Economic development

World bank (GDP per capita) High income > $12,615 Middle income > $1,035 Low income < $1,035 Income

To take price-level differences into account, the GDP per capita is sometimes measured using a common standard of international prices, such as prices for foodstuffs, rent, haircuts, movie tickets, legal fees etc. This unit of account is called GDP per capita at Purchasing Power Parity. (PPP) GDP per capita at Purchasing Power Parity

The richer parts of the world tend to be more urban; the poorer parts of the world tend to be more rural. The Americas are very highly urbanized societies, with generally 80% or more of the population living in urban areas. Tropical Africa is still quite rural, with around 25% - 35% of the population living in urban areas Urban/Rural Divide

All future population growth on the planet is urban population growth. The proportion of the world living in urban areas is going to rise from around 53% in 2013 to around 60% by 2030 and 67% by Prosperous, healthy, and resilient cities are going to be a core challenge of sustainable development. Future

The Gini coefficient varies between 0.0 and 1.0, with 0.0 meaning complete equality of income (every person or household has the same income), and 1.0 signifying complete inequality (all income is owned by one person or household, with all the rest having no income). Income inequality within countries

History – Slaves, indigenous populations. Access to education Urban-rural divide Discrimination Government policies – favored insiders Reasons for inequality

Human Development Index HDI It uses the logarithm of income per capita. Using the logarithm, each higher level of income boosts the HDI by a smaller increment. The HDI also uses indicators of educational attainment, such as mean and expected years of schooling, and indicators of health, e.g. life expectancy Measuring wellbeing

27 th in GDP per capita 12 th in the HDI Kuwait is 3 rd in GDP per capita and 54 th in the HDI South Korea

World happiness report

Industrial revolution – divergence Imperialism – divergence End of Imperialism after World War 2 – convergence Technological developments – convergence Economic reforms – convergence e.g. China now $10,000 GDP per person. Convergence or divergence?

Why do some countries stay poor?

Geography – Temperate zones or costal zones developed faster. Disease areas. Imperialism Clinical economics

The modern economist - Instead of offering one simplistic diagnosis (“stop your corruption”), one prescription (“cut government spending”), or one referral (“go the IMF for treatment”), the effective development practitioner should make a diagnosis that is accurate for the conditions, history, geography, culture, and economic structure of the country in question. Clinical economics

1.Poverty trap e.g. Africa 2.Bad economic policies 3.Financial insolvency of government. 4.Physical geography e.g. Haiti 5.Poor governance 6.Cultural barriers 7.Geopolitics e.g. Afghanistan Poverty Checklist

Geography

Landlocked – Build roads, internet and relations Water stressed - Irrigation Heavy disease burden – Public health Natural Hazards – Detection and preparation Lack of fossil fuels – energy efficiency and renewable energy Policy

Culture

Pisa Education rankings

On list (2) bad policies; (3) financial insolvency; (5) poor governance; and (7) adverse geopolitics. Role of politics

Role of government in Infrastructure development e.g. China Health, education and social services Rule of law e.g. deregulation of finance.

Corruption perceptions index

Sub – Saharan Africa Landlocked countries e.g. Afganisatan, Nepal, Mongolia, Laos Countries still in poverty