PSC 2349-25 - PSC 2349 with Professor Kaplan PDF

Preview

Summary

PSC 2349 with Professor Kaplan...

Description

PSC 2349-25 4/21/2016 Poverty and Inequality Inequality: A Philosophical Question - Utilitarianism - “The greatest happiness or greatest felicity principle” – Jeremy Bentham, 1789 (utilitarianism) - Many people are getting wealthier – this is good because incomes are improving - Rawlsian perspective – The most reasonable principles of justice are those that everyone would accept and agree to from a fair position (social justice) o John Rawls, 1971 o What would equalize opportunity for everyone involved v. giving the same weight to everyone o Veil of Ignorance – one can only consider the morality of an issue when they do not know what role they will be assigned Professional Sports and the Salary Cap - The Salary Cap is a Rawlsian example because it impartially situates teams and fans as equals (NFL, NBA, MLS) - Promotion and Relegation System – A utilitarian strategy o Maximizes the utility of all teams and fans together o European Football Inequality: A Development Question - Inequality creates economic incentives - Some people would argue that inequality is necessary in society because it would spur proficiency in economic growth – necessary to drive wealth within the economy - “Rising tide that lifts all boats” - Currently, the US is in a period where there is an extreme level of income inequality o Income concentration at the top might be a necessary condition for improved living standards at the bottom - Utilitarian view Addressing Poverty: When is International Aid Effective? Finance Gap Explanation (1960’s-1980’s) - Poverty results from insufficient physical and human capital - Investing in manufacturing industries would generate growth and rising per capita incomes - International aid should make up the gap between planned investment and available settings

-

-

Governments should bring in high quality institutions and end corruption o The answer is institutions o Multilateral institutions didn’t work because there was too much corruption, lack of skill level and property rights – better bureaucracy that can provide better public services Emphasis on property rights protections

International Aid is Ineffective Market Based Approach (2000s) - Aid is ineffective because of the multilateral organizations that manage aid provision o Aid breeds corruption - Should use market mechanism to better target developing countries, and provide alternatives to bureaucratic prerogatives - Common pool aid that provides vouchers to poor communities that can be exchanged for development services of any aid agency; break the link between aid money and using a particular agency’s bureaucracy. Vouchers could be traded in a secondary market, too China’s Recent Infrastructure Investment - Historic development approach from 60’s and 70’s focused on infrastructure - During the Washington Consensus era, many developing countries had infrastructure development deficits o Easier to cut big infrastructure projects o China sees this - Over the last few decades, China has had an infrastructure revolution - its economy has complete over-capacity of the infrastructure economy - The Chinese model is the initial model of the 60’s and 70’s o Less emphasis on transparency and thinks that may go along with institutional aid o Non-interventionist approach in international affairs o Hands-off approach of sovereign affairs - Beijing Consensus characterized by non-interference -...