ECON 6280 Study Guide - Midterm Guide: Early Modern Europe, Great Divergence, Structural Adjustment
Document Summary
Great divergence the point at which some countries developed much faster than others: renaissance, early modern europe, age of enlightenment, industrial revolution. Modern economic growth green revolution, industrial revolution, service revolution. Subsistence level production is mainly for personal consumption and standard of living yields little more than basic necessities of life: food, shelter, clothing. Patterns of long-term development: transition from rural-based economy to urban-based manufacturing and service economy, investing in the private sector and good governance (just as the structural adjustment programs emphasized) Developing country according to: world bank: gni/capita (low < , lower middle ~,855, upper middle ~,906, high > ,907, undp: nhdi to rank very high, high, med, low human development. We live in a diverging world (poor begets poorer and inequalities grow). Only convergence among the group of developed countries. Comparative advantage countries specialize in the export of commodities in which they have a relative costs advantage (poor countries often specialize in labor. )
