Human Development Report 2009


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Human Development Report 2009.

    • Human Development Report 2009.
    • http://hdr.undp.org/en/media/HDR_2009_EN_Overview.pdf
    • http://hdr.undp.org/en/media/HDR_2009_EN_Indicators.pdf
    • Poverty Facts and Stats http://www.globalissues.org/article/26/poverty-facts-and-stats


Before 1989 Today

  • Before 1989 Today

  • Developed market economies Developed market economies („first world”)

  • Socialist economies Countries in transition („second world”)

  • NICs

  • Developing countries Oil exporting countries („third world”) Middle income countries

  • Low income countries

  • LDCs



  • Successful path of industrialisation – via export of manufactured goods

  • HPAE (High Performing Asian Economies) or NIC (Newly Industrialised Countries:

  • 1. Hong-Kong, Taiwan, Singapour, South Korea



2. Malaysia, Indonesia, Thailand, Philippines

  • 2. Malaysia, Indonesia, Thailand, Philippines

  • 3. China, Vietnam

  • High growth rates, open to international trade

  • Other factors:



Static and dynamic indicators;

    • Static and dynamic indicators;
    • Economic performance;
    • Structure;
    • External trade;
    • Infrastructure;
    • Society, demography, health care;
    • Competitiveness.


„Human development index” (UNCTAD): composition of three basic indicators

  • „Human development index” (UNCTAD): composition of three basic indicators

    • GNI (PPP);
    • Life expectancy at birth;
    • Adult literacy rate, combined gross enrolment ratio.










Lorenz curve

  • Lorenz curve

    • Percentage of households is plotted on the x-axis, the percentage of income on the y-axis.
    • Every point on the Lorenz curve represents a statement like "the bottom 20% of all households have 10% of the total income."
    • Perfectly equal income distribution would be one in which every person has the same income. In this case, the bottom "N"% of society would always have "N"% of the income. This can be depicted by the straight line "y" = "x"; called the "line of perfect equality.
    • By contrast, a perfectly unequal distribution would be one in which one person has all the income and everyone else has none. In that case, the curve would be at "y" = 0 for all "x" < 100%, and "y" = 100% when "x" = 100%. This curve is called the "line of perfect inequality


Gini coefficient:

  • Gini coefficient:

    • It is the area between the line of perfect equality and the observed Lorenz curve, as a percentage of the area between the line of perfect equality and the line of perfect inequality.
    • The higher the coefficient, the more unequal the distribution is.


Demography;

    • Demography;
    • Dual economic structure;
    • Problems with agriculture, worsening terms of trade;
    • Mistakes in economic policy.


The division of a single economy into two sectors that appear to be at a very different levels of development (e.g. a modern, capital-intensive, high wage industrial sector and a very poor traditional agricultural sector) is referred to as economic dualism.

  • The division of a single economy into two sectors that appear to be at a very different levels of development (e.g. a modern, capital-intensive, high wage industrial sector and a very poor traditional agricultural sector) is referred to as economic dualism.



80-85% of world population live in less developed countries and gets less than 20% of total income;

    • 80-85% of world population live in less developed countries and gets less than 20% of total income;
    • Ratio between average incomes in most developed and least developed countries has increased in the last 200 years: 1820 – 3:1; 1913 – 11:1; 1950 – 35:1; 1970 – 44:1; 2002 – 82:1;
    • 1,3 billion people live on less than 1 dollar per day.


More than 800 million people are threatened continuously by hunger;

    • More than 800 million people are threatened continuously by hunger;
    • 35% world population (above 18) is illiterate;
    • Migration due to wars and political abuses;
    • Cumulative process of indebtedness.








Country-level / macroeconomic competitiveness

  • Country-level / macroeconomic competitiveness

  • World economic Forum (WEF):

    • Institutions, policies and factors influencing productivity and growth potential of a given country.


    • Basic requirements:
      • 1. Institutions;
      • 2. Infrastructure;
      • 3. Macroeconomic stability;
      • 4. Health and primary education.


    • Efficiency enhancers:
      • 5. Higher education and training;
      • 6. Goods market efficiency;
      • 7. Labour market efficiency;
      • 8. Financial market sophistication;
      • 9. Technological readiness;
      • 10. Market size.


    • Innovation and sophistication factors:
      • 11. Business sophistication;
      • 12. Innovation.


WEF: Global Competitiveness Report 2009-2010

  • WEF: Global Competitiveness Report 2009-2010

  • 133 countries

  • 110 „hard” (statistical) and „soft” (based on questionnaire) data

  • Global Competitiveness Index, GCI







  • International Institute for Management Development:

  • The IMD World Competitiveness Yearbook (WCY) is the world’s most renowned and comprehensive annual report on the competitiveness of nations, ranking and analyzing how a nation’s environment creates and sustains the competitiveness of enterprises.



    • Economic performance:
    • 1. Domestic economy;
    • 2. International trade;
    • 3. International investment;
    • 4. Employment;
    • 5. Prices.
    • Government efficiency:
    • 6. Public finance;
    • 7. Fiscal policy;
    • 8. Institutional framework;
    • 9. Business legislation;
    • 10. Societal framework.


    • Business efficiency:
    • 11. Productivity;
    • 12. Labour market;
    • 13. Finance;
    • 14. Management practices;
    • 15. Attitudes and values.
    • Infrastructure:
    • 16. Basic infrastructure;
    • 17. Technological infrastructure;
    • 18. Scientific infrastructure;
    • 19. Health and environment;
    • 20. Education.


Krugman :

  • Krugman :

  • International competitiveness today can not be understand at country level, but rather between enterprises.

  • Competitiveness = productivity













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