I'm introducing my year 12 classes to poverty and income inequality next week, and this worksheet should test out their ability to draw a Lorenz curve from data.
Yesterday morning Bill Gates was a guest on BBC Radio 4's 'Saturday Live' programme. He was talking, mainly, about the Bill and Melinda Gates Foundation, the work that it does, the issues it faces in trying to target the most useful aid, the effectiveness of different types of aid and of aid in different continents, corruption... in other words, plenty of real work evidence of relevant topics for students preparing for unit 4 this week, especially for those who are taking Edexcel's paper which has such a heavy emphasis on Growth and Development. I strongly recommend listening to the interview via this link - 19 minutes really well spent!
A new analysis of the allocation of carbon emissions between developed and emerging economies
The rapid growth and development of economic activity in Dubai has put enormous pressure on the water and sewage infrastructure available in the Emirate. Six years ago there was only one sewage works open there but big investment in new plant has increased the capacity and reduced externalities from a sewage system working at full tilt. As this short BBC video shows, there have been some profitable by-products from investment and innovation in state of the art sewage treatment plants.read more...»
In May 2013, the Brazilian government announced that it plans to cancel or restructure almost $900m in debt owed by African countries. The move is designed mainly to expand Brazil's economic ties with Africa and fast forward the growth of trade and investment between emerging countries and regions. In the aftermath of this move, Brazil’s future aid assistance is likely to target infrastructure, agriculture and social programmes. Among the 12 countries set to benefit are Tanzania, oil-producing Republic of Congo and copper-rich Zambia. The Southern Silk Road continues to develop as new models of aid and trade are forged between the emerging fast growing countries of the world.
I have to come clean as a self-confessed container nerd (geek alert: follow the world’s containers using this amazing tool). Not only are the ships hugely impressive from an engineering perspective, but they are a gift for an Economics or Business enthusiast. You might want to be thinking about economies of scale, or the negative externalities associated with transport – or perhaps discuss supply side issues and infrastructure. Container ships cover the lot.
A while ago I argued that container shipping is the greatest of all 20th century innovations, and this week The Economist has reported that the container has been a greater driver of globalisation than all trade agreements in the past 50 years taken together.read more...»
Here is a video report from the fast-growing country of Indonesia where infrastructure deficiencies threaten their sustainable growth rate.read more...»
In the wake of the terrible disaster in which the collapse of a factory building caused more than a thousand deaths, the Founder of the Grameen Bank Mohammad Yunus argues here the case for an international minimum wage in the garment industry and a small price premium to establish a Garment Workers Welfare Trust in Bangladesh.
"I propose that foreign buyers jointly fix a minimum international wage for the industry. This might be about 50 cents an hour, twice the level typically found in Bangladesh. This minimum wage would be an integral part of reforming the industry, which would help to prevent future tragedies. We have to make international companies understand that while the workers are physically in Bangladesh, they are contributing their labour to the businesses: they are stakeholders. Physical separation should not be grounds to ignore the wellbeing of this labour."
There is of micro and macroeconomics in this piece not least the question of price sensitivity of consumers in rich nations.
The BBC's Chief Business Correspondent Linda Yueh @lindayueh has new page on developments in global economy http://www.bbc.co.uk/news/correspondents/lindayueh/ - definitely one for students and teachers to follow. The opening article focuses on a concept that we have been pushing in our own macro coverage in recent times, namely the emergence of a multi-polar world economy with growth coming from a bigger number of countries / regions and less dependent on the advanced western economies. Read the article here
This presentation looks at three evaluation questions in A2 macro and suggests an approach to scoring high marks for evaluation.
Link here to a revision note on aspects of growth and development in India (revised April 2013)read more...»
Here are some notes taken from a talk given by Linda Yueh on the Chinese economy at the RSA in London on the 18th April, 2013read more...»
The latest edition of African Pulse published by the World Bank focuses on growth and development prospects in Sub-Saharan Africa and the overall sentiment is that the region is set to continue with a strong growth performance.read more...»
The LSE’s Jason Hickel writes, narrates and directs this short video looking at the extreme truth of how wealth is divided globally.
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...»
The annual NORFACE migration conference at University College London this week has generated plenty of new research papers on the economics of international migration, a topic that of growing significance for students of globalisation, competitiveness, innovation and growth. Some of the key findings are summarised below together with external links to relevant articles and news reportsread more...»
A recent World Bank report asked ‘Where is the Wealth of Nations?’ Calculations presented at the Economic History Society’s 2013 annual conference show that for Britain, the answer is undoubtedly in its people.
Dr Jan Kunnas and his colleagues calculate that Britain’s ‘human capital’ has grown by a multiple of 123 over the past 250 years. The main drivers of this phenomenal growth have been the growth in the workforce and the growth in wages.
The researchers define human capital as the knowledge and skills embodied in individuals – and they measure it by the discounted earnings the population is expected to earn during their time in the labour force.We have an extended revision note on human capital and economic growth - read it here
The Changing Wealth of Nations - World Bank reports can be accessed here
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.
What if Africa were to become the hub for global science? This is a deeply optimistic piece which stresses the low base of higher education opportunities in Africa at the moment but which reveals the potential of cross country collaboration and the gains that will come from reversing the brain drain. A great example to use when discussing human capital and long-term development. More on the Square Kilometre Array
This 10-question revision quiz focuses on protectionism.read more...»
For every $120 million seized by pirates operating off the coast of Somalia, the cost to the shipping industry and their customers is as high as $3.3 billion, according to research by Tim Besley, Thiemo Fetzer and Hannes Mueller, to be presented at the Royal Economic Society’s 2013 annual conference. This money is enough to employ well over a million Somalis for a whole year.
The study looks at the effect of pirate attacks on shipping costs, focusing on shipping routes whose shortest path takes them through regions where pirates are known to operate. It finds that the increase in attacks in 2008 led to an increase in shipping costs of around 8%. These extra costs are mostly due to the increased security measures that are needed to repel pirate attacks and risk premiums paid to crew and insurance.
A brief overview of economic developments in Angola, one of the fastest growing countries in the world - contains updated links to study resources on Angola.
This 10-question revision quiz looks at introductory concepts of development economics
Revise the development topics of overseas aid, micro finance and Fair Trade and then test yourself with our short revision online quizread more...»
Revision blog on the economics of foreign direct investment in Africa with a special focus on investment from China and other BRIC countriesread more...»
Indian e-commerce lags behind countries such as China and a growing number of African nations. A new report in the economist looks at the future for the Indian mobile technology sector - can the adoption of cheap smartphones and adoption of 3G and 4G phone networks create new competitive advantages for the Indian economy? Who will investto build the telecoms capacity infrastructure? To what extent is the industry held back by hugely complex laws and endemic corruption? India is expected to have close to 165 million mobile Internet users by March 2014, up from 87.1 million in December 2012 - the potential is vast.
I attended a fantastic lecture by Michael Clemens from the Centre for Global Development (CGD), Washington DC at the University of Manchester last week...
Attention is often focused on the tariff and non-tariff barriers to trade and in particular, the extent to which trade from developing countries to advanced high-income nations is influenced by import taxes. Average tariff rates have come down to historic lows in recent years although non-tariff barriers proliferate.
New research from a group of European economists finds that trade costs - a concept that captures the broader expenses of getting goods and services across borders into international markets - are much higher than tariffs. And for developing countries these costs have not fallen to the same extent as richer countries.read more...»
A team of Economic students at Greenhead College, led by A2 student Harry Edwards, recently organised and presented the inaugural ‘Real World Economics’ event during which many Economics and Business issues were showcased. Donations from the evening have been given to a Micro-finance agency ‘Kiva’. The committee have created a portfolio of loans for specific entrepreneurs in developing countries. These loans allow them to grow their fledgling businesses, meaning that they become better equipped to provide for their families and improve their standard of living without becoming excessively dependent on unsustainable levels of aid from developed countries. The hope is to give these people, along with their families and communities, an opportunity to forge a better life for themselves.
Some of the investments undertaken by the committee include a Housing programme in Nicaragua and Agriculture in Rwanda.
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.