lecture 4??

Question 1

• The Gini coefficient for measuring inequality:

Answer 1

• Value is 0 If everyone in society receives the same share of the money
• Value 1 if one person takes all the money
• Regular Gini index is a relative measure; if all people experience the same rate of growth it ill not changes
• If a distribution of 2 people/countries goes form (10;40) to (20;80) the Gini coefficient remains the same as both amounts of money doubled
• Absolute Gini looks at differences in absolute growth
• Now the situation is different

Question 2

• Human development index ( HDI)

Question 3

Explaining market – oriented modernization theories:

Answer 3

• Claims that unrestricted capitalism s the best wat to achieve economic growth, governments should not interfere in the free market
• This is a modernization theory, arguing that developing countries should become more like developed countries
• Get rid of tradition , develop modern economic institutions, develop technologies , change values

Question 4

Depedency theory:

Answer 4

• More conflict perspective
• Underdevelopment is not their own fault: Global explotation, relatively powerless countries have been exploited by powerful countries and their multinationals, colonialism took profits made on national resource abroad, this halted industrializattion in these formerly) colonized countries, calls for revolutionary changes , Western governments support loyal governments and hence not hesitated to overthrow non-loyal ones

Question 5

World-systems theory

Answer 5

• Capitalism is a single global system: there is a world market or goods and labour, population divided in to diffirent classes: capitalists and workers, political, competivie relations among powerful nations shape the world economy
• Word system consists of three unequal economic zones : core , peripheral, semi-perpherel)

Question 6

State-centered theories:

Answer 6

• State policies can promote economic growth
• Especially in upcoming Asian countries ,, strong,, countries guarantee:
• Political stability , low wages , tax breaks , investments , focus on national interests , state ownership of crucial industries , cheap housing , free education

Question 7

Post-development

Answer 7

• Development discourse was condescending towards ,underdeveloped, countries, thus extending colonial power relations into now
• End of the cold war made it less necessary for US and Russia to help ,develop, their allies for geopolitical strategic reasons
• Drawback of industrialization became obvious(e.g., pollution )
• Global inequality had only rised , so idea of development projects lost much of its credibility and appeal at the receiving end
• More room for idealogy and ambitions embedded in local context traditions
• Amartya Sen: freedom is both primary end and principal means of development