IDST 1000Y Lecture Notes - Lecture 7: Washington Consensus, Neoliberalism, Comparative Advantage

• School: Trent University
• Department: International Development Studies
• Course: IDST 1000Y
• Professor: Karaagac Baris

Document Summary

Industrialization: is it a development imperative? (cid:1) (cid:1) (cid:1) Material well-being we produce manufacturing goods and service activities where as the developing countries focus on agriculture (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1: pattern of employment rich countries services. Poor countries agriculture: patterns of industrial output rich countries heavy and chemical industries, technology and knowledge based industries. Poor countries light industries like textiles, toys and shoes (if at all: pattern of agriculture inputs rich countries capital intensive. Poor countries labour intensive: pattern of demand rich countries domestic demand is high, home market important. Poor countries domestic demand weak, foreign market important. Capital accumulation: increases in the stock of productive assets: Physical (plants, equipment, computer, robots) financial (money) Productivity isn"t everything, but in the long-run it is almost everything" - paul krugman. Productivity is about producing more efficiently in what we do. Produce more with the same, or same with less.