Showing papers on "Developing country published in 1977"

The future of the world economy

Abstract: PREFACE This report is intended to present the preliminary results of a study, made under the auspices of the United Nations, on the impact of prospective economic issues and policies on the International Development Strategy for the Second United Nations Development Decade. Primary financial support for the study was provided by the Government of the Netherlands through a grant to the United Nations. Additional financial support, which permitted a number of consultants to prepare special analyses, was provided by the United Nations and the Ford Foundation. The team of principal investigators responsible for the preparation of building the world input-output model and for the computation of the projections included in this report was under the direction of Wassily Leontief and included Anne P. Carter and Peter Petri (of Brandeis University), with Joseph J. Stern (of Harvard University) serving as a co-ordinator for the project. Richard Drost (of Brandeis University) wrote the programmes with which the various computations were performed. Many offices and organizations of the United Nations family generously provided statistical information and relevant reports. The authors are especially grateful to the Economic Commission for Europe of the United Nations which prepared a special study of interindustry relations in Europe; the Food and Agricultural Organization of the United Nations, for generously making available a large amount of data on the agricultural sector in various regions of the world; the International Labour Office and the Population Division of the United Nations Secretariat for providing demographic data. In addition, the World Bank gave us access to its vast amount of data pertaining to the developing economies. In the original conception of the study, it was hoped that research organizations in various countries, especially the developing countries, would be asked to undertake specific studies and data collections. Actually, this proved to be difficult, partly because the time available to complete the study was too short to permit effective liaison to be established between the research staff at Brandeis and Harvard Universities and overseas research institutes. Nevertheless, the assistance of the Development Centre of the Organisation for Economic Cooperation and Development (OECD) which distributed the project outline and interim reports to the members of its world-wide network of research institutions is gratefully acknowledged. As is suggested in the report, further analysis of the environmental problems can and indeed

Direct investment by firms from less developed countries 1

Abstract: Introduction A NEW component of foreign direct investment (FDI) is beginning to be recognized in some Less Developed Countries (LDCs). As LDCs develop, and as some LDCs form local common markets, firms based in one LDC are beginning to make substantial direct investments in the modern manufacturing sector of neighbouring LD Cs [23]. Until recently, studies of FDI in LDCs have either ignored these LDC firms, or lumped them together with other multinational enterprises (MNEs).2 This paper examines multinational enterprises which invested in Thailand whose parent firm was located in an LD C and tentatively draws some general conclusions about the characteristics of LDC investments there.3 Many LDCs have followed a development policy of rapid, importsubstituting industrialization. To try to achieve growth in industrial output, they have encouraged investment by MNEs to provide capital, technology, managerial skills, and access to foreign markets. The costs to the host country of this investment are sometimes quite high and may include loss of control of the local economy, cultural dependence, eventual capital and profit repatriation, monopoly profits accruing to foreign firms, the use of 'inappropriate technology', and the production of goods which are inappropriate to the income level of the majority of the population [18]. These conflicts between the host country and foreign investors have been extensively examined in the literature [16, 22]. Over time, many LDCs have begun to emphasize the costs and question the benefits of foreign direct investment. Some LDCs have imposed restrictions on some types of foreign investment, some have banned it entirely. But should the policies of LDCs be the same toward all firms from all countries? Crookell [5] has argued that LD Cs should differentiate between types of foreign investment based on whether the firm is oriented toward exports or toward engaging in local market development. Is it useful for the host LDC to distinguish between foreign investment based on the home country of the parent firm?

Twenty-Five Years of Economic Development, 1950 to 1975

Abstract: The aim of this study is to analyze the success of economic development in developing countries over the past quarter century. The study does not attempt to survey the history of ideas about development, nor does it try to identify patterns of development and structural change. The detailed country-level data on which the summary text tables are based are presented in the tables in the Statistical Appendix. Estimates of gross national product per capita in developing countries must be treated with caution. The use of exchange rates rather than purchasing-power parities to convert estimates in national currencies to a single common denominator seriously overstates the real income gap separating rich and poor nations. The bias inherent in the conventional figures is indeed substantial. To minimize distortions resulting from the use of conventional gross national product measurements, an attempt is made in this study to complement the analysis of growth rates in gross national product per capita with evaluations of progress on other, more tangible indicators such as supply of nutrition, life expectancy, and literacy wherever this is possible.

An analysis of income transfers in a developing country

Abstract: This paper presents descriptive and analytical evidence on the characteristics and determinants of remittances and transfers in Kenya using data from a nationwide household survey. It is found that urban-rural remittances provide only a limited picture accounting for less than half of all transfers and that transfers have very little effect on the over-all distribution of income. In a regression analysis the amount of income transferred tends to be most highly related to education, income level, urban residence, migrant status and length of stay, ownership of a house in the home area, and the number of wives and children living away.

Tourism's Role in Economic Development: The Case Reexamined

Abstract: In search of remedies for persistent balance-of-payments deficits, governments in developing countries and international aid agencies have been attracted to international tourism.1 This stemmed from a superficial view of the demand and supply conditions thought to characterize the trade in travel services. On the demand side, it has been pointed out that receipts from international tourism have been growing faster than world exports: there was an annual rate of increase between 1950 and 1970 of 11 percent as against 9 percent for world exports as a whole, and only 6 percent for those of primary products. As a result, by 1970 international travel accounted for 6.5 percent of total exports, compared with 3.4 percent in 1950. Other explanations for the "popularity" of this trade arise from a rather naive view of the industry's supply elasticity in developing economies. Tourism has been pictured as an economic activity of fairly simple technology, using resources such as sunshine, scenery, and manpower existing in some abundance in these countries. As a result, the case for tourism in a strategy of accelerated development has appeared overwhelming. It is argued that not only can tourism relieve the shortage of foreign exchange constraining industrial expansion and alleviate the growing problem of urban unemployment, but in the long run it will provide a price and income elastic substitute for staple exports facing less favorable demand conditions. Thus, in the 1960s international agencies like the World Bank, IFC, and IDA increased their loans for tourism purposes, and many less developed countries have been encouraged to give tourism a conspicuous place in their development plans.

Underdevelopment, dependence, and integration: the politics of regionalism in the Third World

Abstract: Most cases of regional economic integration are among Third World countries, yet research in this field has been dominated by theory based on the European experience. The politics of integration among underdeveloped countries can be better understood within the framework of a theory designed to fit conditions in those regions. Contemporary economic theory provides a basis for such a theory. A successful integration scheme requires a high degree of political cooperation. The problem is that the type of integration scheme most likely to contribute to development is the most difficult to achieve. On the basis of the distribution of the costs and benefits of integration, the policy positions of national and sub-national actors can be predicted on a broad range of integrative measures. The ultimate success of integration depends on the ability of relevant actors to negotiate coalitions in support of policies which will contribute to the development of the region as a whole and which will assure an acceptable distribution of these benefits within the region.

The Future of the World Economy: A United Nations Study

Abstract: This report is a study on the environmental aspects of the future world economy based on investigations by the United Nations which were initiated in 1973 Alternative projections are made of the demographic economic and environmental states of the world in the years 1980 1990 and 2000 A global economic model displays interrelationships between environmental and economic policies Variables include regional economies agriculture mineral resources manufacturing activities trade transportation and communication exports and imports capital flows foreign interest payments technology cost of production and relative prices Different scenarios are analyzed in which growth rates of gross product per capita were set to reduce the income gap between developing and developed countries by the year 2000 Scenarios deal with: 1) food and agriculture 2) adequacy of mineral resources 3) economic cost of pollution abatement 4) investment and industrialization and changes in world trade and 5) a new economic order involving balance-of-payments deficits of developing countries The findings are: 1) target rates of growth of gross product in developing regions are not sufficient to close the income gap between developed and developing countries 2) limits to sustained economic growth and accelerated development are political social and institutional in character rather than physical 3) feeding the rapidly increasing population of developing regions can be solved by cultivating large areas of unexploited arable land and by doubling and trebling land productivity 4) supply of mineral resources for accelerated development is not a problem of scarcity in the present century 5) current abatement technology can manage pollution problems 6) accelerated development in developing regions is possible if 30-40% of their gross product is used for capital investment 7) accelerated development necessitates a faster growth of heavy industry 8) accelerated development leads to a continuous increase in the share of developing regions in world gross product and industrial production 9) balance-of-payments can be reduced by either reducing the rates of development or closing the potential payments gap by introducing changes in the economic relations between developing and developed countries and 10) reduction of potential trade imbalance is to significantly decrease their import dependence on manufactured products

Exchange rate policies for developing countries

Abstract: Publisher Summary This chapter discusses the exchange rate policies for developing countries. Developing countries have generally favored adjustable par values as the basis for the world exchange rate system. This has been apparent both in their attitude in negotiations on reform of the international monetary system and in their reactions to the exchange rate developments of recent years. Most developing countries have, in the management of their own exchange rates, maintained a fixed peg against a single intervention currency, though a significant minority have moved to floating exchange rates or have pegged their rates to a basket of currencies. The case for flexible or floating exchange rates versus a system of adjustable par values has usually been made abstracting from the level of development of countries. The chapter discusses the differentiating characteristics of developing countries that may affect their preference for a particular exchange rate system. It discusses various possible policy reactions of developing countries to the current situation, where the industrial nations' currencies are floating.

Women in the Informal Labour Sector: The Case of Mexico City

Abstract: In recent years, the informal labour sector has increasingly represented a testing point for theories of development The proliferation of informal jobs in developing countries has been considered alternately a stage in the process of development and a blind alley leading a country back into underdevelopment But social scientists and policymakers have rarely recognized that the majority of those left out of the formal occupational structure are women It is, however, very difficult to establish the heuristic boundaries of the informal labour sector, particularly with respect to women Are we referring to the intermittent part-time activities of women outside the household both in cities and in rural areas? But men also engage in such activities, for example, as street peddlers Is the unpaid work of the wife and young unmarried daughters in a family enterprise such as a store an informal job? If unpaid labour is to be included in the informal labour sector, then women’s voluntary community service and their unpaid domestic labour must also be taken into account Moreover, since informal labour also comprises work not regulated through a contract, all low income, non-contractual jobs registered as formal occupations, such as paid domestic service, belong to this classification Many low income and low productivity jobs included in the formal occupational structure and registered in national censuses, even when such a contract does exist, can be considered as a continuation of informal jobs as well and thus must be analysed within the informal labour sector This paper assumes that the nature of the informal labour sector in a developing economy is a direct outgrowth of the type of industrialization a country is undergoing Within this framework, this paper explores the degree of occupational choice that women have within the structural margins of employment

The Mining Industry and the Developing Countries

Abstract: This book is designed to provide and overview of the world mining industry - its structure, objectives and operations, and the major factors bearing on them, such as the physical characteristics of mineral resources, economies of scale, capital requirements, and economic and political risk; its production, consumption and trade characteristics; the behavior of mineral prices; and the industry's impact on economic growth with particular reference to the developing countries. The book examines the principal problems and challenges facing the industry, both in the short term and over the long run, and the needs and interests of the various players. It reviews the role that policy, both public and private, can and must assume to meet the needs of society while safeguarding the interests of nations, especially those of developing countries. If the professed goal of greater international economic cooperation is progress for all, above all the neediest countries, then a vital sector such as the mining industry must make a positive contribution toward that goal. This issue is addressed throughout the book. The book also addresses mineral sector development in developing countries.

Land reform: a world survey.

Abstract: This book lays down some general themes and principles in the study of land reform and traces the historical evolution of the concept of land reform. It constitutes a continent-based country-by-country survey of the significant recent reforms in the less developed countries.

Fuelwood and charcoal in developing countries

Abstract: This is an economic survey of the estimated use, energy budget and consumption patterns of fuelwood throughout the developing countries. The use of charcoal is also examined on the basis of available data. It is estimated that the total annual use of all wood for fuel in the developing countries is 1.2 billion m/sup 3/. This compares with roughly 150 million m/sup 3/ used annually in industrialized countries. 19 references.

A Perspective on the Debt of Developing Countries

Abstract: Since 1973, when the price of oil was raised very sharply, developing countries have incurred heavy debts. This paper looks at their ability to carry debt, first by examining the balance of payments and external borrowing of all developing countries that are not oil producers in general. It then focuses on a group of ten advanced developing countries (Argentina, Brazil, Chile, Colombia, Mexico, Peru, Phillipines, South Korea, Taiwan, and Thailand) that account for the bulk of the borrowing from private sources that has given rise to widely expressed concern. The analysis that follows leads to an optimistic conclusion about the capacity of the ten countries not only to carry their present debt but to expand it. It does not follow that decision makers in private financial markets will come to the same conclusion. Thus, attention is given also to supplementing private lending with resources supplied by the International Monetary Fund. Furthermore, questions are raised about what could go wrong--what international developments could make the outlook less rosy for the heavy debtors.

Education and the income differential: an estimation for Rawalpindi city

Abstract: Empirical tests of the human capital hypothesis-that eduCation increases an individual's income-have been undertaken in several countries with favourable results [131. These results show that (1) income differentials between individuals of different educational levels are wide; (2) the differentials establish shortly after the initial years of work and maintain through the duration of the life cycle; (3) the differentials are greater in developing countries than in developed countries; (4) the returns to education, after allowing for educational costs, exceed the returns to physical capital investment in developing countries; (5) the highest returns are to primary education; and (6) private returns exceed social returns. Which, if not all, of these results are true for Pakistan is not known. This paper yields such comparative results through an application of the human capital hypothesis to Rawalpindi City. The data for Rawalpindi are for males and derive from a socio-economic survey conducted by the Pakistan Institute of Development Economics in 1975.

The Growth of Medical Technology and Bureaucracy: Implications for Medical Care

Abstract: Despite significant differences in ideology, values, and social organization, most Western developed countries-and probably most countries in the world-face common problems of financing, organizing, and providing health care services. As populations increasingly demand medical care, there is growing concern among the governments of most nations to provide a minimal level of service to all and to decrease obvious inequalities in care. To use available technology and knowledge efficiently and effectively, certain organizational options are most desirable. Thus, there is a general tendency throughout the world to link existing services to defined population groups, to develop new and more economic ways to provide primary services to the population without too great an emphasis on technological efforts, to integrate services increasingly fragmented by specialization or a more elaborate division of labor, and to seek ways to improve the output of the delivery system with fixed inputs. Although all of these concerns to some extent characterize national planning in underdeveloped countries, they particularly describe tendencies among developed countries as they attempt to control the enormous costs of available technologies. Throughout the world there is increasing movement away from medicine as a solitary entrepreneurial activity and more emphasis on the effective development of health delivery systems. Having discussed these trends elsewhere in detail (Mechanic, 1974, 1976), what I will do here is examine how changing technology and organization affect not only the provision of medical care, but also the underlying assumptions of practitioners and patients. My thesis is that medical care constitutes a complex