Answer to Question #318755 in Macroeconomics for alemu

Question

1. Examine the current ten years development plan in Ethiopia. Identify its strengths and weaknesses.

2. Some scholars argue that the current Ethiopian economy seems that it is in “underdevelopment trap,” or long-term stagnation situation. Suggest and elaborate possible development theories that help the country to overcome the obstacles for its development.

3. Government statistical results show that there has been remarkable economic growth in Ethiopia during the last couple of decades or so. However, some proportion of the population has been complaining that they become poorer “despite the observed economic growth”. Evaluate the economic performance observed in the last couple of decades in Ethiopia in development economic terms.

Answer 1

1.

a)Strengths

The economy has envisaged an average annual economic growth of 10.2%.

Increase in per capita income by 8.2%.

Drastic reduction of unemployment and poverty level.

Introduction of universal access to clean drinking water has been achieved.

Infrastructural development.

Industrialization of the economy to ensure increase in the GDP.

b)Weaknesses

Macroeconomic imbalances.

The country's vulnerability to external shocks such as COVID-19, the plan has failed to address it effectively.

Lack of adequate infrastructure.

Low quality health and education services stipulated in the plan.

2.

a)Psychoanalytic Theories

Psychoanalytic theories of development focus on aspects of the unconscious and how they affect behavior. This school of thought was invented by Sigmund Freud, the father of psychoanalysis. The main characteristics of Freud's theories on human development revolve around repressed memories associated with improper development. In other words, if the individual were to miss a stage of development, it will be represented by an issue with that stage's corresponding developmental error whenever the individual acts in the world. This will help Ethiopian government to advance her plans.

b)Freud's Psychosexual Development Theory

Theories of development relied heavily on unconscious desires for Freud. His main contribution to theories of development is the idea that one can repress thoughts, and have the issue of expressing these thoughts with maladaptive behavior. However, the way that Freud explained these developmental errors seemed to be tinted through a lens of desire and sexual impulse that may not apply in every situation. Freud's stages of psychosexual development were the oral stage, anal stage, phallic stage, latent stage, and genital stage. Proper development in all corresponding stages indicated healthy development.

c)Cognitive Development Theories

Cognitive theories of development focus on studying the mind and thought patterns and how these cognitive factors affect human development. This type of thinking studies how one's thoughts impact the way they view and behave in the world, and how these thoughts can be changed in order to better influence human development. So by doing this, the Ethiopian government will use the top brain people in the country to spearhead her development plans.

3. Despite of the tremendous economic growth that has been witnessed in the country, challenges are inevitable as the there has been unevenly distribution of economic resources as well as development projects within the Ethiopian economy. Therefore, some parts of the country have lagged behind in terms of receiving government developmental projects.