Week 11 - Development Paradigm Shifts: Have we reached the end of Neoliberalism? Flashcards
Where can we see global convergence and divergence?
global convergence (reduction in inequalities between countries) and divergence (rising inequalities within countries)
Why did income inequalities between countries surge during the 19th-20th century?
due to European industrialisation, colonialism, and innovation
How much did between-country inequality account for of global income inequalities by 2000?
between-country inequality accounted for 75% of global income inequalities by 2000
What were the Millennium Development Goals (MDGs) framed and focused on?
predominantly framed within a developed-developing (North-South) categorisation
goals focused on rich countries setting targets for poor countries
What are three trends we saw of reduction in global inequality?
global Gini coefficient fell
extreme poverty reduced
global middle class expanded
What is the data on global Gini coefficient falling? (reduction in global inequality)
fell from 69.7 (1988) to 62.5 (2013)
What is the data on extreme poverty reduction? (reduction in global inequality)
Extreme poverty (<$1.90/day) reduced from 49.2% (1990) to 13.4% (2013)
How did global middle class expand? (reduction in global inequality)
notable transitions from low-income to middle-income status
For who did global GDP share rise?
share of global GDP for LICs and MICs rose, led by China, India, and Brazil
What is the prediction for European-American share of global GDP?
European-American share of global GDP will decline from 50% (2010) to 20-30% by 2100
What health development trends were seen globally?
life expectancy gaps narrowed significantly during the 20th and 21st centuries
under-5 and maternal mortality rates dropped globally
substantial disparities persist in LICs/MICs for cardiovascular care, cancer care, pain management, and palliative care
How did the primary enrolment trend change globally?
North-South gaps in educational enrolment declined significantly
primary enrolment increased from 24% (1870) to 82% (2010), nearing universal coverage
How did the global literacy trend change globally?
global literacy rose from 36% (1950) to 82% (1999) and 85% (2014)
illiteracy remains substantial in South Asia and sub-Saharan Africa, affecting one-third of the population in 2010
How did the cognitive attainment trend change globally?
cognitive attainment trends do not display clear convergence
For how much of global emissions did LICs/MICs account for and who is the largest emitter?
LICs/MICs account for ~60% of global emissions
China is the largest emitter
How are the emission gaps between countries?
per capita emissions gaps remain significant, with HICs contributing three times more than LICs/MICs
consumption-based emissions reveal persistent inequalities
What are environmental inequalities within-countries?
within-country disparities reflect a “10:50” relationship: Top 10% emit nearly 50% of emissions, while the bottom 50% emit only 10%.
What was the focus of development discourse in the 19th and 20th centuries?
emphasising developing countries emulating developed ones, often through binary categorisations like “First World” vs. “Third World”
What challenges the North-South binary today?
“Converging divergence”, decreasing between-country inequalities but increasing within-country inequalities
How has within-country inequality changed?
Inequality has risen sharply, with wealth increasingly concentrated in the top 1%
What is the central argument of the paper “From International to Global Development”?
It argues for shifting from “international development,” framed as a North-South binary, to “global development” that addresses interconnected global challenges
How have health disparities manifested?
Life expectancy gaps have widened between higher and lower income groups globally
What trends are evident in educational inequalities?
Within-country differences accounted for 77% of educational inequality by 2010, up from 58% in 1950
What is the “precariat”?
A global class characterized by precarious jobs, uncertain career paths, and limited rights, affecting both the South and North
What is the “converging divergence” concept?
While between-country inequalities decline, within-country inequalities rise, complicating traditional categorizations like North vs. South
What global development framework does the paper “From International to Global Development” advocate?
A universal agenda addressing interconnected challenges like inequality, climate change, and health, exemplified by the Sustainable Development Goals (SDGs)
What policy shifts are proposed in the paper “From International to Global Development”?
Moving beyond aid-dependent models to multi-directional cooperation, balancing poverty alleviation in the South and sustainability in the North
How do future life views differ between regions?
Optimism is more common in lower-income countries, while pessimism prevails in higher-income ones
What shift do Horner and Hulme propose?
Transitioning from “international development” to “global development,” emphasising a “one world” perspective over binary divisions
What is their key argument against the binary perspective?
Binaries like “North” and “South” are outdated due to converging divergence
What are the main critiques of Horner and Hulme’s argument? (3)
1) They fail to define “development” beyond poverty and inequality outcomes
2) They misinterpret development studies, overlooking its focus on structural transformation
3) They neglect the impact of neoliberalism and its crises since the 1970s
How is “development” defined in classical studies?
As a fundamental transformation from pre-transitional conditions to modernity, not necessarily following paths of earlier developers
What role does technology play in global development?
Affordable and accessible technologies shape global processes, structuring centers and peripheries
What is the center-periphery approach (Prebisch)?
It highlights economic marginalisation and inequality in peripheries due to fragmented and specialized structures
Why is redistribution important in development?
High inequality impedes effective resource mobilisation and industrialisation
How did Structural Adjustment Programs (SAPs) affect development?
They undermined developmental gains and created polarization, with post-1990s growth often being a recovery from crises
How has reliance on World Bank data been problematic?
It obscures earlier developmental achievements and the damage caused by neoliberal policies
What characterised the 1970s development trends?
Rapid growth in developing countries reduced global inequalities, with strong calls for redistribution and a New International Economic Order
How does China exemplify classical development models?
Through structural transformation and redistribution, but with external vulnerabilities and dependence
What challenges accompany Africa’s growth?
Rising external debt creates vulnerabilities similar to those seen in earlier crises
Why is preserving classical development studies important?
To reaffirm the focus on structural transformation and inequality, avoiding a diluted “global development” framework
What lessons are critical for sustainable development?
Past successes and failures in redistribution and domestic inequality highlight pathways to effective resource mobilszation
How does the World Bank influence developing countries?
Through its lending policies, access to international capital markets, large research and policy-design budget, and global media coverage for its reports
What is the World Bank’s stance under the Washington Consensus?
Advocates for limited state intervention, emphasizing regulatory frameworks, open global economies, and market-friendly policies while discouraging sectoral industrial policies and directed credit
How does Japan’s development philosophy differ from the World Bank’s?
Japan emphasises state-led industrial policies, including directed and subsidized credit, strategic industry promotion, and close state-market collaboration, contrasting with the World Bank’s preference for financial deregulation and market-determined policies
Why does Japan resist the free-market approach despite its global power? (4)
Ideological conviction (belief in the effectiveness of interventionist policies)
Organisational interest (protect post-war achievements like directed credit)
National material interest (strengthen influence in East and Southeast Asia)
Nationalism (assert intellectual and economic leadership globally)
What were the main disagreements between Japan and the World Bank regarding financial policies?
Japan supports directed credit and subsidised rates for industrial objectives
The World Bank insists on financial deregulation and market-determined rates
Why does the World Bank view Japan’s interventionist ideas as a threat?
Contradicts its commitment to financial deregulation
Undermines its reputation and borrowing ability
Conflicts with U.S. strategic and diplomatic interests
Challenges its constitutionally mandated apolitical stance
Why was the East Asian Miracle Report controversial within the World Bank?
It was developed reluctantly after Japan financed it and dropped opposition to financial deregulation directives
The report compromised by recognising some benefits of state intervention but remained heavily weighted toward market-friendly policies
What did the East Asian Miracle Report achieve for Japan?
It secured limited acknowledgment of the benefits of selective interventions in Japan and Korea’s development but did not significantly shift the Bank’s neoliberal stance
How does the World Bank maintain its neoliberal paradigm? (4)
Staffing (employing economists trained primarily in North America or Britain, with interventionist supporters rarely selected)
Internal Review Process (ensures all publications align with market-friendly policies)
Editorial Oversight (editors align content with Bank narratives, avoiding external criticism)
Incremental Change (sharp policy changes are rare; shifts occur gradually through small concessions)
How did Japan use the East Asian Miracle Report to promote its development philosophy?
Japan funded the report to highlight its interventionist strategies but achieved only modest shifts in the World Bank’s stance
What were Japan’s key motivations for challenging the World Bank’s neoliberal paradigm?
Showcase the success of its development model
Protect its directed credit systems
Enhance geopolitical influence in East and Southeast Asia
What does the tension between Japan and the World Bank reveal about development paradigms?
It highlights the ongoing debate between neoliberal orthodoxy and interventionist approaches, as well as the geopolitical influence of international organizations in shaping global economic policies
Why is the World Bank considered a global actor in development?
It balances professional norms, US interests, and international influence, shaping global economic policies while maintaining its authority and paradigm
What is a “policy paradigm”?
A conceptual framework guiding policymakers in defining problems, setting goals, and identifying solutions
What is “social learning” in policymaking?
The process by which policymakers adjust goals, instruments, and policies based on new information and past experiences
What are first-order changes in policymaking?
Incremental adjustments to policy settings without altering overarching goals or instruments
What are second-order changes in policymaking?
Modifications to the instruments of policy while keeping the goals intact
What are third-order changes in policymaking?
Radical shifts involving redefinitions of goals, instruments, and underlying paradigms, such as the shift from Keynesianism to monetarism in Britain
How do ideas shape policymaking, according to Hall?
Ideas influence policy decisions and frame how problems and solutions are understood, playing a central role in paradigm shifts
Why does Hall critique state-centric models of policymaking?
He argues that paradigm shifts are societal and political phenomena, influenced by broader forces like media, electoral politics, and financial markets, rather than solely state autonomy
What role do crises and anomalies play in paradigm shifts?
Crises expose failures within existing paradigms, acting as catalysts for the adoption of new paradigms, as seen in Keynesianism’s failure to address 1970s stagflation
What paradigm shift occurred in Britain’s macroeconomic policy during 1970-1989?
The transition from Keynesianism to monetarism
How did Margaret Thatcher influence Britain’s paradigm shift?
She championed monetarism, aligning political leadership with the new paradigm
How does Hall apply Thomas Kuhn’s concept of paradigm shifts to policymaking?
He draws on Kuhn’s philosophy of science to explain discontinuities in policy, suggesting that paradigm shifts arise when dominant frameworks are replaced
How does Hall critique Heclo’s concept of social learning?
Hall expands Heclo’s focus on bureaucratic learning by emphasising the role of societal forces in driving paradigm shifts
What is Hall’s view on the relationship between state autonomy and societal forces?
Hall argues that state autonomy alone cannot explain paradigm shifts, as broader societal debates, electoral competition, and external pressures are also crucial
What role do politicians and media play in paradigm shifts?
Politicians and media help champion new paradigms and influence public opinion, shaping the acceptance of policy changes
