INTERNATIONAL DEVELOPMENT Flashcards
ECONOMIC DEVELOPMENT
GDP=a countries final monetary value of the g+s prod annually.
GDP per capita+ GDP divided by total pop->will vary with the pop of country.
Ec dev is the increase in the growth rate of a GDP per capita-> the increase should be used to develop the ec—>to improve quality of life for citizens.
LIMITATIONS OF ECONOMIC DEVELOPMENT AS A MEASUREMENT FOR A COUNTRY’S WELL-BEING
It is a measure on paper->facts in reality may be different—>bc the GDP may not be used for ec dev—->Bots and Nigeria
The country can grow but wont->receiving aid from developed countries->aid gets pocketed, bc if ec sound they wont receive aid
HUMAN DEVELOPMENT
Concept founded by UNDP (UN dev program) as process of enlarging pp choices and encouraging to lead life they value
HDI looks at average life expectancy, literacy, per capita income as a measurement of country development
QUESTIONS OF UNEQUAL GLOBAL DEVELOPMENT
> modernization theory: conceives dev as transition from traditional to modern industrialized society->w/i this transition there needs be scientific progress->developing countries need overcome traditional values to develop->developing countries should learn, cooperate and get assistance from developed countries—>creates sense dependency
dependency theory: expresses notions of dependence and exploitation of south->underdeveloped bc of the process that the N got developed (slavery, col, neo col)> exploitation continues through unfair trade> S should delink from glob capitalist syst and focus on own
WHAT SOUTH DONE TO IMPROVE THINGS FOR THEMSELVES?
> Bandung Conference ‘55: emergence S as force in glob pol->based on shared history, ID+ struggle against western imperialism->origins of S-S
Nonaligned Movement ‘61: gave S independent voice int the context of Cold War->when CW became less relevant focus on ec issues
Easier for S to speak in a united manner->create a stronger voice
NEW INTERNATIONAL ECONOMIC ORDER
THE OIL CRISIS
‘73 oil crisis NB bc indicates when the N was dependent on S.
Oil Petroleum Exporting Country imposed embargo on exporting petrol to US->retaliation for position in Arab-Israeli conflict.
OPEC crisis inspired S to call for NIEO->threat to N, bc their dependency may level playing fields
NEW INTERNATIONAL ECONOMIC ORDER
PROPOSALS
Recognition of the S’s sovereignty over nat resources.
Mechanisms to stabilize prices of raw materials in int trade
Technology transfer on preferential terms.
Support industrialization in S.
Preferential treatment in trade.
Reform structures+policies of World Bank
DECLINE OF THE SOUTH
‘80’s many developing experienced financial problems->unable service foreign debt->foreign investors reluctant to invest loans in S.
IMF+WB lend +support S to come out of debt->condition they implement SAPS (structural adjustment programs)->SAPS based on Washington Consensus—>advocated free market principles+min state interference (bad bc new ec, need help grow)
SAPS and WC contributed to weakening and fragmenting of S as collective pol force against the N hegemony in the ipe
DEVELOPING COUNTRIES AND INTERNATIONAL TRADE
50’s-70’s Af countries implemented market-controlling trade strategies->bc largely export orientated .:every now then control market.
After oil crisis was focus on outward looking trade strategies
DEVELOPING COUNTRIES AND INTERNATIONAL TRADE
IMPORT-SUBSTITUTING INDUSTRIALISATION
Approach to ec dev based on substituting imported goods w/ those dom prod.
Inspired by Great Depression effects->demand for raw mat and agricultural prods from developing countries that collapsed—>need for alt paths to ec growth.
Desire challenge int DOL->that condemned developing to producers of raw materials and the consumers of refined goods—>causes cycle of destruction.
DEVELOPING COUNTRIES AND INTERNATIONAL TRADE
IMPORT-SUBSTITUTING INDUSTRIALISATION POLICIES
Countries place high tariffs on imported goods->targeted for substitution.
Gov subsidies to specific industries w/ potential to produce substituted industrial g
DEVELOPING COUNTRIES AND INTERNATIONAL TRADE
IMPORT-SUBSTITUTING INDUSTRIALISATION PROS AND CONS
> Pro: contributed to sig ec growth in countries who were able to develop domestic industrial capacity for g
Con: not good for small dom mark, bc small are likely pursue closed economy->lack int comp+gov protection created little incentives for firms to innovate—>leads to account deficits and dom inflation.
EXPORT LED GROWTH
Premised idea int ec linkages good for developing countries->bc int ec has opportunities the S can harness for development->opposite of ISI, bc opens ec for dev.
Entails removal of subsidies from producers of dom orientated g.
Producers for export mark receive preferential treatment from gov.
Manifested in Asia->Asian Tigers
Beijing Consensus=dev through systematic gov controls on trade, capital flows, +ER adjustments->authoritarianism as driver of ec growth.
INTERNATIONAL FINANCIAL FLOWS AND DEVELOPMENT
Diff int fin flows that meant to improve development:
>private fin flows: FDI, foreign portfolio investments, int bank loans, int bonds
>Official fin flows: official development assistance, loans by int fin institutions
DECLINE OF SOUTH
Characterized by the resurgence of S-S cooperation, emergence of new Southern multilateral institutions to strengthen S-S +provide a counterweight to the North’s hegemony.
