If you are searching for a vivid example of a country experiencing primary product dependency have a look at this short video report from the Financial Times. The lower middle income west African country is trying to modernise their economy but remains deeply at risk from outside external shocks including over-dependency.
"Over the past three decades, the extent of global poverty has declined rapidly. The percentage of people living in extreme poverty in 2013 is less than half of what it was in 1990. Based on this trend, it is possible to envision a world in which extreme poverty has effectively been eliminated within a generation. Yet today, more than 1 billion people worldwide are still destitute, inequality and social exclusion seem to be rising in several countries, and many urgent and complex challenges must be overcome to maintain the recent momentum in poverty reduction"
Deng Xiaoping said: “Let some people get rich first.” He was referring to China but it turns out he could have been talking about Asia as a whole. In the past two decades, rapid growth across much of Asia has widened the wealth gap. That has caused “
Geoff Riley's insight:
Superbly relevant piece on the growth / inequality debate and some of the policy options available to Asian countries. Excellent for #econ4
The Rwandan economy comes under special focus in 2014 because it is twenty years since the genocide. This blog provides some summary growth and development data and links on Rwanda, a country that is attracting increasing interest from students and teachers as part of their development economics course..
Popular hazelnut and cocoa spread Nutella has become such a global product that the OECD decided to use it as a case study in its latest report on global value chains. Some 250,000 tons (227,000 tonnes) of Nutella are now sold across 75 countries around the world every year, according to the OECD. But that's...
Pub economics often explains the plight of poor countries in terms of the problems posed by corruption. That approach might have some value, and to raise the quality of your analysis of this topic, it’s helpful to say why and how it might arise, and the effects it might have. Rich.
While economic growth remains vital for reducing poverty, growth has its limits, according to new World Bank paper released today. Countries need to complement efforts to enhance growth with policies that allocate more resources to the extreme poor
The new IMF report on the global economy published in April 2014 includes a focus on the currency regimes chosen by emerging market countries. An increasing number of central banks have switched from free-floating exchange rates to managed currency regimes - perhaps because they want to make more active use of.
Preferential market access to China is providing an important growth-enhancing outlet for African exporters that find it difficult to break into industrialised countries’ markets. But there remain dangers that current export structures and national capacity constraints may further entrap Africa given its comparative advantage in primary resources and China’s comparative advantage.
The Knowledge Economy looks like being a superb portal for students and teacher who wish to enrich and extend their understanding of the role and potential of knowledge industries as growth and development drivers.
Africa is growing fast but transforming slowly. This is the message of the 2014 African Transformation Report, launched last week by the African Center for Economic Transformation (ACET). The report addresses a worry on the minds of many: in spite of impressive growth, the structure of most sub-Saharan African economies has evolved little in the past 40 years, with a poorly diversified export base, limited industrialization and technological progress, and a large informal economy whose economic potential remains mostly overlooked. In many African economies, manufacturing—the sector that has led rapid development in East Asia—is declining as a share of GDP. The worry is that without a major transformation Africa’s recent growth may soon run out of steam. The report argues that for growth to continue, Africa needs to invest in “DEPTH”–diversification, export competitiveness, productivity, and technological upgrading, all for the purposes of human well-being.
Our most common intuition about migration and development is just as clear: more development must cause less migration. Won’t economic growth in, say, Haiti mean that fewer Haitians want to leave? This seems as plain as the sun crossing the sky, but the data simply do not support it.
A modern, fast-growing, highly productive economy and a traditional, low-productivity one are pulling in opposite directions, reducing GDP growth and progress in living standards. A McKinsey Global Institute article.
Geoff Riley's insight:
Are you studying Mexico as one of your chosen countries of focus for the A2 growth and development paper for EdExcel? If so, this new report from McKinsey might be of particular relevance for you. Either way, there will be plenty of useful comment here on development and growth drivers and constraints.
Concern about inequalities of income and wealth is now a fashionable topic. It featured strongly in the gathering of the world’s top brass at Davos earlier this year. Much of the popular coverage of the topic gives the impression that not only is inequality at record highs, but that it.
Inequality is back in the news. In his 2014 State of the Union address, U. S. President Obama lamented that, “after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled.” At the global scale, Oxfam is making the same point, noting in a recent report that the richest 85 people in the world own the same amount of wealth as the 3.5 billion bottom half of the Earth's population. Perhaps more surprising, the rich and powerful CEOs jetting to Davos earlier this year seemed to finally get it: capitalism cannot survive if income and wealth become concentrated in too few hands. Fighting inequality would therefore not only be the morally correct thing to do, it would also be smart economics. And this is what a recent Staff Discussion Note from the IMF suggests: “inequality can undermine progress in health and education, cause investment-reducing political and economic instability, and undercut the social consensus required in the face of shocks, and thus tends to reduce the pace and durability of growth.”
Rising inequality is widely seen as a plague. But policy makers have been reluctant to take steps to reverse it, fearing that this would distort incentives and stunt prosperity and economic growth. It is often said that political power is more