POLB81H3 Lecture Notes - Dual Economy, Comparative Advantage, Transnationalism

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Published on 16 Apr 2013
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1/27/2013 5:29:00 PM
Lecture 4
Of what is this instance?
Institutionalism: for the most part we are talking about business elites. They
are saying that it can’t solve these problems. Global capital is not going to
solve these kinds of problems. They talked to business elites and they said
that. Global capitals: maybe institutions isn’t the right way either.
It could also be the needs to go beyond institutionalism. They see economic
development through education. It’s much decentralized.
Hints of feminism perspective. Kind of individualistic approach. Solve
problems through empowering women, education, etc.
This is an example of limnality: State of being in between. We have a pretty
vague idea of what is going to work.
Most elite of the elites being not exactly sure what the way is forward. So
they’re trying lots of different ideas. But the notion of global governance is
going to evolve.
Trans governmental/transnationalism: the idea of promoting innovation.
Implicitly here is a transnationalism perspective.
Global poverty and Development
Economic development of global challenge video
Conventional understanding of development
Pro-market, economic centric
Gives the basic of the problem
Productivity: high productivity translates into high income standard.
Skills of the people
Number of machines they have
Productive machines
The increase in capital stock is called investment. The level of investment is
related to the savings account of a country. A higher saving rate increase
productivity and income but not necessarily human investment.
Country can achieve faster economic growth by increasing investment but
capital can return returns to capital.
Human capital: stock of knowledge embodied in a person. Human capital
makes people more productive.
Brain drain: reduces human capital in poor countries
Increases in human capital will improve standard of living
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Technology: blueprint of the production process. Technological innovation
leads to higher productivity.
Lack of technology sharing can explain the gap
Causes of underdevelopment
Some country’s geographical area helps their development. Other countries
experience harsh seasons.
History of colonialism scarred countries. Negative consequences of
colonialism such as exploitation of resources and people. In some cases this
institutional underdevelopment can be traced back to underdevelopment.
Angola is an example of a country overcoming colonialism.
Capitalism system today create a core and periphery system
Foreign capital investment is in part a new colonial experience
Fair judiciary and property rights and credit institutions are not functioning
well
Haiti stagnation is a result of political instability and domestic foreign
investment has been slow to return
Dual economy: rural economy remains the same while the urban areas
experience industrialization.
It is really good in terms of moving clearly from and understanding the
problem through the solutions they came up
What is the problem?
Low income=low standard of living=which causes the problem of
productivity
What problems or needs stop us from increasing productivity? The focus of
problem solving is figuring out why a country has low productivity and how
that can be overcome?
How different perspectives deviate from this logic?
Scope of the multi-dimensional of the problem
As an individual problem of income: proportion of population of various
regions of the world that exist on these levels of income. Problem of poverty
and underdevelopment is that people don’t have enough money.
Individual economic perspective?
The problem of development and poverty is changing individual lives
National human development perspective?
The problem of development and poverty is at a national level
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Document Summary

Institutionalism: for the most part we are talking about business elites. They are saying that it can"t solve these problems. Global capital is not going to solve these kinds of problems. They talked to business elites and they said that. Global capitals: maybe institutions isn"t the right way either. It could also be the needs to go beyond institutionalism. This is an example of limnality: state of being in between. We have a pretty vague idea of what is going to work. Most elite of the elites being not exactly sure what the way is forward. But the notion of global governance is going to evolve. Productivity: high productivity translates into high income standard. The increase in capital stock is called investment. The level of investment is related to the savings account of a country. A higher saving rate increase productivity and income but not necessarily human investment.

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