TAILIEUCHUNG - Lecture Economics (19/e) - Chapter 39: The economics of developing countries

After completing this chapter, students will be able to: Describe how the World Bank distinguishes between industrial advanced countries (high-income nations) and developing countries (middle-income and low-income nations), list some of the obstacles to economic development, explain the vicious circle of poverty that afflicts low-income nations,. | The Economics of Developing Countries McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Classifications Industrially advanced countries High income nations Well-developed market economies Per capita income $37,665 in 2008 Developing countries Middle income nations Low income nations Wide variation in income per capita LO1 39W- Classifications 39W- Comparisons . GDP $ trillion Combined GDP of DVCs $ trillion . has of population but produces of world’s output . per capita GDP is 150 times that of Sierra Leone Walmart’s annual revenue is greater than all but 23 nations’ GDP LO1 39W- Growth, Decline and Income Gaps Some developing countries have grown considerably China, Malaysia, Chile, Thailand Some developing countries have become high-income Singapore, Greece, Hong Kong Income gap has widened Developing countries must grow faster to reduce the gap LO1 39W- Human Realities of Poverty LO2 Selected Socioeconomic Indicators of Development 39W- The path to economic development Use existing resources more efficiently Expand available supplies of resources Simple generalizations are not possible LO2 Obstacles to Development 39W- Obstacles to Development Natural Resources Shortage of land, resources, power Tropical climates hinder labor, lead to disease Difficult to solve LO2 39W- Obstacles to Development Human resources Large populations Reduced standard of living Less saving and investment Lower productivity Overuse of land resources Urban problems Qualifications Unemployment and underemployment LO2 39W- Obstacles to Development Capital accumulation This is key for economic development Domestic capital formation Savings potential Capital flight Investment obstacles Lack of infrastructure LO2 39W- Technological advance Borrowed technology Socio-cultural obstacles Institutional obstacles Land reform Obstacles to Development LO2 39W- The Vicious Circle of Poverty RAPID POPULATION GROWTH LOW LEVEL OF DEMAND LOW PRODUCTIVITY LOW LEVELS OF INVESTMENT IN PHYSICAL AND HUMAN CAPITAL LOW PER CAPITA INCOME LO3 LOW LEVEL OF SAVING 39W- Role of Government A positive role Establishing the rule of law Building infrastructure Embracing globalization Building human capital Promoting entrepreneurship Developing credit systems Controlling population growth Making peace with neighbors LO4 39W- Role of Government Public sector problems Misadministration Bribery Corruption LO4 39W- Role of Government LO4 39W- Expanding trade Admitting temporary workers Discouraging arms sales Foreign aid Direct aid The World Bank group LO5 Role of Advanced Nations 39W-

• Kinh tế học
• Economic principles
• Economic policies
• Lecture Economics
• Economic problem
• Developing countries
• Role of government
• Principles of economics
• Lecture Principles of economics
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Market imperfections
• The international economy
• Economic growth
• Average labor productivity
• Short term economic fluctuations
• Symptoms of business cycles
• Lecture Microeconomics
• Economic rent
• Economic profit
• Modern economic growth
• Growth accounting
• Economic immigrants
• Legal immigrants
• Demand shocks
• Loanable funds theory
• Lecture Macroeconomics
• Kinh tế vĩ mô
• Economic theory
• Economic perspective
• Marginal analysis
• Economic systems
• Market system
• The cost of production
• Economic costs
• economic
• management
• Principles of Microeconomics
• ten principles of economics
• tradeoffs
• rational
• Micro ECON 5
• Economic analysis
• Economic decision makers
• Cost in the firm
• Production in the short run
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier