DVM2105[A] (Intra) Flashcards
The terms ‘‘development’’ & ‘‘underdevelopment’’ is often traced back to who ?
What does he imply ?
President Harry Truman’s inaugural speech in 1949.
Development implies a scale to compare nation’s success or progress in relation to each other & the need for outside intervention by those who deemed themselves to have achieved progress or development success on behalf of those who have not yet done so or who did not possess the necessary conditions to do so (trusteeship).
Alfred Sauvy caracterizes the Third World how ?
What was his initial goal ?
The Third World refers to countries outside the two major power blocs (West + Soviet Union).
–> Third World now refers to national poverty of a specific country.
His initial goal = comparing the Third Estate (the bottom layer of the social pyramid, beneath the clergy and nobility) to the actual geopolitics that rule the World…
What’s the common term for Third World ?
How does the UN called them ?
What is the new term that emerged from the 1970s ?
It’s developing countries.
The UN also uses a category called “least developed countries (ldcs)” to identify those countries with very low incomes and “structural impediments” to growth that are eligible for special support from international organizations (United Nations 2020).
Newly industrialized countries (nics).
How do we call the leaders of global capitalist enterprises as potential markets to target for profit ?
“emerging markets” or “emerging economies.”
What are the two meanings for Fourth World ?
(1) to denote the poorest of the poor countries, often the “failed states” that have experienced serious setbacks in human well-being and political governance [typically in connection with protracted armed conflict, such as Somalia and Afghanistan]
(2) [The other derived from the work of the Canadian Indigenous leader and writer George Manuel in the 1970s in reference to]
the internalcolonization of Indigenous peoples, whose status and citizenship rights vary considerably globally but who have frequently suffered dispossession and abrogation of political, economic, social, and cultural rights within countries where the dominant settler group has acted as a colonizer.
What’s the definition of GDP ?
How do we calculate the GDP ?
GDP : it measures the value of goods and services produced in a national economy.
- The World Bank calculates their own GDP calculation via gross national income (GNI adjusted by PPP (purchasing power parity)
The method [how to] : When gdp OR gni is divided by the number of people in a country, this gives an average income per person (or “per capita”) that allows us to compare the annual incomes worldwide.
How do we calculate poverty ?
To calculate how many poor people there are in a given country and whether they are benefitting from the overall growth of the economy, we need to include another concept : the distribution of income (also know as income inequality).
Measure in 2 ways : By comparing the income earned by different strata of the population AND the Gini coefficient.
What is Robert Putnam’s definition of social capital ?
It refers to the extent to which individuals are willing to cooperate in the pursuit of shared goals and is usually thought to be essential to the development of a civic and democratic culture.
What are the 3 plausibles conclusions for inequality ?
- The impact of colonial rule or neo-colonial economic relations may have forged or consolidated unequal social relations based on slavery, feudalism, and landownership patterns that continue to influence the present.
- The characteristics of late industrialization—that is, the use of inappropriate capital-intensive technology—reduce the employment potential of gdp growth.
- Inadequate or non-existent social safety nets and regressive taxation systems prevent the redistribution of national income toward the poor and middle classes, as occurred in the developed economies after the Great Depression of the 1930s.
What are the differences between income inequality, absolute/moderate/relative poverty ?
Income inequality = the number of poor people in a given country (extremely low level of income)…
Absolute poverty : It refers to being below the minimum level of income required for physical survival.
Moderate poverty : It refers to a level at which basic human needs are barely met but survival is not actually threatened.
Relative poverty (Talcott Parsons & Kenneth Clark) : Relative poverty refers to a kind of poverty that does not threaten daily survival but in which an individual may not have the income necessary to fully participate in his or her society.
Why is relative poverty not seen as just simply economic/Who are the theorists ?
Relative poverty ISN’T just economic, but social, political and psychological… It is multi-dimensional
(Dudley Seers & Denis Goulet)
- Adequate income to cover the needs of basic survival;
- Employment
- Improvement in the distribution of income;
- Education;
- Political participation;
- National autonomy
What’s the capability approach ?
Who ?
Capability approach (Amartya Sen) : Argues that development should not be seen simply as rising income levels but rather as an increase in individuals’ substantive freedoms. They are a result of processes OR lack of opportunities.
Sen sees the ability to access education, health care, and unemployment insurance as central elements that expand people’s capabilities.
The Human Development Index is a composite of 3 factors, what are they ?
Long and healthy life (i.e., life expectancy at birth, access to health care services)
Knowledge (i.e., education, knowledge on disease and medication)
Acceptable standards of living (i.e., income, economic growth)
How many objectives did the Millennium Development Goals (mdgs) have ?
How much did the Sustainable Development Goals (sdgs – Hulme & King), have ?
7 VS 17
What are the 3 descending ethics from cosmopolitanism + theorists ?
Consequentialist ethic : Peter Singer says that we should be giving away all of the “surplus” income we have as long as it does not cause us to give up something of greater moral value.
Contractarian ethic : Thomas Pogge says that we have a moral duty to alleviate global poverty as we are responsible for the situation (i.e. colonialism).
Rights-based ethic : Charles Jones implies duties for individuals, states, and other institutions to protect and aid those whose basic needs are not being met through contemporary global market economies
What are the 2 main ethical positions opposed to cosmopolitan approaches to redustributive global justice + definitions ?
Communitarianism : It takes issue with the cosmopolitan assumption that national borders have no moral importance. Instead, communitarians believe that political and social community is morally relevant.
Libertarianism/Neoliberalism (Robert Nozick) : Nozick argues that individual rights to freedom and non-interference are the central moral good, and he places particular value on the right of individuals to acquire and retain private property. Therefore, libertarians oppose any form of obligatory redistribution of wealth, whether within one country or between countries.
What are the exact numbers for the World Bank ideals of necessity of State ?
High-income (> 12’235$)
Upper-middle income (3’956-12’235 GNI/per capita)
Lower-middle income (1’006-3955$ GNI/per capita)
Low income (<1’005 GNI/per capita)
Inequality is the direct link for what exactly ?
Inequality is the direct link between the Per capita income and the number of people living in poverty.
Dudley Seers says there’s 3 aspects of the evaluation of development, what are they ?
Evaluation of development should take into account 3 inter-linked aspects :
Poverty
Employment
Inequality
What does Sen mean by capabilities approach ?
What’s the link between freedom and progress ?
He talks about the capabilities approach (not just wealth). The changes in power structures and institutions are important as development necessitates the ‘‘removal of sources of unfreedom’’. Sen argues that the conceptualization of development must exceed income (related to the concept of social exclusion + poverty is impotence).
The concept of freedom involves both processes and opportunities. Civil and political rights (processes) and entitlements (opportunity) that increase freedom like education, health care, increase peoples ability to lead fulfilling minds)…
–> Briefly put, Sen argues that freedom involves both processes and opportunities that will permit the individual to develop. However, it shouldn’t be limited to economic development.
Simply put, why is growth an inadequate indicator of development ?
Income isn’t enough to explain the realities of some issues (other than economic)…
What are the 8 principles of the UN (MGDs)
o Eradicate extreme poverty and hunger
o Universal primary education
o Promote gender equality and empower women
o Reduce child mortality
o Improve maternal health
o Combat major infectious diseases
o Environmental sustainability
o Develop a global partnership for development
What is the strenght of the 8 principles of MGDs ?
What is the fault ?
Its strength : Simplicity, measurability and concreteness.
Its fault : they avoid certain ideals like human rights to target more specific concepts – it does not address/challenge some of the deeper issues that generated those specific concepts)
Multidimensional.
What is the main differences between countries (technological wise) ?
Industrialization
What are the features of English society according to Sachs ?
(1) open society and individual initiative; (2) strong institutions protecting property rights; (3) scientific revolution; (4) on major trade routes; (5) national security; (6) freedom from energy constraints (coal).
What was the main issue according to Rodney regarding advancement ?
Example (Africa) ?
Infrastructure was geared towards import/export activities rather than meeting the needs and development of the African state.
While other countries were growing rapidly Africa went backwards due to its subjugation (i.e. colonialisation).
What are the justifications for colonialism ?
Economic: Commercial reasons, need for new markets, raw materials, new investments (Hobson and Lenin, Rosa Luxembourg)
Political: European military competition: increase the power of the state (nationalism)
Moral: Justified in moral as well as practical grounds (claimed superiority of Western culture, civilizing mission - White Man’s Burden, religion)… « universal humanitarianism » of evangelical missionaries [educate the savages].
What is the main issue of the 1960s regarding colonies ?
Therefore ?
Turned Western ideals against colonizers (liberty, equality and fraternity… democracy, nationalism)… indigenous intelligentsia led independence movements of the 1960s.
Decolonization and independance of colonies.
What does import-substitution industrialization mean ?
• Aim was to move consumer-to-consumer durable-to-intermediate-to-capital goods; gradually lowerering tariffs to improve efficiency (or regional integration and larger markets)
Because debts are so high, what does that cause for countries ?
They go into default.
Most developing countries needed to reschedule their loans (inflation)
What are IMF propositions after the ‘‘default era’’ ?
Reduce price distortions:
o Remove price controls
o Financial liberalization (liberalize rates)
o Less intervention in labour markets
Trade liberalization:
o Remove import quotas
o Reduce tariffs
o Realistic exchange rates
Reduction of role of the state
o Privatization of state-owned enterprises
o Cut government expenditure
What are the 10 points of John Williamson (based on the free market of Adam Smith) ?
o Fiscal discipline (don’t run deficits)
o Public expenditure priorities to be reordered (pro-poor, fund social services/funding)
o Tax reform (collect more taxes)
o Liberalizing Interest Rates (no subsidized credit)
o Competitive exchange rate (floating)
o Trade liberalization (reduce tariffs)
o Liberalization of inward FDI (attract MNCs – opening markets worldwide)
o Privatization (sell state-owned enterprises)
o De-regulation (less government interference in the economy)
o Property Rights (protect them)
Why is there backlash against pro-market policies ?
What does the backlash engage ?
They are biased against poorer countries.
It engages major developing countries to assemble in alliances (e.g BRICS)
What were the primary motives for european expansion and conquest ?
- Religious, political, economic, military, territorial, etc.
What is the MAIN argument of Hobson-Lenin ?
What has THAT caused ?
INDUSTRIALIZATION
IMPERIALISM
What does the national sentiment and the ‘‘men on the spot’’ mean for european expansion ?
National sentiment = attaining the degree of prestige and sense of greatness when colonizing by direct rule.
Men on the spot often made decisions to expand European activity and territorial claims even when such moves (and the means by which they were achieved) went beyond or even ran counter to official metropolitan policy.
What’s the difference between imperialism and colonialism ?
“Imperialism” refers to the era of European expansion that began in the 16th century when first the Portuguese and the Spanish and then the English, French, and Dutch created empires of trade in the Americas and Asia and, to a lesser extent, Africa.
The word “imperialism” itself first came into use in the late 19th century when it referred to the operation of Britain’s empire: a political system by which colonies are ruled from a central seat of power in the pursuit of largely if not entirely economic goals.
‘‘Colonialism’’ refers the economies of formally independent countries that remain subject to the control of others.
What is a chartered compagny ?
Example ?
A company that receives monopoly commercial rights from a state ruler for the purpose of promoting trade and exploration in a specific geographic area.
E.g. East- India Co.
What does the ‘‘New World’’ entail ? (consequence in Latin America)
In Central and South America, European arrival and the labour practices imposed on conquered Amerindian societies produced a staggering population collapse, making any continuation of existing political systems a near impossibility (ex : disease, slavery, etc.).
The prospect of such immense wealth (i.e., gold, silver, sugar, rum), together with the decimation of Amerindian societies, resulted in greater immigration to the Americas than to other imperial possessions.
The elimination of the Amerindian population was a factor for what event ?
o The elimination of the Amerindian population was a major factor in Europeans’ decision to purchase millions of enslaved Africans for export to the Americas. They built the foundations of the New World colonies and ensured their economic growth for centuries to come.
What does indirect rule mean ?
A system of governance by which colonial powers recognized and supported the legitimacy of Indigenous authorities and legal systems as they were subordinate and useful to the colonial state and used those authorities as intermediaries to govern the local population.
Why was the British indirect rule a failure ?
They were enable to break the power of local African rulers in northern Nigeria, which led the British administrator responsible for the region to declare instead his intention to keep them in place so that he might rule indirectly through them…
Thomas Macaulay basically implies what ?
European chauvenism
He was a proponent of anglicization for Britain’s Indian subjects, supporting English-language education to create a “class who may be interpreters between us and the millions we govern; a class of persons Indian in blood and colour but English in tastes, in opinions, in morals, and in intellect”
What happened after WW2 for colonial rule [colonies] ?
In WW2, Africans fought alongside Europeans for the right of European and Asian nations to self-determination and freedom from foreign rule, forced a re-examination of the colonial endeavour. Africans increasingly exhibited a new militancy. They refused to remain confined to the narrow grooves cut by the traditional society imagined by colonial rulers but rather made demands and articulated rights by drawing on metropolitan principles—not only those of self-determination but also of labour rights.
Independence/autonomy
What is the Bandung Conference looking for ?
• The Bandung Conference, held in Indonesia in 1955, was an optimistic attempt to forge Afro-Asian solidarity, both for mutual assistance in the economic field.
What does the industrial revolution entail (characteristics) ?
- Transformed production
- Specialization
- Machinery
- Labour groups
- Mass consumption
- Rapid production of goods
- Import/export worldwide
- Urban population
What is Adam Smith’s position on industrialization ?
- No state interference
- Self-interest
- Invisible-hand of the market
What is David Ricardo’s position on industrialization ?
Specialization (given land, labour and capital) + cross-border trading
What did Smith & Ricardo provide ?
Creation of economic nationalism + trade protectionism.
- Self-interest
- Free markets
- Free trade
What is Alexander Gerschenkron’s position ?
Gerschenkron articulated that the role of the state was necessary in planning to accelerate economic growth—and to induce a structural transformation in agrarian economies —as “jumping ahead from economic backwardness”.
He argued that governments could, in a context of abundant natural resources and labour, collaborate with private business to foment rapid industrialization with imported foreign technology.
What is John Maynard Keynes’ position ?
Who are the other economists that agreed with him ?
John Maynard Keynes argued that supply and demand did not automatically balance in market economies (doesn’t believe in the invisible-hand of Adam Smith)
Roy Harrod and Evsey Domar = they argued that national economies should be guided by state actions in order to attain sustained rates of growth.
This growth could achieve and maintain the full employment of labour and satisfy the consumption needs of the population, i.e., Keynesian economics.
What did WW2 engender (international relations) ?
- USA (western) versus Soviet Union (eastern) –> Cold War
- Rise of China
What’s the big push (who are the theorists)?
The Big Push is argued by Rosenstein-Rodan
= concentrate development efforts in specific industrialization projects
–> they should be selected based on the strength of its ripple effects on the rest of the economy, measured by the number of jobs and new businesses created.
E.g. : large infrastructure investments such as seaports, road bridges, and energy generation plants were essential for developing countries because they could enable additional economic activities and facilitate getting more products to market.
I.e. : The construction and operation of these projects would also transfer significant skills in building, planning, and project management to developing countries… –> They need to be funded by foreign aid, thus establishing another powerful argument and agenda for official development assistance…
Linkages between regional, national and international strength.
What’s Arthur Lewis position ? What’s his theory ?
Arthur Lewis = industrialization could be promoted in developing countries by encouraging labour to move from rural areas to urban areas, WITHOUT RAISING WAGES (theory of surplus labour).
–> Change the actual economy (agrarian) to a modern one (technological) without raising wages.
What are Hans Singer and Raul Prebisch position ? (x3)
Income elasticity of demand = As incomes rise, people allocate a growing share of their money to buying manufactured goods and services, the value of which depends on the knowledge or technology applied to them (GDP/per capita).
Declining terms of trade = It means that developing countries exporting simple commodities and seeking to industrialize would need to import growing and costlier manufactured goods and technologies, which rise in value faster than commodities.
Income volatility = That combination of income elasticity (a declining share of incomes dedicated to buying commodities) and the declining terms of trade leads to income volatility for exports. This means that commodity exports suffer from highly variable prices that rise or fall significantly on a yearly basis, making it very difficult for developing countries to plan infrastructure projects, social services, or industrialization. If budgets and expenses are stable over time but income from exports is unpredictable, governments face unexpected surpluses or deficits –·> Stop-and-go pattern.
Hayek and Friedman argued that the true sources of economic growth were found where ?
Due to ?
Hayek and Friedman argued that the true sources of economic growth were to be found in individual initiative guided by market-determined prices that naturally balanced demand/supply for all goods/services, and which informed appropriate investment decisions [state intervention was distorting markets].
Due to: Foreign aid and loans had only increased indebtedness, produced infrastructure that was not truly needed, and created inefficient industries that could only survive foreign competition thanks to protectionism.
Why does Little critize trade protectionism ?
Little criticized trade protectionism due to distortions in local prices, low investments, and the consequent underperformance of agriculture in much of the developing world.
What/who; the dirigiste dogma ?
LAL
- Reducing foreign aid
- Free markets
- Global trade
- Investment flows
- Including developing countries
