I'm always sightly dubious about statistics and information represented by campaign organisations - I'm left with the reservation that information can presented in any way that you want to prove whatever point that you are trying to make (wasn't it an economist who came up with the phrase 'lies, damned lies and statistics'?). So this fascinating report from an organisation called 'Vision of Humanity' needs to be looked at with an open mind.
However, if you take it at face value, it offers some really interesting information.read more...»
A newly constructed Social Progress Index has been unveiled for the first time with the hope that over time, it might become as widely quoted and recognised as the Global Competitiveness Index as a benchmark of progress made by individual countries in achieving sustainable, balanced and inclusive growth and development. In the 2013 rankings, Sweden comes first and the United Kingdom is second.read more...»
New figures from the OECD find that overseas development aid fell by 4% in real terms in 2012, following a 2% fall in 2011. Aid payments have dropped in large party because many governments of developed countries are embroiled in fiscal austerity and choosing to cut aid as a result. The OECD data shows too that there is also a shift in aid allocations away from the poorest countries and towards middle-income countries.
Oxfam senior researcher and former co-author of the UN's annual Human Development Report Kate Raworth visits the RSA in London to explain 'doughnut economics' -- the bold new theory that is sweeping the development world. A really clear seventeen minute video covering some of the key environment challenges that threaten sustainable growth and a call to make central to the debate the protection of natural capital and social capital.
Schools and College up and down the country are preparing for all sorts of different activities for the Comic Relief Red Nose Day this Friday (15th March). Are you doing anything with your class?
Here is a ready-made Powerpoint game to run for approximately 20 to 25 minutes in your class this Friday. Whilst being a fun, team-based challenge, the multi-choice questions are all about facts and figures related to the causes that Comic Relief are attempting to support. As such, the information contained within the game should prove a useful stimulus for discussion within your class about the causes of poverty in Africa, as well as alcohol-abuse and other social issues within the UK. It could also prove a useful tool with discussing why these problems exist and what government solutions could be implemented (as well as asking why they haven't already been put in place!).
Click on this link to go to the Powerpoint file that contains the game.read more...»
The economist argues that the era of fast-rising world population is over - this video looks at the momentum shift brought about by a trend fall in the fertility rateread more...»
The Middle-Income Trap has become a popular and much quoted concept in development economics. Much discussion on the policies and strategies to lower the risks of growth slowdowns before a country has achieved high income status. But how relevant is the middle income trap? The absence of a clear definition of the idea makes it difficult to measure, this article from the Economist has a go and is highly relevant for students taking courses in development economics, especially EdExcel Unit 4.
Peter Mandelson famously said that he was ‘intensely relaxed about people getting filthy rich’. As was the case with many aspects of New Labour, he was working firmly in the Leninist intellectual tradition. Some 20 years earlier, the then leader of the Chinese Communist Party, Deng Xiaoping, stated that ‘to get rich is glorious’.
The Chinese have certainly put the philosophy into practice. An intriguing article in the Wall Street Journal at the end of last year by James Areddy and James Grimaldi, described the deep intermingling of China’s richest men with the Communist Party. For example, Liang Wengen, who owns a major construction equipment making firm and whose personal wealth is estimated at $7.3 billion – billion! – is a member of the key political body, the Communist Party Congress. Overall, the elite political institutions in China have no fewer than 160 individual billionaires as members.read more...»
It has suddenly become fashionable to be concerned about China’s growth rate slowing down. This is not a matter of a short-run cyclical downturn, with normal service being resumed shortly as the economy roars ahead once more. It is a worry that there will be a permanent slowdown by the end of this decade. Instead of annual growth rates around 10 per cent and even more, the Chinese economy will settle down to the much more sedate rates seen in the West in the 1950s and 1960s in the range 3 to 5 per cent.
Like many teachers, I'm firmly of the belief that money is not the root of happiness. I have to think like that - otherwise how do I argue with my old university friends who went to join the big banks that there’s more to life than big cars and foreign holiday homes ("Come and join us, Jon," they used to say to me, "you can set your own Libor rate and everything" ). It's important that we remind the 'those-who-can't-do' brigade that teaching is a life-style. It's a vocation. A calling.
Well, according to research by US academics Daniel Sacks, Betsey Stevenson and Justin Wolfers, the evidence suggests that wealth is a determining factor in happiness after all. Apparently, the data shows that there are no upper limits to happiness with regards to money – yes, the increase in happiness slows down but still rises.
Quick, somebody tell Victoria Beckham before David gives away all of his cash to the Paris children.read more...»
Mark Austen writes on this essay title: Evaluate the impact that the micro-finance and Fair
Trade movements can have in supporting development in some of the world’s
Robert Nutter explains that, over recent years, the fear that the minimum wage would cause increased unemployment has not materialised, although since the start of the current economic crisis employers have expressed some concerns that employment may be affected in low paid jobs. Another concern has been the belief that a national minimum wage is inappropriate for an economy where costs and labour market conditions vary significantly between regions. The national minimum wage may perhaps provide a living wage in North-East England but certainly not in London.read more...»
Does aid help or hinder economic growth and development? This is the subject of a fierce debate in the development economics literature
Gross domestic product (GDP) is the total value of output in an economy and is used to measure change in economic activity
GDP for different countries is usually measured in a common currency – normally we use the US dollar. But there are two problems in using exchange rates to measure GDP
An updated glossary of key terms for AS macroread more...»
Liz Veal (Editor of econoMAX) writes: Here in the UK we take for granted our education – my daughters have the same educational opportunities as my son; my sisters and I had the same chances as my brother. Education for all, irrespective of gender, is highly valued in our society and we are well-aware of the private and external benefits of education. In economics, we teach that the market would fail to provide enough education as it would be under-consumed because of the extra benefits to society that private individuals do not appreciate. This information failure is overcome with public sector provision of education, compulsory by law until aged 16.read more...»
My AS macroeconomics students this week are researching the topical issue of a living wage and the possible macroeconomic effects. The title of the assignment is:
"The introduction of a living wage in Britain to supplement a minimum wage will improve the long term performance of the UK economy" Discuss. (20 marks)
I have put together some news articles and videos on this topic using a Pinterest Board. You can find it by clicking here
BBC Newsnight Report on Living Wages - July 2012 - click here
Here are some links connected to the news that the United Kingdom is drawing to a close financial aid to India by the year 2015. The focus will shift from aid to trade. Bilateral trade between the countries in 2010 was worth £10 bn. The countries have set a target of £20 bn by 2015. We also link to a new Inside Story programme from Al Jaxzeerah on the continuing debate over the effectiveness of and future of overseas aid in the world economy.read more...»
You may have been too busy to notice but today has been National Stress Awareness Day. This comes just a few days after Ed Milliband's speech about the taboo of Mental Health and how it impacts upon people's lives. If you haven't done so recently, do check out the World Health Organisation 's website which has lots of data on the prevalence of mental health issues around the world with the most startling facts being that 1 in 4 people around the world suffer from mental health issues at some point in their lifetime affecting as many as 450 million people.
And yet, when was the last time you used this as an example of labour market failure or poor economic performance?read more...»
Here is a streamed revision presentation on aspects of micro finance and fair trade as part of a course on development economics.read more...»
Jonny Clark has beaten me to it with his blog about today's news about the Living Wage - there is a rich seam of resources here for issues for study around poverty and inequality. The concept has high level support - hailed by Boris Johnson as it is "....not only morally right, but (it)makes good business sense too." and endorsed by Ed Miliband as " A really important idea". I would like to add a trio of items from the BBC website which could add evidence to student analysis - particularly as Nov 4th-10th is designated Living Wage Week , so this could make a timely topic on the return from half term!
You might see a raft of stories out today regarding the latest report from KPMG on the number of people within the UK who would appear to be earning below the identified 'Living Wage' in the UK. The rate of this living wage is higher than the statutory minimum wage (£7.30 per hour for those outside of London compared to standard £6.19 per hour n.m.w.) and attempts to set a rate at which people can earn enough to pay for the basic cost of living. The report states that approximately 1 in 5 people in the UK earn below the Living Wage (with the situation varying around the UK) and this is an increase on the number who were below the threshold during the last audit. The Independent includes the image above and gives a brief (if slightly politicised) summary. The Living Wage and National Minimum wage are good indicators for students giving responses on relative poverty. A good exercise might be to ask students why there is a difference between the two standards or use the information and graphics here to determine why there are wage differentials for the jobs outlined above. If you want to give your students some extended work you might like to get them to read the document below which attempts to explain and give rationales with regards to the calculation of the Living Wage or get them to have a look at the Living Wage website which shows what the campaign is trying to achieve.
Today I went to a fascinating and very thought-provoking lecture from Kate Raworth, a Senior Researcher for Oxfam GB. She introduced the audience to the idea of doughnut economics, and certainly convinced me about the usefulness of this very elegant and accessible development economics theory. I can't wait to share it with my classes when we're discussing sustainable development next year!
I have uploaded onto slide share a revised short classroom presentation on the economics of overseas aid as part of our study of economic development.
When teaching economic growth and inequality as part of our A2 macro course, I used these news clips to support the lesson and discussion.read more...»
This article in the BBC about the 21st anniversary of the launch of the Big Issue newspaper acts as a timely reminder that we can find our very own examples of absolute as well as relative poverty in the UK.read more...»
Explain and discuss four indicators of progress made by India in achieving her main development goals.
Yesterday I took some Oundelians to attend the Public Policy lecture at the LSE, entitled Policy Challenges for Growth in Africa and South Asia. It was sponsored by the IGC – the International Growth Centre: http://www.theigc.org/ - as part of the LSE Growth Week http://www.theigc.org/events/growth-week-2012 .read more...»
An autumnal hat tip to Mo Tanweer for providing this really useful selection of economic development related links
Globalisation has brought about a sustained rise in the value of global production, trade and wealth and has helped to lift hundreds of millions of people out of extreme poverty. But one of the paradoxes of globalisation is that, despite bringing about a degree of convergence in incomes between countries, the scale of relative poverty in income and wealth within nations has increased in many cases.
Video: Joseph Stiglitz on rising income inequality in the United States (December 2012)read more...»