Transcript Development

What is Development?
What does it mean to be rich and
how do you get rich?
Jared Diamond’s (Yalu’s) question
• Eurasian superiority of plants and animals
for domestication
• orientation of continents
Jeffrey Sachs on Africa
• tropical climate and disease
• lack of navigable rivers
David Landes’ explanation
• culture
Example of China
• After 1433 Chinese emperor abandons the
“Treasure Fleet”, leaving trade and
exploration
Modernization theory
• on different points of the same path
undeveloped
Semi-developed
Highly developed
Dependency theory
• Europe’s early advantage continues to stunt
the development of poorer countries
• trapped providing resources and agricultural
goods to rich world
• scissors effect
industrial goods
resources and agricultural goods
Counter example: the “tigers”, etc
• Korea, Taiwan, Hong Kong, Singapore
• then others--Thailand, Philippines,
Indonesia, Chile, Ireland
• India, China
how did they do this?
• industrialization by little steps
• example of Japanese car makers
• toys and textiles
• Initially protected industries, quickly
subjected to competition for the world
market—”export-led growth”
What is Development?
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Measuring development:
GDP
PPP
GNH
HDI
• includes life expectancy, literacy, and schooling as well as income
World HDI rankings
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Norway
Iceland
Australia
Luxembourg
Canada
Sweden
Switzerland
Ireland
Belgium
United States
Is the world getting richer or poorer?
• Richer
• Long term global welfare improving with
respect to average life expectancy, infant
mortality, income, calories consumed, etc.
• But some regions have experienced declines
in recent years
Sub-Saharan Africa the exception
Moreover, global inequality
increased
• 1948 developing world per capita GDP-$100, US--$1,600
• 1993 developing world—$1,100, US-$25,000
• Similar trends in child mortality, education,
etc.
What about within country
inequality?
What is the role of AID to the
poor countries
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American aid:
first or second biggest contributor
low percentage--.1-.2% of GDP
often given to mid-income countries-politics
Millennium Development Goals
• by 2015 halve the number living on $1 a
day
• universal primary ed
• eliminate gender discrimination in 1ary and
2ndry ed
• reduce by 2/3 child mortality, maternal
• reverse spread of AIDS, malaria
• halve those w/o access to clean water
Millennium Development Goals
• raise North’s contribution to .7% GNP
• Jeffrey Sachs’ position:
• 1000s of underfinanced programs in health,
education, infrastructure
• critics: there is no capacity to productively
spend large increases
Debt Relief
Since mid 90s, a major issue, with roughly 30
countries receiving relief
Remittances
• More important than aid?--over $100
billion, especially to Mexico, Philippines,
and India
Women in the Muslim world
• Places w/ low female ed., rights, are poor
• Turkey under Ataturk
• 1920s women gained basic rights , and was first country with women
on high court, and one of the first with a female PM
• Tunisia with independence 1956
• Banned polygamy, marriage age to 17, consent for
marriage, women can request divorce, etc.
• Tunisia’s better literacy, lower birth rates have propelled it
past neighboring countries
• Qatar—since ’99 women and men vote and run,
majority college students female
• Kuwait—voting in 2005
Cont’d
• Saudi Arabia
• Women treated as minors
• But playing increasing role in politics, ed, and business
• Afghanistan
• Less than 20% female literacy
• Ed improved since Taliban gone, but minimally funded
• Iraq
• The status of women could deteriorate since fall of
Saddam’s secular regime
Micro lending
• Grameen Bank has expanded since 70’s—
has 6 million borrowers in Bangladesh, 96%
women
Trade more than aid
• developed countries still protect their
markets from poor country goods--sugar,
cotton, tobacco, etc.