Exam 22: Developing Countries: Growth, Crisis, and Reform

Explain why despite enormous natural resources, much of Latin America's population remains in poverty and the region has been repeatedly experiencing financial crises.

While many developing countries have reformed their economies in order to imitate the success of the successful industrial economies, the process remains incomplete and most developing countries tend to be characterized by all of the following EXCEPT

For many developing countries, natural resources or agricultural commodities make up a ________ share of exports.

The Convertibility Law of April 1991 in Argentina

In developing countries, exchange rates tend to be

Which of the following does NOT explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?

In the early 1960s South Korea was an extremely poor country. However, in 1963, the country began a remarkable economic ascent. What was a direct cause of this?

Over the post-war era, the gaps between countries' living standards

Which of the following is NOT a common characteristic of a developing country?

Over the post-war era, the gaps between industrial countries' living standards

Please consider Table 22-2 below. At that Annual Average Growth Rate, how many years does it take for the output per capita to double in both the United States and South Korea.

Should the IMF be abolished? Discuss.

Which of the following countries had a larger growth rate since 1960?

How would you describe the world distribution of income?

What is the domino effect or contagion?

The main reason for the crisis in Argentina in 2001 and 2002, has to do with exchange rate policy, i.e., the continued peg of the exchange rate to the dollar. Discuss.

Evaluate the Argentinean Convertibility Law of April, 1991.

With which country did the Debt Crisis of the early 1980s begin?

Describe some of the features hindering developing countries from growing faster.

How would you define convergence?