Development Flashcards

Question

Resource Curse What are the two options for managing a resource (oil)

Answer 1

1. Conservative strategy: this recognises the danger of dutch disease, the potential for corruption and the volatility of global oil prices. 2. Big push - revenues are used to support investment for growth

Answer 2

Businesses spreading geographically and the race to the bottom (wages)

Answer 3

Rather than being truly liberal english led trade in the 18th and 19th century was heavily regulated: Protected markets, monopolies, price controls, tariffs, capital constraints.

Answer 4

Trade was liberalised between rich countries, especially through the General Agreement on Trade and Tariffs (GATT) and later the WTO.

Answer 5

Newly industrialised countries: Developmental states, important role for national government, not unfettered by free market economies.

Answer 6

1961 S.Korea income was $82 per person, Ghana's was $179. Nkrumah proclaimed Ghana to be "free forever" and USAID said Korea was a 'bottomless pit'

Answer 7

1950 - 53 (Korean war) post war recovery: S.Korea had one of the world's fastest growing economies in the second half of the 20th century.

Answer 8

They were trapped in persistent poverty, amongst poorest country in the world and widespread famine was commonplace.

Answer 9

S.Korea's post war leader, General Park Chung-Hee, had goal of raising per capita income 1000 USD by 1981, had 5 year economic plans, per capita grew phenomenally and the country was obsessed with economic growth.

Answer 10

The absence of natural resources, long term policy, geo political support. This process could not easily be replicated in sub saharan Africa.

Answer 11

"freedoms are not only the primary ends of development they are also among its principle means" (Sen)

Answer 12

1. Primitive communism e.g. Hunter gathers 2. Feudalism e.g. Medieval Europe 3. Capitalism e.g. Home grown, Western Europe, Imposed arrival, colonial territories 4. communism Marx saw communism as the end stage.

Answer 13

The GLF took place between 1958-63, emphasised production and technological and organisational change, established peoples communes, rural industrialisation and collective feed agriculture. GLF famine c.30m deaths

Answer 14

Took place between 1966-76, sought to reconfigure social relations and mental conceptions of the world directly (failed)

Answer 15

Exists when an entity can survive or continue its activities without external assistance or international trade: Trade embargo by West, cold war, isolated for USSR, Cuba and Vietnam, self sufficiency, Began to end in 1979.

Answer 16

Town and village enterprises and state owned enterprises.

Answer 17

pre 1970s - debts were small and manageable, 70s most heavily indebted nations owed $18bn by 87 it was $402bn and today it is $2.7 trillion.

Answer 18

Industrial world's dependency on oil and gas, force and power of financialism and global capital flows, rise of new poles of capital accumulation, e.g. Gulf states. OPEC countries fixed price of oil. prices dramatically increased in 1973-74 and 1979-80 following OPEC embargo. Rich and poor nations hit by oil shortage and dramatic increase, price rose 280%.

Answer 19

Linking to the 'other side' of the debt crisis. The OPEC countries gained massive increases in income, this money was recycled through US banks and lent to developing economies.

Answer 20

some money was used to modernise African economies in a hope to 'kick start' development.

Answer 21

Money was also used to meet basic needs e.g. health care and consumption, there was some irresponsible borrowing however, e.g. by dictators on military equipment.

Answer 22

First traced to higher oil prices in 73-74 and 79-80, decrease in export prices and volume associated with global recession 81-82. Problems of domestic economy management, high interest rates in 80-82.

Answer 23

Failure of modernisation - state sector proved inefficient, Comparative Advantage, Ideological project - followed neoliberal development model.

Answer 24

outflows of capital to finance debt, decline in average GDP growth from 6.3% per year (1965-80) to 1.7% per year (1980-90), in 1988 1bn people were chronically underfed. Manufacturing declined, in Nigeria people employed in the clothing sector went from 200,000 to near extinction. Developing countries debts grew.

Answer 25

loans paid in hard currency, value of developing countries exports decreased, refinancing of loans, had to get new loans in order to pay off the interest from the old loans.

Answer 26

lost a decade of development according to Jeffery Sachs. As real wages fell 50%.

Answer 27

Reform (SAPs and Washington consensus) Relief (HIPC, debt cancellation) Growth (2000s Natural Resource Boom)

Answer 28

$97 bn of debt was cancelled in poor countries since 1996, mainly in HIPC. Negatives: 1. not all poor countries benefited 2. vulture funds, 3. re-accumulating debts.

Answer 29

Rapid population growth explained by application of technologies, widespread poverty linked to SAPs.

Answer 30

Informal sector, global south increasingly urbanising and diverse range of urban income earning livelihood activities commonly defined as being part of an 'inform sector' have arisen following the liberalisation of economies in the global south (Lindel, 2010)

Answer 31

They account for 83% of labour force in Zambia, 77% in Kenya and 88% in Malawi. SAPs had negative impacts on industrial development.

Answer 32

colonial history, Portuguese rule, struggle for independence began in 1960, became independent in 1974, civil war 1974-92. Peace dividend, Frelimo has won all elections - goal of socialism abandoned, big aid flows, economic performance has been good.

Answer 33

celebrated as a model of development in Africa. Economic liberalisation has led to 'good performance' 2005-09 annual growth average 7.6% of GDP, income per capita increase average of 5% per year, but still 185th on HDI.

Answer 34

overcrowding, inadequate services, household income $144 USD per month with 6.9 people per household. food insecurity due to a lack of access to sufficient affordable food, poor dietary quality and undernutrition.

Answer 35

growth figures used to frame 'market friendly' as being 'success', increased consumption of foreign goods.

Answer 36

2008-10 food riots spread across Maputo, liberalisation of economy means imports are cheaper than locally produced food/goods. Increased vulnerability to global price variation.

Answer 37

That depends on the indicator used. GDP rate of 5-7% for over a decade but it has never left the bottom 10% of HDI, 50% below the poverty line but it does validate the neoliberal model.

Answer 38

applying conditions to aid e.g. SAPs. | Donors 'buy' good policy, assumes aid is altruistic and donors know best. Requires local ownership.

Answer 39

USA Reasons: National security - counter terrorism has been a focus since 2001 Humanitarian concerns - less suffering = better world Commercial interest - investment

Answer 40

Israel, Pakistan, Afghanistan, Iraq and Egypt | Are they the most deserving?

Answer 41

Poverty Reduction Strategy Papers enhance ownership of conditions, response to unpopular SAPs, encourages 'good governance' Appearance rather than a reality of local ownership.

Answer 42

universal values - are there really such things? rise of NGOs UN unambiguously good?

Answer 43

Ignores important issues, does not address inequality, absolute or relative change? Lack of African progress is hidden, reinforces neoliberal context.

Answer 44

Strong power dimensions, market led, places emphasis and responsibility on individual states, reinforces 'Africa rising' narrative, China contributed 2/3's of worlds reduction in extreme poverty - without them MDGs would have been far worse off.

Answer 45

"enable ruling class to survive and dominate through the state and to reconstruct economies in ways which project a new capitalist trajectory and class structure"

Answer 46

local elites have replaced colonial elites in countries such as S.Africa and Zimbabwe, sometimes work with foreign interest other times they oppose them, elites maintained in power through processes of 'passive revolution' explains how elites take advantage of their intermediary relationship e.g. corruption and aid.

Answer 47

the fight against corruption is a part of the fight against poverty, not just because corruption is wrong and bad but because it really retards development (Wolfowitz)

Answer 48

A bribe is a transfer of money from one person to another and does not necessarily have negative effects on economic efficiency and growth. Instead it is an act of redistribution.

Answer 49

e.g. used car trade in Mozambique - economic growth occurs alongside corruption.

Answer 50

modernisation, development state, debt and structural adjustment, then globalisation, post development?

Answer 51

social change can result from adopting the characteristics of more advanced societies, including a centralised powerful state, acceptance of scientifically rational norms and transformation of social relations, underdevelopment is a consequence of conditions internal to less developed societies. Rosters 1960.

Answer 52

the state is the main actor in the economy national industries, invests in infrastructure, import substitution and high tariff barriers e.g. post war south korea. development state, industrialisation programme steel mills, modern shipyards, cars etc. State led economic planning and infrastructure investment. controls on consumption of imported goods and foreign exchange spending.

Answer 53

The theory underpinning structural adjustment, market is main actor in economy. Public sector is reduced. Trade barriers lowered (globalisation). E.g. Mozambiques neloiberalisation - declining formal 'modern' employment - dependency on natural resources. Some increase in opportunities to consume, GDP growth with increased income inequality. Investment e.g. BRICS - persistent widespread poverty and inequality.

Answer 54

Private individuals playing major role in development

Answer 55

Failure if western discourses and theories of development, state models of development had led to stagnant growth of hyperinflation, neoliberal models of development had led to intolerable social inequality. OR is this a problem of western values? are there universally agreed principles fro development?

Answer 56

denote both the failure of conventional level (in africa) and the alternatives. Positions development as a failed attempt at modernisation of the global economy. Strategies (e.g. SAPs) and institutions (e.g. IMF & WB) dominated by politics and values of global north have failed in global south.

Answer 57

development may be viewed as a smokescreen which conceals the need for more fundamental and radical changes to the global economy. Development is hegemonic western capitalism and alternatively solutions are required to lift poorest members of global society out of poverty.

Development Flashcards

(87 cards)