Macro Project 100per
Macro Project 100per
The link between economic variables of a country and the dispatching of crime
represents a promising area of investigation. Thus, in this assignment, we will
attempt to analyze yearwise information pertaining to GDP growth and crime
rates to see if some nexus of temporal connection exists between crime rates
and the state of the economy. Graphically and in trendwise fashions, we will
attempt to represent the one influencing the other.
A lot of politics in Chapter 7 concern just why good institutions and strong
governments matter. Even when the economy is growing, the presence of
corruption, weak law enforcement, and political instability will lead some
sections of society to feel unprotected and unaccepted; hence crime might
still grow. Chapter 8 emphasizes how economic shocks, like a financial crisis,
affect some states to recover quickly and others to struggle depending on
political stability and governance. Then a strong and fair political structure
would help in containing crime, even under adverse conditions in the
economic sphere; while weak and unfair systems would contribute to crime,
even in times of economic growth. The two chapters combined explain that
perhaps governance matters as much as economic indicators when explaining
crime.
3. Could crime rate fluctuations or GDP growth be seen as possible alerts for
one another?
Chapter 8 discusses leading and lagging indicators, which in practice means
manifestations of possible happenings elsewhere in the economy. GDP is one
such indicator; however, it does not prompt a timely response. At times, with
the rise in crimes (especially concerning fraud or petty crimes) such as theft,
indicators might give a clue regarding an impending negative economic
situation. This could present another possibility that crime is just an indicator.
In Chapter 7, it was also stated that a weak government or fail ing policy would
witness a rise in crime even before any real problems started surfacing in the
economy. In parallel, sudden and dramatic declines in GDP could, just
thereafter, witness a sudden rise in crime due to stress on the populace forced
into unemployment. So both chapters indicate that crime and GDP can trigger
each other, and therefore if they are seen next together, they should be looked
at carefully.
Data Source
I have been using Macrotrends as the primary source for collecting GDP growth
and crime rate data on a yearly basis for this assignment. It is a widely used
website that deals with long-term data and presents them in simple graphs for
easy interpretation. As far as the credibility of its data is concerned,
Macrotrends obtains data from reputable and official sources like the World
Bank, U.S. Bureau of Economic Analysis, and FBI. Although Macrotrends does
not collect data itself, it presents all these data in one simple and useful place.
Therefore, one would consider Macrotrends as a reliable source for such
studies.
I have taken crime rates on a yearly basis and GDP growth rates as two very
strong indicators that can help one try to understand the linkage between the
crime and the economy. The GDP growth speaks of how well or otherwise the
economy of a nation is doing, while the crime rate speaks of the level of safety
and social conditions. Together, over the years, they allow us to find patterns or
trends—for example, do crime rates tend to rise during economic declines,
and how do they fare after growth periods? Such a collation of data would
allow us to accurately conclude on the interrelationship between social factors
and economic factors over time.
Links-
Crime-Crime data
GDP Growth-GDP Growth yearwise
Data Analysis
Country wise Crime rate Vs GDP growth graphical and mathematical analysis
Russia
crisis.
• Police and courts became feeble, and organized crime groups began
to flourish.
• The GDP improved tremendously, but the crime rate was still slow to
decline.
Main point: Good first for the economy; slow for crime-Crime took a
long time to
reduce-rebuilding trust and law enforcement system has still not been
done.
3. 2009: Crisis Returns but Unlike the 90s, Crime Did Not Spike
• The global financial crisis saw negative GDP growth around -8%-
once more.
• On the contrary, there was no crime rise like that in the 1990s.
support programs.
Main Point: Russia managed the crisis better this time; crime stayed
low as
Main Point: Crime fell even in times of slow economic growth. State
control and safety measures worked better this time around.
not reported.
Main Point: Crime was down, but it may have been a consequence of
people being
General Findings
• The post transition and collapse of the economy saw fast upward
trends in crime.
• By the 2010s, crime seemed much more linked to state control than
GDP growth alone.
Brazil
• Crime and GDP Growth in Brazil, 1990-2024: A Phase-wise Analysis
• At that time, Brazil was trying to rid itself of high inflation and was
• inequality was high, and police and courts had little authority.
• Another shock was introduced in 1994 with the Plano Real, which was
meant to control inflation in Brazil and to open its economy.
• Main Idea: Although there had been some growth, crime also rose. This
again shows that people weren't getting enough; the system was still
weak.
• Main Idea: The country was growing, but not everybody was reaping the
rewards. Problems such as poverty, poor service delivery, and weak
policing could have been responsible for the crime staying high.
• It was the first long and steady fall in crime for many a year.
• Main Idea: Crime was falling even when the economy was not able to
grow. It could be due to better policing, the fall in young people who are
likely to commit crimes, and the social programs initiated in previous
years.
South Africa
South Africa - Crime and Economy (1994-2021)
And there was a huge drop in crime. The police were supported, and
programs started to assist the communities in their safety.
Main Point: Though the economy was not doing great, crime went down
because of effective police work and a trusting populace.
Zuma's corruption didn't help either. Few jobs were being created or
investments coming in.
Crime did not grow much, nor did it decline. Youth were still
unemployed, and inequality was utterly wretched.
People were frustrated, but things were not totally falling apart.
Main Point: Institutions were still functioning, but pressure was building
within society.
COVID really gave everybody a hard crack and messed it for the entire
continent.
Main Point: The economy had collapsed, and weak institutions drove
crime up at this time.
Zimbabwe
Made Time for a Focused Examination into More Details on Zimbabwe's GDP
and Crime from 1990-2024
Early 1990s - Beginning Reforms; Increasing Problems
From 1999 to 2000, the land reforms created much havoc and destruction.
Farms were taken away, commercial farming collapsed, and the associated
jobs disappeared. Investors could not withstand the major blow and left the
country. Things moved from bad to worse, followed by an increased wave of
crime. As for the police, not much could be done on their part because they
had no incentive.
It was the worst year for Zimbabwe. The economy was fully dead, inflation was
crazy, and money itself had become worthless. Public servants went unpaid,
and public services ceased to function. Crime spiraled because people lost
everything.
Stabilization was aided much by the dollarization of 2009, which gave a slight
bounce to the economy. Crime levels remained relatively high for some time.
With so many youths still jobless and living conditions not improving, it is
understandable that crime levels would not decrease significantly.
After a brief recovery, the economy sucked again. Foreign aid diminished, and
loans never came. Crime remained quite high since the economy's growth
alone wasn't going to fix anything. Other issues such as bad policing, poor
education, and high unemployment were still afoot.
Main Takeaway
GDP growth does not always signal a decline in crime. Fundamental issues
such as unemployment, weak police performance, bad housing, and informal
economies contribute to a very high crime level. Economic growth must trickle
down to everyone in order to make a difference.
Israel
Economy: First good and then fell by Intifada and dot com burst.
However, the reality was still pretty much under control because the amount of
police force is still at work action.
The tech boom and better services helped to keep crime down.
Economy: A slight fall due to global enlistment but remained miserably stable.
With strong financial policies in Israel, it kept things from getting worse with
crime.
Time at this stage saw massive investment in tech, education, and security
reduce crime significantly.
2020-2021: COVID-19.
Crime: Increased slightly during the lockdown but overall remained quite low.
Conclusion:
Crime in Israel has consistently declined over 30 years. In the hard times, sane
policies and smart investments in tech and law enforcement have made life
affordable.
Japan
Crime Type:
What happened:
Singapore
v
The discourse on crime and GDP in Singapore from 1990 to 2020: Good
planning, good legislations, and good policies contributed to the stability of
things.
Strong laws, strict rules, and public order made sure it was safe.
Housing policies ensured that even in tough times, poor families were not
deprived of a home.
What happened:
Trust in the government did not waver; people were not prone to any panic.
The reason:
Poor families were being given some kinds of certificates for the family so that
it may not suffer much.
What happened:
What happened:
Why?
What happened:
Economy:
Crime:
So Why is That?
What Happened:
Lockdowns and travel restrictions took a toll on the economy.
Economy:
Crime:
Mild increase during lockdowns; mostly online frauds and domestic violence.
What happened:
Economy:
Crime:
Rising prices.
Current help:
Tech-based government.
Venezuela
GDP:
Crime:
• There was a huge gap between the rich and the poor.
• Urban unemployment.
What changed:
GDP:
Crime:
• Kept climbing, with some estimates running from 2,000 to 4,000 incidents per
100,000.
• In essence, tossing money was never enough; the institutions stayed weak.
• Police were politicized.
What happened:
Coup attempts in 2002 were followed by a national strike that paralyzed the oil
production.
GDP:
Crime:
Why:
• Armed gangs and informal militias began filling in the power vacuum.
GDP:
Crime:
The problem:
What changed:
Chávez died in 2013. With Maduro, Crookedness began to stampede over the
land.
GDP:
Crime:
• Explosive - rising above 8000 per 100,000, the one among the worst in the
world.
GDP:
Crime:
Whether an economic crisis is acute or mild and over a long term, it will affect
crime directly but uniquely with respect to sudden sharp ramp-ups and
penetrative incursions. Similar to the abrupt and intense shocks that rocked
Russia in the 1990s, Venezuela in the 2010s, and the COVID-19 crisis in South
Africa, all of these major shocks quickly triggered hypothesized crime
explosions. Quite high statistical correlations exist between drops in GDP and
rising crime rates, within the correlation boundaries of around +0.77 and +0.91
and R² about above 0.75. The correlations assert more strongly, suggesting that
these abnormal shocks into the economies provided the enabling environment
for crimes. Conversely, slow long declines should, in all fairness, have
instigated gradual declines with equally violent counterattacks on the social
fabric in Brazil during the 1990s and the Japan Lost Decade. Here, correlations
were weakly maintained (with r=±0.35 to 5); however, stalemate-the-economy
had traditionally allowed organized crime or youth crime to persist for long due
to blocked opportunities.
For those economies doing well, again, growth does not trickle down to the
most afflicted sections due to poor governance. Brazil is a clear example
between 2004 and 2014, where phenomenal GDP growth ran parallel with
record-setting crime. This was again as much a function of exclusion in that the
benefits accrued disproportionately to the middle and upper classes while the
favelas and other underdeveloped areas remained mired in violence and
poverty. However, such is alsovisible in countries where criminals become
increasingly scarce, even though economic recovery is stagnant or slow, during
which time countries were strengthening their institutions during or after the
economic shocks as in the case of Russia in the 2010s or South Africa post-
apartheid. Such examples further lend credence to the idea that the quality of
governance can stimulate societies' isolation from or exposure to crime risks
accompanying economic transformations.
3. Could crime rate fluctuations or GDP growth be seen as possible alerts for
one another?
It could be surmised from the data that crime and GDP have a two-way
dynamic between them. This is because either of the two can serve as an early
indicator for stress in the other domain. For instance, these countries like
Venezuela, Zimbabwe, and Russia during the initial years when they were
followed by an increase in crime rates and finally by an outright collapse of the
economy. Crime, in this case, becomes obvious as a leading indicator which
could then be taken to warn of failures and signs of institutional-and-economic
breakdown. For example, in Zimbabwe, at the end of the 1990s when the
growing crime rates happened, GDP had not yet begun its searing decline, and
hence, early mistakes on policy and societal frustrations manifest mostly-
FIRST in public security failures. Further, examples like the case of Venezuela
tend to illustrate that crimes increase especially at the eve of or during an
economic crisis. On the other hand, however, sharp declines in GDP would
almost immediately lead to spikes in crime, signifying that GDP itself may
trigger surges in crime, especially in fragile states.
This article illuminated the complex and dynamic nexus between economic
conditions- represented specifically by GDP growth and rates of crime in
different countries-through empirical data, statistical analysis and country-
specific trajectories. Well, while growth and crime rates have been found to be
correspondent, the connection is not uniform and certainly not merely causal.
For example, economic downturns have been found to result in an immediate
spike in crime, such as in cases of Russia in the 1990s, Venezuela in the 2010s,
and South Africa during COVID. Such trends remind us of how devastated
societies become at all times of economic shocks, particularly where the
institution is weak, and public trust is low, as well as in a very high level of
joblessness. Hence, correlation coefficients (r) can even go as high as +0.91.
But then they can be followed by and give rise to quite sordid conditions: the
languid economic downturns eat away at the social fabric, finally yielding
constant or organized crime, particularly where there are few job creation
programs and social safety nets. Long-term sustained growth has to be
politically stable, strongly governed, and inclusively developed, as Singapore,
Israel, and Japan have demonstrated. Although these countries suffered from
low crime rates even when international crises broke out, such people had
proactive policies as well as functioning institutions.
The last argument is that both crime and GDP should be treated as indicators
that can show what is wrong in the internal political, economic, or social
structure of a given country. This makes it very clear that and from this study,
economic planning has to go hand in hand with governance reform,
modernization of law enforcement, as well as social equity in building really
resilient societies.