International Dev Midterm PDF

Prep Classifying developing countries: They typically share: - Low levels of income and high poverty rates - High population growth rates and high dependency rates of youth because of youth populations - High levels of unemployment and underemployment - Dependence on pr...

Prep Classifying developing countries: They typically share: - Low levels of income and high poverty rates - High population growth rates and high dependency rates of youth because of youth populations - High levels of unemployment and underemployment - Dependence on primary industries like agriculture and natural resources Emerging markets: Brazil, India, China. They’re getting bigger Dependency on primary production: developing countries relying on the export of primary commodities (agriculture, minerals) High population growth and dependency ratios: High rates of young populations, contributing to larger dependency ratios (fewer workers supporting more dependents) Inequality, deciles, quintiles Income deciles: divide a population into 10% (bottom decile = poorest 10% of population) Income quintiles: divide a population into 20% (divide into 5 groups) Brazil’s income distribution: Extreme inequality. In the early 2000s top 10% of earners made 22 times more than bottom 40%. Absolute. Moderate, relative poverty Absolute poverty: living less than $2.15 per day Moderate poverty: living around $3.20 per day, level at which basic human needs are barely met but survival is not threatened Relative poverty: does not threaten daily survival considers social and psychological impact and not only income levels Development trends Economic growth and development measured by: - GDP (Gross Domestic Product) - GNI (Gross National Income) Trickle-down economics: is a development theory that assumes benefits from economic growth will gradually spread from the wealthiest segments of society to the poorest, as the wealth generated at the top “trickle down” through increased jobs, investment, and consumption. This concept has been criticized, as growth alone often fails to benefit the entire population, particularly the lower-income groups. Economic growth vs Development: Economic growth refers to an increase in a country's GSP or GNI. However, growth alone doesn’t guarantee development. Development is a multidimensional process that includes improving people’s well-being, freedom, and quality of life. Sustainable development: addressing issues like climate change, resource depletion. Growth and inequality: when economies grow, the distribution of wealth can be extremely uneven, with the rich benefiting disproportionately while poor gain little [Amartya Sen] defines development as the expansion of freedoms that people enjoy. He argues that the value of wealth (income) lies not in the wealth itself but in the substantive freedoms that it enables. Sen distinguishes between two types of freedoms: - Process freedoms: political and civil rights that allow people to participate in decisions that affect their lives - Opportunity freedoms: entitlements like education and healthcare, which expand people’s ability to lead fulfilling lives Multidimensional approaches Multidimensional approaches require indicators beyond GDP, - Life expectancy - Literacy rates - Income distribution - Freedom and Capability expansion (ability to access freedoms) Human development/capabilities Human development: process of expanding people’ freedoms and opportunities, improve well- being, and quality of life. Capabilities Approach: the freedom individuals have to live the life they value. [Dudley Seers] proposed a human-needs-centered approach to development that emphasizes reducing material poverty, unemployment, and inequality, alongside promoting democracy and literacy. His view of development also includes improving human security and environmental sustainability, with greater gender equality HDI (Human Development Index) It’s a composite index used to measure and compare levels of human development across countries. It’s developed by the UN Development Programme (UNDP) Components like: - Life expectancy - Education - Standard of living (GNI per capita, adjusted for purchasing power parity (PPP)) The HDI provides a more multidimensional view of development, going beyond economic growth to consider broader well-being. Measuring multidimensional poverty Recognizes that poverty isn’t just about income, but involves a range of deprivations that people face in their daily lives. It typically includes three core dimensions: - Health: related to nutrition and child mortality - Education: access to schooling within the household - Living standards: access to clean water, sanitation, electricity, etc. SGDs (Sustainable Development Goals) They’re set of 17 global goals by the UN in 2015. They aim to address global challenges like poverty, inequality, environmental sustainability, and peace and justice. Key objectives are: 1. End poverty 2. Zero hunger 3. Good health and well-being 4. Quality education 5. Gender equality 6. Clean water and sanitation 7. Affordable and clean energy 8. Economic growth 9. Industry, innovation and infrastructure 10. Reduced inequalities 11. Sustainable cities and communities 12. Responsible consumption and production 13. Climate action 14. Life below water 15. Life on land 16. Peace, justice, and strong institutions  17. Partnerships for the goals (global partnership) Ladder of development [Jeffrey Sachs] According to Jeffrey Sachs, the ladder of development is a framework that explains the varying stages of development that individuals and nations experience. It underscores the inequalities between countries. Stages of the ladder 1. Not on the ladder: individuals that are in extreme poverty, struggling with basic survival due to crushing poverty, disease, and ignorance. They are often disconnected with market economy 2. First rung: they have entered the market economy for the first time. Begin to see slight improvements in their life, such as basic employment, often in low wage industries like textile factories or informal labour markets 3. Starting to climb: individuals have access to basic education and employment 4. Established in modern sector jobs: people have modern sector jobs, which come with better pay and working conditions, because of higher education 5. Cosmopolitan elite: at the top of the ladder in developing countries. Fully integrated into the global economy, often enjoying lifestyle and opportunities comparable to those in developed countries Human rights-based approach It focuses on realizing the rights of individuals, particularly marginalized and disadvantaged groups, within the framework of development. It integrates the norms, standards, and principles of international human rights law into the development process Millennium Development Goals (MDGs): They were praised for their simplicity, measurability and concreteness, but they were criticized for focusing primarily on basic needs and less on broader human rights, agency, and right-based approaches. A set of 8 international development goals adopted by the UN in 2000, with the aim on addressing critical global issues by 2015 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria and other diseases 7. Ensure environmental sustainability 8. Develop a global partnership for development White man’s burden It was a theoretical approach used by European colonial powers in 19th can early 20th centuries. It was a belief popular during the colonial era that it was the responsibility of European powers to “civilize” the people in their colonies. This idea framed colonization as a noble mission, where western countries claimed they were improving the lives of people in Africa, Asia, and other colonized regions by bringing western values, religion, education, and culture. (British India) Legalized Lawlessness It refers to the use of formal legal frameworks by colonial powers to legitimize oppressive actions against indigenous populations. It often involved creating special laws or states of emergency that permitted violent repression or suspension of civil rights. They used legal mechanisms to justify and perpetuate violence. Extractive/inclusive institutions [Acemoglu and Robinson] Extractive institutions: where political and economic power is concentrated in the hands of a few. They allow the exploitation of the majority for the benefit of the elite (Parts of Africa and Latin America were governed by extractive institutions → deep inequality). Inclusive institutions: they’re designed to allow and encourage participation by the broad population in economic and political processes. They support economic growth, encourage innovation (Ex: modern democracies) Acemoglu and Robinson, argues that inclusive institutions lead to sustained economic development, while extractive institutions lead to stagnation and inequality. Direct/indirect rule Direct rule: refers to the system where colonial powers apply full control over the governance of a colony. They replaced local leader and directly administered the territory through officials from the colonial power Indirect rule: involved governing through local rulers, but under the supervision and control of the colonial authorities. (The French employed indirect rule to the Bey of Tunis) Men-on-the-spot It refers to individuals who were stationed in colonized regions to manage and represent the interests of the colonial powers. (British administrators in India acted as these men. They had significant influence over the administration of local affairs, the economy, and the establishment of colonial rule. East India company One of the most powerful and influential chartered companies in history. The company functioned both as a commercial entity and colonial power, with a significant military presence and administrative control over Indian territories. Its role in colonialism are: - Commercial monopoly: focused on trade (mostly spices, textiles, and tea) - Political and military power: the company expanded its control through military conquests and treaties. It controlled vast regions through a combination of direct rule and alliances with local rulers - Taxation and administration: 18th century, company collected taxes from Indian territories. The company’s rule in India was marked by exploitation of resources and people, which lead to significant economic extraction. Its policies are often associated with causing famines and poverty due to the focus on maximizing profits at the expense of local well-being New institutionalism It’s an approach to development that emphasizes the role of institutions in shaping economic and social outcomes. The theory focuses on the idea that strong institutions are essential for long-term economic transaction costs, so markets can function effectively. Douglass North: a country with reliable legal system that protects property rights will see more investment cos people trust that their investments are safe Acemoglu and Robinson: countries succeed if they have inclusive institutions and fail if they have extractive institutions Dani Rodrik: economic principles need to be adapted to local conditions. A policy that works well in a highly developed country like Germany might not work in a developing country like Nigeria. Elinor Ostrom: local communities can successfully manage common resources without relying on governments or privatization. People can create their own local institutions to manage resources sustainably. Catch-up theorists They focused on how countries that were behind in development could catch up with richer nations. They believed government intervention was key to speeding up this process Alexander Hamilton: Believed the government should protect new industries by using tariffs (taxes on imported goods) to help them grow until they could compete internationally. Friedrich List: argued that free trade only benefits rich countries. Developing countries like Germany at the time, needed the government to help grow their industries first before competing globally Tokuzo Fukuda: supported the government-led development. He argued that Japan needed to learn from western countries but adapt those lesson to its own needs to industrialize and compete globally ISI (Import Substitution Industrialization) It was an economic strategy aimed at reducing dependency on imported goods by promoting domestic industries. Was widely adopted by developing countries between 1930s and 1970s. Countries used tariffs and quotas to block imports and boost local production. Initially focused on basic good like textiles, than later expanding to complex industries like cars. (Argentina, Brazil used IS to develop domestic industries. Problems? Ked to trade deficits, inflation and economic instability, which caused many countries to abandon the strategy in the 70s Modernization (traditional/modern) (1940s-1970s) Modernization theory emerged after the WW2 period and posits that development occurs as societies transition from traditional to modern systems. It suggests that developing countries can achieve economic progress by following the path of western countries, from traditional societies to modern societies Traditional society: agricultural-based economy with low productivity. Modern society: industrialized and urbanized with high productivity. Emphasizes rationality, individualism [W.W. Rostow] Five stages of economic growth: 1. Traditional society: subsistence agriculture with limited technology 2. Preconditions for take-off: introducing investment in infrastructure expanding trade 3. Take-off: economic growth becomes a consistent feature, and industries expand rapidly 4. Drive to maturity: diversification of the economy with advanced technology and ISI 5. Age of high mass consumption: focus on consumption, welfare, and security Debt crisis “Lost Decade” It refers to the financial crisis that struck many developing countries in the late 1970s and 1980s. Causes of the debt crisis:  - Oil price shocks. many developing countries rely on imported oil. - Rising interest rates - Etc. Rent-seeking It refers to activities where individuals or groups try to gain wealth without creating new wealth or contributing to economic productivity. They use political connections to secure economic benefits like monopolies, which leads to corruption. Neoliberalism/ Washington Consensus Neoliberalism (1980s – 1990s) refers to an economic ideology that emphasizes free markets, minimal state intervention, and privatization. Neoliberal policies were largely promoted by international institutions such as the IMF (International Monetary Fund) and the World Bank Elements of Neoliberalism: - Market liberalization - Deregulation - Privatization - Trade liberation: reduce tariffs Washington consensus is a set of 10 economic policy recommendations, as the standard reform package for crisis-stricken developing countries. It became the basis if economic reform throughout the world in 1990s. It became ideology. 1. Four of them are the elements of neoliberalism up Post-Neoliberalism (2000-present) Post Neoliberalism is a response to the failures of neoliberal policies. It seeks to rethink the role of the state, aiming for a balanced approach between markets and state intervention Key features: - State’s return: It advocates for a stronger role of the state in regulating markets, and guiding economic growth. It embrace state intervention in key sectors like energy, industry and education. - The Washington Consensus were criticized for failing to reduce poverty and inequality, which lead to economic instability and social unrest. Which lead some developing countries (India, Brazil) move towards state-led development - Rise of Institutionalism: Bolivia, under Evo Morales (2006-2019), is an example of pot-neoliberalism. The government took back control of important industries like gas and oil from foreign companies. Imperialism (1900-1930s) It’s when powerful countries take control of weaker regions, often for their economic or political benefit. Can be done through colonization, military force, or influencing the governments of other countries. [John Hobson] said that imperialism was driven by economic motives, particularly overproduction and underconsumption with capitalist economies. Focused on overproduction and underconsumption of goods. In other words inequality in the UK meant capitalists needed to export goods. [Vladimir Lenin] expanded on Hobson’s ideas, stating that imperialism was the highest stage of capitalism. He said that companies in rich countries ran out of ways to make more money at home, so they looked to poorer countries for profits. [Rosa Luxemburg] believed that capitalism always needed to expand into new territories to keep growing, which led to imperialism. Early Imperialism (1500-1800s): Spain, Portugal, and Britain expanding their empires in the Americas, Asia, and Africa. Modern Imperialism (1800-1945): Imperialism became more structured with the colonization of Africa and Asia by European powers, as seen in the “Scramble of Africa” following the 1884 Berlin Conference Dependency Theory It flipped Imperialism Theory on its head by focusing the consequences of global capitalism on the economies and societies of developing countries. It explains why some countries stay poor while others get rich. This relationship benefits the rich countries by allowing them to exploit the poor ones for raw materials and cheap labour, while the poorer countries struggle to develop economically. Unequal exchange: Poor countries often export raw materials at low prices, while they import more expensive finished goods. This trade imbalance keeps poorer nation from building their own industries and becoming self-sufficient Neo-colonialism: When former colonies continue to be economically dependent on their former colonizers or rich countries. [Andre Gunder Frank] argues that capitalism causes both development in rich countries and underdevelopment in poor ones. Unequal exchange/terms of trade [Raul Prebisch] Unequal exchange refers to the economic relationship where poor countries export cheap raw materials to rich countries and import expensive manufactured goods in return. This exchange favours wealthier nations, allowing them to profit more while keeping poorer countries dependent on them economically Declining terms of trade: over time, raw materials tend to decrease in value, while the value of manufactured goods increases. This causes poorer countries to become trapped in a cycle of dependence. For example, a country exporting cotton might have to sell more and more cotton each year to afford the same amount of imported clothing or machinery. Dependent development It refers to the idea that some economic growth and industrialization can happen in poorer countries, but it is still heavily shaped and controlled by the influence of wealthier nations Post-development It is a critical perspective that challenges the entire idea of development as a goal for poor countries. Thinkers argue that development itself is a western idea imposed in poorer countries. They believe that the concept of development often ignores local cultures, knowledge, and value, and instead promotes western capitalist systems as the ideal Examples: - Buen Vivir in Latin America: An indigenous concept that promotes well-being, community values, and environmental balance rather than focusing on economic growth. - Zapatista movement in Mexico: They reject the western model of development and emphasize equality, local governance, and protection of Indigenous lands Discourse It refers to a way of talking about, understanding, and representing the world. It’s shaped by power relationships and influences how people think and behave about certain topics. Development as a discourse: Thinkers argue that development is a way of thinking that benefits powerful countries by portraying poorer nation as “underdeveloped” and in need of help. This creates a system where the West is seen as superior, and non-western ways of life are unvaluable. Alternatives to development Instead of following the usual development path (focused on making more money, building factories, and growing like Western countries), alternatives to development suggest different ways for countries to grow. These alternatives focus on local culture, traditions, and caring for the environment instead of copying Western ideas. - Traditional development often pushes countries to follow a western style of progress, like focusing on factories, economic growth, and capitalism. This doesn’t work for every country. Instead, solutions should match the culture and needs of the local people - Use local knowledge: alternatives of development rely on local knowledge. It’s more about community well-being Gender Development Index (GDI) It measures disparities between men and women using the same criteria as HDI. (Long and healthy life; knowledge; standard of living; income level) and then they compare between both genders - Health: measures the average number of years women and men are expected to live. - Education (years of schooling) - Income (GNI per capita) WID (Women In Development) (1970s) Point of departure: WID arose because traditional development efforts did not automatically benefit women. The assumption was that development would eventually “trickle down” to everyone, including women, but this was not happening. Solution: see women as development actors; programmes targeting women Types of programmes: encourage women into staring businesses WID assumptions: - Saw women as homogenous category (all women in same boat) - Didn’t question modernization theory (growth and development) WAD (Women And Development) (1980s) Point of departure: global capitalism keeps women in a position of being exploited Solutions: women’s situation improves if global inequality improves Types of programmes: improve income-generating possibilities for women WAD Assumptions:  - Based on socialist feminist approaches (Marxism) GAD (Gender And Development) (1980s - now) Point of departure: unequal power relationships between men and women; why have women been assigned inferior or secondary roles? GAD emphasizes that development should not just include women in existing processes but should also address the social, economic, and political structures that perpetuate gender inequalities. It recognizes that not all women experience inequality in the same way. There is differences based on class, ethnicity, age, etc. Key points: - Economic change gives greater opportunities to one gender than other - Need to take account and value women’s role in bearing and caring GAD assumptions: - Roots in socialist feminism - Grassroots capable of organizing themselves GAD problems: - Sometimes rejected as too western (post-colonial) – not appropriate to real contexts in the global south Empowerment It refers to the process of enabling individuals, especially women and marginalized groups, to gain control over their lives, make choices, and access resources. Empowerment → Gender Equality and sustainable development Self-Employed Women’s Association (SEWA) is an organization that empowers women workers in the informal sector by providing them with access to resources, training, and collective bargaining power Empowerment must take seriously 1. Internal attitudes 2. Interconnectedness of levels of action 3. Material and discursive constraints Empowerment is valuable as a process as well as an outcome [Gita Sen and Caren Grown] (1988): these scholars emphasized that empowerment should be rooted in collective action and focus on political and economic equality. Post-Colonial Feminism It’s a critical approach that examines how colonial histories and power dynamics affect women in post-colonial societies. It explores the intersection of gender, race, and class, highlighting how western feminist theories often overlook the experiences and perspectives of women from formerly colonized regions. Ex: Representation in media: post-colonial feminists analyze how women from the global south are often portrayed in western media, emphasizing the need for authentic representation that reflects their realities and challenges Masculinities It refer to the various ways in which being male is understood and expressed across different cultures and contexts. This concept recognizes that there is no single way to be a man, but rather multiple masculinities that can be shaped by factors like culture, class, ethnicity, and individual experiences. The study of masculinities examines how these different form of masculinity affect social dynamics, including gender relations and power structures Nature of colonial state The colonial state is characterized by a structure that prioritizes the interests of the colonizing power and implements governance through a combination of coercion, exploitation, and cultural imposition. The colonial legacy: the post-colonial African state often reflects the characteristics of the colonial state, including bureaucratic structures and governance practices that were initially established under colonial rule Neopatrimonialism: when a government mixes modern systems like bureaucracy with traditional practices, such as personal loyalty and favoritism. In this system, political leaders use their power to benefit themselves and their supporters, rather than serving the public. While it looks like a proper government on the outside, decisions are often based on personal relationships and loyalty rather than rules and fairness. State-failure vs Market-failure State failure occurs when a government is unable to provide basic public services, maintain law and order, or manage the economy effectively. This often leads to political instability, weak governance and even conflict. In such situations, the state loses its ability to perform essential functions, and this can lead to widespread poverty and social unrest Market failure occurs when the free market, left to operate on its own, does not allocate resources efficiently, leading to a loss of economic and social welfare. It happens when the market is unable to provide public goods, handle externalities (pollution), or ensure fair competition (monopoly and inequality). Where it leads to societal harm Debate: State vs markets in development - Structuralist view: Advocates for more state intervention to correct market failures, arguing that governments should use industrial policies and other tool to guide economic development, as seen in successful east Asian nations like south Korea and Taiwan - Neoliberal view: Argues that market forces should be allowed to operate freely and that state intervention often leads to inefficiencies, corruption, and state failure. They believe that imperfect markets are better than imperfect states Developmental state It refers to a government that plays an active and intentional role in promoting economic development, particularly through industrial policies, state intervention, and strong collaboration between the state and private sector. Developmental state have a clear goal of national economic growth and industrialisation. They prioritize development as a central policy, often focusing on transforming their economies from agricultural to industrial. [Robert Wade] have written extensively about the success of developmental states, emphasizing the importance of state- led industrial policies and the balance between government control and private sector autonomy Definition of the “developmental state”: 1. Developmental ambition: strong desire and clear goals to develop the economy. 2. Elite consensus frames that intervention: means that powerful people in the country agree that the government should intervene or get involved in the economy. 3. State capacity 4. Embedded autonomy 5. National security vulnerability Industrial policy It refers to the government strategies aimed at promoting the development and growth of specific sectors or industries within the economy. Use of industrial policy never eliminated international competition. Ex: East Asian Tigers: these countries used industrial policy to promote sectors such as electronics. Shipbuilding, and automobiles. Also Robert Wade talked about this concept with developmental state Challenges and criticisms: - Risk of government failure - Neopatrimonialism Capacity and autonomy State capacity refers to the government’s ability to effectively manage resources, enforce laws, provide public services, and implement policies. A state with high capacity is well-organized, has skilled officials, and can deliver services to it citizens smoothly. State autonomy means that the government can make decisions and implement policies independently, without being overly influenced by specific groups, businesses, or powerful individuals. They act in the public interest rather than catering to the needs pf a few elites or political allies. When a government has both high capacity and high autonomy, it can effectively promote development, maintain stability, and provide equal opportunities for all citizens. Resource nationalism It refers to a country’s strategy of asserting control over its natural resources to benefit the national economy. This often involves limiting foreign control of resources and prioritizing local ownership, management, and profits. The idea is to ensure that the wealth generated from resources, such as oil, gas, or minerals, stays within the country and is used for national development Ex: In Bolivia, resource nationalism has been central to its policy on lithium extraction. The government sought to control lithium resources to ensure that the profits from this valuable resource benefit the Bolivian economy. This example highlights how resource nationalism is applied to retain control over strategically important resources. [David Ricardo]: was an economist known for his contributions to free market theory. He believed that removing trade barriers allows countries to specialize in their comparative advantages, leading to greater economic efficiency and wealth. [Rebecca Tiessen]: known for her work in the field of feminist theory and global studies, focusing on issues like gender development and social justice.