UNIT 3: Development Flashcards
What is DEVELOPMENT?
Multidimensional undertaking to improve people’s standards of living
What is GLOBALIZATION?
A process by which the world’s economies, societies and cultures are becoming increasingly integrated. Reduction of barriers and borders, as people, goods, services and ideas flow more freely between different parts of the world.
What is SUSTAINTABILITY?
The idea that development should meet present needs without compromising the ability of future generations to meet theirs.
What was the effectiveness and limitations of the structural adjustment programs?
EFFECTIVE: reduce size of state and eliminate tariffs or barriers to trade. Allow financial movement through market driven growth.
LIMITATIONS: policies neglect human and environmental issues. Ensures economic growth, not development.
What does HUMAN DEVELOPMENT entail?
- Directly enhancing human abilities:
a. Long and healthy life
b. Knowledge
c. Decent standards of living - Creating conditions for human development to occur:
a. Participation in political and community life
b. Environmental sustainability
c. Human security
d. Gender equality
Which are the MEASURES of DEVELOPMENT?
- Happy Planet Index: measures the extent to which countries are able to provide a happy, long and sustainable life for their citizens.
- Human Development Index: encompasses measures related to life expectancy, literacy rate and standards of living.
FACTORS impacting DEVELOPMENT?
POLITICAL FACTORS:
1. The existence of conflict hampers development: focus shifts from development goals to security, investment ceases and state looses capacity to attain people’s needs (health, education, and justice).
2. Corruption is pervasive: accountability becomes unclear
IDEOLOGICAL FACTORS:
1. Socialism: state should provide basic goods and services
2. Liberalism: private property of the means of production. Resources are allocated freely.
ECONOMIC FACTORS:
–> Capital, credit and aid: bring negative incentives for government to do things right: Dependency to external help.
GLOBAL CHALLENGES hindering development
CLIMATE CHANGE:
a. Countries which contribute less (LEDCs) are impacted the most because of economic dependence to the land.
b. POOREST countries account for 60% population, but 15% emissions.
c. RICHEST countries account 16% of population, but 40% emissions.
d. Sustainable measures are too burdensome or costly for LEDCs
GENDER INEQUALITIES: UN woman suggest that change needs to be made or by 2030…
a. 100 million girls excluded from education
b. high maternal death rates
c. 340 women living in abject povery
–> due to lack of opportunities and ownership
Impact of multinational enterprises on DEVELOPMENT:
PROMOTE: economic growth, infrastructure, jobs, services (more comprehensive approach on development).
HINDER: environmental impacts on the way they produce and lack of regulation regarding labor conditions.
What is POVERTY?
Absence of minimum resources necessary to meet basic human needs of food, clothing and shelter.
What is HUMAN DEVELOPMENT?
Enlarging people’s choices in a way that enables them to lead longer, healthier lives, gain knowledge and have a comfortable standard of living.
Which are the contemporary pathways to development?
⭐ Neoliberal theories:
AIM: market regulates itself by economic growth, through deregulation and removal of tariffs and barriers (free trade and privatization of assets).
CHARACTERISTICS:
1. Openness to foreign capital
2. International division of labor → dependency theories
⭐ State capitalism: (China, Russia)
AIM: State holds supreme control over production and the usage of capital → utilize market for political advantages
CHARACTERISTICS:
1. State owning partial companies to control decisions
2. Directing subsidies
3. Hard for emerging companies to compete effectively
⭐ Trade liberalization:
AIM: Opening up the economy to trade and investment with the outside world. Increase in production and export of goods in which they possess competitive advantage to encourage innovation and competitiveness.
⭐ Knowledge society/economy:
AIM: Development of individual on cultural ways based on the fact that human knowledge is used to run development.
CHARACTERISTICS:
1. Education and training
2. Think tanks: very educated people get together in order to project the future
3. Societies were money is invested in knowledge
⭐ Tourism:
AIM: Movement of people from one place to another within or across borders. Buying foreign goods like tourism are exports from residential country and imports into the buyer’s country of residence
PROBLEM:
1. Environmental impact
2. Low-payment jobs
⭐Entrepreneurship:
AIM: Actor willing to take the risk to transform a role into a business plan or initiative
CHARACTERISTICS:
1. Solid institutions and characteristics of society
2. Financing mechanisms
3. Infrastructure: Internet access or physical
⭐Circular economy:
AIM: Recycling or reusing the by products to generate new wealth and improve sustainability. Involves: incentives for recycling, reusing.
PROBLEM FOUND:
–> Typical/linear economy: resources has a negative impact on the environment and tends to drain resources.
Effect of ECONOMIC GROWTH in DEVELOPMENT:
Economic growth is a prerequisite for development but doesn’t condition it. It also depends on environmental and human aspects.
