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Watch this video on the complexities of providing economic aid in Africa.

Key concepts and summary

The fundamentals of growth are the same in every country: improvements in human capital, physical capital, and technology interacting in a market-oriented economy. Countries that are high-income tend to focus on developing and using new technology. Countries that are middle-income focus on increasing human capital and becoming more connected to technology and global markets. They have charted unconventional paths by relying more on state-led support rather than relying solely on markets. Low-income, economically-challenged countries have many health and human development needs, but they are also challenged by the lack of investment and foreign aid to develop infrastructure like roads. There are some bright spots when it comes to financial development and mobile communications, which suggest that low-income countries can become technology leaders in their own right, but it is too early to claim victory. These countries must do more to connect to the rest of the global economy and find the technologies that work best for them.

Problems

Use the Rule of 72 to estimate how long it will take for India, Spain, and South Africa to double their standards of living.

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Using the research skills you have acquired, retrieve the following data from The World Bank database (http://databank.worldbank.org/data/home.aspx) for India, Spain, and South Africa for 2008–2013, if available:

  • Telephone lines
  • Mobile cellular subscriptions
  • Secure Internet servers (per one million people)
  • Electricity production (kWh)

Prepare a chart that compares these three countries. Describe the key differences between the countries.

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References

“Shinzo Abe’s Government Looks Likely to Disappoint on Fiscal Consolidation.” The Economist , May 4, 2013. http://www.economist.com/news/finance-and-economics/21577080-shinzo-abes-government-looks-likely-disappoint-fiscal-consolidation-dont.

Banerjee, Abhijit V., and Esther Duflo. Poor Economics . “About the Book: Overview.” http://pooreconomics.com/about-book.

CARE International. “About Us.” Accessed January 14, 2014. http://www.care-international.org/about-us.aspx.

Central Intelligence Agency. “The World Factbook: Africa, Burundi.” Last modified November 12, 2013. https://www.cia.gov/library/publications/the-world-factbook/geos/by.html.

Central Intelligence Agency. “The World Factbook: Africa, Democratic Republic of the Congo.” Last modified November 12, 2013. https://www.cia.gov/library/publications/the-world-factbook/geos/cg.html.

Easterly, William. The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good . Penguin Group (USA), 2006.

Goel, Vindu. “Facebook Leads an Effort to Lower Barriers to Internet Access,” The New York Times. Last modified August 20, 2013.

Google. “Project Loon.” http://www.google.com/loon/.

GOV.UK. “Department for International Development.” https://www.gov.uk/government/organisations/department-for-international-development.

The World Bank. “Millennium Development Goals.” http://www.worldbank.org/mdgs/.

Todaro, Michael P., and Stephen C Smith. Economic Development (11 th Edition) . Boston, MA: Addison-Wesley: Pearson, 2011, chap. 3.

Vercillo, Siera. “The Failures of Canadian Foreign Aid: Tied, Mismanaged and Uncoordinated.” The Attaché Journal of International Affairs . (2010). http://theattachejia.files.wordpress.com/2013/10/the-attache-2010-issue.pdf.

Questions & Answers

what is elasticity of demand?
Rita Reply
hello
Osanday
hi
SHERO
Causes of economic growth
pierre Reply
What is elasticity of demand
pierre
What are the causes of economic growth
pierre
economic growth, establishment of industry, encourage of investor's, farm productivities, creation of institutions, construction of good road etc
Oyewale
elasticity of demand can be said to be the responsiveness of demand to a change in prices
fateemah
impact of collusion in the economy referring to inefficiencies illustrated by means of graph
nondumiso Reply
The Factor price will determine the choice of techniques to produce.Expantiate
dajan
what is elasticity of demand?
Etta Reply
state and explain two types of demand
Etta
Institution involved in money market
Gande Reply
what is Economics
Kwame Reply
Economic is the study of scarcity
Kolade
Economics is the study of a lot of things. It is split up into two areas of study, Microeconomics and Macroeconomics. Microeconomics is the study of an individual's choices in the economy and Macroeconomics is the study of the economy as a whole.
The
Economics is a science that studies human scarcity
Agnes
What is Equilibrium price?
Agnes
Equilibrium is the market clearing price. The point at which quantity demanded equals quantity supplied. The point at which the supply and demand curves intersect.
The
Equilibrium price*
The
why is economics important
Derrick Reply
What will you do as a consumer if you are not at equilibrium?
chukwu Reply
am new I will like to know about the graph relationship
Gloria Reply
comment on WTO principle on trading system. trade without discrimination
Omben Reply
optimize z=f(x,y)=6x²-9x-3xy-7y+5y²
Alex Reply
What is an indifference curve?
layla Reply
different levels of utilities of a person in a given set of bundles of goods
RAM
identify and quantify five social costs and social benefits of building a school
Mokgobo Reply
identify and quantity five social costs and social benefits of building a hospital
Mokgobo
short run vs long run
Jean
state the law of diminishing return?
Ibrahim
The Law of Diminishing (Marginal) Returns simply states that at some point in time a business/operation/etc.'s increased productivity will begin to decline.
The
For example, if a small pizza shop currently has 3 workers in the kitchen at any given time,and hiring 1 more worker will increase productivity, at some number of workers hired will the business see a decrease in productivity because the capital resources that the pizza shop has is not infinite.
The
Five social benefits of building a hospital, in my opinion and depending on where it's built, would be 1) Increased care for neighboring residents, 2) Potential jobs for individuals, 3) May decrease the travel time residents need to endure in order to reach the nearest hospital
The
4) May create work-study programs for individuals who aspire to be future Doctors, Nurses, Physicians, etc. 5) Assuming there are local pharmaceutical businesses nearby, the hospital may decide to purchase supplies local, increasing the business' sales. Thus, generating more income.
The
5 costs of building a hospital would be 1) Increased noise and waste pollution from service vehicles and hospital visitors, 2) May require large amounts of space, possibly jeopardizing nearby animal habitats, 3) May see an increase in traffic and possibly car accidents from frantic individuals
The
racing to see their injured friends, family members, etc. 4) Constructing a hospital and hiring staff is very expensive 5) To use funds, private or public, to finance the construction of a hospital cannot be used to fund any other projects. (The concept of opportunity costs.)
The
what is meant by inteference with the price mechanism operation?
Mugen
We use a Supply and Demand graph to illustrate at what price level will the market for a certain good or service be at equilibrium. If the price for a good or service is set too high, consumers will be less inclined to buy that product Thus, creating a surplus.
The
This surplus will eventually drive the price back down to it's equilibrium point. Similarly, if a price for a good or service is set too low, individuals would be more inclined to buy more of a certain product, creating a shortage. This shortage will cause sellers to drive the price back up to the
The
equilibrium point.
The
is it true that the opportunity cost of unemployed labour is zero?
Wisdom Reply
no
Oigebe
no
Etta
give two forms of collusion
nondumiso Reply
1.Explicit Collusion: Also termed overt collusion, this occurs when two or more firms in the same industry formally agree to control the market .
Gafar
2.Implicit Collusion: Also termed tacit collusion, this occurs when two or more firms in the same industry informally agree to control the market, often through nothing more than interdependent actions. A prime example of implicit collusion is price leadership .
Gafar
explicit collusion: this occurs when two or more firms in the same industry legally agree to control the market
Panashe
implicit collusion this occurs when two or more firms in the same industry illegally agree to control the market
Panashe
what is responsible for investigating cases of collusion
nondumiso
what mean economic as a science
Godwin

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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