A GDP Difference graph that summarizes the Consumer Spending of Singapore and Algeria
The United Nations does categorize countries into developing and developed nations. The two nations get classified according to their economic status, for instance, the GDP, per capita income, GNP, and the Industrialization growth of the country. Developed nations such as Singapore are countries whose economy has advanced highly and own excellent technological infrastructure, as matched to other states. On the other hand, developing nations such as Algeria have a low human development index and little industrialization progress. In developing countries, it is not easy to deliver free health, security, and education to the citizens. It is easy to know a nation that struggles, and a one that assures its citizens have a high standard of living.
Examine the economic growth and achievement
A GDP Difference graph that summarizes the Consumer Spending of Singapore and Algeria
The Gross Domestic Product of Algeria and Singapore has increased in the last decade but at different rates. The GDP of Singapore is about 364.16 billion U.S. dollars, which is an excellent performance because it does represent 0.59 percent of the earth’s economy. On the contrary, the GDP of Algeria has been on the increase with a GDP of about 175 billion dollars. Singapore is way better because of the growth and development of the economy. Don't use plagiarised sources.Get your custom essay just from $11/page
The consumer spending of a country determines the growth and development of its economy. When citizens have a flow of money due to stable employment, then people will have enough money to spend and invest. Singapore’s economy has developed excellently over the years due to international trade. In 2018 the country reported an increase of 2.9 percent in GDP, anticipated to increase by 2.5 percent in 2019 and 2020. The country has a business-friendly structure that has an enhanced improvement in exports and domestic demand. Algeria, as a developing country, is faced with different challenges, such as political instability, which makes it hard for international and domestic trade to occur. Algeria depends mainly on the exportation of gas and oil, and this becomes a threat to the country’s economy because a reduction of revenue and depletion of foreign exchange will threaten the stability of the economy.
Examine the standard of living in both countries at economic and social welfare
Income Inequality
Singapore income inequality
In 2018, the household got an increase in their wages. It got described as the lowest level of income inequality in Singapore in a decade. In 2017 it was reported that the monthly income of different households increased by 3 percent per one working person. It got estimated in nominal terms of up to 92993 dollars, from an estimated 9023 dollars in the year 2017. The household has had an increase in work earnings every year.
A graph on average Income of Singapore Household from members who are working and employed residents in 2018.
The Households that are in the first to 70th percentile wage groups have experienced a 2.5 percent growth to 3.4 percent. Those in the 71st percentile to 90th had a pleasant increase of 4 percent, as shown in the Graph. There is a growth of 2.3 percent by households in the top 10 percent.
Income inequality in Algeria
Algeria is known for richness in oil resources, but the country faces different challenges that have made it’s economy unstable. The diversity problem in the marketplace, unemployment issues in the state among the women, and the youths is an issue that needs attention. Regional inequality is a problem that affects most developing countries in Africa, and Algeria is one of the nations. According to the World Bank, Algeria has had an increase of 10.5 percent rate of unemployment since, in 2016 and 2017, the margin rate increase to 11.7.
In Algeria, there those who earn more wages than others, especially those who work in top ranks in the government. Youths lack employment, and those who are working get forced to toil under a low wage rate. Most international bodies have criticized the government for corruption cases, which means different households will have difficulties getting the deserved income rate.
Population living below the poverty line
In Singapore, the country experiences many millionaires in the world. At the same time, the nation gets ranked with a high rate of inequality in Asia. People have to live on 5 dollars a day despite economic accomplishment. Different research shows that most Singaporeans have no source of income, which is a problem for them to handle the day to day livelihood. There is no specific measurement of the poverty line in Singapore as the country suggests that every poverty will be dealt with differently. The government of Singapore explains that over 105,000 families have described living in poverty, which is about 378,000 people in the country.
Similarly, in Algeria, the situation is even worse as the people living in extreme poverty add up to 25 percent. At the same time, the Central Intelligence Agency suggests that almost 10 percent of the people living in Algeria are falling back to the poverty level due to unemployment and inequality in the country. The recent decline in oil prices has made it difficult for the state to stabilize its economy. Therefore, the government has increased taxes to enhance the working of its national budget. The people in Algeria due to hiking of fees and high rate of unemployment it becomes difficult for them to consume and spend hence an increase in poverty levels.
Unemployment figures
In Singapore, the unemployment rate in the country adjusted to 2.2 percent in 2019. Since 2017 unemployment in the country has remained the highest unwaged. The ongoing trade tensions in Asia between China and the USA have also had an impact as the country has affected the employment rate. The hiring sentiments of employees have remained careful, which has led to a fall in job vacancies due to the trade issues.
The Graph shows the Unemployment rate in Singapore over the years.
The rate of unemployment has increased in 2019 since the beginning of the trade wars between the USA and China.
Equally, from September 2017 to September 2018, the unemployment rate Algeria has remained the same at 11.70 percent. According to Algeria’s report in 2018, their population reached 42.58 million people, with earnings of 363.38 USD. Moreover, the workers in the country’s involvement rate fell to 41.70 percent in September 2018.
The Figure shows the rate of Unemployment in Algeria.
The rate of unemployment has increased over the years to 11.70 percent.
Human Development Index
The human index of Singapore gets valued for 0.935 in 2018, which categorized the country as a very high social development. Singapore has been ranked nine out of a hundred eighty-nine nations. Since 1990 the human development index of Singapore has increased from 0.718 to 0.935 in 2018, which is a rise of 30.2 percent. The country focuses on long term progress of improving the standard of living, contact to different knowledge base ideas, and lastly the human development. The life expectancy of a country describes the health of the people in the country. The age of people above 25 years represents the knowledge of a country as to how long they have accessed learning. Moreover, the Gross National Income gets measured by the standard of living of people in a nation. Singapore has considered all the three dimensions of human development and scored a high rate growth of 30.2 percent.
Moreover, in Algeria, the human development value was rated at 0.759 in 2018, which ranked the nation at number 82 from an overall of 189 countries. Peru and North Macedonia did share the 89th rank by human development positioning. The country has had an increase of 0.578 to 0.759 from 1990 to 2018, which is a progressive increase of 31.2 percent. The category by human development value is an indicator the country is growing in the right direction. Also, the nation’s Gross national income has increased over the years at about 36.5 percent, which shows progress in the countries GNI per capita.
Social Progress Index
The rank of social progress index categorizes 149 countries in the world on their social performances. The program started from 2014 to 2019, and the main focus is to rate countries on how nutrition, personal rights, inclusiveness, and security gets practiced in a nation. Singapore has been ranked highest with scores of 90 percent and above in different social welfare such as shelter and nutrition. The environmental quality classification dropped to 68.35 percent from 84.36 percent. The category involves deaths that are caused by emissions of gases, air pollution, and discharge of greenhouse gases.
Moreover, the social progress index also rates the freedom of expression and freedom of religion. Singapore did 71.73 percent when it came to the rights of people in the country, ranking the nation to 88th position. Inclusiveness category in Singapore scored the lowest with an overall score of 52.32 percent. The indicators of inclusiveness include signs, for example, discrimination, especially to minorities and fairness in the circulation of political power.
In Algeria, social progress has increased in the year 2018 from 2.14 by an index of 65.18. It has grown to an average of 0.79 percent, which is progress, especially to different issues that the country has been facing. The Algerian environmental society has improved over the years in terms of security and improvement in the air pollution sectors.
A graph on Algerian’s Social Progress Index
Compare the Economic Growth and standards of living between the two countries
Singapore is way better than Algeria when we compare it in terms of economic growth and the standard of living in both countries. The technology and infrastructure in Singapore are unquestionably competitive in the modern developed world. Most of the population employed to get a high wage rate due to stable economic growth in the country. The country receives ratings from owning more millionaires due to ease to trade in the country both domestically and internationally. In Singapore, the transport and communication sector constructed to enhance trade and movement of resources within the state. Politically, the country has gained stability over the years, thus reducing the misappropriation of public funds.
In comparison, the Algeria economic growth is unstable, and the level of living standards is demanding. The current political insecurity has made it uneasy to predict the business environment, especially with the impact of the Change of senior managerial offices in some large corporations. There is a high rate of unemployment among the youths who are the brain and labor of a country. Discrimination of women to employment is also a factor that affects the economy of Algeria. The nation is not equipped with the best technology to provide better services to its citizens. Algeria has the highest poverty level of people living in the country with no work as compared to Singapore.
Discuss the contribution of economic growth to living standards
The economic growth in Singapore has positively affected the standard of living of people in the country. They can now do business with the outside world. There has been an increase in employment, therefore, improving the standard of living various people. However, in Algeria, the economy has been unstable, causing an increase in poverty levels in the country. Both countries should ensure economic growth inclusivity where the circulation of resources in the country is equal.
To achieve better living standards, the government has to enable stable economic growth where goods and services reach people equally in a country. Political and social security is essential because it allows the attraction of new business locally and internationally attracts traders. Both Singapore and Algeria can make improve the living standard of their people through the equitable supply of resources and political power in the country. Singapore is way better than Algeria, and the only concern for Singapore is to reduce the gap between the rich and the inferior by allowing equitable sharing of resources. Algeria should ensure political security and economic inclusivity in the country.
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