Eco Development HW 1

Eco Development HW 1 - Michael Rumler ID#- 000894645 Eco...

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Michael Rumler ID#- 000894645 Eco 330- HW 1 The countries that would be classified as High income economy would be New Zealand and Guyane (French Guiana). The countries that would be in the Upper-Middle income economy would be Argentina, South Africa, Malaysia, Chile, and Poland. The Lower-Middle income countries are Egypt, and Ukraine. And the Low income countries are Afghanistan and Bangladesh. When Chile won its independence in 1810, the economy prospered through a combination of mercantilist and free-market policies. Agricultural exports, primarily wheat, were the mainstay of the export economy. As time passed, copper replaced nitrates as Chile's main export product. Chile felt the impact of the Great Depression in 1930, when GDP dropped 14 percent, mining income declined 27 percent, and export earnings fell 28 percent. Between 1937 and 1950, the manufacturing sector grew at an average yearly real rate of almost 7 percent. Despite originally impressive rates of growth, import-substitution industrialization did not produce enough to allow an expansion of the manufacturing sector. Between 1950 and 1970, the Chilean economy expanded at insufficient rates. GDP grew at an average rate of 3.8 percent, while real GDP per capita increased at an average yearly rate of 1.6 percent. Over this period, Chile's economic performance was the poorest among Latin America's large and medium-size countries. The agricultural sector was particularly harmed by the overvaluation of Chile's currency. Chile's economic history has been marked by failed attempts to curb inflation. In 1970,
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the last year of the government of President Eduardo Frei Montalva (1964-70), the inflation rate stood at 35 percent. When Allende took office in November 1970, his UP government faced a stagnant economy
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This note was uploaded on 10/07/2010 for the course IST 100 taught by Professor Merrigan during the Spring '08 term at SUNY Rockland.

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Eco Development HW 1 - Michael Rumler ID#- 000894645 Eco...

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