politics of development 1 Flashcards
“millions upon millions of our human family are living imprisoned: by economic poverty, by political tyranny, by sickness and disease, by ignorance, and by oppression and violence”
Amartya Sen (1999)
defined as living at a consumption (or income) level below 1.90 $ per day or 106.45 pesos.
extreme poverty
is adjusted for price differences between countries and for price changes over time (inflation)
international dollar
648 million people lived below the _____ poverty line in 2019
$2.15 per day
In _______, 23% of the population lives below the national poverty line of approx. $2.04 per day
Ethiopia
a multidimensional processes of change that refers to large-scale change at a societal level
development
it is the major changes in social structure, attitudes, and national institutions
development
it is the acceleration of economic growth, the eradication of poverty, and reduction of inequality
development
what is the latest poverty threshold?
$2.15 or 120.15 PHP
the process of improving the quality of all human lives and capabilities by raising people’s levels of living, self-esteem, and freedom
development
the challenge of development therefore is (one):
reduction and elimination of poverty and unemployment within the context of a growing economy
the challenge of development therefore is (two):
improve quality of life: higher incomes, better education, equality of opportunity, greater individual freedom, richer cultural life
what are the 3 objectives of development:
- increase availability and widen the distribution of basic life-sustaining goods
- raise levels of living: material well-being, jobs, and education
- expand the range of economic and social choices
3 core values of development:
- sustenance
- self-esteem
- freedom from servitude
what is sustenance?
the ability to meet basic needs: food, health, shelter, and protection
what is self-esteem?
to be a person: identity, self-respect, sense of worth, human dignity, and honor
what is freedom from servitude?
to be able to choose: political freedom, personal security, rule of law, freedom of expression, political participation, and equality of opportunity
about two-fifths of the world’s population lives on less than $2 per day, part of a condition of absolute poverty
dimensions of deprivation
a situation of being unable to meet the minimum levels of income, food, clothing, health care, shelter, and other essentials
absolute poverty
an economy in which production is mainly for personal consumption and the standard of living yields little more than basic necessities of life (food, shelter, and clothing)
subsistence economy
the process through which individuals or groups are wholly or partially excluded from full participation in the society in which they live -European Foundation 1995
social exclusion
poverty cannot be properly measured by income or even by utility as conventionally understood; what matters fundamentally is not the things a person has or the feelings these provide, but what a person is, or can be, and does, or can do.
capability approach by Amartya Sen
what matters for well-being is not just the characteristics of commodities consumed, as in the utility approach, but what use the consumer can and does make of commodities.
capability approach by Amartya Sen
_____ is what really matters for status as a poor or nonpoor person, we need to think beyond the availability of commodities and consider their use
capability to function
categories of development of countries in the world today
human development index and human capital
why was HDI created?
to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.
it is a summary of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable, and having a decent standard
human development index (HDI)
productive investments in people, such as skills, values, and health, resulting from expenditures on education, on-the-job training programs, and medical care
human capital
indicate the 3 dimensions of HDI:
- long & healthy life
- knowledge
- a decent standard living
indicate the 3 indicators of these dimensions:
- life expectancy at birth
- expected years of schooling or mean years of schooling
- GNI per capita (PPP $)
indicate the 3 dimension index:
- life expectancy index
- education index
- GNI index
monitors 10 indicators, such as school attendance, child mortality, and safe drinking water.
Global Multidimensional Poverty Index (MPI)
core necessities for development
supplementation of economic and non-economic variable
the economic variables are:
incomes, prices, savings rates, investments
what are the non-economic or institutional variables:
land tenure arrangements, structure of credit/debt servicing, education, and health systems, governance/organization, etc.
core indicators on population, health, education, poverty, infant mortality, and HIV/AIDS prevalence by countries
population and human well-being
four core indicators: intensity of agriculture inputs, food security and nutrition, fisheries production, and water resources
food and water resources
compare countries by core indicators of their gross domestic product GDP.
economics and trade
can be expressed as the difference between the value of exports of goods and services and the value of imports of goods and services
current account balance
what does a negative current account means?
that the country is importing more goods and services than it is exporting.
shows values of core indicators to evaluate gov’t and levels of freedom within countries
institutions and governance
the most common way to define the developing world is by ______the country’s economic status.
per capita income
(defining the developing world)
degree of international indebtedness: the ______ has classified countries as severely indebted, moderately indebted, and less indebted
World Bank
what does PPP stands for?
purchasing power parity
name at least five important features common among developing countries
- lower lvls of living and productivity
- lower lvls of human capital
- higher lvls of inequality and absolute poverty
- higher population growth rates
- greater social fractionalization
- larger rural populations but rapid rural-to-urban migration
- lower lvls of industrialization
- adverse geography
- underdeveloped financial and other markets
- lingering colonial impacts such as poor institutions and often external dependence
_____ must be concerned with the economic, cultural, and political requirements for effecting rapid structural and institutional transformations or entire societies in a manner that will most efficiently bring the fruits of economic progress to the broadest segments of their populations.
development economics
the ultimate purpose of ______ is to help us understand developing economies in order to help improve the material lives of the majority of the global population
development economics
what are the causes of hunger and poverty?
- economics systems
- demographic systems
- conflict, territorial, and cultural tensions
- climate change
- governance and politics
accdg to _______ top 20% of Filipinos capture nearly half of nation’s total income, while the bottom 20% possess only 6%.
national statistics
who stated this, “ the PH aims to become a middle-class society free of poverty by 2040, but we know from global experience that no country has managed to make this transition while maintaining high levels of inequality”.
Ndiame Diop, WB country director for Brunei, Malaysia, OH, and Thailand
the unequal distributions- of resources, opportunities, and power that shape well-being among the billion individuals on our planet
global inequality
common characteristics of low-income countries/developing nations (historically)
they were colonized
the bloc of democratic-industrial countries within the American influence sphere
first world
the Eastern Bloc of the communist-socialist states
second world
the remaining three-quarters of the world’s population, states not aligned with either bloc and were regarded as ____
third world
this term was coined by Shuswap Chief George Manuel in 1970s which refers to widely unknown nations (cultural entities) of indigenous peoples
fourth world
who coined the term fourth world?
Shuswap Chief George Manuel
refers to so-called developed, capitalist, industrial countries, within the western European and United sphere of influence
first world
countries of the second world:
USSR (Soviet Union)
who said
“… Their poverty was the outcomes of a more fundamental identity: they had all been colonized”
Peter Worsley (1964/1979)
what makes a nation third world?
countries that suffer from high infant mortality, low economic development, high levels of poverty, and low utilization of natural resources, and heavy dependence on industrialized nations.
key factors in third world nations are:
- lack of a middle class
- impoverished millions
- very small elite upper class
- have a very large foreign debt
one indicator of a country’s financial position is to compare two macroeconomic values:
the general gov’t gross debt to its gross domestic product (gdp)
the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific period
GDP
the total final output of goods and services produced by the country’s economy, within the country’s territory, by residents and non-residents, regardless of its allocation between domestic and foreign claims.
GDP
a financial metric that breaks down a country’s economic output per person and is calculated by dividing the GDP of a nation by its population
per capita GDP
the value of all goods & services made by a country’s residents & businesses regardless of production location
Gross National product (GNP)
measures income earned, including income from investments, that flows back into the country
Gross National Income (GNI)
includes the earnings from all assets owned by residents, omitting the earnings of all foreigners living in the country.
GNP
