Mid-Term

Question 1

Third World

Answer 1

Development is difficult to define and measure.
- Conceptualizing Poverty
- Consider Different Segments of The Population
- Development as an Ideology of The “Good Life”
- Different Levels of Industrialization

In 1952, Alfred Sauvy used the term “Tiers Monde” (Third World) to refer to countries outside the two major power blocs of the Soviet Union and the West.

The term “Third World” had parallels to the Non-Aligned Movement (NAM), which brought political unity to the group of countries outside the two superpower blocs during the Cold War.

Question 2

NICs

Answer 2

In the 1970s, a new term emerged as a result of economic transformation among several countries formerly considered part of the “Developing World.”

These countries include Hong Kong, Singapore, South Korea, and Taiwan.

More recently, countries like Brazil, Chile, China, India, Mexico, Thailand, and Vietnam have been identified as “Emerging Economies/Markets.”

NIC Status is determined by 4 criteria
1. Manufacturing Contributes 30% of GDP.
2. Manufactured Goods Are 50% of Exports.
3. More People Are Employed in Industry Than Agriculture.
4. Per Capita Income of US $2,000 (1991).

Question 3

SDG vs. MDG

Answer 3

MDG
- At the Millennium Summit in September 2000, world leaders from both developed and developing countries agreed on a set of development objectives that were to act as a framework for official development assistance between 2000 - 2015.

• The MDGs constituted 7 objectives. !!!?
• MDGs Represented an important shift in the global discourse by signalling that development was to be understood as “Poverty Eradication.”
• However, MDGs excluded issues like democracy and human rights.

SDGs
- As 2015 approached, in the context of growing awareness about the looming climate crises, global leaders set about negotiating a second organizing framework, known as the Sustainable Development Goals (SDGs).

• 17 Goals + 169 Targets –> Coordinate development efforts until 2030.
• The primary principle of the SDGs was “Leave No-One Behind.”
• Diverged from MDGs in 3 major ways.
  1. Inequality Appeared on Global Agenda For The First Time.
  2. Economic And Social Development Was Integrated With Environmental Sustainability.
  3. Global Partnership With Developing Countries Was Emphasized. –> In the context of China.

Question 4

Colonization And High Imperialism

Answer 4

Colonization: A system of settling and occupying a specific territory with people ruling over other people.

• “White Mans Burden”: The idea that is was the duty of “Western” and “White” countries to “Civilize” and “Colonize” non-Western and non-White peoples around the world. –> Portrays imperialism as a noble mission aimed at educating supposedly “Inferior” races.

High Imperialism: Period from the late 19th century to the early 20th century when major European powers aggressively expanded their empires through colonization and economic domination of other regions around the world.

• In this era of “High Imperialism,” Africa occupied centre stage. –> Drew non-state actors into the process.

Question 5

Rostow

Answer 5

Stages of Economic Growth
1. Traditional Society –> Characterized by agriculture and a predominantly rural economy.

2. Preconditions For Take-Off –> In this stage, particular conditions emerge that facilitate economic growth and industrialization. These conditions include improvements in infrastructure and the establishment of basic education systems.
3. Take-Off –> Marks the beginning of sustained economic growth and industrialization.
4. Drive to Maturity –> During this stage, the economy experiences further diversification and industrialization. There is continued investment in education and technology.
5. Age of High Mass Consumption –> The final stage is characterized by a mature industrial economy with high levels of consumption and a focus on advanced industries and services.

Question 6

Karl Marx

Answer 6

Karl Marx argued that persistent inequalities among social groups are primarily due to historical constructions and the capitalist economic system.

Marx argued that capitalism inherently leads to exploitation and inequality. –> Thus, workers should own the means of production.

Marx viewed history as a series of class struggles.

Question 6

Adam Smith

Answer 6

Adam Smith argued that when individuals pursue their self-interest in a competitive market economy, they are led by an “Invisible Hand.”

Smith emphasized the importance of individual freedom in economic decision-making.

Question 7

David Ricardo

Answer 7

David Ricardo made the case that countries should specialize in the production of goods they were comparatively better at, given available capital, labour, and land. –> This is the Theory of Comparative Advantage.

Question 8

Amartya Sen

Answer 8

Sen’s approach to development focuses on the importance of enhancing people’s freedoms rather than solely measuring economic growth.

He argues that development should be assessed based on people’s well-being. –> He played a significant role in the development of the HDI.

Question 9

FDI

Answer 9

Foreign Direct Investment (FDI) refers to the investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the foreign country.

When a country receives FDI from overseas, it can use these funds for various purposes, including development projects.

Question 10

Washington And Beijing Consensus

Answer 10

Washington Consensus
- The British economist John Williamson, sought to summarize the state-of-art thinking on the best practices for economic development, and put together a document describing the “Washington Consensus.”

• This listed what developing countries needed to do to succeed in terms of development and growth.
  1. Balance Government Budgets
  2. Keep Inflation Low
  3. Privatize State Enterprises

Question 11

Nation vs. Nation State

Answer 11

A nation refers to a group of people who share common characteristics such as culture, history, and identity.

On the other hand, a nation-state is a political entity with defined borders, a government, and sovereignty over a specific territory, often aligning with a particular national identity.

Question 12

Foreign Aid

Answer 12

got it

Question 13

Tied And Untied Aid

Answer 13

Tied aid refers to foreign assistance provided by a donor country with the expectation that the recipient country will use the aid to purchase goods or services from the donor country. This type of aid benefits the donor country’s economy by promoting exports and creating jobs domestically.

On the other hand, untied aid is foreign assistance that is not linked to any specific requirement for the recipient country to purchase goods or services from the donor country. This type of aid is provided without the expectation of economic benefits for the donor country, allowing the recipient country to use the aid according to its own priorities and needs.

Question 14

Colonial Powers

Question 15

Bandung Conference

Answer 15

April 18 to April 24, 1955. The conference was a significant event in the history of decolonization and the emergence of the Non-Aligned Movement during the Cold War era.

The Bandung Conference was attended by representatives from 29 Asian and African countries, including newly independent nations and those still under colonial rule. The conference aimed to promote cooperation and solidarity among these nations, address common challenges such as colonialism, imperialism, and racism, and assert their right to self-determination.

Question 16

World Bank

Answer 16

The imf and World Bank were created as part of the Bretton Woods Conference held in New Hampshire in July 1944. With World War II drawing to a close, the United States met with 44 allied countries to establish a new international economic system that would set formal rules to coordinate economic relations between countries.

The original intent of the World Bank was to provide financing for postwar reconstruction and development projects. From 1950 on, however, the Bank focused on providing loans to developing-world countries at lower rates of interest than those of private international banks. These loans were directed mainly toward building infrastructure for development.

Question 17

IMF

Answer 17

Initially, the Bank tended to fund very specific types of projects. In the first two decades of its existence, more than 60 per cent of its loans funded projects to build physical infrastructure such as highways, airports, electricity grids, and hydroelectric dams.

1945

Question 18

SAPs

Answer 18

Structural Adjustment Programs (SAPs) are economic policies implemented by the International Monetary Fund (IMF) and the World Bank in developing countries. These programs are designed to address economic imbalances and promote development by restructuring a country’s economy according to neoliberal principles. Neoliberalism is an economic ideology that emphasizes free-market principles, privatization, deregulation, and reducing government intervention in the economy.

Question 19

Theory of Comparative Advantage

Answer 19

The Theory of Comparative Advantage promises that specialization in international trade would create benefits for all participants that were greater than producing all goods and services domestically, without cross-border commerce.

Question 20

Essay: Foreign Aid

Answer 20

Foreign aid, also known as development assistance, refers to the transfer of resources from one country or international organization to another to promote economic development, alleviate poverty, and address humanitarian crises. It is a crucial aspect of global cooperation aimed at fostering stability, prosperity, and well-being across nations.

The importance of foreign aid stems from its potential to address pressing global challenges, including poverty, hunger, disease, natural disasters, and conflict. By assisting developing countries, foreign aid can help build infrastructure, improve healthcare and education systems, promote sustainable development, and empower marginalized communities.

There are several advantages to foreign aid. It can help alleviate immediate suffering during humanitarian crises, improve living conditions in impoverished regions, and foster long-term economic growth by investing in infrastructure and human capital. Moreover, foreign aid can contribute to global security by addressing root causes of instability and promoting peaceful resolution of conflicts.

One example of foreign aid being useful is the Global Polio Eradication Initiative. This initiative, launched in 1988, aimed to eradicate polio worldwide through a coordinated effort involving governments, international organizations, non-governmental organizations, with significant financial support from donor countries. Foreign aid played a crucial role in funding vaccination campaigns, strengthening healthcare systems, and supporting surveillance efforts in countries where polio remained. Donor countries such as the United States, the United Kingdom, Germany, Japan, and others contributed substantial financial resources to the initiative through organizations like the World Health Organization (WHO), UNICEF,

However, many argue that foreign aid can create dependency and corruption in recipient countries, leading to a cycle of aid dependency and undermining local development efforts. Critics also point to instances where aid has been misused or diverted by corrupt governments or rebel groups, exacerbating conflicts.

For example, in Afghanistan, foreign aid meant for reconstruction post-2001 was extensively misused due to widespread corruption within the government. Funds intended for development projects were diverted by high-level officials with little oversight or accountability, undermining efforts to rebuild the nation and fueling public resentment towards the government and international donors.

Additionally, There are ethical debates surrounding foreign aid, in terms of cultural imperialism or imposing Western values on recipient countries. Such efforts can undermine the cultural identity of recipient countries, leading to a loss of autonomy and agency. While Western donor countries often prioritize gender mainstreaming, critics argue that these efforts can sometimes reflect Western feminist agendas that may not align with the realities of women in recipient countries.

In the future, these controversies are likely to persist and may even intensify due to Increasing Globalization. As the world becomes more interconnected, debates around foreign aid are likely to become more complex. additionally, With the increasing of global challenges such as climate change, pandemics, and refugee crises, there may be heightened competition for limited aid resources. Furthermore, technological advancements may reshape the landscape of foreign aid delivery and monitoring, but they may also raise new ethical concerns regarding data privacy. Solutions like blockchain, artificial intelligence, and big data analytics can enhance aid distribution, but there’s a risk of infringing on individuals’ privacy rights.