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International Development
Prateep Nayak

INDEV STUDY NOTES INTRO: SLIDE SHOW ONE -# of hungry people -urban slums -rural poverty -natural disaster -refugees and displaced persons -Higher growth rates in underdeveloped nations -deforestation more rapid in LDCs -energy use higher in DC and eco footprint -Species loss -surface warming WHAT: Theories, concepts, definitions, policies, issues WHY: Need, purpose, motivation, intention WHOM: Target group, recipient WHERE: location, place, setting, WHEN: point of intervention, action, phase, stage WHO: actors, agents, stakeholders, people who are responsible for development and underdevelopment HOW: Methods, tools, measures, indicators -No simple solutions, multidimensional, need to be flexible and creative to solve problems WHAT IS DEVELOPMENT:SLIDE SHOW TWO Development: A process from one condition or state of affairs to another -Baselines, what do you measure against and how do you know if your developed -Goal oriented=normative Labels -Very political -Shows relationships between nations -legitimate current practices and shape policy making  Truman’s 4 point speech: origins of development and underdevelopment (for humanity) -Old Label: Third World, Backward societies, The Non-aligned Movement -New Label: Newly Industrialized Countries (NICs), Developing, Forth World (poorest of poor) -Other Labels: two-thirds world, majority world, south or global south Measures Gross Domestic Product (GDP) -Average income per habitant -value of goods and services produced in the country (key is where production takes place) Gross National Product -total value of goods and services produced by citizens regardless of where production occurs Purchasing Power Parity -buying power of dollar in different economies -price of an identical basket of goods in two countries (compare) Rostow Stages of Growth Poverty -Absolute: min requirement for survival 1.4 billion $1.25/day -Moderate: basic needs met, survival not threatened $2/day -Relative: doesn’t threaten survival but limits persons participation in their own society Development as Freedom -Choice, security, lessen physical and mental suffering, increase opportunities, ensure rights and responsibilities are upheld, address inequity and injustice Human Development Index: Life span, literacy rate and standard of living Millennium Development Goals 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDs, malaria and other infectious diseases 7. Ensure environmental sustainability 8. Develop a global partnership for development HISTORY OF DEVELOPMENT: SLIDE SHOW THREE -Interaction between global north and south -exploration & expedition to expansion, conquest & occupation to independence Euro Expansion and Conquest -late 19 century: dwindling resources, investment opportunities with industrial capitalism, search for new market -Motives: great power competition, rush to expand, too risky to watch and wait -Seen as seizing an opportunity -Imperialism (euro expansion since 16 century) -political system which colonies rule from a central seat of power in the pursuit of economic goals -Neo-colonialism: economies formally independent remain subject for the control of others, often formal colonial powers -Colonialism as practise and imperialism as the idea driving the practice A HISTORY OF DEVELOPMENT: SLIDE SHOW FOUR Colonial Themes -Overwhelmed indigenous people with technology -Indigenous resistance to Europeans -gap between the civilizing mission and colonial reality Consequences of Colonialism -nurtures underdevelopment and encourages cultural dependency -weakens legal and educational systems -exploits natural resources to shape modern trade market -disperses people and blurs communal identity 1. Issue of Development (high dependency patterns) 2. Social Fragmentation 3. Post-colonial relationship between the state and the civil society Promotion of economic development (too little too late) -transforming indigenous economies into modern European economies -export oriented based of raw materials -creates structurally dependent and vulnerable economies Why Development is said to have failed -didn’t bridge rich to poor gap -all gains rolled back due to neo-liberalism -development sidelined by globalization Modest reforms of UN MDGs RESOURCES IN DEVELOPMENT: SLIDE SHOW FIVE Why env has been affected -empasis on industrialization -empasis on cash crop -TNCs lack of responsibility -emphasis on large scale projects like dams -limits to growth in 1972 questioned sustainability of development strategies (variables: world population, industrialization, pollution, food production and resource depletion Sustainable Development:meets the needs of the present without compromising ability of future generations to meet their own needs Poverty link to environment -must aliviate poverty for env. Sustainability -debate: struggle for survival causes over exploitation of resources Property Rights -econ benefits and env protection -neo-lib solution: privatize state and common lands Tragedy of the Commons -Harden 1968privativation of natural resources and increase coercive power of state Property Regimes 1. Private Property 2. State Property 3. Common pool (CPR) 4. Open Access Types of Justice 1. Distributive: outcome oriented 2. Procedural: process oriented 3. Corrective: repair and rectify 4. Social: Just society and fair treatment DEVELOPMENT & ENVIRONMENT: GOVERNANCE PERSPECTIVE: SLIDE SHOW SIX MEERRRRRRRR GENDER AND DEVELOPMENT: SLIDE SHOW SEVEN AND EIGHT Sex: biologically determined (male/female) Gender: socially constructed models, political positions (masculine, feminine) THEORIES, APPROACHES AND TRENDS: SLIDE SHOW NINE TEN TO THIRTEEN Development Economics -Keynesian economics: acceleration of growth through injection of foreign capital and macro policies (use gov’t spending on public sector and infrastructure to boost economy and provide jobs -Rostow’s Stages of Economic Growth 1. Traditional society : low levels of tech. 2. Pre-conditions for take-off: creation of national state, trade expansion and increase in investments 3. Take off: higher industrial productivity and agriculture than pop. growth 4. Drive to maturity: greater tech. development and integration into world economy 5. High mass consumption society: higher income and consumption beyond basic needs Modernization Theory -Transition from tradition to modern society due to natural evolution of societies from one stage to another -must be open to change as tradition restricts development 1. free market with little gov’t intervention 2. deregulate gov’t controls for more private business profit 3. slashing welfare responsibilities, allowing gov’t taxes to benefit private enterprises 4. privatization of state enterprises, goods and services via private investors 5. refocused to individual rather than community -ignores history of imperialism and colonialism -assumption transition to modern society was imminent -assumed end point would be democracy or development Dependency Theory -lack of development due to neo-colonialism -Focus on capitalist world system rather than a single country -impossible for traditional societies to catch up with modern ones -answer to underdevelopment is a revolution of a socialist character -elites in traditional societies collaborated in the underdevelopment of their own countries -originated ECLA Manifesto (Raul Prebisch) Marxism Keynesian vs. neoliberalism Kuse gov’t spending on public sector and building infrastructure to improve economy and create jobs Nreduces or cut gov’t spending and public sector of the economy; increase the role of the private sector and market forces Neoliberalism -economic grow through minimal or no gov’t interference and creation of free market forces -accumulation by disposition -free trade and open markets, privatization of national industries, deregulation, role of private sector -caused mass unemployment and inequality and poverty in developed countries -effects in developing countries: favoured foreign capital over domestic capital, attack third world countries’ industrialization efforts, harder debt repayment, transfer of capital TO the first world Development States -strong state intervention and extensive planning and regulation -England 60 years to double, east Asian countries only 10 Globalization as colonisation/imperialism -globalization: people incorporated to a single world society, global society - trade and transaction - capital investment movements - migration and movement of people - dissemination of knowledge -1 in 7 people is hungry -36 million refugees or displaced people -New challenges: fast growing economy, different nations, long-term historical perspective, meaning of a good life -Failed because: doesn’t bridge gap between rich and poor, gains lost due to neoliberalism, sidelined by globalization, reforms of UN MDG Top Down (trickle-down) -rich people driving forces of economic growth -state focus on wealthy countries -centralize decision making and aim to achieve development through higher scale and larger plans and projects Bottom-up (Grass-roots) -direct support to bring people out of poverty -peoples involvement in decision making -land an property rights and entitlements -sustainability as a long-term goal – no shortcuts to development Fair Trade: payment of a fair price, long term trading agreements, rules for workers conditions, environmental impact Core-Periphery Debate: regional development focuses on developing the periphery regions, reduce regional disparity, answer to uneven development of core and periphery, addresses rural to urban migration Import Substitution: domestic production of products instead of import (comparative advantage of producing) Community development and basic needs: appropriate technology, participatory development (small scale projects, rural enterprises) New way to look @ Poverty Reduction -understanding context shift to reduction strategies (not only raising income but expanding livelihood choices -reduction of poverty AND vulnerability -emphasis on interface of agriculture production and other activities (rural-urban linkages, mobility) -vulnerability reduces livelihood choices -unlikely that on theory can explain underdevelopment everywhere Popular Development -emphasizes solutions not theories -accommodates geographical and historical diversity -stresses local diversity, human creativity, process of social change through pragmatism, flexibility and context -high opportunity costs associated with environmental damage -Solutions sensitive to local social and ecological conditions -bottom up approaches -importance of decentralization of decision making and authority from center to periphery -power structures impact on development -sources of empowerment, inequality and discrimination -people centered approaches -self-help and self-reliance and collective decision making Post-Development and Alternatives to Development -emerged in 80s and 90s due to failure of modernization and neoliberal practices and rise of post- modern thought -modernization projects had failed -language contributes to social realities: images and words are not neutral, they generate meaning -powerful narratives shaped images (white man’s burden western conception of Africa) -civilized projects for backwards peoples -social movements engage in participatory politics, autonomy and pluralism (potential for a new era) -Criticisms of PD: lack of alternatives, old debates, romanticized vision on non-western societies ACTORS AND ARCHITECTURES OF AID  donors or lenders: provide development assistance  bilateral aid: government to government  multilateral aid: given through organizations (world bank, UN agencies)  Grant: donation, non-reimbursable  Official development assistance (also foreign aid): promote developing countries’ economic development and welfare, 25% grant element (1) involvement in official sector (2) promotion of economic development and welfare (3) combination of financial terms with concessional provisions  Aid from individuals, foundations, NGOs of private corporations does not count as ODA  Official Assistance: aid to countries who aren’t classified as developing  Loan: must be repaid but in terms better than commercial transactions  Tied Aid: donor’s economy benefits from ODA it provides -donor motivations (1) charity or solidarity (2) self-interests by pursuing foreign policy objectives -foreign aid hides the pursuit of naked self-interest behind claims that it is aimed at helping others -foreign aid seen as compensation for past and present injustices -International obligations under human rights laws -Donor countries focus aid on geography, security and previous ties -channelling aid through multilateral agencies causes loss of control on how their aid is spent CIDA Priority items: 1. Increase food security 2. Securing the future of children and youth 3. Simulation sustainable economic growth Themes across programs 1. Increasing environmental sustainability 2. Promoting equality between men and women 3. Helping to strengthen governance institution and practices -top aid recipients Iraq and Afghanistan, most dependent Liberia (185%) -donors reducing tied aid, more grants than loans IMF and World Bank 1944 to:  Promote new international economic order (NIEO)  Promote trade  Preserve stability of international trade and investment  Establish monetary stability to facilitate world trade IMF mission:  Overseeing workings of NIEO  Addressing potential disruptions to NIEO  Assisting countries faced with monetary instability World Bank  Assist in the financing of development projects in developing countries  Extends loans for physical infrastructure projects  Interest-free loans to foster industrialization  IBRD = International Bank for Reconstruction and Development o Development assistance to middle income countries o Lends to countries with good credit o Generates own funds by raising cash in credit markets  IDA = International Development Association o Focus on poorest countries with loan and grants o Depends on contributions from riches member countries to generate resources  IFC = International Finance Corporation o Finances private-sector investments and technical support and advice to gov’ts and business o Partner with private investors to provide loans and equity to finance business ventures  M.I.G.A = Multilateral Investment Guarantee Agency o Encourages foreign investment in development countries by providing guarantees to foreign investors against loss by non-commercial risks o Tech support to help developing countries promote investment opportunities and uses its legal services to reduce possible barriers to investment  ICSID= International Center for the Settlement of Investment Disputes o Provides help with settling investments disputes between foreign investors and their host countries -ownership of WB: business cooperative, member countries as shareholders (#1 U.S., based on size of the economy -poorest 165 countries only have 28% of the vote Structural Adjustment -b/c USA increased interest rates causing Latin American countries to default on loans -Developing countries must meet these conditions: 1. Strict measures to restore macroeconomic balance 2. Liberalization of prices currency, devaluation and fiscal discipline (balanced budget) 3. Rapid liberalization of trade, deregulation of markets, privatization of state-owned enterprises and privatization of health care 4. Promotion of export industries 5. Debt repayment assurances -WB: Good Governance is needed to support economies, protect property rights, ensure accountability, it will prevail when corruption is eliminated and it will be possible when the rule of law is applied freely and fairly -WB new approach: economics + institutional + human + physical dimensions -WB in New Millennium: MDG oriented (poverty), Poverty Reduction Strategy, Intro to the concept of ownership MULTILATERAL ACTORS IN DEVELOPMENT Multilateralism: arrangement among three or more states, purposes peaceful and over extended periods of time, help gov’ts improve their standing, influence, security or economic advantage United Nations -after WWII- original goals, peace and prosperity (ruled by US from start) -Agencies: 1. Specialized Agencies (autonomous) 2. UN organs, programs or funds (directly accountable to the General Assembly) 3. Peacekeeping and humanitarian agencies (directly accountable to the Secretary General) -Food and Agricultural Association: provide gov’ts with info and policy advice on nutrition, food, agriculture, rural development and natural resources (promoter of green revolution and food security) -World Health Organization: promote all round physical, mental and social well-being (promotes research, knowledge sharing, sets health care standards) -Children’s Fund: to assist child survival and development through community based and national programs for preventive health, nutrition and education (promotes legislation for c
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