RMI 2302 STUDY GUIDE Final Dr Charles Nyce By James Houghaboom MODULE 10B World Poverty And Economics Insatiable Wants Needs Food Water Shelter Wants Travel Variety Entertainment Our Limited Means Resources Technology Labor Capital The Capacity of the Economy to Produce GDP Economic Pie Primary Measure of production Total value of production using market prices Two ways to increase GDP Increases Production Increase Prices Production Possibilities and technology to produce Every economy has a stock of resources labor Capital Combinations are virtually limited less PPC Production Possibility Curve Below Economic Growth a entire curve moves growth in both b c Specific growth only one item grows Other stays the same Can Government vs GDP to measure well being Are we producing more Real GDP Are we using more labor resources Per Capita real GDP Income Distribution The poor get poorer and the rich get richer The poor in undeveloped countries are poorer than the poor in developed countries What Causes Poverty Quality of the labor force Population Efficiency Technology Stock of Capital Capital Accumulation What can Government Do Less Developed Countries Communism vs Capitalism Attract FDI Foreign Direct Investment Planned vs unplanned economy Involvement in education Infrastructure Developed Countries Humanitarian aid World Bank loans Outsourcing Partnerships Cooperation MODULE 11 Part 1 Underlying Themes of Global Risk Report Trust Long Term Thinking Collaborative Multistakeholder Action Global Governance Global Risk occurrence that causes significant negative impact for several countries and industries over a time frame of up to 10 years Systemic Risk breakdowns in an entire system as opposed to breakdowns in individual parts or components Global Risk Categories Economic Environmental Geopolitical Societal Technological Risk Analysis 3 Parameters Highest Concern qualitative Likelihood and impact quantitative Interdependencies systemic Top 10 Highest Global Risks 1 Fiscal Crisis in Key Economies 2 Structurally High Unemployment Underemployment 3 Water Crises 4 Severe Income Disparity 5 Failure of Climate Change Mitigation Adaptation 6 Greater Incidence of Extreme Weather Events 7 Global Governance Failure 8 Food Crises 9 Failure of a Major Financial Mechanism Institution 10 Profound Political and Social Instability Major 3 of the Global risks Fiscal Crises Causes Water Crises Lack of confidence High level of government debt Not being able to feed give water to your people Impact of food availability and Prices Not just in 3rd world countries ex Florida accusing Georgia of taking too much water from the lake they share Climate Change Economic growth vs Climate Change Vulnerability who can adapt best Wealthier Countries Cost 100B per year for developing countries Time 100 years until poorest countries can adapt as well as we USA can today Trends To Watch 1 Demographic Trends aging 2 Societal Concerns extremism youth unemployment gender inequalities 3 Technological privacy mismanagement 4 Environmental fracking 5 Science Technology 3 D printing self drive vehicles 6 Economic monetary policy 7 Social Political cost of living longer MODULE 11 Part 2 Risks in Focus Three specific Risk Foci Geopolitical Risks Instabilities in an increasingly multipolar world Youth Risks Generations lost Cyber Risks Digital Disintegration Geopolitical Risks Low level conflicts Geopolitics Systemic Sectors Energy US as exporter Financial Services Healthcare Youth Risks Education Unemployment If you can t get a job how do you support elderly ex Spain Greece 50 youth unemployment professional vs Formal Education maybe not everyone should be in college Ex auto mechanic Youth dissatisfaction politics Cyber Risks Digital Disintegration So far cyberspace has proven resilient Cyber warfare Smart Grid ex internet goes down so does water etc Global Navigation Satellite Systems GNSS ex 911 calls Snowden Disruptive Technologies Strategy for Managing Global Risks 1 The trade offs 2 Public Private Partnerships 3 Long Term Thinking 4 Large Scale Disasters MODULE 12 Natural Disasters What makes a disaster Fatalities damage economic effects No clear difference between great natural disaster and Death toll damage effect on economy ex Haiti Earthquake killed 230 000 natural disaster The Role of Government in Natural Disasters Gregory van der Vink study 80 of deaths from disasters in 15 countries less developed places more risk because they have a ex china Bangladesh Indonesia higher chance of disasters Location Location Location Human Responses to Disasters People tend to be altruistic in times of emergency Creates incentives in non emergency times Altruism People helping others in a time of need Economic Losses insured losses only a portion of economic losses higher in developed countries Analyzing Natural Hazard Risk Probability Frequency magnitude events happened again return period how many years between similar Magnitude how bad the event will be Inverse relationship Tornado Alley new Iowa Florida Louisiana Windstorm Exposure Evaluate Alternatives ex dice There is no randomness just things we can t predict yet Can t stop natural hazards Resilience How we can bounce back after disaster Mitigation Actions to eliminate or reduce future deaths losses etc from natural hazards ex Engineering psychical social political Increasing population growth manipulating environment Top of Increase in population growth food chain Lower infant mortality rates Longer life lower death rates in younger years Population explosion varies with economic development urbanization Demographic Transition Pre transition high birth death rates population maintenance most of human history Exponential Growth population explosion 1700 2000 Transition low death rates and high birth rates Post Transition developed nations low death rates and birth rates population maintenance Big Population Problems unknown unknown Better science but that does not mean we know the Carrying capacity The ability of the environment to support a population Making Progress in Addressing Disasters Report Natural Hazards Great disasters megadisasters are actually very concentrated Poor Countries High Share of Risk Greater economic losses Least Resilient Leads to real poverty Risk Not Evenly Distributed Biggest exposure small islands and landlocked developing Potential losses relative to wealth development GDP countries Disaster Risk Drivers Poor urban governance location of
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