Final Study Guide for Intro to International Development 1010 with Colin Crawford at Tulane University
Final Study Guide for Intro to International Development 1010 with Colin Crawford at Tulane University IDEV 1010
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Final Study Guide For IDEV 1010 By Ian Seaman Lecture Notes: 1/11 Development Definitions: ● French Theory of Development development is when we all share uniformed values ● Aqueduct Analogy; ○ Monty Python; romans gave infrastructure but not political freedom ● U.N ranks medicine/health as the top development priority 1/13 Problems of Language: ● Crawford does not like use of “Third World Country” ● BRICKS Brazil, Russia, India, China, Korea, and South Africa are “emerging markets/economies”, referring to economicallyfocused development ● Anachronistic against time, of the past Economic Focus of Development: ● economics growth > population growth > technological gains > health care gains ● Assistance Program as Strategy for Development was based on Modernization Theory, the North model would improve the South ● adopted Keynesian strategy of providing economic aid to the South to spur growth ● Applied Marshall Plan (reconstruction of postWWII Europe) to developing world with supplement of Bretton Woods Institutions (World Bank, International Monetary Fund) Example of the the Point IV Program: ● Truman’s Point IV Program (194053) development program based on “democratic fair dealing” (liberalization, free trade) ● Goals: build infrastructure, create investment climate, improve education and health etc. ● Methods: Technical Cooperation Agencies, ExportImport Banks and World Bank guarantees to private investors, Bilateral treaties ● Benefits for the U.S: expansion of extractive industry (more raw materials), larger export market, greater political security, less communism, perception of generosity ● Results: dependency theory, IMF gave temporary stabilization but it did not last Post WWII Development: Marshall Plan > Point IV Program > World Bank/IMF programs of Conditionality (liberalization) anStructural Adjustment Programs Sustainable Development: ● environmental concerns lead to 1972 UN conference on the Human Environment ● lead to 1992 UN conference on the Environment and Development in Rio where the first Sustainable Development Goals (SDGs) were established ● these SDGs were Normative Prescriptions what one thinks it should be, the desirable method Sachs’ SDGs comprised of four parts; 1) economic prosperity 2) social inclusion and cohesion 3) environmental sustainability 4) good governance (government and corporations) 1/20 Critiques of the Point IV Program: ● limited benefit; small “pilot” projects remained small ● investment by IMF and the World Bank was not sustainable Shift In Focus: ● transition from focus on economic growth to sustainable development ● Sustainable Development “meeting the needs of the current generation without compromising the needs of future generations” (Brundtland Commission, 1987) ● decentennial conferences after the Earth Summit of 1972, 1992 Conference in Rio, 2012 Rio +20 conference which called for Sachs’ SDGs Challenges to Sachs’s SDGs: 1) economic prosperity; “too big to fail” banks 2) social inclusion and cohesion; syrian refugee crisis 3) environmental sustainability; PFOA used in teflon production 4) good governance; postconflict Cote d’Ivoire The Sustainable Development Goals (20152030): ● 17 goals and 169 targets; defeating the onesizefitsall methodology ● 5 concerns about wellbeing distribution; poverty, inequality, social mobility/equity, discrimination/exclusion, “social cohesion” Equality giving everyone the same job opportunities Equity focusing resources on those with less opportunities as those in the upper half Complex Systems Theory taking a handful of challenges and designing an allinclusive approach that integrates all responses to these challenges 1/25 Amartya Sen: ● indian economist, won nobel prize in economics (1998) ● examined debate between MeansFocused development (Condorcet) vs. EndsFocused development (Malthus) ● Sen was meansfocused, considered freedom as much of a mean as well as an end ● “for every freedom there is an unfreedom” poverty, tyranny, intolerance, neglect ● emphasized individual initiative (agency) ● Participatory Freedom the people involved can participate in decisions, this is a central issue in development Sen’s Impact: ● Human Development Index takes GNI per capita, # years of schooling for adults, life expectancy at birth, used by UNDP, modified in 2011 ● Sen and Nosbaum radically changed international organization’s missions for development ● example of “ Sleep Mafia” groups who rent out pavement for homeless Development Theory Over Time: 1) 1950s 60s: stages of economic growth, modernization theory, structuralism 2) 1970s: “Endogenous Development ”, growth with equity, Basic Needs Strategy 3) 1980s: the “lost decade” of development, structural adjustment 4) 1990s: Sustainable Development 5) 20002015: a postdevelopment world? Development Over Time: 1) 1950s Modernization and Structuralism a) focus on reconstruction, Marshall Plan, limiting communist expansion b) increased role of the regulatory state c) beginning of development assistance, Bretton Woods Institutions (1944), UN, Point IV Program d) Modernization i) focused on internal factors as barriers to economic growth ii) Rostow’s 5 Stages of Economic Growth Model e) Structuralism i) argued that external factors were barriers to economic growth, Prebisch CenterPeriphery model ii) transform economy to rely more on industry and less on agriculture (ISI) iii) reduced dependence on trade with center, focus on Import Substitution (ISI) 1/27 2) 1960s Dependency Theory a) soviet bloc was growing, containment, decolonization b) reduction in ISI, focus on StateLed Export Promotion (SLEP) c) Aid programs; USAID ,Peace Corps , and Alliance for Progress d) 3 major theories; modernization, structuralism, and dependency theory e) Dependency Theory i) built on structuralism, emphasized underdevelopment came from expansion of capitalism ii) elite multinationals in LDCs ally with western capitalists lead to weakening of the economy iii) reduce relation between center and the periphery and focus on social justice and equality were the main aims 3) 1970s Endogenous Development and Basic Needs Strategies a) economic slump, collapse of Bretton Woods’ fixed exchange rate system, oil crisis b) end of Vietnam war, Yom Kippur War, Camp David Accords c) call for redistribution of international wealth (NIEO), Endogenous Development (individualist) d) proposed “TrickleDown Effect which did not have desired impact e) Basic Needs Strategies i) Maslow’s Hierarchy, inability of market to care for the poor, 4 categories; minimum requirements of families, access to essential services, employment, and human rights ii) these services would be provided by the government 4) 1980s Neoclassicism a) cold war, Reagan Doctrine, IranIraq war, debt crisis from 2nd oil shock, soviet collapse b) return of neoclassical (same as neoliberalism) as a conservative concept of increased role of the market and limited state role c) Reagan and Thatcher favored macro policies supporting the private sector d) Neoclassical Welfare (government controls public policy) vs. LaissezFaire e) Washington Consensus was introduced along with neoliberalism f) fiscal austerity (less spending), privatization, trade liberalization, deregulation 5) 1990s Sustainable Human Development a) democratization in Central and Eastern Europe, end of cold war, technology boom b) proliferation of NonGovernmental Organizations (NGOs), frustration with IMF/ World Bank c) Sustainable Human Development i) social, economic, and environmental objectives, growth, equity, freedom, agency d) Srinivasan he counterargued HDI, thought that the HDI was a faulty indicator 2/2 6) 20002015 Millennium Development Goals a) 9/11, war on terror, financial crisis, arab spring, climate change, migrations b) Millennium Development Goals i) poverty, education, gender equality, maternal health, HIV/AIDS, malaria c) Focus on SHD; growing private foundations, NGOs, billions spent on Iraq/Afghanistan d) Normative (rules, objectives) Approach vs. Holistic (allinclusive, overall) approach 7) 20152030 Sustainable Development Goals a) 17 goals and 169 targets b) ex.s end poverty, end hunger, ensure health, ensure inclusion, achieve gender equality, ensure water and sanitation, access to energy, promote economic growth, build infrastructure, reduce inequality Traditional Measures of Wellbeing: ● measures/definitions; GDP, GNI, Purchasing Power Parity (PPP) ● measures/definitions for distribution; GINI index, InequalityAdjusted HDI (IHDI) ● GINI Index economic measure of inequality within a country (between 0 and 1, 1 being totally equal ● Human Development Index measures of economic growth with longevity and years of education Some Causes of Inequalities: 1) history colonial legacy, borders, size of landholdings 2) geography coastal vs central areas, discrimination, government policies, urbanization 3) country classifications World Bank determines lending eligibility; very high income lower income Sachs’ Three Points: 1) “diffusion process” of economic development 2) patterns of diffusion are discernable 3) these factors are constantly changing “Clinical Economics” differential diagnosis; checklist of facets of the problem Guest Speakers: 2/3 Dr. Eamon Kelly Economic Indicators: ● GNI = GDP + net receipts from abroad of wages, salaries, and property income ● The Multiplier = change in consumption > change in investment > change in income Conservative Economic Ideals: ● Austerity aim of reducing debt, cut back government spending, increase confidence ● avoiding runaway inflation, default, burdening future generations The Stimulus Package: ● increase money supply, expenditures, economic activity ● a lot of borrowing, check if the stimulus is inflationary ● 7% of our debt is in Japan, 8% in China, 19% to others, 66% to Americans Economic Development: ● infrastructure approach: ○ human education and health, immigration, morbidity ○ social legal and political institutions ○ economic fiscal and monetary policy, progressive tax system ○ physical oil, energy, roads, electricity ● Ireland is a perfect combination of these four infrastructures 2/10 Dr. Steflia Aims of the Millennium Development Goals (Created in 2000): 1) Reducing Poverty and Hunger 2) Universal Education 3) Promote Gender Equality 4) Reduce Child Mortality 5) Improve Maternal Health 6) Combat Malaria, HIV/AIDS 7) Insure environmental sustainability 8) Develop a global partnership ● mix of very specific and extremely wage ● includes main facets of HDI/Human Development Approach Methodological Critiques of the MDGs: ● the targets had to be universally acceptable and measurable (hence lack of human rights and government transparency) ● also based on priorities in 1990 ● because of a mix of negative (reduce) and positive (achieve) goals, causes of confusion ● plus a mix of absolute (all, universal access) and relative (⅔ or halves) ● critique of vagueness, and level of redundancy MDGs in Relation to Africa: ● Points from the Easterly Article; ○ the failure of Africa to meet the MDGs are not motivating AFrican countries to increase development efforts, as well as investment in them ○ this “failure” is a result of methodological inaccuracies ● percentage changes (⅔ etc.) are unfair to distributions that are skewed to the left; in LDCs, you would have to pull a lot more people out of poverty than those with a more even distribution ● this point is more disturbing when looking at child mortality ● Absolute targets are even more difficult for those starting further behind ○ World Bank condemns Burkina Faso for not meeting MDG 2, when Burkina Faso’s rate of education expansion is twice that of Western experience ● an empirical setup for failure; MDG 6 is clearly directed towards Africa Implications of These Methodological Inaccuracies: ● discouraged investment; countries who appear on a failed state index may keep investors away ● reinforces Africa’s stereotype, it is patronizing, demoralizing 2/17 MDGs By 2015: ● besides subsaharan Africa, goals of poverty, clean water, and gender equality were reached, between 19902010, people living on $1.25 or less a day went 47% to 22% ● however, there are high regional/national disparities (urban vs rural income) ● some targets were never seriously expected to be reached by 2015 ● there was a 20% drop in % of populations living in slums, but the absolute population of slum dwellers increased Issues: ● “global partnership” lacks vision; participation and responsibility of North and South ● 2015 Paris Climate Change pledges were effective Why do we still use MDGs: ● increased awareness, increased funding ● allows for a scale for comparison The StiglitzSenFitoussi Commission economists seeking a shift from GDP to individual economic wellbeing (a focus on individual income and consumption) to a focus on “subjective wellbeing”, capabilities (doings and beings) and four allocations of nonmonetary things Response to GDP and GNI’s Pitfalls: ● World Development Indicators poverty is living under $2/day, adjust for “purchasing power parity” (differences in market baskets) ● problems with the WDIs; environmental degradation, quality/change, lacking environmental costs, social costs, community costs ● case of Bhutan ; lower middle income, very poor, but very high rate of happiness ● China (PRC) tried a “green GDP” in 2006, abandoned it in 2007, was losing 3% GDP ● In contrast, Bhutan created a happiness index where they were towards the top Multidimensional Poverty Indexes (MDIs): 1) Option 1 a) established by the StiglitzSenFitoussi Commission b) subjective (access,friends) and objective (GNI, poverty) wellbeing c) sustainability (quality and quantity of natural resources + capital) d) income, consumption, nonmarket measures e) household level (assets and liabilities, wealth distribution) f) sustainability analysis threshold for resource stock (expensive, subjective) g) danger of monetizing value of ecosystem service 2/22 2) Option 2 a) environmental sustainability metrics b) “Genuine Progress Indicators” (20 variables), Index of Sustainable Economic Welfare c) argues that by measuring this, it measures our ability to live on this planet 3) Option 3 Feminist Approach a) internalizes factors outside economic production 4) Option 4 Utilitarian Approach a) looks at preferences of the citizens, which preferences have been satisfied 5) Option 5 ResourceBased Approach a) focuses on distribution of assets 6) Option 6 Capabilities Approach (to be continued later in the semester) 7) Poverty Spotlight : ● program from the Fundacion Paraguaya that uses green, yellow, red to indicate ideal, poverty, and extreme poverty with pictures of different categories (nutrition, sanitation) to gauge from people what they think their condition is ● allows people to convey themselves what they have/don’t have ● only women were surveyed for the 50 indicators What does it mean to be poor… people have a lack of: standard of living (income, consumption) security (level of vulnerability) opportunity (access) empowerment quality of life Measuring Poverty: ● U.S Federal Poverty Line estimated ⅓ of income is spent on food in 1964, today it is ⅙ (2015 FPL = $11,770/year) (2014; 27% of NOLA was in poverty) ● “Asset Poor” not having enough money to provide basic needs for oneself ● Grameen Progress out of Poverty Index model for microlending institutions, questioning of household characteristics and asset ownership, highly individualized ● Global poverty line at $1.90/day; cost of living across countries (PPP) ● Ex. MDG1 Target 1, halve proportion of income that is less than $1.90/day; poverty was reduced everywhere but unevenly, there was also no data in conflict areas “Global South/Global North” tendency of more northern countries to be better off than southern countries “Commons” global resources that we all depend on, coined by Amartya Sen Gustavo Esteva : ● from Mexico City, lives in Oaxaca where there is a large indigenous population ● criticized the word “development”, carries very negative connotation, suggests subjugation; “impedes thinking of one’s own objectives” ● argues further that societies are not biological organisms, we do not go from underdeveloped to highly developed, that this theory is highly westernized ● “development always indicates favorable change by some universal law” ● “economization and colonization were synonymous” 2/24 Esteva’s Response: ● 1) limiting the economic sphere 2) resisting attempts to restore it ● Education; antieconomic way of learning, “reembedding learning in culture” ● Healthcare; recognizing health as person's’ own healing capacity ● Nutrition; reduced inputs, intercropping (inserting plants next to each other) ● focus more on traditional solutions rather than universal ones ● “New Commons” “recovering their autonomous ways of living.” ● to institute a “new commons”, establish “political controls… for posteconomic events” (very vague) Esteva’s Manifesto ● Contrast with Piketty on equity Piketty: ● strategy of injecting equity into the economic and social system ● wrote the long and intensive book “Capital” ● strategies; income redistribution, global taxes on capital, reenergize labor rights, government spending (infrastructure) ● income redistribution; ○ increase in progressive income taxation ○ increase in impot de solidarite sur la fortune (wealth tax) ○ increase in capital gains tax ○ and a global tax to prevent capital flight ○ raise minimum wage Esteva and the SDGs: ● most goals he may agree with; however “ensure inclusive and equitable quality education” (SDG 4) he may not (because of equitable) ● SDG 10: “reduce inequality within and among countries” along with targets of income growth (10.1), empower social, economic, and political inclusion (10.2) and reduce inequalities of outcome (10.3) ● Piketty would favor the above Banerjee and Duflo Social Inclusion : ● economists at MIT, created JLAB ● goal of combatting the 3 Is: Ideology (modernization theory), Ignorance (ignoring evidencedriven results), and Inertia (continuing to ignore evidence) ● main solution is to find evidencedriven results ● criticize Sachs for pumping capital into countries for development ● Sachs idea of Millennium Villages Project ; interventions in agriculture, sanitation, and health ● Banerjee and Duflo criticize this as a onesizefitsall model ● Banerjee and Duflo propose to experiment locally, reject universal answers, taking small steps, qualitative and quantitative studies Lamont and Small : ● cultural stereotypes send message of little progress ● “culture of poverty”; marginalisation has very negative impacts ● does cultural diversity undercut development through lack of common values? (Oscar Lewis’s argument? ● Lamont and Small’s Argument diversity may provide advantages, recognition of differences to help in development intervention 2/29 Cultural Diversity in Development: ● opposition; cultural uniformity French case of efficiency, same values ● however there are some values at stake; plurality, nonreducibility (too much variety), and incommensurability ● Values of Cultural Diversity (CD) (Lamont and Small’s argument) ○ social cohesion ○ increases competition in the workforce ○ understanding of markets ○ raises social awareness of social weak spots Nussbaum and the Cultural Diversity Approach: ● major liberties that protect pluralities are important capabilities ● CD is not cultural relativism (acceptance of all behaviors, like banning female drivers like in Saudi Arabia) ○ Nussbaum argues that there are overarching capabilities to ensure no cultural relativism ○ example of “The Spirit Catches You and You Fall Down” (Hmong) ● “Tragic Choice” controversial decision between traditions or religious values and western practices ● Nussbaum argues that these “tragic choices” are entrypoints for learning these traditions, could improve cultural competence Critique of Capabilities Approach/Cultural Diversity Approach: ● Nussbaum’s CA and Lamont and Small’s CD are similar and can blend together ● for this reason these two approaches are criticized to be mere extensions of postWWII human rights movement ● Nussbaum human rights norms are more artifacts of resistance to colonization Connecting CD and CA: ● “if we are to develop internal capabilities and extend external opportunities, diversity is essential” ● diversity helps us prioritize and value capabilities (health provision AND health capabilities) ● Nussbaum difficult diversity choices; plural marriages, homeschooling, rejecting western medicine Differences Between the CD and the CA: ● CD focuses more on groups, CA on individuals ● CD argument that poverty is self perpetuating ● Lamont argues that CD creates “a positive identity of lowstatus groups” State Interventions in CD Poverty Reduction: ● affirmative action, income transfers to marginalized groups, targeted employment ● in private/civil society; “fair trade” movement The Capabilities Approach and its Operationalization: ● core principles; income growth is necessary but not sufficient, humans are an end, not a mean, focus on capabilities rather than accumulation of goods ● Sen’s Version of Capabilities: ○ Combination of Functionings ○ Sen’s capabilities list freedoms, sustenance, self esteem ○ Sen is more cultural relativism, Nussbaum prefers human dignity ● Main Components of the CA: ○ emphasis on choices rather than aggregate measures of wellbeing Nussbaum’s Capabilities List: 1) Life 2) Bodily Health 3) Bodily Integrity 4) Senses, Imagination, and Thoughts 5) Emotions 6) Practical reason 7) Affiliation 8) Other Species 9) Play 10)Control over one’s political and material environment ● operationalising the CA; Sen and Nussbaum want an evaluative approach rather than data driven results Readings: Amartya Sen, “Development as Freedom”, Intro and Ch.1 ● development as freedom contrasts with traditional indicators such as economic growth ● to develop is to remove “unfreedoms” ● freedom is required because; ○ progress is achieved through the enhancement of freedoms ○ development is dependent on the free agency of people ● economic unfreedom, social unfreedom, and political unfreedom may all result in one another ● Sen’s famous “Freedoms are not only the primary ends of development, they are also among its principal means.” ● development is as just as expanding freedoms as it is increasing national income ● The Lee Thesis denial of basic political rights fosters rapid economic development ● Agent/Agency the act of, or someone who brings about change in their own values ● Thesis; income and quantity of resources is not enough, we must take into account “freedoms”, which accounts for quality of life, survival, and civil rights ● market mechanisms should not be analyzed through “culmination outcomes” (looking at the ends) but by “comprehensive outcomes” (looking at the means) ● one of the greatest advantages to granting freedoms is the participation in the selection of priorities ● Thet. “evaluation” of development is not a set of criterion by which development is achieved but an indicator of progress when unfreedoms are removed Srinivasan T.N. “Human Development: A New Paradigm or Reinvention of the Wheel?” Human Development: ● Human Development process of widening people’s choices and advancing level of their wellbeing ● Human Development Index (HDI) measures longevity, knowledge, and basic income ● After WWII, GDP per capita became the sole goal of development ● Sen formation of human capabilities is the state of doing or being (being healthy) and using those capabilities is the standard of living Arguing the HDI: ● the HDI measures the formation of human capabilities, it does not measure the ability to live a healthy life ● the data collected to measure the HDI is highly flawed, extremely biased, and errorridden ● “reliable and recent data for estimating life expectancy are not available for 87 out of 117 LDCs” ● there are different definitions for education and knowledge that vary from country to country The Human Development Report’s Impact: ● the HDR has not lead to any significant policy changes; Sri Lanka has had high achievements in life expectancy and education but no country around it has followed Sachs Textbook Ch. 2 Development Labels: ● within the group of LowIncome countries (below middleincome and highincome), there is a subgroup of desperate countries called LeastDeveloped Countries (LDCs) ● the bulk of which is concentrated in Africa and South Asia Inequalities Across Countries and Regions: ● landlocked countries are particularly unfavorable to trade and therefore economic prosperity ● prices vary across countries, this can affect GDP per capita and must be taken into account, this is done by taking the GDP per capita at purchasing power parity ● urban and rural populations are different, for instance in rural areas there tend to be bigger families ● The Gini coefficient number between 0 and 1 (1 being total inequality) ● other factors of inequality include discrimination, government policies, and gender equality Measuring Welfare: ● one of the pioneer indicators of wellbeing is the Human Development Index (HDI) used by the UNDP ● the HDI takes the logarithm of income per person (so HDI is only increased incrementally when income increases), the mean and expected years of schooling, and longevity (life expectancy at birth) ● There has also been a recent movement to measure subjective well being by surveying a population to gauge happiness (affective happiness vs evaluative happiness) ● the focus is not income, it is life satisfaction, a holistic approach Convergence or Divergence: ● LDCs are predicted to converge, as in close the GDP per capita gap, however some countries are completely stuck in the poverty trap. Sachs Textbook Ch. 4 Three Points of Economic Growth over Time: 1) modern economic growth started at one place (England) then spread all over the world 2) this spread or diffusion had patterns, they just did not spread equally 3) different factors of this diffusion are important and also change over time Economic Development: ● development has to be subjective, a diagnosis must be made based on history, geography, culture, and economic structure ● This is called “clinical economics”, making differential diagnoses ● These diagnoses involve seven conditions; ○ poverty trap when the country is too poor to lift itself out of poverty ○ harmful economic strategies ○ financial insolvency (huge debt and/or overspending) of the government ○ physical geography ○ poor governance, corruption, or inefficiency ○ cultural barriers ○ political and security relations with those around them ● Poland Case; several factors like history of a dictatorship and high inflation with falling output had to be used to make a differential diagnosis Solutions to the Poverty Trap: ● government borrows money to invest in public amenities to boost growth ● foreign investors provide the money to finance emergency needs ○ when governments provide this money it is called Official Development Assistance (ODA) ○ when NGOs provide it is called Private Development Assistance Geography: ● challenges of geography include; landlocked, mountainous, tropical climate, and fossil fuel resources ● the introduction of solar photovoltaic (PV) power could be advantageous for Africa ● often resourcerich countries experience conflict and corruption due to rapid wealth accumulation ● tropical climate and drylands have more difficulty facilitating agriculture and are much more susceptible to catastrophic diseases (malaria is climatedependent) Culture: ● Total Fertility Rate (TFR) average number of children a woman will have in her lifetime ● in the poorest countries, TFRs are usually above four ● High TFR means a young population, a low TFR means the population is much older ● Education of young women will cause a lower TFR ● empowering of women allows for more economic leadership and political leadership Politics: ● government is mostly responsible for infrastructure, that is necessary for the economy to develop ● government also can affect mobility by changing policies about education ● government also regulates the economy, another factor in economic development Sachs Textbook Ch. 7 Inequality in Society: ● discrimination based on socioeconomic status, race, or religion may perpetuate poverty ● issues of social inequality circle around income and wealth inequality, economic discrimination, and cultural norms Ethics: ● Virtue Ethics human beings have a responsibility to others and must shape their attitudes to this effect ● Religious ethics are often based under the Golden Rule ● Deontological Ethics also known as duty ethics, individuals should act to their own principles ● Utilitarianism finding the best strategy that is most effective in improving the common good ● Libertarianism the minimal form of government is needed ● Human Rights Ethics every human being has basic rights that may not be infringed upon (this is the most dominant approach today) ● Merit Goods those goods and services that all should have access to UN and Ethics: ● the Universal Declaration of Human Rights (UDHR) is pretty much the moral charter ● highlighted rights here are; ○ right to social security ○ a guaranteed base income ○ right to work ○ right to rest and leisure ○ limits on work, no obligatory work ○ right to a universal standard of living ○ right to education ○ an order that these rights may be realized ○ right to be governed ● The MDGs are specific targets of the assurance of these rights Social Inequalities: ● oftentimes it’s the country’s history (USA) that leads to strong inequalities ● emphasis on the extreme poverty rate of indigenous populations ● three causes of economic inequality across the world; ○ rising separation in wages between skill levels of workers ○ shifting value of capital over labor ○ political elites are further reinforced through campaign contributions ● another force, resulting from globalization, is outsourcing Gender Inequality: ● laws and culture has often enforced the diminutive role of women in the work force ● MDG 3 has called to improve gender inequality directly ● Gender Inequality Index (GII) weighted index of gender inequality counting on three indicators; ○ reproductive health and the maternal mortality rate ○ female empowerment share of seats in parliament that women hold and the amount of women in higher education ○ labor force participation of women ● legal reform is often the first step in reducing gender inequality, but cultural barriers are still existent Easterly, W (2008) “How the Millennium Development Goals are unfair to Africa” The MDGs: ● goals of economic and social progress, they also measure development performance ● they in particular emphasize the failure of SubSaharan Africa Easterly’s Argument: The MDGS poorly gauge progress against poverty and this makes Africa look worse off than it actually is. MDG Critiques: ● evaluations will always make some countries look worse than others, how much is based on; ○ absolutes vs percentages ○ change targets vs level targets ○ positive vs negative language ● Goal 1; reducing poverty rate by half ○ although Africa grew by 5.2% in GDP per capita, an incredible feat, this was labelled as a failure by the MDGs ○ this target is unfair to countries with initially high poverty rates because it makes the proportion to overcome much higher ● Goal 2; attain universal enrollment ○ example of absolute target vs relative target, had it been a proportional increase, Africa would have succeeded ● Goal 3; gender equality ○ measured by the ratio of girls and boys in school, which is redundant because goal 2 would ensure that already if it were to be achieved ○ Africa actually did better in both education and improving female schooling rates but since it started further back, it cannot have succeeded until it reaches an absolute 100% enrollment ● Goal 4; reducing child mortality by twothirds ○ Africa achieved an absolute reduction in child mortality, but did not attain the proportional goal which marked it as a failure ● Goal 5; maternal mortality and Goal 6; disease prevention ○ these MDGs were failed by Africa simply because there was no data that said otherwise ● Goal 7: reduce proportion without clean water by half ○ Africa is doing worse in terms of portion without clean water, but is converging with other developing countries on percentage with clean water *Turning Africa’s successes into failures has reinforced Africa’s stereotype of always failing and the MDGs is responsible for this Sachs Textbook Ch. 5 The MDGs in Ending Poverty: ● highlighting the situation of poverty has motivated problem solving around the world ● case of Antiretroviral Medicines (ARVs); has saved countless lives by reducing transition from HIV to AIDS by the MDGs ● the MDGs have also spurred programs to fight malaria especially in Africa Solutions: ● the two regions in the most desperate need is SubSaharan Africa and South Asia ● Africa has been growing tremendously but there are four areas of potential rapid improvement; ○ farm productivity ○ urban productivity ○ national infrastructure ○ human capital investment ● Africa will also achieve better development through a smaller population growth rate ● what sets apart South Asia is the incredible population density ● through the IT revolution, India has managed to avoid massive famine and has become fully a part of the world economy “Human Development Report” (1990) Ch. 1 Overview Observations: 1) the gap between the global north and the global south has narrowed although income gaps have widened 2) the connection between economic growth and human progress is not immediate 3) subsidies are necessary for poor income groups 4) achieving human development and economic growth is economically feasible 5) human adjustment is a matter of choice, not obligation 6) a better environment is favorable to human development 7) NGO involvement, or other participatory argences, are necessary for any human development strategy 8) reduction in population growth rates is crucial for the future 9) population growth is highly concentrated in urban areas Human Development: ● using economic measures to gauge development can often mask the true development of people because they do not show real income of people and other facets of human development are often not measured ● economic growth does not always reduce the deprivation of a population or the spread of disease ● Human Development process of expanding people’s choices ● access to income expands choices but it’s the choices that lead to better wellbeing ○ wellbeing is decided upon how income is used, it is a mean, not an end ● Basic Needs Approach there is a certain bundle of goods and services that deprived people need and development is satisfying that bundle Measuring Human Development: ● measuring human development does not depend how many factors of wellbeing, but the emphasis of three specific factors: ○ longevity, knowledge, and decent living standards ● longevity is measured by life expectancy at birth ● knowledge is measured by literacy figures ● decent living standards is measured by income level The Human Development Index: ● this gauges how developed a country is through; ○ a life expectancy target of 78 years ○ a literacy target of 100% ○ an income target of the logarithm of the average poverty line income of richer countries expressed in PPP adjusted dollars ● the HDI misses several choices: ○ economic, social, and political freedom ○ security against violence and discrimination ○ and several more Stiglitz, J.E., Sen. A., & Fitoussi, J.P. (2009), “Report by the Commission on the Measurement of Economic Performance and Social Progress Recommendations Concerning GDP and Economic Growth: 1) focus on income and consumption instead of production a) production may increase while income decreases b) other factors can blur economic wellbeing, like capital flows out of the country as well as price level 2) income and consumption may be lumped with wealth a) wealth, the amount of assets, is apart of the whole economic wellbeing of a country b) measuring wealth is also crucial to measuring sustainability 3) use the household perspective a) the household perspective goes from macro to micro, GDP to accounts of payments between sectors b) it takes the value of services provided by the government, such as healthcare 4) there should be more of an emphasis on income distribution a) rises in income are not shared equally among the entire population 5) measuring income should be expanded to nonmarket transactions a) household production is not counted in national accounts b) a systematic gauge of this economic activity should be taken Recommendations Concerning Quality of Life Measures: 1) measuring subjective wellbeing is crucial to measuring quality of life a) questions that evaluate people’s lives should be included in statistics b) this also helps find determinants of issues that are outside income and material problems 2) quality of life also depends on objective conditions a) objective conditions are health, education, leisure, political voice, social life, environmental conditions, and insecurity b) these fields are already considered determinants so the goal is to improve where needed 3) quality of life measures should also indicate inequalities 4) analysis of links between categories of quality of life is important a) address interactions between different categories, it may not be advantageous to address one single category but to address the plethora under which people may be suffering 5) all information must have potential to be aggregated a) one scalar index instead of analyzing several quality of life categories may simplify aid programs’ goals and provide better success Banerjee, A. & Duflo E. (2011) “Poor Economics”, Foreword and Ch. 1 The World’s Poorest: ● average poverty line is about 99 cents per person per day, 13% of the world’s population live under this line ● escaping poverty is hard, but the sense of possibility goes a long way ● large expectations, lack of faith, minor problems can all be catastrophic ● students were more likely to donate to help one individual but seemed discouraged when faced with the scale of the global problem Sachs: ● claims countries are poor because of climate, maternal health, diseaseridden, landlocked ● foreign aid is key because these countries are in a “poverty trap”, the incapacity to pay for the country’s own aid to escape poverty ● Easterly argues the opposite; aid does more harm than good, it prevents people from finding their own solutions, undermining local agencies, and creates corruption ● so emerged an aid debate, if aid should be given, where, from who, how Three Questions of the Debate: 1) If people must pay for their solutions, will they prefer to go without them? 2) If aid is received for free, will people use it or will it be wasted? 3) If the aid is received for free, will people be willing the pay for the next solution? Experimentation: ● conducting an experiment will help answer these questions, it will also help see how people in poverty make decisions ● it will also help determine factors in which solutions may arise and may need aid The Poverty Trap: ● Sachs argues that one intervention can make the big difference to set them on a path outside poverty; this is the goal of the Millennium Villages Project ● there is a poverty trap when the range for growing income at a fast rate is limited with people with little to nothing to invest Banerjee and Duflo’s Plan: ● a series of experiments that varies in location and parameters to verify the intervention solution ● this formulates a theory, which helps design future interventions and future experiments ● in time, we see where the poor need help and where they do not Lamont, M. & Small, M.L. (2007), “Cultural Diversity and Poverty Eradication, UNESCO: World Report on Cultural Diversity” Lamont and Small’s Claim: ● “one common belief about culture and poverty is that individuals are poor because of their cultural beliefs and attitudes, we do not subscribe to these views.” ● they argue that working toward development, reducing poverty should focus more on culture than in the past because poverty and culture impact each other; there is no causeeffect relationship ● Lamont and Small base their arguments on Sen’s idea that wellbeing is not just material poverty but more importantly, the capabilities that people possess to acquire resources “Culture of Poverty”: ● Oscar Lewis argued that the culture/behavior of marginalisation in capitalist societies facilitated the poverty trap, and kept those groups poor ● different studies have examined this argument and have found that many other factors take place and culture is often absent or at a low level of significance ● Ogbu’s study did however find certain behaviors among black students that did reproduce poverty ● a number of concerns come with this finding, culture changes, ideas are heterogeneous etc. Cultural Diversity as a Tool: ● arguments that cultural traditions are a huge obstacle to development are supported by very little evidence ● cultural diversity may provide a positive collective identity that helps development and selfefficacy; as well as bilingualism accelerates learning and increases test scores ● removing stereotypes helps alleviate poverty; ○ policies like affirmative action promote the removal of stigma and allow choices in identity Conditions for Success: ● ensuring equal access to all resources (intergroup contact in institutions) help drive down conflict and discrimination ● Recommendations: ○ encourage cultural coexistence which reduces conflict and increases success of minorities ○ diversify employee groups in state bureaucracies ○ adapt NGO and government strategies to local contexts ○ policy decisions should be accompanied by qualitative and quantitative data collection Esteva, G. (2010), “Development” “Underdevelopment”: ● when Truman identified the “underdeveloped” of the world, they had lost all their diversity, and became the subject of belittling failures. ● underdevelopment is a threat of subjugation The Biology Behind Development: ● development, conventionally defined, is the biological process of evolution into that object or organism's fullfledged potential ● later evolution and development became even more synonymous; the transformation to the “more perfect form” ● this metaphor then became the Western label for the “genealogy of history” ● for twothirds of the world, development is not a positive connotation; it is a reminder of what they are not ● programs of aid under the Truman Point IV Program deepened this perception of development and the disadvantages of it ● this definition is unacceptable and undemonstrable, it represents a homogeneity and linear evolution that does not exist ● to make things worse, development was demoted to economic growth, until 1970, when Robert S. McNamara (president of the World Bank), noticed that high rate of growth did not necessarily bring about satisfaction in development ● then emerged the “Basic Needs Approach” that gained favorability in the 1970s ● Endogenous Development also came about, an approach that rejected the need to mirror industrial societies as a path to development ● Redevelopment, now being called Sustainable Development, appeared in the 90s, as set out by the Brundtland Commission ● The first Human Development Report was published along with the Human Development Index which developed difficulties beyond overcoming the obsession with GNP per capita Economization and Colonization: ● Truman attempted to detach development and imperialism, what resulted was economic subordination ● the “law of scarcity” has been so well embedded in the study of economics that rejections of basic economic assumptions made by the marginalised have been ignored The New Commons: ● “struggling to limit the economic sphere is not a mechanical reaction, rather the similar purpose is to creatively reconstruct basic forms of social interaction in order to liberate themselves from their economic chains; they have thus created new commons which allow them to live on their own terms.” ● for the marginalised, breaking the economic conditions that we call norms is a matter of survival ● education; reembedding learning in culture to enrich knowledge of remedies from outside their traditions ● health; recognizing health as the autonomous ability to cope with the environment, using traditional healing wisdom ● nutrition; enrich the relationship between them and the environment, coping with shortages by using local tools Call to Arms: ● call to engage in a new commons after the failure of universal development strategies ● establishment of political controls to protect the new commons ● requests public debate on the posteconomic events cropping up everywhere Nussbaum, M. (2011) “Creating Capabilities” Ch.s 1 & 2 The Capabilities Approach: ● The Capabilities Approach “to supply a new account of the right way to compare and rank development achievements.” ● Sen focuses on particular capabilities, and prioritizes some over others, however he also addresses them as zones of freedom and the task of development is to maximize freedom ● The Nussbaum approach is different in that it uses the much of the same ten capabilities and defines them as political entitlements and constitutional law ● this approach does not use “freedoms” because certain freedoms may limit others ● Nussbaum also includes the deliberation of democracy, but at different levels and in different contexts ● “Ideal Theory” formulated by Rawls and criticized by Sen, this approach sets ideal benchmarks with which to progress to ● development is improved if questions are asked about ethical norms and standards of justice ● The Capabilities Approach argues against subjective preferences, seeing them as unreliable for political preferences ● Welfarist Views asks what preferences people have if they had all the information ● Social Contract Views everyone mutually surrendering natural assets under political and legal constraints ● The Capabilities Approach acknowledges concerns in nonhuman animals section of social contract views ● the approach strongly advocates for political liberalism, to openly accept all religious and secular views of life “The approach reminds policymakers to provide choices in the capabilities listed, not outline a specific way of functioning.” Lecture Notes: Food Security Food Security (FAO definition) the physical, social, and economic access to safe, healthy food Elements of the Definition: ● Four Dimensions ; ○ Food availability ○ Access (economic and physical) ○ Food utilization ○ Stability (shortterm risks, long term progress) ● Food Utilization anthropometric indicators (healthy) and input indicators (chemicals) Food Security Terms: ● Chronically Undernourished at least a year of inability to acquire enough food ● Chronic Hunger synonymous, regularly not getting enough food ● Malnutrition condition of insufficient food intake and unhealthy foods ● Food Insecurity lack of secure access to sufficient, safe, and nutritious food ● Causes of Food Insecurity: ○ Unavailability ○ Insufficient purchasing power ○ Unfair distribution ○ Inadequate use of the food ● Sen famine is manmade crisis, it is the government action or inaction that may affect famine severity, maybe also commodities market ● “Famine is a complex articulation of interests, starvation is the consequence” Why Do We Have Hunger: ● There is enough food in the world to meet all 7 billion people’s dietary needs; problem is distribution ● Traditional causes of hunger: ○ Natural hazards (drought being most common)’ ○ War (displacement) ○ Poverty trap (farmers can’t afford seeds) ○ Agricultural infrastructure ○ Overexploitation of land (animal agriculture) ● MDG Goal 1 (percentage of undernourished needs to be halved) has been met however the absolute number of undernourished people has increased ● Around 1 in 8 people have suffered from chronic hunger; hence inequalities across countries ● The Food and Agriculture Organization (FAO) created the Rome Declaration (2015) Variables Affecting Hunger Reduction: ● Economic conditions (dependence on commodities, resource availability) ● Infrastructure and technologies ● Political and institutional instability ● Inflows of income transfers to homeland The Role of International Institutions: ● Structural Adjustment Strategies born out of thWashington Consensus , it is the encouragement of specialty markets in developing markets (local art, highly specific products), limits ability to produce other things ● The effect of these strategies and hence the Washington Consensus ; ○ Heavily indebted poor countries ○ Squeezing domestic markets ○ Limiting ability to acquire basic products ○ Especially, high food prices ● Correlation between Structural Adjustment Policies (1992) and increased percentage of undernourished people (other factors may include climate change) ● Cause of high food prices:
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