Comparing Factors that Lead to Underdevelopment

Comparing Factors that Lead to Underdevelopment

Name

Institution Affiliation

Date

Overview

Fundamentally, every nation wishes to experience economic, social, and political progress to ensure a better life for its citizens. They can achieve this through the implementation of several appropriate developmental reforms and policies. Moreover, countries are usually categorized as either developed or undeveloped. Developed countries refer to nations with efficient health care, numerous educational opportunities, good governance, high expectancy, more job opportunities, and high standards of living among others (Frank, 2018). On the other hand, less developed nations comprise states with inadequate health care, few educational opportunities, low average life expectancy, a small number of job opportunities, few recreational facilities, poor economic growth, a low standard of living and impoverished life, among others. Nevertheless, less developed countries tend to share the factors that hinder their development. Therefore, this study aims to analyze the factors that are common in two less developed countries (LDCs) as far as their development is concerned.

LCDs to Compare and Assess

The selected less developed nations to compare and assess in this assignment include Kenya and Malaysia. Kenya is a state in Eastern Africa with Nairobi as its capital city. It covers an area of 581,308km² and boarders countries such as Uganda, Ethiopia, Tanzania, Somalia, and South Sudan. The national language of Kenya is Swahili although English is also recognized as the official language. Additionally, it comprises various ethnic groups that include the entire population of about 49 million people. Moreover, the total Gross Domestic Product (GDP) and per capita income of Kenya is $175.659 billion and $3,657 respectively. On the other hand, Malaysia is a state in Southeast Asia which borders Singapore, Thailand, Indonesia, and Vietnam. Kaula Lambur is the capital city of Malaysia and Malay is the national language of this nation. It has a total area of 330,803 kilometers per square and a population of about 32 million people. The country’s GDP and per capita income are 41.002 trillion and $30,858 respectively.

Besides, Kenya and Malaysia were selected for comparison since they attained independence in almost the same time, therefore comparing the two nations will be interesting to establish the strides these countries have made towards development since independence. Another reason for selecting Kenya and Malaysia was that comparing a nation from Asia and Africa will give an overview of the development status of the two continents since the countries will act as samples. Finally, Kenya and Malaysia share as well as differs in many things; thus there is enough information to support the research.

Comparing Factors that Lead to Underdevelopment

Governmental Corruption

Corruption and bribery are one of the primary factors that contribute to the underdevelopment of nations. According to Asongu (2013), corruption refers to a situation where an individual bribes another person to receive particular favors. Such a situation tends to result in underdevelopment because the national resources of a country can remain in the hands of a few selfish people, thus putting the majority to a miserable life. Through corruption, government officers can involve in embezzling the national resources which can put development to a standstill (Chelliah, 2012). Besides, Kenya and Malaysia share as well as differs in various ways regarding governmental corruption as a factor that has contributed to their underdevelopment. According to recent data by Transparency International’s Corruption Perception Index, Kenya and Malaysia are ranked 143rd and 62nd out of 180 nations respectively. The ranking indicates that there is an existence of corruption in these nations that have played a role in hindering development.

For instance, Kenya has had a series of corruption cases and scandals where substantial public resources have been lost. In the 1990’s, Kenya witnessed the greatest corruption scandal in its history where about $850 million was lost through the Central Bank of Kenya in a corruption deal known as “Goldenberg Scandal” (Daily Nation, 2012). It was estimated that Kenya lost about 10% of its GDP through this deal something that has negatively impacted its development. There have also been other corruption cases such as the “NYS Scandal” of 2016 where the government lost about $7.6 million.

Similarly, Malaysia has also experienced several corruption cases that have slowed its development. For instance, in 2009, Malaysian government lost almost $4.5 billion in the 1MDB Scandal where the money that was meant to establish an economic hub went to the pockets of individuals including the former Prime Minister, Najib Razak (Promchertchoo, 2018). Recent studies have indicated that the current corruption cases are the main reason why Malaysia dropped from 55th in 2016 to 65th position in 2017 in the corruption perception index (The Strait Times, 2018). Nevertheless, although corruption is one of the factors leading to underdevelopment in both Kenya and Malaysia, the bribery level in Kenya is comparably higher than Malaysian. Also, Malaysia has better systems to deal with corruption cases than Kenya. For instance, currently, the government has managed to recover about $700 million from the lost $4.5 billion in the 1MDB scandal.

Internal and External Conflicts

Both internal and external conflicts can result in underdevelopment of a nation because the nation will focus more on resolving the dispute rather than enhancing economic development (Chelliah, 2012). Also, during these times, the state can use a lot of national resources in trying to settle the feuds. Besides, both Kenya and Malaysia have had a series of internal and external conflicts that have significantly impacted their development. For example, in 2007, Kenya witnessed its worst domestic disputes in the post-election violence where nearly 1500 people lost their lives and property worth billions got destroyed. Schools, roads, hospitals, and other vital institutions were destroyed something that significantly contributed to Kenya’s underdevelopment. Also, Kenya has suffered from external attacks mainly from the militia group known as Al-Shabaab that originates in Somalia.

In 2013, Al-Shabaab attacked the Westgate Shopping Mall in Kenya’s capital city something that greatly scarred away investors, thus negatively impacting the development of this nation. Similarly, Malaysia has also had various internal conflicts such as the 2001 ethnic clashes between the Malays and ethnic Indians which affected growth negatively (BBC News, 2018). Although Malaysia has not experienced major external conflicts in recent years, its constant dispute with its neighbors such as Indonesia is also affecting development adversely. Moreover, between the two countries, Kenya’s growth seems to be profoundly affected by both internal and external conflicts compared to Malaysia. The ethnic wars are still present as well as the Al-Shabaab menace which is continuing to affect the economic and social development of Kenya.

Ethnic, Racial or Tribal Disparities 

Ethnic, racial, and tribal disparities also comprise one of the primary factors that result in underdevelopment in many nations. Kenya and Malaysia are not an exception. Ethnic and tribal inequalities have been a severe problem to Kenya since independence. People are divided across ethnic and tribal lines, and this has been evident in all of Kenyan’s general election where people tend to vote for leaders based on their tribes. Kenya comprises more than 44 tribes that find it challenging to live along with each other. Current studies have revealed that dominant tribes in Kenya including the Kikuyu and Luo own and control the most significant percentage of the countries resources. Individuals from these tribes also hold various critical positions in the government something that has intensified corruption and nepotism in the public service. In essence, when the nation is divided along ethnic and tribal lines, development is adversely affected because the dominant tribe tends to control as well as own a more significant share of resources (Bauer, 2013). Only a few areas can experience development, but the most significant part of the nation will have poor roads, ill-equipped schools and hospitals, and high unemployment rates among others. Because of ethnic and tribal disparities, Kenya has been experiencing these things which have surprised its development since only a section of the citizens can share the nation’s resources as well as access development opportunities.

On the other hand, although not at a high intensity like Kenya, Malaysia has also been witnessing particular ethnic and racial disparities that have impacted its development. For instance, most Malays discriminate the ethnic Indians something that has slowed growth in areas where with the Indians. The ethnic Indians are discriminated in employment, infrastructure development, and even health care among others a situation that tends to affect the overall development of the nation adversely. Additionally, most Malays racially discriminate foreign workers who at times bring in new development ideas, therefore slowing the progress of the country.

Unfair Judicial Systems

The judicial system of Kenya has also played a significant role in the underdevelopment of the nation. Usually, the legal system must ensure that all economic crimes are punished and stolen assets recovered to enhance development. However, in Kenya, the judicial system has not been doing enough to support growth. For instance, the money stolen in “Golden bag” and “NYS” scandals have not yet been recovered until today (Daily Nation, 2012). Also, most of the courts and judges in Kenya tend to receive bribes, thus making verdicts in favor of the economic criminals. Such situations have significantly hindered development since the nation’s resources are stolen, and nothing is done. The money could have been used in improving infrastructure, creating employment, improving health care among others which are usually the indicators of development. The Anti-Corruption Commission (EACC) is also not doing its work efficiently.

Moreover, Malaysia has also witnessed several inefficiencies in its judicial system that has been a threat to the development of the country. For example, the Anti-Corruption Commission and other investigative agencies could find Najib Razak (former prime minister) guilty in the 1MBD scandal where the government lost a lot of money. Nevertheless, the judicial system of Kenya is less efficient than Malaysian. Also, Malaysia has implemented various reforms that have refined its legal framework to support development.

Shaky Financial Systems

The financial systems of both Kenya and Malaysia have also hindered the development of these nations. The Central Bank of both these nations has involved in specific financial scandals that have cost the countries dearly. For example, the Central Bank of Kenya played a massive role in the Golden bag scandal in the 1990’s where most of its employees were part of the crime. Also, when the Malaysian government lost $4.5 billion in the 1MBD scandal, the Central Bank did not adequately track the individual accounts of persons involved in the crime. Therefore, the inefficient financial systems of these two nations mostly hinder their development.

Conclusion

In summary, many factors can hinder the development of a nation including governmental corruption, internal and external conflicts, ethnic, racial or tribal disparities, unfair judicial systems, and shaky financial systems among others. The research has revealed that Kenya and Malaysia share particular factors that have hindered their development. Overall, the factors analyzed seem to be more frequent and prevalent in Kenya than Malaysia. As such, the Kenyan government should implement appropriate development reforms and policies to enhance the growth of the nation.

References

Asongu, S. A. (2013). Fighting corruption in Africa: do existing corruption-control levels matter?. International Journal of Development Issues, 12(1), 36-52.

Bauer, P. (2013). Economic analysis and policy in underdeveloped countries. Routledge.

BBC News (2018). Malaysia profile – Timeline. Retrieved from https://www.bbc.com/news/world-asia-pacific-15391762

Chelliah, R. J. (2012). Fiscal policy in underdeveloped countries: with special reference to India. Routledge.

Daily Nation (2012). How Goldenberg scandal was hatched and executed. Retrieved from https://www.nation.co.ke/news/How-Goldenberg-scandal-was-hatched-and-executed-/1056-1628532-8k2yos/index.html

Frank, A. G. (2018). The development of underdevelopment. In Promise of development (pp. 111-123). Routledge.

Promchertchoo, P. (2018). Najib, 1MDB and billions of dollars: A look back at one of Malaysia’s biggest corruption scandals. Retrieved from https://www.channelnewsasia.com/news/asia/najib-1mdb-malaysia-corruption-scandal-10255114

The Strait Times (2018). Malaysia drops to 62nd position in 2017, its worst, in corruption perceptions index. Retrieved from https://www.straitstimes.com/asia/se-asia/malaysia-drops-to-62nd-position-in-2017-its-worst-in-corruption-perceptions-index