ADM 3318 Lecture Notes - Lecture 14: Next Eleven, Civets, Emerging Markets
Developing Countries
Emerging countries, BRICS, Blocs
Interest on account of 'trade' and 'business'
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Some groupings
Emerging markets
N11 - Next eleven - Bangladesh, Mexico, South Korea,
Vietnam, Pakistan, Egypt, Philippines, Nigeria, Indonesia,
Turkey, Iran
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EIU's CIVETS
Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa
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MINT
Mexico, Indonesia, Nigeria, and Turkey
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Some attributes
Demography and population profile, market size, potential for
growth, resource base
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Some issues
System-governance and enforcement, HDI, transparency,
corruption, stability
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When does an economy become attractive - the sweet spot
Ernst and Young - GDP per capital great than $6,000 USD
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The World Bank used a yardstick to formulate its policies and evaluate
The middle class is divided into
Lower middle and upper middle
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$2.8 USD to $11 USD per day per capita
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Different countries have different 'sweet spots'
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Developing countries
Factors to look for
Life expectancy, mortality rate
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Education
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Money, income
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Features of LDC's
Low incomes, averaged over a 3-year period
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Human resource weaknesses - based upon indications of nutrition,
health, education levels and literacy
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Economic vulnerability - share of manufacturing in the GDP per capita,
energy consumption, and population displaced by natural disasters
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Ongoing and widespread conflict
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Extensive political corruption
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Lack of political and social stability
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A form of government that is authoritarian in nature, such as a
dictatorship
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Quality of life
People live in poverty in all LDCs
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Large majority of the population has an income too small to
meet their basic needs
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In 2005, an estimated that 277 million people were living on <$1
per day
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In some cases incidence of poverty has been failing but the
actual number has been increasing over the long term
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Still dependent on external finance
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In 2006 net aid payments reached $28 billion
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Debt
From the 1970s developing countries found themselves in a
debt crisis
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The problems can be attributed to
Increasing oil prices□
Higher interest rates□
Falling export prices□
Problems of domestic economic management□
No hopes of the debts being repaid and heavy interest
accumulating
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By OCT. 2007, 17 LDCs were receiving debt relief under
the HIPC initiative (Heavily Indebted Poor Countries)
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The path to development?
The Rostow Model
One of the first and most simple methods to account for
economic growth
It was put forward by Walt Whitman Rostow in 1960□
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Based on a study of 15 countries, mainly Europe
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He suggested all countries had the potential to break the cycle
of poverty and develop through the five linear steps
As the time increase, so does the level of
development
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Traditional society □
Preconditions for Take-off
Cash, basic infrastructure, more mechanised
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Take-off□
Drive to maturity□
High mass consumption □
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Class 14 - Feb. 28th
Wednesday, February 28, 2018
08:52
Document Summary
N11 - next eleven - bangladesh, mexico, south korea, Demography and population profile, market size, potential for growth, resource base. When does an economy become attractive - the sweet spot. Ernst and young - gdp per capital great than ,000 usd. The world bank used a yardstick to formulate its policies and evaluate. . 8 usd to usd per day per capita. Human resource weaknesses - based upon indications of nutrition, health, education levels and literacy. Economic vulnerability - share of manufacturing in the gdp per capita, energy consumption, and population displaced by natural disasters. A form of government that is authoritarian in nature, such as a dictatorship. Large majority of the population has an income too small to meet their basic needs. In 2005, an estimated that 277 million people were living on < per day. In some cases incidence of poverty has been failing but the actual number has been increasing over the long term.