Economic Development and Historical Perspectives

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Questions and Answers

What does GDP represent in economic terms?

The total production value adjusted for inflation

The income generated per capita from all sources

The total market value of all goods produced by permanent residents

The market value of all final goods and services produced within a country (correct)

Which of the following accurately describes Per Capita GNP?

The average income of the top earners in a country

The per-head value of goods produced by permanent residents, converted to USD (correct)

The total GNP divided by the number of residents in a country

The GNP of a country adjusted for geographic size

What was a major shift in economic thought during the 1970s?

An emphasis on redistribution from growth and social indicators (correct)

Increased reliance on inflation-adjusted GDP measures

The adoption of GNP as the primary economic measure

A focus solely on maximizing GDP growth

What does the PPP Measure evaluate?

The purchasing power of currencies in the global market Signup and view all the answers

How is economic development defined in the provided context?

As the elimination of poverty, inequality, and unemployment in a growing economy Signup and view all the answers

What term was commonly used instead of 'development' up until World War II?

Material progress Signup and view all the answers

According to the mainstream economic viewpoint, development was primarily equated with which concept in the 19th century?

Modernization Signup and view all the answers

In Marx's interpretation of history, development is considered to be:

The central theme of economic processes Signup and view all the answers

What does Heterodox View emphasize about development?

It is a historical process driven towards a whole change of society Signup and view all the answers

According to Schumpeter, what is a primary cause for the end of capitalism?

Monopoly and demise of competition Signup and view all the answers

Marx believed that society changes due to which fundamental concept?

Economic process Signup and view all the answers

The binary conceptualization of westernization implies that:

Westernization is perceived as necessarily a good thing Signup and view all the answers

In the view of both Schumpeter and Marx, what is considered inevitable?

A transition from capitalism to socialism Signup and view all the answers

How does Amartya Sen define development?

As a process of expanding real freedoms. Signup and view all the answers

Which of the following concepts is NOT part of the Capability Approach?

Environmental sustainability Signup and view all the answers

What role do political freedoms play in the context of development?

They promote economic security. Signup and view all the answers

Which of the following describes the concept of 'Protective security'?

Assistance during unemployment or famine. Signup and view all the answers

What does 'transparency guarantees' refer to in the context of freedoms?

Openness and disclosure in dealings. Signup and view all the answers

How are social freedoms related to economic participation?

They promote access to education and health facilities. Signup and view all the answers

What is a key characteristic of freedoms as described by Amartya Sen?

They can strengthen each other. Signup and view all the answers

What aspect of freedom includes processes that allow actions such as voting?

Political freedoms Signup and view all the answers

Which term implies that certain countries have not yet reached completeness in their development?

Developing Countries Signup and view all the answers

What was one of the implications of calling nations 'Backward societies'?

Intervention from First World countries is necessary. Signup and view all the answers

Which of the following terms is used to refer to the poorest of the poor?

Fourth World Signup and view all the answers

What does the World Bank's classification of countries primarily rely on?

GDP per capita Signup and view all the answers

Which label is considered a relic of the Cold War and implies ideological competition?

The Third World Signup and view all the answers

What is one criticism of the various 'development' labels mentioned?

They tend to be ethnocentric and mask power relations. Signup and view all the answers

Which of the following is NOT listed as a newer label for countries in development?

Backwards societies Signup and view all the answers

What important aspect must be recognized in development according to Crush (1995)?

The agency of those being targeted for development Signup and view all the answers

What are the three goals on which the Human Development Index (HDI) is based?

Longevity, Knowledge, Standard of living Signup and view all the answers

How does the HDI measure human development?

By combining three equally weighted indices. Signup and view all the answers

Which organization initiated the Human Development Index (HDI)?

United Nations Development Programme (UNDP) Signup and view all the answers

What income index range corresponds to low human development according to the HDI classification?

0.00 - 0.499 Signup and view all the answers

Which approach to development is linked with the human rights framework?

Capability Approach Signup and view all the answers

What was adopted by the UN General Assembly in 1986 regarding development?

The Right to Development Declaration Signup and view all the answers

What is the primary aim of the Sustainable Development Goals (2015-2030)?

To advance a multi-dimensional approach to development. Signup and view all the answers

What strategy does the human rights approach employ regarding governments?

To apply political pressure for improving citizens' capabilities. Signup and view all the answers

Study Notes

Development: A Historical Perspective

Pre-WWII: The term "material progress" was commonly used instead of "development."
19th Century: "Economic development" emerged as a policy objective, often associated with modernization, westernization, or industrialization.
Marx's View: Development is seen as a process of change in the entire society, influenced by the changing nature of economic systems.
Schumpeter and Marx: Both believed in the inevitability of a transition from capitalism to socialism.
Causes of Capitalism's Demise: Schumpeter argued for monopoly and the demise of competition, while Marx emphasized class struggle.

Measuring Development

GDP and GNP: GDP measures the total value of goods and services produced within a country, while GNP measures the value produced by permanent residents of a country regardless of location.
Per Capita GDP and GNP: These measures reflect the income per person within or by residents of a country, respectively.
PPP Measure: Adjusts exchange rates to reflect the purchasing power of currencies in different countries, allowing for a more comparable measure of living standards.

Shift in Development Focus

1970s: Shift from prioritizing GNP growth to "redistribution from growth," recognizing the importance of non-economic social indicators.
Amartya Sen's Capability Approach: Development is viewed as expanding real freedoms and individuals' ability to make choices they value.

Key Components of Freedom

Instrumental Freedoms: Political freedoms, economic facilities, social opportunities, transparency guarantees, and protective security.
Interconnectedness of Freedoms: Each type of freedom can contribute to and strengthen others.
Types of Freedom: Include processes (like voting rights) and opportunities (like escaping premature mortality).

The Human Development Index (HDI)

Goals: HDI focuses on longevity, knowledge, and standard of living.
Calculation: Combines income, life expectancy, and education indices to create a score between 0 and 1.

Multi-dimensional Approach to Development

Human Rights-Based Approach: Links development with achieving human rights, emphasizing the obligations of governments to improve capabilities.
Use of International Law: Serves as a framework for holding governments accountable for improving citizens' freedoms.

Labels for Development

Old Labels: "Backward societies," "Developing Countries," and "The Third World" are often considered outdated and problematic due to their implications of inferiority and intervention.
Newer Labels: "Newly Industrialized Countries (NICs)," "Emerging Economies," and "Fourth World" present alternative descriptors, but still carry some limitations.
**World Bank Classification:**Categorizes countries into income groups: low-income, lower-middle income, upper-middle income, and high-income, reflecting the role of GDP per capita.
Ethnocentric Bias: "Development" labels often mask power relationships and reinforce the illusion of progress.

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Description

Explore the evolution of the concept of development from pre-WWII to modern times. This quiz delves into key theories and figures, including Marx and Schumpeter, while examining how development is measured through GDP and GNP metrics.