1. Economic Development of Asia Introduction and Overview
Chapters 1(a), 2(a) and 1(b)

2. Players at a Glance Tier 1 – Newly Industrialized Countries (NIC’s)
South Korea, Taiwan, Hong Kong, Singapore
Tier 2 – S.E. Asian Developing Countries
Thailand, Malaysia, Indonesia, Philippines
Tier 3 – South Asian Developing Countries
India, Pakistan, Bangladesh, Nepal, Bhutan
China – East Asian Developing Country (Tier 3)

3. How the Other Half Live
40% of world population lives on less than $2 a day.
Extreme poverty
Starvation, dispair
Extreme disparities in income distribution (see fig. 11)
Poor quality of live, subsistence standards

4. UN Millennium Development Goals (MDG’s)
In the year 2000, 189 member countries of the UN adopted eight MDG’s to eradicate poverty and achieve other human development goals by the year 2015.
What are these goals?
(Group Exercise 1 – Find a list of UN MDGs by searching the internet) (15 minutes)

5. UN Millennium Development Goals (cont’d)
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality
Reduce child mortality
Improve maternal health
Combat HIV/Aids, Malaria and other diseases
Ensure environmental sustainability
Develop a global partnership for development

7. Measuring Development
How do we define development?
World Bank classification by Per Capita Gross National Income – Growth Rate
Capabilities Approach – A.K. Sen
Development and Happiness – Bhutan

8. Human Development Index
HDI takes into account (pg.49-56)
GDP PC (PPP)
Life Expectancy
Education
HDI =
1/3 (Income Index) +
1/3 (Life Expectancy Index) +
1/3 (Education Index)

9. Human Development Index
Income Index= log(current income) – log(100) log(40,000) – log(100) Life Expectancy Index= current life expectancy – 25 years 85-25

10. Human Development Index
Education Index is made up of two parts:
Adult Literacy Index=
current adult literacy - 0
Gross Enrollment Index=
current gross enrollment

11. Human Development
Education Index = 2/3(Adult Literacy Index) + 1/3( Gross Enrollment Index)

12. Human Development Index
HDI now equals
HDI =
1/3(Income Index) +
1/3(Life Expectancy Index)
1/3(Education Index)

13. Human Development Index
Calculate HDI for India:
GDP PC (PPP)= 3,460
Life Expectancy= 64 years
Adult Literacy= 70
Gross Enrollment= 65%

14. Common Characteristics of Developing Countries (pg. 56-71 Todaro)
Lower levels of living and productivity
Lower levels of human capital
Higher levels of inequality and absolute poverty (fig. 27)
Higher population growth rate
Greater social fractionalization
Large rural populations (migration)
Lower levels of industrialization

15. Common Characteristics of Developing Countries
Adverse geography or resource endowment
Underdeveloped financial market
Colonial impact
External dependance
Role of public – Private sector
(Exercise – Are living standards of developed and developing countries converging? Read and write 2 paragraphs) Due next class