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I am not familiar with Microfinance so this paper really helped me understand the topic more. My understanding of microcredit is that it is credit given to poor families and smaller businesses to help them begin to create profit in the long run.I think this paper is very interesting when talking about individuals specifically women vs men. By allowing for women to invest into the economy, more development occurs and the economy is stimulated which ultimately results in growth. In the past, women have played larger roles in the home and have spent most of their money on their children or at home accessories. Giving women microcredit is vital for economic development for those reasons alone. Women continuing to make social strides will only continue to give them more opportunities financially. My question is, have there been any significant changes to allow for women to gain easier access to microcredit programs? I feel like if these programs reach out to women as a target group, this will make them more motivated to participate in investing and putting money into the economy.
This paper was a little hard to follow and confusing for someone who does not have a lot of experience with markets and banking. I theme I did follow throughout the paper was that the United States has a big effect on other countries. The United States dollar is portrayed as a global currency as is the Euro, so any changes or decisions we make ultimately effects the whole globe. If the value of the dollar drops, so does the world market. They have a direct correlation. As the United States interest rates go up, it makes it a more appealing option to investors. As the interest rates go down, many investors turn to other options such as East Asia to invest their money. This article also talks about the Brady Plan and Tequila Crisis. I am not familiar with either of these turns but I enjoyed reading the section about the Brady Plan. The Brady Plan got inflation to drop while also strengthening problems of nonperforming debt. This plan also reduced tariffs and quotas from imports/exports which allowed expansion in the trade sector which had a spiraling effect to more income being brought into Latin American countries. More money was brought back to the markets after this policy was implement in 1989. The United States is facing high inflation at the moment and is not expected to go back down until at least the summer time. This has caused many people to cut back on spending and expenses. Not saying the United States is in the same situation as Latin America and needs a plan like the Brady Plan, but we as a nation could use it as a model to figure out how to lower inflation rates to make Americans spend money again which would result in our economy running more fluidly.
Toggle Commented Nov 18, 2021 on ... at Jolly Green General
I am honestly not that surprised by the results/findings from this paper. The rate of return on investment into education is questioned. Higher levels of education tends to have a positive effect in many aspects of peoples lives such as health and income. This article also looks at the benefits of education for women and how that can help them and a countries development. They placed an emphasis on this part of the article which I think is needed given the strides of economic development seen with more educated women. Another part of the article that stood out, we the figures and tables. The graphs and numbers illustrate all the of the points the author argues. Figures 9 and 10 do a great job of providing numbers and evidence as to why returns are higher in low income countries relative to higher income countries. The mean years of schooling in less developed areas such as Sub Saharan Africa is 5.1 years compared to that of more advanced economies which is 10.2. It is much easier for Sub Saharan Africans to have higher returns because the standards of education are half of the advanced economy.
Toggle Commented Nov 11, 2021 on For Friday's Discussion at Jolly Green General
Previous to this article, I did not have a good understanding of climate change. It was made very apparent that if the temperature changed 2 degrees Celsius, there would be many negative impacts on Earth such as crop yields decline, water resources change, diseases move into new ranges, and sea levels rise. If the temperature rose 4 degrees, this would be fatal for developing nations as a majority of them live off the environment and climate (agriculture). This would wipe out most of Africa, South America, and Asia. This issue is becoming larger and larger everyday as climate change continues to increase. The current global temperature is around 0.8 degrees Celsius higher that it was in the pre-industrial era. If this rate continues, in the next 150-200 years our planet will be facing a real issue unless we cut back and begin to strategize around this problem of climate change. I believe that many countries especially those who are undeveloped are not as worried about this problem as they should be. These countries are not necessarily looking into the future; they are looking at the present. Sustainability is key for these nations to continue to develop into the future. To reach their ultimate goals of development in the future, everyone must cut down on carbon emissions to prevent further climate change.
Toggle Commented Oct 21, 2021 on For Friday's Discussion at Jolly Green General
In my opinion, this was the most interesting article we have been assigned to read in this class. I knew South Korea had emerged with large economic growth after 1961, but I was completely unaware of how they accomplished this feat from being a poor, agricultural-based economy to a rapidly growing , intensive capital economy. I had no idea about Chaebols or what they even were. They are quite effect in sparking up the economy. It intrigues me that families can run their own businesses and have such a high rate of success and possibly be in the Top 100 range. Another major factor for the flip of economies in SK was due to a change in government policies. When Park Chung Hee rose to power in 1961, he made economic development a priority for the nation by implementing new state planning and promoting private entrepreneurship amongst his people. I am honestly very surprised that his regime's policies worked based on previous dictator's policies failing to bring their nation prosperity (i.e. Cuba under Castro did not economic flip the switch like South Korea.) There were a variety of different programs instilled to promote growth, but ultimately I think the one that caused individuals have the most success was when the government sent them money to start and spark up their local businesses. The government also monitored how each used their money to make sure the funds were used in the right manner. This enabled small businesses to flourish and turned out to be a wonderful idea. Overall, it is pretty amazing that South Korea was able to switch their economy in such a short period of time but is also remarkable that it was under a authoritarian regime. This makes me wonder though, could a democracy do the same thing? The babysitting the government did to the funds provided to the small business owners would not happen in a country like the United States where you can spend your money freely on whatever you desire. I feel like this had a major effect on their economic growth.
The most fascinating part of this article in my opinion revolves around the how Hirschman took a different approach to development economics. Generally, most of the information we learn in economics is shown around different graphs and models with a variety of explanations for shifts and constants in the drawings. This makes good use for learning because it shows students visually what is going on. Hirschman turned away from models during his work in development economics and focused on the topic from a new point of view. This change in approach allows for him to throw all assumptions aside and just focus on his own work. If we were to carry this approach into our economics class would we struggle or have success? This question is up in the air but it is interesting to see work done from a perspective without graphs and models. I definitely think models are crucial but it was nice to see someone look at a topic from this alternative perspective.
Toggle Commented Sep 23, 2021 on Krugman for Friday at Jolly Green General
Before I read this article, I was completely unknowing of the many attempts that have happened in the past 30 or so years to improve environmental concerns, poverty, and to greater gender equality. Millennium Development Goals (MDG’s) and Sustainable Development Goals (SDG’s) are discussed in depth including their pros and cons. I actually really liked the idea behind MDGs and how they work but SDGs are the next phase and evolution of them. A perfect example of this is if you look at China. How has China risen? Well if you look into it shallowly, it is pretty obvious that many U.S. businesses like Apple and Nike take their production lines over to China because the labor is so cheap. If you look at this situation from the poverty side then that makes them more revenue but also having more factories results in more pollutants in the air. This has also made China more relaxed and not strict on environmental protection laws. So in this situation there are pros and cons. The pros being more profit and economic success while the living conditions and air quality go down the drain. However, I am not a big believer in MDGs being the big reason for countries poverty rates dropping compared to some other optimistic people. Countries in poverty definitely have different motives than that. I am also worried about the carry through with SDGs in developed and developing countries. More developed countries will most likely not use them because why would they want to be set to an international standard to be set for them? The U.S. has also backed out of international standards that were set before. Overall, I think SDGs should be used by undeveloped nations with high rates of poverty but realistically I think the standard set will be ignored or pushed to the side. This article is very intriguing and made me more aware of what exactly MDGs and SDGs are.
A quote that I thought was very meaningful during the article was, “a self-motivated and well-informed population is usually for more powerful and effective than a policed, ignorant population.” This quote stuck out to me because I believe exactly what it states. I think people will be more motivated to stop the virus and quarantine by themselves than if the government is forcing them to take their temperatures and policing them 24/7 with drones or some type of surveillance. I also agree that a major contributing part to the spread of the virus is travel. The United States should have shut down international flights and travel a month ago. But now that CoVid-19 is in every state in America, we should cancel flights all together. This would eliminate the spread and exposure of people to the Coronavirus. If as a globe, we all abide by this policy, it could save millions of people and also prevent millions from contracting the virus. Yes, many businessmen would be upset because they cannot reach clients overseas but their safety and well-being should be prioritized over reaching new deals.
Toggle Commented Apr 2, 2020 on ECON 100 at Jolly Green General
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Apr 2, 2020