Development economics

states, guiding them to historically unprecedented industrial transformation, and it is unanimously agreed upon that the developmental state model was successful in economic growth of the East Asian countries such as Korea, Japan, and Taiwan. However, the puzzle we have to solve is whether the developmental state model delivers development without limitation, or if the model is doomed to failure once the industrial catch up has been achieved. This essay will briefly elucidate the features of the…

historians. David S. Landes an economic historian who was a professor at Harvard University, tries to answer the question of why some nations are wealthier than others, while others suffer from poverty. In his book The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor David Landes uses his background in economics and history to see the correlations of the nation’s history in economic development and how they are doing today. Besides looking at the economic history; he also…

The Malthusian model of population and economic growth has two key components. First, there is a positive effect of the standard of living on the growth rate of population, resulting either from a purely biological effect of consumption on birth and death rates, or a behavioral response on the part of potential parents to their economic circumstances. Second, because of the existence of some fixed resource such as land, there is a negative feedback from the size of population to the standard of…

inequality, than the economies of East Asia. Latin American and East Asia countries took different development approaches resulting in different results. The origin of these differences can be attributed to historical and social factors as well as to contrasting debate over the role of government policies. Economists have long argued about what kinds of policies are effective in bringing about economic development. One can argues there has to be a greater role for government and…

illicit funds to the United States and “laundering” those funds by investing them in legitimate businesses or U.S. government bonds.” James Petras states that the current global financial system “is a major factor in their (developing country’s) economic instability and mass impoverishment.” A 2005 UK Department for International Development’s (DFID) Political Economy Analysis (PEA) report recognized elite corruption, resources depredation and power capture as factors inhibiting growth and…

to protect and bring prosperity to their citizens. In order to protect their citizens, they strive to achieve three significant concepts: prosperity, security and stability. If each government achieved this goal, ever nation would achieve social, economic and political stability. However in the 21 century, it appears that some nations are thriving while others struggle to develop socially, economically and politically. One major hindrance to developing nation’s growth is their level of…

modernization and dependency theories by highlighting some significant forces and values and evaluate both strengths and weaknesses of the two theories. Modernization theory can be defined as a system of ideas intended to explain the process of development within the context of societies. The theory refers to a model of transition from poor countries countries to rich countries. The theory’s center of interest is on the conversion of institutional structure in terms of culture in…

that human development and poverty as core topics in economics and development and therefore many studies have been done in the past in the area both in academics and at the policy level. To develop a background upon which the findings can be discussed and understood, therefore requires focus on three key areas; the theory and knowledge of human development and poverty, trends in human development and poverty across the world and policies that have been applied in addressing human development…

Development challenges in Latin America Latin America includes Mexico, Central America, South America, and the Caribbean. Latin America consist of a total of twenty-one countries and their population consist of about 604 million. Latin America faces many development challenges and this includes their economy, inequality, employment, women’s rights and equality, innovation and education, health, public insecurity, infrastructure, and environmental degradation. Latin America has not been doing so…

ENDOGENOUS GROWTH MODEL INTRODUCTION In economics the pending question as always been “How do we boast GDP and GDP growth rate”, “How can we grow faster” it is discovered that in solow growth model GDP and GDP growth rate are determined by savings rate, population growth rate, and rate of technological progress. Economies that are advanced in technology, the advancement of knowledge is a very key determinant of growth, however, economies that are less developed, theoretical and empirical…