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This article explores why we should care about the developing world and the ethical, political, and security issues related to poverty. It discusses the role of developed and developing countries, measures of development, and the impact of globalization on poverty. Additionally, it examines the challenges faced by the bottom billion and the factors that have left them behind in the era of globalization.
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SHOULD, CAN, AND WILL COUNTRIES WORK TOGETHER TO ALLEVIATE WORLD POVERTY? Why should we care about the developing world?: What are the ethical issues involved? Who secures the UN charter’s provisions regarding human rights? What role does the developing world play in creating poverty? What role does the developed world play? What are political issues involved in dealing with poverty? What are the security issues involved?
IS GLOBAL POVERTY AN INTL PROBLEM? HOW DO WE MEASURE DEVELOPMENT IN FOREIGN COUNTRIES? What is “development”? Is it a linear concept? Is there a western bias to thinking about development and what counts Various important measuresMeasuring national wealth: GDP vs GNPWhat’s the better measure? GDP vs. per capita GDP… Both are goodMarket exchange rates vs. PPP… PPP is better Units of analysis: Do we care about poor countries or poor people? Inequality and Gini measures.
WHERE DOES DEVELOPMENT STAND? Evidence from the Economist (2007):Who are the Global Titans?
What do we know about the pathway to development? Why is it harder to develop late? Think about starting a store before vs. after Walmart+Amazon… Is global inequality due to some countries having the wrong culture? Modernization theories about the Prot. work ethic, the PeaceCorps, and exchange programs haven’t changed things very much. Is global inequality a legacy of imperialism (mercanistilism), forced dependency (enclave economies), and debt? If so, “import substitution,” (ISI) domestic diversification of production, Marxist strategies, (satisfying demand vs. capacity to pay), and anti-imperialist trade blocks may be the answer But then, why don’t most these strategies work (for very long?) Is global poverty a question of increasing domestic access to investment capital so that economic modernization can happen? If so, dealing with civil war, ending “rent seeking” and corruption at home; increasing foreign aid & know how, micro-lending, foreign direct investment, and free-flowing international finance are all part of the answer What happens when you increase trade and access to comparative advantage? If so access to international markets (WTO) and domestic strategies to maximize trade (ISI morphed into Export-orientated growth and state capitalism)
WHAT ABOUT THE “BOTTOM BILLION FIFTH? WHY HAS GLOBALIZATION LEFT IT BEHIND? David Collier’s analysis Most, but not all are in Africa. One is seven children in these 58 countries dies in their first year of life; life expectancy is <50. Why? Developing country growth—70s: 2.5%; 80s and 90s: 4%; 00s: 4.5%The bottom billion—70s: .5%; 1980s: -.4%, 1990s: -.5% The civil war “trap”: 73% of the people in the bottom billion have recently gone through a civil war. Why was it that Hobbes thought that a brutal leviathan was better than a stateless society? Being trapped by geography: Land locked, lots of neighbors, and lots of lootable wealth (the curse of resources) Being trapped by demography: Too many young men and ethnic conflict. Religion and access to safe birth control Bad governance choices and vicious circles: Bad government = no investment = rent seeking = bad governance. Notice that regime type is less important at this level of development than the orientation of the govt. towards promoting development and minimal equity. Setzler would add market size to Collier’s list.
