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The Politics of The Politics of Development Development The “Poverty Trap” The “Poverty Trap”
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Page 1: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

The Politics of The Politics of DevelopmentDevelopment

The “Poverty Trap”The “Poverty Trap”

Page 2: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Unit GoalsUnit Goals This final unit looks at the problem of development and This final unit looks at the problem of development and

inequality in the world today. In some ways, there are inequality in the world today. In some ways, there are some encouraging signs; but many people find the overall some encouraging signs; but many people find the overall picture a bit bleak and depressing. In this unit, I expect picture a bit bleak and depressing. In this unit, I expect that you will;that you will;• Learn the principle ways that political scientists and other Learn the principle ways that political scientists and other

classify countries according to their levels of development;classify countries according to their levels of development;• Be able to identify and discuss the two main theories that deal Be able to identify and discuss the two main theories that deal

with the issue of development (or lack of it);with the issue of development (or lack of it);• Critique the optimistic assumptions of developmentalists such Critique the optimistic assumptions of developmentalists such

as Walt Rostow;as Walt Rostow;• Gain a familiarity with the latest approaches to development Gain a familiarity with the latest approaches to development

aid.aid. Before we begin, as a point for discussion, ask yourself; do Before we begin, as a point for discussion, ask yourself; do

you think that it is inevitable that some countries will you think that it is inevitable that some countries will continue to be exceedingly poor? Why do you think the continue to be exceedingly poor? Why do you think the way you do? What do your fellow students think?way you do? What do your fellow students think?

Page 3: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

The classification of countriesThe classification of countries Political scientists and others, as we have discussed right at the beginning of the Political scientists and others, as we have discussed right at the beginning of the

course, frequently make use of classification schemes to look for the influence of course, frequently make use of classification schemes to look for the influence of systematic factors across countries. When looking at the question of development, it systematic factors across countries. When looking at the question of development, it makes sense to have such a scheme by which to classify countries according to their makes sense to have such a scheme by which to classify countries according to their level of economic development.level of economic development.

During the Cold War, it was common to use the terms “First”, “Second”, and “Third During the Cold War, it was common to use the terms “First”, “Second”, and “Third World” (meaning, essentially (a) capitalist democracies, (b) eastern bloc and World” (meaning, essentially (a) capitalist democracies, (b) eastern bloc and communist countries, and (c) all others.communist countries, and (c) all others.

However, “Third World” became seen as somewhat derogatory – and also is not However, “Third World” became seen as somewhat derogatory – and also is not sufficiently descriptive (you might have noticed that it is as much a political term as sufficiently descriptive (you might have noticed that it is as much a political term as one that relates to economic development; at best, it is about economic one that relates to economic development; at best, it is about economic managementmanagement, or political economy)., or political economy).

Over 150 countries in the world (out of almost 200) do not qualify for the term Over 150 countries in the world (out of almost 200) do not qualify for the term “advanced industrialized economy”, which is the name given to the most advanced “advanced industrialized economy”, which is the name given to the most advanced economies in the world.economies in the world.

More commonly used terms now are; advanced industrial societies (AIS), transitional More commonly used terms now are; advanced industrial societies (AIS), transitional societies, newly industrialized countries (NIC), developing countries, less developed societies, newly industrialized countries (NIC), developing countries, less developed countries (LDCs). The latter represent the poorest economies in the world; UNCTAD countries (LDCs). The latter represent the poorest economies in the world; UNCTAD now identifies 49 LDC’s, or about 28% of the worlds economies.now identifies 49 LDC’s, or about 28% of the worlds economies.

The question which preoccupies most political scientists and development specialists The question which preoccupies most political scientists and development specialists is; is there a “poverty trap” and, if so, how do LDC’s escape it?is; is there a “poverty trap” and, if so, how do LDC’s escape it?

Page 4: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

The “traditional” (1950’s) view of The “traditional” (1950’s) view of developmentdevelopment

In the 1950’s, which was an era of great promise (after all, many In the 1950’s, which was an era of great promise (after all, many new countries were becoming independent in the break-up of new countries were becoming independent in the break-up of colonial empires), there was a simple assumption held by most colonial empires), there was a simple assumption held by most development specialists: there is a more or less uniform path to development specialists: there is a more or less uniform path to development that flows along a (mostly) irreversible arrow of development that flows along a (mostly) irreversible arrow of time. In other words, there is basically one successful model of time. In other words, there is basically one successful model of development, and it cannot be undone.development, and it cannot be undone.

Today, we can also understand that for most of these specialists, Today, we can also understand that for most of these specialists, implicitly, the path to development is the same one as was implicitly, the path to development is the same one as was followed by western nations during the birth of modern capitalism.followed by western nations during the birth of modern capitalism.

For a good example of this kind of thinking, one need look no For a good example of this kind of thinking, one need look no further than W.W. Rostow, further than W.W. Rostow, The Stages of Economic Growth: A Non-The Stages of Economic Growth: A Non-Communist ManifestoCommunist Manifesto (1960). Rostow (and others) thinking (1960). Rostow (and others) thinking influenced foreign aid policies of many developed countries; the influenced foreign aid policies of many developed countries; the approach became known as approach became known as developmentalismdevelopmentalism

Rostow argued that the experience of all countries will take them Rostow argued that the experience of all countries will take them through five stages of development: traditional society, “pre-through five stages of development: traditional society, “pre-conditions for take-off”, “take-off”, “the drive for maturity”, “high conditions for take-off”, “take-off”, “the drive for maturity”, “high mass consumption”.mass consumption”.

Page 5: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Rostow - Stages of GrowthRostow - Stages of Growth

1.1. Traditional SocietyTraditional Society Characterised byCharacterised by

• subsistence economy subsistence economy – output not traded or – output not traded or recorded recorded

• existence of barter existence of barter • high levels of high levels of

agriculture and labour agriculture and labour intensive agricultureintensive agriculture

Village in Losotho. 86% of the resident workforce in Lesotho is engaged in subsistence agriculture.

Page 6: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Rostow - Stages of GrowthRostow - Stages of Growth

2. Pre-conditions:2. Pre-conditions:• Development of Development of

mining industriesmining industries• Increase in capital Increase in capital

use in agricultureuse in agriculture• Necessity of Necessity of

external fundingexternal funding• Some growth in Some growth in

savings and savings and investmentinvestment

The use of some capital equipment can help increase productivity and generate small surpluses which can be traded.

Page 7: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Rostow - Stages of GrowthRostow - Stages of Growth

3. Take off:3. Take off:• Increasing Increasing

industrialisationindustrialisation• Further growth in Further growth in

savings and savings and investmentinvestment

• Some regional Some regional growthgrowth

• Number employed Number employed in agriculture in agriculture declinesdeclinesAt this stage, industrial growth may be linked to

primary industries. The level of technology required will be low.

Page 8: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Rostow - Stages of GrowthRostow - Stages of Growth

4. Drive to Maturity:4. Drive to Maturity:• Growth becomes self-Growth becomes self-

sustaining – wealth sustaining – wealth generation enables generation enables further investment in further investment in value adding industry value adding industry and developmentand development

• Industry more Industry more diversifieddiversified

• Increase in levels of Increase in levels of technology utilisedtechnology utilised

As the economy matures, technology plays an increasing role in developing high value added products.

Page 9: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Rostow - Stages of GrowthRostow - Stages of Growth

5. 5. High mass High mass consumptionconsumption• High output levelsHigh output levels• Mass consumption Mass consumption

of consumer of consumer durablesdurables

• High proportion of High proportion of employment in employment in service sectorservice sector

Service industry dominates the economy – banking, insurance, finance, marketing, entertainment, leisure and so on.

Page 10: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

Criticisms of Rostow:Criticisms of Rostow:

First and most obvious, the model is just too simplisticFirst and most obvious, the model is just too simplistic The model assumes that there is already a financial The model assumes that there is already a financial

infrastructure to channel any savings that are made into infrastructure to channel any savings that are made into investment, necessary for the growth of capitalisminvestment, necessary for the growth of capitalism

Will such investment yield growth? Not necessarily (and much Will such investment yield growth? Not necessarily (and much empirical evidence supports this).empirical evidence supports this).

There is a need for other infrastructure – human resources There is a need for other infrastructure – human resources (education and social capital), roads, rail, communications (education and social capital), roads, rail, communications networks. Rostow nowhere mentions where this will come networks. Rostow nowhere mentions where this will come from.from.

Rostow also assumes that there will be an efficiency of use of Rostow also assumes that there will be an efficiency of use of investment, i.e. that those with capital will sink it back into the investment, i.e. that those with capital will sink it back into the economy. However, much experience has taught us that this economy. However, much experience has taught us that this is not always the case, and that wealthy people in less is not always the case, and that wealthy people in less developed economies are quite prone to use their money to developed economies are quite prone to use their money to pay for pleasure palaces rather than investing in the pay for pleasure palaces rather than investing in the economy!economy!

Rostow argued economies would learn from one another and Rostow argued economies would learn from one another and reduce the time taken to develop – has this happened? Not reduce the time taken to develop – has this happened? Not really, once we consider the evidence.really, once we consider the evidence.

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The Experience of the NIC’sThe Experience of the NIC’s To begin with, it seemed that the picture for To begin with, it seemed that the picture for

economic development was actually quite bright.economic development was actually quite bright. Since the 1950’s, a core group of countries Since the 1950’s, a core group of countries

seemed to have followed the model laid out by seemed to have followed the model laid out by Rostow. These countries are the ones that we Rostow. These countries are the ones that we call the newly industrialized countries, and they call the newly industrialized countries, and they seemed to do quite well in the global economy.seemed to do quite well in the global economy.

For example, there are the so-called ‘Asian For example, there are the so-called ‘Asian Tigers’ of South Korea, Singapore, Indonesia, Tigers’ of South Korea, Singapore, Indonesia, Malaysia, Thailand, China.Malaysia, Thailand, China.

Then there are the large Latin American Then there are the large Latin American economies of Brazil, Argentina, Mexico.economies of Brazil, Argentina, Mexico.

Today, we might be tempted to add India to the Today, we might be tempted to add India to the list.list.

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The “Poverty Trap”The “Poverty Trap” However, just as quickly as enthusiasm for the developmental model was However, just as quickly as enthusiasm for the developmental model was

growing, so too were there disquieting signs that development was not growing, so too were there disquieting signs that development was not going to come easily and automatically to all countries.going to come easily and automatically to all countries.

In 1955, Simon Kuznets warned that In 1955, Simon Kuznets warned that increasing levels of development increasing levels of development might be accompanied by sharp increases in inequalitymight be accompanied by sharp increases in inequality, meaning a , meaning a declining standard of living for the very poorest (the mass of developing declining standard of living for the very poorest (the mass of developing societies). In other words, development might not actually be beneficial for societies). In other words, development might not actually be beneficial for the majority in a poor country.the majority in a poor country.

Early experiences did not seem to bear out his predictions, as some Early experiences did not seem to bear out his predictions, as some countries began to successfully develop middle classes. However, by the countries began to successfully develop middle classes. However, by the early 1970’s, it was clear that he had been extremely prescient, and that early 1970’s, it was clear that he had been extremely prescient, and that there was an increase in levels of global poverty.there was an increase in levels of global poverty.

And, furthermore, just as a few countries seemed to have set out on the And, furthermore, just as a few countries seemed to have set out on the path to development, large numbers have not. By the 1980’s, we began to path to development, large numbers have not. By the 1980’s, we began to speak of the “global poverty trap”, signifying the incredible difficulties that speak of the “global poverty trap”, signifying the incredible difficulties that some countries have had in achieving even modest levels of development some countries have had in achieving even modest levels of development and growth.and growth.

Since 1967, the gap between the world’s rich and poor countries has Since 1967, the gap between the world’s rich and poor countries has widened, not narrowedwidened, not narrowed

In recent years, we have witnessed economic collapse in many of the In recent years, we have witnessed economic collapse in many of the NIC’s, due in part to external conditions. This also has put pressure on the NIC’s, due in part to external conditions. This also has put pressure on the assumption that development is irreversible.assumption that development is irreversible.

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The Political DimensionThe Political Dimension In 1968, Samuel Huntington published his highly damaging In 1968, Samuel Huntington published his highly damaging

critique of development policies in critique of development policies in Political Order in Changing Political Order in Changing SocietiesSocieties

Huntington argued that: (a) the problem was that development Huntington argued that: (a) the problem was that development can be highly disruptive to changing societies by undermining can be highly disruptive to changing societies by undermining traditional institutions of power and authority, and (b) the real traditional institutions of power and authority, and (b) the real problems that developmentalism did not address are political problems that developmentalism did not address are political Huntington concluded that democracy is potentially ill-adapted Huntington concluded that democracy is potentially ill-adapted to maintain order in such conditions, and that economic growth to maintain order in such conditions, and that economic growth might be more sustainable in authoritarian societies. Indeed, he might be more sustainable in authoritarian societies. Indeed, he thought it almost inevitable that economic development might thought it almost inevitable that economic development might lead to authoritarianism. This bleak assessment challenged the lead to authoritarianism. This bleak assessment challenged the rosy view that economic development would inevitably go hand rosy view that economic development would inevitably go hand in hand with democracy.in hand with democracy.

The experience of many Latin American countries (Brazil, The experience of many Latin American countries (Brazil, Argentina, Chile) seemed to bear this outArgentina, Chile) seemed to bear this out

The “asian tigers” were often cited as a new model of The “asian tigers” were often cited as a new model of “authoritarian capitalism”, i.e. the development of capitalist “authoritarian capitalism”, i.e. the development of capitalist markets and industrial capacity without real democracy.markets and industrial capacity without real democracy.

But what was the cost? If this is the case, is development But what was the cost? If this is the case, is development actually worth it?actually worth it?

Page 14: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

The Critique of DevelopmentalismThe Critique of Developmentalism

By the mid-1960’s many voices were being raised against the naïve assumptions By the mid-1960’s many voices were being raised against the naïve assumptions and false predictions of the developmentalists. As we think about this, we must and false predictions of the developmentalists. As we think about this, we must remember that the developmentalists were not just academics in ivory towers, but remember that the developmentalists were not just academics in ivory towers, but they were highly influential in the making of foreign policy. And, to a public they were highly influential in the making of foreign policy. And, to a public desperate for good news during the Cold War, it seemed that this picture of benign desperate for good news during the Cold War, it seemed that this picture of benign economic development, with the West leading the way, was worthy of our greatest economic development, with the West leading the way, was worthy of our greatest praise.praise.

However, influential international economists such as Raul Prebbisch and However, influential international economists such as Raul Prebbisch and international organizations such as UNCTAD became highly critical of the international organizations such as UNCTAD became highly critical of the assumptions and practice of developmentalism in the 1960’s.assumptions and practice of developmentalism in the 1960’s.

Prebbisch and others elaborated Prebbisch and others elaborated dependency theorydependency theory (both neo-marxist and non- (both neo-marxist and non-marxist versions) as an alternative to developmentalism. Rather than predicting marxist versions) as an alternative to developmentalism. Rather than predicting inevitable development, dependency theory explains inevitable development, dependency theory explains persisting lack of persisting lack of developmentdevelopment..

Dependency theory sees developing countries as being inextricably linked to the Dependency theory sees developing countries as being inextricably linked to the interests of the core developed countries. Their raw materials and food products, interests of the core developed countries. Their raw materials and food products, as well as their markets, are vital to economic well-being of rich countries.as well as their markets, are vital to economic well-being of rich countries.

Any attempt in the developing countries to try and break out of this dependent Any attempt in the developing countries to try and break out of this dependent relationship is held in check by local elites (relationship is held in check by local elites (compradorescompradores), who are essentially ), who are essentially propped up by foreign (rich) powers; the benefits of resource extraction flow only propped up by foreign (rich) powers; the benefits of resource extraction flow only to these local elites and to multi-national corporations (MNC’s). Whenever the to these local elites and to multi-national corporations (MNC’s). Whenever the compradores compradores are threatened, rich countries will intervene militarily.are threatened, rich countries will intervene militarily.

Some dependency theorists see whole new threat in the form of globalization; Some dependency theorists see whole new threat in the form of globalization; here, the biggest villains are the MNCs.here, the biggest villains are the MNCs.

During the 1980s and 1990s, many found this alternative view a better explanation During the 1980s and 1990s, many found this alternative view a better explanation of global inequality than was to be found in developmental theory.of global inequality than was to be found in developmental theory.

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The “case” of AfricaThe “case” of Africa Although it is often very wrenching to do so, looking at Africa Although it is often very wrenching to do so, looking at Africa

provides an insight into the struggles of developing nations in the provides an insight into the struggles of developing nations in the world today. Here are some statistics and facts;world today. Here are some statistics and facts;• Poverty in Africa is rising rapidly; in 1968, 82% lived in “poverty” Poverty in Africa is rising rapidly; in 1968, 82% lived in “poverty”

(defined as under $2 a day); in 1998, that had risen to 87.5%. Clearly (defined as under $2 a day); in 1998, that had risen to 87.5%. Clearly something is not working.something is not working.

• Those in “extreme poverty” (under 1$ a day) had risen from 55.8 to Those in “extreme poverty” (under 1$ a day) had risen from 55.8 to 64.9% (Source: UNCTAD, 64.9% (Source: UNCTAD, Least Developed Countries 2002Least Developed Countries 2002). In other ). In other words, extreme poverty afficts almost two out of every three people on words, extreme poverty afficts almost two out of every three people on the continent.the continent.

• Most African countries fall into the category of “commodity dependent Most African countries fall into the category of “commodity dependent countries”, which means that they are dependent for export revenue countries”, which means that they are dependent for export revenue upon one or a few basic commodities, such as raw materials (ore, upon one or a few basic commodities, such as raw materials (ore, lumber, etc.) or food (coffee, nuts, fruit). A commodity dependent lumber, etc.) or food (coffee, nuts, fruit). A commodity dependent economy is considered to be especially vulnerable because of the economy is considered to be especially vulnerable because of the damage done by price fluctuations on the world market of those goods.damage done by price fluctuations on the world market of those goods.

• For example, copper prices have fallen 27%, cotton 39%, and coffee For example, copper prices have fallen 27%, cotton 39%, and coffee 66% in five years. For us, we barely notice, but for the people who 66% in five years. For us, we barely notice, but for the people who depend up these exports, the effect is devastating.depend up these exports, the effect is devastating.

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Some social and health statisticsSome social and health statistics

Life expectancy in LDC’s = 50Life expectancy in LDC’s = 50 Daily calorie intake = 2018Daily calorie intake = 2018 Access to clean water = 54% of populationAccess to clean water = 54% of population Access to sanitation = 34% of populationAccess to sanitation = 34% of population Literacy rate – 51%Literacy rate – 51% Percentage of export earnings of commodities (see Percentage of export earnings of commodities (see

previous slide for explanation): 100% (1.51% for developing previous slide for explanation): 100% (1.51% for developing countries, 0.44% for AIS)countries, 0.44% for AIS)

Page 17: The Politics of Development The “Poverty Trap”. Unit Goals This final unit looks at the problem of development and inequality in the world today. In some.

AIDSAIDS Sub-Saharan Africa = 28.1 million, SE Asia = 6.1 million, Sub-Saharan Africa = 28.1 million, SE Asia = 6.1 million,

Latin America = 1.4 million, East Asia and Pacific = 1 Latin America = 1.4 million, East Asia and Pacific = 1 million, North America = 0.9 million, West Europe = 0.56 million, North America = 0.9 million, West Europe = 0.56 million, North Africa and Middle East = 0.44 millionmillion, North Africa and Middle East = 0.44 million

In 2002 in Europe and America, 0.5 million received In 2002 in Europe and America, 0.5 million received treatment for AIDS and 25,000 died of the diseasetreatment for AIDS and 25,000 died of the disease

In Africa, 30,000 received treatment, 2.2 million diedIn Africa, 30,000 received treatment, 2.2 million died The UNAids estimates that in the last 20 years, 20 million The UNAids estimates that in the last 20 years, 20 million

have died from the disease;have died from the disease; In the next 18 years, it projects that 63 million will dieIn the next 18 years, it projects that 63 million will die In some countries, like Botswana, it is estimated that as In some countries, like Botswana, it is estimated that as

much as 80% of the adult population is infected with the much as 80% of the adult population is infected with the HIV virus. Recently, the President of Botswana, launching a HIV virus. Recently, the President of Botswana, launching a massive public health campaign, said that there was a real massive public health campaign, said that there was a real possibility that Botswana could cease to exist as a country.possibility that Botswana could cease to exist as a country.

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The CCF (Country Cooperation Frameworks) and PSRP The CCF (Country Cooperation Frameworks) and PSRP

(Poverty Reduction Strategy Papers) approach(Poverty Reduction Strategy Papers) approach In recent years, the international aid community has abandoned a lot of In recent years, the international aid community has abandoned a lot of

the old precepts drawn from the developmental paradigm, and have set the old precepts drawn from the developmental paradigm, and have set about creating new paradigms for aid to the developing world. These are about creating new paradigms for aid to the developing world. These are called the CCF and PRSP approaches.called the CCF and PRSP approaches.

This new approach envisages a set of “partnerships” to be elaborated This new approach envisages a set of “partnerships” to be elaborated between each LDC and donor countries/development agenciesbetween each LDC and donor countries/development agencies

The PSRP’s will detail how a set of targets can be achieved, both through The PSRP’s will detail how a set of targets can be achieved, both through internal and externalinternal and external means. For the first time, these targets are to be means. For the first time, these targets are to be negotiated on a case by case basis, and they involve detailed explanations negotiated on a case by case basis, and they involve detailed explanations of the steps to be taken.of the steps to be taken.

The new approach involves a long-term monitoring process by UNDP (the The new approach involves a long-term monitoring process by UNDP (the United Nations Development Program) to gauge success of United Nations Development Program) to gauge success of implementation.implementation.

The new framework for development aid places a lot more of the burden in The new framework for development aid places a lot more of the burden in the hands of multinational organizations like the United Nations, the World the hands of multinational organizations like the United Nations, the World Bank, and the International Monetary Fund (IMF), and tries to free the Bank, and the International Monetary Fund (IMF), and tries to free the development process from overriding political concerns that were evident development process from overriding political concerns that were evident during the Cold War.during the Cold War.

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Internal FactorsInternal Factors The main focus of the new approach is on sustained growth The main focus of the new approach is on sustained growth

(7% targets have been set for most counties)(7% targets have been set for most counties) There is an emphasis on what is called the “investment-There is an emphasis on what is called the “investment-

export nexus” (countries agree to focus on infrastructure export nexus” (countries agree to focus on infrastructure development and legal reforms to encourage more development and legal reforms to encourage more favorable business environments, all with a view towards favorable business environments, all with a view towards increasing exports)increasing exports)

Prevention of marginalization (a commitment to including Prevention of marginalization (a commitment to including all social and economic groups, what we have called all social and economic groups, what we have called elsewhere in this course the principle of “Inclusion”)elsewhere in this course the principle of “Inclusion”)

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External FactorsExternal Factors In response to efforts committed to by the governments of In response to efforts committed to by the governments of

developing economies, the international community has developing economies, the international community has committed to increasing levels of aid (63% increase by 2005; 0.15 committed to increasing levels of aid (63% increase by 2005; 0.15 or 0.20% of GNP target for AIS countries)or 0.20% of GNP target for AIS countries)

Along with this, there is general agreement on the need for Along with this, there is general agreement on the need for increasing aid effectiveness (for example, the co-ordination of aid increasing aid effectiveness (for example, the co-ordination of aid efforts through international agencies)efforts through international agencies)

Advanced economies have agreed to improving market access for Advanced economies have agreed to improving market access for developing nations, meaning that they will be able to export more developing nations, meaning that they will be able to export more to the richer countries.to the richer countries.

All agree on the need for re-enhanced debt relief, freeing All agree on the need for re-enhanced debt relief, freeing developing countries from the burden of debt repayment.developing countries from the burden of debt repayment.

Commodity market stabilization programs, to try and make sure Commodity market stabilization programs, to try and make sure that fluctuations of commodity prices on world markets does not that fluctuations of commodity prices on world markets does not damage fragile developing economies (intervention in world damage fragile developing economies (intervention in world markets; i.e. the novel European Union “Stabex” scheme under markets; i.e. the novel European Union “Stabex” scheme under LomLomé Convention)é Convention)

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Continued Obstacles to Continued Obstacles to DevelopmentDevelopment

Population factors (demographics, disease, etc.)Population factors (demographics, disease, etc.) Food supply (lack of adequate conditions for food delivery)Food supply (lack of adequate conditions for food delivery) The environmentThe environment Political factors – regime type! Often, authoritarian and Political factors – regime type! Often, authoritarian and

totalitarian regimes are not particularly interested in totalitarian regimes are not particularly interested in genuine economic develoment.genuine economic develoment.

Human capital (education, a healthy and skilled workforce, Human capital (education, a healthy and skilled workforce, etc.).etc.).

Cultural factors – what kind of development is desirable? Cultural factors – what kind of development is desirable? All of the above assumes that people around the world All of the above assumes that people around the world actually want to follow something like the western model. actually want to follow something like the western model.

As a point for discussion, you might think about whether As a point for discussion, you might think about whether this last point is true. The west is characterized by high this last point is true. The west is characterized by high levels of wealth and consumerism; but at the same time, it levels of wealth and consumerism; but at the same time, it also has high levels of depression, suicide, crime, etc.also has high levels of depression, suicide, crime, etc.

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