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Poverty and Development

Poverty and Development. Addressing Poverty and Inequality. Socialism and Communism -Redistribution of assets, equality, state control State sheltered industrialization, export-led growth -Subsidies, tariffs, private property, but large role of the state Washington Consensus

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Poverty and Development

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  1. Poverty and Development

  2. Addressing Poverty and Inequality Socialism and Communism -Redistribution of assets, equality, state control State sheltered industrialization, export-led growth -Subsidies, tariffs, private property, but large role of the state Washington Consensus -Liberalize: open trade, remove inefficient state support, remove controls on capital flows, cut the size of the state, privatize, restructure Keynesian State -Social safety nets

  3. Development Assistance • Official Development Assistance (ODA) • Bilateral • Multilateral: through international organizations • Private foundations and NGOs: • Ted Turner, Bill Gates Foundation, Hewlett Packard Foundation, Conservation International

  4. Meet the Fakers? 2000 ODA as Percent of GDP

  5. Million Promises to Keep?

  6. World Bank • Established by Bretton Woods Agreement (1944) • Dominated by largest donor countries • Assistance for restructuring and development • Infrastructure • Structural Adjustment Loans • Education, environment • Type of Assistance • Loans • Grants • Increasingly intrusive policy conditionality

  7. World Bank Project • Sardar Sarovar Dam, Narmada River, India

  8. Financial and Enterprise Sector Adjustment Loan (FESAL) Adjustment agriculture: $125mn Market development: $30mn Education: $14mn Access to healthcare: $26 Social protection: $24 World Bank: Total Lending to Bulgaria

  9. United Nations Development Programs (UNDP) • Core UN institution • Controlled by the UN General Assembly • Less resources compared to WB, IMF • Technical assistance for development • Capacity building • Limited technology transfer • The UN Human Development Index (HDI) • Measures well being • Alternative to Gross Domestic Product (GDP)

  10. Paradigms of Development • Market Driven Growth • Objective: increase Gross Domestic Product (GDP) • Means: free market, get prices right, liberalize, modernize, new technology; more supply of food; • Example: Green Revolution • Sustainable Development • Focus on human well-being, both material and non-material • Means: community control of resources; empowerment of women, marginalized people, education, access to finances; entitlement and fairness • Example: State of Kerala, India

  11. Practical Solutions?

  12. Reform Domestic Institutions • Corruption • Judicial system • Social safety nets • Human capital • Social capital • Encourage savings and access to credit

  13. Jubilee 2000 Jubilee 2000: “A Coalition that brought together unlikely alliances like Puff Daddy and the Pope; Jesse Helms and Bono; the Sisters of the Sacred Heart and the Spice Girls.”

  14. The Malaria pandemic -30mn.cases/year -1mn. deaths -$12bn in lost GDP -90% in Africa Address Health Factors

  15. The Millennium Development Goals

  16. The Millennium Development GoalsInitiative of Kofi Annan and UN Agencies By 2015: • 1. Reduce by half extreme poverty and hunger • 2. Achieve universal primary education • 3. Eliminate gender inequality in primary and secondary education • 4. Reduce by 2/3 child mortality under 5 years of age • 5. Reduce by ¾ ratio of women dying in childbirth maternal • 6. Halt, begin to reverse spared of HIV/AIDS, malaria • 7. Ensure environmental sustainability • 8. Develop a global partnership for development

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