I think these graphs are really interesting. These positive numbers do bring hope that world poverty is shrinking, however I don't think it is as much as this article makes it out to be. I think a major part in this analysis is the fact that China, in recent years, has changed some policies and those living in poverty in China have decreased. With such a large population, China can affect these world numbers.
The graph of the extreme poverty per region showed the most significant change in poverty came from east asian developing countries
That makes sense, even based on the principles of economics. First, globalization helps each nation to focus on their comparative advantages, which means boosting the productivity. Due to increase of productivity, people around the world will have better lives than before. The graphs really imply how technological development activating globalization helps out people around the world.
The map of commodity importers and exporters is really fascinating. Most of developed countries, including the US and most of European countries, fall for 10>NX>0, along with two supergiants among developing countries India and China. It makes sense that how the economy of most of the developing countries fluctuate along with the commodity prices because they are the exporters. It is interesting that it contradicts to the basic macroeconomic theory that the greater the exports the country takes, the greater output they would have. However, I'm not sure if globalization is actually beneficial for the developing countries, as they will be more hurt by global shocks as they open up more.
I think these graphs are really interesting. These positive numbers do bring hope that world poverty is shrinking, however I don't think it is as much as this article makes it out to be. I think a major part in this analysis is the fact that China, in recent years, has changed some policies and those living in poverty in China have decreased. With such a large population, China can affect these world numbers.
ReplyDeleteThe graph of the extreme poverty per region showed the most significant change in poverty came from east asian developing countries
That makes sense, even based on the principles of economics. First, globalization helps each nation to focus on their comparative advantages, which means boosting the productivity. Due to increase of productivity, people around the world will have better lives than before. The graphs really imply how technological development activating globalization helps out people around the world.
ReplyDeleteThe map of commodity importers and exporters is really fascinating. Most of developed countries, including the US and most of European countries, fall for 10>NX>0, along with two supergiants among developing countries India and China. It makes sense that how the economy of most of the developing countries fluctuate along with the commodity prices because they are the exporters. It is interesting that it contradicts to the basic macroeconomic theory that the greater the exports the country takes, the greater output they would have. However, I'm not sure if globalization is actually beneficial for the developing countries, as they will be more hurt by global shocks as they open up more.
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