Contrast the characteristics of economic growth in the HEAP with those characteristics of Latin America. Shared growth, rising economic quality, rapid accumulation of physical and human capital, rapid growth of manufactured exports, and stable macroeconomic environments. 2. How can passage through a demographic lead to high savings and investment rates. Increases the ratio of economically active to the total population. This creates a larger pool of income out of which savings and investment can take place. 3. What are the characteristics of East Asian institutional environments that contributed to rapid economic growth.

Falling inequality, accumulation of physical and human capital, sound macroeconomic fundamentals, promotion of exports. 4. Economists are divided over the effectiveness of east Asian industrial politics. Inflation is kept under control and budget deficits and foreign debt are kept within the boundaries defined by the governments and the economy ability to finance them. 5. How might manufactured exports contribute to economic growth. These policies largely succeeded although the mechanisms that link export growth to faster gap growth are still uncertain. 1 . How are the BRICK economies alike?

How are they different. All of the Brick have undertaken extensive economic reforms and have achieved high rates of economic growth. China’s economy is the largest followed by Brazil, India, and Russia. 2. Describe the process of Chinese reforms from their beginning in 1978 up until China’s accession to the WTFO. Initial reforms were made in agriculture, followed by creation of special economic zones, and a lengthy period of negotiations that solidified China’s commitment to an open economy. 3. What were the factors that led to economic reform in India, and were the main elements of the reforms.

The factors were the crisis of 1991 , the fall of the USSR, and thru primary changes that occurred dealt with the permitting process. 4. Why did economic reform in Russia and most other transition economies lead to large declines in their GAP. This as due to the wide variety of nee institutional structures. The infant mortality rate increased dramatically and birth rates fell below replacement levels. 5. Why did Brazil begin its reforms when it did? What were its main challenges? Brazil began its reforms as a result of high inflation, failure of successive governments, and stagnant GAP per capita growth.