country plays a crucial role in the economic achievement of the state. Most developing countries do not have strong governments. Thus, they are unable to manage and promote economic development. For a country to manage economic development, the need for optimistic governance is crucial8. There must be developed architectures that allow economic prosperity in future. It has been observed that although the government understands the challenges faced by the nations, they are unable to come up with the strategies for tackling the challenges because of some hindrances that may not be overcome overnight9. For instance, availability of educated personnel, trained staff who know the recent economic intellect. There may be a lack of resources that are to be used to implement the policy. The economy’s elements may be beyond their authority, they may set anti-developmental priorities, and they may lack competence at various levels of government. The external factors may also contribute, significantly, to the problems they faced when managing these economic developments10. Some profound factors may be beyond their control, for instance, payments to unmanageable external debts. It is realized that the narrow base of the economy can easily lead to a country being very vulnerable to external shock. For instance in Colombia, there is enough natural resources and the government has started the course of privatizing the oil resources Columbia11. Thus step is not helping Colombia because of the massive debts it has externally. These obligations affect its economic structure in the terms of development. Apart from the external debts, hindering its economic development, the country also has some other factors that frustrate its economic development. The country is at a state of civil war between the left-wing guerrillas and pro-government paramilitaries. Therefore, the people who can work in the country are committed to the war. Due to this reason, the state cannot make substantial development, economically12. Many people opt to work in the illegal drug industry, in order to ensure that their families are fed. The country is forced to sign a free-trade agreement with the US, which will eventually lead to the end of the agricultural industry. It is because of expected influx of large amounts of subsidized goods from the United States. Many developing countries are run by competent leaders, but they have failed to progress economic development13. It is because of the external factors that may be available which affect any economic growth that they seek to achieve14. Despite the fact that many developing countries blame the governance for their lack of economic development, there are other factors that may lead to the failure. For example in Argentina, there have been the worst economic crunches in the recent past. In the country, there were the inaccuracies of its foreign exchange system that led to the rise of external debts. Therefore, the country’s expenses increased due to paying of the debt. There was also the cost of urgent social programs. It is a major problem in the developing countries since the social programs are left aside15. It is because of lack of funds; the youths are not educated hence very hard to them to find a job. Without jobs, the young people, eventually start engaging in criminal activities16. This causes social difficulties for the country concern. In order to solve the problem, developing countries must accept the problem of external factors to the problem of developing countries. After acknowledging these factors, an action must be taken for instance by offering the debt relief. Therefore, it is profoundly important for the developing countries to admit the external factors that affect the economic development in their countries. It is evident that even if the country has enough natural resources, external factors can lead to them not prospering in terms of economic development17. Therefore, external factors must be taken care of for the country to prosperity in its economic development. Developing countries should take seriously about this issue of governance18. If this problem is not taken into consideration, it will bring more harm to the economic development of a country. Good governance can be attained only when there is a certain level of coherence. There is that mentality that from the developed countries that the developing countries may not manage themselves19. To some extent, it is true due to the government problems that arise. For instance, there is no equity in distributing the county’s resources. It leads to unbalanced development in the country thus no progress in economic development20. The economic development needs the balanced development in a country. If a country is developed in some few regions and others are not, it is considered underdeveloped in terms of the economy. In developing countries, the ability of the government to manage and promote economic development is not the personnel’s function, factors such as corruption and crippled democracy contribute a lot21. It is hard for the government in the developing countries to solve these problems that hinder the progress of economic development. It is because of the availability of both external and internal factors that the company faces in its journey of improving and managing its economic development. For instance in African countries, the effort of solving the external and internal challenges is almost impossible. The magnitude of the external and internal issues is too large for the developing countries. Therefore, promoting and sustaining the economic development in those countries with little industrial development, it is very hard for them. Other factors like a civil war that are attributed to drugs, for instance in Colombia, they hinder the real economic development22. The economic growth is a mandatory to developing countries for them to promote and manage economic development. The progress of economic development starts with the country’s economic growth. It means that the living standards of people increases. It motivates to work even more towards the national goal of managing and promoting economic development23. For this to come true, the developed countries must intervene to provide support to the developing countries. The developed countries should take that initiative to the developing countries to give aid to them. It will help them to know how to govern themselves. The economic development progress will be attained by the developing countries24. If the developing countries are left alone, it will be impossible for them to rule themselves and yield a success in economic development. The developed countries should provide financial support to the developing countries for them to attain their goals in terms of economic development. The developing countries are considered naïve in terms of economic development. Therefore, they should be governed by the developed countries25. In conclusion, supporting developing countries will enable them to develop their economy. Hence, they will depend on themselves in the future. The assistance from the developed countries to the developing countries will not be enough if they will be offered the resources that they require, and no governance is provided. The developed countries should provide full assistance that ranges from needed resources to the essential management. Therefore, the developing countries may be able to attain their goals in terms of economic development Bibliography Aidt, T. S. Corruption, institutions, and economic development. Oxford Review of Economic Policy, (2009). 25(2), 271-291. Ang, J. B. Economic development, pollutant emissions and energy consumption in Malaysia. Journal of Policy Modeling, (2008). 30(2), 271-278. 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