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Why are some countries rich/poor? How can we reduce poverty? What about Capitalism?

Why are some countries rich/poor? How can we reduce poverty? What about Capitalism?. Joke of the Evening. Why are some countries rich/poor? How can we reduce poverty? What about Capitalism ?. The Wealth of Nations. The Wealth of Nations.

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Why are some countries rich/poor? How can we reduce poverty? What about Capitalism?

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  1. Why are some countries rich/poor? How can we reduce poverty? What about Capitalism?

  2. Joke of the Evening

  3. Why are some countries rich/poor? How can we reduce poverty? What about Capitalism?

  4. The Wealth of Nations The Wealth of Nations

  5. Real Gross Domestic Product Per Capita (1990 $) Sources: Development Centre Studies The World Economy: Historical Statistics, Maddison 2003. World Population, GDP and Per Capita GDP, 1-2003 AD, Maddison, 2007, http://www.ggdc.net/maddison/ and http://www.ggdc.net/MADDISON/oriindex.htm for 2008 data

  6. Source: World Bank Poverty Data www.worldbank.org

  7. Poverty Fact The number of extreme poor hasdeclined by 740 millionsince 1981What factors contributed to this decline?

  8. Economic Growth offers a way out! Source: World Bank Poverty and Inequality Databasehttp://databank.worldbank.org/Data/Views/Reports/TableView.aspx (April 30, 2012)

  9. Some Good News in Africa Source: World Bank Poverty and Inequality Databasehttp://databank.worldbank.org/Data/Views/Reports/TableView.aspx (April 30, 2012)

  10. Institutions Matter • Let’s define CAPITALISM as having the RIGHTINSTITUTIONS in place. • Rule of Law • Private Property Rights • Open, Competitive Markets • Entrepreneurship and Innovation

  11. Institutions Shape Incentives Douglass North Nobel Prize in Economics 1993 Capitalism“A particular set of institutions governing the production and exchange of goods and services.”

  12. Institutional Variation Less Open practice varies along continuum More Open

  13. Measurement: Fraser Institute Economic Freedom: Size of government and taxation Protection of private property and the rule of law Soundness of money Trade regulation and tariffs Regulation of business, labor and capital markets 32

  14. Background: Economic Freedom Project 25 year project Transparency is a highly valued part of the project Based entirely on third party data from World Bank, International Monetary Fund (IMF), Global Competitiveness Report, etc. (based on both objective and survey data) They rank 144 countries representing 95% of the world’s population according to the extent to which they permit their citizens to be economically free 33

  15. World Average Economic Freedom Over Time Source: The Fraser Institute, 2012

  16. Per Capita Income and Economic Freedom Quartile Most Free ……………. Least Free Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013

  17. Growth in Developing Nations Per Capita and Economic Freedom Quartile % Most Free ……………. Least Free Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013.

  18. Income Share of the Poorest 10% and Economic Freedom Most Free ……………. Least Free Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013.

  19. Income of the Poorest 10% and Economic Freedom Most Free ……………. Least Free Sources: The Fraser Institute; The World Bank, World Development Indicators, 2012.

  20. Consider the “slice of pie” Source: World Development Indicators, 2011.

  21. Economic Freedom and Poverty

  22. Life Expectancy at Birth and Economic Freedom Quartiles Most Free ……………. Least Free Sources: The Fraser Institute; The World Bank, World Development Indicators, 2013.

  23. Economic Freedom and Quality of Health Care, 2009

  24. Literacy & Economic Freedom Quartiles (% of population) Male Female Most Free ……………. Least Free Sources: The Fraser Institute; World Development Indicators 2013

  25. Economic Freedom and Educational Quality, 2009

  26. Economic Freedom and Political RightsLow scores indicate high level of rights Most Free ……………. Least Free Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2013, available at http://www.freedomhouse.org/.

  27. Economic Freedom and Civil RightsLow scores indicate high level of rights Most Free ……………. Least Free Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2013, available at http://www.freedomhouse.org/.

  28. Economic Freedom and CorruptionHigh scores indicate low corruption Most Free ……………. Least Free Sources: The Fraser Institute; Transparency International, Corruption Perceptions Index, 2012 available at http://www.transparency.org.

  29. Overall Economic Freedom Index and the Bottom 10 Source: The Fraser Institute, 2012

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