SlideShare une entreprise Scribd logo
1  sur  3
Télécharger pour lire hors ligne
Benedetta Piva                                                                          Economic Development
                                                                                            Fall Semester 2011


Over the past twenty-five years, China has experienced the highest growth rate I the world and also the most dramatic
reductions in poverty. The headcount of the poor in China fell from 634 million in 1981 to 128 million in 2004. India
has enjoyed similar success in growing their economy and reducing the headcount of the poor. The high growth rates of
China and India is attributed in large part to increasing globalization. Therefore, globalization is lifting hundreds of
millions of people out of poverty. Yet, there is growing opposition in many developed countries to globalization.
Discuss.
   China is a great example of how a country can take advantage of globalization to grow and
reduce national poverty. Adoption of new rule of law, of commitment to competition, of widespread
use of English, of foreign education, and of many foreign laws and institutions are not just updating
Chinese institutions but transforming Chinese civilization. All of China’s economic successes can
be associated with liberalization and globalization, and each aspect of globalization has brought
China further successes. Never in world history have so many workers improved their standards of
living so rapidly.
   China’s globalization successes has strongly influenced other countries. India has learned from
China the advantages of a more open economy. India used to have extremely protectionist trade
policies, an unwillingness toward foreign direct investment, and a remarkable network of domestic
socialist economic controls, combined with strong foreign economic and political ties to the old
Soviet Union. The China’s success showed to India that abandoning the old hostility to
globalization do not lead to prosperity. While India started later than China and moved more
slowly, India’s economic growth rates have doubled. The number of people in absolute poverty has
declined rapidly. Exports have boomed and foreign exchange reserves are ample now.
   China’s globalization has numerous impacts on many developed countries. First of all, products
that China exports all over the world are most of the time a lot more cheaper than domestic product.
The pricing policy Chinese manufacturers adopt is often considered dumping: products they export
to other countries have a price a lot below the price charged in their home market. This cannot be
explained through normal market competition. Dumping can force established domestic producers
out of a market and can lead to Chinese monopolistic position. This leads to loss of jobs and, thus,
unemployment in developed countries because developed countries-based companies cannot be
competitive in their markets and they often have to reorganize their production structure going
outside their country to regain competitiveness.
   Moreover, China and other countries that are taking advantage of globalization take, often with
no rights, technological innovations from well-advantage developed countries and exploit them to
produce and sell in international markets products that have the same technological level of the
others but at a lower price. They can do this because they do not concentrate their efforts on quality,
they are only focused on selling the cheapest products on the market. Considering the current
international recession, it is hard for developed countries-based companies to compete in their
market offering products that have the same technological standards at a higher price, even though
with better quality.
   Another tool countries like China use to success in international markets is currency
manipulation: China manipulates the value of its currency to enhance its international
competitiveness. Currency manipulation is one of the most important tools China is using to give its
exporters an upper hand. Doing so, Chinese products result even more competitive in international
markets and developed countries-based companies cannot keep up with them. This leads to a huge
loss of competitiveness of developed countries-based companies.
List and briefly describe the principal causes of high population growth in less developed countries and the major
consequences. Explain why fertility rates are falling in some developing countries and not in others.
     There are many causes of population growth in less developed countries. One of the most
relevant is education of women: in less developed countries women are less educated and tend to
have more children. This is because in these countries most of the time women are in charge and
allowed only of taking care of the family and children. They also have inferior roles and low status:
they are not allowed to study, thus they are not specialized in any kind of job. Women’s main task
does not include involving in activities done out of the extended family network. Therefore, they do
not feel the opportunity cost of doing something different from child-rearing activities. If women
are more educated they will have the change to work and to gain money. If so, they will have less
time to spend rearing children. The time they will spend outside the family will be valuable and,
together with wages they will gain, it will lessen the importance of having a large family. According
to this argument, population growth is a natural outcome of women’s lack of economic opportunity.
If women’s health, education, and economic well-being are improved along with their role and
status in both the family and the community, this empowerment of women will inevitably lead to
smaller families and lower population growth. Another cause of high population growth is the set of
religious believe and traditional value that is often particularly strong in less developed country.
Having a large family is seen as desirable: it is a value that every family has to achieve. Moreover,
no birth control is another relevant causes of population growth. In less developed countries there is
no or not much access to birth control and birth prevention. This is manifested in high fertility.
    There are several consequences of high population growth. First of all, rapid population growth
lowers per capita income growth in most less developed countries, especially those that are already
poor, dependent on agriculture, and experiencing pressures on land and natural resources. High
population growth also worsens inequality because it falls most heavily on the poor. Poor are the
ones who are made landless, suffer first from cuts in government health and education programs,
bear the brunt of environmental damage, and are the main victims of job cuts due to the slower
growth of economy. Moreover, large family size and low incomes restrict the opportunities of
parents to educate all their children. At the national level, rapid growth rate causes thinly-spread
educational expenditures, lowering quality for the sake of quantity. Therefore, the stock of human
capital and its quality is reduced. This effects economic growth in less developed countries. Indeed,
high fertility harms the health of mothers and children. It increases the health risks of pregnancy
and child mortality rates. High population growth also boosts food, water, facilities, and services
(like health care) requirements in less developed countries. Another consequence of this
phenomenon can be seen in an environment perspective. High population growth contributes to
environmental degradation in the form of forest encroachment, deforestation, declining fish and
animal stocks, inadequate and unsafe water, air pollution, and urban congestion. Rapid population
growth can also play a role in the international migration. International migration, both legal and
illegal, is caused by excess of job seekers, caused by rapid population growth, over job
opportunities in less developed countries.
    In developing countries like Brazil, Russia, India and China fertility rates are falling because
social, socio-cultural and economic conditions in these countries are changing and are approaching
to conditions in developed countries faster than in other developing countries. People, especially
women, start to see education as more valuable, thus families spend more to educate their children.
Discrimination against women is getting lower in those developing countries: women’s status and
role within the family is better than before. Therefore women can study and start their careers
outside the extended family network. This raises the opportunity cost of doing different activities
from the traditional child-rearing activities: having a large family with many children is getting less
valuable than job career and success. Indeed, urbanization and mobility of people toward cities
lower the importance of the family network and ties, traditional value and religious believes. All
these factors contribute to lowering fertility rates in those developing countries.
What is the relationship between the age structure of population and its dependency burden? Is the dependency burden
higher or lower in developing countries? Why?
    The dependency burden is the proportion of the total population aged 0 to 15 and 65+, which is
considered economically unproductive and, therefore, not counted in the labor force. The youngest
the population is, the lower the dependency burden is because there are more people considered
economically productive which can support and take care about the economically unproductive
ones. The dependency burden varies over time and among populations in ways that have important
economic and social consequences. The distribution of population by age is influenced by fertility
and mortality rates. Changes in mortality generally affect the age structure of population much less
than changes in fertility because mortality declines typically affect all ages, while fertility declines
affect the number of new entrants into the population.
    The developing world is currently going through a period of very rapid demographic change.
Birth rates have dropped rapidly in recent years as people, and especially women, are more
educated and have smaller families. Life expectancy in developing countries is rising thanks to
better environmental and work condition, better health care, better social and economic conditions,
and better life style in general. The population growth we can see in developing countries is caused
primarily by a sustained reduction in mortality. Improved living standards, better nutrition, clean
water supplies, expanded access to health services as immunization cause very rapid mortality
reductions. The young age structure of population in developing countries is also the result of high
fertility and rapid population growth in recent years. With a large proportion of the population
under age 30, we can assume a further growth over the next years because these young people will
produce more births than deaths because they will build families and will grow old (thanks to higher
life expectancy), even if their fertility is decreasing. Since these countries have a young structure of
population their dependency burden is lower than in developed countries.
    In next decades we can expect that dependency burden in these countries will become more and
more higher as in developed countries, where birth rate is near zero, life expectancy is at the highest
level, and, therefore, there is a higher percentage of total population that is economically
unproductive, mostly composed by older people.

Contenu connexe

Tendances

abdullah ayub 965 z (1) (1)
abdullah ayub 965 z (1) (1)abdullah ayub 965 z (1) (1)
abdullah ayub 965 z (1) (1)Abdullah Ayub
 
economic growth strategies
economic growth strategieseconomic growth strategies
economic growth strategiesasifrazakheel
 
Economical Issues in Pakistan
Economical Issues in PakistanEconomical Issues in Pakistan
Economical Issues in PakistanKamran Hafeez
 
What are the effects of Economic Growth?
What are the effects of Economic Growth?What are the effects of Economic Growth?
What are the effects of Economic Growth?Susanna Pierce
 
Economic, social & political problems of pakistan
Economic, social & political problems of pakistanEconomic, social & political problems of pakistan
Economic, social & political problems of pakistanrana bilal
 
Define and distinguish between economic growth and economic development.
Define and distinguish between economic growth and economic development.Define and distinguish between economic growth and economic development.
Define and distinguish between economic growth and economic development.Mahendra Kumar Ghadoliya
 
18 Obstacles To Development
18 Obstacles To Development18 Obstacles To Development
18 Obstacles To DevelopmentEcumene
 
Futuristic Outlook of Pakistan
Futuristic Outlook of PakistanFuturistic Outlook of Pakistan
Futuristic Outlook of PakistanSaira Randhawa
 
Economic growth & economic development, underdevelopment
Economic growth & economic development, underdevelopmentEconomic growth & economic development, underdevelopment
Economic growth & economic development, underdevelopmentMk Ghadoliya
 
Unemployment and poverty
Unemployment and povertyUnemployment and poverty
Unemployment and povertyHiran Patel
 
Four Factors of Economic Growth
Four Factors of Economic GrowthFour Factors of Economic Growth
Four Factors of Economic GrowthHeatherP
 
Phases of Economic Development
Phases of Economic DevelopmentPhases of Economic Development
Phases of Economic DevelopmentRich Pagaduan
 
Measures of development_ppt
Measures of development_pptMeasures of development_ppt
Measures of development_pptcindipatten
 
Economic and social development
Economic and social developmentEconomic and social development
Economic and social developmentKAZEMBETVOnline
 
Economic growth and economic development
Economic growth and economic developmentEconomic growth and economic development
Economic growth and economic developmentSweetp999
 
Four factors of economic growth
Four factors of economic growthFour factors of economic growth
Four factors of economic growthchrisallie93
 
Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...
Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...
Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...Business Finland
 
Obstacles in way of development of Pakistan economy
Obstacles in way of development of Pakistan economy Obstacles in way of development of Pakistan economy
Obstacles in way of development of Pakistan economy Hagi Sahib
 

Tendances (20)

abdullah ayub 965 z (1) (1)
abdullah ayub 965 z (1) (1)abdullah ayub 965 z (1) (1)
abdullah ayub 965 z (1) (1)
 
economic growth strategies
economic growth strategieseconomic growth strategies
economic growth strategies
 
Economy of pakistan
Economy of pakistanEconomy of pakistan
Economy of pakistan
 
Economical Issues in Pakistan
Economical Issues in PakistanEconomical Issues in Pakistan
Economical Issues in Pakistan
 
What are the effects of Economic Growth?
What are the effects of Economic Growth?What are the effects of Economic Growth?
What are the effects of Economic Growth?
 
Economic, social & political problems of pakistan
Economic, social & political problems of pakistanEconomic, social & political problems of pakistan
Economic, social & political problems of pakistan
 
Define and distinguish between economic growth and economic development.
Define and distinguish between economic growth and economic development.Define and distinguish between economic growth and economic development.
Define and distinguish between economic growth and economic development.
 
18 Obstacles To Development
18 Obstacles To Development18 Obstacles To Development
18 Obstacles To Development
 
Futuristic Outlook of Pakistan
Futuristic Outlook of PakistanFuturistic Outlook of Pakistan
Futuristic Outlook of Pakistan
 
Economic growth & economic development, underdevelopment
Economic growth & economic development, underdevelopmentEconomic growth & economic development, underdevelopment
Economic growth & economic development, underdevelopment
 
Unemployment and poverty
Unemployment and povertyUnemployment and poverty
Unemployment and poverty
 
Four Factors of Economic Growth
Four Factors of Economic GrowthFour Factors of Economic Growth
Four Factors of Economic Growth
 
Phases of Economic Development
Phases of Economic DevelopmentPhases of Economic Development
Phases of Economic Development
 
Measures of development_ppt
Measures of development_pptMeasures of development_ppt
Measures of development_ppt
 
Economic and social development
Economic and social developmentEconomic and social development
Economic and social development
 
Economic growth and economic development
Economic growth and economic developmentEconomic growth and economic development
Economic growth and economic development
 
Four factors of economic growth
Four factors of economic growthFour factors of economic growth
Four factors of economic growth
 
Business Environment
Business Environment Business Environment
Business Environment
 
Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...
Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...
Pakistan Challenges and Opportunities, Nadeem Riyaz, Ambassador of Pakistan t...
 
Obstacles in way of development of Pakistan economy
Obstacles in way of development of Pakistan economy Obstacles in way of development of Pakistan economy
Obstacles in way of development of Pakistan economy
 

Similaire à Economic development

1) Explain how political obstacles (lack of skilled officials, insta.pdf
1) Explain how political obstacles (lack of skilled officials, insta.pdf1) Explain how political obstacles (lack of skilled officials, insta.pdf
1) Explain how political obstacles (lack of skilled officials, insta.pdfjibinsh
 
Characteristics Of Developing Nation
Characteristics Of Developing NationCharacteristics Of Developing Nation
Characteristics Of Developing NationAshley Cornett
 
Challenges Facing Developing Countries
Challenges Facing Developing CountriesChallenges Facing Developing Countries
Challenges Facing Developing CountriesPay To Do My Paper UK
 
Localization And Globalization
Localization And GlobalizationLocalization And Globalization
Localization And GlobalizationLisa Martinez
 
Economic Inequality In The United States
Economic Inequality In The United StatesEconomic Inequality In The United States
Economic Inequality In The United StatesTraci Webb
 
15561183 Poverty In Pakistan
15561183 Poverty In Pakistan15561183 Poverty In Pakistan
15561183 Poverty In Pakistan03322080738
 
Causes of poverty in world A Lecture by Mr Allah Dad Khan Former DG Agri Ext...
Causes of poverty in world  A Lecture by Mr Allah Dad Khan Former DG Agri Ext...Causes of poverty in world  A Lecture by Mr Allah Dad Khan Former DG Agri Ext...
Causes of poverty in world A Lecture by Mr Allah Dad Khan Former DG Agri Ext...Mr.Allah Dad Khan
 
Economic Features Of Developing Nations
Economic Features Of Developing NationsEconomic Features Of Developing Nations
Economic Features Of Developing NationsSivapriyaHR1
 
Development revision ppt
Development revision pptDevelopment revision ppt
Development revision pptSBrooker
 
demographic and population control policies
demographic and population control policiesdemographic and population control policies
demographic and population control policiesPatricia Clariza Santos
 
Module 3 unit 2 geography
Module 3 unit 2 geographyModule 3 unit 2 geography
Module 3 unit 2 geographyOral Johnson
 
Young Adults During The U.S.
Young Adults During The U.S.Young Adults During The U.S.
Young Adults During The U.S.Patricia Johnson
 

Similaire à Economic development (20)

1) Explain how political obstacles (lack of skilled officials, insta.pdf
1) Explain how political obstacles (lack of skilled officials, insta.pdf1) Explain how political obstacles (lack of skilled officials, insta.pdf
1) Explain how political obstacles (lack of skilled officials, insta.pdf
 
Characteristics Of Developing Nation
Characteristics Of Developing NationCharacteristics Of Developing Nation
Characteristics Of Developing Nation
 
Challenges Facing Developing Countries
Challenges Facing Developing CountriesChallenges Facing Developing Countries
Challenges Facing Developing Countries
 
Developing Countries Essay
Developing Countries EssayDeveloping Countries Essay
Developing Countries Essay
 
Localization And Globalization
Localization And GlobalizationLocalization And Globalization
Localization And Globalization
 
Economic Inequality In The United States
Economic Inequality In The United StatesEconomic Inequality In The United States
Economic Inequality In The United States
 
15561183 Poverty In Pakistan
15561183 Poverty In Pakistan15561183 Poverty In Pakistan
15561183 Poverty In Pakistan
 
vicious circle of poverty
vicious circle of povertyvicious circle of poverty
vicious circle of poverty
 
Causes of poverty in world A Lecture by Mr Allah Dad Khan Former DG Agri Ext...
Causes of poverty in world  A Lecture by Mr Allah Dad Khan Former DG Agri Ext...Causes of poverty in world  A Lecture by Mr Allah Dad Khan Former DG Agri Ext...
Causes of poverty in world A Lecture by Mr Allah Dad Khan Former DG Agri Ext...
 
Economic Features Of Developing Nations
Economic Features Of Developing NationsEconomic Features Of Developing Nations
Economic Features Of Developing Nations
 
Development revision ppt
Development revision pptDevelopment revision ppt
Development revision ppt
 
Poverty bb
Poverty bbPoverty bb
Poverty bb
 
Poverty bb
Poverty bbPoverty bb
Poverty bb
 
demographic and population control policies
demographic and population control policiesdemographic and population control policies
demographic and population control policies
 
The Importance Of Economic Development
The Importance Of Economic DevelopmentThe Importance Of Economic Development
The Importance Of Economic Development
 
MPA 211 Rural Development
MPA 211 Rural Development MPA 211 Rural Development
MPA 211 Rural Development
 
Module 3 unit 2 geography
Module 3 unit 2 geographyModule 3 unit 2 geography
Module 3 unit 2 geography
 
Effects of income inequality in asia
Effects of income inequality in asiaEffects of income inequality in asia
Effects of income inequality in asia
 
Young Adults During The U.S.
Young Adults During The U.S.Young Adults During The U.S.
Young Adults During The U.S.
 
Poverty In Developing Countries
Poverty In Developing CountriesPoverty In Developing Countries
Poverty In Developing Countries
 

Plus de Benedetta Piva

The travels of a t-shirt in the global economy
The travels of a t-shirt in the global economyThe travels of a t-shirt in the global economy
The travels of a t-shirt in the global economyBenedetta Piva
 
F1 customers needs and wants
F1 customers needs and wantsF1 customers needs and wants
F1 customers needs and wantsBenedetta Piva
 
Project final presentation
Project   final presentationProject   final presentation
Project final presentationBenedetta Piva
 
A business plan - Benji bikez
A business plan - Benji bikezA business plan - Benji bikez
A business plan - Benji bikezBenedetta Piva
 
Supreme canning company.docx
Supreme canning company.docxSupreme canning company.docx
Supreme canning company.docxBenedetta Piva
 

Plus de Benedetta Piva (10)

Barilla supply chain
Barilla supply chainBarilla supply chain
Barilla supply chain
 
Amazon supply chain
Amazon supply chainAmazon supply chain
Amazon supply chain
 
The travels of a t-shirt in the global economy
The travels of a t-shirt in the global economyThe travels of a t-shirt in the global economy
The travels of a t-shirt in the global economy
 
F1 customers needs and wants
F1 customers needs and wantsF1 customers needs and wants
F1 customers needs and wants
 
Project final presentation
Project   final presentationProject   final presentation
Project final presentation
 
A business plan - Benji bikez
A business plan - Benji bikezA business plan - Benji bikez
A business plan - Benji bikez
 
Supreme canning company.docx
Supreme canning company.docxSupreme canning company.docx
Supreme canning company.docx
 
Starbucks Strategy
Starbucks StrategyStarbucks Strategy
Starbucks Strategy
 
Stategic Drift
Stategic Drift Stategic Drift
Stategic Drift
 
Virgin Group
Virgin GroupVirgin Group
Virgin Group
 

Dernier

Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating PerformanceSix Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating PerformanceOperational Excellence Consulting
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
Company Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdfCompany Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdfRobertPhillips265023
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלימיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגליBen Shushan & Co. C.P.A (Isr.)
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
Entrepreneurship and individuals workshop
Entrepreneurship and individuals workshopEntrepreneurship and individuals workshop
Entrepreneurship and individuals workshopP&CO
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
Human Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and AppraisalHuman Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and Appraisalgomezdominic3
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 

Dernier (20)

Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating PerformanceSix Sigma Improvement Process: Transforming Processes, Elevating Performance
Six Sigma Improvement Process: Transforming Processes, Elevating Performance
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
Company Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdfCompany Profile and SWOT Analysis Product List.pdf
Company Profile and SWOT Analysis Product List.pdf
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלימיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
מיסוי רילוקיישן לפורטוגל- היבטי מיסוי ישראלי ופורטוגלי
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
Entrepreneurship and individuals workshop
Entrepreneurship and individuals workshopEntrepreneurship and individuals workshop
Entrepreneurship and individuals workshop
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
AL Satwa Dubai Call Girls +971552825767 Call Girls In AL Karama
AL Satwa Dubai Call Girls +971552825767  Call Girls In AL KaramaAL Satwa Dubai Call Girls +971552825767  Call Girls In AL Karama
AL Satwa Dubai Call Girls +971552825767 Call Girls In AL Karama
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Human Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and AppraisalHuman Resource Management Chapter 9: Performance Management and Appraisal
Human Resource Management Chapter 9: Performance Management and Appraisal
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 

Economic development

  • 1. Benedetta Piva Economic Development Fall Semester 2011 Over the past twenty-five years, China has experienced the highest growth rate I the world and also the most dramatic reductions in poverty. The headcount of the poor in China fell from 634 million in 1981 to 128 million in 2004. India has enjoyed similar success in growing their economy and reducing the headcount of the poor. The high growth rates of China and India is attributed in large part to increasing globalization. Therefore, globalization is lifting hundreds of millions of people out of poverty. Yet, there is growing opposition in many developed countries to globalization. Discuss. China is a great example of how a country can take advantage of globalization to grow and reduce national poverty. Adoption of new rule of law, of commitment to competition, of widespread use of English, of foreign education, and of many foreign laws and institutions are not just updating Chinese institutions but transforming Chinese civilization. All of China’s economic successes can be associated with liberalization and globalization, and each aspect of globalization has brought China further successes. Never in world history have so many workers improved their standards of living so rapidly. China’s globalization successes has strongly influenced other countries. India has learned from China the advantages of a more open economy. India used to have extremely protectionist trade policies, an unwillingness toward foreign direct investment, and a remarkable network of domestic socialist economic controls, combined with strong foreign economic and political ties to the old Soviet Union. The China’s success showed to India that abandoning the old hostility to globalization do not lead to prosperity. While India started later than China and moved more slowly, India’s economic growth rates have doubled. The number of people in absolute poverty has declined rapidly. Exports have boomed and foreign exchange reserves are ample now. China’s globalization has numerous impacts on many developed countries. First of all, products that China exports all over the world are most of the time a lot more cheaper than domestic product. The pricing policy Chinese manufacturers adopt is often considered dumping: products they export to other countries have a price a lot below the price charged in their home market. This cannot be explained through normal market competition. Dumping can force established domestic producers out of a market and can lead to Chinese monopolistic position. This leads to loss of jobs and, thus, unemployment in developed countries because developed countries-based companies cannot be competitive in their markets and they often have to reorganize their production structure going outside their country to regain competitiveness. Moreover, China and other countries that are taking advantage of globalization take, often with no rights, technological innovations from well-advantage developed countries and exploit them to produce and sell in international markets products that have the same technological level of the others but at a lower price. They can do this because they do not concentrate their efforts on quality, they are only focused on selling the cheapest products on the market. Considering the current international recession, it is hard for developed countries-based companies to compete in their market offering products that have the same technological standards at a higher price, even though with better quality. Another tool countries like China use to success in international markets is currency manipulation: China manipulates the value of its currency to enhance its international competitiveness. Currency manipulation is one of the most important tools China is using to give its exporters an upper hand. Doing so, Chinese products result even more competitive in international markets and developed countries-based companies cannot keep up with them. This leads to a huge loss of competitiveness of developed countries-based companies.
  • 2. List and briefly describe the principal causes of high population growth in less developed countries and the major consequences. Explain why fertility rates are falling in some developing countries and not in others. There are many causes of population growth in less developed countries. One of the most relevant is education of women: in less developed countries women are less educated and tend to have more children. This is because in these countries most of the time women are in charge and allowed only of taking care of the family and children. They also have inferior roles and low status: they are not allowed to study, thus they are not specialized in any kind of job. Women’s main task does not include involving in activities done out of the extended family network. Therefore, they do not feel the opportunity cost of doing something different from child-rearing activities. If women are more educated they will have the change to work and to gain money. If so, they will have less time to spend rearing children. The time they will spend outside the family will be valuable and, together with wages they will gain, it will lessen the importance of having a large family. According to this argument, population growth is a natural outcome of women’s lack of economic opportunity. If women’s health, education, and economic well-being are improved along with their role and status in both the family and the community, this empowerment of women will inevitably lead to smaller families and lower population growth. Another cause of high population growth is the set of religious believe and traditional value that is often particularly strong in less developed country. Having a large family is seen as desirable: it is a value that every family has to achieve. Moreover, no birth control is another relevant causes of population growth. In less developed countries there is no or not much access to birth control and birth prevention. This is manifested in high fertility. There are several consequences of high population growth. First of all, rapid population growth lowers per capita income growth in most less developed countries, especially those that are already poor, dependent on agriculture, and experiencing pressures on land and natural resources. High population growth also worsens inequality because it falls most heavily on the poor. Poor are the ones who are made landless, suffer first from cuts in government health and education programs, bear the brunt of environmental damage, and are the main victims of job cuts due to the slower growth of economy. Moreover, large family size and low incomes restrict the opportunities of parents to educate all their children. At the national level, rapid growth rate causes thinly-spread educational expenditures, lowering quality for the sake of quantity. Therefore, the stock of human capital and its quality is reduced. This effects economic growth in less developed countries. Indeed, high fertility harms the health of mothers and children. It increases the health risks of pregnancy and child mortality rates. High population growth also boosts food, water, facilities, and services (like health care) requirements in less developed countries. Another consequence of this phenomenon can be seen in an environment perspective. High population growth contributes to environmental degradation in the form of forest encroachment, deforestation, declining fish and animal stocks, inadequate and unsafe water, air pollution, and urban congestion. Rapid population growth can also play a role in the international migration. International migration, both legal and illegal, is caused by excess of job seekers, caused by rapid population growth, over job opportunities in less developed countries. In developing countries like Brazil, Russia, India and China fertility rates are falling because social, socio-cultural and economic conditions in these countries are changing and are approaching to conditions in developed countries faster than in other developing countries. People, especially women, start to see education as more valuable, thus families spend more to educate their children. Discrimination against women is getting lower in those developing countries: women’s status and role within the family is better than before. Therefore women can study and start their careers outside the extended family network. This raises the opportunity cost of doing different activities from the traditional child-rearing activities: having a large family with many children is getting less valuable than job career and success. Indeed, urbanization and mobility of people toward cities lower the importance of the family network and ties, traditional value and religious believes. All these factors contribute to lowering fertility rates in those developing countries.
  • 3. What is the relationship between the age structure of population and its dependency burden? Is the dependency burden higher or lower in developing countries? Why? The dependency burden is the proportion of the total population aged 0 to 15 and 65+, which is considered economically unproductive and, therefore, not counted in the labor force. The youngest the population is, the lower the dependency burden is because there are more people considered economically productive which can support and take care about the economically unproductive ones. The dependency burden varies over time and among populations in ways that have important economic and social consequences. The distribution of population by age is influenced by fertility and mortality rates. Changes in mortality generally affect the age structure of population much less than changes in fertility because mortality declines typically affect all ages, while fertility declines affect the number of new entrants into the population. The developing world is currently going through a period of very rapid demographic change. Birth rates have dropped rapidly in recent years as people, and especially women, are more educated and have smaller families. Life expectancy in developing countries is rising thanks to better environmental and work condition, better health care, better social and economic conditions, and better life style in general. The population growth we can see in developing countries is caused primarily by a sustained reduction in mortality. Improved living standards, better nutrition, clean water supplies, expanded access to health services as immunization cause very rapid mortality reductions. The young age structure of population in developing countries is also the result of high fertility and rapid population growth in recent years. With a large proportion of the population under age 30, we can assume a further growth over the next years because these young people will produce more births than deaths because they will build families and will grow old (thanks to higher life expectancy), even if their fertility is decreasing. Since these countries have a young structure of population their dependency burden is lower than in developed countries. In next decades we can expect that dependency burden in these countries will become more and more higher as in developed countries, where birth rate is near zero, life expectancy is at the highest level, and, therefore, there is a higher percentage of total population that is economically unproductive, mostly composed by older people.