Welcome to EC462

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Introduction

• Welcome to EC462
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  Development Economics Lessons from Past
  Experiences
• Who am I?
• Name ?????? ????????
• Office ???? 520
• Email kiriya_at_econ.tu.ac.th
• Office Hour ???????? 13.30-14.30?.
• Class Web www.econ.tu.ac.th/kiriya/ec462.htm
• Who are you?

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• ?????????????
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• Development Economics (1998) ??? Debraj Ray
• Leading Issues in Economic Development (2005) ???
  Gerald Meier and James Rauch
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• Standard of Living in the World since 1800
• Distribution of Living Standards in the
  Contemporary World
• What Determines Economic Development?
• The Goal of this Course!

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Measurement of Living Standard

• In the 40s and 50s gt GDP
• Critics realized there were other aspects
• Recently, UN created Human Development Index
  (HDI)
• Monetary
• Health
• Education
• Critique ad hoc weighting issues, what to
  include, double counting

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• http//hdr.undp.org/en/statistics/data/map/

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Standard of Living in the World since 1800

• History of Growth
• Maddison (1998) looks at GDP per capita over
  time (0-2000)
• First do analysis from year 0 to 2000
• Growth is recent phenomenon. Centuries of
  stagnation and then huge takeoff.
• From this perspective, regions look pretty
  similar, all take off at around same time and all
  experience lots of growth thereafter

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• 2. Now do analysis from 1800 to 2000
• See massive improvements made by US and Western
  Europe and recent catch-up by Asia and
  Latin-America. Africa left behind.
• 2. This figure shows much more differentiation
  between regions. Show much more inequality.

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• Easterlin (2000) focuses on turning points in
• Growth rates of GDP
• Material quality of life
• Health
• Fertility
• Education

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Growth rates. (a) Growth rates are much higher
after turning point (b) Turning point comes later
in time and lower in income for LDCs (less
developed countries). (c) After turning point in
LDCs rate of improvement was greater (though
they do start from lower income). (d) Africa
hasnt reached turning point. (e) Growth rates
seem similar but small differences are important
with compounding. At 1.7 growth each year
doubling income takes 40 years. At 0.1 growth
each year doubling income would take 400
years! Material quality of life. (a) 200 years
ago life like camping out. 1 or 2 rooms, fire
for heat, candle for light, horse for transport,
latrine outside, dirt floor. (b) Now we have
refrigerator, car, blender, computer,
airplanes. (c) In Japan 1 of households had a
car in 1958 and 60 had a car in 1987.
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