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April 12

April 12 - d.i.3 Who are these outsiders d.i.3.a...

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1. Economic Development a. Creation of “new”… a.i. jobs and businesses a.ii. Infrastructure a.iii. Capacity Building b. A process and outcome b.i. Sustained improvements in… b.i.1. Per Capita income b.i.2. Quality of Life c. Decisions about who gets what d. A simple economic model of… d.i. Harrod –Domar model d.i.1. Change in per capita income = change in investment d.i.1.a. Investment is d.i.1.a.i. Commitment of resources d.i.1.a.ii. Deferred cons (Savings) to purchase (Capital) d.i.1.b. Good = things that make other goods d.i.2. How hard to invest? d.i.2.a. Really hard if you are poor (Poverty Trap) d.i.2.a.i. “Finance Gap Model” d.i.2.b. Mechanism of poverty = no capital because no savings d.i.2.c. Solution = outside investors d.i.2.c.i. Capital via transfers of savings. Trade to buy capital
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Unformatted text preview: d.i.3. Who are these outsiders? d.i.3.a. Multinational corporations foreign direct investments d.i.3.b. Transfer some technical and human capital (Not savings) via NGO’s d.i.3.c. Banks – U.S., U.K., Japan, Germany d.i.3.c.i. Loans d.i.3.d. IGO’s = world bank – international bank for real world development 2. Structuralism a. Highlights structure of international economic system as cause of under-development b. Reduces the savings and thereby investments b.i. Fates to invest in comparative advantage aggression b.ii. Low productivity c. Tariffs & subsidize purchase of capital d. Solution: Separation # state led develpoment...
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