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Why are some countries rich and others poor? An ensuing 21 st -century paradox

Why are some countries rich and others poor? An ensuing 21 st -century paradox. Europe Supported by Africa and America William Blake (1796). Jelte Harnmeijer Schishuney / ‘fishing place with a pole’ / Waldron Island 10 July MMX.

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Why are some countries rich and others poor? An ensuing 21 st -century paradox

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  1. Why are some countries rich and others poor? An ensuing 21st-century paradox Europe Supported by Africa and America William Blake (1796) Jelte Harnmeijer Schishuney / ‘fishing place with a pole’ / Waldron Island 10 July MMX

  2. “For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath.” • - Matthew XXV:29, King James Edition

  3. 1. What are Poverty and Inequality? 2. What patterns exist in the distributionof income? 3. Why are some countries rich and others poor? 4. Neocolonial explanations for persistent 21st–century poverty 5. The link with Sustainability Outline

  4. 1. What are Poverty and Inequality?

  5. Mohotlong, Lesotho Guandong, Chinese-occupied Tibet

  6. Maputo, Mozambique

  7. New York, USA

  8. Kaokoveld, Namibia

  9. U.S. of A.

  10. Nepal

  11. Money & Happiness

  12. What do people think makes them happy? After: Cantril (1965)

  13. What do people think makes them happy? What is well-being? After: British Social Science Research Council (1975) In: Douthwaite (1999)

  14. Income & happiness

  15. Income & happiness • Reported life satisfaction • increases with income to US$10,000 – 15,000, • then levels off at higher levels

  16. The case for greaterequality

  17. Income inequality correlates with ... social capital

  18. (4) Inequality Income inequality correlates with ... infant mortality

  19. (4) Inequality Income inequality correlates with ... mental illness

  20. (4) Inequality Income inequality correlates with ... drug abuse

  21. (4) Inequality Income inequality correlates with ... high-school drop out rates

  22. (4) Inequality Income inequality correlates with ... incarceration rates

  23. (4) Inequality Income inequality correlates with ... obesity

  24. (4) Inequality Income inequality correlates with ... trust in fellow humans

  25. (4) Inequality Income inequality correlates with ... homicide rates

  26. (4) Inequality Income inequality correlates with ... teenage pregnancy rates

  27. (4) Inequality Income inequality correlates with ... child well-being

  28. (4) Inequality Income inequality correlates with ... national altruism

  29. (4) Inequality Income inequality correlates with ... recycling

  30. 2. What patterns exist in the distributionof income?

  31. What patterns exist in the distribution of income?

  32. (4) Inequality What patterns exist in the distribution of income? Compiled from 2003 World Bank country dataset

  33. What patterns exist in the distribution of income? Per-capita income for white and black Brazilians. Source: IBGE Census 2000.

  34. What patterns exist in the distribution of income? Where are the people? 1000 10000 100000 100 Income (US$, PPP) (AFR=Africa; EAP=East Asia; ECE=East- and Central Europe; LAC=Latin America; OECD=Organisation for Economic Co-operation and Development; SAS=South Asia) Source: Dikhanov, Y. and Ward, M. (2003)

  35. What patterns exist in the distribution of income? Where is the dough? Income (US$, PPP) 1000 10000 100000 100 (AFR=Africa; EAP=East Asia; ECE=East- and Central Europe; LAC=Latin America; OECD=Organisation for Economic Co-operation and Development; SAS=South Asia) Source: Dikhanov, Y. and Ward, M. (2003)

  36. 3.Why are some countries rich and others poor?

  37. “Why are some countries rich and others poor?” Summary of interviews conducted between February 2002 and June 2006.

  38. Categories of responses

  39. Categories of responses

  40. Categories of responses

  41. Evolutionary explanations • “… because some people are clever and others are stupid.” • - Anonymous white South African of Boer ancestry, Hazyview, South Africa, July 2004. • “The idea that some populations are more energetic than others […] perhaps deserves some consideration.” • - J.P. Cole (1979), The Development Gap, page 111.

  42. Categories of responses

  43. Categories of responses

  44. (ii) Cultural/societal explanations • “... the explanations offered for the contrasting records in growth have most often focused on institutions and highlighted the variation across societies in conditions relevant to growth such as the security of property rights, prevalence of corruption, structures of the financial sector, investment in public infrastructure and social capital, and the inclination to work hard or be entrepreneurial.” • - Sokoloff & Engerman (2000), page 218.

  45. GDP/capita relative to US in selected New World economies, 1700-1997 Source: Sokoloff and Engermann (2000)

  46. Categories of responses

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