Dear Jenny,

Believe it or not there are TWO McDonalds Restaurants here in Tbilisi and
whilst the menu is in Georgian it is largely the same fare as everywhere
else. Nevertheless, as far as I can tell, the Big Mac index does NOT apply
here. Last time a couple of us did the calculations we found that the index
suggested that the currency was grossly undervalued: not the optimal result
I'm afraid.

Maybe someone else can blow the gaff on that too?

Incidentally, given that I'm in the development business, people often ask
me how Georgia's doing and my answer is as follows: rip up your text books
for this one.

As I assess the state of an Economy I look at

1 what young ladies are wearing: dresses, coats and shoes ... they happily
pile right into the latest fashions from the television and magazines asap.
Sorry to say that young men are nowhere near as reliable as young women in
this respect!
2 what people are driving ... whether bought honestly, smuggled or stolen,
the number of foreign cars on the streets is a good indicator of wealth
creation
3 how many companies/people are building or repairing buildings ... new
buildings most definitely indicate wealth since they represent long term
capital; and once individuals have satisfied Abraham Maslow and then bought
their new clothes and cars, they move onto home improvements.

Why don't I give you an answer based on more traditional indicators? The
answer is they are pretty well useless. I know from dealing with my staff,
businessmen and government officials that absolutely nothing is reliable!

Duncan


----- Original Message -----
From: "Jenny Wales" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Friday, October 19, 2001 2:03 PM
Subject: Re: Economic Development


> Duncan
>
> Thanks for your contribution. Are there anymore subscribers that can add
to
> the reality of living on $2 a day? There are books full of data on this
> field but its hard to communicate to students - because it is so far
beyond
> their experience. The Economists Big Mac Index is always interesting but a
> McDonalds burger is not always a useful yardstick.
>
> It would be great to have some comparative break-downs of what $2 will buy
> in different parts of the world.
>
> There is so much emotive stuff that is not backed up with any firm facts
or
> data. I fear that Citizenship may exacerbate the problem as many
> non-experts will be dealing with these issues.
>
> Jenny
>
>
> At 11:15 19/10/01 +0500, you wrote:
> >Richard, hope you don't mind me keeping this on line for this one.
> >
> >I'd like to suggest that you start with a debate on the meaning of
> >poverty. Please read the following very carefully as it is meant to
> >spark off a constructive debate rather than being an anti Western
> >diatribe.
> >
> >Having lived in developing countries since 1988 now I have to say that
> >one of the problems with development assistance is that we in the
> >developed world usually begin our efforts by imposing our own thoughts
> >and values on the rest of the planet. What this means is that
> >development policy often starts by feeling sorry for someone because
> >they live on less than $2 a day. (From Richard's Wood Green site: a
> >quote from WRD 2000 Attacking Poverty).
> >
> >Whilst $2 a day is not a lot of money, how many of us know what $2 a day
> >here in Tbilisi, Georgia can buy? How sorry should we be for someone
> >living on $2 a day? Does this amount of money signify abject poverty,
> >poverty, enough to get by on ... ?
> >
> >The problem is that *we* simply could not live on $2 a day and cannot
> >conceive of anyone else doing so either. In the case of Georgia where
> >living quarters are still essentially free of charge for the vast
> >majority, for Georgians there are no mortgages and there is no rent so
> >at the simplest level, living costs comprise food, heat and light,
> >clothing.
> >
> >However, if we follow through development policies, they include such
> >things as corporate governance and the internationalisation of
> >accounting standards ... yet electricity and water shortages abound, the
> >roads are often in a parlous state, smuggling of many, many goods is
> >rife and this impacts on tax/customs duties and jobs for Georgians,
> >corruption flourishes at all levels of society. Let me tell you that
> >since perestroika, the US government alone has donated $1 billion to
> >Georgia and still there is a huge amount more to do.
> >
> >My thesis is that international aid starts at the top and works its way
> >down yet the needs of the majority start at the bottom and work their
> >way up. If we take the contents page of Eliminating "World Poverty:
> >Making Globalisation Work for the Poor" a White Paper on International
> >Development (link on Richard's site) as indicative of the order in which
> >the UK government intends to implement its development policies, you
> >will see what I mean. This White Paper contains many laudable ideals and
> >targets but I wonder about the political will to achieve those targets,
> >especially now as the US and UK foreign policy machines, among others,
> >have suddenly changed direction following the horrors of the destruction
> >of the World Trade Centre in September.
> >
> >You could start by getting your students to find out what it means to
> >live on $2 a day in various parts of the world; then find out what the
> >World Bank, the IMF, the DFID, USAID and so on have done and are doing
> >to help countries to help themselves ... I'll be happy to help if you
> >need info on Georgia!
> >
> >As a matter of interest, if I were to spend $2 a day on fruit, veg,
> >bread, cereals, milk and tea, for example, and consume it all, I would
> >be absolutely bloated by now.
> >
> >
> >
> >Duncan Williamson
> >
> >
> >
> >-----Original Message-----
> >From: Richard Young [mailto:[log in to unmask]]
> >Sent: Friday, 19 m10 2001 9:26
> >To: [log in to unmask]
> >Subject: Economic Development
> >
> >
> >I find the Economics of Development module the hardest to teach
> >
> >In particular:
> >
> >* Strategies for encouraging students to think critically and
> >evaluatively
> >about theory and policy
> >* Finding good case studies. I love the Biz/ed Virtual Development
> >* Knowing how much detail to teach on theories
> >
> >So anyone out there in a similar situation let's chat OFFLINE?
> >
> >Finally have you seen the free ebook on Development from the World Bank.
> >See
> >http://www.woodgreen.oxon.sch.uk/economics/ec_develop.htm for a link
> >
> >
> >
> >Regards
> >
> >Richard Young
> >Business Studies, Economics & ICT Teacher
> >Wood Green School
> >Woodstock Road
> >Witney OX28 1DX
> >
> >Tel 01993 702355
> >Fax 01993 708662
> >
> >www.woodgreen.oxon.sch.uk
> >BECTa/Guardian Secondary School Web Site of the Year 2001
> >[log in to unmask]
> >
> Jenny Wales
> Co-Director
> Nuffield Economics and Business Project