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Economic Growth in Developing and Transitional Economies
Economic Growth in Developing and Transitional Economies
Economic Growth in
Developing and Transitional
Economies
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Life in Developing Nations:
Population and Poverty
The universality of scarcity makes
economic analysis relevant to all
nations.
Economic problems and policy
instruments are different, but
economic thinking about these
problems can be transferred easily
from country to country.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Life in Developing Nations:
Population and Poverty
The United States and other
industrialized economies rarely face
the difficulties faced by developing
nations:
chronic food shortages
explosive population growth
hyperinflations
low productivity and low GDP per capita
primitive shelter
Illiteracy
infant mortality
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Life in Developing Nations:
Population and Poverty
Indicators of Economic Development
INFANT
MORTALITY,
1998 PERCENTAGE
GDP PER LIFE (DEATHS OF
POPULATION CAPITA, EXPECTANCY, BEFORE POPULATION IN
(MILLIONS) 1998 1998 AGE ONE PER URBAN AREAS,
COUNTRY GROUP 1998 (DOLLARS) (YEARS) 1,000 BIRTHS 1998
Low-income 3,536 520 63 68 30
(e.g., China, Ethiopia,
Haiti, India)
Lower middle-income 886 1,740 68 35 58
(e.g., Guatemala, Poland,
Philippines, Thailand)
Upper middle-income 588 4,870 71 26 77
(e.g., Brazil, Malaysia,
Mexico)
Industrial market economies 886 25,480 78 6 77
(e.g., Japan, Germany,
New Zealand, United States)
Source: World Bank, World Development Indicators, 2000.
2000. Note that all numbers refer to weighted averages for each country group, where the
weights equal the population of each nation in a specific country group.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Life in Developing Nations:
Population and Poverty
In the year 2,000, the world population
reached over 6.1 billion people. Most of the
worlds more than 200 nations belong to the
developing world.
While the developed nations account for
only about one-quarter of the worlds
population, they consume about three-
quarters of the worlds output.
Developing countries have three-fourths of
the worlds population, but only one-fourth of
the worlds income.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Life in Developing Nations:
Population and Poverty
Income Distribution in Some Developing Countries
UNITED
STATES SRI LANKA BRAZIL PAKISTAN INDONESIA KENYA
Per Capita GDP 1995 $29,240 $810 $4,630 $470 $640 $350
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Sources of Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Sources of Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Strategies for Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Agriculture or Industry?
Bangladesh 350 22 28 50
China 750 18 49 33
Thailand 2,160 11 41 48
Colombia 2,470 13 25 61
Brazil 4,630 8 29 63
Korea 8,600 5 43 52
Japan 32,350 2 37 61
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Exports or Import Substitution?
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Central Planning or the Market?
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Issues in Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Issues in Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Issues in Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Issues in Economic Development
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Developing Country Debt Burdens
Total (Public and Private) External Debt for Selected Countries, 1998
(Billions of Dollars)
TOTAL EXTERNAL TOTAL DEBT
COUNTRY DEBT AS A PERCENTAGE OF GDP
Guinea-Bissau 1.0 363
Nicaragua 6.0 295
Angola 12.7 280
Sudan 16.8 172
Indonesia 150.9 169
Thailand 86.2 76
Russian Federation 183.6 62
Peru 32.4 55
Argentina 144.0 52
Turkey 102.1 49
Mexico 159.9 41
Brazil 232.0 29
India 98.2 20
China 154.6 14
Source: World Bank, World Development Indicators, 2000.
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Political Systems and Economic Systems:
Socialism, Capitalism, and Communism
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Political Systems and Economic Systems:
Socialism, Capitalism, and Communism
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Political Systems and Economic Systems:
Socialism, Capitalism, and Communism
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Political Systems and Economic Systems:
Socialism, Capitalism, and Communism
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Transition to a Market Economy
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
The Transition to a Market Economy
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair
Shock Therapy or Gradualism?
2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ray Fair