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Development and the state summary

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  • May 26, 2020
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  • 2019/2020
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Chapter 1. Setting the Stage: What Is Development?

What is development?

 Types of development
o 1. Political
o 2. Social
o 3. Economic

 Overall, development encompasses change, growth, progress, or some sort of evolution
of human condition

 After WWI: meanings of development were focus on rebuilding economies in the
developed world as a way of preventing the rise of communism

 Amartya Sen
o Expanded def of development, advocating a human-centred approach to development
o Freedom was crucial to development since it enhanced individuals’ well being
o Highlighted 5 basic freedoms
 Political and participative freedoms
 Economic opportunities
 Social opportunities
 Transparency guarantees
 Protective security
o Development = the process of enlarging people’s choices

Inequality and development

 World bank development indicators indicate
o Quality of life of citizens in the developing world is inferior to that of citizens in the
developed world
o Gap btwn women and men in terms of earning power, pol power and education: much
larger in the developing world
o Growth in developing world is very unevenly distributed

 Dudley Seers

 Hollis Chenery et al.

 Inequality has major implications for both social and economic development
o 1. Countries w high levels of inequality have less stable and efficient economic systems,
which can stifle economic growth
 One reason for this is that such countries have lower levels of aggregate demand,
which slows down economic growth
o 2. Inequality also perpetuates poverty traps
 Slows pace of poverty reductions bc it limits opportunities for social mobility and
access to health care and education

, o 3. Inequality in health care can affect LT development
o 4. More prone to conflict

 When distribution of land is uneven, which explains why inequalities persist (case in
many developing countries)

 Inequality can decline by expanding education and by making public transfers to the
poor

Social inequalities

 Feminization of poverty
o Women are more likely to die before the men in developing countries
o More likely to be malnourished than men
o Discrepancies in education
o Mostly concentrated in low-salary fields: gendered division of labour
o In aftermath of natural disaster, women are also more likely to suffer LT consequences
than men

 Indigenous people are worse of than non-indigenous populations

 Disabled people are also worse of than the general pop

 Major shift occurred w the rise of sustainable development approaches
o By the 1980S, it became understood that development needs to be sustainable
o Development that can meet the needs of the present without compromising the ability
of the future to meet is own needs
o Result of growing awareness of global links btwn environmental problems, poverty,
ineq and well-being
o Recognizes that ecology and economy are interwoven locally, regionally, nationally and
globally

How is development measured?

 Development indicators have evolved since the 1960s
o GDP growth was first used to measure development

 GDP
o = total goods and services produced by a state in a given year

 GDP per capita
o = GDP divided by a state’s total population
o Critized as measure for economic development bc it does not always offer a full picture
of a state’s developmental landscape

 Purchasing power parity (PPP)

, o Calculating differences in the total cost of the same basic goods

 Drawback of focusing on economic growth
o Reveals very little about societal distributions of wealth
o not reveal how economic gains or losses affect individual citizens

 This is why some observers have turned to alternative indicators to capture quality of life
o Sen
 Argues that development could not be based on GDP per capita bc it did not take into
account what an individual’s capabilities are
 Influential in formulating the HDI
o Human Poverty Index
 Goes beyond looking at growth rates
o Gender Development Index
 Goes beyond looking at growth rates

 HDI
o Takes into account many diff dimensions of development
o Prominent measure of development
o 3 dimensions
 1. Health
 2. Education
 3. Living standards

 Development is concerned with clear goals and targets
o Recently most common way to measure development is through the achievement of
the Millennium Development Goals (MDGs)
o = set of indicators and outcomes that can be measured and compared
o Critics
 MDGs were created exclusively by industrialized countries without much consultation
 Approach has been mostly top down

 Gini index
o Measures inequality
o 0 has perfect inequality
o 100 is perfect equality

 It is true that economic growth is not a panacea for a developing state’s problems

What is the role of global forces?

 Rules are being dictated by international inst and MNCs

 INGOs and intern donor agencies also have a significant impact on the developing world

, Bringing in the state

 Hurdles to development
o Disease
o Instability
o Corruption
o …

 State
o Max Weber = human community that successfully claims the monopoly of the
legitimate use of force within a given territory
o Statehood involves the legitimization of violence
o Concept of statehood emerged in 16th and 17th century w the Peace of Westphalia
 Codified external sovereignty btwn pol entities

 state institutions evolved out of the process of state formation, serving to help states
meet these criteria and provide security for their citizens and generate revenue

 Most observers agree that the development of strong inst is critical for lifting states out
of poverty, and strengthening human capabilities

 Scholars also notes that the state can play an important role in coordinating, steering
and persuading economic agents to accomplish things
o ‘It is the only agency capable of this task on a national basis’
o ‘only entity that has the structure and capacity to do so’

 Joseph Stiglitz
o For economic develop to take place, technical solution focused on getting prices right
are not enough
o It is also necessary to strengthen the judicial inst in order to provide the legal
infrastructure and regulatory framework needed to encourage economic growth
o Economies need an institutional infrastructure in order to work
o YET states developing world often criticized for being part of problem not of solution

 Focus on state inst can introduce chicken and egg problem
o Some studies address this endogeneity problem or loop of causality btwn 2 var of
interest, others do not

 Need for inclusion and consensus building

 Building inst in developing world is no easy task: there is not one size fits all solution

A roadmap

Chapter 2. Theories of Development: Why Are Some Countries
Underdeveloped?

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