TDMT4326 – Developmental models in emerging markets Learning objectives: Make students understand why you simply can't go out and take a credit in developing markets. Discover what to do instead. LINKS 1 http://www.economist.com/node/21542931 EIU report series on state capitalism Read all if you have time 2 http://www.criticalthink.info/Phil1301/Wave3lec.htm The Third Wave - a short summary An unconventional view on economic development models Please read the characteristics of a "second wave" (Industrial economy) 1. Standardization 2. Specialization 4. Concentration of energy, money, and power. 5. Maximization 6. Centralization "There are only three major auto companies in the U.S. Two Japanese firms produce all the VCR's in the world. In each area of production--aluminum, beer, cigarettes, breakfast foods, etc.--three to five companies produce almost all of it." http://www.shmoop.com/economic-systems/mixed-economy.html impact of market control Basic Questions: What are the initial stages of economies in emerging markets. Huntering/gathering Informal Legacy economies How do you classify stuff? Controlled markets Markets with limited control Free markets Why emerging markets are different from normal economies. PEST non-Western model Two thirds of world governments are not free to any extent. Can emerging economies leapfrom into developed state. How developing economies transform? Can a developed economy backslide into undeveloped state?