ECON 112 Lecture 1: l
Document Summary
4 income levels (l1 to l4; l1 being the lowest) L2 and l3 = 5 bil people. Higher income countries also tend to have lighter life expectancies. Number of people above extreme poverty line are growing throughout time. 80s-90s: 1st world and 3rd world countries (big gap between 2 bulges) 90s-2000s: becomes unimodal again (main reason is india and china) Global living standards are rising; most countries getting richer. Most people live in middle income countries. But there is a group which is diverging from this trend: Aka the bottom billion; 58 countries in the group. 4 distinct traps: conflict trap: 73% of these people have been through civil war or are in one; coups; keep low income countries from growing and dependent on primary commodity exports; it"s a cycle. But not all are like that (switzerland, rwanda: bad governance in a small country: leaders of many of poorest countries in the world are among the global super rich.
