Approaches for Developing Economy

Export Orientation Find niche in international economy & export goods (comparative advantage) “Luckiest Nut” video  groundnuts in Senegal Gov’t support (subsidies) for exporting sectors “Asian Tigers” (Hong Kong, S. Korea, Taiwan, Singapore) used this strategy post-WWII & v. successful Limitations >>> sensitive to external factors; lack of product diversity; localized disaster = worldwide shortage; do govts have this knowledge?

Tourism Latin America, Asia, sub-Saharan Africa among fastest evolving destination markets Int’l tourism plays significant role in African economies (esp. S. Africa) Limitations: exploitation, incl. low wages & poor working conditions; endangering biodiversity

Complementary Currencies Alternative money device; parallel to national currency Not legal tender To fill some need that nat’l currency doesn’t (local dev; sustainability; social capital; etc) Works like actual money, but can only be used in certain places (local businesses) Limitations: requires teaching; more complicated for business; not all participate

--examples-- Ithaca HOURS – Ithaca, NY Fureai Kippu – Japan Time < - - > money Fureai Kippu – Japan “Caring Relationships Tickets” Basic unit: one hour of service to elderly person Toronto Dollar – Canada (backed by Canadian dollars) Frequent Flier Miles! 

Circular Economy Promotes greater productivity; reduce waste Contrast to linear economy ----> “take-make-dispose” Renewable energy; components designed for disassembly/ repurposing; minimal energy Continuous positive development cycle Uses living systems (organisms) as model Ex: Google Ex: Scotland “Two of the strategy’s key elements are: to develop a more comprehensive approach to producer responsibility by setting up a single framework for all product types that drives choices for reuse, repair and remanufacture, while more fully exposing and addressing the costs of recycling and disposal; and to reduce all food waste by 33% by 2025 – the first such target to be set in Europe.” https://www.youtube.com/watch?v=zCRKvDyyHmI

Knowledge Currency Knowledge resources just as impt as other resources Intellectual capabilities >>>>> physical inputs/ natural resources Knowledge & education (human capital) can be both product & asset Technology & science Limitations: fastest-growing job sectors aren’t ones that require degree “One-third of the US labour market is made up of three types of work: office and administrative support, sales and food preparation.” (https://www.theguardian.com/commentisfree/2016/may/18/knowledge-economy-myth-more-universities-degree)