Study Guides (390,000)
CA (150,000)
WLU (6,000)
EC (400)
EC207 (10)
Study Guide

EC207 Study Guide - Fall 2019, Comprehensive Midterm Notes - World Bank, United Nations Development Programme, Sub-Saharan Africa


Department
Economics
Course Code
EC207
Professor
Shadab Qaiser
Study Guide
Midterm

This preview shows pages 1-3. to view the full 71 pages of the document.
EC207

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Chapter 1 Introducing Economic Development: A Global Perspective
25 mc x 2
2 sa (needs to be specific, to the point, don’t write story)
Bring pencil and calculator and ids
Develop vs Developing a Country
Compared developed: Canada, USA, Switzerland
Developing: Malawi, Pakistan, Bangladesh
What is Development?
A process of gradual advancement
A process of Growth through a series of progressive changes
A plan or method
A gradual unfolding process by which anything is developed
An act of improving by expanding or enlarging or refining
A process in which something passes by degrees to an advanced stage
What is development?
1. Gradual advancement: gradual change. How? Massive industrialization from agriculture to more industrialize.
What’s the problem with agricultural econ? Always boom and bust depending commodity market, depending on
the weather. If manufacturing and servicing, it’s more stable in economy factor (financial market, bank,
insurance, technology). Income come from more stable econ e.g. services sector. Family size is reduced, women
start to participate in labour market, increase in middle come income, standard of living has increased.
However, obesity introduced because women work. So there’s bad and good thing
2. Plan: increase literacy rate, 5 years plan or method
3. Gradual unfolding process by which any things is developed: need to create housing and other services
4. Modernized plan from agriculture to ind. But ensure people still have access to agriculture products
5. Stages of development from larva int rate small, try to develop entrepreneur, risk taker, export factor,
increase foreign exchange. From larva, pupa, to butterfly
What is Economics?
It is the study of how economy allocates its scarce resources: Economics is the science of Choice
When you use economic principles to study this process of gradual advancement in a developing country, you
are studying Economic Development
The most difficult discipline in Economics to teach and practice
What is economics?
- How econ allocates its limited resources
- Need to make choices
find more resources at oneclass.com
find more resources at oneclass.com

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

What is Development Economics?
It is a field of study devoted to understanding the economic experience of developing countries
A picture: econ development: a combination of development and economics
- Provide access to education to women: multiple benefits
- Women save regularly
- Micro-enterprises additional income
- Entrepreneurial skills enhanced
- Self-employment -provide empowerment
o Grameen Bank by Dr Yaunies: in Bangladesh, a famine there. Only get small loan, to make basket, small
loan, small interest, successful, woman start to contribute, income increases, more deposit.
o Process of econ development to empower Women
o You can develop econ until you empower women since 50% of global population is woman mostly in
developing countries, importance of human. Emporing a woman is empowering a nation
What do you think about a developing Country?
Standard of Living on average is low: Low per capita income, low level of health and nutrition, Low level of
Education, Poverty, Income Inequality, Loss of freedom and social justice
Law of demand: inverse relationship b/w price and q
Market equilibrium: a point where demand = supply
Law of supply: positive relationship b/w price and q
Developing countries,
1st assumption: who control the price? Not good defined price, no free market in developing
countries, need to redefine it’s separate from new classical econ. Need to und under
development. Price signal is not as perfect as new classical econ. Price is important allocate
resources
We always assume information is perfect. 2nd assumption: market clears (demand is not equal
to supply) in under develop market is not clear.
3rd: rationality: we are rational and able to calculate opp cost every time uncertainty
2. poverty: income inequality = inefficiency - rich become rich, create dissatisfaction, social, econ
classes, equal opportunity if not they have problem
3. Philosophy: policy, theory, philosophy; redistribution, money send abroad not going back to
reinvested
4. Dual econ: rapid inds, expand agriculture, bad and good and some challenges
Standard econ development: health care, tech, social indicator, social safeness dowry (abortion), one
child policy (woman vs man) missing woman mystery - disturbed ration of male and female
Y= f (K,L,H, N)) the return is greater when we invest in human capital rather than physical. N natural
resources, not necessary. H human capital
Environment it’s expensive, put a break on their econ, impose by the develop econ
Financial market is imp we can borrow; higher eq for rich and low eq for poor
1. Level of income: in Canada per capita $50,000 compared to Pakistan, Liberia
2. Health and education: basic h & e
3. Poverty and inequality: in develop countries poverty are less
4. Access to technology: in develop countries access are available and deeply rooted (find cure for disease,
immunization, innovation); developing supervision (cellphone, communication but not to basic)
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

5. Employment: more employment opportunities in developed.
6. Institution: e.g. central bank, tax policy, schooling system (access to basic human rights); in developing not well
specified. Why? When colonize, steal and run policy adopted, did not develop in institution
7. Infrastructure: e.g. road; in developed well develop
What is development economics?
- It is a field of study devoted to understanding the economic experience of developing countries
- High population: low per capita income, low level of education, poverty, income inequality, loss of freedom and
social justice, minority is discriminated (based on color, gender)
- How to transfer these countries to develop, higher equilibrium, we as the next policy maker
What do you think of economic development?
Economic Development Means bringing change the life of those people from low level to high levels of
development
- Subsistence economic: consume whatever you produce
- Access to basics: health, clean water, food is not available in developing countries, they don’t have a chance to 3
meals a day
- Access to sanitation, food, health, nutrition adequately food
- Economic Development Means bringing change the life of those people from low level to high levels of
development
Picture: what people eat around the world
- Average in US: pizza etc. Protein, carbohydrate basic
- Developing Sudan: average weekly food, not lots of meat, beans, fruit
- Ecuador: fruits, vegetables
Formal Definitions of Development Economics
Development Economics analyses the Economic structure and transformation of developing countries
Development occurs with the reduction and elimination of poverty, inequality and unemployment within a
growing economy (Dudley Seers (1969): Widely accepted definition of Development Economics
It is called Development Economics because it means to improve the quality of life
Common goal:
1. To reduce poverty and to increase their income levels
o In 1950, rapid industrialization: a miracle to increase per capita income, used money in few hands (they
don’t want to hear about income inequality, develop indus. Based.)
o Popular econ theory: you increase income, although income ineq. Increases doesn’t matter
x- axis: income equality y-axis: y (income)
graph: Kuznet Hypothesis
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version