POLC38H3 Lecture Notes - The Bottom Billion, Capital Flight, Trade Restriction
Document Summary
Marginalization of the bottom billion in the world economy. Global capital markets are not working for the bottom billion. Half of this is lack of capital inflows, the other half is that their own capital flows out of them. Often due to political instability and poor policies making them unsuitable for investment. Those in the developing countries take their capital outside of it. Fear of retrogression keeps capital out of places that have even turned around; global capital mobility will not develop the bottom billion. The bottom billion have been stuck in four types of traps. Globalization has helped but at the same time as kept some countries in the bottom billion. Globalization effects economies of countries that are developing. In the past 25 years developing countries have broken into global markets. Defining characteristic of developing countries is that they have a lot of unproductive labour.
