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

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What is Development?What does it mean to be rich
and how do you get rich?
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Jared Diamonds (Yalus) question

• Eurasian superiority of plants and animals for
  domestication
• orientation of continents

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Jeffrey Sachs on Africa

• tropical climate and disease
• lack of navigable rivers

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David Landes explanation

• culture

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Example of China

• After 1433 Chinese emperor abandons the Treasure
  Fleet, leaving trade and exploration

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Modernization theory

• on different points of the same path

undeveloped
Semi-developed
Highly developed
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Dependency theory

• Europes 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
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Counter example the tigers, etc

• Korea, Taiwan, Hong Kong, Singapore
• then others--Thailand, Philippines, Indonesia,
  Chile, Ireland
• India, China

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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 marketexport-led
  growth

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What is Development?

• Measuring development
• GDP
• PPP
• GNH
• HDI
• includes life expectancy, literacy, and schooling
  as well as income

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World HDI rankings

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

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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

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Sub-Saharan Africa the exception
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Moreover, global inequality increased

• 1948 developing world per capita GDP--100,
  US--1,600
• 1993 developing world1,100, US--25,000
• Similar trends in child mortality, education, etc.

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What about within country inequality?
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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

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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

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Millennium Development Goals

• raise Norths 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

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Debt Relief

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

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Remittances

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

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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.
• Tunisias better literacy, lower birth rates have
  propelled it past neighboring countries
• Qatarsince 99 women and men vote and run,
  majority college students female
• Kuwaitvoting in 2005

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Contd

• 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 Saddams secular regime

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Micro lending

• Grameen Bank has expanded since 70shas 6
  million borrowers in Bangladesh, 96 women

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Trade more than aid

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