Comparison Between Haitian and American Economies Essay

Introduction

The economy is described as the social domain that is involved in the activities and practices that are associated with the effective management and production of resources to yield income. The resources include a broad range of natural readily available resources such as minerals and water bodies. Also, resources may be classified as human resources which are human beings who strive to bring the factors of production together such as land, labor, capital, and entrepreneurship. In a nation based perspective, the economy results in a set of processes, ideals, and transactions in the daily activities that involve the culture of the people, the county's values, education, technological evolution from the use of primitive means in the production of goods and services and the social organization.

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To some extent, the political and legal structure may also affect the economy of a given state depending on the set rules and regulations for carrying out economic activities. The paper is intended to investigate, compare and contrast the dynamics of economic development in the countries of Haiti and The United States of America about sectors such as agriculture, manufacturing and production, culture, education, technology, and innovation, per capita income, and economy. The interaction and influence of poverty may also be determined conclusively.

Economy and Economic Growth

The economic growth of any country can be measured from its productivity of labor when each working head produces some substantial amount of work. The increased output per worker can be accounted for in the employment of able, skilled, and specialized staff to work in the industries and corporate ventures. From such a strategy, it is anticipated that an 80% rise in the per capita income will be achieved in any country (Isham et al., 2005). This increased productivity also brings about a decrease in the cost of goods by over 90%. From the above information, it can be deduced that labor productivity is an essential marker of economic progress.

Apart from this, other labor dynamics such as the intensity of labor which can be marked by the amount of hours worked by the labor force (Wilkins, et al., 2011) The more the amount of time spent by the working population in their respective occupation the more the increased yield hence reduced cost of goods. The proportion of the working age can also influence the size of the economy as the aged population may not work as aggressively as the young population. These factors of labor in the countries of Haiti and America are mainly of interest as it influences the amount of income of the population (Isham et al., 2005).

Haiti is a Caribbean country with a population of approximately 10 million citizens. The state is known for its agricultural prowess as the land is subdivided into an average of one hectare per peasant families who grow crops both for substantial use and for sale (Maternowska, 2006). Since the income per person is low, most of the Haiti population is not educated hence the standards of living are poor, and the methods of production of crops and services remain primitive. An increase in education will lead to an increased number of skillset among the working labor force. A skilled labor force is an ability to bring about quality goods and innovative methods of carrying out activities hence better per capita income thus reducing the level of poverty (Maternowska, 2006).

The United States of America is one of the world's largest economies. The productivity of labor is high where the economy runs on a 24-hour basis hence expanding the amount of time the workers work. The economy is also backed up by inclusive overtime where the workers are paid once they work on an extra time above that which has been set. The productivity of the country is, however, non-farm activities with most of the population being learned in professions such as nursing and technological occupations (Arrow et al., 1995). The output per worker recorded in this country is high as well as the consumption as the population is more than 300 million. Per capita income is also high with an approximated $59 per capita annually.

The economy of Haiti and the United States can be compared with the consideration of the labor force. While most of the population in America is educated and possess some skill in performing their work, most of the population in Haiti is uneducated hence do not own skill in any profession apart from the direct methods of agricultural production. Also, the population of Haiti relies on the farm produce to make a living which is consumed locally and others exported, America boasts a variety of income generation activities that is backed by technological advancements and a skilled labor force hence increased per capita income. The economies are however similar in the sense that the majority of the population is mainly the youth population who can undertake the jobs (Isham et al., 2005).

Since America is advanced in technology the increased productivity in the non-farm activities moderates the farm activities of Haiti, an increase in the level of technology in Haiti may bring a rise in the income per head which increases the standards of living. An increase in the standards of life suggests that the citizens gain the ability to exchange more goods and services hence the government can get taxes from these economic transactions. Further, the availability of revenue for the government means that the government can improve the infrastructure through the building of roads (Platteau, 2015). This aspect of high per capita income in America sets apart the Haitian economy since the significant difference lies in the ability of the customer to transact.

Agriculture and Economic Activities

The agricultural industry is one of the country's major primary sectors where developing countries have the opportunity to create employment as well as boost the gross domestic product. Agricultural activities entail the rearing of animals and the growing of crops. These activities ensure that the individuals are occupied throughout the year hence the intensity of labor in the agricultural sector is quite high. Agriculture also gives rise to other complementary industries such as milk processing industries and animal feed processing industries (Wharton, 2017). These activities involved in the building of industries will comprise of employment of building and constriction personnel. Other maintenance individuals will also be required to work in these industries hence improving on the income for individuals primarily in the agricultural sector.

Agriculture poses an advantage in economic development since it provides food for the nation - the venture cuts short the number of imports done by the country hence savings on the imports. In cases where the surplus is realized, the country gets to export the produce hence a contribution to the national income (Wharton, 2017). The rate of the economy is significantly affected when the agricultural sector does not meet the rising demand for food since the cost of food will be high hence most of the earned income will be spent on food compared to savings and investments. The sector is of importance and is considered in the discussion of the economic growth which is the basis of the paper.

In Haiti, the agricultural sector accounts for more than 90% of the country's export with the country's major export lying in the supply of coffee to the world as introduced by the French in the 1980s. Coffee trees cover approximately 133,000 hectares of Haiti's land, and the coffee farming can account to 80 percent of the labor force. The agricultural sector in this country provides an opportunity for the citizens to be involved in activities of primary production. However, the industry uses primitive means of production such as the use of hand tools rather than powered machinery. The land has also been subjected to fragmentation due to inheritance since this is the most common craft that can be passed from fathers to their sons. The migration of individuals to urban areas leads to a reduced population in the regions hence no growth is experienced in the sector. From the challenges mentioned, Haiti possesses the potential to expand in the sector to realize the benefits and profits in the sector (Franko, 2018).

On the other hand, agriculture in the United States of America is the net exporter of food to the countries of Europe and Asia. Although agriculture is carried out in several states in the country, the Corn Belt which is at the center of the nation surrounded by the great lakes is concentrated with commercial farming. The sector is faced with significant advancements in both crop and animal production such as hybridization of the seeds and mechanization of agriculture. The major agricultural products in the country are cattle meat as well as maize. The sector employs approximately 50% of the labor force to become farm workers with an average pay of $9 an hour. The United States farmers boast high per capita income from the sector hence most individuals can sustain themselves above the poverty line (Platteau, 2015).

Comparing the agricultural sector in these countries, both America and Haiti depend on their agricultural produce for food, and the products contribute to a large extent to the countries' gross domestic product. Also in both countries, the agricultural sector is an employer that accounts for more than 50% employment to the citizens. Although such similarities could be drawn, it is evident to realize that the two sectors signify a disparity in their levels of production. In America, the procedures for handling crops and cattle are highly mechanized with the use of combine harvesters and tractors to harvest crops, whereas, in Haiti, the farmers rely on traditional means of handling crops such as planting with the use of hand tools (Wharton, 2017). Other factors such as climate kept constant, America is by far superior in operations compared to Haiti.

For economic development to be achieved in the country of Haiti, the transition from the use of hand tools and other poor means of production must be accelerated to boost the agricultural sector. From the example of America, an optimum and highly delivering agrarian industry is essential for economic growth and development.

Education

Education contributes to economic development in various ways. Proper education systems in a country lead to the development of a good labor force which increases the quality of work in the industries. A skilled labor force leads to specialization where faster rates of production are achieved leading to the availability of goods and services for both export and local use. Education also allows for social mobility to other states and countries in search for ideas which may contribute to the goals of economic progress (Schumpeter, 2017). Apart from this, an educated society will be able to choose and elect educated leaders who will represent their country's interest in searching for market and acquiring raw materials for their local industries. Education builds on the human resource as capital as it concentrates on the building of intellectual and cultural wealth.

The Haitian education system is under the responsibility of the ministry of education which is under-equipped. The presence of private schools in the country serves on business terms as the government is not up to date on the recruitment and employment of teachers, nor does it offer any restrictions for the running and operation of schools. Haiti's literacy rate is therefore about 61% which is below the average of 90% in the Caribbean countries. The schools are also staffed by the non-government institutions and churches in the primary and secondary levels of education...