GDP per Capita: Highest

1
GDP per Capita Highest

• 1900

• 2005 2018

• 1   United Kingdom
• 2 New Zealand
• 3   Australia
• 4   United States
• 5   Belgium
• 6   Netherlands
• 7   Switzerland 
• 8   Germany
• 9   Denmark
• 10  Austria
• 11  France 
• 23 Japan

• 1   Luxembourg 1 Qatar
• 2   Norway 2 Lux.
• 3   Iceland 3 Singapore
• 4   Qatar 4 Brunei
• 5   Switzerland 5 Ireland
• 6   Ireland 6 Norway
• 7   Denmark 7 Kuwait
• 8   United States 8 UAE
• 9   Sweden 9 Switzerland
• 10  Netherlands 10 Hong Kong
• 13 UK 12 US
• 16 Japan 25 UK
• 18 France 26 France
• 28 Japan

2
Developing World

• South
• LDCs
• Third World
• Latin America
• Asia
• Africa

3
Western Hemisphere Colonized(current borders
included)
4
Colonized Africa
5
Colonized Asia 1910
6
Middle East Colonized (roughly WWI)
http//www.npr.org/news/specials/mideast/the_west/
colonies_map.html
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Independence

• Latin America (by 1823)
• Middle East (after WW I)
• Africa and Asia (post-WW II)

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Strategies for Development

1. Modernization Be like the west
2. Nationalization Seize assets of wealthy nations
   in a developing nation (related to Dependency
   theory)
3. Marxism Use Soviet Union as a model
4. East Asian Strategy Accept globalization
   integrate with the world economy, but on their
   own terms, not complete integration
5. State Capitalism Government ownership and deep
   intervention in business with goal to build
   industries and make money

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1. Modernization The Dilemma The Flow of Money

• cars, computers, manufactured goods
• bananas, coffee, timber, minerals

EDCs
LDCs
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Treat as Reading Assignment

• Developed Economically Developed Countries (EDCs)

• Developing Less Developed Countries (LDCs)

• North America, Western Europe, Japan
• Large middle class
• High Tech
• Industrial products
• High skills
• High wages
• Cars, chemicals, aerospace, telecomm,
  electronics, software

• Africa, Asia, Middle east, Latin America
• Primary products
• Commodities
• Elites -- impoverished
• Low skills
• Low wages
• Bananas, coffee, minerals, rubber, timber

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2. Nationalization Dilemma

• Global Wealth ranking by GDP per capita
• (for nations following Nationalization strategies
  after WW II)
• 1900 1950 2005
• Argentina 12 12 31
• Chile 16 16 53
• Mexico 22 27 57
• Colombia 25 26 76
• Venezuela 27 4 84
• (data from Nation Master.Com http//www.nationma
  ster.com/index.php)

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DebtProblem of Modernization and Nationalization

• Getting debt relief with conditions (by 2000s)
  Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia,
  Ghana, Guyana, Honduras, Madagascar, Malawi,
  Mali, Mauritania, Mozambique, Nicaragua, Niger,
  Rwanda, Sao Tome and Principe, Senegal, Sierra
  Leone, Tanzania, Uganda, and Zambia.
• Receiving debt relief and deciding on conditions
  Afghanistan, Burundi, Chad, the Democratic
  Republic of the Congo, the Republic of Congo, the
  Gambia, Guinea, Guinea-Bissau, and Haiti.
• Eligible for debt relief Central African
  Republic, Comoros, Côte dIvoire, Eritrea, the
  Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan,
  and Togo.

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3. Marxism

• Clockwise from the top Statue of Kim
  Il-sung, North Korean leader from 1948-1994
  skulls left by the Khmer Rouge, in power in
  Cambodia from 1975-1978 Fidel Castro,
  dictator of Cuba, 1959-2016

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4. East Asian Strategy(see the other PPT for
details reference only)

• Liberalism and Nationalism Mixture
• Japan as the Model
• Business-Government Partnership
• Open up the Economy to Foreign Investment
• Exports!
• Protect key industries

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Four Tigers

• Hong Kong Singapore
• South Korea Taiwan

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Tokyo 1945
17
Tokyo 50-60 Years later
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Seoul, ROK
19
Singapore
20
Taipei, Taiwan
21
Hong Kong, China
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Integrating into the World Economy

• Parts
• Unfinished imports exports
• products Finished
• Components products

Export Processing Zone
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5. State Capitalism

• China 1978
• Deng Xiaoping

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State Owned Enterprises (SOEs)

• Problems
• Deeply in Debt
• Corruption
• Losing Money

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Developing World Growing, butWho is left out?

• Nations in civil war
• Land locked
• Low technology (rich or poor nations)
• Climate problems
• Health crises

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Current Trends

1. Massive Economic Growth led by China, India, East
   Asia, then Africa

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2. Globalization Success of Liberal Order

• Free Trade Agreements
• European Union 1991
• NAFTA 1993
• ASEAN FTA 1993
• Common Market for Eastern and Southern Africa
  1994
• South Asia Free Trade Agreement 2004

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More FTAs, But then again

• Trans Pacific Partnership (TPP) 2016
• Comprehensive and Progressive for Trans Pacific
  Partnership (CPTPP) 2018

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3. Rising Inequality

• Wealth upper income
• middle income
• poor
• Time

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4. Backlash in Developed World

• Shift from Older industrial Decline in
• Industrial era Economies Traditional
• To Digital era Reluctance/Inability Industri
  al to Change Sectors
• (mining or manufacturing)
• Established Parties
• offer nothing new
• Rejection Birth of New of
  Established Parties or
• Policy Consensus New Movements
• within Established
• Parties

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Backlash in Developed World

• US moving toward nationalism
• Economic Nationalism spreading
• Xenophobia on right
• Anti-globalization and socialism on left