Poverty & Development (Lec 6) Flashcards
Absolute Poverty
A standard of poverty based on income level or access to resources to maintain physical efficiency (keep body and soul together)
Relative Poverty
A standard of poverty in which people are deprived of living conditions and amenities customary to the society they belong
Makes poverty directly connected to inequality
Human Development Index
A way of measuring poverty that places greater emphasis on human development than lack of material. It attempts to acknowledge the lack of opportunities and (positive) freedoms
Central tool to the UN’s approach to global poverty
Orthodox view of development
This is rooted in economic liberalism and poverty is defined purely in economic terms. Reduction of poverty is linked to stimulating growth (increasing GDP)
Therefore, stimulating the free market system as the only reliable way to generate wealth.
A concrete example of this view is the modernization theory
Modernization Theory
A theory of development that suggests there is a single linear path to development (based on the example of western countries)
Example: Rostow’s theory of the stages of development/economic growth
Rostow’s theory of the stages of development/economic growth:
- Traditional societies - rudimentary technology, prescientific values, subsistence economy
- Pre-conditions to take off - capital mobilization (banks & currency); development of entrepreneurial class
- Take-off - norms of economic growth are established; sector-led growth becomes common
- Drive to maturity - growing economic diversification, reduced poverty, rising living standards
- High mass consumption - affluence becoming widespread; orientated around production of modern consumer goods
Alternative view of development
Risen in popularity since the 1980s as disillusionment with pro-growth top-down strategies grew.
There is no one uniform package but they often express anti-western, anti-corporate ideas and place emphasis on self-management and environmentalism. Some focus more on reforming orthodox principles
Rejects ‘one size fits all’ idea of development
Themes of the alternative view of development
- Humanistic view of poverty (opportunity, freedom, empowerment; material & non material needs)
- Self-reliance rather than on wealthy states/international bodies
- Ecological balance and sustainability
- Social and cultural inclusion
- Local control (community action and democracy)
- Acknowledging structural character of poverty
Realist View
There is no realist view on development but they often tend to draw on mercantilism when explaining the phenomenon. Thus, emphasizing the importance of economics and politics (state intervention) especially in managing external trade relations (protectionism?)
Highly critical of liberal view of the markets natural tendency towards equilibrium and growth; believing they need to be managed
Liberal View
‘development as growth’
See ‘orthodox view of development’ tab:)
Critical Views
Neo-marxists have led the charge of critical views to development.
Focus attention on external obstacles to development rather than internal; specifically those stemming from the structure of the global capitalists system
- Dependency Theory
- World Systems Theory
- Green politics
- Feminism
3 Key Trends of Global Inequality
- Equalizing trends ( based on economic progress made by China and India)
(Hold large percent of population so increase in growth has bigger effect) - Disequalizing trends (continued and deepening poverty in sub-Saharan Africa)
(24 lowest countries in UN HDI are all African; poverty cycle) - General trend for within country inequality growth
(Cornia; 2/3rds of 73 countries studied had widening inequality rates between 1980-2000)
Globalization and Widening Inequality
Winners and losers game (world systems theory)
Pushing principle of free trade (via WTO) so rich states can have unlimited access to poorer markets
Growing rural poverty
Within country inequality on the rise
- corporate power
- competitive economy: deregulate economy, rollback welfare
Globalization and Reducing Inequality
Positive-sum game: mutual benefits
Newly industrialized countries (NIC) rely on globalization as a strategy to develop (ie China)
TNCs bring benefits and are not enemy to the south
Equality vs Inequality
Favour of Equality:
- power, conflict, and personal wellbeing
Importance of Inequality
- Absolute poverty over inequality
- Economic advantages of inequality (incentivizes enterprise)
