POLS 200: Exam 3-TOPICS:8,9,10 Flashcards
(86 cards)
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why does development matter?
-civil wars are concentrated in the poorest countries
-the world economic forum argues that deepening income inequality is the #1 contemporary world challenge
-for service provision (e.g. education, health care) which impacts life expectancy & inequality between men & women
-for democracy
_____ argues that deepening income inequality is the #1 contemporary world challenge
the world economic forum
service provision (e.g. education, health care)
which impacts life expectancy & inequality between men & women
development is positively associated with___
persistence of democracy
almost all countries with GDP/Capita above ______ are democracies
$8,000 (1985 PPP)
alsmot all counties with GDP/Capita above $8,000 are democracies-BUT there are exceptions
-larger middle class
-quality of government should be greater
-economic development permits education of more people which builds human capital
the paradox that countries w/ an abundance of natural resources tend to experience things like poor governance, low levels of economic development, civil war and dictatorship
resource curse
resource curse comes from:
Clark, Golder & Golder 2009)
oil, diamonds, a few large landowners dominating the economy
resource curse
development & post materialism
-living well, affluence, security
-frees people up to think about other elements to enhance the quality of their life
>human rights
>a clean environment
>equality across groups
how can you measure levels of development of a country? or how wealthy its people are?
-common measure: gdp/capita\
-purchasing power purity exchange rates (PPP): makes the funds comparable across countries.
based on the price of a particular bundle of goods in each country
PPP
presented w/ the year of the exchange rate because inflation changes the value of country exchange rates over time.
PPP
common explanations for underdevelopment of countries (acemoga 2003)
-lack of functioning markets
-badly educated population
-machinery & technology are outdated or nonexistent
>geographic hypothesis
>institutions hypothesis
possibility of omitted variables or reverse casualty
correlation DOES NOT equal causation
colonization by europeans starting in the 15th century-changed institutions while holding geography constant
acemoga 2003
indicates that geography is not the explanation for lack of prosperity-richest places have become the poorest
acemoga 2003
support for the institutional hypothesis (variation in colonization strategies)
acemoga 2003
analysis of GDP/Capita, climate access to the sea or major waterway, conclusion: geography does make the difference
sachs et. al 2001
3 major ways geography affects economic development:
-ease of transporting a good, people, ideas
-prevalence of disease
-agricultural productivity
sachs et. al 2001
why do some counties maintain institutions associated w/ high rates of poverty?
elites may have a lot to lose from institutional reform & all elites are powerful and can resist change
lukes 2nd dimension of power
power to keep issues off the policy agenda
change in insitituions can occyr when
-groups that favor change can become more powerful
-sociery can strike a bargain w/ those who will lose some power to credibly compensate them after the change occurs (acemoga)
the budget (in a country) needed to uy a certain amount of calories, plus some other indispensable purchase”
povertyly