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Ch36 Problems of Developing Countries(经济学,英文版-复旦,周翼)
Chapter 36 Problems of developing countries David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation by Peter Smith Some key issues Less-developed countries (LDCs) countries with low levels of per capita output Why have LDCs remained poor? The potential roles of: comparative advantage industrialization international debt structural adjustment aid The world distribution of income In 1998 there were 3.5 billion people living in low-income countries with average annual income of about ￡313 per person. In 1998, there were 0.9 billion people living in high-income countries with average annual income of about ￡15,367 per person. Welfare indicators by country group Problems of LDCs (1) Resource scarcity LDCs lack natural resources or the means to exploit them Capital few domestic resources available for investment multinationals may repatriate profits, rather than reinvesting. Problems of LDCs (2) Social investment in infrastructure LDCs may not be able to achieve scale economies in power generation roads telephone systems urban housing Customs and ideology in SOME cases, traditional attitudes may inhibit development but this argument is often over-stated Problems of LDCs (3) Human capital LDCs lack resources to invest in health nutrition education industrial training so workers in LDCs tend to be less productive than workers using the same technology in HICs. Low productivity agriculture Many LDCs have a high proportion of their labour force engaged in low productivity agriculture. Possible paths to development? Trade in primary products Industrialization Borrowing Structural adjustment Aid Development: through trade in primary products? Primary products are agricultural goods and minerals. Comparative advantage suggests that LDCs should specialize in primary production, BUT: some evidence suggests the terms of trade have been moving against primary products and towards manufactures prices of primary products t
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