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Matakuliah
Tahun
: <<EKONOMI PEMBANGUNAN>>
: <<2009>>
Critical Issues for the Twenty – First Century
Pertemuan 13
For the first time in human history, the world
is close to creating a single, unified Global
System
(UNDP, Human Development Report, 1992)
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Material Outline
• The global environmental threat
• The economic crisis in Sub – Saharan Africa
• Economic transition in Eastern Europe and the
former Soviet Republics
• Globalization and international financial reform
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The Global Environmental Threat
• Green house Gases and Ozone Depletion
• MDC and LDC Contributions to Green house
Gases
• Rain Forest Preservation as a public Good
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The economic crisis in Sub-Saharan Africa
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An inecorable economic decline
A drop in per capita incomes
Rapid increase in population
The loss of export revenues
The curtailment of foreign investment
The destruction of fragile ecosystems, and
The inability of many countries even to feed their
people and meet other basic human needs.
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Economic decline in Sub-Saharan Arfica, 1980-1990
Economic indicator
1980
1990
Change
Per capita output ($)
582
335
-42,5
Per capita consumption
465
279
-40,0
Investment (% of GDP)
20,2
14,2
-29,7
Exports of goods ($ billions)
48,7
31,9
-34,5
Per capita food production ($)
107
94
-12,2
Total external debt ($ billion)
56,2
147
+162
Poverty (% below poverty line)
NA
39,6
-
Sources: UNDP and WB, African Development Indicators, 1992
Note: Amounts are expressed in US dollar at 1980 prices. NA=not available
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Economic transition in Eastern Europe and the
former Soviet
Russia’s underlying problem is an unprecedented, allencompassing economic-catastrophe-a peacetime economy
that has been in a process of relentless destruction for nearly
seven years. GDP has fallen by at least 50 percent and
according to one report by as much as 83 percent, capital
investment by 90 percent and equally telling, meat and dairy
livestock herds by 75 percent. Except for energy, the country
now produces very little; most consumer goods, especially in
large cities, are imported.
(Prof. Stephen Cohen)
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Globalization and international financial reform
1. A reduction in the debt-service burdens of the LDC’s
least able to affort continued austerity measures,
especially in Sub-Saharan Africa
2. The creation of new LDC-funding sources, such as a
tax on international currency transactions like the socalled Tobin tax to culb the speculative inflow and
outflow of foreign capital – a central ingredient in the
1997 Asian currency crisis.
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Globalization and international financial reform
3. The creation of new international institutions, such
as world central bank, to help stabilize global
economic activity, promote global financial stability,
and assist the economic development of poorer
nations. Such as entity could act as a lender of last
resort to financial institution and create new forms of
liquidity
4. Reform of the two major existing institutions for
global economic growth and stability, the IMF dan
the World Bank.
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