This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
The economic literature ever since the dawn of modern economics has been much preoccupied with the issue of economic growth Economic growth has also been understood to establish the conditions for economic development The better-known models of economic growth such as the Lewis, Rostow Harrod Domar Solow, and Romer growth models are discussed
The theory of Technical dualism is one of the theories of dualism. Professor Higgins has developed the theory of Technological Dualism. By this, he means: "The use of different production functions in the advance sector and in the traditional sectors of UDCs".
The economic literature ever since the dawn of modern economics has been much preoccupied with the issue of economic growth Economic growth has also been understood to establish the conditions for economic development The better-known models of economic growth such as the Lewis, Rostow Harrod Domar Solow, and Romer growth models are discussed
The theory of Technical dualism is one of the theories of dualism. Professor Higgins has developed the theory of Technological Dualism. By this, he means: "The use of different production functions in the advance sector and in the traditional sectors of UDCs".
Characteristics of underdeveloped economiesGeorgi Mathew
discussing the features of under developed or developing countries with special reference to India. helpful for school and college who try to understand the characteristics of Indian economy from the angle of developing economy.
This revision presentation is designed for students revising their A2 macroeconomics. It looks at the economics of currency markets and focuses in particular on different exchange rate systems and the debate over fixed versus floating currencies.
A2 Macroeconomics - Revision on the Balance of Paymentstutor2u
The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with other nations.
The current account measures the difference between money and credit going in and out of an economy (through exports, imports and income paid on assets both home and abroad)
Characteristics of underdeveloped economiesGeorgi Mathew
discussing the features of under developed or developing countries with special reference to India. helpful for school and college who try to understand the characteristics of Indian economy from the angle of developing economy.
This revision presentation is designed for students revising their A2 macroeconomics. It looks at the economics of currency markets and focuses in particular on different exchange rate systems and the debate over fixed versus floating currencies.
A2 Macroeconomics - Revision on the Balance of Paymentstutor2u
The balance of payments (BOP) records all financial transactions made between consumers, businesses and the government in one country with other nations.
The current account measures the difference between money and credit going in and out of an economy (through exports, imports and income paid on assets both home and abroad)
Inward FDI flows to developing economies in 2014 reached their highest level at $681 billion with a 2 per cent rise. Developing economies thus extended their lead in global inflows. China became the world’s largest recipient of FDI. Among the top 10 FDI recipients in the world, 5 are developing economies. What are the advantages and disadvantages of foreign direct investment for developing countries?
Evaluating Benefits and Costs of Globalisationtutor2u
This is a streamed version of a colour coded answer to a past exam question on the economics of globalisation. Each colour in the answer refers to a specific exam skill - knowledge, application, analysis and evaluation. I hope this approach might be interesting to students who want to configure their answer to get high marks in the A level exam. The crucial point is that contextual examples can make a huge different to the quality of your answer.
This is a revision presentation on international competitiveness designed for A level economics students.
Students will be expected to
Consider measures of competitiveness: For example: relative unit labour costs and relative export prices.
Understand factors influencing competitiveness such as the exchange rate; productivity; wage and non- wage costs; regulation.
Examine government policy to increase international competitiveness. For example: measures to improve education and training; incentives for investment; deregulation.
Tracking Investments in CAADP’s Pillar IV Public agricultural R&D spending tr...IFPRI Africa
Tracking Investments in CAADP’s Pillar IV
Public agricultural R&D spending trends inAfrica South of the Sahara
Nienke Beintema and Gert-Jan Stads
International Food Policy Research Institute
Investing in Agricultural Research and Development, presented by Nienke Beintema, Program Head, Agricultural Science and Technology Indicators (ASTI), IFPRI, at the 2013 ReSAKSS Annual Conference, Dakar, Senegal, Nov 12-13, 2013
TeachersFirst - an Edutech Presentation at TEDx Lagos by Chinenye Mba-UzoukwuChinenye Mba-Uzoukwu
Putting the teachers first is critical to transforming education especially in the Digital Age. The world-over, countries like Nigeria struggling with broken public education systems and a huge deficit in education infrastructure - human and physical. Generations are slipping, falling through the yawning chasms in our countries and we must "act with the urgency of now" to save our Tomorrow. This action must be massive and decisive in scale. I argue that at a minimum this should focus on a country-scale deployment of education technology to close the this gap but must also make a similar massive effort in retooling and re-orienting the teachers for blended learning, classroom and school management in reconfigured, minimalized, entry-level technology enabled learning environments.
Poverty in a serious social problem in Philippines. Despite our country's rich natural resources, 90% of the people is poor. This presentation relates poverty, research, R and D.
This presentation by Marusa Vasconcelos Freire was made at the first session of the 2nd OECD-GFLEC Global Research Symposium to Advance Financial Literacy on 6 November 2014, which addressed cutting-edge policy issues and research ideas to advance the global financial literacy agenda. Find out more at http://www.oecd.org/daf/fin/financial-education/oecd-infe-gflecsymposiumfinancialliteracy.htm
This revision presentation covers aspects of Extract 5 for the OCR F585 Global Economy paper - the main focus is on the structural (supply-side) issues facing the Zambian economy. The presentation offers contextual background and an overview of the supply-side policies that might be effective in sustaining the growth of the Zambian economy and lifting their human development outcomes.
Similar to Barriers to Economic Growth and Development (20)
In this revision presentation we look at recent trends in UK trade union membership, consider how trade unions can affect both pay and employment and challenge the textbook view that union-negotiated pay increases inevitably have negative consequences for employment.
In this revision presentation we cover key examples of pure and quasi public goods and consider the arguments for and against an increase in government spending on public goods.
Poverty Reduction Policies in Low Income Countriestutor2u
This revision presentation covers some of the main causes of continued high levels of extreme poverty in low and middle income countries and considers a range of pro-poor government interventions designed to increase productivity and regular employment and waged income in formal labour markets.
You don’t need to produce a lot of evidence in your macroeconomics exams but knowing some basic and key facts and figures can make your answers stand out from the crowd! Here is a quickfire journey through twenty important economic numbers that won’t change before the exam – use them to support your answer and impress the examiner!
Microeconomics - Great Applied Examples for Examstutor2u
In this presentation, I have chosen loads of current examples that you might want to use as context in your microeconomics exams. We look at examples from different market structures, recent mergers and takeovers, the world's most valuable companies, the largest employer, unicorn business, de-mergers, the biggest initial public offerings (IPOs) and much else. Hopefully a useful video to go through to add some super examples into your revision notes.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This revision presentation looks at profit satisficing as an alternative objective for businesses. Why might firms satisfice? What are some of the possible consequences for economic welfare and efficiency?
In this short revision video, we look at the substantial productivity gap between the UK and many of the UK’s major competitor countries.
Paul Krugman, the Nobel Prize-winning economist said twenty fives years ago that “Productivity isn’t everything, but in the long run it is almost everything,”
In this presentation we consider the theory of wage-setting with a monopsony employer and the possible impact that a trade union might have on wages and employment. We also look at efficiency wage theory and mutual gains from pay bargaining between stakeholders.
For many economists, the labour market is the most important market of all to study, analyse and evaluate. Like product markets for goods and services, labour markets can also fail. The main types of labour market failure are labour immobility including skills gaps, inequality, disincentives to be economically active, labour market discrimination and the effects of monopsony power of employers.
Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
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Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
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Loan Application: Submit your application, including financial and personal information.
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USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
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Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
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Telegram: @Pi_vendor_247
2. Limits to Growth and Development on
the A2 Unit 4 Syllabus
• Students should consider factors such as:
1. Poor infrastructure
2. Human capital inadequacies
3. Primary product dependency
4. Declining terms of trade
5. Savings gap; inadequate capital accumulation
6. Foreign currency gap and capital flight
7. Corruption, poor governance, impact of civil war
8. Population issues
9. Debt dependence
3. Introduction – Some Growth Data
Key issues
• Is rapid growth sustainable?
• Does it feed through to significant
improvements in human
development?
4. 2015 Human Development Index – Lowest Rankings
Human
Development
Index (HDI)
Life expectancy
at birth
Expected years
of schooling
Mean years of
schooling
Gross national
income (GNI)
per capita
GNI per capita
rank minus HDI
rank
Country Value (years) (years) (years) (2011 PPP $)
Côte d'Ivoire 0.462 51.5 8.9 4.3 3,171 -24
Malawi 0.445 62.8 10.8 4.3 747 13
Ethiopia 0.442 64.1 8.5 2.4 1,428 2
Gambia 0.441 60.2 8.8 2.8 1,507 -2
DRC 0.433 58.7 9.8 6.0 680 11
Liberia 0.430 60.9 9.5 4.1 805 7
Guinea-Bissau 0.420 55.2 9.0 2.8 1,362 -1
Mali 0.419 58.0 8.4 2.0 1,583 -8
Mozambique 0.416 55.1 9.3 3.2 1,123 1
Sierra Leone 0.413 50.9 8.6 3.1 1,780 -16
Guinea 0.411 58.8 8.7 2.4 1,096 0
Burkina Faso 0.402 58.7 7.8 1.4 1,591 -13
Burundi 0.400 56.7 10.1 2.7 758 1
Chad 0.392 51.6 7.4 1.9 2,085 -22
Eritrea 0.391 63.7 4.1 3.9 1,130 -6
Central African Republic 0.350 50.7 7.2 4.2 581 1
Niger 0.348 61.4 5.4 1.5 908 -5
5. Nations whose HDI Outcome > GNI Per Capita Ranking
Source: HDI report 2015, UNDP
Human Development
Index (HDI)
Gross national income
(GNI) per capita
GNI per capita rank
minus HDI rank
HDI rank Country Value (2011 PPP $)
67 Cuba 0.769 7,301 47
76 Georgia 0.754 7,164 40
100 Tonga 0.717 5,069 32
73 Sri Lanka 0.757 9,779 29
81 Ukraine 0.747 8,178 25
9 New Zealand 0.913 32,689 23
113 Palestine, State of 0.677 4,699 21
2 Australia 0.935 42,261 17
6 Ireland 0.916 39,568 16
18 Israel 0.894 30,676 16
145 Nepal 0.548 2,311 16
116 Vietnam 0.666 5,092 15
29 Greece 0.865 24,524 14
17 South Korea 0.898 33,890 13
173 Malawi 0.445 747 13
36 Poland 0.843 23,177 10
52 Romania 0.793 18,108 10
69 Costa Rica 0.766 13,413 10
5 Netherlands 0.922 45,435 9
14 United Kingdom 0.907 39,267 9
6. Nations whose HDI Outcome < GNI Per Capita Ranking
Source: HDI report 2015, UNDP
Human
Development
Index (HDI)
Gross national income
(GNI) per capita
GNI per capita rank
minus HDI rank
HDI rank Country Value (2011 PPP $)
138 Equatorial Guinea 0.587 21,056 -84
48 Kuwait 0.816 83,961 -46
121 Iraq 0.654 14,003 -44
106 Botswana 0.698 16,646 -41
41 United Arab Emirates 0.835 60,868 -34
32 Qatar 0.850 123,124 -31
149 Angola 0.532 6,822 -30
116 South Africa 0.666 12,122 -29
109 Turkmenistan 0.688 13,066 -28
39 Saudi Arabia 0.837 52,821 -27
152 Nigeria 0.514 5,341 -24
172 Côte d'Ivoire 0.462 3,171 -24
52 Oman 0.793 34,858 -23
64 Seychelles 0.772 23,300 -19
62 Malaysia 0.779 22,762 -14
72 Turkey 0.761 18,677 -12
11 Singapore 0.912 76,628 -7
90 China 0.727 12,547 -7
7. Limits to Growth and Development on
the A2 Unit 4 Syllabus
• Students should consider factors such as:
1. Poor infrastructure
2. Human capital inadequacies
3. Primary product dependency
4. Declining terms of trade
5. Savings gap; inadequate capital accumulation
6. Foreign currency gap and capital flight
7. Corruption, poor governance, impact of civil war
8. Population issues
9. Debt dependence
8. Paul Collier’s 4 “Development Traps”
• Professor Paul
Collier has
identified four
“development
traps” - they are
1. Conflict
2. Reliance on
natural
resources
3. Being
landlocked
with bad
neighbours
4. Bad
governance
9. Infrastructure Gaps
• Infrastructure gaps limit economic growth
& human development because
1. They increase supply costs for
businesses – this causes higher prices –
hitting real incomes
2. Reduce geographical mobility of labour /
higher structural unemployment
3. Damage export competitiveness and
limit intra-regional trade
4. Make a country less attractive to inward
foreign direct investment
5. Make an economy vulnerable to effects
of climate change / natural disasters
6. Contribute to gender inequality
The Asian Development Bank forecasts that Asia needs
US$8 trillion (S$11 trillion) in the decade to 2020 to plug
the infrastructure deficit
10. Poor access to
credit
Poor
infrastructure
Excessive
bureaucracy
Regulations
and licensing
requirements
Supply-Side
Constraints
• Landlocked Zambia scores poorly in the
infrastructure rankings published as part of
the Global Competitiveness Index
• Quality of overall infrastructure 93/140
• Quality of roads 81/140
• Quality of railroad 80/140
• Quality of port infrastructure 131/140
• Quality of air transport 112/140
• Electricity and telephony 119/140
• 90% of Zambia’s power comes from hydro-
electric plants making the country especially
vulnerable to drought
• To earn foreign exchange, Zambia exports
power from hydro-electric plants – this then
damages electricity supply to the farming
industry which employs 60% of people
• Copper mines absorb much of the available
energy supply. There are frequent power
outages affecting homes & businesses
• Much copper output is transported on poor
roads which adds to costs and hurts profits
Infrastructure Gaps - Zambia
11. Human Capital Inadequacies
“The low level of human capital in Africa’s agricultural sector remains a significant
constraint to growth, poverty reduction, and food security on the continent. “ World Bank
World Economic Forum Human
Capital Index
“A nation’s human capital
endowment—the skills and
capacities that reside in people
and that are put to productive
use—can be a more important
determinant of its long term
economic success than virtually
any other resource. This resource
must be invested in and leveraged
efficiently in order for it to
generate returns—for the
individuals involved as well as an
economy as a whole.”
Source: http://reports.weforum.org/human-capital-
report-2015/the-human-capital-index/
12. Human Capital Inadequacies
• Human capital refers to skills, experience, attitudes, aptitudes
of the human input into production
• In many countries secondary + tertiary school enrolment is low
and teaching quality is poor
• In many countries there is a big gap between expected years of
schooling and mean (actual) years of schooling
• Huge inequality within and between developing countries in
the quality of schooling and access
• Lower and middle-income countries may suffer from brain
drains of their younger, more skilled workers
• Weak human capital constrains labour productivity and ability
to harness new technologies
• Human capital deficiencies often linked to malnutrition. Better
basic health care and nutrition often unlocks improved human
capital by avoiding brain impairment.
13. • Mean years of schooling 6.5
• Expected years of schooling (note mismatch with mean years) 13.5
• Adult literacy rate (% aged 15 and older) 61.4%
• Population with secondary education (% aged 25 and above) 35%
• Primary enrolment (% of children of primary school age) 114%
• Secondary enrolment (% of children of secondary school age) 101%
• Primary school dropout rates (% of primary school cohort) 47%
• Pupil-teacher ratio 49
• Expenditure on education (measured as a % of GDP) 1.35%
• Only one third of adults have experienced some form of secondary education
• The primary school drop-out rate is nearly 50%
• The pupil teacher ratio remains high and spending on education is less than
1.5% of GDP. Teacher quality is variable and there are hundreds of thousands of
aids orphans in Zambia – a key cause of the 40% child labour ratio
Human Capital Inadequacies - Zambia
14. Primary Product Dependence
• Many developing countries continue to have high
dependence on extracting & exporting primary commodities
• These economies are vulnerable to volatile global prices
• Significant risks from over-specialisation especially when the
terms of trade from their main exports decline
• Resource-rich (factor input-driven) countries may suffer from
the natural resource curse including the Dutch Disease effect
• Extractive rents often fuel corruption, inequality and
wasteful consumption as natural resources are depleted
• High commodity prices can cause currency appreciation –
and may lead to the Dutch Disease / de-industrialisation
• Often resource revenues are not used productively to
diversify the economy / and improve HDI outcomes through
investment in education and health care.
• Result: Many countries rich in natural resources often have
slow rates of growth and poor development scores
16. Primary Product Dependence - Malawi
Over 90% of Malawi’s exports of goods are agriculture or mining/extractive
products. Only 8% of their exports are manufactured goods
17. The Natural Resource Curse
“Although large deposits of
key resources such as oil
would usually be considered
a blessing for the
development prospects of a
country, it often turns out to
be a ‘resource curse’”
Professor Paul Collier
“Close to one third of the
wealth of low-income
countries comes from their
“natural capital” which
includes forests, protected
areas, agricultural lands,
energy and minerals”
World Bank
18. The Natural Resource Curse
“The fundamental
goal of resource-rich
economies should
be to transform
their exhaustible
natural resources
into assets—
human, domestic,
and private capital
and foreign
financial assets—
that will generate
future income and
support sustained
development. But
the record is mixed.”
Source: IMF Finance
and Development,
September 2013
19. Primary Product Dependence - Zambia
The extent of primary export dependence is shown in this graphic from the
Observatory of Economic Complexity (MIT).
Click here for the latest data on Zambian exports:
http://atlas.media.mit.edu/en/profile/country/zmb/
Zambia is the 86th largest export
economy in the world and the 66th most
complex economy according to the
Economic Complexity Index (ECI).
20. Primary Product Dependence – Volatile Copper Prices
0
2000
4000
6000
8000
10000
12000
Jan-80
Jun-81
Nov-82
Apr-84
Sep-85
Feb-87
Jul-88
Dec-89
May-91
Oct-92
Mar-94
Aug-95
Jan-97
Jun-98
Nov-99
Apr-01
Sep-02
Feb-04
Jul-05
Dec-06
May-08
Oct-09
Mar-11
Aug-12
Jan-14
Jun-15
Copper benchmark price, US dollars per tonne
Zambia is not the biggest copper
producer in the world economy. In
most cases Zambian copper mines are
“price-takers” which means that they
sell as much as they can at the
prevailing world price.
21. Risks to Growth for Zambia from falling Copper Prices
Fall in export revenues - fall in AD – causing drop in Zambian GDP growth
Zambia now running a large current account deficit – draining FX reserves
Depreciation of currency – leading to accelerating inflation > 10%
Job losses in mining – rising cyclical & structural unemployment
Negative multiplier effects for supply-chain businesses, housing, retailing
Fall in tax revenues - rising budget deficit / debt – may need IMF support
Social consequences – mining companies have subsidised HIV medicines,
inequality worsening as a result
22. Strategies for Reducing Primary Product Dependency
Better government – including more transparency &
accountability to tax payers so that it is clear where
natural resource revenues are going
Stabilisation Fund / Sovereign Wealth Fund – e.g. to
fund human capital and infrastructure or to inject
money into an economy when aggregate demand dips
Higher taxes of natural resource profits (i.e. extracting
resource rents and then reinvesting in the domestic
economy to increase supply-side capacity)
Diversification – including processing, light
manufacturing & tourism – giving higher value added
and making the economy less susceptible to shocks
23. Savings Gap and Foreign Exchange Gaps as Barriers
• The Harrod-Domar model emphasizes the role of savings to
help fund capital investment / capital deepening
• In many lower and middle income countries gross national
saving is insufficient to fund investment
• Financial systems are frequently poorly developed rationing
access to affordable credit / insurance
• Low national savings may limit investment and make
developing countries dependent on external finance
• Overseas development assistance (aid)
• Foreign direct investment
• Remittance inflows
• Private sector debt
• Many developing economies have low foreign exchange
reserves to cover their spending on imports – risking running
into a balance of payments / currency crisis.
25. Capital Flight
• Capital flight is the uncertain and rapid movement of large
sums of money out of a country
• There could be several reasons linked to a lack of investor
confidence - factors include
1. Political turmoil / unrest / risk of civil conflict
2. Fears that a government plans to take assets under state control
3. Exchange rate uncertainty e.g. ahead of a possible devaluation
4. Fears over the stability of a country’s banking system
• Many billions of $s each year are taken out of a country
illegally especially in countries with high levels of corruption
• E.g. many Chinese leaders have relatives with offshore companies
• The rise of crypto digital currencies such as Bitcoin may be
encouraging capital flight – a form of digital money laundering
• Capital flight can undermine the stability of the financial
system and also bring about a much weaker currency which
in turn then increases the prices of essential imported goods
26. Corruption as a Barrier to Growth & Development
1 Denmark 145 Central African Republic
2 Finland 146 Congo Republic
3 Sweden 147 Chad
4 New Zealand 147 Democratic Republic of the Congo
5 Netherlands 147 Myanmar
5 Norway 150 Burundi
7 Switzerland 150 Cambodia
8 Singapore 150 Zimbabwe
9 Canada 153 Uzbekistan
10 Germany 154 Eritrea
10 Luxembourg 154 Syria
10 United Kingdom 154 Turkmenistan
13 Australia 154 Yemen
13 Iceland 158 Haiti
15 Belgium 158 Guinea-Bissau
16 Austria 158 Venezuela
16 The United States Of America 161 Iraq
18 Hong Kong 161 Libya
18 Ireland 163 Angola
18 Japan 163 South Sudan
21 Uruguay 165 Sudan
22 Qatar 166 Afghanistan
23 Chile 167 Korea (North)
23 Estonia 167 Somalia
Transparency International Corruption Perceptions Index for 2015
Cleanest Most Corrupt
27. Corruption as a Barrier to Growth & Development
• According to the United Nations, “corruption undermines
human development and democracy. It reduces access to
public services by diverting public resources for private gain.”
• Corruption is due to a failure of governing institutions who
lack transparency both in where their tax revenues are
coming from and in how state resources are spent
• High levels of corruption damage growth & development:
1. Inhibits direct foreign investment into an economy
2. Leads to allocative inefficiency / i.e. diverting public resources for
private gain, extreme examples of extravagant wealth
3. Contributes to persistent income & wealth inequality and
reduced progress in cutting the incidence of extreme poverty
4. Causes a loss of trust - a breakdown of social capital
5. Leads to substantially poorer human development outcomes
because governments are not collecting in enough tax revenues
28. Corruption as a Barrier to Growth & Development
Transparency International Corruption Perceptions Index for 2015
30. Labour Migration and Brain Drain Effects
• It has been estimated
that there were 232
million international
migrants in the world in
2013
• 207 million of them
were of working age, 15
years old and over.
• Of these migrants, 150
million were working or
economically active.
31. Brain Drains - De-population as a Barrier to Growth
Evaluate some of the consequences of the net outward migration
of skilled workers from developing countries
• Disadvantages
1. Loss of human capital
(expertise) from the economy –
this damages long-run supply-
side potential and is a barrier to
development
2. Loss of enterprising younger
workers who might have
started up businesses at home
3. Skills shortages will grow and
could seriously affect HDI
outcomes e.g. emigration of
doctors and teachers
4. Fall in aggregate demand
5. May make the country less
attractive to inward investment
6. May make a country less
innovative
32. Brain Drains - De-population as a Barrier to Growth
Evaluate some of the consequences of the net outward migration
of skilled workers from developing countries
• Disadvantages
1. Loss of human capital
(expertise) from the economy –
this damages long-run supply-
side potential and is a barrier to
development
2. Loss of enterprising younger
workers who might have
started up businesses at home
3. Skills shortages will grow and
could seriously affect HDI
outcomes e.g. emigration of
doctors and teachers
4. Fall in aggregate demand
5. May make the country less
attractive to inward investment
6. May make a country less
innovative
• Possible Advantages
1. Remittances from emigrants
flow back to increase GNI
2. People living overseas (diaspora)
may be able to help finance
private sector capital projects in
the future
3. Acquisition of human capital by
working & studying in other
countries e.g. learning
languages, earning degrees –
possibly leading to brain
deposits & gains?
4. May help to offset rapid natural
growth of population
33. Limits to Growth and Development on
the A2 Unit 4 Syllabus
• Students should consider factors such as:
1. Poor infrastructure
2. Human capital inadequacies
3. Primary product dependency
4. Declining terms of trade
5. Savings gap; inadequate capital accumulation
6. Foreign currency gap and capital flight
7. Corruption, poor governance, impact of civil war
8. Population issues
9. Debt dependence
34. More Notable Barriers to Growth & Development
Vulnerable
employment /
exploitation
Gender inequality and
other forms of
discrimination
Trade barriers e.g.
limited access to
developed markets
Landlocked countries High inflation for
some, deflation for
others
Income & wealth
inequality
35. Evaluating Main Strengths and Weaknesses for Zambia
Competitive Strengths
1/ Rich natural factor endowment (copper & emeralds)
2/ Young workforce (half pop are under 15yrs old)
3/ Now a middle income country – GNI per capita
increased by about 69% between 1980 and 2014.
4/ Progress in improving health outcomes /HDI rank is
higher than average for Sub Saharan Africa
5/ Functioning democracy with political stability
Other Notes
• Zambia has become a favoured venue for inward
investment worth 5-6% of GDP annually with much
coming from China.
• Country still has strong long-run growth potential
given it’s natural resource endowment
• Zambia has a functioning democracy but economic
management is weak and Zambia has not successfully
used revenues from copper mining/exporting into
establishing a diversified industrial base –
manufacturing is shrinking as % of GDP
• Can Zambia survive what many believe to be the end
of the global commodity super price cycle?
Main Weaknesses in their Economy
1/ Vulnerable to global slowdown / Zambia does not
have a stabilisation fund / wealth fund to draw upon
2/ High secondary school drop-out ratio – disparity
between expected and mean years of schooling
3/ Low tax revenues / big tax avoidance issues
4/ Weak currency / growing fiscal & BoP deficits
5/ Finance is under-developed / very high interest rates
of 30-40% for small businesses / farmers
Other Useful Contextual Knowledge
• 40% child labour (14% in developing countries)
• Zambia is too dependent on hydro-electricity – much
goes to power the copper mines. Drought is leading
to power shortages and affecting farming
• The big threat facing Zambia is stagflation i.e. a sharp
reduction in economic growth accompanied to
double-digit rates of inflation fuelled by a severe
depreciation of the currency.
• Youth under employment is also a huge issue
• Zambia’s economic growth has not translated into
significant poverty reduction
36. Main Strengths and Weaknesses for Mexico
Economic / Competitive Strengths
1/ Low unit labour costs – attractive to FDI
2/ Large / growing population (market size)
3/ Competitive currency helping exports
4/ Many free trade agreements completed
5/ Low unemployment and government debt
Other Notes
• Mexico is developing a strong comparative
advantage in manufacturing especially in
industries such as vehicle manufacturing
• Unemployment is low but there is significant
under-employment in a dual economy
• Fast growing middle class is attractive to FDI
especially from service businesses
• Rising consumption supports GDP growth
• More than 90% of Mexican overseas trade now
covered by free trade agreements
Main Weaknesses in their Economy
1/ Concerns over violence and corruption
2/ Heavily dependent on oil revenues
3/ Informal labour market – dual economy
4/ High levels of income/wealth inequality
5/ Long tail of low productivity businesses
Other Useful Contextual Knowledge
• Mexico has over 4 million micro businesses
that employ the majority of Mexicans – few
have access to equity / loan finance which
hampers finance for extra investment
• Key industries in Mexico have been dominated
by monopolies such as Mexico Telecom and
Pemex (Oil). The lack of contestability keeps
prices and high and limits capital investment
and innovation