Posts tagged economic development

“200 countries, 200 years, 4 minutes”

Hans Rosling, a Swedish social health researcher, gives a visual demonstration of the relationship between economic and social health development across time. 

Definitely worth a read.
From theatlantic:

Why the iPhone Isn’t Building a New U.S. Middle Class

Short answer: it’s not just wages. The vastly different wages paid to American workers, compared to contemporaries in Taiwan or China, is a significant factor in the shift of massive supply chain operations in the tech industry over to Asia, The New York Times says in its in-depth examination of Apple and its suppliers.
Takeaway factoid someone will repeat in your earshot this week: manufacturing the iPhone in the United States would add about $65 to the cost of each unit. Is that worth it?
But it’s not just about the wages. The biggest shocks of the paper’s examination of Foxconn, one of Apple’s major suppliers for the iPhone, are about physical scale, not payscale. The plant known as Foxconn City employes some 230,000 workers, with more than one quarter of them living on-site in company-built dormitories, The Times reports. The kitchens that feed the workers churn out 13 tons of rice per day, and guards work the hallways to prevent workers from trampling one another.
And the most chilling assessments of the U.S. labor market’s inability to share in some of this new manufacturing activity speak to simple inability to compete. Read more.

Definitely worth a read.

From theatlantic:

Why the iPhone Isn’t Building a New U.S. Middle Class

Short answer: it’s not just wages. The vastly different wages paid to American workers, compared to contemporaries in Taiwan or China, is a significant factor in the shift of massive supply chain operations in the tech industry over to Asia, The New York Times says in its in-depth examination of Apple and its suppliers.

Takeaway factoid someone will repeat in your earshot this week: manufacturing the iPhone in the United States would add about $65 to the cost of each unit. Is that worth it?

But it’s not just about the wages. The biggest shocks of the paper’s examination of Foxconn, one of Apple’s major suppliers for the iPhone, are about physical scale, not payscale. The plant known as Foxconn City employes some 230,000 workers, with more than one quarter of them living on-site in company-built dormitories, The Times reports. The kitchens that feed the workers churn out 13 tons of rice per day, and guards work the hallways to prevent workers from trampling one another.

And the most chilling assessments of the U.S. labor market’s inability to share in some of this new manufacturing activity speak to simple inability to compete. Read more.

"India's Challenge" | The Christian Science Monitor

I’m always surprised that India—the world’s second most populous country & the most populous democracy—never gets much coverage in introductory comparative politics textbooks/courses. That’s a real shame.

From csmonitor:

Ben Arnoldy writes this week cover story, encapsulating India’s tough challenge - building 50,000 schools in the next 10 years to educate up to 100 million students.

Schools are already springing up across the landscape – from big campuses in suburban fields to one-room boutiques in teeming malls. As they do, Americans who feel inadequate about their education system can take solace in at least one fact: Indians are looking at US institutions as models. In the five-star hotels of New Delhi, delegations of presidents and deans from various American universities meet regularly with teams of Indian officials and administrators to set up partnerships, faculty mentoring, and study-abroad programs.

And yet – as in other sectors of rapidly developing countries – India isn’t looking just to mimic the West in education. It is hoping to leapfrog it. In some ways, the country has no choice. “The way education is today in the global market is not scalable,” says Sam Pitroda, an education adviser to the government. “The cost of education has really increased substantially, mainly because IT has not been used effectively the world over in education.”

This means that India is not just trying to build thousands of American-style campuses with neat quads. Many of its new schools will be virtual, for-profit, and integrated closely with workplaces. It may, in fact, end up pushing the concept of online education further than any other country. As a result, what India comes up with will not only affect its economic competitiveness in the 21st century. It may become a petri dish for how to build an educational system in the Information Age.

Yet questions loom. Is India on the verge of a new renaissance or is this effort an overreaching bound to fall of its own ambition? How do you maintain any kind of quality control in such a massive scale-up of schools? Will the legendary bureaucracy of India stifle its quest to be the world’s new cerebellum?

We pay a lot of attention to China’s economic success story—and we should. But we don’t pay enough attention to how democracies have achieved similar successes—or the particular challenges that doing so in a democratic society implies.

From beenthinking:



AMERICANS MAKE UP HALF OF THE WORLD’S RICHEST 1%

By Annalyn Censky @CNNMoney January 4, 2012
It only takes $34,000 a year, after taxes, per person, to be among the richest 1% in the world….
(the rest of the story here)



Interesting side note: There are only 29 “Americans” (the blue people) in that graphic. If each person represents one million people, the the info graphic suggests that only 29 million Americans earn more than $34,000 a year after taxes. There are 313 million Americans.

From beenthinking:

AMERICANS MAKE UP HALF OF THE WORLD’S RICHEST 1%

By Annalyn Censky @CNNMoney January 4, 2012

It only takes $34,000 a year, after taxes, per person, to be among the richest 1% in the world….

(the rest of the story here)

Interesting side note: There are only 29 “Americans” (the blue people) in that graphic. If each person represents one million people, the the info graphic suggests that only 29 million Americans earn more than $34,000 a year after taxes. There are 313 million Americans.

America spends five times as much on defence as China does, and even though China’s defence budget is expanding faster, on recent growth rates America will remain top gun until 2025.
While America still tops a few league tables, the year when the Chinese economy will truly eclipse America’s is in sight. It would be a mistake for American leaders to try to block China’s rise—it is better to be number two in a fast-growing world than top dog in a stagnant one. (via theeconomist)
From globalvoices:

Economy: Brazil overtakes the British. 
Illustration by Benett, published with permission.

From globalvoices:

Economy: Brazil overtakes the British.

Illustration by Benett, published with permission.

Fact-Check Fail Leads to Poor Analysis ("McDonald’s Closes All Their Restaurants in Bolivia" | Hispanically Speaking News)

This story spread like wildfire across the internets in the last two days. The reason is simple: a documentary film about why McDonald’s didn’t succeed in Bolivia (which, btw, seems really interesting and worth watching) was just released. But someone must have failed to notice that the documentary points out that McDonald’s closed its Bolivia franchises in 2002—not “just recently”—and Bolivia has therefore been a McDonald’s-free country for almost a decade. (Did anyone at Hispanically Speaking News think to contact McDonald’s for a quote or comment?)

This leads to bad analysis for two reasons: First, since the article suggests that McDonalds only now (in 2011) “failed” that this is somehow a “success” for the Morales administration in its fight against globalization and/or capitalism and/or American cultural/political/economic hegemony (take your pick, it’s a veritable smorgasbord). Yet because this happened before Morales ever came to office (in 2005), this makes many American-based Morales supporters look really out of touch (if you really cared about Bolivia you would’ve known it was McDonalds-free sine 2002). This makes their credibility on other, more complex, issues on Bolivia highly suspect. This is, of course, compounded by the article’s claim that the documentary was made by McDonald’s itself (rather than, as it actually was, by an independent—and Bolivian—documentary crew).

Second, the triumphalism leads to a bad form of analysis. Only if we reflexively & uncritically assume that McDonald’s is “bad” can we attribute its failure in Bolivia as a “success.” And while there are many reasons to despise the kind of homogenizing influence of McDonald’s (and Starbucks, or any other global “brand”—including “progressive” ones), there are reasons to stop and think about the kinds of places that do and don’t have McDonald’s. For many Bolivians, the lack of McDonald’s is not seen as a “positive” sign of success against globalization, but an indicator that Bolivia’s economy is too small, too unstable, and too bureaucratized to make foreign investment appealing. 

If you look at the Wikipedia list of countries with McDonald’s franchises, something stands out instantly: McDonald’s has franchises in countries that, all things being equal, I’d rather live in. There’s McDonald’s in Sweden, but not Somalia; there’s McDonald’s in Turkey, but not Iran; there’s McDonald’s in South Africa, but not Congo. Basically, countries with McDonald’s are also on the higher end of both GDP per capita and HDI (the UN’s human development index).

Taken in that light, the fact that Bolivia is the only country in South America (other than Guyana) without McDonald’s can be interpreted with less triumphalism and less surprise. Bolivia also has the lowest GDP per capita (even lower than Guyana) and lowest HDI (other than Guyana) in the region, as well as the highest income inequality in the region. Noticing a significant correlation between level of development and presence of McDonald’s, it’s probably no surprise that there’s no McDonald’s in Bolivia. But I’m not sure that’s a source of celebration.

Of course, Bolivia’s Burger King franchises still exist (in fact, they took over the McDonald’s locales). So perhaps there’s more to the story.

Either way, Hispanically Speaking News (a site I’ve never heard of until this internet même) clearly gets an F for the story. Especially since they link to a YouTube video (from a Bolivian news interview with the documentary filmmaker). I find it odd that a source called “Hispanically” Speaking News clearly didn’t understand an interview conducted in Spanish.

There are as many domestic workers in London now as in Victorian times.
These days domestic workers are more likely to be self-employed, well-qualified and well-paid than their 19th century counterparts. Yet in some respects the industry has changed surprisingly little. (via theeconomist)

“Bolivia’s Thirst for Change” | Al Jazeera

I just stumbled upon this report on Bolivia, focusing on the tension between environmentalist rhetoric & economic development. I’m thinking of assigning it in POL 102 next semester.

From shortformblog:

thepoliticalnotebook:

“Kim Jong-Il’s economic legacy, in one chart.”

“Each year the dollar value of South Korea’s GDP expansion equals the entire North Korean economy.”

 -Peter Beck of the Atlantic Council
[via]

Wow, never before has a graph told such a compelling story of the costs and dangers of totalitarianism. 

A caveat to those who see this as a story of the triumph of democratic-capitalism over socialist-totalitarianism: South Korea was also a dictatorship (though a US-friendly one) until a democratic transition began in 1987. Moreover, South Korea follows a peculiar type of state-capitalism (but of the export-oriented, not “import substitution” variety), which means the state plays a very active, guiding role in the nation’s economy. So the tale of the two Koreas shouldn’t be one of statism vs. free markets, but rather of how some states can choke the life out of their economies, but others can successfully manage them to spectacular growth. Keep in mind that in 1960 South Korea was about as poor as Chad (one of the poorest countries in Africa). It was massive state intervention in the economy (not laissez faire capitalism) that transformed South Korea into one of the 20 largest economies in the world.

From shortformblog:

thepoliticalnotebook:

Kim Jong-Il’s economic legacy, in one chart.”

“Each year the dollar value of South Korea’s GDP expansion equals the entire North Korean economy.”

-Peter Beck of the Atlantic Council

[via]

Wow, never before has a graph told such a compelling story of the costs and dangers of totalitarianism. 

A caveat to those who see this as a story of the triumph of democratic-capitalism over socialist-totalitarianism: South Korea was also a dictatorship (though a US-friendly one) until a democratic transition began in 1987. Moreover, South Korea follows a peculiar type of state-capitalism (but of the export-oriented, not “import substitution” variety), which means the state plays a very active, guiding role in the nation’s economy. So the tale of the two Koreas shouldn’t be one of statism vs. free markets, but rather of how some states can choke the life out of their economies, but others can successfully manage them to spectacular growth. Keep in mind that in 1960 South Korea was about as poor as Chad (one of the poorest countries in Africa). It was massive state intervention in the economy (not laissez faire capitalism) that transformed South Korea into one of the 20 largest economies in the world.