GEOG 216 Lecture Notes - Agrarian Reform, Free Trade, Comparative Advantage
23 Nov 2012
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Document Summary
To promote exports (trade liberalization + closer ties w/world economy) A lot of nats starts w/isi + when they had sufficient base for exports they switched (former colonies that started to indusz) Keep flexible market prices (open to international prices) Open up to international prices, supply + demand set by international markets. Exploit comparative advantage ex: agricul products, cheaper labour, external rates. Large labour size/supply (input for manufacturing) that is mostly un-unionized (large population desperately looking for jobs, aka lower wages) State manages agrarian + edu reform (post-wwii, 1960s) Made sure to produce enough to feed own population, so they don"t need to import food. South korea + taiwan, larger nats w/sig agricul sectors before they began exporting. Agrarian reform: large land holdings switched to small farms. When surpluses produced, invested into better agricul tech, improvement of farms or sold to local markets. You will not have capital to invest unless you have a surplus to reinvest.
