challenges of development
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Examines the challenges facing development inTRANSCRIPT
CHALLENGES OF DEVELOPMENT
What is Development? Development –
Significant and measurable economic growth. The emergence of social, economic, and political
institutions. What is the difference between Development and
Growth? Growth –
Quantitative increases in economic activities. Infrastructure
How do we measure Growth? GNP and GDP Easy to do? UN’s – HDI Index
GNP & GDP of states around world
1. United States: 12.970 billion 2. Japan: 4.988 billion 203. Guinea Bissau: .28 billion
Global GDP (in millions)
World: 58,133,309
USA: 14,256,300
Japan: 5,067,526
China: 4,909,280
Kiribati: 130
Most countries/economists use GDP to measure economic performance.
Not always easy to measure in developing countries
What to include?
GDP is not enough…
Economic development does not equal social development.
How to measure human development?
1. Human Development Index
2. Access to health care, housing, education, proper nutrition, safe
environment an overall improved quality of life, enjoyment of freedoms.
Human Development Index Measures the quality of life people
experience Developed by United Nations
Development Program (UNDP) Formula includes: life expectancy at birth,
income, literacy, and access to education. Gender development index: concentrates
on inequalities between women and men
Role of Government
Governments may promoted or impede development.
Close relationship between economic development and political development.
Government Institutions: provide the essential framework within which development occurs; Determine the rules of the game
Many societies fail to make economic progress because of weak institutions
Theories of Development
Theory: predicts how humans behave or how things work in the world under certain circumstances
Development Theory: Attempts to explain how countries achieve specific economic and political improvements
Modernization Theory
All societies go through similar stages of development
Embraces Free-market capitalism Dominant theory in 1950’s and 1960’s Western Europe and US as model Treated Africa, Asia and Latin America
as homogenous mass
Types of Societies Traditional Society: self-sufficiency, loyalty
to family, strong kinship, weak institutions, low literacy levels and tech. widespread superstition.
Transitional: traditional and modern characteristics. Political institutions emerge, literacy increases, less focus on agriculture
Modern: Westernized, achievement oriented, urban, literate, high quality of life
Marxist Theory
History of society is history of struggle between those who control wealth (Bourgeoisie and Proletariat)
Economic development is determined and controlled by the govt.
After economy is developed,
state will wither away
since no need for govt.
Dependency Theory Influenced by Marxist emphasis on class
conflict. Three classes of countries1. Core
2. Semi-Peripherey
3. Periphery Capitalism reinforces dependency and economic
inequalities Advocates cooperation among poor countries and
import substitution.
Other Theories Third World and African SocialismOpposes Marxism and Capitalism draw upon African
traditions of communalism and humanism Community and Grassroots DevelopmentBottom up approach (Grameen Bank). Traditional
values used to promote economic growth & equity. Feminist TheoryFocus on women’s empowerment, active participation in
economic development and improved social, economic and political conditions
What influences development?
Values of Leaders and CitizensWhy would this matter?IranAsia: Confucianism
Natural ResourcesAre natural resources enough?Why is an “agricultural revolution” important?
Natural DisastersImpede or reverse development
Population
Population
Small population can discourage investments and prevent realization of economies of scale
Overpopulated countries are generally poor
Population of India grows by 48,000 a day
Rate of population change threatens earths carrying capacity
Education and Health Care
Education challenges traditional values and social arrangements, empowers women, helps farmers.
Poverty reinforces health problems Loss of workforce to AIDS
Political Instability
Forces best educated and most talented to leave
Increases risks for investors, destroys property, disrupts agriculture and industrial activities.
Destroys infrastructure Biafra in Nigeria
Corruption
Drains resources away from public services and infrastructure projects
Bureaucratic Corruption Makes everything more expensive institutions are weakened
Why is Corruption so Pervasive?
1. No accountability and lack of good governance
2. Employment in govt. is about personal gain
3. Economic hardship
4. Average persons use officials corruption to justify personal corruption
5. Values
6. Government Control of Economy
Debt & Foreign Aid
Trapped in Debt from foreign aid and loans.
Reliance on International Monetary Fund
IMF determines state’s economic policies.
Despite substantial aid, most recipients fail to develop