class 2 Flashcards
how to measure human development?
a) life expectancy at birth (pension plan increasing and health access)
b) income (currency exchange)
c) literacy (quality of education and the access to education (public vs. private)
d) access to education
e) more specific forms such as gender development - environmental issues and children and women’s rights
what can the government do to promote of impede development?
implementing particular policies
name the five implementing particular policies.
a) creation/regulation of public goods (danemark 50% income tax)
b) regulation natural resources (colombian micromining managed by organized crimes)
c) mandats to protect citizens
d) direct support
e) creation opportunities/incentives
explain classic economic models and free trade market capitalism in three points
a) rule by supply and demand (doesn’t always work and lots of companies in the GS are state-owned (mostly oil companies)
b) privatization was fashionable in the 1980s (many countries change to a neo-liberal economic model and that brought, in some cases, a very interesting growth
c) Non-state actors assumed greater responsibilities regarding development (doctors without borders and greenpeace for example)
what is state capitalism?
where the government is at the center of economic development, it rejects the invisible hand theory, and tries to secure economic competition to secure growth (although no competition is preferred)
what is the invisible hand theory?
tries to convey without any intervetion if all individuals un the economy act in their best self-interest, the result is automatically in the best interest of the economy.
what three stages does Walter W. Rostwo propose considering theories of economic development?
1) underdevelopment
2) take off (stable government, good banking, infrastructure in Peru, India, and Pakistan for example
3) modernity (less government, more entreprise)
what is diffusion policy?
setting up agenda with another blueprint (from another place with the same ideas) and then implement that policy ex: same sex marriage (many countries waited for the supreme court of us to accept it to do the same
explain policy process
problem → agenda → implementation → evaluation (then back to problem)
explain the main ideas of economic development in theory
change in values is necessary to adopt western institutions, was quite popular in the 50s and 60s. did a poor job understanding the historical, cultural, economic and political differences in the Global South (hard to integrate because of the diversities and cannot compare even regions of the same country due to diversity) ex Africa, India and Latin America
