Samenvatting Introduction to the economics of development
LES 1: FACTS AND FIGURES
GLOBAL INEQUALITIES
Fact 1: Large diff erences worldwide in quality of life (5 indicators of inequality)
! inkomen en zijn verdeling spelen een belangrijke rol in elk aspect !
- Life expectancy: Average = 72,7 years old
- Child mortality (< 5y): Average = 43 children per 1000 live births
De inverse of life expectancy
- Adult literacy rate
Hierbij zijn Afrikaans landen achter op de geletterdheid, landen dat niet ingekleurd zijn
hebben een compulsory education system (hogere inkomenslanden) dus kunnen we vanuit
gaan dat zij sowieso geletterd zijn vanaf hun 15y (bv. belgië).
- Map of happiness: life evaluation
In dit geval zijn landen met hogere inkomens over het algemeen gelukkiger en scoren dus
hoger (met uitzonderingen)
- Income: Average GDP per capita = 10 936 dollar
Dit toont het verschil tussen landen maar in een land zijn ook enorm veel verschillen
Fact 2: These diff erences are strongly linked to income
Correlaties tussen income and the 4 indicators
- Life expectancy: hoe hoger het inkomen, hoe langer je leeft
- Child mortality: hoe hoger het inkomen, hoe minder kinderen je baart
- Adult literacy: hoe meer inkomen, hoe meer geletterd maar in dalende lijn (dalende
marginale opbrengsten; niet lineair)
- Happiness: hoe meer inkomen, geluk verandert niet (the american paradox; niet
lineair). Zowel doorheen de tijd als op één tijdstip. Het is een subjectieve indicator
dat samenhangt met de vorige indicatoren.
o Vanaf 10 000 dollar (PPP) zal happines wel omhoog gaan in één tijdstip
Fact 3: Everyone used to be poor
Fact 4: It’s getti ng bett er
Big changes whom positively changed. Countries can become better due to growth
- Child mortality per 1000 births decreased
- Acces to water increased
, - Poverty; extreme decreased but still a lot of eastern Asia/Africa people that are poor
HISTORY OF ECONOMIC DEVELOPMENT
1) Everyone used to be poor
Income per person rose after the industrial revolution
2) Economic growth started in the West (18the-19the century)
It started with UK and Europe --> North America --> Australia
! Europe could start with this because it was more developed than other not because they
were more powerful !
The industrial revolution (technological innovation; trains, radio, chemistry) gave them
advantages
o Economic growth: To produce more and better goods and services.
o Political power: colonization
Plundering colonies
3) Japan catches up (20the century)
Japan imitated the West
Industrialization
o Strong economic growth
o Military power: WW2
4) East Asia’s growth miracle (20the century)
Asia was the same as Africa until 1960 but later witnessed big growth
o Four Asian tigers: Hong Kong, South Korea, Taiwan, Singapore
big growth around 1960 based on export
high income countries now
o Others: Malaysia, Thailand, Indonesia
Middle income countries now
Financial crisis but overruled it so still growing
5) Asia’s large economies: China and India (20the century)
China verandert vanaf 1980
o Decreasing of people living in extreme poverty (< 1,9 dollar per day)
Elimination of communism
Large population
o 2%
India verandert vanaf 1990
o Decreasing of people living in extreme poverty (< 1,9 dollar per day)
Opening borders
Population growth
, o 21%
! zelfs een klein beetje populatiegroei heeft een groot effect op hun ontwikkeling !
6) Africa’s growth tragedy
Africa won’t grow since 1960
o Not or growing very slowly
Negative economic growth
Especially during Covid (stagnation)
o Big differences between countries in SSA
o The countries are growing but not very stable in 2023
Climate change
Security issues
Commodity prices
Corruption
The fastest growing countries are in Asia or Latin America right now (post covid)
7) Latin America’s Difficult Growth
They have growth but not as big as in Europe until 1980 later they had a lost decade.
o Borrowing with high interests
o Decreasing commodity prices
o Debt crisis
Now they experienced growth, but it is slowing down because of fundamental problems
o Inequalities
Land ownership
Political problems
Social unrest
criminality
civil wars
8) The Great Experiments: the former communist countries
Communistische landen: Rusland, China, Cuba, Noord-Korea, Iran, Ethiopa
= landen die ideologieën dragen van Mao, Lenin of Marx
Socialistische landen: Myanmar, Chili, Sri Lanka, ..
= landen die sterk gereguleerd zijn en wel sferen van communisme op hun nemen
Countries with strong government control of the economy and society: Libya, India, Egypt
Russia was the first communist country and many countries followed (involuntarily) after
WW2 or colonization
o Market regulation
Raw industrial development rose economies of scale
Incentive problems
Information problems
o Free market
LES 1: FACTS AND FIGURES
GLOBAL INEQUALITIES
Fact 1: Large diff erences worldwide in quality of life (5 indicators of inequality)
! inkomen en zijn verdeling spelen een belangrijke rol in elk aspect !
- Life expectancy: Average = 72,7 years old
- Child mortality (< 5y): Average = 43 children per 1000 live births
De inverse of life expectancy
- Adult literacy rate
Hierbij zijn Afrikaans landen achter op de geletterdheid, landen dat niet ingekleurd zijn
hebben een compulsory education system (hogere inkomenslanden) dus kunnen we vanuit
gaan dat zij sowieso geletterd zijn vanaf hun 15y (bv. belgië).
- Map of happiness: life evaluation
In dit geval zijn landen met hogere inkomens over het algemeen gelukkiger en scoren dus
hoger (met uitzonderingen)
- Income: Average GDP per capita = 10 936 dollar
Dit toont het verschil tussen landen maar in een land zijn ook enorm veel verschillen
Fact 2: These diff erences are strongly linked to income
Correlaties tussen income and the 4 indicators
- Life expectancy: hoe hoger het inkomen, hoe langer je leeft
- Child mortality: hoe hoger het inkomen, hoe minder kinderen je baart
- Adult literacy: hoe meer inkomen, hoe meer geletterd maar in dalende lijn (dalende
marginale opbrengsten; niet lineair)
- Happiness: hoe meer inkomen, geluk verandert niet (the american paradox; niet
lineair). Zowel doorheen de tijd als op één tijdstip. Het is een subjectieve indicator
dat samenhangt met de vorige indicatoren.
o Vanaf 10 000 dollar (PPP) zal happines wel omhoog gaan in één tijdstip
Fact 3: Everyone used to be poor
Fact 4: It’s getti ng bett er
Big changes whom positively changed. Countries can become better due to growth
- Child mortality per 1000 births decreased
- Acces to water increased
, - Poverty; extreme decreased but still a lot of eastern Asia/Africa people that are poor
HISTORY OF ECONOMIC DEVELOPMENT
1) Everyone used to be poor
Income per person rose after the industrial revolution
2) Economic growth started in the West (18the-19the century)
It started with UK and Europe --> North America --> Australia
! Europe could start with this because it was more developed than other not because they
were more powerful !
The industrial revolution (technological innovation; trains, radio, chemistry) gave them
advantages
o Economic growth: To produce more and better goods and services.
o Political power: colonization
Plundering colonies
3) Japan catches up (20the century)
Japan imitated the West
Industrialization
o Strong economic growth
o Military power: WW2
4) East Asia’s growth miracle (20the century)
Asia was the same as Africa until 1960 but later witnessed big growth
o Four Asian tigers: Hong Kong, South Korea, Taiwan, Singapore
big growth around 1960 based on export
high income countries now
o Others: Malaysia, Thailand, Indonesia
Middle income countries now
Financial crisis but overruled it so still growing
5) Asia’s large economies: China and India (20the century)
China verandert vanaf 1980
o Decreasing of people living in extreme poverty (< 1,9 dollar per day)
Elimination of communism
Large population
o 2%
India verandert vanaf 1990
o Decreasing of people living in extreme poverty (< 1,9 dollar per day)
Opening borders
Population growth
, o 21%
! zelfs een klein beetje populatiegroei heeft een groot effect op hun ontwikkeling !
6) Africa’s growth tragedy
Africa won’t grow since 1960
o Not or growing very slowly
Negative economic growth
Especially during Covid (stagnation)
o Big differences between countries in SSA
o The countries are growing but not very stable in 2023
Climate change
Security issues
Commodity prices
Corruption
The fastest growing countries are in Asia or Latin America right now (post covid)
7) Latin America’s Difficult Growth
They have growth but not as big as in Europe until 1980 later they had a lost decade.
o Borrowing with high interests
o Decreasing commodity prices
o Debt crisis
Now they experienced growth, but it is slowing down because of fundamental problems
o Inequalities
Land ownership
Political problems
Social unrest
criminality
civil wars
8) The Great Experiments: the former communist countries
Communistische landen: Rusland, China, Cuba, Noord-Korea, Iran, Ethiopa
= landen die ideologieën dragen van Mao, Lenin of Marx
Socialistische landen: Myanmar, Chili, Sri Lanka, ..
= landen die sterk gereguleerd zijn en wel sferen van communisme op hun nemen
Countries with strong government control of the economy and society: Libya, India, Egypt
Russia was the first communist country and many countries followed (involuntarily) after
WW2 or colonization
o Market regulation
Raw industrial development rose economies of scale
Incentive problems
Information problems
o Free market
