development economics 2

Poverty descriptions
1. Absolute poverty-In order to survive from this poverty type , person must afford providing the minimum necessity to live on.
Minimum calorie amount which is 2700  ckal,and other stuffs like cloth , home,etc.
2.Relative poverty-There is always minimum salary limit or minimum cost of living in every society. If person earns less than those limits , that person belongs to relative poverty class.
3. Subjective poverty -it is measured by questionnaire made connection between level welfare and income level.
4.Human poverty-person doesn't have opportunity and options for sufferable life standard.This poverty exists including insufficient health care service ,  lack of pure drink water, education service is not enough, and lifespan is not that long compare to other developed country citizens.
Then have you ever wondered if those developing countries have a chance to catch up with rapid world development? but it seems to me impossible like turtle and rabbit competition for running. Let's see :)

we call difference between countries according to personal income statement " Development gap ".
What a kind of world are we living in ? /2009/
%16 Percent of world population lives in developed countries but they own % 72 percent of world trade / import+export/. We can classify these countries into 3 categories : European union
NAFTA -North American Free Trade Area- USA , Mexico , Canada
Japan and Far East countries .
By time passing , it has become more difficult to fill the " development gap " since developed countries are majoring in science and technology more and more , their productivity and personal income is increasing more and more. But economist didn't give up on hope of catching up  and they offered 3 kind of mechanism to developing countries.
Let's see what they offered
1.Developed countries-D.C invest a lot of money to create a new technology and let science to flowerish. On the other hand , there is developing country- U.D.C which didn't invest any money. With time passing technology innovated by D.C become outdated and old , they are again in search for  a new High- Tech. At that moment , chance to use former technology at reasonable cheap budget comes to U.D.C. More difference of costs to reach to the High - Tech get bigger , more advantage underdeveloped country can take from the situation.
2. Developed countries concentrate their resource on more High - Tech and Science At that time , underdeveloped countries will have opportunity to fill out  empty space created by developed country in agriculture and more traditional field.
3. In developing countries , they are more in need of Capital , high tech and science , So one investment in those field can bring increasing returns to scale. But in developed countries , they have flock of tech , science innovations. So even one new thing happens it can have a decreasing return to scale . So there's a chance to catch up for U.D.C.
IN next lesson i will tell about a few approaches to catching up in more details