the major inter-related factors affecting the growth rate of an economy between Canada and Afghanistan
Executive summary
As an Assistant Researcher, I took a study on the major inter-related factors affecting the growth rate of an economy between Canada and Afghanistan. And I came up with a conclusion that, for the economy to grow and develop these determinants needs to be tangled effectively and appropriately using clearly defined measures and methods. Finally, in a developed country the economic growth rate is quite higher than in developing countries.
Background Information
Natural resources, public expenditure, human resources, capital goods and technology are the key factors that determine the economic growth rate of the countries. They have various impacts on economic growth both in developed and developing countries. Also, government efficiency, demography, social, political and cultural factors, are indicators of economic growth rate.
Factors that indicate the disparities of economic growth among countries are poor health and low levels of information, lack of necessary infrastructure, flight of capital, political instability, institutional framework and the world trade organization. These factors have led to the poor economic growth rate in Canada and Afghanistan.
The global economic environment is composed of various elements. For instance, the economic systems, procedures and policies and legislations are depended on the overall condition of economy. Benefits of economic conditions include an increase in purchasing power of the individual, improved standard of living, equitable distribution of income, and equilibrium supply and demand of goods and services. Mainly, these factors reflect the size of the market. Also, the business cycle comprises different stages like boom and depression which requires close supervision. Of important to note is that the size of the market depends on these factors.
Diversity has become the main characteristics of the majority of countries in the world. Globalization and economic interdependence of countries call for understanding and accommodating diversities. Mercantilism and the Classical theories of economic growth show the impact of multiculturalism and diversity on economic growth rate.
Economic benefits of cultural diversity come from a diverse workforce which drives economic growth, captures a greater share of the consumer market and acquiring more skilled and qualified employees by bringing together individuals from different backgrounds. Also, recruiting varied expertise and experienced board directors will make companies more proficient in their operations.
Due to the lack of developed systems in developing countries, they fail to accommodate multiculturalism and diversity effectively. This leads to a lack of equal opportunities between dominant ethnic groups and available resources. The presence of socio-economic gaps in countries makes cultural and religious diversities like internal instability to harm economic growth and development. These diversities mostly affect economic growth and development in developing countries like Afghanistan.
Introduction
Factors affecting the economic performance of Canada are free to trade agreements, house pricing, interest rates, employment and the currency, the oil price and the foreign acquisitions. While in Afghanistan they include job creation and private sector competitiveness, export processing zones and Export facilitation, Policy Reform and Strategic Management.
In 2018, the annual gross domestic product of Canada was 1,712,479M.$ and 19,630M.$ in Afghanistan. In Afghanistan, the annual gross domestic per person was 520.9 USD while in Canada was 46,232.99 USD. The annual debt in Canada was 1,539,565$ which brings 89.94% and in Afghanistan was 1,353$ adding up to 6.89%. Debt per capita was 41,617$ in Canada 36$ in Afghanistan. In Canada deficit was -6,706M.$ which is -0.40% and 300M.$ in Afghanistan which is 1.50%.
In Canada population is 36,994,000 while in Afghanistan is 37,172,386. In Afghanistan, the age distribution from 0-14 is 15.83% and ranked 89th while in Canada is 12.3% and ranked 112th positions. Population per square kilometre in Canada is 3.7051 and in Afghanistan is 56.9378.
The average years in education are 1.7 in Afghanistan ranked 96th and 11.6 in Canada ranked 4th position, 7 times more than Afghanistan
Before I collected the data, I took time to clearly understand the types of analyses to undertake by identifying the essential objectives for my tracking. This was successful because I determined the data to be analyzed and collected funding data on funding needs and funding commitments. This made it easier for me to determine the type of data to collect.
I collected the data from both internal and external sources. The internal sources were in the form of annual budget reports and records of the organization itself. While the data from external sources came from outside the organization. Other sources of data include work-plan, verbal commitment, and contraceptive supply plan.
I sorted out the collected data in excel where I entered the marks in ascending order and names in alphabetic order. The steps I used include sorting the data first by region and then by salary-wise. I selected a cell in the column containing the sort key, then I selected home and filtered to open the drop-down menu of sort option. Finally, I used the ascending order where the periods describing the data is from 2014 to 2019.
To improve my data analysis I required skills to simplify my decisions. Initially, I defined the question, set clear measurement priorities like deciding what to measure and how to measure it, and then I collected, analyzed and interpreted the data results. By following these five steps in my data analysis process, I made better decisions on how to run the organization most effectively because my choices are based on clearly analyzed data.
In conclusion, Canada has better economic growth rate than Afghanistan. As evidenced when Canada helped clear about 10 to 15 million mines in Afghanistan. Also, Afghanistan borrowed money from Canada to support 140,000 people. Finally, Canada helped in training the Afghan police and army.
In cultural differences, the alcohol consumed from all drinks is 0.02% in Afghanistan and ranked 187th and 9.77% ranked 48th position, that is, 488 times more than Afghanistan. In Canada the decisions are made by the manager while, in Afghans are usually happy to let you make the decision and they like brainstorming. In Canada always, the man is considered superior to the woman while Afghanistan is a patriarchal society. In Canada, the main religion is Christianity while Islamic is the main religion in Afghanistan.
In Social influence, social media has become a preferred method of influencing communication for many. From the previous research, 70% of Canadians use social media and 59% use different platforms more than once a day. Therefore, there is a lot of social activity going on in Canada than in Afghanistan. The daily life and social customs of Afghanistan mostly depends mostly on their religion.
There political structure differs in many ways and this includes the type of the government, that is, Islamic republicanism in Afghanistan and a parliamentary democracy and a constitutional monarchy in Canada. Also, government legal system wherein Afghanistan there is Islamic law and amp in Canada there is a common law system.
Economic Growth rate
In Afghanistan
The year 2014 2015 2016 2017 2018
Economic growth rate 2.7 1.5 2.3 2.7 1.0
In Canada
The Year 2014 2015 2016 2017 2018
Economic growth rate 2.9 0.7 1.1 3.0 1.9
Source: World Development Indicators.
Due to flexibility in economic indicators, social influences and political structures, the economic growth rate of the two countries dropped in 2015 and 2018. An increase in the economic growth rate in Afghanistan is due to the support from Canada which makes the economic growth rate of latter to decline.