Why are people still poor in the 21st Century?

Question 1

Why minimise poverty?

Answer 1

• Development as capability expansion
• Sen argues that human freedom (like
  human rights) is both intrinsically
  and instrumentally important

Question 2

How is development a capability expansion?

Answer 2

- Kant said that rational human being
  should be treated as an end in
  themselves and not as a means to
  something else
    - Therefore the fact that we are
      human has value in itself
- Amartya Sen argues that a focus on
  economic growth often treats humans
  as a means of development rather than
  an end

Question 3

What did Sen mean by freedom if both intrinsically and instrumentally important

Answer 3

- Intrinsically important  - Freedom is
  important for its own sake. It is a
  goal in and of itself
- Instrumentally important - Freedom is
  important as a means to achieving
  something else
- Economic growth and development also
  are seen (by some political actors)
  as being intrinsically important
- Sen thinks that economic development
  is instrumentally important. Economic
  prosperity is but one way to enrich
  people’s lives

Question 4

What is absolute poverty?

Answer 4

“A standard of poverty that is based on an income level or access to resources, especially food, clothing, and shelter which are insufficient to keep body and soul together”

Question 5

What is relative poverty?

Answer 5

“A standard of poverty in which people are deprived of the living conditions and amenities which are customary in the society to which they belong”

Question 6

What is the status quo in regard to poverty?

Answer 6

Poverty is the rule rather than the exception over time

Question 7

What measures of wealth and inequality are used?

Answer 7

• GDP
• PPP
• GINI

Question 8

What is PPP?

Answer 8

A calculation of purchasing power that takes account of the relative cost of living and the inflation rates of different countries

Question 9

What is GINI?

Answer 9

• Measure of inequality
• “The extent to which the distribution
  of income or consumption expenditure
  among individuals or households
  within an economy deviates from a
  perfectly equal distribution

Question 10

How do realists explain patterns of development?

Answer 10

- No explicit theoretical approach per
  se because development is not the
  focus or power (realism)
- When explaining differential
  development the focus is on
  merantilism
    - 16-18th European theory
      advocating government regulation
      to enhance state power
    - Encourage higher tariffs and
      positive balance of trade
- Mercantilism thus sees a strong role
  for the state including in
  intervention/protectionism

Question 11

How do liberals explain patterns of development?

Answer 11

• Focus more on economic liberalism
• Policy approach is more market
  orientated, which is argued to be
  self regulating
• Often associated with modernisation
  theory
  
  • All countries go through roughly
    similar stages of development
  • Walt Rostow’s stages of
    development
  • State governments should
    facilitate economic development
    through minimal regulation
  • A structuralist approach to
    development

Question 12

What are Walt Rostow’s stages of growth?

Answer 12

• Traditional socities
• Preconditon for takeoff
• Takeoff
• Drive to maturity
• High mass consumption

Question 13

What are the major critical theories in regards to development?

Answer 13

• World Systems theory
• Environmental theory
• Neo-Marxists

Question 14

What is the World Systems theory?

Answer 14

• Critical development theory
• Sees global
  division of labor
  
  • Core (West)
  • Semi-peripheral (Brazil, China,
    India)
  • and peripheral areas (Russia,
    most of Africa)

Question 15

What is the Environmental theory in regards to development?

Answer 15

Environmental theorists critique focus on growth as being unsustainable and a primary cause of global environmental degradation

Question 16

What is the Neo-marxist approach to development?

Answer 16

- Neo-Marxists often focused on
  external rather than internal
  explanations - Dependency theory
    - Resources flow from the periphery
      to the centre
    - Dependency theory
        - Colonial powers forces
          specialisation
        - From colonialism to
          neo-colonialism
        - Northern developed states
          exploit lesser developed
          Southern states for their
          primary commodities
        - The World Bank, IMF, and
          other IOs help perpetuate
          inequalities through tough
          loan conditionality
        - Remedy is to delve own
          economy through
          import-substituting
          industrialisation (autarckial)
        - Therefore an increased role
          for the state in the economy