Development - debates

Question 1

Consensuses

Answer 1

Washington

• 1989, used by WB, IMF
• global welfare increases with investment, finance, trade liberalisation
• growth of economy doesn’t mean development: in Ecuador after a period of economic growth 2002-06, poverty rate went up 5.4%

Post-Washington

• voices of the poor
• Poverty Reduction Strategy Papers, compulsory for states who wish to take out loan from IMF and WB
• include social policies planned for 3+ years regarding health and education

Beijing

• export led growth
• innovation
• authoritarian government
• state capitalism

Question 2

Microfinance

Answer 2

• 1983 Mohammed Yunus (Noble Peace Prize, 2006) established Grameen Bank in Bangladesh
• gave loans to the poorest and supported local initiatives
• GB has given $5.1 billion in loans to 5.3 million people
• 2005 given Nobel Peace Prize
  “Microfinance has proven its value in many countries as a weapon against poverty and hunger” Kofi Annan
• liften 50 million Bangladeshis out of poverty

Question 3

Sustainable development

Answer 3

• catering for the needs of the current generation without impacting negatively on future generations
• many developing countries rely on exports of natural minerals
• developed countries got rich by using cheap energy
• China example: make the energy saving sector a “pillar” of the economy by 2015, grow 15% annually

Question 4

Modernist model

Answer 4

• shed traditional social, political and economic institutions
• culture stands in the way of development and free trade
• it’s not easy, based on Western ideals and free trade means developing must compete with developed

Question 5

Development is more than economic

Answer 5

• Bhutan has used gross national happiness since 1972
• although a 1/4 of its population lives in poverty
• ranks 8/178 on the Subjective Well Being Index

Question 6

Trickle down model

Answer 6

• overall growth benefits the poor

- criticism: minorities get rich, Uganda example