...theories of growth and development, explain the contrasting growth experience of China and Sub Saharan Africa post 1980. Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future. Development has become synonymous for industrialisation. Economic growth comes from increasing the Gross Domestic Product (GDP), this is done by producing more through the addition of more capital and labour. As you begin to use up the factors of production the law of diminishing returns can hinder growth. Therefore, a vital factor for the development of emerging markets is technology, which should be harnessed to improve means of production and other such things to see a progressive economy. In this sense I will be looking at both China and Sub-Saharan Africa to see how technology or the lack thereof has been utilised and the implications this has had on their economies. There are a number of factors that have contributed to Sub-Saharan African (SSA) countries generally not experiencing the rates of growth and development as other emerging market regions, such as China. However...
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...AFRICAN POVERTY Duncan Kennedy* Abstract: African extreme poverty is probably a function (although not solely) of the balkanized post-colonial geopolitics of Africa. It is also probably a function (although not solely) of the income distribution generated by a typically perverse African political economy, through its effect on the allocation of resources to development. As between these two causes, the second is probably much the more important. This reinterpretation puts considerably more of the blame for African poverty on the Western great powers than does the “poverty trap” analytic that is a common contemporary way of thinking about the African economic situation. INTRODUCTION This essay, which really is an essay rather than a sustained scholarly encounter with the problem, proposes an alternative to the “poverty trap” analytic for understanding extreme poverty in sub-Saharan Africa. The poverty-trap idea is well instantiated by the following quotation from Jeffrey and Lisa Sachs, and it is common among liberal Western commentators on African economy. For the world’s poorest people, daily life is a struggle for survival, with millions of impoverished people each year losing that struggle to famine, disease, environmental catastrophes, and violent conflicts that arise in conditions of extreme deprivation. . . . One basic point, not always remembered, is that impoverished countries lack their own budgetary resources needed to supply vital—indeed life-saving—services such...
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...RETHINKING THE (EUROPEAN) FOUNDATIONS OF SUB-SAHARAN AFRICAN REGIONAL ECONOMIC INTEGRATION: A POLITICAL ECONOMY ESSAY by Peter Draper Research area: African Economic Outlook September 2010 Working Paper No. 293 Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10 2 © OECD 2010 DEVELOPMENT CENTRE WORKING PAPERS This series of working papers is intended to disseminate the Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language. Comments on this paper would be welcome and should be sent to the OECD Development Centre, 2 rue André Pascal, 75775 PARIS CEDEX 16, France; or to dev.contact@oecd.org. Documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org). THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS DOCUMENT ARE THE SOLE RESPONSIBILITY OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR OF THE GOVERNMENTS OF ITS MEMBER COUNTRIES ©OECD (2010) Applications for permission to reproduce or translate all or part of this document should be sent to rights@oecd.org CENTRE DE DÉVELOPPEMENT DOCUMENTS DE TRAVAIL Cette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre...
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...Human development in a basis of brainpower is one of the most fundamental cause not only economic development but also in terms of development in general. Human endures intellect toward productive growth in developed countries which mainly relies on technological innovation. However, as for developing countries, growth and development follows developed countries by forcing the technology mechanism and changing the structure of production towards activities with higher levels of productivity. The evidence show that during 1970s and 1980s there were of structural changes in economic activities where developing countries enters the global markets. In his preface, Giplin (2001; xi) point out that “…important step toward the creation of a truly global economy, since the mid-1980s the world has also witnessed the extraordinary growth of economic regionalism as a countermovement to economic globalization.” Similarly, Magdoff (1992; 50) state that “In fact, capital exports have helped shape the evolving global economy ever since the end of the Second World War”. Moreover, Glyn and Sutcliffe (1992; 79) point out that “…left the world economy leaderless in the 1970s and 1980s with increasingly open economies disciplined by market forces, but without a unique center of gravity.” This implies that global economies forces t To provide a well-structured discussion, this essay will begin by briefly introducing into how neo-liberalism in the mainstream of development thinking greatly achieve...
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...Dynamics in India and Implications for Economic Growth David E. Bloom January 2011 PGDA Working Paper No. 65 http://www.hsph.harvard.edu/pgda/working.htm The views expressed in this paper are those of the author(s) and not necessarily those of the Harvard Initiative for Global Health. The Program on the Global Demography of Aging receives funding from the National Institute on Aging, Grant No. 1 P30 AG024409-06. 1 Population Dynamics in India and Implications for Economic Growth1 David E. Bloom Harvard School of Public Health January 2011 Keywords: Age structure China-India comparison Conditional convergence Demographic dividend Demographic transition Economic growth Economic growth in India Policy reform Population health Population of India Abstract Demographic change in India is opening up new economic opportunities. As in many countries, declining infant and child mortality helped to spark lower fertility, effectively resulting in a temporary baby boom. As this cohort moves into working ages, India finds itself with a potentially higher share of workers as compared with dependents. If working-age people can be productively employed, India’s economic growth stands to accelerate. Theoretical and empirical literature on the effect of demographics on labor supply, savings, and economic growth underpins this effort to understand and forecast economic growth in India. Policy choices can potentiate India’s realization of economic benefits stemming from demographic...
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...Agriculture, growth and poverty reduction This paper was produced by the Agriculture and Natural Resources Team of the UK Department for International Development (DFID) in collaboration with Anne Thomson of Oxford Policy Management, Oxford. The authors are grateful to the UK Food Group for their additional contributions and comments. The paper reflects work in progress towards the development of new thinking on agricultural policy in DFID. It does not necessarily reflect the views and policy of DFID. This (working/supporting) paper is intended to stimulate public discussion. It is not necessarily DFID or UK Government policy. October 2004 Contents Executive Summary...................................................................................................... 3 1. What is the issue? .................................................................................................... 4 2. Agriculture, growth and poverty – what we know of the relationship ............................ 5 2.1 The context – the state of world poverty............................................................... 5 2.2 Agriculture’s recent performance – a picture of mixed progress............................... 7 2.3 Agricultural growth and poverty reduction – the evidence....................................... 9 2.4 Understanding how increased agricultural productivity reduces poverty ................. 10 3. Emerging issues and questions................................................
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...accounts for only 2.4 % of the world surface areas and yet it supports and sustains 16.2 % of the world population (Figure 2.1). In Other Countries China 1950, China with 21 % share of the India population was the most populous USA Indonesia country followed by India, which had Brazil a share of 14.2 %. It is estimated Pakistan Russian Fed that by 2050, India will overtake Bangladesh China to become the most populous Japan Nigeria country with about 17.2 % of global population. A comparison of some demographic parameters between Source: Reference 2.2 India and some of the neighboring countries is given in Table 2.1. China and Sri Lanka are far ahead of India in all these parameters. Figure 2.1: Population: India and the world Demographic transition 1947-2007 Demographic transition is a global phenomenon. Demographers recognize four phases of demographic transition. In the first phase improved health care technologies and improved access to health care result in reduction in mortality rates but, birth rate continues to be high and therefore population growth occurs. In the second there is reduction in birth rate but the reduction in death rate is higher than reduction in birth rate, as a result population increases. In the third phase, birth rates and death rates are both low; however population growth continues because of a large number of individuals in the reproductive age group. In the fourth phase the Table 2.1: Some demographic parameters:...
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...of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. Global Employment Trends 2012 / International Labour Office – Geneva: ILO, 2012 1 v. ISBN 978-92-2-124924-5 (print) ISBN 978-92-2-124925-2 (web pdf) International Labour Office employment / unemployment / labour force participation / economic recession / developed countries / developing countries 13.01.3 Also available in French, Tendances mondiales de l’emploi 2012 (978-92-2-224924-4), Geneva, 2012, and Spanish, Tendencias Mundiales del Empleo 2012 (978-92-2-324924-3), Geneva, 2012. ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in...
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...Chetanna Chukwudum | Submitted: | 06.04.2014 | Content Tables III Figures III Abbreviations IV 1 Overview of Hedge Funds Strategies 1 2 What are Emerging Markets and why are they so important? 2 3 Why do Hedge Funds invest in Emerging Markets 6 4 DWS Invest Global EM Equities LC 8 4.1 Inside the DWS Invest Global EM Equities LC fund 8 4.2 Performance of the fund 10 5 Hedge Funds Performance in EM scientific paper review 11 6 Hedge Funds Strategies in EM and Africa 12 6.1 Investment strategies in more developed EM. 16 6.2 Hedge Fund Strategies within Africa and Sub Saharan Africa 19 7 Risk exposures in emerging markets 23 8 Conclusion 25 References 26 Tables Table 1: Hedge Fund Strategies 1 Figures Figure 1: Emerging Markets vs. Developed Markets 2 Figure 2: Emerging Markets vs. Developed Markets GDP growth in percentage 3 Figure 3: Development of the working-age population 3 Figure 4: EM vs. US: Consumption levels 4 Figure 5: EM dept. has exceeded EM 5 Figure 6: MSCI World vs. MSCI Emerging Markets 6 Figure 7: CS Hedge Fund Index vs CS EM Hedge Fund Index 7 Figure 8: Country distribution 8 Figure 9: Industry Sectors 9 Figure 10: Equity Share Distribution 9 Figure 11: Perfomanc of the fund 10 Figure 12: EM performance 13 Figure 13: Performance of EM 14 Figure 14: Hedge Fund Strategies in Africa 17 Figure 15: Hedge Fund Strategies in Asian-pacific region 17 Figure 16: Brazil Asset Class Performance 19 Figure...
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...to poor people has the vital importance in the development of any country. In this new era of globalization poverty is still a worldwide problem unlikely over and the past decades whereby inspite of increasing inequality in wealth between different part of the world the problem of spreaded localized war was dominant and the newly issues such as environmental degradation, international debt, religious fundamentalism and other form of competing, collectively identify both the potential the social dislocation turning to worldwide chaos. The concept of poverty is still debatable and this result into various dimension as far as the conceptual complexity has been understood in a series of fault line including individuals or household measures private consumption only or private consumption in plus publicly provided goods, monetary or monetary plus non-monetary components of poverty, snapshots or timeline, actual or potential poverty, stocks or flow measures of poverty, in put or output measures, absolute or relative poverty. The world bank target of reducing by one-half the portion of people on extreme poverty by 2015 requires the criterion for deciding if an individual or household is poor, it does this in economic term by measuring the persons income and establishing poverty line which represent an income level below which a person is held to be in extreme poverty (Allen etal, 2004) Poverty means lack of development while development implies moving toward getting rid of poverty...
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...analysis of the data - GDP growth: recessions and cycles. GDP Growth: Recessions and Cycles Figure 1 - US Real GDP 1930 – 2014 with 2009 as the Base Year Source: (Shiller, 2015); (Federal Reserve Bank of St. Louis, 2015) Figure 1 above shows the real Gross Domestic product (GDP) of the United States for the years 1930 to 2014. Real GDP is essential and important as it shows the general soundness of the economy. Thus, when real GDP is high it means other macroeconomic factors such as employment and economic growth are positive and vice versa. This is because real GDP is substantially correlated to these macroeconomic factors. Therefore, the chart above shows that America’s GDP has been growing steadily over the years. This consistent growth has seen to it that America’s real GDP hit a high of 16.16 trillion U.S. dollars up from a low of around 1.06 trillion U.S. dollars in 1930. It is also apparent that the steady growth in the real GDP has led to many significant improvements in the economy and standards of living. Thus, it is evident that the standards of living and other macroeconomic factors are better now than in the mid nineteen hundreds (OpenStax College, 2014). Further, statistical and economic analysis shows that the real GDP of America has an average median and mean of approximately 6.34 and 7.20 trillion dollars respectively (Shiller, 2015). This is caused by the various cyclical changes in the economy. Despite the steady growth in real GDP the U.S. economy...
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...European multinationals in Africa - Why have Chinese companies found the emerging markets of Africa less risky and a more attractive proposition than western multinationals? - MSc BD7 Ping SUI Introduction: As an important global player and the main drive for economical growth, China’s massive investment in Africa has drawn the world’s attention. People can see European multinationals everywhere in Africa in the 80s, while now Chinese companies seem to take over the leading role. For example, in Angola, China helped to build the Angola Benguela railway, which is the longest railway Angola has had so far; in Nigeria, Chinese Telecom companies “Huawei” has a dominating presence both in fixed and wireless services by taking more than 90% of the market share. Not only can you find commodities made in China everywhere, but Chinese companies now build the infrastructures in many African countries too. On the contrary, the presence of European multinationals is not as strong as the Chinese ones: the amount of the funds flowing from Europe to Africa has decreased from 70% to 17% since the 70s; Western Europe’s share of overall international trade with Africa has decreased from 51% to 28%, while China has taken the place and become the biggest trading partner Africa has by surpassing America in 2009. Why are European MNCs less and less preset in Africa? What are the difficulties they have encountered? Do Chinese companies have same barriers? Why do the Chinese companies find...
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...believed that while the age of ideology had ended, the world had only reverted to a normal state of affairs characterized by cultural conflict. In his thesis, he argued that the primary axis of conflict in the future will be along cultural and religious lines. As an extension, he posits that the concept of different civilizations, as the highest rank of cultural identity, will become increasingly useful in analyzing the potential for conflict. In the 1993 Foreign Affairs article, Huntington writes: It is my hypothesis that the fundamental source of conflict in this new world will not be primarily ideological or primarily economic. The great divisions among humankind and the dominating source of conflict will be cultural. Nation states will remain the most powerful actors in world affairs, but the principal conflicts of global politics will occur between nations and groups of...
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...three decades, India has made good progress on the human development index (HDI), says the Human Development Report 2013, released by the United Nations Development Programme (UNDP). However, India’s rank out of 187 countries is no better than last year’s. With a HDI value of 0.554 and a rank of 136 among 187 countries, which it shares with Equatorial Guinea, India is placed in the “medium development” category. There has been steady improvement in its HDI value, which was 0.345 in 1980. In 1950, Brazil, China and India together represented 10 per cent of the world economy, while the six traditional economic leaders of the North accounted for more than half. According to projections in the report, by 2050, Brazil, China and India will together account for 40 per cent of global output, far surpassing the projected combined production of today’s Group of Seven bloc. | | | HDI is a composite statistic of life expectancy, education, and income indices used to rank countries in four tiers of human development. Since 2011, the UNDP report has included an inequality adjusted HDI, also known as IHDI, which attempts to include the effects of inequality on human development. The IHDI for India this year is 0.392. High gender inequality The country fails miserably on the front of gender equality. On the gender equality index, with a value of 0.610, India has one of the worst indicators in the medium human development category. For example, the country has only 10.9 per cent...
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...assets, exports and technological development. The Programme of Action of the Least Developed Countries for the Decade 2001-2010 adopted at the Third United Nations Conference of the Least Developed Countries in 2001 in Brussels stated that foreign direct investment (FDI) was an important source of capital formation, know-how, employment generation and trade opportunities for LDCs and called for accelerating FDI inflows into these countries. Since 2001, both LDC governments and their development partners have indeed pursued proactive FDI promotion policies. Although there was an abrupt interruption of the secular trend in 2009, FDI flows to LDCs grew at an annual rate of 15 per cent during 2001-2010 as a whole to reach an estimated $24 billion by 2010, compared with $7.1 billion in 2001, and their share in global FDI flows rose from 0.9 per cent to over 2 per cent. The Brussels Declaration contained 30 international development goals for LDCs, including the attainment of an investment to GDP ratio of 25 per cent and an annual GDP growth rate of at least 7 per cent in order to achieve sustainable development and poverty reduction in LDCs. The Brussels goal of 7 per cent growth is being achieved by LDCs as a group and by 15 LDCs individually (UNCTAD, 2010, p 5).1 However this improved performance has been the result of an exceptional boom in international commodity prices and was not broad-based across LDCs. Furthermore, their per capita GDP growth is modest and is lagging behind...
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