Lecture+4 (1) - Is the World Getting More or Less Equal?...

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Click to edit Master subtitle style 5/10/10 Is the World Getting More or Less Equal?
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5/10/10 Is the World Getting More or Less Equal? A long tradition in economics says that poor countries should “catch up” Rich countries grow by inventing new products, new ways to make old things Poor countries can implement already- developed technologies But there are also reasons to expect growing inequality over time Recall Abu & Sharifa: are there poverty traps?
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5/10/10 Recent Evidence on Convergence
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5/10/10 The Pattern over 1970-2000
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5/10/10 Is this the right question to ask? Some countries are much bigger than others. Should we put the same weight on China/India and Gabon/Senegal? Inequality may have changed within countries. Do we care about inequality of countries, or inequalities of people? Maybe inequality per se isn’t so
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5/10/10 Focusing on Big Countries….
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5/10/10 Growth and Inequality Within Countries
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5/10/10 Growth and Inequality Within Countries
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5/10/10 Growth and Inequality Within Countries
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5/10/10 Growth and Inequality Within Countries
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5/10/10 Growth and Inequality Within Countries
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5/10/10 Inequality Among World Residents
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5/10/10 What About Poverty? % Living on Less Than $1/day 1981 1993 2005 66.8% 35.4% 9.3% China 73.5% 37.7% 8.1% East Europe & Central Asia 0.7% 2.1% 2.2% Latin America & Caribbean 7.7% 6.0% 5.6% Middle East & North Africa 3.3% 1.5% 1.6% South Asia 41.9% 29.3% 23.7% India 42.1% 31.1% 24.3%
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5/10/10 What About Poverty? % Living on Less Than $2/day 1981 1993 2005 92.6% 75.8% 38.7% China 97.8% 78.6% 36.9% East Europe & Central Asia 8.3% 10.3% 8.9% Latin America & Caribbean 22.5% 19.3% 16.6% Middle East & North Africa 26.7% 19.8% 16.9% South Asia 86.5% 79.7% 73.9% India 86.6% 81.7% 75.6%
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5/10/10 Health Over Time Life Expectancy at Birth Infant Mortality (per 1000 births) 1970 2007 1970 2007 59 72 84 22 Latin America & Caribbean 60 73 89 22 Middle East & North Africa 52 70 133 32 South Asia 49 64 134 59 Sub-Saharan Africa 45 51 133 89 High Income 71 79 24 6
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5/10/10 Conclusions There is no ironclad rule that the poor must always fall further behind or always catch up Even the poorest places are not necessarily stagnant (e.g., China, Botswana) Overall, things have become better for most of the world’s poor We may be moving toward a world
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Click to edit Master subtitle style 5/10/10 Grand Theories of Economic Development:
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5/10/10 Economic Development as Investment On this view Few and simple tools + many people l Unproductive workers - Low output and income per worker Development is primarily about getting workers more and better
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5/10/10 The Harrod-Domar Model Imagine a closed economy with no
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This note was uploaded on 05/02/2010 for the course ECON Econ 311 taught by Professor Schnabl during the Spring '10 term at University of Delaware.

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Lecture+4 (1) - Is the World Getting More or Less Equal?...

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