Priyanka's Econ Blog

Since Rhodesia… April 25, 2010

Filed under: Uncategorized — priyanka821 @ 8:14 am

On April 18, 2010 Zimbabwe celebrated its 30th anniversary of being independent of white rule. There was real optimism at the time as Rhodesia was a war torn country, and there were high expectations for Robert Mugabe. However, clearly the economy has not be sustainable and various measures of economy, not only GDP as we have learned that it is flawed, show us that conditions may have deteriorated since Mugabe’s reign.

The graph above indicates the low GDP growth suggesting very little growth of the economy. Ever since the new millennium, the GDP has been in negative making Zimbabwe the world’s fastest shrinking economy. The lower GDP also indicates less economic growth and unstable conditions of the country.

The HIV rates, which can be used as a measure of Standard of Living, had increased and then depleted since the turn of the century. The optimists say that people started having fewer partners, however, pessimists say that the rates were falling because those infected with HIV were now dying. Regardless, thousands died each day.

By the end of the decade, the entire economy was in ruins due to droughts and unfair distribution of wealth. Teachers and doctors did not show up to work, as schools did not have text books, and hospitals had no medicine. Zimbabwe’s life expectancy is one of the lowest in the world. The infant mortality rate also suggests a decrease in population in the years to come.

Zimbabwe will face another challenging revolution before it becomes economically stable. Through the GDP and other standard of living indicators, it is clear that the civilians of Zimbabwe need help.

For further information please visit:

BBC – Thirty Years of Zimbabwe

 

Best Economy in the World? April 13, 2010

Filed under: Section 3 — priyanka821 @ 11:46 pm

Deep and I analyzed different economies of the world to determine what the best place to live would be. We determined between Luxembourg and India by using indicators of education rates, Gross Net Income per Purchasing Power Parity and standard of living as measured by the Human Development Index. Take a look at what we came up with :

1.Mine and Deep’s Voice Thread Analysis

2. Our Answer

 

Luxembourg Criteria Reflection

Filed under: Section 3 — priyanka821 @ 1:16 pm

After listening to the various presentations, I still hold my initial standpoint that Luxembourg would be a great place to live due to the education rates, GNI per PPP and standard of living (measured by Human Development Index). Another indicator I learned about from the presentations was economic stability as measured by inflation.

Inflation is when everything becomes more valuable except for money. This implies that the prices of goods and services increase over time.

From the presentations I watched, several said that a healthy inflation rate for an economy was 1-3%. One of the reasons that a healthy inflation rate is required is because it prevents deflation which can be more detrimental. Zimbabwe has an inflation rate of over 500%, and judging by its economy we can say that it is economically and politically very unsound.

As we can see in the Figure above, Luxembourg has maintained quite a healthy inflation rate over the last several years. From 2003 inflation rates have risen, however they did not sky-rocket or pass the optimum percentages. Only in 2009 we see an inflation rate that is about 3.5% which is undesirable. This is due to the global economic crisis which had economies suffering from various problems. The inflation rate as of now in 2010, seems to be very low, yet as the year progresses it is expected to rise. Since Luxembourg is also doing well with economic stability, I still believe it has the world’s best economy.

For more information please visit mine and Deep’s Voice Thread:

Best Economy in the World

 

OECD- Spain April 2, 2010

Filed under: Section 3 — priyanka821 @ 3:21 am

In the last decade the OECD nation, Spain has experienced a 3% growth in GDP and has made sincere efforts to GDP per capita of 98% of the EU average in 2004. This is due to the reforms in Spain that have created multiple job opportunities. However, “Low productivity growth, which during the last decade has been below the EU average, coupled with persistently high inflation is damaging competitiveness (Spain, 2004).”

The GDP per capita has been estimated to about $33,600 in 2007. Spain has effectively been keeping good house price statistics, for a range of areas and housing types which helps produce accurate statistics.

GDP per CAPITA IN SPAIN COMPARED TO OTHER NATIONS


As we can see from this chart, Spain does not rank very high in the GDP per Capita, it is in the middle .

GDP REAL GROWTH

As we can see from the information the real GDP increased in the last decade. However due to the economic recession, there has been a -3.60% in real GDP indicating that Spain will need to recover. The highest year of real GDP is 2007, with a growth of 3.90%.

Until 2008, Spain was regarded as one of the most dynamic economies in the EU and had attracted a lot of foreign investment. However in recent years, the major economy has been deteriorating. Even in 2010, while other OEDC’s have been growing, Spain remains in recession. In January, unemployment reached 18.8%, the highest level by far in the European Union, where the average is 9.5%. The inflated housing and construction industries indicate trouble. Spain must work on more reforms that will provide the unemployed with jobs and stimulate the economy.

Read more:

Spain’s economy