Quiz 1 Flashcards
What is Development by Hickel? Why are some countries poor?
The west (or global north) made the global south poor and they kept them poor
Solutions of under-development by Hickel
Needs to be radical restructuring of global systems to make it fairer
Solution for development by many development practitioners
Poor countries need more aid, more trade, better training/skills, new and improved technologies so the west especially the USA needs to focus more attention on the poor countries
Hickel what keeps poor countries poor on the macro-level
The transfer from poor to wealthy countries is more than 20 times higher than foreign aid
What is the transfer of money in and out?
Foreign Aid (2017) = $128 billion; Loss from outflows fro poor countries to rich = > 2.5 trillion
For Sen what keeps countries poor on the micro level?
The lack of different freedoms keeps people poor and thus countries poor. Such as freedom from hunger, health, political oppression, market disadvantages, pursue of meaningful life and livelihoods
What is the opposite of ‘unfreedoms’?
The lack of freedom to avoid hunger, poor health, and political oppression
But who defines freedom?
We do not fully know but it depends on the culture
Cultural Relativism
The assessment of a culture in terms of the culture’s values rather than evaluating it in terms of another culture
Evidence for development for Sen
Scale of data and Statistics. Macro stats on income, life expectancy, education, and disease/ health improvement all show significant progress over the past 40 years
Evidence for development for Hickel
The macro statistics mask many issues. Most of the gain relates to China’s achievements. hides the significant inequality within countries and between countries. Usues an uncually low poverty indicator of $1-2/day rather than the more realistic $4/day.
Global inequality
small number of billionaires have wealth equivalent to about 50 percent of the world’s population
Evidence for development for development experts
the statistics speak for themselves. Demography favors low-income countries. Rich countries are in a demographic deficit, which does not bode well for consumption-driven economies and aging populations.
Gini coefficient
the measure of development. Many countries have increasingly high levels of inequality. The US gini co-efficient is 0.41 (closest to 0 is more equal)
NGO
non-governmental organization
Bi-lateral Development Agency
Foreign aid from one country. Example USAID - aid from the United States Agency for International Development
Multi-lateral Development Agency
Agency that represents multiple countries. Example UNDP - united nations development programme or the world bank FAO - food and agriculture organization
Point 4
First US foreign aid/technical assistance focused on developing countries post World War 2
Development
The process of improvement to people’s level of well-being, their quality of life, and their capacity to participate in the political, social, and economic systems that influence their well-being.
Who defines what is the goal of development?
In the past it was defined in terms of Economic goal: increase GNP (gross national product) and GDP (Gross domestic product). Other goals Basic need goal: access to health, shelter, food, and security; Human development goal
How to achieve development depends on the goal and definition of development
Market-led/private sector, government-led, or a combination of the two
Government approach
targets underdevelopment such as poverty and time
Market approach
Assumes benefits of the market will be dispersed widely
Market-led Growth Oriented: Trickle Down
focus on wealthiest/ most productive segment of society and wealth will trickle down to others
Reasons for economic growth-oriented development strategy
Fear of communism/post WWII and walter Rostow, economist to achieve economic development. Factories, Infrastructure: roads, railroads, and ports.
Modernization effort
Modernization is planned change to instill Western modern technologies and values into non-Western cultures and areas
Human Development Approach/Index (HDI)
Health - life expectancy, child mortality, nutrition and disease burden, education, standard of living. Come up with a measure between 0-1
Basic Human Needs Approach
focus more on people and their basic human needs
Structural Adjustment Programs (SAP)
Initiatives to reduce the role of governments in economic activities and open up countries to global markets; privatize economy and even social services; and balance budgets by reducing expenditures to social services and programs - health and education
Eurocentrism
Implies having power over knowledge systems and because of this is regarded as reflecting existing class, gender, and ethnic power relations such that the opinions of ‘White middle-class or elite meant in the North and their institutions are privileged
Organization for Economic Cooperation and Development (OECD)
Countries - 37 democratize countries that Sen says many give aid
Millenium Development Goal (MDG)
Goal of reducing world’s hungry by half from 2000-2015
Evidence of the “Good News Narratives”
The target for reducing global poverty by 40 percent between 2000-2015, but World Bank and UN say poverty goals were achieved by 2010
The UN Food and Agriculture Organization Fudges numbers to be celebrated
in 2012 they changed the methodology of their goal to beat hunger by reducing the number of calories that need to be met daily down to 1800 instead of the at least 2200 cal
Causes of and patterns of development
Post World War 2 - era of reconstruction and development
African Socialism
Rich countries are under developing poor countries
Dependency theory
Core Capitalist countries are dependent for their growth on exploiting resources and markets in poor satellite countries
Neocolonial development
continue the path of capitalist development like colonies - Kenya, and Ivory Coast. Keep large dependence on former colonial powers and their private corporations
!980s through 1990: Era of SAP Reality
Many African states were in deep dept in the 1980s due to excessive lending by the World Bank and IMF in the 1970s - a lot of oil money around at the time that needed to be put to work
What does SAP Stand for?
Structural adjustment program
Wave of democratic elections across the global south/low-income countries
After the failure of SAP fair and democratic elections became the goal
BRICS
Six nations that will joing brazil, russia, India, china, and south africa
Internal policy reforms of SAP
Increased role of the market in the domestic economy, privatization of state firms which allows for greater competition and reduces the drain on state resources, removal of state subsidies and wage control, along with the reduction government workforce
External policy reforms
Encourage foreign investment and increase exports. Currency devaluation, removal or reduction in tariffs, and the end of state control of exports
Neoliberalism
The ultimate free market approach brings market principles to many different spheres of social life and emphasizes individual accountability, responsibility, and economic efficiency
Downsides of the neo-liberal era
land grabs/governments sell off lands and resources to wealthy corporations; mineral extraction; support for autocrats and dictators with little concern for equity
Development Theory
a conceptual framework that explains in this case development or underdevelopment
The development theory of water line
Theory becomes a development approach which then becomes policy and finally projects and programs
Theory and approach 1 - Political economy
Dependency theory - rich countries are developing poor countries through the extraction of resources, labor, and other goods. Core capitalist countries are dependent for their growth on exploring these resources
Basis of world systems theory - Hickel
So Hickel claims that you need to look historically to see this pattern. Such as the value of labor that was exploited from enslaved Africans in the 1600-1800 or the amount of silver taken from South America. Colonization
What are the effects of colonialism on underdevelopment?
They tax residents so they have to sell their labor to European plantations and industries. Infrastructure was only built in areas that helped the exploitation of goods such as roads and ports
World Systems Theory
-Recognizes regional core/periphery or semi-periphery relations.
- Very dynamic core changes.
Is about the history of capitalism and how it was dependent on developing the core relations
Marxism
the labor value of what is takes to produce a product or commodity
Neoclassical Economic Development Theory
Walter Rostow: stages of economic growth used to explain how society and economy develop. The final stage is a stage of high consumption such as the US, not sustainable
Modernization Theory
Modernization theory applied to development is the idea that development can only be achieved through planned change to instill Western modern technologies and values into non-Western cultures. It assumes to be developed is to be like European and American white males. ‘The West is the Best’
Neoliberalism Theory
Ultimate free market approach that brings market principles to many different spheres of social live and emphasizes individual accountability, responsibility, and economic efficiency,
Political Economy
State-directed development - Hickel calls developmentalism. Important substitution activities to reduce dependence on global imports, limit foreign ownership of companies, land reform, tax reform to counter high levels of inequality. promote labor unions, social safety nets and social services
Neoclassical: Econ stages of growth and neoliberalism
Promote markets and economic growth, for neolib - reduce most government interventions, promote global trade/integration.
The world bank and international Monetary Fund (IMF)
key development institutions that embody certain theory and approaches
Tied Foreign Aid
when receipt of foreign aid is dependent on a political act for the donor country
Surplus Labor Theory of Development
W.A. Lewis - the key to development is to transfer labor from traditional rural sector unproductive to productive commercial enterprises and industrial
Problems with Lewis’s Surplus theory
Labor is not surplus or free. Honesty very rasist
Development Studies
Viewed as progressive, contributing to post-colonial developmet and advance. Break with some of the legacy of colonialism
Global/Geographic Inequality
Dependency theory helps to explain geographic inequality
Intra-country inequality
Distribution of wealth within a country among upper ,middle, and lower classes
Short-term Inequality: Cost of development
Use the example of the J curve. Economy goes down steeply during initial adjustment stage, and then begins to rise like the shape of a J
Absolute poverty
total lack of basic resources and needs. One small event or shock can result in death
Relative poverty
One is poor relative to other members of society and community
A. Sen’s definition of poverty
the capability approach - not what people have but what they can do and be. What they are capable of being
Sen’s Five Freedom
Political, economic facilities, social opportunities, transparency, and protective security. The freedom to achieve and capabilities to function
Bottom line of capability approach
Not all people start off with the same freedoms
Martha Nussbaum list of ten central human capabilities should have
Life; bodily health; Imagination and thought; emotional well-being; play/leisure; control over one’s environment
Persistent or chronic poverty
the poverty that persists across 2 or more generations
Transitory poverty
individuals or households are temporarily poor and through accumulating assets, income and other resources they move out of poverty
Natural disaster or shock impacts
better-off households can survive and evenprosper during a natural disaster while others can not
Resilience
the capacity to bounce back or recover from events/shocks
Vulnerability
the decreased capacity to deal with a negative even or shock such as a disaster, loss of job, or illness
Risk
can put a probability/statistical measue of an event occuring
Uncertainty
cannot put a probability/statistical measue of an event occurring. People generally avoid uncertainty
