Madagascar Vs. Chile: Comparison Between Madagascar And Chile

Eryn Schmidt
A01229360
Econ 5150
4/18/14

Comparison between Madagascar and Chile
Daily life in Chile depends on where you are located within the country. With it being almost 4500 miles long, the geography, the culture, and even the economy depends on the location. The north end, closest to Peru, is known for its agricultural resources, especially in mining. The central part, specifically Santiago, which is the nation’s capital and where most of Chile’s population is located, is the center of business. The south though, is colder, with thick forests that make growing seasons short. Despite the large differences even nation-wide, Chile is growing quickly. In 2013, Bloomberg found that “Chile’s economy grew by 5.5% in the last year—faster than predicted, and significant growth during a period when much of the world has seen only [small] economic expansion. (Gaiser) Chile is seen as one of the best South American countries, even with a smaller population. It has a population of about 16.8 million in 2013, 6th largest in South America. (South American Population) They are excelling in terms of competitiveness, peace, freedom, stability and prosperity. (BBC)
Madagascar, on the other hand, is a large island country off of the coast of Southern Africa. Its geography consists of highlands on the West, and rainforests on the right. Because of its’ proximity to the Indian Ocean, damage from tropical typhoons is very likely. This greatly affects infrastructure, economy, and the lives of many people, as recovery efforts soak up the use of capital. Its population is about 22 million people. Even though they have experienced positive growth, a mere 1.6% in 2011, Madagascar is still below African growth averages. (African Economic Outlook)
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The specific statistics explain their low rating. First off, property rights are at a low score of 40; and even worse than this is the score for freedom from corruption. It is sadly ranked at 27.3, almost 15 points below the global average. This is largely because of the government overthrow that occurred recently in 2009, in addition to the decades of civil disrespect before then. A high level of corruption leads to citizens struggling to trust in their government and the decisions that they are making. This also leads to a decrease in the trust in and amount of investing. While this could be due to corruption, a low level of investing for Madagascar could be seen because of the amount of people living below the poverty line. 70% of the population is falls under this category. Debt is about 38% GDP. Inflation has stayed constant at a level of 10% the last 3 years.