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:

• high saving rates
• rapid improvement in education

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

• 57 countries

• 329 „hard” and „soft” data

• Value: 0-100

• World Competitiveness Score, WCS