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North-South Relations

The concepts and definitions ofdevelopment

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Concept of DevelopmentWhat is the meaning of growth if it is not translatedinto the lives of people?

UNDP, Human Development Report, 1995

Development is about fundamental change ineconomic structures, about the movement ofresources out of agriculture to services and industry,about migration to cities and internationalmovements of labour, and about transformations in

trade and technology. Social inclusion and change-change in health and life expectancy, in educationand literacy, in population size and structure, and ingender relationsare in the heart of the story.(World Bank, 2003)

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I f we should shr ink the world to one vil lage of 100

people, this is how it would look:

By origin

57 Asian

21 European14 Western Hemisphere

8 African

By gender:

52 women

48 men

70 non-white: 30 white

70 non-Christian: 30

Christian

6 people own 59% of global

wealth, and all 6 are from

USA

80 live in substandard

housing

70 cannot read

50 are malnourished

1 is dieing1 is being borne

Only 1 has college education

Only one has a PC

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How the other half (85%!) lives?World PPP GNP 55,938,191 billion $/

Low income 5,350,327

Middle income 19,729,421

High income 31,004,190

South Asia 4,115,428Sub-Saharan Africa 1,407,3492,5%

Income gap:1960: 20% the richest to 20% of the poorest- 30:1

2000: the ratio is 70:1 and growing

2007: gap between Norway and Niger in GDP per capita:280:1

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How the other half (85%! ) l ive? Some facts.

Infant mortality rate:

Least developed countries 96 per 1000 live births

LDCs: 64; developed countries 8!

Life expectancy: sub-Saharan Africa 45.8, Japan76

More than a billion people still live with less than adollar a day, every day 20,000 people die from

povertyMore than 40 million people suffer from HIV/ AIDs.

In LDCs, 65% of population lives in rural areas, indeveloped countries, 27%.

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And more:

Agricultural production is dominant in LDCs: 68% ofAfrican population versus 3% of North American.

Heavy dependence of LDCs on primary exports, andfalling share in total world trade: 1950: 33%; 2000:25% (in some commodities increase in 2007).

Similarities, but also significant differences among LDCs.

http://www.youtube.com/watch?v=ajHXWt-MFMM&feature=related

http://www.youtube.com/watch?v=ajHXWt-MFMM&feature=relatedhttp://www.youtube.com/watch?v=ajHXWt-MFMM&feature=relatedhttp://www.youtube.com/watch?v=ajHXWt-MFMM&feature=relatedhttp://www.youtube.com/watch?v=ajHXWt-MFMM&feature=relatedhttp://www.youtube.com/watch?v=ajHXWt-MFMM&feature=related

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The nature of development economics (studies)

A systematic study of the problems and processes of theeconomic development;

Draws on relevant principles and concepts of otherbranches of economics, but has its own distinctiveanalytical and methodological identity

Economics of contemporary poor, underdeveloped nationswith varying ideological orientations, diverse culturalbackgrounds and very complex, yet similar economic

problems, demanding new ideas and new approaches.Development economists, Nobel Prize winners: W.ArthurLewis & T. Schultz (1979), Amaryta Sen (1998) andJoseph Stiglitz (2001).

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The nature of development economics- II

Traditional economics: efficient, least-costallocation of scarce productive resources and their

optimal growthPolitical economy: goes beyond traditional to studysocial and institutional processes: relationshipbetween politics and economics> the role of power

Development economicsdeals also with theeconomic, social, political and institutionalmechanisms to bring rapid and large- scaleimprovements in levels of living in LDCs.

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The nature of development economics- III

Concerned with:

Rapid structural and institutional transformation ofentire societies;

Accepts larger government role and coordinateddecision making;

Must be eclectic, attempting to combine relevantconcepts and theories from traditional economicanalysis and broader multidisciplinary approaches

derived from contemporary development experience.Ultimate purpose: help better understand developingeconomies in order to improve lives of majority ofglobal population.

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What do we mean by development?Traditional economic measures:rate of growthof gross national income (GNI) or of income percapita, sometimes corrected with Purchasing PowerParity- PPP.

New Economic View(1970 on): reduction orelimination of poverty, inequality and unemployment> development as a multidimensional process

involving major changes in social structures, popularattitudes, and national institutions, as well asacceleration of economic growth, the reduction ofinequality and the eradication of poverty. (Todaro,2005, p.17)

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What do we mean by development?Sens capability approach(Sen, 1999,Development as Freedom):

Capability to function is what really matters for

status as a poor or non-poor personCapability: the freedom that a person has in termsof the choice of functioning, given his personalfeatures and his command over commodities.

Basis for the Human Development Index, as wellas other indexes developed by UNDP in theirannual reports.

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The three objectives of development

1. To increase the availability and widenthe distribution of basic life-sustaininggoods

2. To raise levels of living

3. To expand range of economic andsocial choices

http://www.youtube.com/watch?v=Al7hNr0_LLU

http://www.youtube.com/watch?v=Al7hNr0_LLUhttp://www.youtube.com/watch?v=Al7hNr0_LLU

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The Millenium Development GoalsMDG,

2000- 2015, adopted by 189 members of UNhttp://www.youtube.com/watch?v=v3p2VLTowAA

Goal 1: Eradicate extreme poverty and hunger

Target 1

Halve, between 1990 and 2015, the proportion of people whose incomeis less than one dollar a day.

Target 2

Halve, between 1990 and 2015, the proportion of people who suffer

from hunger.

Goal 2: Achieve universal primary education

Target 3

Ensure that, by 2015, children everywhere, boys and girls alike, will be

able to complete a full course of primary schooling.

http://www.youtube.com/watch?v=v3p2VLTowAAhttp://www.youtube.com/watch?v=v3p2VLTowAA

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The MilleniumDevelopmentGoals - MDG

Goal 3: Promote gender equality and empower

women

Target 4

Eliminate gender disparity in primary and secondary education,preferably by 2005, and to all levels of education no later than 2015.

Goal 4: Reduce child mortality

Target 5

Reduce by two thirds, between 1990 and 2015, the under-five

mortality rate.

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The Millenium Development Goals - MDG

Goal 5: Improve maternal health

Target 6

Reduce by three quarters, between 1990 and 2015, the maternal

mortality ratio.

Goal 6: Combat HIV/AIDS, malaria and other

diseases

Target 7

Have halted by 2015 and begun to reverse the spread of HIV/AIDS

Target 8

Have halted by 2015 and begun to reverse the incidence of malaria andother major diseases.

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The Millenium Development Goals - MDG

Goal 7: Ensure environmental sustainability

Target 9

Integrate the principles of sustainable development into countrypolicies and programmes and reverse the loss of environmentalresources.

Target 10

Halve, by 2015, the proportion of people without sustainable access to

safe drinking water and basic sanitation

Target 11

By 2020, to have achieved a significant improvement in the lives of at

least 100 million slum-dwellers.

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The Millenium Development Goals - MDG

Goal 8: Develop a global partnership fordevelopment

Target 12

Develop further an open, rule-based, predictable, non-discriminatory trading and financial system (includes acommitment to good governance, development and povertyreductionboth nationally and internationally).

Target 13

Address the special needs of the least developed countries(includes tariff- and quota-free access for least developedcountries exports; enhanced programme of debt relief for heavilyindebted poor countries and cancellation of official bilateral debt;and more generous ODA for countries committed to povertyreduction).

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The Millenium Development Goals - MDG

Target 14Address the special needs of landlocked countries and small islanddeveloping States (through the Programme of Action for theSustainable Development of Small Island Developing States and theoutcome of the twenty-second special session of the GeneralAssembly).

Target 15

Deal comprehensively with the debt problems of developingcountries through national and international measures in order tomake debt sustainable in the long term.

Target 16

In cooperation with developing countries, develop and implement

strategies for decent and productive work for youth.

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The Millenium Development Goals - MDG

Target 17

In cooperation with pharmaceutical companies,

provide access to affordable, essential drugs indeveloping countries.

Target 18

In cooperation with the private sector, make

available the benefits of new technologies, especiallyinformation and communications.

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