Development - Development I The Problem of Late Development...

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Development I. The Problem of Late Development a. Wealth and development are comparative concepts b. If developing states are going to become as wealthy and wealthier states they need to grow faster c. Firms in these economies are in competition with those from the developing world d. Economic development happens in an international context e. Those who are ahead tend to stay ahead II. How do you catch up? a. What can we learn from the Koreans and Taiwanese? a.i. You have to adopt free trade…let it occur and the law of comparative advantage will occur a.ii. However what occurred in the Asian tigers had governments that had a lot of power b. The problem now is that the less developed countries face the same problem as do the US, which is China. Unless wage costs or Chinese mismanagement of their own economy III. Recent Debate: a. Jeff Sachs, An End to Poverty: “Clinical Economics” a.i. Went to Poland after the fall of Commuism and helped free market and has now turned his sights to the rest of the world a.ii. Says we can end poverty by 70 billion dollars by 2025. a.iii. His argument is you go around the world and target what are holding each economies back and if they had some money they could solve these problems but they need to get to a certain point where economic growth can happen. a.iii.1. The very by society, in much of Africa it is disease such as Malaria. Until you deal with that noting will occur. Things like insecticide bed nets for $5 can drastically reduce Malaria. Those people who would have been sick or died now can work
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This note was uploaded on 11/29/2011 for the course INR 2001 taught by Professor Richard during the Fall '08 term at University of Florida.

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Development - Development I The Problem of Late Development...

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