(国际经济学英文课件)ch22Developing Countries.ppt

Chapter 22 Developing Countries:Growth, Crisis, and Reform Preview Snapshots of rich and poor countries Characteristics of poor countries Borrowing and debt in poor and middle income economies The problem of “original sin” Types of financial assets Latin American, East Asian, and Russian crises Currency boards and dollarization Lessons from crises and potential reforms Geography’s and human capital’s role in poverty Rich and Poor Low income: most sub-Saharan Africa, India, Pakistan Lower-middle income: China, Caribbean countries Upper-middle income: Brazil, Mexico, Saudi Arabia, Malaysia, South Africa, Czech Republic High income: U.S., Singapore, France, Japan, Kuwait Rich and Poor (cont.) While some previously middle and low income economies have grown faster than high income countries, and thus have “caught up” with high income countries, others have languished. The income levels of high income countries and some previously middle income and low income countries have converged. But the some of the poorest countries have had the lowest growth rates. Rich and Poor (cont.) Rich and Poor (cont.) Rich and Poor (cont.) Characteristics of Poor Countries What causes poverty? A difficult question, but low income countries have at least some of following characteristics, which could contribute to poverty: Government control of the economy Restrictions on trade Direct control of production in industries and a high level of government purchases relative to GNP Direct control of financial transactions Reduced competition reduces innovation; lack of market prices prevents efficient allocation of resources Characteristics of Poor Countries (cont.) Unsustainable macroeconomic polices which cause high inflation and unstable output and employment If governments can not pay for debts through taxes, they can print money to finance debts. Seignoirage is paying for real goods and services by printing money. Seignoirage generally leads to high inflation. High inflation reduces th