Review of the Economic Development Theories in Africa Essay

fall over of the Economic Development Theories in Africa - Essay ExampleThis paper offers an analysis of practical implementation of the quartette models of development in African countries. These models includes Harrod-Domar Model, Exogenous harvest-feast model, Surplus Labor Model, and Harris-Todaro Model.Economic development theories and models atomic number 18 built on three main blocks the saving function, the yieldion function and labor supply function. Growth run and saving function are equal to s/AY (where s is the saving rate and AY is the return proportion).South Africa is one of the growth countries in Africa that has implemented the Exogenous Growth Model since it has acknowledged the comprehension of technology and innovation in its plans. This model explains the importance of technological change (and swell accumulation in an economic offset.In Ethiopia Harrod-Domar model applies where high population growth rate is constraint to the rate of technological ch ange. Harrod-Domar model outlines an economic function relationship in which the growth rate of gross domestic product (g) depend directly on the national saving ratio (s) and inversely on the national capital/output ration ratio (k) Libya is one of the developing countries in Africa with the highest income per capita GDP, however, most of its population still sojourn poor and unemployed because of the agrarian-urban migration in accordance to the Harris-Todaro Model. This is a theory of rural-urban migration and it is strives to address the high rates of unemployment job issue in the developing countries (Ezeala-Harrison,p3). Rural to urban migration is mainly fueled by the creation of more(prenominal) employment opportunities in the urban areas than the rural areas. This is the reason why most of the Africas developing countries much(prenominal) as Kenya have introduced policy of rural industrialization and development to help deal with the problem of high population and unem ployment rates in the urban areas. Creation of more industries and other employment opportunities in the rural areas has attracted more people to the rural areas and this is one of the policies needful for a balanced development in some(prenominal) country. In developing countries such as Algeria and Tunisia most of the citizens move from their rural homes to urban areas in depend of education, employment and high living standards. Some people are also driven away by the poor circumstance of their lands which are unproductive. The current surveys show that about 53 per cent of the populations of Kenya, Tunis, Algeria and South Africa trail in the urban areas. Rapid urban growth rate in the current economic status of the developing countries is a strain to the level of national and local governments to provide basic necessities such as electricity, sewerage, water and adequate health facilities. In such situations, squatter settlements and over crowded slums begin excursive up. In a country like Kenya over-crowded slums are the homes to millions of the citizens. In most developing countries, this growth rate reflects rural crisis other than urban-based development (Ezeala-Harrison, p5). Harrod-Domar Model Harrod-Domar model outlines an economic function relationship in which the growth rate of gross domestic product (g) depend directly on the national saving ratio (s) and inversely on the national capital/output ration ratio (k) (Jurgen & Paul, p257). Mathematically it is expressed as g= s/k. This equation derived its name from two economists (E.V Domar of U.S and Sir Roy Harrod of Britain) who proposed it. This theory has been majorly utilized by the developing countries in planning their economy in the early post wars. For a targeted growth rate to be realized, a required growth rate must be set. Countries which are unable to set this require savings can resort to a jurisdiction for borrowing from international agencies such as International pecuniary F unds and World Bank. Most of the African countries are developing countries which are unable to set the required savings to meet the targeted growth rate. They therefore resort to borrowing from international agencies. Huge debts are disadvantages to developing countries because of the higher interest rates and poor credit (Jurgen & Paul, p257). Problems usually a rise when these countries make unrhythmical loan payment and underestimate the project cost. Every country