Challenges of Economic Development in the Middle East and by Julia C Devlin

By Julia C Devlin

This significant ebook surveys significant fiscal matters within the improvement of nations within the center East and North Africa (MENA) area on the grounds that global struggle II. It experiences the major demanding situations dealing with the zone in relocating in the direction of better industry orientation and integration with the worldwide financial system. It additionally features a dialogue of instruments and strategies utilized by improvement practitioners and in brief examines problems with reduction effectiveness. issues lined contain styles of progress, financial reform recommendations, the function of OPEC and oil in improvement, water shortage and agricultural guidelines, inhabitants, schooling ideas, hard work markets and unemployment, alternate, local integration and migration, the funding weather, monetary marketplace improvement, gender, poverty concerns and the impression of clash.

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Washington DC: International Bank for Reconstruction and Development. Note: Data are for 2004; Infant mortality, life expectancy are for 2005. Fig. qxd 28 12/21/2009 4:07 PM Page 28 Julia C Devlin Primary commodity exports For many developing countries, integration with the rest of the world tends to be dominated by high levels of primary commodity exports and reliance on manufactured imports. This has consequences for per capita income growth, depending on trends in export and import prices otherwise referred to as the terms of trade.

Qxd 26 12/21/2009 4:07 PM Page 26 Julia C Devlin From the vantage point of growth, rapid population growth, like capital accumulation, is both the cause and consequence of poverty and underdevelopment (Thirwall, 2006). In low–income regions, high birth rates reflect high rates of child mortality and the desire for income insurance in the presence of market imperfections. At the same time, very high rates of population growth can exacerbate poverty by reducing savings and the marginal productivity of labor, particularly in agriculture, by reducing capital per worker.

Qxd 12/22/2009 10:52 AM Page 45 State Formation, Consolidation, and Development, 1960s–1980s 8 45 Human capital per worker Fixed capital per worker TFP 7 6 5 4 3 2 1 0 -1 East Asia and the Pacific Middle East and North Africa Latin America and the Caribbean High Income/OECD Source: Keller and Nabli (2007). Fig. 2 Growth Accounting by Region, 1970–1980 (average annual growth) the 1960s and even more so in the 1970s. During the 1970s, the growth of fixed capital per worker was over 7%. By the 1980s and 1990s, however, output growth had collapsed to less than 1%; total factor productivity growth was even more negative in the 1980s, and zero in the late 1990s (Fig.

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