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McGill University
International Development
INTD 200
Karen Mc Allister

INTD 200 9/5/2012 12:43:00 PM Introduction Development is o Improvement of living standards o Economic prosperity o Sustainability o Globalization Many people think of development as a technological progress an improvement in technology Also as something that is a linear change Influenced from ideas from Darwin - a process by which organisms reach their evolutionary peek Some people think of development as planned change Developing versus developed? Whats in a name? Development/underdevelopment o This concept was claimed right after the First World War by Harry Truman in a speech where he proposed the concept of underdeveloped areas o Prior to this, there was an even more derogatory idea that certain areas in the world were backwards economically, or socially o Trumans speech: We must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement of growth and underdeveloped areas. More than half the people of the world are living in conditions approaching misery. Their food is inadequate, they are victims of disease. Their economic life is primitive and stagnant. Their poverty is a handicap and a threat both to them and more prosperous areas. For the first time in history, humanity possesses the knowledge and the skill to relieve the suffering of the peopleour imponderable resources in the technical knowledge are constantly growing and are inexhaustibleThe old imperialism exploitation for foreign profit has no place in our plans. Inaugural address, President Harry Truman, 20 January, 1949 o Key ideas from this speech: There is an ethical responsibility to help the underdeveloped through technology and we have the means to plan this development in a certain way There is a certain criteria this is developed, this is underdeveloped linear scale Underdeveloped areas are a threat to the developed areas protect from communism There is a universal measure of development First, Second, Third and Fourth World o Comes from French demographer in 1950s Alfred Seri o First world Western world o Second Soviet block o Third Everyone that wasnt in these 2 groups Problems: unclear category Negative connotation Frames the world as a hierarchy What does it mean if a country develops? Some countries may actually be better than some in first and second world o Fourth the poorest of the poor countries Failed states Areas of particular countries within countries i.e. indigenous populations Newly Industrialized Countries (NICs) o Certain countries developed quickly and could no longer be considered part of the third world o Ex: Singapore, Taiwan, India, Brazil, China o Also called emerging markets o This classification is based on percentage of population that is involved/employed in non-agricultural sectors o % of GDP based on manufactured good vs. agriculture o per capita income higher than a certain level Developing countries/developing economies o Certain countries are in process of change o Still problematic Alternatives South, Global South o To try and get out of these situations of hierarchy or notion of linear development o Some people use this terminology o Problematic because Australia is in the South, but not in the south o Strange o Neutral but not really based on location Countries can move from one level to another mainly based on mainly economic indicators Defining and measuring development: Development as economic growth Economic growth often equated with industrialization and modernization Measured through: GDP Gross Domestic Product o Standard measure which measures the value of goods and services produced within the economy of a country o Used to compare different countries GNP Gross National Product o Different because it also includes money coming outside of the country o Ex: Philippines a lot of overseas workers send money back to the country GDP/Capita o More commonly used to compare countries o The amount of income per person in the country o Average income of a country o Problem with this: wealth disparity o Doesnt measure how income is distributed among the people o There may be a high GDP/Capita but a huge number of people that are poor and a small number of people that are rich o It doesnt measure equality GNI (Gross National Income) per capita o World Bank classifies countries as low, high or middle income groups o Based on GDP but they call it GNI (essentially the same thing) o They use the term developing economies o They compare the standard of living of countries by adjusting GDP/Capita with something called PPP PPP Purchasing Power Parity o Evaluates what can be bought with 1 USD in different countries o Measure of the cost of living o If you have 1 CND, you can buy a bag of chips o But in Laos, you can buy a whole meal o But the income in Canada is a lot higher than in Laos The problem with these is that economic growth is not the same as economic development because they dont measure living standards Doesnt show the distribution of wealth in a country Doesnt give any kind of indication to the social environment there could be a lot of human rights abuses, sweat shops but GDP is higher Development and social welfare: Inequality Kuznets curve o Said that with development (industrialization) you get an increase in equality and a decrease in inequality so you have an upside down U shaped curve Measuring inequality o Dividing population into economic strata 5 or 10 equal population groups quintiles, deciles compare how income is distributed within these groups o Gini coefficient measures income inequality Number between 0 and 1 If its low, low level of equality Scandinavian countries: 2.25 Brazil: 0.6
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