The Relatively Recent Arrival of Economic Growth

Lục Văn Hai_Trung-Anh The effect of economic growth on my city My hometown is Son Duong the district of Tuyen Quang province. If is 60kmsfrom my home to Hanoi.There are a big change about the face of my city since the growth of economic was pushed up in 1998, such us, many big houses are risen up, the roads are opened widely, and people become richer or some thing like that. Especially, there are two major effects of economic growth, that are the urban expansion, and the improvement of living standard. The first effect of economic growth is urbanization is happening fast.Son Duong now is far different from the ten-year ago.The center has been transformed strongly where used to be narrow streets lined by one-story houses, but now there are many buildings are built at there. Besides, the roads are opened and lengthened, thus they expect the heavy traffic everyday. In addition, the south east of city is the big expert processing zone, and shopping area where are hard to think that used to be a field. Another effect is the development of economy is nonstop and it creats the condition of farmland is less and less., because of the need building houses,, public services, and the opening of industrial areas, so the worth of farmland is high and higher.As a result of land values is risen a lot, people become richer and richer by selling their fields.And they could perchase private cars, buy big houses anh beautiful furnishings, so that their living standard is improved much.Furthermore, there are many trade-schools are contrusted here where people are trained some skills of many kinds of work, so the youth easily look for a good job, such us, shop assistant, secretary,worker etc.In the same way, there are many hotels, restaurants, and café are appeared at everywhere, so that people could go to restaurants instead of they usually have meal at home. In conclussion, the economic growth on my city has created many changes for his face, that is urbanization is pushed up Lục Văn Hai_Trung-Anh strongly, and many buildings and big houses are grown up a lot.Morever, the growth of economy has given a lot of advantages by making people richer, healther, and freer to enjoy their lives.I always pride of my city whenever I talk about him.I wished that could work at my hometown after finishing at university. The Relatively Recent Arrival of Economic Growth The Relatively Recent Arrival of Economic Growth By: OpenStaxCollege Let’s begin with a brief overview of the spectacular patterns of economic growth around the world in the last two centuries, commonly referred to as the period of modern economic growth (Later in the chapter we will discuss lower rates of economic growth and some key ingredients for economic progress.) Rapid and sustained economic growth is a relatively recent experience for the human race Before the last two centuries, although rulers, nobles, and conquerors could afford some extravagances and although economies rose above the subsistence level, the average person’s standard of living had not changed much for centuries Progressive, powerful economic and institutional changes started to have a significant effect in the late eighteenth and early nineteenth centuries According to the Dutch economic historian Jan Luiten van Zanden, slavery-based societies, favorable demographics, global trading routes, and standardized trading institutions that spread with different empires set the stage for the Industrial Revolution to succeed The Industrial Revolution refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s Ingenious machines—the steam engine, the power loom, and the steam locomotive—performed tasks that otherwise would have taken vast numbers of workers to The Industrial Revolution began in Great Britain, and soon spread to the United States, Germany, and other countries The jobs for ordinary people working with these machines were often dirty and dangerous by modern standards, but the alternative jobs of that time in peasant agriculture and small-village industry were often dirty and dangerous, too The new jobs of the Industrial Revolution typically offered higher pay and a chance for social mobility A self-reinforcing cycle began: New inventions and investments generated profits, the profits provided funds for new investment and inventions, and the investments and inventions provided opportunities for further profits Slowly, a group of national economies in Europe and North America emerged from centuries of sluggishness into a period of rapid modern growth During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has 1/7 The Relatively Recent Arrival of Economic Growth averaged about 2% per year What were times like before then? Read the following Clear It Up feature for the answer What were economic conditions like before 1870? Angus Maddison, a quantitative economic historian, led the most systematic inquiry into national incomes before 1870 His methods recently have been refined and used to compile GDP per capita estimates from year C.E to 1348 [link] is an important counterpoint to most of the narrative in this chapter It shows that nations can decline as well as rise The declines in income are explained by a wide array of forces, such as epidemics, natural and weather-related disasters, the inability to govern large empires, and the remarkably slow pace of technological and institutional progress Institutions are the traditions, laws, and so on by which people in a community agree to behave and govern themselves Such institutions include marriage, religion, education, and laws of governance Institutional progress is the development and codification of these institutions to reinforce social order, and thus, economic growth One example of such an institution is the Magna Carta (Great Charter), which the English nobles forced King John to sign in 1215 The Magna Carta codified the principles of due process, whereby a free man could not be penalized unless his peers had made a lawful judgment against him This concept was later adopted by the United States in its own constitution This social order may have contributed to England’s GDP per capita in 1348, which was second to that of northern Italy In the study of economic growth, a country’s institutional framework plays a critical role [link] also shows relative global equality for almost 1,300 years After this, we begin to see significant divergence in income (not shown in table) GDP Per Capita Estimates in Current International Dollars from AD to 1348(Source: Bolt and van Zanden “The First Update of the Maddison Project ReEstimating Growth Before 1820.” 2013) Year Northern Italy Spain England Holland Byzantium Iraq Egypt Japan $800 $600 $600 $600 $700 $700 $700 - 730 - - - - - $920 $730 $402 1000 - - - - $600 $820 $600 - 1150 - - - - $580 $680 $660 $520 1280 - - - - - - $670 $527 1300 $1,588 $864 $892 - - - $610 - 1348 $1,486 $907 $919 - - - - - 2/7 The Relatively Recent Arrival of Economic Growth Another fascinating and underreported fact is the high levels of income, compared to others at that time, attained by the Islamic Empire Abbasid Caliphate—which was founded in present-day Iraq in 730 C.E At its ... DP2003/07 Has the rate of economic growth changed? Evidence and lessons for public policy Matthew D Shapiro September 2003 JEL classification: O47, O56 Discussion Paper Series ISSN 1175-4117 DP2003/07 Has the rate of economic growth changed? Evidence and lessons for public policy Abstract 1 New Zealand’s recent rate of economic growth has remained strong despite a worldwide recession. Policymakers, the press, and the public have nonetheless been concerned that New Zealand’s economic performance has lagged along some important dimensions. This paper presents some new estimates of the rate of technological change in New Zealand and compares them to similar measures for the United States and elsewhere. New Zealand has not participated in the increased pace of technological progress seen elsewhere since the mid-1990s. Technological change creates sustainable increases in income and wages. Hence, it should be an important focus of policy discussions surrounding economic growth. The paper also addresses how public policy should take into account technological change, especially given uncertainty about future prospects for its growth and the difficulties of public policy in changing its growth. 1 This paper was prepared while the author was a Professorial Fellow in Monetary Economics at the Reserve Bank of New Zealand and the Victoria University of Wellington under the auspices of the Victoria University of Wellington Foundation. He is gratefully acknowledges this support and the hospitality of these institutions and their staffs. An earlier version of this paper was presented at the Reserve Bank of New Zealand Workshop on March 21 2003 under the title “Regime Shifts in Economic Growth: Assessing the Evidence and the Response of Monetary Policy.” He thanks David Archer, Malcolm Edey, Jacek Krawczyk and participants at seminar and conference presentations for their comments. The Treasury kindly provided him a preliminary version of its industry dataset. The results are subject to revision if the source data are revised. This paper draws on joint work with Susanto Basu, John Fernald, and Yuriy Gorodnichenko. The views expressed are those of the author and do not necessarily reflect the views of the Reserve Bank of New Zealand. © Reserve Bank of New Zealand 1 Introduction The second half of the 1990s witnessed a pronounced increase in the rate of technological change in the United States and worldwide. The shallow recession of 2001/2002, the very pronounced declines in stock market values across the world, the evils of international terrorism, and the threat and outbreak of war produced considerable gloom and uncertainty for the world economic outlook. Notwithstanding these negative factors weighing on the economy and perceptions about the prospects for economic growth, the level of current economic performance is outstanding along several dimensions. • Though there is uncertainty as to whether recession has ended in the United States, output and disposable personal income are at record highs. That is, More The Politics of Economic Growth in Postwar America ROBERT M. COLLINS 1 2000 Istanbul War saw Oxford New York Athens Auckland Cape Town Chennai Karachi Kuala Lumpur Nairobi Paris 3 Bangkok Bogotá Dar es Salaam Delhi Madrid Melbourne São Paulo Singapore Buenos Aires Calcutta Florence Hong Kong Mexico City Mumbai Taipei Tokyo Toronto and associated companies in Berlin Ibadan Copyright © 2000 by Robert M. Collins Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016. Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, Design by Adam B. Bohannon 987654321 Printed in the United States of America on acid-free paper photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging–in–Publication Data Collins, Robert M. More : the politics of economic growth in postwar America / Robert M. Collins. p. cm. Includes bibliographical references and index. ISBN 0–19–504646–3 1. Wealth—United States—History—20th century. 2. United States—Economic policy. 3. United States—Economic conditions—1945–. 4. Liberalism—United States— History—20th Century. 5. National characteristics, American. I. Title. HC110.W4C65 2000 338.973—dc21 99–022524 For My Parents Contents Preface ix Acknowledgments xiii Prologue: The Ambiguity of New Deal Economics 1 1 > The Emergence of Economic Growthmanship 17 2 > The Ascendancy of Growth Liberalism 40 3 > Growth Liberalism Comes a Cropper, 1968 68 4 > Richard Nixon’s Whig Growthmanship 98 5 > The Retreat from Growth in the 1970s 132 6 > The Reagan Revolution and Antistatist Growthmanship 166 7 > Slow Drilling in Hard Boards 214 Conclusion 233 Notes 241 Index 285 A bit of personal serendipity nearly three decades ago inspired this book. In 1971 I visited Washington, D.C., and happened upon an arti- fact of the American Century that has stayed in my mind ever since. It was the so-called GNP clock, and the story behind it fascinated me. The GNP clock was an appropriately outsized toteboard full of lights and numbers that the Department of Commerce had constructed to keep track of the nation’s economic growth. The aim was to record and publicize the point at which the U.S. economy achieved a rate of growth that would, if continued for one year, yield a $1 trillion gross national product. 1 At the appropriate moment, all the bells and whistles of the Nixon administra- tion’s public relations machinery would announce to the world yet another milestone in the progress of the world’s richest economy. By prearrangement, the numbers on the board were to flash the $1 tril- lion figure at noon on a winter’s day late in 1970, at which time President Richard Nixon would usher in the economic millennium with a few cele- bratory remarks. Alas, the president’s arrival was delayed. Mild panic set in as technicians scrambled madly to turn the machine back. But the board seemed to take on a life of its own, and despite their best efforts it flashed the $1 trillion figure at 12:02. By the time Nixon finally arrived at 12:07, $2.3 million more had been added as the machine began calculating the GNP at a wildly accelerating rate. 2 Ho Chi Minh National Political Academy Nguyen Thi Khuong ROLES OF THE GOVERNMENT IN THE INTEGRATION OF ECONOMIC GROWTH WITH ECOLOGICAL ENVIRONMENT PROTECTION IN VIETNAM NOWADAYS Specialism : CNDVBC & CNDVLS Code : 62 22 80 05 SUMMARY PHD THESIS IN PHILOSOPHY Ha Noi – 2014 The work was completed at Ho Chi Minh National Academy of Politics Supervisor: 1. A.Prof.Dr. Tran Thanh 2. A.Prof.Dr. Nguyen Minh Hoan Reviewer 1:…………………………………………………………………………. Reviewer 2:…………………………………………………………………………. Reviewer 3:…………………………………………………………………………. The PhD thesis will be defensed in front of a jury and marked by at Ho Chi Minh National Academy of Politics At…: On 2014 The PhD thesis is available in National Library and the Library of Ho Chi Minh National Academy of Politics INTRODUCTION 1. The necessity of the research Human beings have entered the third millennium, and we are facing global challenges. Climate change and the degradation of natural resources, ecological environment pollution are the biggest concerns of the contemporary world. Ecological environment pollution has been changing comprehensively and deeply natural ecosystems, affecting the economic growth as well as the whole society, threatening seriously environment, energy and food security in worldwide. The root causes of global climate change and ecological environmental pollution are: the uncompleted engineering, exploiting and processing technology of natural resources; incomplete understanding of ecological environment. Especially, development policies of countries often only focus and prioritize economic growth, regardless ecological environment protection. Meaningful action of protecting the ecological environment and combating climate change is that countries need to establish harmonious relationship between economic growth and ecological environment protection. This is an inevitable demand for nations toward sustainable development in the XXI century. Like many other countries in the world, in Vietnam, due to the impact of maintaining development model in width for a long time and dependence on exploitation of natural resource and environmental factors, ecological quality has been declining rapidly. The natural ecosystem was narrowed in area and degraded in quality. And many resources are exhausted leading to risk of insufficient supply Those situations have negatively impacted on the socio- economic aspects and growth rate of the economy, threatening food security, environment security, public health and sustainable development in Vietnam. To reduce these negative impacts, in the period of renovation and reinforcement of industrialization and modernization, Vietnam Communist Party and the government have reformed the development model. Model “comprehensive development” has been presented with the major contents of “rapid, efficient and sustainable development, economic growth with the maintenance of social equality and environmental protection” [50, page 162]. Thanks to this model, Vietnamese socialist-oriented market economy has been established and strongly developed. Vietnam is regarded as the nation of high economic growth in the region. Specially, the economic achievements have helped Vietnam to make considerable progress in implementing the millennium development objectives. Such social issues as: hunger eradication, poverty alleviation, medicinal- educational-cultural development, etc. have been tackled. However, there still exist some limitations in the implementation of the new development model. Among these limitations, “the inefficiency and wastefulness in the management, exploitation and use of natural resources” [52, page 166], [the serious environmental degradation in some regions growing to the warming level” [52, page 169] have been considered the strictest ones by Vietnam Communist Party and the Government. These limitations are due to several causes, most of which are the subjective causes. The emphasis on economic growth and neglect of environmental INAUGURAL PROFESSORIAL LECTURE AN INQUIRY INTO THE CAUSES AND COSTS OF ECONOMIC GROWTH: W HA T POLICY MA KERS OF TODA Y CA N LEA RN FROM THE MUQA DDIMA H OF IBN KHA LDUN Prof Dr Syed Omar Syed Agil Razak School of Government INTRODUCTION • Economic growth has been a subject of debate and controversy in the history of western economics • Research on economic growth has increased tremendously in the past decade • However, we are also seeing economic welfare declining globally • Governments and business find that the current economic path is environmentally unsustainable OBJECTIVES OF THIS LECTURE •To elucidate the theory of economic growth and costs of economic growth in the Muqaddimah •To set the record straight on the contribution of Ibn Khaldun to the theory of economic growth and costs of economic growth •To contribute to the existing literature on the theory of economic growth and costs of economic growth from the perspective of Ibn Khaldun •Remember, You and I are here “to learn from each other” ECONOMIC GROWTH PARADIGM • • • • Economic growth is measured by real rate of growth in a country's total output of goods and services or real GDP The paradigm states that the pursuit of economic growth is a sole measure of national success The western economic growth theories evolved from Mercantilism, Physiocrates, Classical economics, Keynesians, Neoclassical to modern theories Literature on the Benefits and costs of economic growth(environment, global warming, consumerism, inflation, inequality) BENEFIT S OF ECONOMIC GROWTH IN WESTERN LITERATURE THE COSTS OF ECONOMIC GROWTH IN WESTERN LITERATURE THE COSTS OF ECONOMIC GROWTH IN WESTERN LITERATURE A DIVERGENCE OF THE GPI AND GDP WOULD SUGGEST THAT ECONOMIC GROWTH IS COMING AT THE EXPENSE OF OTHER CONTRIBUTORS TO WELL-BEING, SUCH AS ENVIRONMENTAL QUALITY OR LEISURE TIME published by the State • Report Environmental Protection Agency (SEPA ) and the National Bureau of Statistics ( NBS) re-examines China’s 2004 GDP, estimating that pollution cost the country 511.8 billion yuan (US$64 billion) in economic losses that year, or 3.05 percent of 2004’s total economic output • The economic system is a part of a larger ecological system and they are interdependent and interwoven • Economic system is connected to the ethical, environmental, social and political systems • Therefore policy makers also should consider the effects of an economic decision on other subsystems to reduce the costs of economic growth and slows down the limit to growth • Ibn Khaldun finds that ideas, human capital, innovation and technology are important for economic expansion although the limit to growth is inevitable • Ibn Khaldun focuses on man’s ability to think as an impetus to growth • Therefore intellectual development has to be nurtured in various ways including education, freedom of expression, intellectual network and discourses, and commercial exchanges and network THAILAND ECONOMIC MODEL: SUFFICIENCY ECONOMICS • Focus on sustainable profit, moderation, avoid indulging in overconsumption, ethical approach to business, role of government in alleviating poverty and guiding macroeconomic policies, careful risk management, mental and spiritual development • Raising ethical standards for economic management, getting rid of conflicts of interest and introduce transparency • This economic model was endorsed by United Nation's main development agency(UNDP) • http://www.dailynews.lk/2007/03/20/fea03.asp FINANCIAL CRISIS • Ibn Khaldun’s view: As a result of luxury habits, man is transformed from a moral individual seeking common good to a self interest economic man indulge in excessive spending causing corruption, unethical behavior, financial and economic crisis • Non economic factors affect the economy • We have to differentiate between the root cause and the symptoms ROOT CAUSE OF THE ECONOMIC CRISIS • The economic and financial crisis that have affected the global community is partly due to self interest and ... lighting -the- rocket -of- growth- and-lightening -the- toil -of- work-another-outtake-frommy-slouching-towards-utopia-ms.html 6/7 The Relatively Recent Arrival of Economic Growth Easterlin, Richard A The. .. recourse through the legal system in the event of noncompliance Economic growth occurs when 5/7 The Relatively Recent Arrival of Economic Growth the standard of living increases in an economy,... - - - - 2/7 The Relatively Recent Arrival of Economic Growth Another fascinating and underreported fact is the high levels of income, compared to others at that time, attained by the Islamic