IR05_development_web
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Poverty and Development
Addressing Poverty and Inequality
Socialism and Communism
-Redistribution of assets, equality, state control
State sheltered industrialization, export-led growth
-Subsidies, tariffs, private property, but large role of the state
Washington Consensus
-Liberalize: open trade, remove inefficient state support,
remove controls on capital flows, cut the size of the state,
privatize, restructure
Keynesian State
-Social safety nets
Development Assistance
Official Development
Assistance (ODA)
–Bilateral
–Multilateral: through
international organizations
Private foundations and NGOs:
– Ted Turner, Bill Gates Foundation, Hewlett Packard Foundation,
Conservation International
Meet the Fakers?
2000 ODA as Percent of GDP
Million Promises to Keep?
World Bank
Established by Bretton Woods Agreement (1944)
Dominated by largest donor countries
Assistance for restructuring and development
– Infrastructure
– Structural Adjustment Loans
– Education, environment
Type of Assistance
– Loans
– Grants
Increasingly intrusive policy conditionality
World Bank Project
Sardar Sarovar Dam,
Narmada River, India
World Bank: Total Lending to Bulgaria
Financial and Enterprise Sector
Adjustment Loan (FESAL)
Adjustment agriculture: $125mn
Market development: $30mn
Education: $14mn
Access to healthcare: $26
Social protection: $24
United Nations Development
Programs (UNDP)
Core UN institution
Controlled by the UN General Assembly
Less resources compared to WB, IMF
Technical assistance for development
– Capacity building
– Limited technology transfer
The UN Human Development Index (HDI)
– Measures well being
– Alternative to Gross Domestic Product (GDP)
Paradigms of Development
Market Driven Growth
– Objective: increase Gross Domestic Product (GDP)
– Means: free market, get prices right, liberalize, modernize, new
technology; more supply of food;
– Example: Green Revolution
Sustainable Development
– Focus on human well-being, both material and non-material
– Means: community control of resources; empowerment of
women, marginalized people, education, access to finances;
entitlement and fairness
– Example: State of Kerala, India
Practical Solutions?
Reform Domestic Institutions
Corruption
Judicial system
Social safety nets
Human capital
Social capital
Encourage savings and access to credit
Jubilee 2000
Jubilee 2000: “A Coalition that brought
together unlikely alliances like Puff
Daddy and the Pope; Jesse Helms and
Bono; the Sisters of the Sacred Heart
and the Spice Girls.”
Address Health Factors
The Malaria pandemic
-30mn.cases/year
-1mn. deaths
-$12bn in lost GDP
-90% in Africa
The Millennium Development Goals
The Millennium Development Goals
Initiative of Kofi Annan and UN Agencies
By 2015:
1. Reduce by half extreme poverty and hunger
2. Achieve universal primary education
3. Eliminate gender inequality in primary and secondary
education
4. Reduce by 2/3 child mortality under 5 years of age
5. Reduce by ¾ ratio of women dying in childbirth maternal
6. Halt, begin to reverse spared of HIV/AIDS, malaria
7. Ensure environmental sustainability
8. Develop a global partnership for development