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The Developing World

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GDP per Capita: Highest

1900 2005

• #1 United Kingdom • #1 Luxembourg

• #2 Norway

• #2 New Zealand

• #3 Iceland

• #3 Australia • #4 Qatar

• #4 United States • #5 Switzerland

• #5 Belgium • #6 Ireland

• #7 Denmark

• #6 Netherlands

• #8 United States

• #7 Switzerland • #9 Sweden

• #8 Germany • #10 Netherlands

• #9 Denmark • # 13 UK

• # 16 Japan

• #10 Austria • # 18 France

• #11 France From Angus Maddison, The World Economy,

OECD, 2001; Nation Master.com

• #23 Japan

GDP per Capita: Lowest (2005)

1. Burundi

2. Ethiopia

3. Congo

4. Liberia

5. Malawi

6. Guinea-Bissau

7. Sierra Leone

8. Eritrea

9. Rwanda

10. Afghanistan

Source: 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)

Group Efforts

• NIEO

• UNCTAD

• Group of 77

• OPEC

East Asian Strategy

1. Japan as the Model

2. Business-Government Partnership

3. Open up the Economy to Foreign Investment

4. Exports!

5. Export Processing Zones

6. 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







Parts

Unfinished imports Export exports

products Processing Finished

Zone

Components products

The Biggest of the

Big Emerging Markets

• China 1978

• Deng Xiaoping

Shanghai, China

Guangzhou, China

Indian Reform 1991

P. V. N. Rao Manmohan Singh

PM 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 Economies

1983-1993 1997-2007

1. China 1. Equatorial Guinea

2. Thailand

3. Botswana

2. Turkmenistan

4. Taiwan 3. Azerbaijan

5. South Korea 4. Myanmar

6. Macau

5. Armenia

7. Chile

8. Singapore 6. Qatar

9. Indonesia 7. China

10. Malaysia 8. Angola

Source: The Economist, Pocket World

in Figures, 2006 and 2010, p. 32- 9. Cambodia

33.

10. Bhutan



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