Week 11 - Development Paradigm Shifts: Have we reached the end of Neoliberalism?

Question 1

Where can we see global convergence and divergence?

Answer 1

global convergence (reduction in inequalities between countries) and divergence (rising inequalities within countries)

Question 2

Why did income inequalities between countries surge during the 19th-20th century?

Answer 2

due to European industrialisation, colonialism, and innovation

Question 3

How much did between-country inequality account for of global income inequalities by 2000?

Answer 3

between-country inequality accounted for 75% of global income inequalities by 2000

Question 4

What were the Millennium Development Goals (MDGs) framed and focused on?

Answer 4

predominantly framed within a developed-developing (North-South) categorisation
goals focused on rich countries setting targets for poor countries

Question 5

What are three trends we saw of reduction in global inequality?

Answer 5

global Gini coefficient fell
extreme poverty reduced
global middle class expanded

Question 6

What is the data on extreme poverty reduction? (reduction in global inequality)

Answer 6

Extreme poverty (<$1.90/day) reduced from 49.2% (1990) to 13.4% (2013)

Question 7

For who did global GDP share rise?

Answer 7

share of global GDP for LICs and MICs rose, led by China, India, and Brazil

Question 8

What is the prediction for European-American share of global GDP?

Answer 8

European-American share of global GDP will decline from 50% (2010) to 20-30% by 2100

Question 9

What health development trends were seen globally?

Answer 9

life expectancy gaps narrowed significantly during the 20th and 21st centuries
under-5 and maternal mortality rates dropped globally
substantial disparities persist in LICs/MICs for cardiovascular care, cancer care, pain management, and palliative care

Question 10

How did the primary enrolment trend change globally?

Answer 10

North-South gaps in educational enrolment declined significantly
primary enrolment increased from 24% (1870) to 82% (2010), nearing universal coverage

Question 11

How did the global literacy trend change globally?

Answer 11

global literacy rose from 36% (1950) to 82% (1999) and 85% (2014)
illiteracy remains substantial in South Asia and sub-Saharan Africa, affecting one-third of the population in 2010

Question 12

How did the cognitive attainment trend change globally?

Answer 12

cognitive attainment trends do not display clear convergence

Question 13

For how much of global emissions did LICs/MICs account for and who is the largest emitter?

Answer 13

LICs/MICs account for ~60% of global emissions
China is the largest emitter

Question 14

How are the emission gaps between countries?

Answer 14

per capita emissions gaps remain significant, with HICs contributing three times more than LICs/MICs
consumption-based emissions reveal persistent inequalities

Question 15

What are environmental inequalities within-countries?

Answer 15

within-country disparities reflect a “10:50” relationship: Top 10% emit nearly 50% of emissions, while the bottom 50% emit only 10%.

Question 16

What was the focus of development discourse in the 19th and 20th centuries?

Answer 16

emphasising developing countries emulating developed ones, often through binary categorisations like “First World” vs. “Third World”

Question 17

What challenges the North-South binary today?

Answer 17

“Converging divergence”, decreasing between-country inequalities but increasing within-country inequalities

Question 18

How has within-country inequality changed?

Answer 18

Inequality has risen sharply, with wealth increasingly concentrated in the top 1%

Question 19

What is the central argument of the paper “From International to Global Development”?

Answer 19

It argues for shifting from “international development,” framed as a North-South binary, to “global development” that addresses interconnected global challenges

Question 20

How have health disparities manifested?

Answer 20

Life expectancy gaps have widened between higher and lower income groups globally

Question 21

What is the “converging divergence” concept?

Answer 21

While between-country inequalities decline, within-country inequalities rise, complicating traditional categorizations like North vs. South

Question 22

What global development framework does the paper “From International to Global Development” advocate?

Answer 22

A universal agenda addressing interconnected challenges like inequality, climate change, and health, exemplified by the Sustainable Development Goals (SDGs)

Question 23

What policy shifts are proposed in the paper “From International to Global Development”?

Answer 23

Moving beyond aid-dependent models to multi-directional cooperation, balancing poverty alleviation in the South and sustainability in the North

Question 24

What shift do Horner and Hulme propose?

Answer 24

Transitioning from “international development” to “global development,” emphasising a “one world” perspective over binary divisions

Question 25

What is their key argument against the binary perspective?

Answer 25

Binaries like "North" and "South" are outdated due to converging divergence

Question 26

What are the main critiques of Fischer against Horner and Hulme’s argument? (3)

Answer 26

1) They fail to define "development" beyond poverty and inequality outcomes 2) They misinterpret development studies, overlooking its focus on structural transformation 3) They neglect the impact of neoliberalism and its crises since the 1970s

Question 27

What is the center-periphery approach (Prebisch)?

Answer 27

It highlights economic marginalisation and inequality in peripheries due to fragmented and specialized structures

Question 28

Why is redistribution important in development?

Answer 28

High inequality impedes effective resource mobilisation and industrialisation

Question 29

How did Structural Adjustment Programs (SAPs) affect development?

Answer 29

They undermined developmental gains and created polarization, with post-1990s growth often being a recovery from crises

Question 30

How has reliance on World Bank data been problematic?

Answer 30

It obscures earlier developmental achievements and the damage caused by neoliberal policies

Question 31

What characterised the 1970s development trends?

Answer 31

Rapid growth in developing countries reduced global inequalities, with strong calls for redistribution and a New International Economic Order

Question 32

How does China exemplify classical development models?

Answer 32

Through structural transformation and redistribution, but with external vulnerabilities and dependence

Question 33

What challenges accompany Africa's growth?

Answer 33

Rising external debt creates vulnerabilities similar to those seen in earlier crises

Question 34

Why is preserving classical development studies important?

Answer 34

To reaffirm the focus on structural transformation and inequality, avoiding a diluted "global development" framework

Question 35

How does the World Bank influence developing countries?

Answer 35

Through its lending policies, access to international capital markets, large research and policy-design budget, and global media coverage for its reports

Question 36

How does Japan’s development philosophy differ from the World Bank’s?

Answer 36

Japan emphasises state-led industrial policies, including directed and subsidized credit, strategic industry promotion, and close state-market collaboration, contrasting with the World Bank's preference for financial deregulation and market-determined policies

Question 37

Why does Japan resist the free-market approach despite its global power? (4)

Answer 37

Ideological conviction (belief in the effectiveness of interventionist policies) Organisational interest (protect post-war achievements like directed credit) National material interest (strengthen influence in East and Southeast Asia) Nationalism (assert intellectual and economic leadership globally)

Question 38

What were the main disagreements between Japan and the World Bank regarding financial policies?

Answer 38

Japan supports directed credit and subsidised rates for industrial objectives The World Bank insists on financial deregulation and market-determined rates

Question 39

Why does the World Bank view Japan's interventionist ideas as a threat?

Answer 39

Contradicts its commitment to financial deregulation Undermines its reputation and borrowing ability Conflicts with U.S. strategic and diplomatic interests Challenges its constitutionally mandated apolitical stance

Question 40

Why was the East Asian Miracle Report controversial within the World Bank?

Answer 40

It was developed reluctantly after Japan financed it and dropped opposition to financial deregulation directives The report compromised by recognising some benefits of state intervention but remained heavily weighted toward market-friendly policies

Question 41

What did the East Asian Miracle Report achieve for Japan?

Answer 41

It secured limited acknowledgment of the benefits of selective interventions in Japan and Korea’s development but did not significantly shift the Bank’s neoliberal stance

Question 42

How does the World Bank maintain its neoliberal paradigm? (4)

Answer 42

Staffing (employing economists trained primarily in North America or Britain, with interventionist supporters rarely selected) Internal Review Process (ensures all publications align with market-friendly policies) Editorial Oversight (editors align content with Bank narratives, avoiding external criticism) Incremental Change (sharp policy changes are rare; shifts occur gradually through small concessions)

Question 43

How did Japan use the East Asian Miracle Report to promote its development philosophy?

Answer 43

Japan funded the report to highlight its interventionist strategies but achieved only modest shifts in the World Bank's stance

Question 44

What were Japan's key motivations for challenging the World Bank's neoliberal paradigm?

Answer 44

Showcase the success of its development model Protect its directed credit systems Enhance geopolitical influence in East and Southeast Asia

Question 45

What does the tension between Japan and the World Bank reveal about development paradigms?

Answer 45

It highlights the ongoing debate between neoliberal orthodoxy and interventionist approaches, as well as the geopolitical influence of international organizations in shaping global economic policies

Question 46

What is a "policy paradigm"?

Answer 46

A conceptual framework guiding policymakers in defining problems, setting goals, and identifying solutions

Question 47

What are first-order changes in policymaking?

Answer 47

Incremental adjustments to policy settings without altering overarching goals or instruments

Question 48

What are second-order changes in policymaking?

Answer 48

Modifications to the instruments of policy while keeping the goals intact

Question 49

What are third-order changes in policymaking?

Answer 49

Radical shifts involving redefinitions of goals, instruments, and underlying paradigms, such as the shift from Keynesianism to monetarism in Britain

Question 50

How do ideas shape policymaking, according to Hall?

Answer 50

Ideas influence policy decisions and frame how problems and solutions are understood, playing a central role in paradigm shifts

Question 51

Why does Hall critique state-centric models of policymaking?

Answer 51

He argues that paradigm shifts are societal and political phenomena, influenced by broader forces like media, electoral politics, and financial markets, rather than solely state autonomy

Question 52

What role do crises and anomalies play in paradigm shifts?

Answer 52

Crises expose failures within existing paradigms, acting as catalysts for the adoption of new paradigms, as seen in Keynesianism's failure to address 1970s stagflation

Question 53

What paradigm shift occurred in Britain’s macroeconomic policy during 1970-1989?

Answer 53

The transition from Keynesianism to monetarism

Question 54

How does Hall apply Thomas Kuhn's concept of paradigm shifts to policymaking?

Answer 54

He draws on Kuhn's philosophy of science to explain discontinuities in policy, suggesting that paradigm shifts arise when dominant frameworks are replaced

Question 55

What is Hall's view on the relationship between state autonomy and societal forces?

Answer 55

Hall argues that state autonomy alone cannot explain paradigm shifts, as broader societal debates, electoral competition, and external pressures are also crucial

Question 56

What role do politicians and media play in paradigm shifts?

Answer 56

Politicians and media help champion new paradigms and influence public opinion, shaping the acceptance of policy changes