JIMMA UNIVERSITY

BUSINESS AND ECONOMICS COLLEGE

DEPARTMENT OF ECONOMICS

DEVELOPMENT ASSIGNMENT OF DEVELOPMENTAL ECONOMICS

NAME IDNO

1. ABDILNASIR MOHAMMED RU0034/15

2. ABDULFETA HERTAO RU0061/15
3. ABIGAIL ALEMU RU1373/15
4. ABREHAM KELBECHA RU0147/15
5. ABRHAM ASFAW RU0152/15
6. ALUDIN SHEMSU RU0210/15
7. AMANUEL RAGASAELDANA RU0238/15
8. ANGATU HEYO RU0270/15
9. ANUMA BIRANU RU0275/15
10. ASHEBIR MASHA RU0295/15
11. ASHENAFI TEMESGEN RU0299/15
12. ASMARE DEMEKE RU0303/15
13. AYANA DUGASSA RU0317/15
14. BINIYAM BEKELE RU1809/14

Submitted to Mr. Ousni Solomon

Submitted date- Nov 27, 2024
Question 1: Discuss the Millennium Development goal failures and achievements
The Millennium Development Goals (MDGs) were eight international development goals for the year 2015
that had been established following

the Millennium Summit of the United Nations in 2000, following the adoption of the United Nations
Millennium Declaration.

The MDGs emphasized three areas: human capital, infrastructure and human rights (social, economic and
political), with the intent of increasing living standards, Human capital objectives include nutrition,
Healthcare

(including child mortality, HIV/AIDS, tuberculosis and malaria, and reproductive health) and education.

The United Nations Millennium Development Goals (MDGs) are 8 that UN Member States have agreed to try
to achieve by the year 2015.

The United Nations Millennium Declaration, signed in September 2000, commits world leaders to combat
poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against women. The
MDGs are derived from this Declaration. Each MDG has targets set for 2015 and indicators to monitor
progress from 1990 levels. Several of these relate directly to health.

Progress report on the health-related MDGs

While some countries have made impressive gains in achieving health-related targets, others are falling
behind. Often the countries making the least progress are those affected by high levels of HIV/AIDS,
economic hardship or conflict

There are eight goals with 21 targets,and a series of measurable health indicators and economic indicators for
each target.

Goal 1: Eradicate extreme poverty and hunger

Target 1A: Halve, between 1990 and 2015, the proportion of people living on less than $1.25 a day

Target 1B: Achieve Decent Employment for Women, Men, and Young People

Target 1C: Halve, between 1990 and 2015, the proportion of people who suffer from hunger

Goal 2: Achieve universal primary education

Target 2A: By 2015, all children can complete a full course of Primary education/primary schooling, girls and
boys

Goal 3: Promote gender equality and empower women

Target 3A: Eliminate gender disparity in primary and secondary education preferably by 2005, and at all
levels by 2015
Goal 4: Reduce child mortality rates

Target 4A: Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate

Goal 5: Improve maternal health

Target 5A: Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio

Target 5B: Achieve, by 2015, universal access to reproductive health

Goal 6: Combat HIV/AIDS, malaria, and other diseases

Target 6A: Have halted by 2015 and begun to reverse the spread of HIV/AIDS

Target 6B: Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it

Target 6C: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

Goal 7: Ensure environmental sustainability

Target 7A: Integrate the principles of sustainable development into country policies and programs; reverse
loss of environmental resources

Target 7B: Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss

Target 7C: Halve, by 2015, the proportion of the population without sustainable access to safe drinking water
and basic sanitation

Target 7D: By 2020, to have achieved a significant improvement in the lives of at least 100 million slum-
dwellers

Goal 8: Develop a global partnership for development

Target 8A: Develop further an open, rule-based, predictable, non-discriminatory trading and financial system

Target 8B: Address the Special Needs of the Least Developed Countries (LDCs)

Target 8C: Address the special needs of landlocked developing countries and small island developing States

Target 8D: Deal comprehensively with the debt problems of developing countries through national and
international measures in order to make debt sustainable in the long term

Target 8E: In co-operation with pharmaceutical companies, provide access to affordable, essential drugs in
developing countries

Target 8F: In co-operation with the private sector, make available the benefits of new technologies, especially
information and communications

◇ Failures of MDG’s

Several factors contributed to the inability of achieving the MDGs.

These are:

●Low income earnings

●Weak institutions,

●Lack of infrastructure and poor governance.

●The MDGs were shaped by western models. African countries were expected to adopt western values as
well as technologies and financial structures. Many had to lean on their development assistance to achieve
growth.

●One of the major MDG failures is the fact that the success of the goals was not experienced equally across
the globe; this in itself is a major defeat. There is a difference of these statistics from different countries
concerning the same MDGs.

Successes of MDG’s

That’s not to say that the MDGs were wholly unsuccessful. The vast majority of African leaders welcomed
the impact that they had. For example, Rwanda has emphasized the significance of the MDGs in lifting one
million people out of poverty in the country.

African countries that received financial support from donors were those with relatively good institutions and
democratic structures.

♧ Achievements

1, To eliminate extreme poverty and hunger :

■In 1990 the world 36% peoples where lives in extreme poverty but In 2010 this % reduced to 18%. half
worlds extreme poverty

■ In 1990 25% Children under 5 years old are under weight but In 2012 this decrease to 15%

2, Achieve global primary education :

■ In 1990 120 million children didn’t go to school but In 2012 this number become in to 58 million.

3, Empower women and promote gender equality :

■The proportion of sits help by women in national parliament is 12.8% but This proportion increase to 22.1%
in 2014.

4, Reduce child mortality:

■ In 1990 from 1000 child 90 died before they reach 5 years old but This proportion reduced to 48 % in 2012.

5, Promote maternal health :

■ 1990 for every 1000 baby born 380 Mother death during pregnancy and birth were but In 2013 this number
decrease to 210 from 1000 baby.

6, Fight malaria, HIV/AIDS and other diseases :

■ Shows great change than others

7, promote environmental sustainability :

■ Since 1990 230million people doesn’t have safe water but Now this is changed by 89%.

2. Discuss the Sustainable development goals (challenges and opportunities)

Under every goals there are many targets, but here we see the overall highlight of the goals.

Goal 1. End poverty in all its forms everywhere:- The SDGs are a bold commitment to finish what we
started, and end poverty in all forms and dimensions by 2030. This involves targeting the most vulnerable,
increasing basic resources and services, and supporting communities affected by conflict and climate-related
disasters.

Goal 2. End hunger, achieve food security and improved nutrition and promote

sustainable agriculture:- this is intended to end hunger, achieve food security, and improve nutrition while
promoting sustainable agriculture. This goal aims to ensure that everyone has access to safe, nutritious food
and that the world's population can be sustained.

Goal 3. Ensure healthy lives and promote well-being for all at all ages:- This goal addresses all major
health priorities: reproductive, maternal, newborn, child and adolescent health; communicable and non-
communicable diseases; universal health coverage; and access for all to safe, effective, quality and affordable
medicines and vaccines.

Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities
for all:-this goal ensures that all girls and boys complete free primary and secondary schooling by 2030. It
also aims to provide equal access to affordable vocational training, to eliminate gender and wealth disparities,
and achieve universal access to a quality higher education.

Goal 5. Achieve gender equality and empower all women and girls:- according to this goal Women and
girls,everywhere, must have equal rights and opportunity, and be able to live free of violence and
discrimination. Women's equality and empowerment is one of the 17
Sustainable Development Goals, but also integral to all dimensions of inclusive and sustainable development.

Goal 6. Ensure availability and sustainable management of water and sanitation for all :- Sustainable
management of water resources and access to safe water and sanitation are essential for unlocking economic
growth and productivity, and provide significant leverage for existing investments in health and education.
This goal is intended to achieve this particularly.

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all:-Universal access to
affordable, reliable and sustainable energy services requires expanding access to electricity and clean cooking
fuels and technologies, as well as improving energy efficiency and increasing the share of renewable energy.
It also needs to achieve this.

Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment
and decent work for all:-Achieving Goal 8 will require a wholesale reform of the financial system to tackle
rising debts, economic uncertainty and trade tensions, while promoting equitable pay and decent work for
young people. Sustained and inclusive economic growth can drive progress, create decent jobs for all and
improve living standards.

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster
innovation:-Infrastructure provides the basic physical facilities essential to business and society;
industrialization drives economic growth and job creation, thereby reducing income inequality; and
innovation expands the technological capabilities of industrial sectors and leads to the development of new
skills.

Goal 10. Reduce inequality within and among countries:- Gal 10 calls for reducing inequalities in income
as well as those based on age, sex, disability, race, ethnicity, origin, religion or economic or other status
within a country. The Goal also addresses inequalities among countries, including those related to
representation, migration and development assistance.

Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable :-To achieve Goal
11, efforts must focus on implementing inclusive, resilient and sustainable urban development policies and
practices that prioritize access to basic services, affordable housing, efficient transportation and green spaces
for all.

Goal 12. Ensure sustainable consumption and production patterns:- to ensure sustainable consumption
and production practices necessarily entails to respect the biophysical boundaries of the planet and to reduce
current global consumption rates in order to fit with the biophysical capacity to produce ecosystem services
and benefits.

Goal 13. Take urgent action to combat climate change and its impacts:- this take urgent action to combat
climate change and its impacts. Every person, in every country in every continent will be impacted in some
shape or form by climate change. There is a climate cataclysm looming, and we are underprepared for what
this could mean.

Goal 14. Conserve and sustainably use the oceans, seas and marine resources

for sustainable development:- this pan to Conserve and sustainably use the oceans, seas and marine
resources. Goal 14 is about conserving and sustainably using the oceans, seas and marine resources. Healthy
oceans and seas are essential to human existence and life on Earth. The Ocean is intrinsic to our life on earth.

Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems,

sustainably manage forests, combat desertification, and halt and reverse land

degradation and halt biodiversity loss:- to protect and restore the planet's land and ecosystems, while also
sustainably managing forests, combating desertification, and stopping biodiversity loss. The goal aims to
ensure that the benefits of land-based ecosystems, such as sustainable livelihoods, are available for future
generations.

Goal 16. Promote peaceful and inclusive societies for sustainable development,

provide access to justice for all and build effective, accountable and inclusive

institutions at all levels:- it aims to promote peaceful and inclusive societies, provide access to justice for all,
and build effective institutions.

Goal 17. Strengthen the means of implementation and revitalize the Global

Partnership for Sustainable Development :- Goal 17 is about revitalizing the global partnership for
sustainable development. The 2030 Agenda is universal and calls for action by all countries – developed and
developing – to ensure no one is left behind. It requires partnerships between governments, the private sector,
and civil society.

Major opportunities of SDGs.

1). Innovation & Technology: Meeting the SDGs necessitates technological innovation. Developing and
implementing solutions in areas like clean water, renewable energy, and sustainable agriculture creates market
opportunities for innovative companies.

2). Investment Opportunities: Sustainable investments are growing rapidly. Investors are increasingly
seeking opportunities to align their portfolios with the SDGs, leading to increased capital for sustainable
businesses.

3). The increasing Quality Education: Improved education systems lead to a more skilled and adaptable
workforce, fostering economic growth and social progress.

4). Climate Change Mitigation & Adaptation: Investing in renewable energy, energy efficiency, and
sustainable land management reduces greenhouse gas emissions and increases resilience to climate change
impacts. This also leads to new business opportunities and helping the acheivement of SDGs.

Major obstacles of SDGs.

Under here i will mension two biggest

1. The COVID-19 pandemic:-This pandemic has had a significant impact on almost all the Sustainable
Development Goals (SDGs), leaving no country unaffected. It has caused a shift in political agendas, but also
in lines of research. At the same time, the world is trying to make the transition to a more sustainable
economic model. • Inefficient waste management: The pandemic made conditions worse than they were
because of the surge in medical waste and interruption of services that pick up garbage.

The extent of the effects of the health, economic and social crisis resulting from the pandemic, in addition to
the climate crisis, is still uncertain, but it seems clear that the main issues are inefficient waste management,
supply chain issues, adaptation to online education and energy concerns.

A) Supply chain disruptions: With the disruption of global supply chains, in general, this merchandise and
services availability affected various SDGs that rely on economic growth, reduction of poverty, and food
security.
B) Adaptation to online education: The sudden shift to online education shone a spotlight on preexisting
inequalities in the usage of technology and levels of digital literacy, further compromising quality and
increasing the likelihood of an education gap.
C). Energy issues: The pandemic probably changed the level of energy use and access to energy in some
regions, hence likely having negative contributions to achieving sustainable energy.

2. Russia-Ukraine War
The study made by International Journal of Energy Economics and Policy in 2023 on the title “Impact of
Russia-Ukraine War on Sustainable Development Goals: A Study through Indian Financial Market
Perspective” indicates the following results of covid-19 on global economy through indian view. Some the
impacs are listed below.

 Impact of Russia-Ukraine War on SDG 1 (No Poverty): Increased energy prices lead to higher costs of
living, potentially pushing more people into poverty, especially in vulnerable populations.
 Impact of Russia-Ukraine War on SDG 2 (Zero Hunger): Disrupted supply chains and increased food
prices due to energy price increases and geopolitical instability can threaten food security and increase
hunger.
 Impact of Russia-Ukraine War on SDG 7 (Affordable and Clean Energy): The war highlights the
vulnerability of relying on a single or limited number of energy sources and underscores the need for
energy diversification and renewable energy transitions.

 Impact of Russia-Ukraine War on SDG 8 (Decent Work and Economic Growth): The study's direct focus.
Economic instability and disruptions caused by the war can lead to job losses and hinder economic
growth globally.

 Impact of Russia-Ukraine War on SDG 9 (Industry, Innovation, and Infrastructure): The war disrupts
supply chains and impacts the manufacturing and industrial sectors, hindering innovation and
infrastructure development.

 Impact of Russia-Ukraine War on SDG 10 (Reduced Inequalities): The economic impacts of the war
disproportionately affect vulnerable populations, exacerbating existing inequalities.
 Impact of Russia-Ukraine War on SDG 13 (Climate Action): While not directly addressed, the push to
find alternative energy sources following the energy crisis could accelerate the transition to cleaner and
more sustainable energy, indirectly contributing to climate action goals.

 Eventhough there are many impacts and opportunities on SDGs of 2015-30, i prefer to stop here.

3. Critically analyze Divergence and convergence trend of development (hypothesis)

Divergence:
A tendency for per capita income to grow faster in higher income countries than in lower income countries, so
that income gap widens across countries over time.

Reasons/hypothesis for divergence:

1. Diversity among poor countries.

All the poor countries are not performing similarly, some of them are facing stagnation.
Hence it is increasing the gap between the low income and medium income countries.

2. Trade bargaining.
All the rich countries have similar conditions and have trade bargaining power, hence they are enjoying trade
with lower barriers.

3. Maturity of institutions.
The institutions in developing economies are not mature and it will take time too which is required
convergence.
They are selling necessities(

Convergence:
The tendency for per capita income to grow faster in lower income countries, so that lower income countries
are catching up over time.

The reasons/hypothesis for convergence

1.due to technology transfer.

Developing countries don't have to reinvent the wheel. They can leapfrog the early stages of technology
development by adapting from rich.UK double its output per person in 60 years and USA did it in 45 years
where as South Korea did it in 12 years and China did it in 9 years.
Poor country will take less time to grow if they adapt the processes and technology from the rich countries
who took to develop.

2.due to similarity in factor accumulation. Since developed economies have higher physical and human
capital which according to low of diminishing returns. They would expect low returns, and as developing has
lower capital and high stack of labor, investing have will lead to higher returns. They have already invested
their capital in ventures where there were high returns. now they are left with ventures where the returns are
low/stable

Conclusion
The divergence and convergence debate remains a crucial topic in development economics. While theories
predict convergence under specific conditions, significant obstacles prevent many developing countries from
achieving rapid growth and narrowing the income gap with developed nations. A comprehensive
understanding necessitates acknowledging both conditional convergence within specific "clubs" and the
persistent divergence between these clubs due to various factors like institutional quality, technological
capacity, and geopolitical circumstances. Further research is needed to refine our models and improve our
understanding of these complex interactions.

Because of diversity among the developing country and failure to achieve convergence.

There is a need of special attention for these countries

And this course of development economics is designed to achieve the specific objective.

Reference books:
1 Solow-swan model of economic growth
2 way nations fail

4. Do you think Ethiopian economy will converge or diverge with that of the developed economy
( reason out your answer)

Solution: firstly, what is converge and diverge?

Converge: is implies that two forces are moving together .in the world of economics, finance,
trading ,indicates how they move closer together.

Diverge: means two things are moving apart or in the world of economics, finance, and trading indicates that
two trends move further away from each other.

The mean points our question are Ethiopian economy will diverge or converge with developed country
economy?

Our solution are Ethiopian economy will diverge with that the developed economy because of many factors
looking up from now and pervious history different factors of diverge with developed economy.

The following factors are Ethiopian economy diverge with in those developed economy

1. Historical Context: Ethiopia has a long history of political instability, conflict, and colonization that has
hindered economic development. In contrast, many developed countries have benefitted from stable political
environments and historical advantages.

2. Industrialization: Developed economies are often characterized by advanced industrial sectors, while
Ethiopia's economy is still largely agrarian, with a significant portion of the population engaged in subsistence
farming. Limited industrialization restricts economic diversification and job creation.
3. Human Capital: Education and skill levels in developed countries tend to be higher, contributing to greater
productivity and innovation. Ethiopia has made strides in improving education but still faces challenges in
terms of access and quality.
4. Access to Markets: Developed economies benefit from access to global markets and trade networks.
Ethiopia has faced barriers to trade, including geographic challenges and limited integration into global
supply chains.
5. Investment Climate: Developed countries generally have more favorable business environments, including
stable regulatory frameworks, access to finance, and protection of property rights. Ethiopia has been working
to improve its investment climate but still faces challenges related to bureaucracy and corruption.
6. Economic Policies: The effectiveness of economic policies plays a crucial role in development. While
Ethiopia has implemented various reforms aimed at economic growth, inconsistencies and issues with
governance can impede progress.
7. Population Growth and Urbanization: Rapid population growth in Ethiopia presents both challenges and
opportunities. While it can provide a labor force, it also strains resources and services. Urbanization is
occurring but at a slower pace compared to developed nations.
8. External Factors: Global economic conditions, such as commodity prices and foreign investment trends,
can impact Ethiopia's economic performance. Developed economies often have more resilience to external
shocks due to diversified economies.
9. Technological Advancements: Developed economies tend to lead in technological innovation, which drives
productivity and economic growth. Ethiopia is gradually adopting new technologies but lags behind in many
areas.
As we mentioned above Ethiopian economy is going to diverge in the future compared to other developed
countries.

Solution: firstly, what is converge and diverge?

Converge: is implies that two forces are moving together .in the world of economics, finance,
trading ,indicates how they move closer together.
Diverge: means two things are moving apart or in the world of economics, finance, and trading indicates that
two trends move further away from each other.
The mean points our question are Ethiopian economy will diverge or converge with developed country
economy?
Our solution are Ethiopian economy will diverge with that the developed economy because of many factors
looking up from now and pervious history different factors of diverge with developed economy.

The following factors are Ethiopian economy diverge with in those developed economy
1. Historical Context: Ethiopia has a long history of political instability, conflict, and colonization that has
hindered economic development. In contrast, many developed countries have benefitted from stable political
environments and historical advantages.
2. Industrialization: Developed economies are often characterized by advanced industrial sectors, while
Ethiopia's economy is still largely agrarian, with a significant portion of the population engaged in subsistence
farming. Limited industrialization restricts economic diversification and job creation.
3. Human Capital: Education and skill levels in developed countries tend to be higher, contributing to greater
productivity and innovation. Ethiopia has made strides in improving education but still faces challenges in
terms of access and quality.
4. Access to Markets: Developed economies benefit from access to global markets and trade networks.
Ethiopia has faced barriers to trade, including geographic challenges and limited integration into global
supply chains.
5. Investment Climate: Developed countries generally have more favorable business environments, including
stable regulatory frameworks, access to finance, and protection of property rights. Ethiopia has been working
to improve its investment climate but still faces challenges related to bureaucracy and corruption.
6. Economic Policies: The effectiveness of economic policies plays a crucial role in development. While
Ethiopia has implemented various reforms aimed at economic growth, inconsistencies and issues with
governance can impede progress.
7. Population Growth and Urbanization: Rapid population growth in Ethiopia presents both challenges and
opportunities. While it can provide a labor force, it also strains resources and services. Urbanization is
occurring but at a slower pace compared to developed nations.
8. External Factors: Global economic conditions, such as commodity prices and foreign investment trends,
can impact Ethiopia's economic performance. Developed economies often have more resilience to external
shocks due to diversified economies.
9. Technological Advancements: Developed economies tend to lead in technological innovation, which drives
productivity and economic growth. Ethiopia is gradually adopting new technologies but lags behind in many
areas.

As we mentioned above Ethiopian economy is going to diverge in the future compared to other developed
countries.
References:

For first question

Todaro and smith 11th edition.

Wikepedia.com

For the second question

The official UN Sustainable Development Goals website: https://sdgs.un.org/

Econ jornals.com.

International Journal of Energy Economics and Policy,2023

Department Business Organization I, University of Granada. Available on https://pmc.ncbi.nlm.nih.gov/

The 2030 Agenda for Sustainable Development’s 17

Sustainable Development Goals (SDGs) available on https://sdgs.un.org/goals

Dave Griggs ,Director, Monash Sustainability Institute

For third question

Solow-swan model of economic growth

Why nations fail

For fourth question

Invest topedia.com

Collection uno. adu