What is Development What does it mean to

What is Development? What does it mean to be rich and how do you get rich?

Jared Diamond’s (Yalu’s) question • Eurasian superiority of plants and animals for domestication • orientation of continents

Jeffrey Sachs on Africa • tropical climate and disease • lack of navigable rivers

David Landes’ explanation • culture

Example of China • After 1433 Chinese emperor abandons the “Treasure Fleet”, leaving trade and exploration

Modernization theory • on different points of the same path undeveloped Semi-developed Highly developed

Dependency theory • Europe’s early advantage continues to stunt the development of poorer countries • trapped providing resources and agricultural goods to rich world • scissors effect industrial goods resources and agricultural goods

Counter example: the “tigers”, etc • Korea, Taiwan, Hong Kong, Singapore • then others--Thailand, Philippines, Indonesia, Chile, Ireland • India, China

how did they do this? • industrialization by little steps • example of Japanese car makers • toys and textiles • Initially protected industries, quickly subjected to competition for the world market—”export-led growth”

What is Development? • • • Measuring development: GDP PPP GNH HDI • includes life expectancy, literacy, and schooling as well as income

World HDI rankings • • • Norway Iceland Australia Luxembourg Canada Sweden Switzerland Ireland Belgium United States

Is the world getting richer or poorer? • Richer • Long term global welfare improving with respect to average life expectancy, infant mortality, income, calories consumed, etc. • But some regions have experienced declines in recent years

Sub-Saharan Africa the exception

Moreover, global inequality increased • 1948 developing world per capita GDP-$100, US--$1, 600 • 1993 developing world—$1, 100, US-$25, 000 • Similar trends in child mortality, education, etc.

What about within country inequality?

What is the role of AID to the poor countries • • American aid: first or second biggest contributor low percentage--. 1 -. 2% of GDP often given to mid-income countries-- politics

Millennium Development Goals • by 2015 halve the number living on $1 a day • universal primary ed • eliminate gender discrimination in 1 ary and 2 ndry ed • reduce by 2/3 child mortality, maternal • reverse spread of AIDS, malaria • halve those w/o access to clean water

Millennium Development Goals • raise North’s contribution to. 7% GNP • Jeffrey Sachs’ position: • 1000 s of underfinanced programs in health, education, infrastructure • critics: there is no capacity to productively spend large increases

Debt Relief Since mid 90 s, a major issue, with roughly 30 countries receiving relief

Remittances • More important than aid? --over $100 billion, especially to Mexico, Philippines, and India

Women in the Muslim world • Places w/ low female ed. , rights, are poor • Turkey under Ataturk • 1920 s women gained basic rights , and was first country with women on high court, and one of the first with a female PM • Tunisia with independence 1956 • Banned polygamy, marriage to 17, consent for marriage, women can request divorce, etc. • Tunisia’s better literacy, lower birth rates have propelled it past neighboring countries • Qatar—since ’ 99 women and men vote and run, majority college students female • Kuwait—voting in 2005

Cont’d • Saudi Arabia • Women treated as minors • But playing increasing role in politics, ed, and business • Afghanistan • Less than 20% female literacy • Ed improved since Taliban gone, but minimally funded • Iraq • The status of women could deteriorate since fall of Saddam’s secular regime

Micro lending • Grameen Bank has expanded since 70’s— has 6 million borrowers in Bangladesh, 96% women

Trade more than aid • developed countries still protect their markets from poor country goods--sugar, cotton, tobacco, etc.