Macroeconomics 111 - Chapter 18

Macroeconomics 111 - Chapter 18 - CHAPTER 18 Development...

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CHAPTER 18 – Development Economics Poverty -Difficult to define or measure -Considered in the absolute sense : -In the US, the poverty level for a family of four in 2003 was an annual income of $18,244 or less -The World Bank uses per capita GNP of $755 or less as its criterion for a low-income- country -Poverty is also a relative concept , making it difficult to compare across countries -The income of many households in the US who are considered poor is substantially higher than the incomes of poor families in other countries Developing and Developed Economics -About ¾ if the worlds people live in the developing economies, called less-developed countries (LCD) or Third World Countries -LCD’s are characterized by low per capita GDP (GNP or GMP), implying a relatively low standard of living - First World Countries – are the highly industrialized nations of Western Europe and North America - Second World Countries – are eastern European countries and the countries of the former Soviet Union Other Measures - Although economists disagree on a definition of “basic human needs”, the general idea is to set minimal levels of: -Caloric intake -Health Care -Clothing -Shelter -Physical quality-of-life index -One approach uses life expectancy, infant mortality, and literacy standards Obstacles to Growth - Political Obstacles -Lack of Administrative Skills (ranging from ineptness to corruption)
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This note was uploaded on 04/07/2008 for the course ECON 111 taught by Professor H during the Spring '07 term at UConn.

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Macroeconomics 111 - Chapter 18 - CHAPTER 18 Development...

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