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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.


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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“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 scarcity? pls help
Mikateko Reply
what is distribution
umar Reply
1.what is distribution? 2.what are factors affecting distribution? 3.releat what you are writing in the contest of economics and Nigeria situation
what is demand
Obianyido Reply
The market for you In Ilorin has the following demand and supply equation Qd + 5p =9520 Qs =2.5p - 125 a) determine the equation price and quantity b) Explain the situation when the market price is below the equlibrum price
Rasheee Reply
What is scale of preference
Richmond Reply
Pls what is scale of preference
scale of preference is a arrangement of individual wants in order of priority
the arrangement of people want inoder of demand
explain whether decisions in microeconomics involve an opportunity cost
Sonali Reply
What is primary activity
Yeboah Reply
indigenization is the dominance or influence of people native in a particular place or
what's indigenization?
Enoch Reply
What is economics?
Penuel Reply
economics is a social science which studies of human behaviour as a relationship between end and scores which have antanetuve use
economics is the study of complicated tables and chart, statistics and numbers but more specifically it is the study of what constitute human rational behavior in endeavor to fulfill human needs and want
what are the five laws of demand
Uleme Reply
the ppc curve slopes down due to Central problem of economy.......
what is economic by James Stewart
what is economic
Okechukwu Reply
Economics is a science of wealth
what is economic and what is the definition
economic is science and arts both........
to me is a science which study human behavior as a relationship between ends and scare which have alternative use
economic is a science which study human and environment
Explain any five limitation to division of labour
Aliyu Reply
size of the market. for example..let's take a look at a barbing saloon. the number of hands needed there isnt up to the one needed in a company or production line because the number of people the barbing saloon is serving cant be up to the ones of the company
Answer: The four basic problems of an economy, which arise from the central problem of scarcity of resources are: What to produce?How to produce?For whom to produce?What provisions (if any) are to be made for economic growth?
Yusuf Reply
what is the basic economic problem
Arnold Reply
what is the basic problem
importance of elasticity of demand
Ayuk Reply
what nature is price elasticity
nature of price elasticity
is it de basic economic problem
Answer: The four basic problems of an economy, which arise from the central problem of scarcity of resources are: What to produce?How to produce?For whom to produce?What provisions (if any) are to be made for economic growth?
All teachers economic development

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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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