Podcast
Questions and Answers
Which countries in Africa are mentioned as having prospects of good growth rates?
Which countries in Africa are mentioned as having prospects of good growth rates?
What was the growth rate in Latin America during the 1980s?
What was the growth rate in Latin America during the 1980s?
Which countries in Asia were identified as having a high rate of growth prospects?
Which countries in Asia were identified as having a high rate of growth prospects?
What is referred to as 'the East Asian growth miracle'?
What is referred to as 'the East Asian growth miracle'?
Signup and view all the answers
Which country is mentioned as a notable success story in Latin America despite recent social unrest?
Which country is mentioned as a notable success story in Latin America despite recent social unrest?
Signup and view all the answers
What was the main focus of the development strategy during Phase 1 from the 1950s until the late 1970s?
What was the main focus of the development strategy during Phase 1 from the 1950s until the late 1970s?
Signup and view all the answers
Which policy was emphasized as a core strategy during Phase 1 of development thinking?
Which policy was emphasized as a core strategy during Phase 1 of development thinking?
Signup and view all the answers
What characterized the economic mindset during the era of inward-oriented development?
What characterized the economic mindset during the era of inward-oriented development?
Signup and view all the answers
In the context of economic development, what did policymakers believe about mainstream economics in developing countries during Phase 1?
In the context of economic development, what did policymakers believe about mainstream economics in developing countries during Phase 1?
Signup and view all the answers
What marked the transition to Phase 2 of development thinking in the late 1970s?
What marked the transition to Phase 2 of development thinking in the late 1970s?
Signup and view all the answers
Which phase followed the convergence of policy debate towards the Washington Consensus?
Which phase followed the convergence of policy debate towards the Washington Consensus?
Signup and view all the answers
What was a consequence of the state being viewed as the 'omniscient' leader in Phase 1?
What was a consequence of the state being viewed as the 'omniscient' leader in Phase 1?
Signup and view all the answers
What led to the emphasis on import substitution during the development phase before the late 1970s?
What led to the emphasis on import substitution during the development phase before the late 1970s?
Signup and view all the answers
What was the per capita GDP of the USA in 1990 (at 1990 $)?
What was the per capita GDP of the USA in 1990 (at 1990 $)?
Signup and view all the answers
Which two countries are noted as success cases amidst broader economic challenges in Africa?
Which two countries are noted as success cases amidst broader economic challenges in Africa?
Signup and view all the answers
What is the income gap between the richest countries and the poorest African countries?
What is the income gap between the richest countries and the poorest African countries?
Signup and view all the answers
What has been the average per capita GNI growth rate in Mauritius from 1980 to 2018?
What has been the average per capita GNI growth rate in Mauritius from 1980 to 2018?
Signup and view all the answers
Which country had the highest per capita income in 2003, based on the provided data?
Which country had the highest per capita income in 2003, based on the provided data?
Signup and view all the answers
What key measure of global poverty was introduced in the World Development Report 1990?
What key measure of global poverty was introduced in the World Development Report 1990?
Signup and view all the answers
What is one component of the three-pronged strategy for poverty alleviation proposed in the World Development Report 1990?
What is one component of the three-pronged strategy for poverty alleviation proposed in the World Development Report 1990?
Signup and view all the answers
What was a significant ideological outcome of the introduction of the Human Development Index (HDI)?
What was a significant ideological outcome of the introduction of the Human Development Index (HDI)?
Signup and view all the answers
Which factor is now widely accepted as central to poverty alleviation according to the content?
Which factor is now widely accepted as central to poverty alleviation according to the content?
Signup and view all the answers
What has been increasingly recognized as necessary for effective poverty eradication by the dawn of the new millennium?
What has been increasingly recognized as necessary for effective poverty eradication by the dawn of the new millennium?
Signup and view all the answers
Which aspect is NOT mentioned as part of the reform package based on the 'new growth' literature?
Which aspect is NOT mentioned as part of the reform package based on the 'new growth' literature?
Signup and view all the answers
What does Bhagwati suggest about the relationship between economic growth and poverty alleviation?
What does Bhagwati suggest about the relationship between economic growth and poverty alleviation?
Signup and view all the answers
What is a common misconception about the role of economic growth in poverty alleviation?
What is a common misconception about the role of economic growth in poverty alleviation?
Signup and view all the answers
Which country had the highest per capita income relative to the USA in 2015-2019?
Which country had the highest per capita income relative to the USA in 2015-2019?
Signup and view all the answers
What was the per capita income of Malaysia compared to the USA in 2015-2019?
What was the per capita income of Malaysia compared to the USA in 2015-2019?
Signup and view all the answers
Which of the following countries experienced a significant decline in per capita income relative to the USA over the decades?
Which of the following countries experienced a significant decline in per capita income relative to the USA over the decades?
Signup and view all the answers
Which Asian country had the lowest per capita income relative to the USA in any of the listed years?
Which Asian country had the lowest per capita income relative to the USA in any of the listed years?
Signup and view all the answers
Which of the following statements about Argentina's economic performance is accurate?
Which of the following statements about Argentina's economic performance is accurate?
Signup and view all the answers
How did the per capita income of South Korea change from 1990-1991 to 2015-2019?
How did the per capita income of South Korea change from 1990-1991 to 2015-2019?
Signup and view all the answers
Which country had a per capita income close to 9.1 relative to the USA in 1990-1991?
Which country had a per capita income close to 9.1 relative to the USA in 1990-1991?
Signup and view all the answers
What did the per capita income of Indonesia trend toward in the years leading up to 2015-2019?
What did the per capita income of Indonesia trend toward in the years leading up to 2015-2019?
Signup and view all the answers
Study Notes
Paradigm Shifts in Development Thinking
- Development thought evolved through 3 major phases: state-led development (1950s-late 1970s), Washington Consensus (late 1970s onwards), and reconsideration of the Washington Consensus (early 1990s onwards).
State-Led Development (1950s-Late 1970s)
- This era focused on state-led growth and development planning.
- The state was perceived as the key driver in navigating the development process.
- "Import-substitution" was a prominent strategy, emphasizing replacing imports with domestic production.
Drivers of Import Substitution
- There was a distrust of market mechanisms, particularly within developing countries.
- The mainstream economic theory was considered less applicable to developing nations due to their "structural" uniqueness.
Transition Towards Market-Oriented Policies
- World Development Report 1990 introduced the "dollar-a-day" headcount measure of global poverty (1.1 billion people in extreme poverty at the time).
- UNDP's first Human Development Report 1990 introduced the Human Development Index (HDI).
- These reports proposed a multi-pronged approach to poverty alleviation, emphasizing market-oriented growth, direct basic services for the poor, and social safety nets.
Shift in Development Advocacy
- The HDI's ideological underpinnings provided a framework for advocating direct government action against poverty.
- Research on poverty causes and alleviation strategies proliferated in the 1990s.
- By the 2000s, a more pluralistic framework emerged, recognizing the complexity of poverty and the need for proactive government policies.
- However, development policy advocacy tilted towards market-friendly policies and increased economic openness.
Economic Growth and Poverty Alleviation
- It is now widely recognized that economic growth is crucial for poverty alleviation.
- Outward-oriented growth is generally more effective in reducing poverty.
- Government policy still holds significance, with Bhagwati (2004) highlighting that while growth provides opportunity, governments must ensure those opportunities are accessible to the poor.
Divergent Patterns of Economic Growth
- Early predictions on economic growth varied significantly across regions, with Asia's prospects considered mixed.
East Asian Growth Miracle
- East Asian economies experienced remarkable growth (Table 1).
- The World Bank attributed this to a combination of factors, including public policy and robust economic growth.
Latin American Performance
- Latin America's growth stagnated after 1980, with the 1980s often referred to as the "lost decade."
- Chile stands out as a notable success story, although recent social unrest raises questions about the sustainability of growth without equity.
Brazil: "The Eternal Land of the Future"
- Despite holding great potential, Brazil's economic performance has been uneven.
Argentina: A Growth/Development Failure
- Once a wealthy nation, Argentina experienced a significant decline in per capita GDP over the past several decades.
African Growth Tragedy
- Africa experienced growth in the period following decolonization, but this faltered after 1980.
- The income gap between the richest and poorest African countries is now 18:1, the largest such gap in history.
Notable African Success Stories
- Botswana and Mauritius stand out as success stories, demonstrating potential for economic development despite challenging initial conditions.
Mauritius: A Remarkable Transformation
- Mauritius initially faced extreme poverty and a bleak outlook.
- The country has achieved significant economic growth, becoming an upper-middle-income country with a per capita income of about US$12,000 (2018).
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the evolution of development thought through three significant phases, including state-led development and the Washington Consensus. Understand the key drivers and transition towards market-oriented policies in addressing poverty and development. This quiz examines the major shifts in development thinking from the 1950s to the early 1990s.
