By Tatyana P. Soubbotina
How will we examine the degrees of improvement attained via assorted international locations? And what does it take to make improvement sustainable?
This e-book bargains no basic solutions to those complicated questions. as a substitute, the authors inspire readers to hunt their very own ideas by means of reading and synthesizing details on various serious improvement matters together with inhabitants progress, financial development, fairness, poverty, schooling, future health, industrialization, urbanization, privatization, alternate, weather swap, and extra.
The publication, which attracts on info released via the area financial institution, is addressed to lecturers, scholars, and all these attracted to exploring problems with international improvement.
This name is a e-book of the area financial institution Institute -- selling wisdom and studying for a greater global.
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Extra resources for Beyond Economic Growth: Meeting the Challenges of Global Development
Recent data on gross domestic investment in East Asia suggest that the answer is no. 2 The vicious circle of poverty Low income Low productivity Low consumption Low savings Can poor countries break the vicious circle of poverty? 3). Experts are still trying to explain this phenomenon. Generally speaking, however, many of the factors that encourage people to save and invest are well known, including political and economic stability, a reliable banking system, and favorable government policy. In addition to domestic investment, foreign investment can help developing countries break out of the vicious circle of poverty, particularly if such investment is accompanied by transfers of advanced technology from developed countries.
Political stability is one of the most important of these factors. Both domestic and foreign investors are discouraged by the threat of political upheaval and by the prospect of a new regime that might impose punitive taxes or expropriate capital assets. 4). 3 Gross domestic investment as a percentage of GDP, 1980 and 1995 40 38% $ 35 30 $ 28% 25 What is the relationship between poverty and political instability? 20 15 10 5 0 $ $ 26% $ 23% 23% $ $ $ $ 20% 20% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ East Asia and the Pacific $ 1980 Middle East and North Africaa $ 25% Latin America and the Caribbean 23% $ $ 21% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ South Asia 19% SubSaharan Africa Highincome countries 1995 a.
Like any other investment, these investments in human capital require sacrifices. People agree to make these sacrifices if they expect to be rewarded with additional income in the future. How are human capital and physical capital similar? How are they different? Governments spend public funds on education because they believe that a better-educated population will contribute to faster development. Employers pay for employee training because they expect to cover their costs and gain additional profits from increased productivity.