3Rd World Country vs.. 1St World Country

I have chosen to study one Lower Economically Developed Country (LEDC), And one Higher Economically Developed Country (HEDC) mostly to compare economically, hygienically and resourcefully.

The countries I chose were Ethiopia- (LEDC), and the Netherlands- (HEDC). I thought these countries would be very easy to compare due to the massive economic and health differences between them.

First I will discuss the economic overview of Holland. The Netherlands is noted for its stable industrial relations, moderate inflation and plays an important role as a European transportation hub. Their industrial activity is mostly food processing, chemicals, oil refining and electrical machinery (one of their main oil refining companies including Shell which is one of the main oil companies in the world). The Netherlands has been one of the leading European nations for attracting foreign direct investment and is one of the four largest investors in the U.S.

After 26 years of economic growth, the Netherlands economy (which is highly dependent on foreign trade and financial services) was hit by a global economic crisis. Dutch GDP contracted 4.3% in 2009, while exports declined nearly 25% due to a sudden contraction in world demand. The Dutch financial sector has also been affected, due to the high exposure of Dutch banks to U.S banks.

Now to the dramatic change from an overview of a HEDC to a LEDC.

Most of Ethiopia’s poverty-stricken economy comes from agriculture, accounting for 45% of GDP and 85% of total unemployment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is also critical to the Ethiopian economy with exports of some $350 Million in 2006, but all time low prices have seen many farmers switching to Qat (a plant containing amphetamine like stimulants) instead of coffee.

The war in Eritrea in 1998-200 and drought have made a significant deal towards the downfall to the economy, in particular coffee production. In 2001, Ethiopia qualified for the Highly Indept Poor Countries (HIPC) initiative. And in December 2005, the IMF forgave Ethiopia’s dept. Under Ethiopia’s constitution, the state owns all land and provides long term leases.

Now to the Health/Sanitation of the Netherlands.

The Netherlands water consumption is one of the lowest in developed countries at 124 litres per capital a day and water leakage in the distribution network is one of the lowest in the world at only 6%.

The infant mortality rate is low with every 1,000 live births there are 4.73 deaths. The percentage of people with HIV/AIDS is 0.2% which makes 33,432 people have HIV/AIDS if there is a population of 16,715,999 people living there. The average life expectancy of the Netherlands is 79.4 which is pretty high compared to the LDC’s. 10.5% of the population are below the poverty line and the unemployment rate has risen over 2008-2009 at 4% in 2008 and 5% in 2009.

On the other hand the numbers in Ethiopia are opposite the those in the Netherlands with the infant mortality rate ten times doubled at 80.8 deaths for every 1000 live births, 2.1 percent of their 85 million population have HIV/AIDS which is 980,000 people living with HIV/AIDS and there have been 67,000 deaths caused by AIDS. Thanks to this disease, it has raised the infant mortality rate, death rate, lowered the population growth rate and lowered the life expectancy to 56 years.

38% of the 85,237,338 Ethiopian population are living under poverty which makes it 32,390,188 people. 85% of the 50% of unemployed people in Ethiopia is from agriculture and is better known for its periodic droughts and famines, its long civil conflict and a border war with Eritrea.

To summarise my thoughts, I think that there is a huge economic difference between Ethiopia and the Netherlands because of mostly the health/hygiene which plays a big part on agriculture and the industries because of the death rate, infant mortality rate, low life expectancy which have all got to do with the HIV/AIDS virus which kills many of the population.