The Political Economy of Development

Why are we so rich and they so poor?

• Geographic factors
• Institutions
  • Inclusive
  • Extractive
• Regime type

Closer Look at the BRICS

• Brazil, Russia, India, China and South Africa

• Very different countries, similar outcomes

Demographics and Growth

• Population is a key element of growth
• Reallocation effect: movement from the informal to the formal sector

Regime Type

• Brazil: presidential democracy
  • State capitalism with ‘minority ownership’
• Russia: hybrid regime
  • State capitalism with heavy government involvement
• India: parliamentary democracy
  • Fairly liberal economic policies
• China: authoritarian regime
  • State capitalism with lots of FDI
• South Africa: parliamentary democracy
  • Liberalism with lots of FDI

Investment Promotion

Education

Research and Development

High Technology Exports

NASDAQ listed companies

• Brazil: 7
• Russia: 2
• India: 3
• China: 248
• South Africa: 1

Poverty

Inequality

Inequality Trends

Democratic Success Stories

• Brazil

• Kerala

• Korea & Taiwan

Discussion

• Are the BRICS as a group likely to challenge the dominance of Western institutions like the IMF and WTO? (Besson & Zeng)

• What is the future of U.S.- China Relations? Will the two countries continue to be strong trading partners? (PBS Frontline)

Conclusion