ECON 370
Lecture 1
Introductory
• Development as a process
– Historical, dynamic (fire, agriculture, indust’l rev’n ...)
– Poverty, health, freedom
• Growth – changes in values of economic
parameters quantitative, extension of already
established structure
• Development – growth accompanied or preseded
by institutional change, qualitative, creation of
new economic and non-economic structures
• "Productivity isn’t everything, but in the long run it is almost
everything. A country’s ability to improve its standard of living
over time depends almost entirely on its ability to raise its
output per worker.” (Paul Krugman)
Terminology and attitudes
EARLIER:
Developed/underdeveloped
Advanced/backward
First world/Third world
Colonialism, imperialism, dependence
STILL:
North/South
Rich/poor – High/middle/low income
Traditional/modern
NOW:
Developed/developing
Industrialized/Newly industrializing
Countries
Developing
Developed
Angola
Zambia
S. Africa
Côte d’Iv
Ghana
Nigeria
Brazil
Venezuela
China
Mongolia
Bangladesh
India
Vietnam
Russia
TURKEY
2011
GDP
per cap
4222
42071
5318
1427
8094
1187
1587
1297
12276
10683
5241
3125
714
1566
1359
12890
10571
2012
GDP
per cap
ppp
6315
38325
5400
1590
11010
1920
1910
2450
11530
12920
9040
5020
2030
3910
3620
22720
18190
GDP
Growth
GDP per
cap
Growth
9200
4.8
2.9
5.0
0.8
2.7
4.1
4.3
2.3
2.9
0.9
9.9
3.0
4.9
6.3
7.8
-1.8
3.8
9200
3.0
2.3
2.0
-1.8
0.9
1.4
1.7
-0.1
1.3
-1.2
8.9
2.2
2.8
4.4
6.2
-1.6
2.2
0010
6.1
1.6
13.0
5.6
3.9
1.1
5.7
7.3
3.7
4.6
10.8
7.2
5.9
8.0
7.5
5.4
4.7
0010
4.6
1.0
9.4
3.0
2.7
0.6
3.2
4.7
2.6
2.7
10.2
5.8
4.5
6.4
6.3
5.7
3.3
UNCTAD HAndbook, World Bank World Development Indicators
% Pop. <
2
USD/day
81.3
35.7
46.8
63.3
83.1
11.3
21.9
29.8
80.3
75.6
48.1
<2
4.2
HDI
rank
GNI–
HDR
ranks
148
163
121
168
135
153
85
71
101
108
146
136
127
55
90
-35
0
-42
-9
22
-6
-8
-2
-11
10
9
-3
9
0
-32
Countries
Norway
US
Angola
Zambia
S. Africa
Côte d’Iv
Ghana
Nigeria
Brazil
Venezuela
China
Mongolia
Bangladesh
India
Vietnam
Russia
TURKEY
HDI
rank
2012
1
3
148
163
121
168
135
153
85
71
101
108
146
136
127
55
90
GNI–
HDR
ranks
4
6
-35
0
-42
-9
22
-6
-8
-2
-11
10
9
-3
9
0
-32
Inequality Gender
Urbanization Schooling
Adj. rank inequality % of pop. *
1
16
160
165
..
171
138
166
97
88
101
95
141
135
113
..
91
HDR 2013, table 1, 3, * WDI 2013
5
42
..
136
90
138
121
..
85
93
35
56
111
132
48
51
68
1990
72
75
37
39
52
39
36
35
74
84
26
57
20
26
20
73
59
2012
80
83
60
40
62
52
53
50
85
94
52
69
29
32
32
74
72
mean
12.6
13.3
4.7
6.7
8.5
4.2
7.0
5.2
7.2
7.6
7.5
8.3
4.8
4.4.
5.5
11.7
6.5
Exp.
17.5
16.8
10.2
8.5
13.1
6.5
11.4
9.0
14.2
14.4
11.7
14.3
8.1
10.7
11.9
14.3
12.9
Life
expect.
at birth
81.3
78.8
51.5
49.4
53.4
56.0
64.6
52.3
73.8
74.6
73.7
68.8
69.2
65.8
75.4
69.1
74.2
Countries
Agricultural
Productivity
per worker
Energy
1000t oil
eq. / cap
Energy
use
growth
Structure of Output
Agriculture
Norway
2012 USD
53901
2011
5681
990-011
1.6
2000
2
2012
2
US
Angola
49817
867
7032
673
0.8
4.2
1
6
1
10
Zambia
592
621
2.1
22
20
S. Africa
Côte d’Iv
Ghana
Nigeria
5967
1213*
..
4453
2795
579
425
721
2.4
4.7
3.0
2.5
3
24
39
26
3
..
23
33
Brazil
Venezuela
China
Mongolia
Bangladesh
India
Vietnam
Russia
TURKEY
5035
9210
749
3937
492
663
468
5269
6598
1371
2380
2029
1310
205
614
697
5113
1539
3.1
2.1
5.8
0.3
4.6
4.0
6.2
-0.6
3.6
6
4
15
31
26
23
23
6
11
5
6
10
17
18
17
20
4
9
World Development Indicators, Tables 3.3, 3.6, 4.2
Industry
(manuf)
2000 2012
42
40
11
9
22
19
72
60
3
6
25
37
11
8
32
28
25
..
28
27
52
41
4
2
28
26
50
52
46
45
25 8 33 7
25
28
26
26
34
39
38
36
31
27
Services
2000
56
2012
59
76
22
79
30
53
43
65
51
32
22
69
..
50
26
67
46
39
44
49
51
43
56
57
68
42
45
50
54
57
42
60
64