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Canada (161,680)
PSCI 250 (3)
Chapter 4

P250Ch.4 textbook notes

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Department
Political Science
Course
PSCI 250
Professor
Ivan Jaworsky
Semester
Fall

Description
Ch.4- Development ⱥ Political Economy Concepts ● Development ○ Process by which society changes/ advances ○ Economic Dev ■ GNI ● Totalincome from allG/S earned by country’s producers regardless of where they operate ■ GDP ● Totalmarket value of allG/S produced ⱳin country’s borders annually ● High GDP growth → 7-10% ○ Possible in low-income countries that start ⱳ low-econ bases ○ Many pplnot employ to fullpotential ● Advanced Industrial→ 3-5% ○ 3% → Typical ● Negative GDP→ Advanced economies in recession ○ Happened more frequently in poorer countries (Africa) ■ GDP/capita ● Average income of per person ● Relatively wealthy→ $30k→ US, Japan, WEU→ vs. Few $K/year ■ PPP→ Purchasing Power Parity ● Adjustment made to income to account for differences in cost of living ■ High GDP ● GDP/capita may be reduced by adjusting for PPP ○ Eg. someone earning $50k may only be able to buy as avg ppl earning $40k in another country ○ SocialIndicators ■ Standrds of living ■ Quality of life ■ Culturalchange ○ Political ■ More developed= more democratic Types ● Poverty ⱥ Inequality ○ Poverty ■ Measured to est. poverty line→ $1B pplww. ■ WB ⱥ UN Dev→ Absolute poverty ● Line below ppldefined as poor→ inability to purchase certain set of basic G/S ● Programme→ from $1/day to $2/day ■ Income measure ■ Measure of access to health care ⱥ education ■ May be measured diff by individualcountries ● US→ Defined for households ⱥ families of diff sizes- recalculated on regular basis to reflect cost of living ■ Looking at poverty line does not indicate poverty depth ○ Inequality ■ How income is distributed ■ Measured by GiniCoefficient→ 0-1 ● Employment ⱥ Inflation ○ Employment ⱥ Unemployment ■ Impact on ppls well-being ⱥ country’s overallecon health ■ Measured by total# of jobs created/lost or % of pplⱳ/ ⱳout paid employment ■ Underemployment ● Degree to which members of labor force is employed less than they wish to be ■ Developed econ→ Fewer pplare informally employed (unoff. street venders) vs. in much of developing world ○ Inflation ■ How quickly prices rising→ Rise in prices of G/S ■ Pplfind it more difficult to plan for future if are uncertain of future prices ■ High Inflation ● Brought about collapse of many regimes ■ Hyperinflation ● Exceedingly high inflation→ dramatically erodes value of money over time ■ Deflation ● Decline in prices of G/S often associated ⱳ depression/ serious econ slowdown → Worsen by pplstop buying to wait for lower prices ■ FiscalMeasures ● Gov’ts revenues ⱥ or expenditures→ econ health- totalindebtedness → poor fiscalindicators = imply econ challenges in future as debts come due Types Con’t ● SocialOutcomes ⱥ Human Development ○ Human capital→ represent accumulated skillⱥ investments pplmade in own capacities ○ Health→ aspect of human capital ■ Life Expectancy→ avg age untilmembers of society live ■ Infant Mortality→ Measures # of infants/ per 1k born that do not survive age of 1 ○ Education→ another aspect of human capital ■ Literacy Rates→ % of pplthat can read ○ Human Development Index ■ HDI→ Measured by UN to provide broad view of annualdevelopment ⱥ well-being around world→ based on income, life expect, ⱥ literacy/ school enrollments ○ Standards of living ■ Inequality ↑ as income increases at certain stages of econ develop. (from low-income to middle-income ○ Societies aimed to increase access to health ⱥ edu ⱳout necessarily increasing personalincomes of citizens ○ Many different ways to improve stnds of living but many remain behind ● Gender Relations ⱥ RacialEthnic Identities ○ Gender ■ Means to development ● Empowering women in particular helps advance other aspects of development ● Smallchanges (extending edu ⱥ loans to women) have effect of increasing women’s income= more resources available ■ End to development ● Occurs when econ ⱥ socialoppt available to women ⱥ men alike ■ Women more likely to invest scarce resources in families (human capital) ○ Racial/ Ethnic Minorities ■ Systemically derived to participate equally = development incomplete ■ Gap btw identity groups not always captured by econ stats (GDP) ⱥ may go beyond politicalrights ■ S. Africa→Higher avg socialindicators vs other African countries→ but its inequalities are shocking ■ Not the only place such gender/racialgaps are found Types Con’t ● Satisfaction ⱥ Happiness ○ PPlseek higher incomes b/c gives access to other things they desire ■ Opprt to consume things they like (luxury, vacation, higher edu, good food) ○ Fundamentalconcept→ ppls ability to fulfillutility ■ Utility→ Value pplderive from resources to which they have access ○ Happiness ■ Socialstatus; family ties; consuming G/S; living spiritually fulfilling life ■ Challenge how to measure it ● Bhutan→ Gross NationalHappiness ● More countries following suit→ China; CAN; Fr; UK ● CulturalDevelopment ○ For many→ develop may mean retaining ⱥ deepening one’s own culture ○ If econ growth brings commercialization ⱥ culturaldisintegration ■ Some→ willwant none of it→ Define development as living autonomously ⱥ enjoying culturaltraditions ● Indigenous groups→ Protect its own language ⱥ folk traditions- avoiding influences of Western values ○ Modern nations → Protecting traditionalcultures ⱥ questions of growth ⱥ development ● Sustainability ○ Development that conserves resources to respect needs of future G ○ Stewarding resources effectively ⱥ not depleting them too rapidly willany society remain viable over long run ○ Env sustainability → Increasing attention to climate change ○ Replacing GDP ⱳ new measures to account for use of resources ■ Using up ‘naturalendowments’ ○ Difficulties of securing collective action btw many countries → when each country has incentives to ‘free ride’ on efforts of others Causes ⱥ Effects ● Institutions- Markets ⱥ States ■ Why economies grow diversify ⱥ become more productive ⱥ successful ■ Theories→ Institutions; CulturalValues; Domestic ⱥ Int’lStructures ■ PoliticalEconomy→ Interaction btw politics ⱥ economy in a given country/ int’ly→ how politics affects econ/ how econ affects politics ■ Emphasis on politics ⱥ public institutions that affect economy ○ Market-Led Development ⱥ Neoliberalism ■ Free Markets basis for creating Wealth→ Neoliberalism ● Neolib→ Ideologicaltendency that favors liberaldem. ⱥ mrkt led development ■ Society benefits not from generosity but from econ efficiency ⱥ expansion that takes place when everyone pursues their own gain ■ Logic of mrkt→ Expected to econ advancement ⱳin given country
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