1

ECON

Designed byAmy McGuire, B-books, Ltd.

McEachern 2010-2011

20CHAPTERDeveloping and Transitional Economies

Macro

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LO1

Share of World Population and Output from High-, Middle-, and Low-Income Economies

Exhibit 1

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LO1

Developing and Industrial Economies

Developing countries– Low and middle income economies

• Higher illiteracy rate• Higher unemployment• Faster population growth• Exports

– Agricultural products– Raw materials

Industrial market countries– High-income economies

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LO1 Per Capita Income for Selected Countries in 2007

Exhibit 2

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LO1

Health and Nutrition

Developing countries– Poor health

• Malnutrition– Half the calories

• Disease– Epidemics

– High infant mortality

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LO1

High Birth Rates

Developing countries– High fertility rates– Larger families

• Source of farm labor• No social security

– High child mortality rates

7

LO2

Productivity: Key to Development

Low labor productivity– Output per worker– Quality of labor– Amounts of capital, natural resources,

other inputs Increase productivity

– Invest in human and physical capital• Domestic savings• Foreign funds

8

Foreign Aid

LO4

International transfers – concessional terms– Grants and loans– Money, capital goods, technical assistance,

food Bilateral assistance

– Country-to-country Multilateral assistance

– World Bank– IMF