GDP per Capita: Highest 1900 #1 United Kingdom #2 New Zealand #3 Australia #4 United States #5 Belgium #6 Netherlands #7 Switzerland #8 Germany #9 Denmark #10 Austria #11 France #23 Japan 2005 #1 Luxembourg #2 Norway #3 Iceland #4 Qatar #5 Switzerland #6 Ireland #7 Denmark #8 United States #9 Sweden #10 Netherlands # 13 UK # 16 Japan # 18 France From Angus Maddison, The World Economy, OECD, 2001; Nation Master.comNation Master.com

GDP per Capita: Lowest (2005) 1.Burundi 2.Ethiopia 3.Congo 4.Liberia 5.Malawi 6.Guinea-Bissau 7.Sierra Leone 8.Eritrea 9.Rwanda 10.Afghanistan Source: The Economist, Pocket World in Figures, 2006, p. 28.

Developing World South LDCs Third World – Latin America – Asia – Africa

Western Hemisphere Colonized (current borders included)

Colonized Africa

Colonized Asia 1910

Middle East Colonized (roughly WWI)

Independence Latin America (by 1823) Middle East (after WW I) Africa and Asia (post-WW II)

Strategies for Development 1.Modernization: Be like the west 2.Nationalization: Seize assets of wealthy nations in a developing nation (related to Dependency) 3.Marxism: Use Soviet Union as a model 4.Group Efforts 5.East Asian Strategy

1. Modernization : Basic Dilemma EDCs North America Western Europe Japan Large middle class High Tech Industrial products High skills High wages Cars, chemicals, aerospace, telecomm, electronics, software LDCs Africa, Asia, Middle east, Latin America Primary products Commodities Elites -- impoverished Low skills Low wages Bananas, coffee, minerals, rubber, timber

The Flow of Money $$$$$$ : cars, computers, manufactured goods $$: bananas, coffee, timber, minerals EDCs LDCs

2. Nationalization Dilemma Global Wealth ranking by GDP per capita (for nations following Nationalization strategies after WW II) Argentina Chile Mexico Colombia Venezuela (data from: Nation Master.Com:

3. Marxism Clockwise from the top: Statue of Kim Il-sung, North Korean leader from ; skulls left by the Khmer Rouge, in power in Cambodia from ; Fidel Castro, dictator of Cuba 1959-?

4. Group Efforts NIEO UNCTAD Group of 77 OPEC

5. East Asian Strategy 1.Japan as the Model 2.Business-Government Partnership 3.Open up the Economy to Foreign Investment 4.Exports! 5.Export Processing Zones 6.Building Home Companies

Four Tigers Hong Kong Singapore South KoreaTaiwan

Tokyo 1945

Tokyo Years later

Seoul, ROK

Singapore

Taipei, Taiwan

Hong Kong, China

Integrating into the World Economy Parts Unfinished imports exports productsFinished Componentsproducts Export Processing Zone

The Biggest of the Big Emerging Markets China 1978 Deng Xiaoping

Shanghai, China

Guangzhou, China

Indian Reform 1991 P. V. N. Rao Manmohan Singh PM Min of Finance PM 2004-present

China and India and Asian Growth China 1.3 billion India 1.0 billion 2.6 billion of 7 billion humans; statistically the largest economic reform program in world history Add Southeast Asia: 3.5 billion entering the modern world economy Tallest Buildings in the world today Tallest Buildings The Future

A Long Way to Go

Poverty in India

Fastest Growing Economies China 2.Thailand 3.Botswana 4.Taiwan 5.South Korea 6.Macau 7.Chile 8.Singapore 9.Indonesia 10.Malaysia Source: The Economist, Pocket World in Figures, 2006 and 2010, p Equatorial Guinea 2.Turkmenistan 3.Azerbaijan 4.Myanmar 5.Armenia 6.Qatar 7.China 8.Angola 9.Cambodia 10.Bhutan