The Economic Growth
Buy custom The Economic Growth essay
The second half of the 20th century saw serious developments in many nations across the globe. Most of these nations recovered from the effects of colonization and the World War II. In line with this, rapid economic growth characterized their growth with some of them being transformed from third world countries to first or second world countries. There are different factors that contributed to this growth. However, it is important to note that there are other nations that remained on the same level of economic growth despite having had an opportunity to develop economically. Unlike their counterparts who were on the same level with them, these nations failed to capture and implement economic growth aspect within their boundaries and therefore stagnated in their growth. Following this point, this research paper will examine why some nations grow faster than others. The paper will focus on Kenya in Africa and Malaysia in Asia as two nations that share similarities but have had different growth results in the last fifty years.
Get a Price Quote
* Final order price might be slightly different depending on
the current exchange rate of chosen payment system.
There are different reasons why some nations grow faster than other across the globe. In this respect there are different theories that have been developed over time to explain economic growth or rather development in different economies across te globe. One of these theories is the New growth theory. First, New growth theory emphasize on the important of acquisition of new forms of technology, knowledge and skills as key components of economic development. in this regard, a nation or rather an economy can be able to develop substantially when its harnesses the new forms of technology that are available across the globe and utilizes human knowledge and skills in implementing this technology within its economic structures (Cortright, 2001).
In reference to Cortright (2001), the New Growth Theory focuses on economic growth as a result of increasing returns that are associated with new knowledge (p.2). Notably, this theory assumes that any government that is reluctant in adoption of new forms of technology while at the same time discouraging the existence of competition with an aim of protecting certain industries or firma will in the long run create a situation of retarded economic growth. Therefore, this theory will be used to help in analyzing why some nations are able to grow faster economically than others. The two nations that will be used to support this theory are Kenya and Malaysia, with an examination of their economic development in the last fifty years.
To begin with, Malaysia is a South-East Asian nation that consists of thirteen stattes. This nation gained its independence in 1957 from the United Kingdom and became a federation in 1963 that comprised of Singapore, Sabah and Sarawak. More importantly is the fact that Malaysia as a Southeastern Asian nation was able to develop from a third world nation into a developed countries within a span of less than 50 years. Currently, it is counted as one of the Asian tigers among them China, Japan, India and Hong Kong. This is irregardless of the fact that there are many other nations that were on the same level as Malaysia during the time of its independence that have had a stagnated growth and have lagged behind in terms of economic growth. Malaysia, at the time of independence had a population of about
Kenya on the other hand is an East African country that obtained its independence in 1963. Notably, Kenya and Malaysia were colonized by the British or rather the United Kingdom. It is worthy to note that Kenya is endowed with a lot of natural resources that could enable it to develop substantially if only these resources are utilized properly. However, this has not been the case and in most cases, its resources were wasted or rather possessed by a few elite in its society. With this in mind, Kenya remained as a third world country despite the fact that it has enough resources that could spur it to a developed country.
Buy custom The Economic Growth essay