Development indicators Gianni Vaggi University of Pavia September 2013 On the causes of economic growth US employment, major sectors GDP by sector in East South Africa Source: Schoening 2007. Data from African Development Bank, Selected Statistics on African Countries 2007 Burundi Comoros Djibouti Eritrea Ethiopia Kenya Madagascar Malawi Mauritius Rwanda Seychelles Sudan Uganda Zambia Zimbabwe East South Africa 0% 20% 40% 60% 80% 100% Share of GDP Agriculture Industry without Manufacturing Manufacturing Services Gross fixed capital formation (% of GDP) 50 45 BRA 40 35 RUS 30 IND 25 CHN 20 15 SAF 10 EAS 5 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Primary Completion Rate, total (% relevant age group) 110 East Asia & Pacific (all income levels) 100 Europe & Central Asia (all income levels) 90 80 Latin America & Caribbean (all income levels) 70 Middle East & North Africa (all income levels) 60 North America 50 Sub-Saharan Africa (all income levels) 40 South Asia 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 30 Patent Application, residents 900000 East Asia & Pacific (all income levels) 800000 Europe & Central Asia (all income levels) 700000 600000 500000 Latin America & Caribbean (all income levels) 400000 Sub-Saharan Africa (all income levels) 300000 North America 200000 Sub-Saharan Africa (all income levels) Patent applications, residents 100000 South Asia 2011 2008 2005 2002 1999 1996 1993 1990 1987 1984 1981 1978 1975 1972 1969 1966 1963 1960 0 -10 -20 -30 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 1967 1965 1963 1961 GDP Growth rates 30 20 China 10 Korea, Rep. Mexico 0 Brazil South Africa Vietnam Malaysia 2012 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 1968 1966 1964 1962 1960 Gross Fixed Capital Formation (%GDP) 60 50 China 40 Korea, Rep. Mexico 30 Brazil South Africa 20 Vietnam Malaysia 10 0 Manufacture, valued added (constant LCU) 3,5E+14 3E+14 China 2,5E+14 Korea, Rep. Mexico 2E+14 Brazil 1,5E+14 South Africa Vietnam 1E+14 Malaysia 5E+13 2012 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 1968 1966 1964 1962 1960 0 BRICS Capital accumulation The Asian Miracle •World Bank 1993 •UNCTAD Trade and Development Report 1996, 1997, •Robert Wade Governing the market, 1990 The Flying Geese Model (AKamatsu 1958) The engine for growth-1 The role of the governments: – Policies ensuring macroeconomic stability – Government and financial markets – Policies promoting equality(education, land reform) The engine for growth-2 •The profit-saving-investmenet nexus •Industrial policies (promoting accumulation of physical and human capital) •activities (altering the allocation Export promotion-SEZ of resources)