Chapters 1-4 Economic Development PDF
Document Details
Uploaded by Deleted User
Michael P. Todaro and Stephen C. Smith
Tags
Summary
This book examines economic development from a global perspective, covering theories, models, and case studies. It explores differences in living standards, country classifications, and the factors influencing economic success. The book also explores historical theories of growth and current models of development, along with the issues of poverty and inequality.
Full Transcript
ECONOMIC DEVELOPMENT THIRTEENTH EDITION MICHAEL P. TODARO STEPHEN C. SMITH New York University The George Washington University Harlow, England London New York Boston San Fran...
ECONOMIC DEVELOPMENT THIRTEENTH EDITION MICHAEL P. TODARO STEPHEN C. SMITH New York University The George Washington University Harlow, England London New York Boston San Francisco Toronto Sydney Dubai Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town São Paulo Mexico City Madrid Amsterdam Munich Paris Milan Contents Case Studies and Boxes xv Figures and Tables xvii Preface xxi 1 Introducing Economic Development: A Global Perspective 1 1.1 Introduction to Some of the World’s Biggest Questions 1 1.2 How Living Levels Differ Around the World 2 1.3 How Countries Are Classified by Their Average Levels of Development: A First Look 7 1.4 Economics and Development Studies 8 1.4.1 Wider Scope of Study 8 1.4.2 The Central Role of Women 10 1.5 The Meaning of Development: Amartya Sen’s “Capability” Approach 10 1.6 Happiness and Development 13 1.7 The Sustainable Development Goals: A Shared Development Mission 15 1.7.1 Seventeen Goals 15 1.7.2 The Millennium Development Goals, 2000–2015 16 1.7.3 Implementing the Sustainable Development Goals 19 1.8 Some Critical Questions for the Study of Development Economics 21 Case Study 1: Comparative Economic Development: Pakistan and Bangladesh 24 2 Comparative Economic Development 35 2.1 An Introduction 35 2.2 What is the Developing World? Classifying Levels of National Economic Development 37 2.2.1 Conventional Comparisons of Average National Income 37 2.2.2 Adjusting for Purchasing Power Parity 43 2.2.3 Other Common Country Classifications 45 2.3 Comparing Countries by Health and Education, and the Human Development Index 46 2.3.1 Comparing Health and Education Levels 46 2.3.2 Introducing the Human Development Index 46 2.3.3 Human Development Index Ranking: How Does it Differ from Income Rankings? 49 2.3.4 Human Development Index: Alternative Formulations 51 v vi Contents 2.4 Key Similarities and Differences Among Developing Countries 54 2.4.1 Levels of Income and Productivity 54 2.4.2 Human Capital Attainments 55 2.4.3 Inequality and Absolute Poverty 57 2.4.4 Population Growth and Age Structure 58 2.4.5 Rural Economy and Rural-to-Urban Migration 59 2.4.6 Social Fractionalisation 59 2.4.7 Level of Industrialisation and Manufactured Exports 61 2.4.8 Geography and Natural Resource Endowments 61 2.4.9 Extent of Financial and Other Market Development 62 2.4.10 Quality of Institutions and External Dependence 63 2.5 Are Living Standards of Developing and Developed Nations Converging? 67 2.5.1 The Great Divergence 67 2.5.2 Two Major Reasons to Expect Convergence 69 2.5.3 Perspectives on Income Convergence 70 2.6 Long-Run Causes of Comparative Development 74 2.7 Concluding Observations 82 Case Study 2: Institutions, Colonial Legacies, and Economic Development: Ghana and Côte d’Ivoire 84 Appendix 2.1 The Traditional Human Development Index (HDI) 102 Appendix 2.2 How Low-Income Countries Today Differ from Developed Countries in Their Earlier Stages 108 3 Classic Theories of Economic Growth and Development 116 3.1 Classic Theories of Economic Development: Four Approaches 116 3.2 Development as Growth and the Linear-Stages Theories 117 3.2.1 Rostow’s Stages of Growth 118 3.2.2 The Harrod-Domar Growth Model 118 3.2.3 Obstacles and Constraints 121 3.2.4 Necessary Versus Sufficient Conditions: Some Criticisms of the Stages Model 122 3.3 Structural-Change Models 122 3.3.1 The Lewis Theory of Economic Development 122 3.3.2 Structural Change and Patterns of Development 127 3.3.3 Conclusions and Implications 128 3.4 The International-Dependence Revolution 129 3.4.1 The Neocolonial Dependence Model 130 3.4.2 The False-Paradigm Model 131 3.4.3 The Dualistic-Development Thesis 131 3.4.4 Conclusions and Implications 132 3.5 The Neoclassical Counter-Revolution: Market Fundamentalism 133 3.5.1 Challenging the Statist Model: Free Markets, Public Choice, and Market-Friendly Approaches 133 3.5.2 Traditional Neoclassical Growth Theory 135 3.5.3 Conclusions and Implications 137 3.6 Classic Theories of Development: Reconciling the Differences 138 Case Study 3: Classic Schools of Thought in Context: South Korea and Argentina 140 Appendix 3.1 Components of Economic Growth 147 Contents vii Appendix 3.2 The Solow Neoclassical Growth Model 153 Appendix 3.3 Endogenous Growth Theory 158 4 Contemporary Models of Development and Underdevelopment 164 4.1 Underdevelopment as a Coordination Failure 165 4.2 Multiple Equilibria: A Diagrammatic Approach 168 4.3 Starting Economic Development: The Big Push 174 4.3.1 The Big Push: A Graphical Model 175 4.3.2 Other Cases in Which a Big Push May Be Necessary 180 4.3.3 Why the Problem Cannot Be Solved by a Super-Entrepreneur 181 4.4 Further Problems of Multiple Equilibria 183 4.4.1 Inefficient Advantages of Incumbency 183 4.4.2 Behaviour and Norms 183 4.4.3 Linkages 184 4.4.4 Inequality, Multiple Equilibria, and Growth 185 4.5 Michael Kremer’s O-Ring Theory of Economic Development 186 4.5.1 The O-Ring Model 186 4.5.2 Implications of the O-Ring Theory 189 4.6 Economic Development as Self-Discovery 191 4.7 The Hausmann-Rodrik-Velasco Growth Diagnostics Framework 192 4.8 Conclusions 199 Case Study 4: China: Understanding a Development “Miracle” 202 5 Poverty, Inequality, and Development 220 5.1 Measuring Inequality 222 5.1.1 Size Distributions 222 5.1.2 Lorenz Curves 224 5.1.3 Gini Coefficients and Aggregate Measures of Inequality 226 5.1.4 The Ahluwalia-Chenery Welfare Index (ACWI) 228 5.2 Measuring Absolute Poverty 228 5.2.1 Income Poverty 228 5.2.2 Multidimensional Poverty Measurement 233 5.3 Poverty, Inequality, and Social Welfare 233 5.3.1 What is it About Extreme Inequality That’s So Harmful to Economic Development? 233 5.3.2 Dualistic Development and Shifting Lorenz Curves: Some Stylised Typologies 235 5.3.3 Kuznets’s Inverted-U Hypothesis 239 5.3.4 Growth and Inequality 243 5.4 Absolute Poverty: Extent and Magnitude 244 5.4.1 The Multidimensional Poverty Index (MPI) 246 5.5 Economic Characteristics of High-Poverty Groups 251 5.5.1 Children and Poverty 252 5.5.2 Women and Poverty 252 5.5.3 Ethnic Minorities, Indigenous Populations, and Poverty 255 5.6 Growth and Poverty 257 Case Studies and Boxes Case Studies 1 Comparative Economic Development: Pakistan and Bangladesh 24 2 Institutions, Colonial Legacies, and Economic Development: Ghana and Côte d’Ivoire 84 3 Classic Schools of Thought in Context: South Korea and Argentina 140 4 China: Understanding a Development “Miracle” 202 5 India: Complex Challenges and Compelling Opportunities 272 6 “Twins” Growing Apart: Burundi and Rwanda 332 7 Rural–Urban Migration and Urbanisation in Developing Countries: India and Botswana 377 8 Pathways Out of Poverty: Progresa/Oportunidades in Mexico 434 9 The Need to Improve Agricultural Extension for Women Farmers: Kenya and Uganda 489 10 A World of Contrasts on One Island: Haiti and the Dominican Republic 548 11 The Role of Development NGOs: BRAC and the Grameen Bank 599 12 Pioneers in Development Success through Trade and Industrialisation Strategy: South Korea and Taiwan in Comparative Perspective 676 13 Brazil: Meaningful Development or Middle-Income Trap? 737 14 The Roots of Divergence Among Developing Countries: Costa Rica, Guatemala, and Honduras 785 15 How Two African Success Stories Have Addressed Challenges: Botswana and Mauritius 836 Boxes 1.1 Development Policy: The Experience of Poverty: Voices of the Poor 4 1.2 Development Policy: Comparing Living Conditions Commonly Found Across Four Strata 6 1.3 Development Policy: The 17 Goals, and Where They are Examined in This Text 20 2.1 Development Policy: Differences Between the Current Human Development Index and the Traditional HDI 53 2.2 Findings: The Persistent Effects of Colonial Forced Labour on Poverty and Development 66 2.3 Findings: Instruments to Test Theories of Comparative Development: Inequality 79 2.4 Findings: Legacy of Colonial Land Tenure and Governance Systems 80 4.1 Development Policy: Synchronising Expectations: Resetting “Latin American Time” 171 4.2 Findings: Village Coordination and Monitoring for Better Health Outcomes 172 4.3 Findings: Three Country Case Study Applications of Growth Diagnostics 196 4.4 Findings: Inclusive Growth Diagnostics: The Case of Bangladesh 198 5.1 Development Policy: The Latin America Effect 242 5.2 Development Policy: Problems of Gender Relations in Developing Countries: Voices of the Poor 254 6.1 Findings: The 2017 Revised United Nations Population Projections 300 6.2 Findings: Social Norms and the Changing Patterns of Fertility in Bangladesh 308 6.3 Development Policy: Population Policy in China 321 6.4 Findings: Contraceptives Need and Use in Developing Countries, 2003 to 2012 327 7.1 Findings: The Emergence of Industrial Districts or Clusters in China 351 xv xvi Case Studies and Boxes 8.1 Development Policy: Health and Education: Voices of the Poor 391 8.2 Development Policy: Linkages Between Investments in Health and Education 392 8.3 Findings: Mothers’ Health Knowledge is Crucial for Raising Child Health 394 8.4 Findings: School Impact of a Low-Cost Health Intervention 395 8.5 Findings: Cash or Condition? Evidence from Malawi 405 8.6 Findings: Impacts of Tutor and Computer-Assisted Learning Programmes 415 8.7 Development Policy: Health Challenges Faced by Developing Countries 419 8.8 Development Policy: AIDS: Crisis and Response in Uganda 423 8.9 Findings: Applying Behavioural Economics to Improve Physical and Mental Health 428 9.1 Development Policy: Development Policy Issues: Famine in the Horn of Africa 454 9.2 Findings: Learning About Farming: The Diffusion of Pineapple Growing in Ghana 482 10.1 Development Policy: Autonomous Adaptation to Climate Change by Farmers in Africa 521 10.2 Development Policy: One of the World’s Poorest Countries Tries to Prepare for Climate Change: Niger 522 10.3 Findings: Elinor Ostrom’s Design Principles Derived from Studies of Long-Enduring Institutions for Governing Sustainable Resources 529 10.4 Development Policy: How Different Is Adaptation and Resilience Assistance from Development Assistance? 542 11.1 Development Policy: The Former Washington Consensus and East Asia 576 11.2 Development Policy: The New Consensus 578 11.3 Findings: Reducing Teacher Absenteeism in an NGO School 592 12.1 Findings: Four Centuries of Evidence on the Prebisch-Singer Hypothesis 627 12.2 Findings: Exporting and the Performance of Artisan Rug Makers in Egypt 671 13.1 Development Policy: The History and Role of the International Monetary Fund 701 13.2 Development Policy: The History and Role of the World Bank 705 13.3 Development Policy: Mexico: Crisis, Debt Reduction, and the Struggle for Renewed Growth 719 13.4 Development Policy: “Odious Debt” and its Prevention 723 14.1 Development Policy: Seven Key Disputed Issues About the Role and Impact of Multinational Corporations in Developing Countries 758 15.1 Findings: The Financial Lives of the Poor 812 15.2 Findings: Combining Microfinance with Training 816 15.3 Development Policy: Privatisation: What, When, and to Whom? Chile and Poland 833 Figures and Tables Figures 1.1 Income and Happiness: Comparing Countries 14 2.1 Nations of the World, Classified by GNI Per Capita 40 2.2 Income Comparisons for Selected Countries, 2017 42 2.3 Improvements in Human Development Since 1990, by Region 52 2.4 Under-5 Mortality Rates, 1990 and 2017 56 2.5 The growth of real output per person since 1750 68 2.6 Relative Country Convergence 1970–1994 and 1994–2017 71 2.7 Relative Country Convergence: World, Developing Countries, and OECD 72 2.8 Growth Convergence versus Absolute Income Convergence 73 2.9 Schematic Representation of Leading Theories of Comparative Development 75 A2.1.1 Human Development Disparities Within Selected Countries 107 3.1 The Lewis Model of Modern-Sector Growth in a Two-Sector Surplus-Labour Economy 124 3.2 The Lewis Model Modified by Labour-Saving Capital Accumulation: Employment Implications 126 A3.1.1 Effect of Increases in Physical and Human Resources on the Production Possibility Frontier 149 A3.1.2 Effect of Growth of Capital Stock and Land on the Production Possibility Frontier 150 A3.1.3 Effect of Technological Change in the Agricultural Sector on the Production Possibility Frontier 151 A3.1.4 Effect of Technological Change in the Industrial Sector on the Production Possibility Frontier 152 A3.2.1 Equilibrium in the Solow Growth Model 154 A3.2.2 The Long-Run Effect of Changing the Savings Rate in the Solow Model 156 4.1 Multiple Equilibria 169 4.2 The Big Push 176 4.3 Hausmann-Rodrik-Velasco Growth Diagnostics Decision Tree 193 5.1 The Lorenz Curve 224 5.2 The Greater the Curvature of the Lorenz Line, the Greater the Relative Degree of Inequality 225 5.3 Estimating the Gini Coefficient 226 5.4 Four Possible Lorenz Curves 227 5.5 Measuring the Total Poverty Gap 229 5.6 Improved Income Distribution under the Traditional-Sector Enrichment Growth Typology 236 5.7 Worsened Income Distribution under the Modern-Sector Enrichment Growth Typology 237 5.8 Crossing Lorenz Curves in the Modern-Sector Enlargement Growth Typology 238 5.9 The “Inverted-U” Kuznets Curve 239 5.10 Kuznets Curve with Latin American Countries Identified 242 5.11 Plot of Inequality Data for Selected Countries 243 xvii xviii Figures and Tables 5.12 Global and Regional Poverty Trends, 1981–2010 245 5.13 Functional Income Distribution in a Market Economy: An Illustration 260 A5.1.1Choice of Techniques: The Price Incentive Model 281 6.1 World Population Growth, 1950–2050 295 6.2 World Population Distribution by Region, 2010 and 2050: The Big Story: Africa’s Steadily Growing Share of World Population 297 6.3 Map with Country Sizes Proportional to Their Fraction of World Population 297 6.4 Population Pyramids: Low-, Middle-, and High-Income Countries, 1965; and 2016 301 6.5 The Demographic Transition in Western Europe 304 6.6 The Malthusian Population Trap 305 6.7 How Technological and Social Progress Allows Nations to Avoid the Population Trap 307 6.8 Microeconomic Theory of Fertility: An Illustration 312 7.1 Changes in Urban and Rural Population by Major Areas Between 2011 and 2050 (In Millions) 342 7.2 Relationship Between Urbanisation and Per Capita GDP, 2010, with Comparison to Relationship in 1960 343 7.3 Proportion of Urban Population by Region, 1970–1995 343 7.4 Megacities: Cities with 10 Million or More Inhabitants 345 7.5 Total Population in Millions by City Size Class, 1970, 1990, 2011, and 2025 346 7.6 Estimated and Projected Urban and Rural Population of the More- and Less-Developed Regions, 1950–2050 347 7.7 Politics and Urban Concentration 357 7.8 Components of Migration in Selected Countries 365 7.9 The Harris-Todaro Migration Model 368 8.1 Age-Earnings Profiles by Level of Education: Venezuela 397 8.2 Financial Trade-Offs in the Decision to Continue in School 398 8.3 Private Versus Social Benefits and Costs of Education: An Illustration 400 8.4 Child Labour as a Bad Equilibrium 403 8.5 Youth Literacy Rate, 2016 408 8.6 Estimated Percentage of Women “Missing” 410 8.7 Lorenz Curves for Education in India 414 8.8 Children’s Likelihood to Die in Selected Countries 417 8.9 Proportion of Children Under Five Who Are Underweight, by Household Wealth, Around 2008 418 8.10 Proportion of Children Under Five Who are Underweight, 1990 and 2018 421 8.11 Wages, Education, and Height of Males in Brazil and the United States 431 9.1 As Countries Develop, the Shares of GDP and Labour in Agriculture Tend to Decline, But With Many Idiosyncrasies 451 9.2 Cereal Yields by World Region, 1960–2005 452 9.3 World Prices for Agricultural Commodities, 1974–2012 456 9.4 Agriculture’s Contribution to Growth and the Rural Share in Poverty in Three Types of Countries 460 9.5 Small-Farmer Attitudes Toward Risk: Why It Is Sometimes Rational to Resist Innovation and Change 476 9.6 Crop Yield Probability Densities of Two Different Farming Techniques 477 9.7 Incentives Under Sharecropping 478 10.1 Hypothetical Income-Pollution Relationship: Environmental Kuznets Curves 508 10.2 Static Efficiency in Resource Allocation 524 10.3 Efficient Resource Allocation Over Time 525 10.4 Common Property Resources and Misallocation 526 Figures and Tables xix 10.5 Public Goods, Private Goods, and the Free-Rider Problem 530 10.6 Pollution Externalities: Private Versus Social Costs and the Role of Taxation 533 10.7 Increasing Pollution Externalities with Economic Growth 534 10.8 The Earth at Night, Reflecting Inequality of Energy Use Across High-, Middle-, and Low-Income Countries; and Concentration of Economic Activity Along Seacoasts 546 11.1 Global Trends in Governance, 1947–2017 581 11.2 Typology of Goods 587 11.3 Sector Overlap and Sector Extension: Contingency-Based Shifts in Organisational Comparative Advantage, with the NGO example 591 11.4 Corruption as a Regressive Tax: The Case of Ecuador 594 11.5 The Association Between Rule of Law and Per Capita Income 595 12.1 Trade with Variable Factor Proportions and Different Factor Endowments 631 12.2 The Vent-for-Surplus Theory of Trade 638 12.3 Import Substitution and the Theory of Protection 653 12.4 Free-Market and Controlled Rates of Foreign Exchange 660 13.1 The Mechanics of Petrodollar Recycling 713 13.2 Global Imbalances 722 13.3 Debt Service Ratios for Selected HIPC Countries, 2002 and 2012 724 13.4 International Reserves (Index 2000 = 100, Three-Month Moving Average) 726 13.5 Indices of Commodity Prices (Total and Non-Fuel), 2000–2013 730 14.1 FDI Inflows, Global and By Group of Economies, 1980–2017 (Billions of Dollars) 751 14.2 Trend in Annual Growth Rates of FDI Inflows, by Groups of Economies, 1970–2017 (Per Cent) 752 14.3 Developing Economies: Sources of External Finance, 2009–2018 (Billions of Dollars) 753 14.4 Sources of External Financing for Developing Countries, 1990–2008 763 14.5 Global Trends in Armed Conflict, 1946–2017 776 15.1 The Effects of Interest-Rate Ceilings on Credit Allocation 819 Tables 1.1 The 17 Sustainable Development Goals 17 1.2 Global Ambitions: Selected Targets of the Sustainable Development Goals 18 2.1 Classification of Economies by Country Code, Region, and Income, 2018 38 2.2 Comparison of Per Capita GNI in Selected Developing Countries, Canada, the United Kingdom, and the United States, Using Official Exchange-Rate and Purchasing Power Parity Conversions, 2017 44 2.3 Commonality and Diversity: Some Basic Indicators of Health and Education 47 2.4 2018 Human Development Index and its Components for Selected Countries 50 2.5 HDI for Countries with Similar Income Levels 51 2.6 The 12 Most- and Least-Populated Countries and Their Per Capita Income, 2017 55 2.7 Primary School Enrolment and Pupil–Teacher Ratios, 2017 56 2.8 Crude Birth Rates Around the World, 2018 58 A2.1.1 2009 Traditional Human Development Index for 24 Selected Countries (2007 Data) 105 A2.1.2 2009 Human Development Index Variations for Similar Incomes (2007 Data) 106 5.1 Typical Size Distribution of Personal Income in a Developing Country by Income Shares—Quintiles and Deciles 223 5.2 Selected Income Distribution Estimates 241 5.3 Income and Inequality in Selected Countries 244 5.4 Income Poverty Incidence in Selected Countries 246 5.5 Multidimensional Poverty Index for Selected Countries 250 5.6 Indigenous Poverty in Latin America 256 xx Figures and Tables A5.2.1 Income Distribution and Growth in 12 Selected Countries 287 6.1 Estimated World Population Growth 294 6.2 Births Per Woman: Fertility Rate for Selected Countries, 1990 and 2017 298 6.3 Basic Comparisons between Burundi and Rwanda 334 8.1 Returns to Investment in Education by Level, Regional Averages (%) 398 8.2 Some Major Neglected Tropical Diseases 427 9.1 Average Annual Growth Rates of Agriculture, by Region (%) 451 9.2 Labour and Land Productivity in Developed and Developing Countries 461 9.3 Changes in Farm Size and Land Distribution 463 12.1 Structure of Merchandise Exports: Selected Countries, 2017 624 13.1 A Schematic Balance-of-Payments Account 699 13.2 Credits and Debits in the Balance-of-Payments Account 700 13.3 A Hypothetical Traditional Balance-of-Payments Table for a Developing Nation 703 13.4 Before and After the 1980s Debt Crisis: Current Account Balances and Capital Account Net Financial Transfers of Developing Countries, 1978–1990 (Billions of Dollars) 703 13.5 Developing Country Payments Balance on Current Account, 1980–2018 (Billions of Dollars) 709 14.1 Major Remittance-Receiving Developing Countries, by Level and GDP Share, 2018 764 14.2 Official Development Assistance Net Disbursement from Major Donor Countries, 1985, 2002, 2008 and 2016 767 14.3 Official Development Assistance (ODA) by Region, 2017 767 14.4 Key Indicators foe Costa Rica, Guatemala and Honduras 786 15.1 Growth of Developing Country Stock Markets 822 15.2 Comparative Average Levels of Tax Revenue, as a Percentage of GDP 825 15.3 Comparative Composition of Tax Revenue, as a Percentage of GDP 828 Preface Economic Development, Thirteenth Edition, presents the latest thinking in eco- nomic development with the clear and comprehensive approach that has been so well received in both the developed and developing worlds. The pace and scope of economic development continues its rapid, uneven, and sometimes unexpected evolution. This text explains the unprecedented progress that has been made in many parts of the developing world but fully confronts the enormous problems and challenges that remain to be addressed in the years ahead. The text shows the wide diversity across the develop- ing world in their extent of economic development and other characteristics; and the differing positions in the global economy that are held by developing countries. The field of economic development is versatile and has much to contribute regarding these differing scenarios. Thus, the text also underlines common fea- tures that are exhibited by a majority of developing nations, using the insights of the study of economic development. The still relatively small number of coun- tries that have essentially completed the transformation to become developed economies, such as South Korea and Singapore, are also examined as potential models for other developing countries to follow. Both theory and empirical anal- ysis in development economics have made major strides, and the Thirteenth Edition brings these ideas and findings to students. Development economics provides critical insights into how we got to where we are, how great progress has been made in recent years, and why many devel- opment problems remain so difficult to solve. The principles of development economics are also key to the design of successful economic development policy and programs as we look ahead. At the same time, international development is an interdisciplinary subject, in which approaches and insights from anthro- pology, finance, geography, health sciences, political science, psychology, and sociology have had significant influence on the subject, and are considered throughout the text. Some approaches that began as explicit critiques and alter- natives to what were then limits to development economics have become central to its study. For example, behavioural economics and experimental research now play central roles in the field. Legitimate controversies are actively debated in development economics, and so the text presents contending theories and interpretations of evidence, with three goals. The first goal is to ensure that students understand real conditions and institutions across the developing world. The second is to help students develop analytic skills while broadening their perspectives of the wide scope xxi xxii Preface of the field. The third is to provide students with the resources to draw inde- pendent conclusions as they confront development problems, their sometimes ambiguous evidence, and real-life development policy choices—ultimately, to play an informed role in the struggle for economic development and ending extreme poverty. Approach and Organisation of the Text The text’s guiding approaches are the following: 1. To adopt a problem- and policy-oriented approach, because a central objec- tive of the development economics course is to foster a student’s ability to understand contemporary economic challenges of developing countries and to reach independent and informed judgements and policy conclusions about their possible resolution. 2. To teach economic development within the context of problems and potential solutions. These include challenges of absolute poverty, extreme inequalities, coordination failures, credit constraints, rapid population growth, impacts of very rapid urbanisation, persistent public health challenges, environ- mental degradation (from both domestic and climate change sources), rural stagnation, vulnerability to debt burdens and financial crises, recurrent chal- lenges in international trade and instability, low tax revenues, inadequacies of financial markets, civil conflict, and twin challenges of government failure and market failure. When formal models are presented they are used to elucidate real-world development problems. 3. To use the best available data from Africa, Asia, Latin America, and devel- oping Europe and the Middle East, and appropriate theoretical tools both to illuminate common developing-country problems, and to highlight the wide range of development levels and differing challenges across groups of countries. 4. To take a wide-angle view of developing countries, not only as independent nation states, but also in their growing relationships with one another, as well as in their interactions with rich nations in a globalising economy. 5. To consider development in both domestic and international contexts, stressing the increasing interdependence of the world economy in areas such as food, energy, natural resources, technology, information, and financial flows. 6. To provide at least a basic familiarity with research methods. The prob- lem of identifying causality is introduced by way of presenting examples of important research that also serve to build on major themes. There is no assumption that students have taken econometrics or, for that matter, basic regression analysis, but the findings boxes and other material in the text serve as a perfect entrée for instructors with students with sufficient back- ground to examine techniques introduced intuitively, including randomised controlled trials, use of instrumental variables, regression discontinuity design, differencing, and time series methods. These are all introduced in ways in which instructors may ignore the underlying econometric analysis, or build on it in supplemental course components. Preface xxiii 7. To treat the problems of development from an institutional and structural as well as a market perspective, with appropriate modifications of received general economic principles, theories, and policies. It thus attempts to com- bine relevant theory with realistic institutional analyses. Enormous strides have been made in the study of these aspects of economic development in recent years, which is reflected in this thirteenth edition. 8. To consider the economic, social, and institutional problems of underdevel- opment as closely interrelated and requiring coordinated approaches to their solution at the local, national, and international levels. 9. To cover some topics that are not found in other texts on economic devel- opment but that are important from our broader perspective, as part of the text’s commitment to its comprehensive approach. These unique features include growth diagnostics, industrialisation strategy, innovative policies for poverty reduction, the capability approach to well-being, the central role of women, child labour, the crucial role of health, new thinking on the role of cities, the economic character and comparative advantage of non- governmental organisations in economic development, emerging issues in environment and development, financial crises, violent conflict, and microfinance. 10. The in-depth case studies and comparative case studies appearing at the end of each chapter remain features unique to this text. Each chapter’s case study reflects and illustrates specific issues analysed in that chapter in the context of national development or specific policies. At the same time, there are common threads: the quality of institutions is considered in most of the country cases, as are indicators of poverty, inequality, and human development. 11. Boxes are used in a consistent way for two purposes. Findings boxes report on specific research findings; they serve as a vehicle to introduce students to research methods in development economics, as well as to show the con- nection between individual studies and the broader picture of economic development. Policy boxes describe major actors in development policy, including the World Bank and the IMF, and present less formal but essential approaches to policy analysis, covering topics ranging from growth diag- nostics to family planning. 12. To provide balanced coverage of differing and even explicitly opposed per- spectives wherever evidence, interpretations, and analytical frameworks are in contention. Audience and Suggested Ways to Use the Text in Courses with Different Emphases Flexibility. This text provides an introduction to development economics and international development. It is designed for use in courses in econom- ics and other social sciences that focus on the economies of Africa, Asia, and Latin America, as well as developing Europe and the Middle East. It is written for students who have had some basic training in economics xxiv Preface and for those with little formal economics background beyond principles (first micro- and macroeconomics courses). Essential concepts of economics that are relevant to understanding development problems are highlighted in boldface and explained at appropriate points throughout the text, with glossary terms defined in the margins and also collected together at the end of the book in a detailed glossary. Thus, the text should be of special value in undergraduate development courses that attract students from a variety of disciplines. It provides in-depth coverage of new institutional economic analysis and describes features of developing economies that cannot be taken for granted with a majority of students. Yet the material is sufficiently broad in scope and rigorous in coverage to satisfy any undergraduate and some graduate economics requirements in the field of development. For example, foundational models and empirical methods are introduced in several chapters and in about a dozen findings boxes. This text has been widely used, in courses taking both relatively qualitative and more quantitative approaches to the study of economic development and emphasising a variety of themes, including human development. The text features a 15-chapter structure, convenient for use in a comprehen- sive course and corresponding well to a 15-week semester but with enough breadth to easily form the basis for a two-semester sequence. The chapters are now further subdivided, making it easier to use the text in targeted ways. To give one example, some instructors have paired the sections on informal finance and microfinance (15.3) with Chapter 5 on poverty. Similarly, some have paired civil conflict (14.5) with poverty. With further subdivisions of sections, additional selections and orderings are possible. Courses with a qualitative focus. For qualitatively oriented courses, with an institutional focus and using fewer economic models, one or more chap- ters or subsections may be omitted, while placing primary emphasis on Chapters 1, 2, 5, 6, 8, and 9, plus parts of Chapters 7 and 10, and other selected sections, according to topics covered. The text is structured so that the limited number of graphical models found in those chapters may be omitted without losing the thread, while the intuition behind the models is explained in detail. Courses with a more analytic and methods focus. These courses would focus more on the growth and development theories in Chapter 3 (including appendices such as 3.3 on endogenous growth) and Chapter 4, and highlight and develop some of the core models of the text, including poverty and inequality measurement and analysis in Chapter 5, microeconomics of fer- tility and relationships between population growth and economic growth in Chapter 6, migration models in Chapter 7, human capital theory, including the child labour model and empirics in Chapter 8, sharecropping models in Chapter 9, environmental economics models in Chapter 10, tools such as Preface xxv net present benefit analysis in Chapters 8 and 11; and multisector models along with political economy analysis in Chapter 11, and trade models in Chapter 12. Courses that also have an empirical methods focus. Regarding empirical methods, these courses would expand on material introduced in some of the findings boxes and subsections into more detailed treatments of methods topics, including randomised controlled trials (Boxes 4.2, 8.4, 8.5, 8.6, 8.9, 11.3, 12.2, and 15.2, Case Study 8), use of instrumental variables (Box 2.3 and Section 2.7), regression discontinuity (Boxes 2.2, 2.4), differencing (Box 9.2), and time series methods (Box 12.1). The introduction of several of the studies provides an excellent jumping-off point to using supplementary materials for examining methods in detail. Courses emphasizing human development and poverty alleviation. The thirteenth edition can be used for a course with a human development focus. This would typically include the sections on Amartya Sen’s capabilities approach, the new section on the Sustainable Development Goals and the history of the MDGs in Chapter 1; a close and in-depth examination of the section on societal conflict in Chapter 14, the discussion of informal financial arrangements including ROSCAs, microfinance institutions in Chapter 15; and a close and in-depth examination of Chapters 2 and 5. Sections on pop- ulation policy in Chapter 6; diseases of poverty and problems of illiteracy, low schooling, and child labour in Chapter 8; problems facing people in traditional agriculture in Chapter 9; relationships between poverty and envi- ronmental degradation in Chapter 10; and roles of nongovernmental organ- isations (NGOs) in Chapter 11; the section on societal conflict in Chapter 14; and discussion of informal financial arrangements including ROSCAs, microfinance institutions in Chapter 15, as be likely highlights of this course. Courses emphasising macro and international topics. International and macro aspects of economic development could emphasise Sections 2.6 and 2.7 on convergence, and long-run growth and sources of comparative development; Chapter 3 on theories of growth (including the three detailed appendixes to that chapter); Chapter 4 on growth and multiple-equilibrium models; and Chapters 12 to 15 on international trade, international finance, debt and financial crises, direct foreign investment, aid, central banking, and domestic finance. The text also covers other aspects of the international context for development, including the in-depth cases on the 1980s debt crisis and the 2000s financial crisis in Chapter 13; implications of the rapid pace of globalisation and the rise of China (Chapter 12 and case studies of China (Chapter 4), India (Chapter 5), and Brazil (Chapter 13); the continuing struggle for more progress in sub-Saharan Africa, and controversies over debt relief and foreign aid (Chapter 14). Broad two-semester course using supplemental readings. Many of the chapters contain enough material for several class sessions, when their top- ics are covered in an in-depth manner, making the text also suitable for a year-long course or high-credit option. The endnotes and sources offer many starting points for such extensions. xxvi Preface Summary of Key Material New or Expanded for This Edition In addition to a thorough updating and reporting the most recently available data, the Thirteenth Edition includes significant new material, including: A new presentation of the Sustainable Development Goals, which also pro- vides a brief history of the MDGs, and progress and challenges in imple- mentation (Section 1.7). How levels of living differ around the world, with an exploration of the household level—as distinct from country averages, inspired by the late Hans Rosling (Section 1.2). Newly added graphs and statistics on the great divergence in incomes over 250 years, and new evidence of a recent shift toward (re-)convergence (Section 2.5). Expanded section on growth diagnostics, including new material on growth diagnostics in practice, with an example of “inclusive” growth diagnostics applied to Bangladesh (Section 4.7 and Box 4.4). New material on how insights from behavioural economics and findings using experimental behavioural economics methods have been used to better understand and address poverty, physical health, and mental health problems (Section 5.8.6 and Box 8.9). A new section on labour that features material on characteristics of inclusive development in addition to the subsection on the functional distribution of income (Section 5.7). A new section discussing policy for still-developing middle-income coun- tries facing population declines (Section 6.6.4). A new section on agricultural extension that also serves to introduce the case study on extension for women farmers in Kenya and Uganda (Section 9.2.3 and Case Study 9) An expanded section on adaptation to climate change, which also considers the extent to which adaptation and resilience assistance differs from conven- tional development assistance (Section 10.2.3 and Box 10.4). The section on the new firm-level international trade approach features experimental findings on the effects of exporting on firm performance (Section 12.6.2 and Box 12.2). A restructuring of the presentation of much of Chapter 13 on debt and finan- cial crises as case studies of major events that draw out more general prin- ciples (Sections 13.4 and 13.5). The introduction of ROSCAs as a potentially beneficial financial arrange- ment is set out in a short subsection (Section 15.3.2). Case studies and findings boxes are described in the next section. Preface xxvii In-Depth End of Chapter Case Studies There is a strong focus on in-depth case studies, with new end of chapter cases and major updates of existing studies. A majority of them are comparative case studies. The end of chapter Case Studies has been one of the most popular features of the text. These cases apply the general findings in development economics as discussed in the chapter to interpreting experiences in specific countries, and in some cases specific programs. The cases address important country topics and development experiences. Three in-depth cases look at the economic development successes and challenges of a single major developing country: China, India, and Brazil. Single-Country Case Studies The Case Study on China (Chapter 4, pages 202–214) has been substantially expanded in scope to provide a comprehensive view of the major argued sources of success and serious challenges going for- ward advanced in the scholarly literature. There is an entirely new full length case study of economic development in India (Chapter 5, pages 272–279), that offers a similarly comprehensive examination of major sources of success and challenges going forward. The case study of Brazil (Chapter 13, pages 737–744) has been extensively revised and updated and now provides, among other things, consideration of the potential for middle-income traps and elements for escaping them. In addition, there is one specialized single-country case study, on the Progresa-Oportunidades-Prospera program in Mexico, which has been updated for this edition. Comparative cases The country comparative cases have received strong inter- est and active in-class use. This feature is now expanded further, so that there are 11 comparative studies (at the ends of Chapters 1, 2, 3, 6, 7, 9, 10, 11, 12, 14, and 15). Nine major end of chapter cases assess successes and challenges in overall national economic development experiences in two countries selected for the relevance of addressing them in comparative perspective and in the context of the chapter. There is a new comparative case study on Burundi and Rwanda (Chapter 6, pages 332–336), which has particular emphasis on demography, as well as institutions. The updated Pakistan and Bangladesh comparative study now follows the first chapter (Chapter 1, pages 24–30); and the updated Ghana and Côte d’Ivoire case now follows the second chapter (Chapter 2, pages 84–91). The Chapter 3 case is South Korea and Argentina (pages 140–143). The Domin- ican Republic and Haiti – two countries on one island – are examined in com- parative perspective with a special emphasis on environment and development (Chapter 10, pages 548–552). What had been separate case studies of South Korea and Taiwan are integrated into one comparative case, allowing ready examination of differences as well as similarities between these two pioneer- ing experiences; this new comparative case appears at the end of Chapter 12 (pages 676–688). The 3-way comparative study of Costa Rica, Guatemala, and Honduras, new to the previous edition, is updated and found at the end of Chapter 14 (pages 785–791). xxviii Preface The textbook concludes on an optimistic note, with a new comparative case study of Mauritius and Botswana, two of Africa’s most remarkable success stories, examining how they are managing to overcome successive challenges that stymied other countries (Chapter 15, pages 836–844). Sector Cases Two comparative cases focus on specific sectors. The first sector case examines agricultural extension, which is newly comparative, addressing Uganda as well as Kenya (Chapter 9, pages 489–495). The other sector case is a comparison within one country, Bangladesh, that brings together and syn- thesizes the roles of two differently structured and focused major NGOs that have made important innovations and have been widely influential, BRAC and Grameen (Chapter 11, pages 599–608). Finally, note that the case on the one-child policy in China is now found in streamlined form in Box 6.3. A brief summary of the case study of family plan- ning policy in India is now found in a section of the new Chapter 5 case study on economic development of India. Supplementary Materials The Thirteenth Edition comes with PowerPoint slides for each chapter, which have been fully updated for this edition. The text is further supplemented with an Instructor’s Manual by Chris Marme of Augustana College. It has been thoroughly revised and updated to reflect changes to the Thirteenth Edition. Both the PowerPoint slides and the Instructor’s Manual can also be downloaded from the Instructor’s Resource Center at go.pearson.com/uk/he/resources. Acknowledgements Our gratitude to the many individuals who have helped shape this new edition cannot adequately be conveyed in a few sentences. However, we must record our immense indebtedness to the hundreds of former students and contempo- rary colleagues who took the time and trouble during the past several years to write or speak to us about the ways in which this text could be further im- proved. We are likewise indebted to a great number of friends (far too many to mention individually) in both the developing world and the developed world who have directly and indirectly helped shape our ideas about development economics and how an economic development text should be structured. The authors would like to thank colleagues and students in both developing and developed countries for their probing and challenging questions. We are also very appreciative of the advice, criticisms, and suggestions of the many reviewers, both in the United States and abroad, who provided detailed and insightful comments for the Eleventh, Twelfth, and Thirteenth Editions. Our thanks also go to the staff at Pearson. Their input has strengthened the book in many ways and has been much appreciated. Preface xxix Finally, to his lovely wife, Donna Renée, Michael Todaro wishes to express great thanks for typing the entire First Edition manuscript and for providing the spiritual and intellectual inspiration to persevere under difficult circum- stances. He reaffirms here his eternal devotion to her for always being there to help him maintain a proper perspective on life and living and, through her own creative and artistic talents, to inspire him to think in original and some- times unconventional ways about the global problems of human development. Stephen Smith would like to thank his wonderful wife, Renee, and his children, Martin and Helena, for putting up with the many working Saturdays that went into the revision of this text. Michael P. Todaro Stephen C. Smith Publisher’s acknowledgements Text credits: 2 Elsevier: Robert E. Lucas, 1988. “On the Mechanics of Economic Development.” Journal of Monetary Economics, Vol. 22, Issue 1, page 5; 10 Inter-American Development Bank: Amartya Sen, Development Thinking at the Beginning of the 21st Century. In Economic and Social Development in the XXI Century. Emmerij, Luis (Ed.) Inter-American Development Bank and Johns Hopkins University Press, Washington, D.C.; 11 Adam Smith: Adam Smith’s phrase; 11 Elsevier: Sen, Amartya. (1985). Commodities and Capabilities, (Amsterdam: Elsevier, 1985) p. 12; 12 Oxford University Press: Sen, Amartya. (1999). Commodities and Capabilities, Oxford University Press. p. 25–26; 12 Oxford University Press: Sen, Amartya. (1999). Commodities and Capabilities, Oxford University Press. p. 10–11; 12 Oxford University Press: Sen, Amartya. (1999). Commodities and Capabilities, Oxford University Press. p. 13; 13 Simon & Schuster: Goulet, Denis. (1971). The Cruel Choice: A New Concept in the Theory of Development. New York: Atheneum; 13 Allen & Unwin: Lewis, W. Arthur. (1963). “Is economic growth desirable?” in The Theory of Economic Growth. London: Allen & Unwin, p. 420; 14 Richard Layard: Adapted from Layard, Richard. (2005). Happiness: Lessons From A New Science. Foreign Affairs. 84. 10.2307/20031793.; 15, 17, 18 United Nations: Sustainable Development Goals Resolution adopted by the General Assembly on 25 September 2015. United Nation; 25, 29 Princeton University Press: Easterly, William. (2003). “The political economy of growth without development: A case study of Pakistan.” in Dani Rodrik ed. In Search of Prosperity: Analytic Narratives on Economic Growth, Princeton, N.J.: Princeton University Press; 29 Ishrat Husain: Quote by Ishrat Husain; 40 The World Bank Group: The world by income Retrieved from http://datatopics.worldbank.org/world- development-indicators/images/figures-png/world-by-income-sdg-atlas-2018. pdf; 49 United Nations: Table 1, p. 198–201 Human Development Report 2016; 50 United Nations: Table 1, p. 198–201 Human Development Report 2016; 51 United Nations: Human Development Report Office, UNDP – Human Development Report, 2016, p. 27; 57 Population Reference Bureau: Population Reference Bureau: Births per 1,000 population; 65 John Wiley & Sons: Dell, M. xxx Preface “The Persistent Effects of Peru’s mining mita.” Econometrica 78: no. 6 (2010): 1863–1903; 75 Cambridge University Press: North, C. Douglass. (1990). Institutions, Institutional Change and Economic Performance. New York: Cambridge University Press; 78 Elsevier: Easterly, William. (2007). Inequality Does Cause Underdevelopment: Insights from a New Instrument. Journal of Development Economics. 84. 755–776. 10.1016/j.jdeveco.2006.11.002.; 81 Dani Rodrik: Rodrik, Dani. “Institutions for high-quality growth: What they are and how to acquire them,” Studies in Comparative International Development 35, No. 3–31 (2000), DOI: 10.1007/BF02699764, p5; 87 John Mukum Mbaku: John Mukum Mbaku, The Brookings Institution; 105, 106 United Nations Development Programme: Data from United Nations Development Programme, Human Development Report, 2009, tab. 1; 107 United Nations Development Programme: From Human Development Report, 2005. United Nations Development Programme; 110 University of Cambridge: Thomas, Brinley. (1954). Migration and Economic Growth: A Study of Great Britain and the Atlantic Economy. (London: Cambridge University Press), p. viii; 118, 141 Cambridge University Press: Rostow, Walt Whitman. (1990). The Stages of Economic Growth: A Non-Communist Manifesto, 3rd Edition. Cambridge University Press; 130 Penguin Random House LLC: Theotonio Dos Santos. “The crisis of development theory and the problem of dependence in Latin America,” in Underdevelopment and Development, by Henry Bernstein (Harmondsworth, England: Penguin, 1973), p. 57–80; 131 Libreria Editrice Vaticana: Pope John Paul II. Church and Social Concern: The Encyclical Letter Sollicitudo rei socialis, Aug. 1, 1988; 171 John Wiley & Sons: Kaushik Basu and Jorgen Weibull, “Punctuality: A cultural trait as equilibrium,” in Richard Arnott et al. (eds), Economics for an Imperfect World: Essays in Honor of Joseph Stiglitz, (Cambridge, M.A.: MIT Press, 2003); 171 Condé Nast: Surowiecki, James. (2004) “Punctuality pays,” March 28, 2004, The New Yorker; 171 The Washington Post: Wilson, Scott. (2003). In Ecuador, a timeout for tardiness, November 4, 2003, The Washington Post; 172 Oxford University Press: Björkman, Martina and Svensson, Jakob. (2009). Power to the People: Evidence from a Randomized Field Experiment on Community-Based Monitoring in Uganda, May 1, 2009, Quarterly Journal of Economics, 124 (2), pp. 735–769; 191 Oxford University Press: Kremer, Michael. (1993). “The O-ring theory of economic development,” Quarterly Journal of Economics 108: 551–575.p. 574. The multiple equilibrium analysis is found on pp. 564–571; 193 Ricardo Hausmann: Hausmann, Ricardo, Rodrik, Dani and Velasco, Andrés “Getting the diagnosis right,” Finance and Development 43 (2006), available at http://www.inf.org/external/pubs/ft/fandd/2006/03/hausmann. htm. Reprinted with permission; 196 Ricardo Hausmann: Ricardo Hausmann, “In search of the chains that hold Brazil back,” October 31, 2008, http://papers. ssrn.com/sol3/papers.cfm?abstract_id=1338262; 198 US Agency for International Development: USAID-UKAID: Bangladesh Inclusive Growth Diagnostic, June 2014:https://www.usaid.gov/sites/default/files/ documents/1865/Bangladesh%20Inclusive%20Growth%20Diagnostic%20-%20 Final%20Report.pdf; 201 The World Bank Group: Karla Hoff, “Beyond Rosenstein-Rodan: The modern theory of coordination problems in development,” in Annual World Bank Conference on Development Economics, 1999 (Washington, D.C.: World Bank, 2000), p. 146; 205 Deng Xiaoping: Quote by Deng Xiaoping; 206 Princeton University Press: Qian, Yingyi. “How reform worked in China.” In In Search of Prosperity: Analytic Narratives on Economic Preface xxxi Growth, ed. Dani Rodrik. Princeton, N.J.: Princeton University Press, 2003; 207 China Center for Economic Research: Yiping, Huang, and Jiang Tingsong. “What does the Lewis turning point mean for China? A computable general equilibrium analysis.” China Center for Economic Research Working Paper No. E2010005, March 2010; 211 Penguin Random House LLC: Acemoglu, D. and Robinson J., Why Nations Fail: The Origins of Power, Prosperity, and Poverty. New York: Crown Business, 2012; 241 The World Bank Group: Based on World Bank, World Development Indicators, 2010. (Washington, D.C.: World Bank, 2010), tab. 2.9; 242, 243 MIT Press: Gary S. Fields. (2001). Distribution and Development: A New Look at the Developing World (Cambridge, M.A.: MIT Press), ch. 3, p. 46. © 2001 Massachusetts Institute of Technology, by permission of The MIT Press; 244 The World Bank Group: Data from World Bank, World Development Indicator Tables, 2018 (Washington, D.C.: World Bank, 2018), tabs. WV.1 and 1.3, accessed 16 June 2019; 245 The World Bank Group: Figure drawn using data from PovcalNet/World Bank; data downloaded 13 February 2014 from http:// iresearch.worldbank.org/PovcalNet/index.htm?1; 246 The World Bank Group: Data from World Bank, “PovcalNet,” http://iresearch.worldbank.org/ PovcalNet/povOnDemand.aspx. All data are the most recent as of date accessed: 15 June 2019; 250 United Nations Development Programme: UNDP, Human Development Report Statistical Update, 2018, Table 6; 251 International Food Policy Research Institute: International Food Policy Research Institute, The World’s Most Deprived (Washington: D.C.: IFPRI, 2007); 271 United Nations Development Programme: James Speth, “Foreword,” in United Nations Development Programme, Human Development Report, 1997, p. iii; 274 The World Bank Group: Doing Business Report 2019. Washington, DC: World Bank; 287 The World Bank Group: International Bank for Reconstruction and Development/ The World Bank: Redistribution with Growth: An Approach to Policy. Copyright © 1974 by The World Bank. Reprinted with permission; 295 Population Reference Bureau: Population Reference Bureau World Population Data Sheet 2012, page 4; data are drawn from United Nations Population Division, World Population Prospects: The 2010 Revision (2011), medium-variant estimates; 297 Worldmapper: Worldmapper Retrieved from https://worldmapper.org/maps/ population-year-2018; 297 Population Reference Bureau: Data from Population Reference Bureau, World Population DataSheet, 2010; 298 The World Bank Group: World Development Indicators, Table 2.14, 2018, accessed 23 May 2019. Abbreviations: LMC—Lower-middle-income country; UMC— Upper-middle-income country; 301 The World Bank Group: 2018 Atlas of SDGs (World Bank, 2018), Section 3, p. 10: http://documents.worldbank.org/curated/ en/590681527864542864/Atlas-of-Sustainable-Development-Goals-2018-World- Development-Indicators; 308 Elsevier: Kaivan Munshi and Jacques Myaux, “Social norms and the fertility transition,” Journal of Development Economics 80 (2006): 1–38; 323 John Wiley & Sons: William Easterly made the very basic argument in 1999 that “population growth does not vary enough across countries to explain variations in per capita growth. GDP per capita growth varies between −2 and +7 percent for all countries between 1960 and 1992. Population growth varies only between 1 and 4 percent.” Easterly, The Elusive Quest for Growth (Cambridge, Mass.: MIT Press, 1999), p. 92; 324 Overseas Development Council: Robert H. Cassen, Population Policy: A New Consensus (Washington, D.C: Overseas Development Council, 1994); 327 Elsevier: Jacqueline Darroch and Susheela xxxii Preface Singh. “Trends in contraceptive need and use in developing countries in 2003, 2008, and 2012: An analysis of national surveys.” The Lancet 381 (May 18, 2013): 1756–1762; 329 Elsevier: United Nations, International Conference, para. 4.1. See also Nancy Folbre, “Engendering economics: New perspectives on women, work, and demographic change,” in Proceedings of the World Bank Annual Conference on Development Economics, 1995, eds. Michael Bruno and Boris Pleskovic (Washington, D.C.: World Bank, 1996); 334 Springer Nature: Muhoza, Dieudonne Ndaruhuye and Pierre Claver Rutayisire. (2016). “Measuring the success of family planning initiatives in Rwanda: a multivariate decomposition analysis,” Journal of Population Research. Volume 33, Issue 4, pp. 361–377; 334 IntraHealth International: Sempabwa, Emile. (2017). “Repositioning Family Planning in Rwanda: How a taboo topic has become priority number one, and a success story.” IntraHealth International; 342 United Nations: United Nations, (2011), “Africa and Asia to lead urban population growth in the next four decades,”press release, http://esa.un.org/unup/pdf/WUP2011_Press-Release. pdf. Reproduced by permission of United Nations Publications; 343 United Nations: The United Nations is the author of the original material. World Urbanization Prospects: The 2009 Revision, United Nations; 345 United Nations: Data drawn from United Nations Population Division, World Urbanisation Prospects: The 2011 Revision (New York: United Nations, 2011), at http://esa. un.org/unup/pdf/WUP2011_Highlights.pdf; 346 United Nations: United Nations, World Urbanisation Prospects, The 2018 Revision; and Daniel Hoornweg and Kevin Pope, “Population predictions for the world’s largest cities in the 21st century.” Environment and Urbanization, Volume: 29 issue: 1, page(s): 195–216, 2017; 346 United Nations: United Nations Population Division, World Urbanisation Prospects: The 2011 Revision (New York: United Nations, 2011), http://esa.un.org/unup/pdf/WUP2011_Highlights.pdf; 347 United Nations: World Urbanization Prospects, The 2011 Revision, Department of Economic and Social Affairs, Population Division; 350 Elsevier: Khalid Nadvi. (1999). “Collective efficiency and collective failure: The response of the Sialkot Surgical Instrument Cluster to global quality pressures,” World Development 27 (1999): 1605–1626; 351 Elsevier: Fleisher, Belton, Dinghuan Hu, William McGuire, and Xiaobo Zhang. (2010) “The evolution of an industrial cluster in China.” China Economic Review 21, No. 3 (September 2010): 456–469; 351 International Food Policy Research Institute: Ruan, Jianqing and Xiaobo Zhang. “Finance and cluster-based industrial development in China.” Economic Development and Cultural Change 58 (2009): 143–164; 351 Elsevier: Long, Cheryl and Xiaobo Zhang. (2009). “Cluster-based industrialisation in China: Financing and performance.” IFPRI Discussion Paper No. 937. Washington, D.C.: International Food Policy Research Institute; 352 Elsevier: Dorothy McCormick, (1999). “African enterprise and industrialisation: Theory and reality,” in ibid., pp. 1531–1551; 357 Oxford University Press: Data from Alberto F. Ades and Edward L. Glaeser, “Trade and circuses: Explaining urban giants,” Quarterly Journal of Economics 110 (1995): 196. Copyright © 1995 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology; 360 UN-Habitat: UN-Habitat, “State of the World’s Cities, 2001,” http://www.unchs.org/Istanbul+5/statereport.htm; 362 UN-Habitat: UN-Habitat noted this for its State of Women in Cities 2012/2013, http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3457; 365 International Bank for Reconstruction and Development: World Development Preface xxxiii Report, 1999–2000, “Internal migration and urbanisation: Recent contributions and new evidence,” by Robert E. B. Lucas; 376 The World Bank Group: Martin Ravallion, Shaohua Chen, and Prem Sangraula, “New evidence on the urbanisation of global poverty,” World Bank Research Working Paper 4199, 2008; 386 Oxford University Press: World Bank, World Development Report, 1999–2000 (New York: Oxford University Press, 2000), ch. 6; 394 University of Wisconsin Press: Based on Paul Glewwe, “Why does mother’s schooling raise child health in developing countries? Evidence from Morocco,” Journal of Human Resources 34 (1999): 124–159; 394 World Health Organization: World Health Organization, World Health Report, 2000 (Geneva: World Health Organization, 2000), p. 4; 395 John Wiley & Sons: Edward Miguel and Michael Kremer, “Worms: Identifying impact on education and health in the presence of treatment externalities,” Econometrica 72 (2004): 159–217; 397 The World Bank Group: International Bank for Reconstruction and Development/The World Bank: The Profitability of Investment in Education: Concepts & Methods by George Psacharopoulos, 1995; 398 Taylor & Francis Group: George G. Psacharopoulos and Harry A. Patrinos, “Returns to investment in education: A further update,” Education Economics 12, No. 2 (August 2004), tab. 1; 403 American Economic Association: From Kaushik Basu, “Child labour: Cause, consequence, and cure, with remarks on international labour standards,” Journal of Economic Literature 37 (1999): 1101. Reprinted with the permission of the author and the American Economic Association; 405 Oxford University Press: Sarah Baird, Craig McIntosh, and Berk Ozler, “Cash or condition? Evidence from a cash transfer experiment,” Quarterly Journal of Economics 126, No. 4 (2011): 1709–1753; 406 United Nations: ILO, 2010 report, p. 50; data from UNICEF, The State of the World’s Children, 2008: Child Survival (New York, United Nations, 2007), p. 140; 406 International Initiative to End Child Labour: Child Labor – An Overview, International Initiative to End Child Labour. https://endchildlabour.net/ child-labour-an-overview/2/; 408 UNESCO Institute of statistics: Literacy Rates Continue to Rise from One Generation to the Next, Fact Sheet No. 45 September 2017 FS/2017/LIT/45, UNSECO Institute of statistics; 410 United Nations: World Population Prospects, The 2017 Revision, Department of Economic and Social Affairs, Population Division ; 414 Education Policy and Data Center: EPDC Spotlight on India Retrieved from https://www.epdc.org/ epdc-data-points/epdc-spotlight-india; 415 Pratham Education Foundation: Pratham Education Foundation’s motto; 415 Oxford University Press: Abhijit V. Banerjee, Shawn Cole, Esther Duflo, and Leigh Linden, “Remedying education: Evidence from two randomised experiments in India,” Quarterly Journal of Economics 122 (2007): 1235–1264; 416 World Health Organization: World Health Organization, “Frequently asked questions,” https://www.who.int/about/ who-we-are/frequently-asked-questions; 417 World Health Organization: Global Health Observatory data repository, World Health Organization, 2019. http://apps.who.int/gho/data/view.main.CHILDUNDERWEIGHTv; 418 United Nations: From Millennium Development Goals Report, 2010, p. 14. Reprinted with permission from the United Nations; 419 World Health Organization: World Health Organization; 421 World Health Organization: World Health Organization 2018; 425 MIT Press: Michael Kremer, “Creating markets for new vaccines: Part I: Rationale,” in Innovation Policy and the Economy, vol. 1, eds. Adam B. Jaffe, Josh Lerner, and Scott Stern (Cambridge, Mass: MIT xxxiv Preface Press, 2001); 430, 431 American Economic Association: “Health, nutrition, and economic development,” by John Strauss and Duncan Thomas, Journal of Economic Literature 36 (1998): 766–817; 430 World Health Organization: The World Health Report, Health Systems: Improving Performance 2000; 432 World Health Organization: The World Health Report, Health Systems: Improving Performance 2000; 432 Oxford University Press: World Development Report, Published for the World Bank, Oxford University Press, 1993, p. viii; 433 World Health Organization: World Health Organization, World Health Report, 2000. For a review of public health successes in developing countries, see Ruth Levine and Molly Kinder, Millions Saved: Proven Successes in Public Health (Washington, D.C.: Centre for Global Development, 2004); 448 McGraw-Hill Education: Simon Kuznets. (1964).“Economic growth and the contribution of agriculture.” in Agriculture in Economic Development, eds. C. K. Eicher and L. W. Witt (New York: McGraw-Hill); 451, 452, 460 The World Bank Group: International Bank for Reconstruction and Development/World Bank, World Development Report, 2008; 451 International Food Policy Research Institute: IFPRI (International Food Policy Research Institute). 2013. ‘Global Food Policy Report,’ Table 1. Washington, DC; 456 The World Bank Group: Based on International Food Policy Research Institute, 2012 Global Food Policy Report, p. 90 (Washington, D.C.: IFPRI, 2013); downloaded at: http://www.ifpri.org/sites/default/files/publications/ gfpr2012.pdf; 463 The World Bank Group: World Development Report, 2008: Agriculture and Development by World Bank; 465 Penguin Random House LLC: Myrdal, Gunnar. (1968). Asian Drama: an inquiry into the poverty of nations, Volume 1, (New York: Pantheon, 1968), pp. 1033–1052; 465, 466 Penguin Random House LLC: Myrdal, Gunnar. (1968) Asian Drama: an inquiry into the poverty of nations, Volume 1, (New York: Pantheon, 1968), pp. 1035; 480 Oxford University Press: Pranab K. Bardhan and Christopher Udry, Development Microeconomics (New York: Oxford University Press, 1999), p. 111; 482 American Economic Association: Based on Timothy G. Conley and Christopher R. Udry, “Learning about a new technology: Pineapple in Ghana,” American Economic Review 100 (2010): 35–69. Copyright © 2010 by the American Economic Association. Used with permission; 485 The World Bank Group: World Development Report, 2008, p. 338; 487 Food and Agriculture Organisation: United Nations Food and Agriculture Organisation, “Land reform: Land settlement and cooperatives,” 2007, http://www.fao.org/sd/Ltdirect/landrF.htm. For the seminal analysis see Myrdal, Gunnar, “The equality issue in world development,” in Nobel Lectures, Economics, 1969–1980, ed. Assar Lindbeck (Singapore: World Scientific Publishing, 1992); 491 The World Bank Group: “The impact of T&V extension in Africa: The experience of Kenya and Burkina Faso.” World Bank Research Observer 12 (1997): 183–201; 492 United Nations Population Fund: UNFPA ANNUAL REPORT 2015; 492 The World Bank Group: World Bank agricultural extension projects in Kenya – an impact evaluation. Washington, D.C.: World Bank, 1999; 492 The World Bank Group: World Bank. (1999). “Agricultural extension: The Kenya experience.” Précis, Winter; 493 UNESCO: Maathai, Wangari. (1992) “Kenya’s Green Belt Movement, ecological movement headed by women.” UNESCO Courier, March; 505 Oxford University Press: World Commission on Environment and Development, Our Common Future (New York: Oxford University Press, 1987), p. 4; 505 The World Bank Group: David W. Pearce and Jeremy J. Warford, World without End: Economics, Preface xxxv Environment, and Sustainable Development—A Summary (Washington, D.C.: World Bank, 1993), p. 2; 517 Crown Copyright: Stern Review: The Economics of Climate Change 2006; 518 United Nations Development Programme: Human Development Report 2011; 519 Cambridge University Press: Lim, Bo. (2004) Adaptation Policy Frameworks For Climate Change: Developing strategies, policies and measures, UNDP, Cambridge University Press; 523 United Nations Framework Convention on Climate Change: United Nations Framework Convention on Climate Change, National Adaptation Programmes of Action (NAPAs) page, https://unfccc.int/national_reports/napa/items/2719.php; 529 Princeton University Press: Ostrom, Elinor. (2005). Understanding Institutional Diversity. Princeton, N.J.: Princeton University Press. © 2005 by Princeton University Press. Reprinted by permission of Princeton University Press; 548 United Nations Development Programme: The United Nations Development Programme (UNDP) 2004; 548 Penguin Random House LLC: Diamond, Jared. (2005). Collapse: How Societies Choose to Fail or Succeed. New York: Penguin Books; 550 United Nations Development Programme: Human Development Report, 2007–2008, UNDP; 557 American Economic Association: Ostrom, Elinor. (2009). “Beyond markets and states: Polycentric governance and complex economic systems,” American Economic Review 100, (2010): 641; 570 Oxford University Press: Tony Killick. (1976). “Possibilities of development planning, ”Oxford Economic Papers 41: 163–164; 576 American Economic Association: Rodrik, Dani. (1996). ‘Understanding economic policy reform,’ Journal of Economic Literature, 34: 17. Reprinted with permission from the American Economic Association and courtesy of Dani Rodrik; 581 Center for Systemic Peace: Monty G. Marshall and Benjamin R. Cole, Global Report 2009: Conflict, Governance, and State Fragility (Vienna, Va.: Center for Global Policy and Systemic Peace) 2009, p. 11. Reprinted with permission from the Center for Global Policy and Systemic Peace; 582 American Economic Association: Rodrik, D. (1996). Understanding Economic Policy Reform. Journal of Economic Literature, 34(1), 9–41. Retrieved from www. jstor.org/stable/2729408; 582 American Economic Association: North, D. (1994). Economic performance through time. The American Economic Review, 84(3), 359–368. Retrieved from www.jstor.org/stable/2118057; 582 Cambridge University Press: Douglass C. North.(1990). Institutions, Institutional Change, and Economic Performance (New York: Cambridge University Press), p. 54; 585 Springer Nature: De Haan, J. and Siermann, C. (1996). New evidence on the relationship between democracy and economic growth. Public Choice, 86(1/2), 175–198. Retrieved from www.jstor.org/stable/30027075; 585 Oxford University Press: United Nations Development Programme, Human Development Report, 2003 (New York: Oxford University Press, 2003); 586 Elsevier: Birchall, Johnston and Simmons, Richard. (2008). “The role of co-operatives in poverty reduction: Network perspectives, Journal of Socio-Economics 37, No. 6 (2008): 2131–2140; 591 Springer Nature: This diagram appeared in Jennifer Brinkerhoff, Stephen C. Smith and Hildy Teegen, “Beyond the ‘Non’: The Strategic Space for NGOs in Development,” in NGOs and the Millennium Development Goals: Citizen Action to Reduce Poverty, Brinkerhoff, Smith and Teegen, eds. New York: Palgrave Macmillan, 2007, pages 53–80; 594 The World Bank Group: World Development Report, 2000–2001: Attacking Poverty, by World Bank, p. 102, fig. 6.2. Copyright © 2000 by World Bank. Reproduced with permission; 595 The World Bank Group: World Development Report, 2000–2001: Attacking Poverty, by World Bank, p. 103, xxxvi Preface fig. 6.3. Copyright © 2000 by World Bank. Reproduced with permission; 598 Elsevier: Victoria J. Michener. (1998). “The participatory approach: Contradiction and cooption in Burkina Faso,” World Development 26 (1998): 2105–2118; 601 BRAC: BRAC (2019) http://www.brac.net; 602 Lynne Rienner Publishers: Smillie, Ian. (2009). Freedom from Want: The Remarkable Success Story of BRAC, the Global Grassroots Organisation That’s Winning the Fight against Poverty. Bloomfield, Conn.: Kumarian Press; 603 Public Affairs: Yunus, Muhammad, and Alan Jolis. (1999). Banker to the Poor: Micro-Lending and the Battle against World Poverty. New York: Public Affairs; 606 Muhammad Yunus: Yunus, Muhammad. Grameen II. Dhaka, Bangladesh: Grameen Bank, 2001. Speech and interview at the World Bank, October 4, 1995; 616 Adam Smith: Quote by Adam Smith, 1776; 616 Public Affairs: Yunus, Muhammad. (2008). Creating a World without Poverty: Social Business and the Future of Capitalism (New York: Public Affairs), p. 5; 619 MIT Press: Harvey, D., Kellard, N., Madsen, J., and Wohar, M. (2010). THE PREBISCH-SINGER HYPOTHESIS: FOUR CENTURIES OF EVIDENCE. The Review of Economics and Statistics, 92(2), 367–377. Retrieved from www.jstor. org/stable/27867542; 624 The World Bank Group: World Bank, World Development Indicators, (2013), Table 4.4, at: http://wdi.worldbank.org/ table/4.4, accessed 18 February 2014; 627 MIT Press: Based on Harvey, D., Kellard, N., Madsen, J., & Wohar, M. (2010). The Prebisch-Singer hypothesis: Four centuries of evidence. The Review of Economics and Statistics, 92(2), 367–377. Retrieved from www.jstor.org/stable/27867542; 636 The World Bank Group: Manmohan Singh, (1989) “Development policy research: The task ahead,” Proceedings of the World Bank Annual Conference on Development Economics (Washington, D.C.: World Bank, 1990), p. 12. Singh was secretary general of the South Commission, Geneva, at the time of this address. In 2004, he became prime minister of India and still remained in power in late 2013; 637 Simon & Schuster: Porter, E Michael. (1990). The Competitive Advantage of Nations, (New York: Free Press, 1990); 641 American Economic Association: Imbs, J. and Wacziarg, R. (2003). Stages of diversification. American Economic Review, 93(1), 63–86. Retrieved from www.jstor.org/stable/3132162; 643 The Commission on the Measurement of Economic Performance and Social Progress: Stiglitz-Sen-Fitoussi Commission on the Measurement of Economic Performance and Social Progress, (2009), http://www.stiglitz-sen-fitoussi.fr/en/index.html; 646 John Wiley & Sons: Streeten, Paul et al. (1973). Trade strategies for development: Papers, Wiley, 1973; 649 International Food Policy Research Institute: Watkins, Kevin and Joachim, Braun. (2003). “Essay: Time to Stop Dumping on the World’s Poor,” in International Food Policy Research Institute, 2002–2003 Annual Report Washington, D.C., IFPRI, pp. 6–20; p. 9; 667 Oxford University Press: Hollis Chenery, Sherwin Robinson, and Moshe Syrquin, eds. (1986). Industrialisation and Growth: A Comparative Study (New York: Oxford University Press), p. 178; 667 Taylor & Francis Group: Excerpted from “East Asian ‘models’: Myths and lessons” by Colin I. Bradford, Jr. in Development Strategies Reconsidered, edited by John Lewis and Valeriana Kallab; 667 Harvard University: Hausmann, Ricardo, Hwang, Jason, Rodrik, Dani. (2006). “What you export matters,” Journal of Economic Growth 12 (2007): 1, and Hausmann and Rodrik, “Doomed to Choose: Industrial Policy as Predicament,” Harvard University, downloaded at http://www.hks. harvard.edu/fs/drodrik/Research%20papers/doomed.pdf; 668 Georgia Institute of Technology: Sanjaya Lall. (2004). “Globalisation and industrial Preface xxxvii performance,” presentation at the Globelics Academy, Lisbon, May 2004; 669 The World Bank Group: “Rodrik, Dani. 2008. Normalizing Industrial Policy. Commission on Growth and Development Working Paper; No. 3. World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/28009 License: CC BY 3.0 IGO.”; 677 Elsevier: Pack, Howard and Larry E. Westphal. (1986). “Industrial strategy and technological change: Theory versus reality,” Journal of Development Economics 22: 87–128; 678 Elsevier: Pack, Howard, and Larry E. Westphal. (1986). “Industrial strategy and technological change: Theory versus reality,” Journal of Development Economics 22: 87–128; 679 Georgia Institute of Technology: Lall, Sanjaya. (2004). “Globalisation and industrial performance,” presentation at the Globelics Academy, Lisbon, May; 679 The World Bank Group: Westphal, Larry E., Yung Whee Rhee, and Gary Pursell. (1981). “Korean industrial competence: Where it came from,” World Bank Staff Working Paper No. 469; 683 The World Bank Group: Keesing, Donald B. (1988). “The four successful exceptions: Official export promotion and support for export marketing in Korea, Hong Kong, Singapore and Taiwan, China.” United Nations Development Programme–World Bank Trade Expansion Program Occasional Paper No. 2; 699 Institute for International Economics: Adapted from Williamson, John and Lessard, Donald R. (1987). Capital Flight: The Problem and Policy Responses (Washington, D.C.: Institute for International Economics), tab. 1; 700, 713 Lexington Books: From The ABC’s of International Finance, Second Edition, by John Charles Pool et al. Copyright © 1991 by Lexington Books. Reprinted with permission; 718 Oxford University Press: Barry Herman, José Antonio Ocampo, and Shari Spiegel, eds., “Introduction,” in Overcoming Developing Country Debt Crises (New York: Oxford University Press, 2010), p. 4; 722 International Monetary Fund: International Monetary Fund, (2010). World Economic Outlook, October, p. 29. Used by permission of International Monetary Fund; 726 International Monetary Fund: IMF,(2013). World Economic Outlook Transitions and Tensions, October, Fig. 1.10, panel 3, p. 10, http://www.imf.org/ external/pubs/ft/weo/2013/02/. Used with permission; 728, 729 United Nations Conference on Trade and Development: 2009 World Investment Report. United Nations; 729 United Nations: Millennium Development Goals Report (New York: United Nations, 2010), p. 70; 729 The World Bank Group: From World Bank Crisis Page, http://www.worldbank.org/financialcrisis. UNCTAD, 2010 World Investment Report (New York: United Nations, 2010), pp. xvii–ix; 730 International Monetary Fund: IMF, (2013). http://www.imf.org/external/np/ res/commod/Charts.pdf, update of October 10, Used by permission of the IMF; 730 United Nations Conference on Trade and Development: UNCTAD 2010 World Investment Reports; 732 United Nations Publications UNIDIR: 2010 Millennium Development Goals Report. United Nations; 732 Elsevier: Mohseni-Cheraghlou, Amin. (2016). “The Aftermath of Financial Crises: A Look on Human and Social Wellbeing,” World Development, 87, Pages 88–106; 733 Jean-Claude Juncker: Jean-Claude Juncker, chair of the eurozone finance ministers; 733 Dominique Strauss-Kahn: Dominique Strauss-Kahn, IMF managing director ; 734 The World Bank Group: Global Economic Prospects 2019, The World Bank; 751, 752 United Nations Conference on Trade and Development: Data drawn from UNCTAD data base at http://unctadstat. unctad.org/ReportFolders/reportFolders.aspx, accessed 14 July 2019; 753 United Nations Conference on Trade and Development: From United Nations xxxviii Preface Conference on Trade and Development (UNCTAD), World Investment Report 2019, ch.1, p.12; 758 MIT Press: Biersteker, Thomas. (1978). Distortion or Development: Contending Perspectives on the Multinational Corporation. MIT Press, ch. 3; 763 The World Bank Group: International Bank for Reconstruction and Development/The World Bank, World Development Indicators. Copyright © 2010 The World Bank. Reprinted with permission; 764 United Nations: UNCTAD Trade and Development Report, p. 23 (New York: United Nations, 2009), tab. 1.6. Reprinted with permission from the United Nations; 765 ABC-CLIO: Jagdish N. Bhagwati, “Amount and sharing of aid,” in Assisting Developing Countries: Problems of Debt, Burden-Sharing, Jobs, and Trade, ed. Charles J. Frank Jr. et al. (New York: Praeger, 1972), pp. 72–73; 767 The World Bank Group: (2010) World Development Indicators. World Bank, tabs. 1.1 and 6.16; 776 Center for Systemic Peace: Monty G. Marshall and Benjamin R. Cole, Global Report 2017: Conflict, Governance, and State Fragility, Center for Global Policy and Center for Systemic Peace, Systemicpeace.org, August 27, 2017. Reprinted with permission from the Center for Systemic Peace; 777 International Committee of the Red Cross: Nina Birkeland “Internal displacement: Global trends in conflict-induced displacement,” International Review of the Red Cross 91 (2009): p. 502, available online at http://www.icrc.org/eng/resources/documents/article/review/ review-875-p491.htm; 777 Cambridge University Press: Thomas Plumper and Eric Neumayer, “The unequal burden of war: The effect of armed conflict on the gender gap in life expectancy,” International Organization 60 (2006): 731; 777 International Monetary Fund: Gupta et al., (2002). “Elusive peace dividend,” Finance Development, International Monetary Fund; 778 The Ohio State University: Pitcavage, Mark. (1995). An Equitable Burden: The Decline of the State Militias, 1783–1858, Volume 2, Ohio State University; 778 The World Bank Group: (2003) Breaking the Conflict Trap: Civil War and Development Policy, World Bank Publications; 780 Oxford University Press: Graham K. Brown and Frances Stewart, (2006). “The implications of horizontal inequality for aid,” CRISE Working Paper No. 36, University of Oxford, December 2006, p. 222; 780 Oxford University Press: Stewart, Frances et al. (2000). War, Hunger and Displacement: The Origins of Humanitarian Emergencies, Volume 1, Oxford University Press; 780 United States National Academy of Sciences: Burkea, Marshall, Satyanath, Shanker, Dykema, John and Lobell, David. (2009). “Warming Increases the Risk of Civil War in Africa.” Proceedings of the National Academy of Sciences. 106. 20670-4. 10.1073/pnas.0907998106.; 780 The World Bank Group: (2003) “Breaking the Conflict Trap: Civil War and Development Policy,” World Bank Publications; 781 Stockholm International Peace Research Institute: SIPRI Yearbook 2013; 783 University of Notre Dame: Bolongaita, Emil. (2005). “Controlling Corruption in Post conflict Countries,” Occasional Paper no. 26, Kroc Institute, University of Notre Dame; 783 Springer Nature: Stewart, Frances. (2008). Horizontal Inequalities and Conflict: Understanding Group Violence in Multiethnic Societies (New York: Palgrave Macmillan) p. 18; 783 Oxford University Press: K. Brown, Graham and Stewart, Frances. (2006). “The implications of horizontal inequality for aid,” CRISE Working Paper No. 36, University of Oxford, p. 222; 784 The World Bank Group: Barron, Patrick. (2010). “CDD in Post-Conflict and Conflict-Affected Areas: Experiences from East Asia,” World Development Report background paper, July 16, 2010; 784 The World Bank Group: Manor, James. (2007). Aid That Works: Successful Development in Fragile Preface xxxix States (Washington, D.C.: World Bank), p. 34; 801 Macmillan Publishers: Robinson, Joan. (1952) “The generalization of the general theory,” in The Rate of Interest, and Other Essays. (London: Macmillan), pp. 67–142 (p. 82); 806 International Monetary Fund: Collyns, Charles. (1983). Alternatives to the Central Bank in the Developing World, IMF Occasional Paper No. 20 (Washington, D.C.: International Monetary Fund), p. 2; 812 Princeton University Press: Collins, Daryl, Morduch, Jonathan, Rutherford, Stuart and Ruthven, Orlanda. (2009). Portfolios of the Poor: How the World’s Poor Live on $2 a Day. Princeton University Press; 820 The Commission on the Measurement of Economic Performance and Social Progress: Joseph E. Stiglitz, Jaime Jaramillo-Vallejo, and Yung Chal Park, (1993). “The role of the state in financial markets,” Annual Conference on Development Economics, p. 8; 825, 828 International Monetary Fund: Tanzi, Vito and Zee, Howell. (2000). “Tax policy for emerging markets: Developing countries,” International Monetary Fund; 839 Oxford University Press: Deze, Jean and Amartya Sen. Hunger and Public Action. Oxford: Clarendon Press, 1989. Photo credit(s) All chapter opener images © oxygen/Moment/Getty Images 1 Introducing Economic Development: A Global Perspective Two pictur