Latin American Economics

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Latin American Economics
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outline

• SYLLABUS
• DEFINITIONS

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DEFINITIONS

• LATIN AMERICA
• SOUTH AMERICA
• CENTRAL AMERICA
• MEXICO
• CARIBBEAN ISLANDS
• Encyclopedia Britannica, 15th ed, Vol. 22, p. 814
  
  

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DEFINITIONS

• COUNTRIES OF LATIN AMERICA
• Antigua and Barbuda, Argentina, Bahamas,
  Barbados, Belize, Bolivia, Brazil, Chile,
  Colombia, Costa Rica, Cuba, Dominica, Dominican
  Rep., Ecuador, El Salvador, Grenada, Guatemala,
  Guyana, Haiti, Honduras, Jamaica, Mexico,
  Nicaragua, Panama, Paraguay, Peru, Saint Kitts
  and Nevis, Saint Lucia, Saint Vincent, Suriname,
  Trinidad and Tobago, Uruguay, Venezuela.
• Human Development Report 1998, p. 227

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DEFINITIONS

• Our Focus
• Argentina, Belize, Bolivia, Brazil, Chile,
  Colombia, Costa Rica, Cuba, Ecuador, El Salvador,
  Guatemala, Honduras, Mexico, Nicaragua, Panama,
  Paraguay, Peru, Uruguay, Venezuela.

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POVERTY INEQUALITY

• Approximately 25 of Latin Americans live on less
  than 2 per day.
  
• Latin America is the most unequal region of the
  world.

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DATA SOURCES

• United Nations
• UN Development Program http//www.undp.org
• Human Development Data / Data by Indicator
• World Development Indicators
• Google
• World Development Reports
• Google
• Search

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WHAT IS DEVELOPMENT?

• The concept defines success.
• Success determines our goal.
• Where should we aim to go?
• Our goal determines policy.

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WHAT IS DEVELOPMENT?

• Growth
• Expanding production

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WHAT IS DEVELOPMENT?

• Process of releasing potential to mature
• Maturity / Wholeness / Happiness
• Basic Needs
• Distribution

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WHAT IS DEVELOPMENT?

• Box 1.1, page 12

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WHAT IS DEVELOPMENT?

• Solicitudo Rei Socialis, Section IV
• What is the definition of authentic development?
• What are the steps to get there?
• What are the chief obstacles?

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WHAT IS DEVELOPMENT?

• Write your definition of development

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DEFINITIONS

• FOUNDATION EXPERIENCE

SCARCITY
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DEFINITIONS

• ECONOMICS

SCIENCE CONCERNED WITH ALLOCATING SCARCE RESOURC
ES
SO AS TO MAXIMIZE SOCIAL SATISFACTION.
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DEFINITIONS

• ECONOMICS

Maximizing Social Satisfaction
Two Issues
1. Efficiency 2. Distribution
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DEFINITIONS

• ECONOMIC SYSTEM

WAY OF . . .
ECONOMY
PEOPLE ACTING TO . . .
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DEFINITIONS

• GROSS NATIONAL PRODUCT (GNP)

THE VALUE OF GOODS AND SERVICES PRODUCED BY THE
CITIZENS OF A COUNTRY IN
A YEAR.
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DEFINITIONS

• GROSS DOMESTIC PRODUCT (GDP)

THE VALUE OF GOODS AND SERVICES PRODUCED BY THE
RESIDENTS OF A COUNTRY IN
A YEAR.
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DEFINITIONS

• REAL GNP

THE VALUE OF G/S AFTER ELIMINATING INFLATION
GNP IN CONSTANT DOLLARS, e.g. 1970
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DEFINITIONS

• REAL GNP PER CAPITA

REAL PRODUCTION PER PERSON
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MEASURES

• GROWTH

PERCENTAGE CHANGE IN RGDP
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MEASURES

• INFLATION

PI WEIGHTED AVERAGE PRICE OF A BASKET OF GOODS
SERVICES.

INFLATION PERCENTAGE CHANGE IN
THE PRICE INDEX