1. PP430: Planning for Economic Growth and Development Faculty Sheila Toppin, DPA (abd), MPA

2. Welcome to the Class Greetings Availability ◦ Office hours: Tuesday & Thursday 6:00 - 8:00 pm EST ◦ Telephone ◦ Appointments: send an email message ◦ Google Voice/Video: SToppin@kaplan.edu Ice Breaker ◦ Personal Triumphs ◦ Thoughts on the 2 nd Presidential Debate

3. Course & Syllabus Info 10 Units (10 weeks), Wednesday to Tuesday Discussion Board – 1 to 2 discussions per Unit Seminar meets every Thursday at 8 PM EST Assignments due by 10/30/12 Announcements: Informational & Reminders Last day to request an Incomplete: 10/22/12 Last day of class: 10/30/12

4. Course & Syllabus Info Assignments: ◦ Unit 9 (Final Project), paper (225 pts) Discussion Board (20 pts ea) Seminars (10 pts ea)

5. Unit 9 - Final Project Write a 6-8 page paper assessing President Obama and the Congressional Majority Democrats’ stimulus, budgetary, and health care initiatives in the context of promoting Economic Growth and Development. Are the Democrats’ policy initiatives aimed more at encouraging Economic Growth or Economic Development? Or are they aimed at both? Address questions related to the challenges of business cycles and social policy; economic theory for policy development; and ideological legacies of the political parties and national platforms.

6. Unit 9 To-Do List Readings (text & web sources) Discussion Board Seminar Assignment (See the To-Do Checklist PDF that is available in the classroom to keep track each Unit) Questions??

7. Economic Growth & Development

8. Economic Growth is the increase in a nation’s, regions or state’s productive output, usually over one year. Involves fiscal, monetary and regulatory policies aimed at promoting economic gains. Economic Development is the distribution of output across income classes, regions or demographic distinctions. Refers to the achievement of a quality of life for the average citizen of a country. Main Point - Economic growth is essential for Economic development.

9. International Trade International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Also has the potential to maximize a country's capacity to produce goods as it opens up the opportunity for specialization and therefore more efficient use of resources.

10. International Trade Goods - food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services - tourism, banking, consulting and transportation. Export – a product that is sold to the global market Import – a product that is bought from the global market

11. International Trade Two contrasting views regarding the level of control placed on trade: Free trade - a laissez-faire approach, with no restrictions on trade. The main idea is that supply and demand factors, operating on a global scale, will ensure that production happens efficiently. Protectionism - regulation of international trade is important to ensure that markets function properly (examples are tariffs, subsidies and quotas).

12. International Trade Opponents of global free trade have argued, however, that international trade still allows for inefficiencies that leave developing nations compromised. What is certain is that the global economy is in a state of continual change, and, as it develops, so too must all of its participants. Questions??

13. The World Trade Organization The only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

14. The World Trade Organization The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers (who usually meet at least once every two years) or by their ambassadors or delegates (who meet regularly in Geneva). While the WTO is driven by its member states, it could not function without its Secretariat to coordinate the activities. The Secretariat employs over 600 staff, and its experts (lawyers, economists, statisticians and communications).

15. International Monetary Fund IMF promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help members in balance of payments difficulties or to assist with poverty reduction. The IMF has 188 member countries. It is a specialized agency of the United Nations but has its own charter, governing structure, and finances. Its members are represented through a quota system broadly based on their relative size in the global economy.

16. International Monetary Fund Through its economic surveillance, the IMF keeps track of the economic health of its member countries, alerting them to risks on the horizon and providing policy advice. It also lends to countries in difficulty, and provides technical assistance and training to help countries improve economic management.

17. The International Trade Administration U.S. agency that seeks to strengthen the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of our trade laws and agreements. ITA works to improve the global business environment and helps U.S. organizations compete at home and abroad. ITA supports President Obama’s recovery agenda and the National Export Initiative to sustain economic growth and support American jobs.

18. The International Trade Administration ITA addresses common trade problems U.S. companies encounter: Tariff and customs barriers Service barriers Standards, testing, labeling, or certification barriers Rules of origin Government procurement contract barriers Intellectual property protection problems Excessive government requirements Excessive testing or licensing fees Bribery Investment

19. The International Trade Administration Administers U.S. trade remedy laws within its mandate in a fair and objective manner; Provides the President, the United States Trade Representative (USTR), and Congress with independent, quality analysis, information, and support on matters relating to tariffs and international trade and competitiveness; and Maintains the Harmonized Tariff Schedule of the United States.

20. 2012 Recent Trends in U.S. Services Trade Report Results Part of an annual series prepared by the U.S. International Trade Commission Data set: 2009 – 2010 FY Key Findings ◦ Services industries make up the majority of U.S. production and employment, accounting for 79% ($9 trillion) of total U.S. private-sector real gross domestic product and 82% (82 million) of U.S. private-sector full-time employees in 2010.

21. 2012 Recent Trends in U.S. Services Trade Report Results Key findings Con’t: Infrastructure services’ value added recovered in 2010 as wages and productivity grew, but employment decreased The outlook for U.S. infrastructure services varies by industry The U.S. insurance market remains the world’s largest but grew relatively slowly in 2010 (Global insurance premiums grew by 5.6% in 2010 to $4.3 trillion, exceeding the 2005–09 CAGR of 4.5%.

22. 2012 Recent Trends in U.S. Services Trade Report Results Global retail sales grew rapidly as emerging markets gained market share (grew sharply in 2010, rising 9% to $16 trillion. The U.S. remained the world’s largest retail market with $3 trillion in sales (almost a fifth of the global total). However, sales grew faster in developing and emerging countries; Brazil, Russia, India, and China together accounted for 24% of total retail sales in 2010, compared to 15% in 2005.

23. 2012 Recent Trends in U.S. Services Trade Report Results The U.S. was the world’s top exporter of services with $518.3 billion, or 14% percent, of global cross- border commercial services. The U.S. was the world’s largest services importer with $358.1 billion, or 10%, of global commercial services. The U.S. services trade surplus was the world’s highest ($160.3 billion), followed by the United Kingdom ($65.9 billion). In comparison, Saudi Arabia and the United Arab Emirates had the world’s largest services trade deficits, with imports exceeding exports by $40.7 billion and $29.9 billion, respectively

24. 2012 Recent Trends in U.S. Services Trade Report Results U.S. exports of private sector services totaled $530.3 billion in 2010, while U.S. imports totaled $368.0 billion, resulting in a $162.2 billion trade surplus. U.S. cross-border services exports increased after falling in 2009 as a result of the global recession. U.S. cross-border services exports increased by 9 percent in 2010, compared to a compound annual growth rate (CAGR) of 8 percent during 2005–09

29. Class Activity - Video IMF Urges United States to Support Recovery http://www.youtube.com/watch?v=QMpMPjqjxMI 1. What is the IMF (or similar international organizations) role in advising governments? 2. Do you think international trade organizations should influence governments (political administrations/ideologies) in the United States?

30. Course Objectives This course was intended to enable students… Explore the context, theory, process, and practice of economic development planning and policy. Understand topics covered: ◦ differing theories and conceptual explanations of the economic development process; ◦ international, national and regional factors affecting economic development; ◦ contrasting economic development approaches and methods; ◦ and the impact of international agencies and initiatives in effecting economic outcomes.

31. Course Outcomes By completing this course, you will be able to: Assess the underlying determinants in economic growth and development. Evaluate how political and social institutions influence the process of economic development. Analyze the implications for policies and strategies aimed at improving economics conditions. Debate the impact of international initiatives and agencies on economic growth and development. Form a logical solution to a problem.

32. Open Forum Questions/Concerns? What topics were most interesting to you? What topics do you wish we spent more time discussing? Having studied this topic for the past nine weeks, has your view of economic growth and development policy in the U.S. changed? Why or why not?

33. Unit 9 Seminar Summary Reviewed upcoming assignment expectations Defined international trade & concepts Discussed international trade approaches, policies, agencies Analyzed U.S. international trade trends and Class Activity – Video IMF’s recommendations & discussion Course Review & Open Forum Final Questions??? Dismissal