Lecture 8 Notes - Garrett Brnger Lecture 8(Lecture 9...

Garrett Brnger
2/14/08
Lecture 8 (Lecture 9 overall)
Growth Rate (Transition From ISI)
1965.80 1980-90
Sub-Sah Africa 4 2
East Asia 7 8
South Asia 4 5
Latin Amer/Carib 6 2
ISI was working alright for some areas.
Taiwan vs. Brazil in the Key Transition Period
Taiwan Brazil
Per capita income
(billions $)
1980 2,340 2,050
1989 7,510 2,540
- Debt crisis wiped out gains in South America
- South America couldn’t pay the loans
- IMF pushed for re-structuring because ISI wasn’t working for them
The Asian ‘Miracle’
- Share of World Trade
East Asian NICS
1965 2%
1986 9%
Sub-Sah Africa
1965 .4%
1986 .2%
Asia really pulls ahead in this period.
(by the end of import substitution era)
Life Expect. Adult Lit
Niger 45 years 14%
Togo 54 41%
Singapore 73 years 86%
So. Korea 70 years 95%

Why the Asian Success?
- Trade (Export) emphasis
o Before they were importing finished products
o After they imported parts, machinery
o Had some hindsight of Latin America
o In the mid-60’s and in the 80’s it was easier to export
o General Agreement of Tariffs and Trade (GATT)
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