Human poverty What is human poverty What is

• Human poverty What is human poverty:

What is human poverty: Lack of basic needs: Food Water Shelter Clothing

Millennium development goals: http: //www. slideshare. net/adeshipp/united-nations-millenniumdevelopment-goals

If we apply WST concepts to DW articles, how would the authors’ arguments show that global economic development favours AICs? • • • #1. Lancaster: Power & Core’s interest #5. Haugen & Boutros: The core’s aid for promoting justice for the poor have not made gains as they are not followed through. The ‘public justice system’ in the LDCs exists only in theory because in practice, the poor do not have access to it. #6. Mahubani: The West is oblivious to changes in the global order. #7. Birdsall & Fukuyama: Core’s policies for development, e. g. , Washington Consensus, have been discredited # 8: Easterly: As a result of Financial crisis of 2008 started by core’s market and financial deregulation, global poverty has increased.

#1. Lancaster: • P: a single major power – (who controls dev. policies? ) • T: Cell Ph. (who has patents on advanced industrial technology ? ) • NDL: Core promotes own interests (why is it unfair to DW? ) • U: Core’s domestic interests led their trade and investment in DW – (why do they harm the DW’s development? ) #5. Haugen & Boutros • P: LDCs’ colonial roots and comprador elite interests resist est. of public justice for the poor- (Who benefits from the colonial past? ) • T: Tools of justice, e. g. rule of law, lawyers, accessible legal sys. are not accessible to the poor (Why? ) • NDL: Donor countries are interested in international crimes and drug trafficking rather than the enforcement of public justice in LDCs (Why? )

#6. Mahubani : P West refuses to share its global power as it is oblivious to the changing global order U Trade liberalization to make trade freer is doubtful at the Doha Round. (Why? ) T Technologically advanced West blames India and China for global emissions ( Why is it unfair? ) P West has arrogated power in its disdain for UN and in its global role of NPT by ignoring Israel’s but condemning Iran’s nuclear weapons program(Why is the West losing its moral authority? ) # 8: Easterly A result of Financial crisis of 2008: • Increasing global poverty • Development Experts promoting Top-down will stop bottom-up development (P) • State control will kill entrepreneurial investment (P) • International free trade vs. protectionism (U) • Import substitution will reverse export orientation (NDL)

#7. Birdsall & Fukuyama Foreign capital (P)vs. Caring State) Impact of the 2008 financial crisis showed: • End of Foreign financial fetish, i. e. , uncontrolled flow of foreign cap and opening up banks & dismantling exchange controls due to the awareness that the impact on financial institutions may affect other parts of the economy, e. g. , a country’s interests in trade and investments. • Caring State: Sensible social policies not pure econ efficiency as target -Washington Consensus fiscal efficiency (austerity) led to cuts in social spending. • Capitalist system is inherently unstable – therefore a poorer country needs greater social safety net protection, e. gs China’s building of pension system; Latin American countries’ income transfers • ‘The visible hand’ of the state over the ‘Invisible hand’ of the market

#7. Birdsall & Fukuyama (cont’d) 1. Since the Great Depression (1929 -39) – policy shift away from monetarism and laissez-faire toward Keynesian demand management. 2. West’s too much reliance on market led to the rise of call for global financial regulation 3. Critical questioning of the prevailing Washington Consensus – i. e. neoliberalism: small state, deregulation, privatization, low taxes 4. Washington consensus has been discredited 5. Emerging market economies: accumulated Foreign Currency Reserves & regulated their financial system well Less focused on free flow of capital Promoting social safety net programs – supporting domestic industries - not deferring to West’s expertise.

The Great Depression: History channel 3. 37 mi http: //www. youtube. com/watch? v=f 8 k 0 j. Jdq. KP 0&feature=related Impact of the fin crisis of 2008 -- 6. 11 min http: //www. youtube. com/watch? v=Nmwbd 7 j. CH 5 k&feature=related World collapse explained in 3 minutes (2008 fin crisis http: //www. youtube. com/watch? v=NOz. R 3 UAy. Xao&feature=related

Strategies for development in the poor countries: • A viable State is essential for market oriented growth, development and poverty reduction (Lancaster, #1) • The role of the state in LDCs rather than international aid donor countries are crucial for advancing justice for the poor (#5. Haugen & Boutros). • The West (the Core) is impeding the growth of global economy and democracy (Mahbubani # 6)

Strategies for development in the poor countries (cont’d): • The role of a ‘caring’ state is central in LDCs for stability and expansion of their economies ( #7. Birdsall & Fukuyama). • In response to 2008 global financial crisis, if governments in the DW return to policies of economic intervention, e. g. , protectionism, extensive regulation of the economy and top-down development strategies , it would harm the economic growth and adversely affect the poor (# 8: Easterly, 2009).