Paradigm Shifts in Development Thinking
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Paradigm Shifts in Development Thinking

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Questions and Answers

Which countries in Africa are mentioned as having prospects of good growth rates?

  • South Africa and Egypt
  • Kenya and Rwanda
  • Ghana and Nigeria (correct)
  • Uganda and Algeria

    • What was the growth rate in Latin America during the 1980s?

  • 2.0%
  • 1.5%
  • 0.2% (correct)
  • 3.1%

    • Which countries in Asia were identified as having a high rate of growth prospects?

  • Indonesia and Vietnam
  • Philippines and China
  • Thailand and Malaysia
  • India, Pakistan, and Burma (correct)

    • What is referred to as 'the East Asian growth miracle'?

    <p>Rapid economic development in East Asian countries</p> Signup and view all the answers

    Which country is mentioned as a notable success story in Latin America despite recent social unrest?

    <p>Chile</p> 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?

    <p>State-led development planning</p> Signup and view all the answers

    Which policy was emphasized as a core strategy during Phase 1 of development thinking?

    <p>Import-substitution</p> Signup and view all the answers

    What characterized the economic mindset during the era of inward-oriented development?

    <p>Mistrust of market mechanisms</p> 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?

    <p>It had limited validity due to structural peculiarities</p> Signup and view all the answers

    What marked the transition to Phase 2 of development thinking in the late 1970s?

    <p>Convergence of policy debates towards Washington Consensus</p> Signup and view all the answers

    Which phase followed the convergence of policy debate towards the Washington Consensus?

    <p>Reconsideration of Washington Consensus</p> Signup and view all the answers

    What was a consequence of the state being viewed as the 'omniscient' leader in Phase 1?

    <p>Increased state planning and control over the economy</p> Signup and view all the answers

    What led to the emphasis on import substitution during the development phase before the late 1970s?

    <p>Belief in enhancing domestic industrial capabilities</p> Signup and view all the answers

    What was the per capita GDP of the USA in 1990 (at 1990 $)?

    <p>$23,201</p> Signup and view all the answers

    Which two countries are noted as success cases amidst broader economic challenges in Africa?

    <p>Botswana and Mauritius</p> Signup and view all the answers

    What is the income gap between the richest countries and the poorest African countries?

    <p>18:1</p> Signup and view all the answers

    What has been the average per capita GNI growth rate in Mauritius from 1980 to 2018?

    <p>3.7%</p> Signup and view all the answers

    Which country had the highest per capita income in 2003, based on the provided data?

    <p>USA</p> Signup and view all the answers

    What key measure of global poverty was introduced in the World Development Report 1990?

    <p>Dollar-a-day headcount measure</p> 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?

    <p>Promote market-oriented growth</p> Signup and view all the answers

    What was a significant ideological outcome of the introduction of the Human Development Index (HDI)?

    <p>It served as a platform for leftist advocates to push for government action against poverty.</p> Signup and view all the answers

    Which factor is now widely accepted as central to poverty alleviation according to the content?

    <p>Economic growth</p> Signup and view all the answers

    What has been increasingly recognized as necessary for effective poverty eradication by the dawn of the new millennium?

    <p>Proactive government policies addressing the complexity of poverty</p> Signup and view all the answers

    Which aspect is NOT mentioned as part of the reform package based on the 'new growth' literature?

    <p>Development of social safety nets</p> Signup and view all the answers

    What does Bhagwati suggest about the relationship between economic growth and poverty alleviation?

    <p>Growth can create opportunities while government policy is needed to help the poor seize them.</p> Signup and view all the answers

    What is a common misconception about the role of economic growth in poverty alleviation?

    <p>Economic growth equates directly to poverty reduction.</p> Signup and view all the answers

    Which country had the highest per capita income relative to the USA in 2015-2019?

    <p>Singapore</p> Signup and view all the answers

    What was the per capita income of Malaysia compared to the USA in 2015-2019?

    <p>42.4</p> 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?

    <p>Myanmar</p> 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?

    <p>Myanmar</p> Signup and view all the answers

    Which of the following statements about Argentina's economic performance is accurate?

    <p>It was one of the wealthiest countries at the start of the 20th century but has since declined.</p> Signup and view all the answers

    How did the per capita income of South Korea change from 1990-1991 to 2015-2019?

    <p>It increased significantly.</p> Signup and view all the answers

    Which country had a per capita income close to 9.1 relative to the USA in 1990-1991?

    <p>India</p> Signup and view all the answers

    What did the per capita income of Indonesia trend toward in the years leading up to 2015-2019?

    <p>Steady increase</p> 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).

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    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.

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