The percentage of humanity living in low income countries was reduced by 80% in twelve years. The portion of the world's population living in low income countries shrank from 60% in 1998 to 12% in 2010. Low income countries have per person gross national output less than $1035, measured in 2012 US dollars. Click here for the video version.
Bill Gates has stirred controversy by claiming that by 2035 there will be almost no low income nations. He is probably right. The percentage of the world's population living in low income countries was reduced from 60% to 12% in the 12 years from 1998 to 2010. The low income countries continue to grow rapidly and so most should make it past the middle income threshold of 1035 US dollars (2012 value) before 2035. Here is a link to the essay where Bill Gates' made the claim. This is my essay in support of Bill Gates' position.
In the first 11 years of the new millennium the growth rate of the developing world was twice as fast as it was in the final decade of the last millennium. I think this rapid growth will continue and perhaps accelerate.
The tide has definitely shifted. As more and more countries move into to developed status and a larger portion of the world's population becomes rich the market for the poor man's labor is improving rapidly. The growth of China and other richer developing countries fosters the growth of the poorer. Read a newer analysis of the end of the Third World.
A collection of various economic statistics comparing China and US We are in an era where both the US and China lead by different measures. Learn who leads in what area.
Why is light industry so important to rapid Third World growth? Factory owners can get into light industry, make a quick profit, and move on up to more sophisticated industries, thus allowing quick growth. As growth is change, if you want rapid growth, you need to live with rapid change.
Why natural resource rich nations have such difficulty growing. The economics of natural resource export slow growth, it is not principally an issue of bad politics, or inferior culture, and the natural resources handicap will not last forever.
The addition of new factories drives up wages and drives down the price of farm land which in turn encourages family farms. Furthermore, each new factory tends to drive up wages for all the other factories, and everyone else who hires labor. Therefore the new factory benefits labor, though in many cases the benefits to the workers who work at the new factory are marginal.
Here is a YouTube video I created in response to a video by The School of Life, Why Some Countries Are Poor and Others Rich. Their video is filled with errors and blames culture, religion, and other factors for poverty. It has about one and three quarters million views at this writing. I point out the errors and use arguments from the above web pages to correct their errors.
Developed democracies are stable and never fight each other, so a world of developed democracies will be a world at peace. The West is reasonable in wanting everyone to be at least a little like the West.
Why do middle income voters support the Republicans in general and Trump in particular? There maybe more logic to it than many pundits care to admit.
When you correct for differences in prices America is more productive than almost all other oil importing countries. What is our secret? Violent Street Crime the Secret to America's economic super success.
Economists are interested in geography and statistics so this page on names for communities, like, city, town, village, is distantly related to economics.
I was a graduate and undergraduate economics student at the same time as Paul Krugman. Paul Krugman mostly preaches that old time economics that we were taught back then. So of course I am a Krugman fan on economic issues. Here is my Ode to Paul Krugman
For more than a decade this site has been near the top of the Google rankings for AM radio reception.
Last updated August 25, 2016