Econ Dev 3

Econ Dev 3 - ECON 314 Sept. 15 Common characteristics of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 314 Sept. 15 Common characteristics of developing countries These features in common are on average and with great diversity, in comparison with developed countries: – Lower levels of living and productivity : how can we project future standards of living-> quantifiable, project and forecast things, statistical estimations based on a countries data Lower levels of human capital: (relative terms) relative to a group of “advanced countries” Higher levels of inequality and absolute poverty: more microeconomic subjects -> Brazil, Chile, Argentina (but Latin America is improving – Higher population growth rates: India – Greater social fractionalization: Brazil , (but inequality is more in terms of income level) Nigeria, India -> strongly ingrained tendencies for social fractionalization based on religious and ethnic lines-> can result from income divisions but mostly deals with social fractionalization due to ethnic and religious lives ->> harder to reverse the trends (in comparison to income differences – Larger rural population - rapid migration to cities: China, a huge problem in China, rapidly growing hubs of industrialization along the coastlines. – Lower levels of industrialization and manufactured exports: more for developing countries, not N.I.C.s - > Newly industrialized countries – Adverse geography: land locked with bad neighbors, Africa-> small countries are land locked with not great connections with bordering countries i.e. are not able to use neighbors ports = often a huge impediment to trade > Tropical climate= tropical diseases > Mountains-> conducive to droughts (Ethiopia, higher altitude) Government never succeeded to make storage facilities work-> government is never prepared for droughts despite knowing that droughts occur frequently
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
– Underdeveloped financial and other markets: – Colonial Legacies - poor institutions etc. Defining the Developing World •World Bank Scheme- ranks countries on GNP/capita –LIC, LMC, UMC, OECD (see Table 2.1 and Figure 2.1) Several social and economic indicators according to which we classify countries ex: National income per capita, Institutions classify countries via levels per capita income- >collect data > We can use data and do cross country analysis and extract information Basic Indicators of Development: Real Income Level of income: National income: GDP: confined by what is made within the country, — : total value added produced by residents and non-residents of an economy
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/02/2011 for the course ECON 314 taught by Professor Rakovski during the Fall '11 term at McGill.

Page1 / 6

Econ Dev 3 - ECON 314 Sept. 15 Common characteristics of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online