RESOURCES

Resources A. Natural Resources B. Human Resources C. Infrastructure D. Technology

A. Natural Resources Income from resource extraction can technically lead to higher GDP per hour….. GNI per capita, Atlas method (current US$) 2012 Bermuda Norway98880 Switzerland80950 Qatar78060 Luxembourg71810 Macao SAR, China64050 Denmark59860 Australia59790 Sweden56120

Oil Reserves Link to BP Statistical Review of World Energy 2012

Resource Curse Some scholars argue that countries “blessed” with large endowment of mineral resources suffer slow growth. Creates social conflict over control of natural resources. Leads to unaccountable government. Ex 1. Conflict Diamonds LinkLink

Ex. 2 Nauru (pop. 8000) Link Significant deposits of phosphates and small population made this one of the wealthiest societies in world in 1970’s. But phosphates ran out..Link – Country never developed internal sources of productivity unemployment rate 90% – National gov’t corrupt and wasteful, bankrupt and completely dependent on multinational aid

Is the resource curse true? Recent studies question these results, but findings suggest that positive productivity spillovers to non- resource industries are questionable. (Link Requires registration)Link Chad –Doba Basin

Chad and Resource Development

NFI Across Countries Source: United Nations Main Aggregates DatabaseUnited Nations Main Aggregates Database

TROPICAL COUNTRIES AND DEVELOPMENT David Bloom and Jeffrey D.Sachs, 1999, “Geography, Demography, and Economic Growth in Africa,” Brookings Papers on Economic Activity LinkLink

Tropics & GDP

Tropics and Development Health risks worse in tropical areas. Soil quality lower. Agricultural technology does not translate from rich temperate zones to tropics. Relative lack of navigable rivers.

Malaria

Agriculture Productivity

Earth Institute Link

Scale Economies & Poverty Traps Land Productivity Scale Subsistence Development occurs through stages but African conditions prevent the most basic stage from generating enough returns to move to the next stage.

Millennium Villages Millennium Project – Intensive intervention in health, education, knowledge and infrastructure at the village level to get citizens out of the trap. Millennium Project Link

Poverty Indicators Decreasing Sub-saharan Africa

Growth Acceleration

B. Human Capital Measures skill, education level of the work force. General (broad primary & secondary education & health) or specific skills (technical skills obtained at tertiary level).

By 2005, average in cohort was 12.2 yrs compared with 13.4 years in USA

Education Literacy Rates: WDI Years of Education Barro-Lee Dataset LinkLink Quality of Education: OECD Programme for International Student Assessment (PISA) Summary Data Education DataSummary DataEducation Data

Aging Population Structure LinkLink Population by age, sex and urban/rural residence

Population Structure and Employment

The Classic Demographic Transition Model Stage 1Stage 2Stage 3Stage 4 Time Natural increase Birth rate Death rate Note: Natural increase is produced from the excess of births over deaths. Link

Stages of Demographic Transition 1. Low Population Growth. High Birth Rates, High Death Rates 2. Population Growth Explosion. Medical Advances slow mortality rates, high population growth. 3. Slowing Population Growth. Educational Advances slow birth rates. 4. Low Population Growth. Low Birth Rates, Low Death Rates

Japan World Population Prospects, the 2010 Revision Volume II – Demographic Profiles LinkLink

United Nations Data

Fertility Rates Age-specific fertility rate: Number of Births to women of a specific age per women/years of that age. Total Fertility Rates: Sum of Age-specific fertility rates from Longer-term ratio of average number of children Replacement Ratio: 2.1 Developed Economy, 2.3 Globally United Nations Data

High Income OECD

C. Infrastructure

Link

D. Technology Capacity Capacity for scientific advance measurable along a number of dimensions. UNESCO Data Link

Technical Workforce Link