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Leslie Jermyn

Tuesday June 16 , 2009 Poverty, Development and Globalization Outline 1. Poverty Problematized a. 1945 UN b. 1949 Truman c. 1951 UN d. Marshall Plan 2. Modernization Theory 3. Development in Action: Green Revolution 4. Turbo-Capitalism 5. Surplus People 6. Poverty is Local and Global - Last week we looked at debt and how third world debt was created, and the consequences of SAPs - Debt is growing into a big problem, and at the same time, a biunch of development things are going on in order to develop the third world o This impulse to develop arises out of the post-war effort to avoid economic chaos leading to political chaos - Development form the start was primarily perceived as poverty eradication - Development Economics when it first emerges as a discipline this is what it is called o The discipline interested in eradication poverty o Poverty is defined as things or conditions which are not present. SO poor people dont sufficient have water, land, health, etc o There is a while mini industry in determining when you become poor. I.e. World Bank says if you are less than a dollar a day you are extremely poor; OR for example, LICO in Canada o Suggests you are poor if you lack x o This way of diving the poor only became widespread after the second World War - Only in post-colonial era they started looking at them as the third world. Before this, people were not defined through what they have. - Dr J will suggest that in the 40s and 50s, there are 4 things we want to take account of 1945 Creation of UN - Charter of UN joined all members to strive for global social progress. As part of their membership, countries all had to provide national accounting statistics. You can find these on websites like Statcan. Things like GDP, GNP, population, imports, exports, what was being produced, what was bring consumed, how many miles of roads etc - Beginning of national statistics and the impulse to social progress people began to think we have to strive for social progess, so people began to figure out what this progress would look like while they saw these numbers. Their solutionw as that the easiest way to tell which country is rich and which is poor, is per capital income. o Divide nations GDP into population of country - When these numbers were calculated, the arbitrary number they picked was $1 a day. If you made less than that, you were defined as poor - This had raised to $2, but Dr J argues that the fact that they can reasonably still say that $1/day means poor even 60 years later - This type of calculation then started to define social progress. o ALL social implications of poverty were mushed into the idea of dollars. o Money being exchanged does not represent social progress. There is no logic in the argument that more money being exchanged means more social progress 1949 Truman- He addresses Congress and in point 4 he says the industrialized countries should use the fruits of their own economic progress to develop the poorer states around the world - Truman suggests that one way to increase other Per Capita Income, is with rich countries who will contribte some of their money to other poorer countries - Context Era of Cold War, it is part of the whole, we wanna make sure the other countries dont turn socialist stuff 1951 UN Report - Suggests that living standards (which actually meant INCOME) could be raised if states took action to raise it - Suggests that development is not something to happen on its own, states have to intervene o Important because it is a shift from CLASSICAL economic thought, to the thought that states should intervene o DEVELOPMENT INDUSTRY States should intervene o Part of the process of development must include state intervention Marshall Plan - It proves that somehow, all of the above things work. - It was a huge injection of aid money and material wealth from the USA to wartorn countries in Europe and Japan. It also involved sending construction materials and teams of marines to help build ports and stuff - Countries who got this, did not incur debt. It was a free gift. - Congress asked George Marshall why USA should give them so much money without loans. Goerge Marshall said no o 1. You get yourself in the same position that Germany has o 2.Economically, giving it for free is the sounder decision. His argument: By the end of WWII< USA was basically the global industrial powerhouse. It had produced throughout the war, industrially, it was very powerful. Soldiers come home, looking for jobs, the USA has a real cirisis. Without the war, some industrialization is going to have to go down if they dont have anyone to sell it to. So MArhsall says, if you want to retool the peacetime, and employ returni
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