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 1ary and

2ndry 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:

• 1000s of underfinanced programs in health, education, infrastructure

• critics: there is no capacity to productively spend large increases

Debt Relief

Since mid 90s, 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• 1920s 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 age 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.