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Unformatted text preview: Click to edit Master subtitle style Economic Growth Week 2 22 1. Globalization – Poverty Globalization often held responsible for the high 33 List of advanced economies (IMF definition) List of advanced economies (IMF definition) Composed of 33 countries: Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong SAR, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Malta, Netherlands, New Zealand, Norway, Portugal, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan Province of China, United Kingdom, United States 44 How do we define poverty? n Extreme Poverty – below $1.08/day (in 1993 PPP dollars) n Absolute poverty – below $2.15/day (in 1993 PPP dollars) 1820* 1970* 1993** 2001** 2004*** Per day bill % bill % bill % bill % bill % < $1 0.9 83,9 1.3 35,6 1.2 26,3 1.1 21,1 1 18.09 < $2 1 94,5 2.2 60,1 2.7 60,1 2.7 52,9 2.5 47.55 55 Income and Poverty in the World 10 20 30 40 50 60 70 80 90 100 $0 $5,000 $10,000 $15,000 $20,000 Income per capita in dollars % of population living on $2 per day or less Madagascar India Bangladesh Nepal Botswana Mexico Chile S. Korea Brazil Russian Federation Thailand Peru China Kenya 66 Increase in poverty? Why? n Liberalization? - disagreement among economists (as always!) n Lack of openness n Openness not accompanied by good policies n Too much openness n And some agreement: dramatic rise in population and unequal distribution …..but also low growth of GDP! n Europe, Africa and Asia – different scenarios 77 n The Bad News: the absolute number increased n The Good News: the relative number (%)of the extremely poor people – almost halved n So the increase in the world population has not been accompanied by a parallel increase in poverty Increase in poverty? Why? 88 More inequality n Even if the relative poverty decreases – what is the degree of homogeneity ? n The absolute and relative poverty may vary within a region : n 1987 – 1998 – Sub-Saharan Africa: poverty increased from 46.6 to 48.1%, and expected to increase from 240 mill to 400 mill in 2015… n some regions in Latin America and Central Asia – poor and extremely poor people increase (absolute and relative) n Or within a country : n Sudan, Mexico, Ghana, China (urban and rural areas…) 99 Inequality 1010...
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This note was uploaded on 04/24/2010 for the course MARK 3336 taught by Professor Cox during the Spring '10 term at University of Houston - Downtown.

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growth-week2-blackboard - Click to edit Master subtitle...

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