CHAPTER 3: DEVELOPMENT Flashcards
What is development
- The exact definition of development is debated
- Development is often measured by economic growth as A well-managed economy is necessary for in increased standard of living. However, development includes more than just economic growth
- Development can therefore be defined as the struggle to fulfill human needs however some argue that for a dignified life, all basic needs are equally important
Maslow’s hierarchy of needs
- Physiological (bottom of the pyramid)
- Safety (defence, national army)
- Love/belonging (relationships)
- Esteem (whether you have self-esteem or not)
- The goal is self-actualization (top of the pyramid), person’s potential and wishes
- If the bottom levels are not secure, it will be difficult to achieve upper level
Human Development
- Process of enlarging people’s freedoms and opportunities
- It is more individual focused than socio-political development
- Equipment people have to pursue a life of value (good health, knowledge, etc.)
Economic Development
- Refers to economic growth
- Increase productivity and revenue and to establish new industries and innovate
- Diversifying the economy into different sectors, rather than relying on one resource
Social-political development
- Refers to social development: gender equality and education levels
- The political aspect: democratic and responsible government
- The hope for low corruption levels and independent and unbiased legal system
Development as freedom
- Refers to people’s access to choice
- our approach should focus on goals of development, rather than the methods(Economists Amartya Sen)
- Economic growth does not automatically lead to development
GDP Per Capita - Measuring Development
- overall income of a country is divided by the population
- Major advantage of this method is that it is simple
- However, does not consider how the income in a country is distributed and may be misleading
The Gini Coefficient
- is used to measure how equal or unequal societies are by looking at wealth distribution
- Given as a number between 0 and 1
- The more equal the society is, the Gini coefficient is close to 0
- Can be used as an indicator for development
More complex measures of development
- Some measures attempt to capture aspects of development other than just economic data
- Human Development Index (life expectancy, education and income) (most commonly used)
- Happy Planet Index (variables that measures the long-term impact on environment)
Modernization Theory
- It is the oldest theory of development
- Based on the study of economic history of industrialized Western nations
- Countries to modernize and develop by imitating what the industrial countries did
4, Walt Whitman Rostow is the most well-known modernization theorist
- He described five distinct stages of development: Traditional societies, preconditions for take off, progress, the drive to maturity, high mass consumption
Rostow’s 5 stages of development
- Traditional societies: societies that are based on subsistence agriculture, with low levels of technology and pre-scientific values
- Preconditions for take-off: societies that have started to introduce money and banking into their economy, and have a new class of entrepreneurs
- Progress: the societies in which values that encourage economic growth are widespread and growth of certain economic sectors has become common
- The drive to maturity: the societies with an economy that is diversifying and producing an increasingly large variety of goods
- High mass consumption: the societies in which wealth and the production and consumption of modern consumer goods are widespread
The Washington Consensus
- In the 1990s, a lighter version of the neoliberalist ideology emerged
- emphasis on free market non-interventionism but also supports strong institutions and ‘good policies’
- Tries to find a balance between complete deregulation and the government
- Pro-democracy and can only function where the rule of law is respected
- Influenced global development strategies such as Millennium Development Goals
Stagnation
a situation in which a state’s economy is not growing or succeeding
Globalization
- a process of interaction and integration. It occurs between people, trading entities and governments of different nations
- When people travel, and interact, they take their ways of thinking with them
- Modern globalization is usually seen as being driven by international trade
- Developments allow modern people to interact and share ideas, goods and services
Factors that influenced globalization
- Increasing use of English as global language
- International trade
- Information technology and social media
- Cheap air travel
- Relaxation of visa rules and border controls
Economic Globalization
- Significant increase in the integration and interdependence of global economies
- Cross-border movement of services, products, money and technologies
- World Trade organizations (Doha process) aimed to reduce tariffs
Political Globalization
- Increase of global governance beyond nation states
- A rise in influence for IGOs and NGOs
- Aided in working towards aims and methods to tackle global problems such as climate change
Cultural Globalization
- Increased sharing of ideas, meanings and values across the world
- Cross-border flow of cultural norms, values and media products
Impact of economic globalization on states(with examples)
- freer movement of capital
- Products, business ideas, and a greater access to cheaper labour
- E.g. American business ideas have been imported to China and German cars are now built in Mexico because labour is cheaper there
Impact of political globalization on states
- give citizens greater access to powerful groups
that may have influence over nation states - With new technology, encouraged ‘citizen journalism’
Impact of cultural globalization on states
- access to rights, norms, beliefs, roles and expectations
- Increased sharing of ideas and availability of products
- E.g. Hollywood film industry has influenced the global notion