POL343Y5 Chapter Notes - Chapter 2: Poverty Trap, Sub-Saharan Africa, Openaccess
8 Jun 2014
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Document Summary
Worlds pop 1950, 2. 5 bil to 6. 6 bil, western asia- 1950s, 51mil to 220 mil in 2007, more economic growth to come, because of income per person will rise, though sustained economic growth is rising. This is fueled by globalization- networks of trade, finance, production, technology and migration. Brazil, china, india; achieve market based economic growth based on globalization, they are not only to raise living standards but to narrow the per capita income gap with the rich countries. Future economic convergence- rule of thumb: as the preconditions for convergence are met (countries not stuck in poverty trap). Todays leader us sustains average annual growth in per capita income of 1. 7 percent, with income level around 40,000. The growth of followers depends on the gap in income with the us. At half of the us income, growth will exceed the us rate by. So that the growth will be around 3. 2 percent per year.
