Extra Credit Analysis Verify Economic Conditions

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Extra Credit AEDECON 4534
Verify economic conditions within the 3 Latin American clusters:
Group 1: Low innovation, no efficiency gains and poor quality education. Compare GDP growth rates, education level (average years of schooling) and inflation rates for Venezuela, Bolivia and Ecuador for two time periods. Before financial crisis (2000 – 2006) and after the crisis (2009 – 2015). Examine if the predictions of the author are true. Do education levels fall, inflation rates increase and low growth rates occur? Give 2 reasons general reasons why this is happening for these countries?
GDP growth rates,
GDP growth (annual %)VenezuelaBoliviaEcuador1999-5.970.43-4.7420003.692.511.0920013.391.684.022002-8.862.494.102003-7.762.712.72200418.294.178.21200510.324.425.2920069.874.804.40
VenezuelaBoliviaEcuador2009-3.203.360.572010-1.494.133.5320114.185.207.8720125.635.125.6420131.346.804.952014-3.895.463.7920154.860.10
Education level (average years of schooling)/
VENBOLECU20006.47.4720016.47.3720026.87.27.1200377.17.120047.27.17.220057.477.320067.67.37.3
VENBOLECU20098.37.97.920108.97.87.920119.88820129.78.38.120139.98.48.32014108.58.5201510.18.78.4
Inflation rates- Inflation, consumer prices (annual %)

VENBOLECU199923.572.1652.24200016.214.6196.09200112.531.5937.68200222.430.9312.48200331.093.347.93200421.7474.442.74200515.965.392.4120064.293.03
VENBOLECU200927.083.355.16201028.192.503.56201126.099.884.48201221.074.525.10201340.645.742.74201462.175.763.582015121.744.063.97Bolivia and Ecuador experienced economic growth in the two time periods, while Venezuela experienced negative growth and then double digit growth in both 2004 and 2005. While the three countries focused on expansionist policies, the growth in government spending in Bolivia and Ecuador grow at a slower pace than Venezuela. From 2005 Evo Morales, who regulated mineral market and increased taxation of the petroleum industry to fund social programs. Ecuador was also ruled by leftwing populist presidents who expanded the government. in 2015 under the Hug Chavez administration, the government of Venezuela spent more money and imported more food, which partly explain the rising inflation rates in the country from the new millennium.
In the case of average schooling years this increased from 7 years to 10.1 from 2000 to 2015 in Venezuela and 7.4 to 8.7 in Bolivia and 7 to 8.4 in Ecuador (World Bank). The education levels did not fall as predicted as the countries experienced growth and in particular Venezuela where the petroleum industry expanded and the country is still dependent on oil and gas. The company’s GDP and expenditure schooling was directly linked to oil boom and bust. Venezuela has had double digit inflation rates in the two periods and surpassed 100 in 2015, but inflation rate has been less than 10 for Bolivia, while Ecuador has managed to cut inflation from 96.09 in 2000 to 3.97 (World Bank).

VENBOLECU2009...