4Yyd0001 Introduction To Development Studies Exam Note PDF

Preview

Summary

Download 4Yyd0001 Introduction To Development Studies Exam Note PDF

Description

Revision Week 1 What is development? 

PPT - It is a controversial topic o As progress, industrialization, and modernisation – Harry S Truman o As increasing gross national income/economic growth – World Bank o As a process of expanding real freedom that people enjoy – Human Development, Sen, 1999 o Aiming at reducing poverty and the Millennium Development Goals – Thomas, 2004

Tribe 2008 What is Development? - Sumner, A. and M. o o o

Development as a long term process of structurual societal transformation  Economic changes Development as short-to-medium term outcome of desirable targets  Improvements in perfomance indicators, e.g. HDI Development as a dominant ‘discourse’ of western modernity  Post-colonialism, e.g. North is superior than South

Revision Week 3 Benign dictators vs Ineffective democrats (how does regime type affect Development?) PPT 





Democracy - Only 15% of all countries are full democracies o Characteristics  Electoral process and pluralism  Civil liberties  Political participation  Political culture o Deficiencies  Collective action problem – the tradegy of the commons  Inefficient – congress, legislature, parliament, president, prime minister  Majoritarian – the majority rules Hybird regimes – Competitive Authoritarian regimes – 21.5% o Charactieristics  May come from collasped authoriatian regimes but are not becoming more democractic – Russia  May have eroding democractic institutions but are not fully represetative – Venezuela  Electroal authority controlled by the government  Legislative influence of the opposition is severly restricited, as well as budgetary and policymaking powers  Strong government influence over the election and rulings of the judiciary  Severe government control on media o Why do they endure?  Voter’s voice seemingly expressed through elections  Control of strategic resources  Stronger authoritarian institutions Case Study – Beijing Consensus o Charactirstics  incremental reform  experimentation  export-led growth  state capitalism  authoritarianism o Advantages  Wage compression – low wage level – attracts FDI – Foxconn in China  Discipline firms  Quick and agile – no congress so no need to vote and pass any legislation  Stability and investment – increases investors’ confidence o Costs  Wage compression – labour exploitation  Environmental degradation  Political oppresion

The Rise of Competitve Authoritarianism – Steven Levitsky & Lucan A Way 

Competitive authoritarianism - In competitive authoritarian regimes, formal democratic institutions are widely viewed as the principal means of obtaining and exercising political authority. Incumbents violate those rules so often and to such an extent, however, that the regime fails to meet conventional minimum standards for democracy. Peru under Alberto Fujimori

The Strength to Concede: Ruling Parties and Democratization in Developmental Asia – Dan Slater & Joseph Wong 

 

Authoritian regimes may choose to democratize – ‘concede to thrive’ o Conditions  When they possess substiantial antecedental political resource advantages  Suffer ominous setbacks signaling that they have passed the apex of domination – when there is large scale protest  Pursue new legitimation strategies to arrest their incipient decline Case studies: Taiwan, South Korea, Indonesia and discusses the democractic possibility for China Conclusion: it is possible and wise for China to democratize – ‘the aim is to continue ruling, not necessarily to remain authoritarian’

The Developmental State: Odyssey of a Concept – Chalmers Johnson 

Developed the concept of ‘developmental state’ to characterise the role the Japanese state played (Minisitry of International Trade and Industry) MITI – played in Japan’s extraordinary and unexpected postwar enrichment. Never said or implied that the state was solely responsible for Japan’s economic acheievements.

Is the ‘Beijing Consensus’ Now Dominant? – John Williamson   

The Great Recession raises the question – Is the Washington Consensus still effecitve? Beijing Consensus is not becoming more dominant – due to the costs associated with it But the WashIngton Concensus can imporve in some aspects o To supplement export-led growth with a reserve build-up rather than return to protectionism o Emphasis on capital mobility o Strong Fiscal discipline

Revision Week 4 Introducing institutions  

How do we account for important economic differences? Different approaches o Ignorance – leaders don’t know/ irresponsible  Not necessarily the case – they just want to retain power – predatory state Zaire o Geography – e.g. the ghost acres explaining Industrial Revolution o Culture –e.g. the Protestant ethic  Generalizations – regional differences o Institutions  Rules or generalizable procedures that provide a guide for behavior and that promote predictable patterns of indernation. – James Mahoney, Colonialism and Post-Colonial Development, 2010  Characteristics  Can be both formal or informal  Transcaction-enabling institutions  E.g. propoerty rights and electroal roles

Culute Matters – The real obstacles to Latin American Development – Oscar Arias   

The region is suspicious of new ideas and lacks effective mechanisms to support innovative projects. Latin Americans are among the most distrustful people in the world. Fragility of the Latin American commitment to democracy o Most are hybird regimes – Hugo Chavez – Venezuela

The Political Economy of Latin America – Peter Kingstone  



Latin America nations continue to wrestle with many of the same problems that they have wrestled with for decades – uneven growth with high levels of poverty and the world’s highest levels of inequality. Ineffective state institutions that deliver limited benefits to often a highly restricted minority of the population; and unresponsive political institutions that frequently fail translate citizens’ needs and concerns into compelling mandates for elected officials. Argues that no matter Import-substitution for Neoliberialism, they all need good institutions to work!

Why nations fail? – Acemoglu, D & Robinson, J 



Two Nogales o One in Arizona o One in Mexico o Have similar geographical features and culture o But GDP per capita $30,000 a year in Arizone but only one-third in Mexico They argue that institutions made the difference

Revision Week 5 Institutions and Policy-making  

 

Public policy involves the cooperation of actors, and the alignment of their interests and ideas However, o People rarely cooperate o Mancur Olson, 1965 – (people) obviously also have purely individual interests, different from the common interest. – Free rider problem Collective action entails transaction costs + institution shape transactions costs = property rigths and rule of law Case Study – Taiwan Semiconductor Manufacturing Company TSMC o Coordination  State-led investment + Industrial Technology Research Institute ITRI  Reverse – engineering

Predatory, Developmental, and Other Apparatuses: A Comparative Political Economy Perspective on the Third World State – Peter B. Evans  

Predatory states e.g. Zaire vs developmental States e.g. South Korea The efficacy of the developmental state depends on a meritocratic bureaucracy with a strong sense of corporate indentity and a dense set of institutionalized links to private elites.

Revision Week 6 What is Gender and Gender Studies? 









 

Today’s relevance of gender studies – Women is still a minority! o 64% illiterate people are women o Only 20% representation in parliament (2010) o 80% in South Asia work in informal sector Gender vs sex o Gender – understandings of what it is to be a man or woman and the roles associated with this identify. (men and women) o Sex – biological difference (male and female) Gender & inequality o Women are often associated with reproductive sphere (household care) – little means to resources, education or decision-making power o Men are associated with productive sphere (income generating) Women in Development approach o 50 – 60 – welfare approach – to support women’s role in the reproductive spehre o 70 – 80 – Women in Development Esther Boserup – trying to increase women’s economic activities and access to resrouces o Critique – instrumental argument, still in service of others (?) Gender and Development approach o 80 to present o Raises several issues, e.g. women’s lack of access to resources, women’s lack of sexual wellbeing and decision making o Crtique – social justice argument – people actually believe in the associated roles of women due to cultural factors Gender is not an issue but an analytical lens, all issues can be analysed from a perspective Gender & Policy o Gender mainstreaming – integrating a gender perspective in all policy making o Women’s empowerment – enhancing women’s ability to bring about economic change for themselves

Working with men on gender equality – Caroline Sweetman  

‘Patriarchal dividend’ – advantage that all men have in a society that, openly or otherwise, favours males, maleness, or masculinity. Solutions o Integrating men’s roles as supporters and allies. E.g. programmes should aslo involve and benefit men. o Work with teenagers to change understandings of traditional notions.

I can do women’s work: reflections on engaging men as allies in women’s economic empowerment in Rwanda – Henry Slegn, Gary Barker, Augustin Kimonyo 

Workshops in Rwanda have some improvments in gender relationships. However, effects are limited due to unchanged social norms and cultural notions. o E.g. housework has not lowered for women even if they go to work o Earner more income might even lead to higher domestic violence

Revision Week 7 Why do class and race matter? An agenda for thinking about ‘race’ in development – U. Kothari   

Race is often neglected when talking about development – people don’t want to provoke the memeories of the colonial period Dates back to the Enlightment – Eugenics Even now, there are stereotypes, e.g. Africa is often associated with widespread famine - The White Man’s burden – William Easterly – Even with aid Westerners often picture themselves as the saviors of the third world.

The ‘gender lens’: a racial blinder? – S. White 

Gender and Development approach may not be effective when women from third world and first world are considered on an equal level.

Revision Week 8 Why talk of population? 

 



 







Is the world over populated? o Environemtal pollution o Global warming – The population bomb is back, with a global warming twise – Betsy Hartman & Bajajas-roman – claims high fertility is the cause of global warning. o Resource depletion o Social and political tension Overpopulation in poorer regions must be stopped? – so poor migrants won’t flush into affulent areas Thomas Malthus (1766-1834) o Arithmetic food production and geometric population growth – require checks – can be either natural (famine) or war o Anti-charity Charles Darwin (1809-1892) – Agrees with Malthus o survival of the fittest o Eugenics o Racial theory – mentally disabled, physically disabled, colored, homosexuals Neo-Malthusianism - The Population Bomb – Paul Ehrlich o Aid should be conditional to proactive population policies Is the world overpopulated? o Population growth = natural increase (birth – death) + net migration o Poverty as a result of overpopulation? – some argue Rwanda genocide is caused by this, however, the first genocide happened before population pressure Development itself is needed to reduce poverty o Social policies can help to manage large population, e.g. pensions, education, decent reproductive healthcare o Demographic transition theory – fertily rare drops as a result of improved sanitation conditions and higher living standards – does not always work – Pre-war Japan, both birth and death rate fell even with low living standards – Fatal Conception Matthew James Connelly Why do women have more children than they can feed? – demographic trap & dividend o Or do they?  Can’t afford contraceptive / men forbid them to use – The woman in the violence : gender, poverty, and resistance in Peru – M. Alcalde  Sexual inequality and lack of reproductive healthcare o Why?  High infant mortality rate to compensate for unexpected deaths  Religious reasons  Social norm – respectable to have more children Are population policies successful? – Free choice of Poverty alleviation? Population politics in Peru under Alberto Fujimori – Jelke Boesten o Not in Peru – forced sterlization under Alberto Fujimori o Peruvian government implemented a nation-wide family planning program – rural and indigenous women were sterilized according to a quota system. o Local doctors believe they are doing it for indegionus women’s good

Revision Week 9 Development and Participation: Reaching the Poor  







The poor shall no longer seek the State for help. The State shall go where poverty is. The Economics of Slums in the Developing World - Benjamin Marx, Thomas Stocker, and Tavaneet Suri o Massive slum has become a problem o Problems with policies  Slum clearance does not help  Aided self-help – slum upgrading – unsustainable o Solution  Government willingness  More data collection Efficiency – reduce cost o Aravind Eye Hospital in India  High throughout – economies of scale Equitable redistribution o Bolsa Familia in Brazil  ¾ benefits reach poorest quintile Reachable innovation o M-Pesa in Kenya  Mobile banking for people who don’t have access to regular banks  Use mobile phone technology – easily accesible

Revision Week 10 Good enough governance? – The role of governance in development 







What is governace o Rules and norms that determine decision-making power o Entails relationships of accountability o Effective delivery of goods and services Why is good governance important? o International legitimiacy o Political stability o Aid and cooperation o Investment ratings, e.g. Standard Pure Good governance o Accoutable o Transparent o Responsive o Equitable and inclusive o Effective and efficient o Follows the law o Participatory Good enough governance o Short-term governance that requires short-term effective policy – not to be too ambitious o Tradeoffs – opportunity between choices , e.g. promoting decentralization leading to more inequalities o Politics matters – different incentives and motivations

Good Enough Governance: Poverty Reduction and Reform in Developing countries - Merilee S. Grindle 

Good governance - A condition of minimally acceptable government performance and civil society engagement that does not significantly hinder economic and political development and that permits poverty reduction initiatives to go forward – means to set priorities

Revision Week 11 How do public fiances work? Why does it matter?  

Cornerstone of good governance – faciltate EG, distirbution of welath Important benchmark to obtain o Poverty reduction packages (PRSP) o IMF loans o EU memebrship o Investment and credit rating

What is good fiscal governance?      

Sustainablity – balanced public finances over time Efficiency – investments yield good returns Equity – representative income distribution Stability – predictable revenues Adaptability – capable of adjust to economic shocks Transparency – accoutnable management

Important for all countries as they are vulnerable to external shocks 



Problems o Contraction of tax revnues o Unexpected expenses – bailouts, wars o Global financial crisis Solution o Cut G? - redistributive consequences o Raise tax – to whom? o Defalut debt? o Print more money? o Reallocate public expenditure to more cost efficienct sectors?

Tradegy of the commons   

how to provide/allocate public resources through collective mechanism? Every agent wants to spend but no one wants to pay for it Left to own devices, incentive to cheat

Common pool problem   

Tax payers pay taxes to fund specific projects The government should divide the money all over the territory But the government only spends money on certain groups

Principal-Agent problem – The Politics of the budget process – Carlos Scartascini & Ernesto Stein  

Voters – politicains – bureaucrats Inconsistencies between the incentives of the agent (an elected official) and those of the principal (the people who elected the official)

Public Expenditure Management – Political Economy of Fiscal institutions – Von Hagen    

Strenghten fiscal discipline – Ex Ante rules: numerical constraints on certain budgetary aggregates Agenda setting powers – centralized decision making Information transparency Problems

o o o o

No authority to enforce agreements Institutional Stickiness – rent seeking, military spending, extra spendig before elections Short term policy – incentive to leave huge deficit for successors Lack of accoutability

Revision Week 12 A blessing or a curse? Managing natural resources A blessing?  

$10 a barrel in 1999 to $120 in 2009 Rapid economic growth in resource rich countries – ability to accumulate reserve

Tragedy of commons  

Common resources over-exploted Everyone wants to spend but no one wants to save for a rainy day

Resource curse       

Economic reliance – other sectors inefficient and uncompetitive Bad fiscal management – high deficit; revenue subject to volatile price changes Over-reliance on revenue generated instead of taxation Appreciated exchange rate + lack of diversification + retainment of highly educated labor = Dutch Disease Environmental damage Rent seeking state + Weak institutions, e.g. less budgetary transparency Undermining democracy – authoritarian tendencies – hybird regimes in LA

Solution      



Improving fiscal and monetary institutions Economic diversification Natural Resource Funds – savings fund to smooth revenues or to anticipate crisies Transparency and accountability initiatives – NGOs Direct cash management – redistributing benefit directly to citizens, Alaska Private ownership – An alternative solution to managing mineral wealth – Erika Weinthal; Pauline J. Luong o Encourages both the state and entrepreneurs to demand and supply strong institutions  Individuals want to protect their property  Governments want to regulate and extract revenue o Not a short term remedy o Not unverisally applicable Hold more foreign reserve – The special dilemma of the petro-state – Karl, Terry L o Keep petro-dollar outside the economy to prevent appreciation in the real exchange rate

Revison Week 13 How do markets work? – The Need of Institutions The economic problem – Heilbroner, R 



Limited scarce resources vs unlimited wants o How to produce? o What to produce? o For whom? 3 ideal types to produce by using land, labour, capital o Planned – have difficulties assessing people’s needs + waste o Traditional – hereditary o Market – order and efficiency

Market – a system for allocating resources that is   

 

Decentralised Non-authoritative Governed by prices – mediated by the relation between D&S o Price signal o Incentive Interactions betwwen rational individuals Markets do not emerge automatically, creating markets is conflictual

Goods    

Effie...