For many developing countries tourism is already a major part of their economy and a significant source of income and employment. But there is a fierce debate about the consequences of tourism - what role can tourism play in economic development? Can travel to developing countries do more harm than good?read more...»
The Gini coefficient is a commonly-used measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1: the higher the number, the greater the degree of income inequality.read more...»
Here is a short report on the impact that the widespread uptake of mobile banking is having on Kenyan farmers. Kenya's Mobile banking system M-PESA is widely cited as an example of how mobile money transfer systems can act as a catalyst for growth and development. At least two-thirds of Kenyans use their mobile phones to pay bills, transfer money, pay salaries and now to get loans. The availability of a reliable mobile -payments platform has also spawned a host of mobile phone start-ups helping thousands who don't have bank accounts.read more...»
If you are searching for a vivid example of a country experiencing primary product dependency have a look at this short video report from the Financial Times. The lower middle income west African country is trying to modernise their economy but remains deeply at risk from outside external shocks including over-dependency on a single mineral and terrorist threats. Inequality may be the biggest risk to it's future.read more...»
Paul Collier on Africa Rising
As result of China's growth we have seen a big rise in commodity prices
Consequence for Africa has been a decade of stronger terms of trade
Average sq mile of OECD - $300,000 of known sub soil natural assets in 2000
Average sq mile of Africa - $60,000
As of the Millennium, Africa had discovered a lot less!read more...»
Preferential market access to China is providing an important growth-enhancing outlet for African exporters that find it difficult to break into industrialised countries’ markets. But there remain dangers that current export structures and national capacity constraints may further entrap Africa given its comparative advantage in primary resources and China’s comparative advantage in manufacturing products.read more...»
Removing the barriers to labour market participation that women face in many parts of the world will lead to substantial productivity gains, according to research by Marc Teignier, to be presented at the Royal Economic Society’s 2014 conference.read more...»
The Rwandan economy comes under special focus in 2014 because it is twenty years since the genocide. This blog provides some summary growth and development data and links on Rwanda, a country that is attracting increasing interest from students and teachers as part of their development economics course.read more...»
Europe’s pre-industrial economies provide valuable insights into whether Africa’s recent economic success can be turned into sustained growth. According to research by Professors Stephen Broadberry and Leigh Gardner, to be presented at the Economic History Society’s 2014 annual conference, the European experience suggests that the more important criteria are indicators of institutional quality and structural change.read more...»
I thought it worthwhile sharing my resources which I have been collecting for students (and teachers alike). I have been promoting them on Twitter (@Economics_KSF) through scoop.it but for those of you not on there, the link for the scoop.it boards are here:read more...»
Pub economics often explains the plight of poor countries in terms of the problems posed by corruption. That approach might have some value, and to raise the quality of your analysis of this topic, it’s helpful to say why and how it might arise, and the effects it might have. Rich countries are also vulnerable of course.
The Economist has a really helpful couple of articles on this topic, which it calls ‘crony capitalism’.read more...»
I was delighted to give a talk to A2 economists at Wilson's School in Surrey today covering some aspects of trade and development economics. In particular we looked at the work of Hidalgo and Hausmann and their newly published Index of Economic Complexity. The slides from my talk are streamed below.read more...»
The Atlas of Economic Complexity is a new book (perfect for the coffee table) from Richard Hausmann and Cesar Hidalgo. It maps out the degree of complexity of individual economies around the world and provides a hugely visual and interesting insight into the importance of knowledge in shaping the future prosperity of countries in the global economy. I have put together a 10 question quiz on some of their key results - a useful activity I hope for students interested in the commodity composition of trade of developed and developing countries. Have a go!read more...»
Economics coverage of Africa can be a bit bleak (though perhaps it shouldn't be, with incomes rising rapidly in parts of Africa). There are often bad news stories, particularly in terms of human development indicators. News of economic progress often centres on the exploitation of primary commodities, with all the risks and issues that presents.
If you hope Africa will experience development, you’re likely to want to see sustained and robust economic growth. That, in turn, will require industrialization.read more...»
Here are some links relevant to the June 2014 pre-release case study on economic prospects and challenges for the countries of sub Saharan Africa.
The IMF expects seven of the world’s fastest growing countries during the next five years will be in Sub-Saharan Africa – Congo, Ethiopia, Ghana, Mozambique, Nigeria, Tanzania, and Zambia.read more...»
A new World Bank report looks at the growing scale and scope of welfare safety nets in a number of countries in sub Saharan Africa. We tend to take entitlement and access to welfare provision for granted in high income countries. What contribution can a welfare system make to promoting inclusive growth and development. Here is the World Bank's slideshow and follow this link for their latest research papers on the topic.read more...»
The BBC Africa Report looks at the importance of largely French funded infrastructure projects as a driver of growth and development in the Ivory Coast. But the economy is becoming more open to investors from other countries. Some of this investment may come from Japan - read this article
Related article - focusing on the mining boom in the Ivory Coast - Ivory Coast hopes for golden future as mining sector opened upread more...»
Here is a short video on the challenges and opportunities facing cocoa producers across the world but especially in sub Saharan Africa which accounts for 70% of global production. Supply is struggling to keep pace with rising world demand and there have been some structural declines in production in several countries.
The FT's Emiko Terazono reports from Ghana on how chocolate manufacturers and traders are striving to boost cocoa supplies, which are coming under pressure from climate change and urbanisation amid growing demand for confectionery in emerging markets. Farmers are being encouraged to develop supplementary incomes and invest in sustainable production methods.read more...»
Notes taken from the Marshall Society Economics Conference - this panel session focused on growth and development issues in South Korea and sub Saharan Africaread more...»
Here are some notes taken from a talk given by Peter Coy, Economics Editor for Bloomberg Businessweek, at the Marshall Society Economics Conference in Cambridge in January 2015read more...»
This short you tube clip published by the World Bank looks at some salient facts and figures on the extent of extreme poverty in the world
The extreme poor live on less the US$1.25 a day. Many lack basic sanitation and clean drinking water; they're malnourished and suffer from lack of education. The facts speak volumesread more...»
Here is a selection of development storiesposted in the Guardian global development blog during the last year. Many of them are relevant for students wanting to extend and enrich their awareness for A2 macro papers.
Here is a new series on BBC radio 4 that will excite students and teachers who enjoy tracking the changing centre of gravity in the world economy. Jim O’Neill, former chief economist and head of asset management at Goldman Sachs, presents the flagship four-part series in Radio 4’s focus on the MINT countries – Mexico, Indonesia, Nigeria and Turkey – tipped as the next to assume their places at the high table of economic success. Details of the programme can be found here.
This is a really interesting short video from the World Bank on how a Kenyan entrepreneur is using the concept of vertical farming to grow food and fodder using 80% less water. In the classroom, show the video and get the students to find ten ways in which this innovation can have a development impact - there is so much in this clip!
A Kenyan entrepreneur has adapted Hydroponics, a technique that allows to grow plants without soil, to African climate. The technique that traditionally needs an energy intensive climate control, now allows to grow plants in simple sheds without the use of electricityread more...»
The International Growth Centre (IGC) held their first Africa Growth Forum in Kampala, Uganda in December 2013. All of the papers and presentations from the forum are now available from this link - there is some interesting extension material here for students and teachers looking to enrich their understanding of some of the growth and development dynamics facing the African continent at this crucial time.
Twenty years ago, South Africa had a GDP of $136bn. Today, that has almost tripled to $385bn. Tax receipts have risen from 114bn South African Rand to 814bn Rand, and in the last ten years labour productivity per worker has risen from $8,800 to $25,600. Electricity was available to only 58% of households in 1996, now it is available to 85%. And social grants for welfare which were paid to 2.4mn people in 1994 are now paid to 16.1mn.read more...»
This is an updated revision presentation covering aspects of inequality and economic growth/development - it is designed for Year 13 A2 macro studentsread more...»
This BBC news report is superb background for students who want a mini case study of the potential of mobile technology in improving farm yields and incomes for farmers in developing countries. A 29-year-old developer from Ghana has created a mobile app that he hopes will transform the livelihoods of farmers and help address food shortagesread more...»
Tech City news focuses here on seven business start-ups geared firmly to being innovative in addressing basic problems facing millions of the world's poorest people in low-income countries. An ideal read and resource for students wanting some examples of how entrepreneurship and innovation can be used in supporting basic development and enterprise.read more...»
Here is an updated revision presentation covering price volatility in commodity markets and the economics of buffer stock "price stabilisation" schemes. designed for unit 1 micro courseread more...»
Suyash Raj Bhandari considers some of the ways in which the rapid expansion and adoption of mobile technology in Africa can act as a spur to growth and development on the continent. We link also to some useful background video resources on this issue.read more...»
Suyash Raj Bhandari profiles the Founder of the Grameen Bank, Mohammad Yunusread more...»
In a recent assignment, A2 students were asked to write a 500 word profile on each of two development economists of their choice and to capture their key ideas and connect to one or more current issues in development. I will be adding some of their responses to the economics blog. Here Ben Evans focuses on the work of Daron Acemogluread more...»
Here is an updated streamed presentation on overseas aid and economic development (updated October 2013)read more...»
Here is an updated revision presentation covering aspects of the growth of microfinance and the role that it can play in driving development. We have also linked to some suggestions for background reading on the microfinance issue.read more...»
Growth elasticity of poverty is a measure of elasticity (responsiveness) that calculates how much poverty falls for each percentage point in economic growth. According to a recent estimate from World Bank development economists Luc Christiaensen, Punam Chuhan-Pole and Aly Sanoh, that elasticity was about 2.0 in the developing world as a whole (excluding China) during the 2000s, but only 0.7 in Africa. In other words, the rapid growth achieved in many African countries over the last decade or more has not had as much impact on inequality as in other regions.read more...»
The nature of A2 economics specifications is that they lag interesting and important developments in the subject much of which are directly relevant to what students are taught in the classroom. The role of complexity in understanding how and why countries grow is one such example and I have blogged before about the work of Cesar Hidalgo and Richard Hausmann through the Observatory of Economic Complexity - see "Teaching Trade in a Different Way"
It is a joy to find the Financial Times covering some of their ideas in a brace of short videos as part of the John Authers Daily Note. You can always find these clips on the FT's You Tube Channel and I strongly recommend this for ambitious and enthusiastic students.read more...»
After more than a year of relatively low prices, rising global demand for cocoa is a key factor behind a surge in the international price of cocoa beans, prompting fears that the traditional consumer splurge on chocolate treats during the Festive season will be noticeably more expensive this year! In this short BBC news video, some of the background to the rise in cocoa prices is explored. You can download the cocoa price chart below.read more...»
Are you a student taking an A2 economics course in development economics? Each day fresh research and news articles appear that are directly relevant to your work and keeping up to speed can be difficult! Our Scoop.It board provides an avenue to follow with a daily selection of useful articles to extend and enrich your understanding and awareness. Click here or follow the live stream below. The RSS feed for this board can be found hereread more...»
On the World Bank twitter account, President Jim Kim is quoted as saying that "Properly managed, new minerals wealth could transform Africa’s development." Back in June 2013, a new report from the African Progress Panel looked at this important issue and set out an agenda for maximising Africa’s natural resource wealth and using it to improve well-being.
My own students have been researching the economics of natural resources and whether they can be a blessing and/or a curse to countries seeking sustained growth and development. I just wanted to share one or two of these essays with you because I was delighted with the depth of the independent research on show and the quality of evaluation in their arguments.read more...»
Does migration harm developing countries? Professor Paul Collier is interviewed by the Guardianread more...»
Here is an updated presentation on aspects of the natural resource trap or natural resource curse issue facing low (and also high) income countriesread more...»
A revision presentation on aspects of the links between investment and economic growth. Plus some slides on the causes of the so-called Middle Income Trapread more...»
Here at Tutor2u we are really looking forward to the launch of a new programme on BBC - Talking Business with Linda Yueh. Linda has spoken at several of our Tutor2u events in recent years and her ability to communicate important and often complex ideas to a wider public has been clearly evident in her presentations. This is a programme well worth tuning into and sharing with your students. Click here for details. See also: China's Transformation - The Long View (Linda Yueh at the Tutor2u Conference)
The Ethiopian government is ploughing up to 15% of her GDP into large-scale infrastructure development projects - will this kick start a renewed period of fast growth and development? The Grand Ethiopian Renaissance Dam will be the largest hydroelectric power plant in Africa when completed, delivering 6,000MW. The cost and the potential impact of diverting the Blue Nile have created controversy in the region. This FT video looks at some of the issues. This BBC news resource is also useful: The dam that divides Ethiopiansread more...»
For years, a mystery has baffled visitors to developing countries: Coca-Cola is everywhere, but basic medicines are not. This year, Zambia has become the first African country to embrace a trial of the ColaLife concept. ColaLife aims to use Coca-Cola’s distribution model to deliver life-saving medicines to far-flung, rural communitiesread more...»
A new World Bank report says rising temperatures in the next few decades will cause food shortages and increased poverty in Africa. This short video provides some background on some of the key sustainability challenges facing the continent.read more...»
We are now into the 3rd year of falling coffee prices in the world economy and the combination of weaker revenues and rising costs are causing big problems for some of the coffee suppliers in the poorest countries. This Financial Times news video provides some background on the industry. The price has fallen 60 per cent from its peak and the market seems saturated.read more...»
They dominate the major championships in long distance events and the standard of their running is so high that several runners have opted to compete for other countries in order to gain selection for World and Olympic events. What makes Kenyan distance runners so good? From where have they established their enduring competitive advantage? Are there parallels and lessons for countries wishing to compete in the global economy? This news feature from the Guardian offers some interesting clues!read more...»
Currently, barriers of law and custom stop many women from getting
financing for business. Removing those barriers can help overcame the
gender gap, and unleash economic growth. This World Bank video looks at some of the evidence. Our Development Economics blog covers many articles relevant to students tackling this for Unit 4 - click here for the Development Economics Blog