GDP per Capita: Highest1900• #1 United Kingdom• #2 New Zealand• #3 Australia• #4 United States• #5 Belgium• #6 Netherlands• #7 Switzerland • #8 Germany• #9 Denmark• #10 Austria• #11 France • #23 Japan

2005• #1   Luxembourg• #2   Norway• #3   Iceland • #4   Qatar• #5   Switzerland• #6   Ireland • #7   Denmark • #8   United States • #9   Sweden• #10  Netherlands• # 13 UK• # 16 Japan• # 18 FranceFrom Angus Maddison, The World Economy,

OECD, 2001; Nation Master.com

GDP per Capita: Lowest (2005)1. Burundi2. Ethiopia3. Congo4. Liberia5. Malawi6. Guinea-Bissau7. Sierra Leone8. Eritrea9. Rwanda10. AfghanistanSource: The Economist, Pocket World in Figures, 2006, p. 28.

Developing World• South• LDCs• Third World–Latin America–Asia–Africa

Western Hemisphere Colonized(current borders included)

Colonized Africa

Colonized Asia 1910

Middle East Colonized (roughly WWI)

http://www.npr.org/news/specials/mideast/the_west/colonies_map.html

Independence• Latin America (by 1823)•Middle East (after WW I)• Africa and Asia (post-WW II)

Strategies for Development

1. Modernization: Be like the west2. Nationalization: Seize assets of wealthy

nations in a developing nation (related to Dependency)

3. Marxism: Use Soviet Union as a model4. Group Efforts5. East Asian Strategy

1. Modernization : Basic Dilemma

EDCs• North America• Western Europe• Japan• Large middle class• High Tech• Industrial products• High skills• High wages• Cars, chemicals, aerospace,

telecomm, electronics, software

LDCs

• Africa, Asia, Middle east, Latin America

• Primary products• Commodities• Elites -- impoverished• Low skills• Low wages• Bananas, coffee, minerals,

rubber, timber

The Flow of Money

$$$$$$: cars, computers, manufactured goods

$$: bananas, coffee, timber, minerals

EDCs LDCs

2. Nationalization DilemmaGlobal Wealth ranking by GDP per capita (for nations following Nationalization strategies after WW II)

1900 1950 2005

• Argentina 12 12 31• Chile 16 16 53• Mexico 22 27 57• Colombia 25 26 76• Venezuela 27 4 84

(data from: Nation Master.Com: http://www.nationmaster.com/index.php)

3. MarxismClockwise from the top: Statue of Kim Il-sung, North Korean leader from 1948-1994; skulls left by

the Khmer Rouge, in power in Cambodia from 1975-1978; Fidel Castro, dictator of Cuba 1959-?

4. Group Efforts• NIEO• UNCTAD• Group of 77• OPEC

5. East Asian Strategy

1. Japan as the Model2. Business-Government Partnership3. Open up the Economy to Foreign

Investment4. Exports!5. Export Processing Zones6. Building Home Companies

Four Tigers• Hong Kong Singapore

• South Korea Taiwan

Tokyo 1945

Tokyo 50-60 Years later

Seoul, ROK

Singapore

Taipei, Taiwan

Hong Kong, China

Integrating into the World Economy

PartsUnfinished imports exports

products Finished Components products

Export Export ProcessinProcessin

ggZoneZone

The Biggest of the Big Emerging Markets

• China 1978• Deng Xiaoping

Shanghai, China

Guangzhou, China

Indian Reform 1991

P. V. N. Rao Manmohan SinghPM 1991-1996 Min of Finance 91-96

PM 2004-present

China and India and Asian Growth

• China 1.3 billion• India 1.0 billion• 2.6 billion of 7 billion humans; statistically the

largest economic reform program in world history• Add Southeast Asia:• 3.5 billion entering the modern world economy• Tallest Buildings in the world today• The Future

A Long Way to Go

Poverty in India

Fastest Growing Economies1983-1993

1. China2. Thailand3. Botswana4. Taiwan5. South Korea6. Macau7. Chile8. Singapore9. Indonesia10. MalaysiaSource: The Economist, Pocket World

in Figures, 2006 and 2010, p. 32-33.

1997-2007

1. Equatorial Guinea2. Turkmenistan3. Azerbaijan4. Myanmar5. Armenia6. Qatar7. China8. Angola9. Cambodia10. Bhutan