8/13/2019 Preberi ve!
1/24
North-South Relations
The concepts and definitions ofdevelopment
8/13/2019 Preberi ve!
2/24
8/13/2019 Preberi ve!
3/24
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)
8/13/2019 Preberi ve!
4/24
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
8/13/2019 Preberi ve!
5/24
8/13/2019 Preberi ve!
6/24
8/13/2019 Preberi ve!
7/24
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
8/13/2019 Preberi ve!
8/24
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%.
8/13/2019 Preberi ve!
9/24
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=related8/13/2019 Preberi ve!
10/24
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).
8/13/2019 Preberi ve!
11/24
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.
8/13/2019 Preberi ve!
12/24
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.
8/13/2019 Preberi ve!
13/24
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)
8/13/2019 Preberi ve!
14/24
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.
8/13/2019 Preberi ve!
15/24
8/13/2019 Preberi ve!
16/24
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_LLU8/13/2019 Preberi ve!
17/24
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=v3p2VLTowAA8/13/2019 Preberi ve!
18/24
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.
8/13/2019 Preberi ve!
19/24
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.
8/13/2019 Preberi ve!
20/24
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.
8/13/2019 Preberi ve!
21/24
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).
8/13/2019 Preberi ve!
22/24
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.
8/13/2019 Preberi ve!
23/24
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.
8/13/2019 Preberi ve!
24/24