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For courses on economic development Accessible theory, relevant policy issues, and the latest data and research, in the context of a thorough introduction to the developing world. Economic Development, the leading textbook in this field provides students with a complete and balanced introduction to the requisite theory, driving policy issues, and latest research. Todaro and Smith take a policyoriented approach, presenting economic theory in the context of critical policy debates and countryspecific case studies, to see how theory relates to the problems and prospects of developing countries. New to this edition Findings Boxes new intuitive introductions to important recent research Global Crisis uptodate challenges and opportunities for developing countries Policy Analysis and case studies review great progress in many developing countries, plus big challenges such as violent conflict and climate change; insights from comparative case studies such as Costa Rica, Guatemala and Honduras.1.Why is economics central to an understanding of the problems of development? 2.Is the concept of the developing world a useful one? Why or why not? 3.What do you hope to gain from this course on development economics? 4.Briefly describe the various definitions of the term development encountered in the text. What are the strengths and weaknesses of each approach? Do you think that there are other dimensions of devel opment not mentioned in the text? If so, describe them. If not, explain why you believe that the text description of development is adequate. 5.Why is an understanding of development cru cial to policy formulation in developing nations? Do you think it is possible for a nation to agree on a rough definition of development and orient its strategies accordingly? 6.Why is a strictly economic definition of develop ment inadequate? What do you understand economic development to mean? Can you give hypothetical or real examples of situations in which a country may be developing economically but may still be underdeveloped?
Economic Development Twelfth Edition Michael P Todaro New York University Stephen C Smith The George Washington University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo For Donna Renée and For Renee, Martin, and Helena Vice President, Editor in Chief: Donna Battista Executive Editor: David Alexander Program Manager: Lindsey Sloan Director of Marketing: Maggie Moylan Leen Marketing Manager: Lori DeShazo Team Lead, Project Management: Jeff Holcomb Senior Production Project Manager: Liz Napolitano Supplements Editor: Andra Skaalrud Manager, Rights & Permissions: Michael Joyce Rights & Permissions Coordinator: Samantha Graham Senior Procurement Specialist: Carol Melville Cover Designer: Jonathan Boylan Cover Art: motif: Elenasz/Shutterstock; top left: Ranplett/Vetta/Getty Images; top right: Charles Harker/Shutterstock; bottom right: Dmitryh Kalinovsky/Shutterstock; bottom left: Steve Estvanik/Shutterstock Project Coordination, Text Design, and lectronic Page Makeup: Cenveo® E Publisher Services Printer/Binder: Edwards Brothers Malloy Cover Printer: Lehigh-Phoenix Color/ Hagerstown Typeface: 10/12 Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text Copyright © 2015, 2012, 2009 by Michael P Todaro and Stephen C Smith All rights eserved r Manufactured in the United States of America This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290 Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps Library of Congress Cataloging-in-Publication Data Todaro, Michael P Economic development / Michael P Todaro, New York University, Stephen C Smith, The George Washington University Twelfth Edition pages cm Includes bibliographical references and index ISBN 978-0-13-340678-8 ISBN 0-13-340678-4 Economic development Developing countries Economic policy I Smith, Stephen C., Date- II Title HD82.T552 2014 338.9009172’4 dc23 2014011530 10 www.pearsonhighered.com ISBN 10: 0-13-340678-4 ISBN 13: 978-0-13-340678-8 The Pearson Series in Economics Abel/Bernanke/ Croushore Macroeconomics* Bade/Parkin Foundations of Economics* 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Practice* Money, Banking, and the Financial System* Hubbard/O’Brien/ Rafferty Macroeconomics* Hughes/Cain American Economic History Husted/Melvin International Economics Jehle/Reny Advanced Microeconomic Theory Johnson-Lans A Health Economics Primer Keat/Young/Erfle Managerial Economics Murray Econometrics: A Modern Introduction O’Sullivan/Sheffrin/ Perez Economics: Principles, Applications and Tools* Parkin Economics* Perloff Microeconomics* Microeconomics: Theory and Applications with Calculus* Perloff/Brander Managerial Economics and Strategy* MyEconLab titles Visit www.myeconlab.com to learn more Phelps Health Economics Pindyck/Rubinfeld Microeconomics* Riddell/Shackelford/ Stamos/Schneider Economics: A Tool for Critically Understanding Society Roberts The Choice: A Fable of Free Trade and Protection Rohlf Introduction to Economic Reasoning Roland Development Economics Scherer Industry Structure, Strategy, and Public Policy Schiller The Economics of Poverty and Discrimination Sherman Market Regulation Stock/Watson Introduction to Econometrics Studenmund Using Econometrics: A Practical Guide Tietenberg/Lewis Environmental and Natural Resource Economics Environmental Economics and Policy Todaro/Smith Economic Development Waldman/Jensen Industrial Organization: Theory and Practice Walters/Walters/Appel/ Callahan/Centanni/ Maex/O’Neill Econversations: Today’s Students Discuss Today’s Issues Weil Economic Growth Williamson Macroeconomics This page intentionally left blank Brief Contents Part One Principles and Concepts 1 Introducing Economic Development: A Global Perspective 2 Comparative Economic Development 3 Classic Theories of Economic Growth and Development 118 4 Contemporary Models of Development and Underdevelopment 164 Part Two Problems and Policies: Domestic 215 5 Poverty, Inequality, and Development 40 216 6 Population Growth and Economic Development: Causes, Consequences, and Controversies 284 7 Urbanization and Rural-Urban Migration: Theory and Policy 330 8 Human Capital: Education and Health in Economic Development 382 9 Agricultural Transformation and Rural Development 437 10 The Environment and Development 490 11 Development Policymaking and the Roles of Market, State, and Civil Society 541 Part Three Problems and Policies: International and Macro 599 12 International Trade Theory and Development Strategy 600 13 Balance of Payments, Debt, Financial Crises, and Stabilization Policies 678 14 Foreign Finance, Investment, Aid, and Conflict: Controversies and Opportunities 731 15 Finance and Fiscal Policy for Development 781 v This page intentionally left blank Contents Case Studies and Boxes xvii Preface xix Part One Principles and Concepts 1 Introducing Economic Development: A Global Perspective Prologue: An Extraordinary Moment 1.1 How the Other Half Live 1.2 Economics and Development Studies 2 The Nature of Development Economics Why Study Development Economics? Some Critical Questions 11 The Important Role of Values in Development Economics 14 Economies as Social Systems: The Need to Go Beyond Simple Economics 15 1.3 What Do We Mean by Development? 16 Traditional Economic Measures 16 The New Economic View of Development 17 Amartya Sen’s “Capability” Approach 18 Development and Happiness 21 Three Core Values of Development 22 The Central Role of Women 24 The Three Objectives of Development 24 1.4 The Future of the Millennium Development Goals 1.5 Conclusions 24 28 ■ Case Study 1: Progress in the Struggle for More Meaningful Development: Brazil 30 Comparative Economic Development 2.1 Defining the Developing World 2.2 Basic Indicators of Development: Real Income, Health, and Education 40 42 45 Purchasing Power Parity 45 Indicators of Health and Education 49 2.3 Holistic Measures of Living Levels and Capabilities 51 The New Human Development Index 51 2.4 Characteristics of the Developing World: Diversity within Commonality 55 Lower Levels of Living and Productivity 57 Lower Levels of Human Capital 59 Higher Levels of Inequality and Absolute Poverty 60 Higher Population Growth Rates 63 vii viii Contents Greater Social Fractionalization 64 Larger Rural Populations but Rapid Rural-to-Urban Migration 65 Lower Levels of Industrialization and Manufactured Exports 66 Adverse Geography 67 Underdeveloped Markets 69 Lingering Colonial Impacts and Unequal International Relations 70 2.5 How Low-Income Countries Today Differ from Developed Countries in Their Earlier Stages 73 Physical and Human Resource Endowments 74 Relative Levels of Per Capita Income and GDP 75 Climatic Differences 75 Population Size, Distribution, and Growth 75 The Historical Role of International Migration 76 The Growth Stimulus of International Trade 78 Basic Scientific and Technological Research and Development Capabilities 79 Efficacy of Domestic Institutions 79 2.6 Are Living Standards of Developing and Developed Nations Converging? 2.7 Long-Run Causes of Comparative Development 2.8 Concluding Observations 80 85 93 ■ Case Study 2: Comparative Economic Development: Pakistan and Bangladesh 96 Appendix 2.1 The Traditional Human Development Index (HDI) 112 Classic Theories of Economic Growth and Development 3.1 Classic Theories of Economic Development: Four Approaches 3.2 Development as Growth and the Linear-Stages Theories 118 119 119 Rostow’s Stages of Growth 120 The Harrod-Domar Growth Model 121 Obstacles and Constraints 123 Necessary versus Sufficient Conditions: Some Criticisms of the Stages Model 123 3.3 Structural-Change Models 124 The Lewis Theory of Economic Development 124 Structural Change and Patterns of Development 129 Conclusions and Implications 130 3.4 The International-Dependence Revolution 131 The Neocolonial Dependence Model 131 The False-Paradigm Model 133 The Dualistic-Development Thesis 133 Conclusions and Implications 134 3.5 The Neoclassical Counterrevolution: Market Fundamentalism 135 Challenging the Statist Model: Free Markets, Public Choice, and Market-Friendly Approaches 135 Traditional Neoclassical Growth Theory 137 Conclusions and Implications 139 3.6 Classic Theories of Development: Reconciling the Differences 140 ■ Case Study 3: Schools of Thought in Context: South Korea and Argentina 142 Appendix 3.1 Components of Economic Growth 149 Appendix 3.2 The Solow Neoclassical Growth Model 155 Appendix 3.3 Endogenous Growth Theory 159 Contents Contemporary Models of Development and Underdevelopment 4.1 Underdevelopment as a Coordination Failure 4.2 Multiple Equilibria: A Diagrammatic Approach 4.3 Starting Economic Development: The Big Push ix 164 165 168 174 The Big Push: A Graphical Model 176 Other Cases in Which a Big Push May Be Necessary 181 Why the Problem Cannot Be Solved by a Super-Entrepreneur 182 4.4 Further Problems of Multiple Equilibria 183 Inefficient Advantages of Incumbency 183 Behavior and Norms 184 Linkages 185 Inequality, Multiple Equilibria, and Growth 186 4.5 Michael Kremer’s O-Ring Theory of Economic Development 187 The O-Ring Model 187 Implications of the O-Ring Theory 190 4.6 Economic Development as Self-Discovery 4.7 The Hausmann-Rodrik-Velasco Growth Diagnostics Framework 4.8 Conclusions 192 193 197 ■ Case Study 4: Understanding a Development Miracle: China 200 Part Two Problems and Policies: Domestic 215 Poverty, Inequality, and Development 5.1 Measuring Inequality 216 218 Size Distributions 218 Lorenz Curves 220 Gini Coefficients and Aggregate Measures of Inequality 222 Functional Distributions 224 The Ahluwalia-Chenery Welfare Index (ACWI) 225 5.2 Measuring Absolute Poverty 226 Income Poverty 226 5.3 Poverty, Inequality, and Social Welfare 230 What’s So Bad about Extreme Inequality? 230 Dualistic Development and Shifting Lorenz Curves: Some Stylized Typologies 232 Kuznets’s Inverted-U Hypothesis 235 Growth and Inequality 239 5.4 Absolute Poverty: Extent and Magnitude 240 The Multidimensional Poverty Index (MPI) 242 Growth and Poverty 248 5.5 Economic Characteristics of High-Poverty Groups Rural Poverty 250 Women and Poverty 251 Ethnic Minorities, Indigenous Populations, and Poverty 255 250 848 Name Index Sacerdote, Bruce, 110 Sachs, Carolyn, 486 Sachs, Jeffrey D., 104, 105, 106, 108, 435, 671, 727, 776, 815 Sack, Alexander, 704 Sadoulet, Elisabeth, 484, 486 Sahn, David E., 482 Saith, Ashwani, 280 Saito, Katrin, 482 Salador, Kevin, 269 Sala-i-Martin, Xavier, 162, 822 Salamon, Lester, 597 Salant, Stephen W., 540 Salehi-Ifsahani, Djavad, 380 Salim, Mir, 589, 591 Saltz, Ira S., 775 Samad, Hussain A., 590 Samuelson, Paul A., 672 Sananikone, Ousa, 668 Sancak, Cemile, 535 Sanders, Richard D., 372 Sandler, Todd, 778 Sangraula, Prem, 281, 367, 381 Santos, Maria Emma, 269, 281 Santos, Theotonio Dos, 132, 147 Sardana, M G., 371, 372 Sarno, Lucio, 775 Satyanath, Shanker, 779 Savvides, Andreas, 674, 727 Schady, Norbert, 714, 729 Schelling, Thomas, 398 Schiff, Maurice, 431 Schmitz, Hubert, 342, 378, 674 Schneider, Howard, 688 Schott, Jeffery, 702 Schroeder, Elizabeth, 823–824 Schultz, T Paul, 428, 435–436 Scitovsky, Tibor, 674 Scott, Maurice, 674 Sczepanik, E F., 484 Seers, Dudley, 17, 37 Segal, Sheldon, 326 Segalotto, Jean-Franỗois, 822823 Seitz, Klaus, 772, 778 Sen, Amartya, 2, 1821, 23, 37, 38, 101, 209, 279, 282, 284, 321, 322, 323, 324, 325, 390, 399, 445, 593, 595 Sengupta, Piyali, 428 Sercovich, Francisco Colman, 35 Sergenti, Ernest, 779 Shaban, Radwan Ali, 487 Shapiro, Carl, 211, 593 Sharma, Anand, 730 Sharmaa, Subhash C., 671 Shaw, Edward S., 824 Shell-Duncan, Bettina, 433 Shepard, Donald S., 436 Shilpi, Forhad, 166, 211, 488, 597 Shinn, David, 269, 730 Shirley, Mary M., 825 Shleifer, Andrei, 109, 110, 175, 211–213, 270 Siddiqi, Faraaz, 35 Siermann, Clemens, 569, 595 Silanes, Florencio Lopez de, 109, 270 Simmons, Richard, 596 Simon, Julian, 328 Singer, Hans W., 147 Singh, Ajit, 147, 594, 673, 824 Singh, Inderjit, 591 Singh, Manmohan, 382, 672 Singh, Nirviker, 487 Singh, Susheela, 317 Skoufias, Emmanuel, 428 Slemrod, Joel, 810, 825 Smillie, Ian, 585, 591, 597 Smith, Adam, 2, 9, 166, 212, 216 Smith, Bruce, 380 Smith, Robert, 431 Smith, Stephen C., 39, 145, 158, 209, 213, 279, 428, 430, 431, 484, 539, 540, 590, 591, 593, 596, 669, 725, 774, 815, 823 Sock, Donald, 597 Söderbom, Mans, 676 Soedjatmoko, 16 Soemardjan, Selo, 37 Sokoloff, Kenneth L., 87, 89–91, 105, 108, 109, 110, 111, 485 Solow, Robert, 118, 138, 147, 155–158, 163 Sommer, Martin, 822–823 Somoza, Anastasio, 704 Soto, Humberto, 428 Spencer, Jennifer, 269 Speth, James, 263, 283 Spiegel, Shari, 678, 699, 728 Spolaore, Enrico, 104 Spurling, Daphne, 482 Squire, Lyn, 431 Srinivasan, T N., 146, 283, 483 Srinwasan, T N., 328 Stamos, Stephen C., 727 Stampini, Marco, 428 Stark, Oded, 106, 371, 372, 373 Staudt, Kathleen, 480, 482 Stecklov, Guy, 428 Stein, Howard, 727 Stern, Joseph, 213, 725 Stern, Marc A., 540 Stern, Nicholas, 162, 381, 490, 539, 594, 824, 825 Stern, Robert, 677 Name Index Stern, Scott, 435 Stewart, Frances, 270, 593, 676, 688, 727, 762, 765, 772, 778, 779, 780 Stiglitz, Joseph E., 164, 198–199, 211, 213, 214, 380, 431, 485, 487, 541, 592, 593, 594, 595, 671, 675, 725, 781, 801–803, 822, 823, 824, 825 Strauss, John, 422, 436 Strauss-Kahn, Dominique, 715, 729 Streeten, Paul P., 37, 147, 283, 381, 673, 727 Strout, Alan M., 776 Stuckler, David, 728 Subramanian, Arvind, 108, 111 Subramanian, Shankar, 431 Suh, Sang-Mok, 723–724 Summers, Lawrence H., 101, 111 Summers, Robert, 101, 103, 145, 270 Sunil, T S., 325 Svedberg, Peter, 434 Svejnar, Jan, 774, 815, 825 Svensson, Jakob, 172–173, 597 Syrquin, Moshe, 146, 212, 675, 724 Tabellini, Guido, 213, 280, 822 Tansel, Aysit, 270, 435–436 Tanzi, Vito, 824–825 Tarp, Finn, 776 Taylor, Lance, 147, 593, 688, 727, 776 Taylor, Mark P., 775 Teal, Francis, 380 Teegen, Hildy, 39, 596, 597, 776 Teitelbaum, Michael S., 328 Temple, Jonathan, 147, 163 Teruel, Graciela M., 428 Teubal, M., 725 Thaicharoen, Yunyong, 109 Theisen, Ole Magnus, 779 Thomas, Brinley, 106 Thomas, David, 508 Thomas, Duncan, 422, 434, 436 Thomas, John W., 147 Thomas, Vinod, 111, 434 Thompson, Frank, 487 Thompson, Kenneth W., 37 Thompson, Warren S., 286 Thorbecke, Erik, 279, 593, 667, 669, 722, 725 Thurow, Lester, 145, 209 Tiberti, Luca, 729 Tiebout, Charles M., 596 Tietenberg, Tom, 539–540 Tingsong, Jiang, 205, 209 Tinker, Irene, 282 Todaro, Michael P., 372, 373, 380, 434, 592 Todd, Petra, 428 Torres, Sebastian, 89, 110, 535 Toye, John, 147 Trebbi, Francesco, 111 Trefler, Daniel, 676 Tsikata, Fui S., 270 Tudjman, Franjo, 704 Tung, An-chi, 667, 669 Turnham, David, 381 Udry, Christopher, 213, 327, 461, 468, 470, 486, 487 Ugelow, Judith L., 536 Uphoff, Norman, 581, 582, 597 Urdal, Henrik, 779 Valdes, Alberto, 431 Valdivia, Martin, 777, 798 Valev, Neven, 821 van Arkadie, Brian, 488 Vandemoortele, Jan, 39 Vanga, Adja F., 270 Varian, Hal, 211, 593 Väyrynen, Raimo, 778 Vega, Sergio de la, 428 Velasco, Andrés, 31, 35, 147, 193–197, 214, 535 Venables, Anthony, 213, 379, 677 Verner, Dorte, 147, 270 Verwimp, Phillip, 778 Vieth, Warren, 674 Villanueva, Delano, 823 Vishny, Robert, 175, 211–213, 270 Vishwanath, Tara, 362, 380 Vodopevic, Milan, 815 Vogel, Ezra, 209 von Braum, Joachim, 431 von Braun, Joachim, 482, 488, 600, 634, 673–674 von Pishke, J D., 822 Votey, Harold, 328 Wacziarg, Romain, 671, 673 Wade, Robert, 669, 673, 675, 722, 725 Wahid, Abu N M., 591 Walter, Barbara F., 779 Walter, Ingo, 536 Wamisho, Kassu, 378 Wan, Henry, 667, 669, 722, 725 Wang, Fang-Yi, 202, 209 Wang, M., 772, 778 Wang, Shenglin, 146 Wang, S L., 484 Wang, Yan, 434 Wang, Yunshi, 209 849 850 Name Index Wantchekon, Leonard, 105 Warford, Jeremy J., 537 Warner, Andrew, 775 Warner, James, 486 Waters, Hugh, 777 Waters, William F., 430 Waterston, Albert, 594 Watkins, Kevin, 673–674 Webb, Patrick, 431 Webb, Richard, 688 Weber, Alfred, 344 Wei, Shang-Jin, 207, 209, 323, 325 Weibull, Jorgen, 171 Weidemann, C Jean, 482 Weijland, Hermine, 340 Weil, David N., 158 Weitz, Raanan, 486 Weitzman, Martin L., 203, 209 Wen, Ming, 777 Wen Jiabao, 715, 729 Westoff, Charles F., 327 Westphal, Larry E., 213, 668, 675, 722, 724, 725 Wheatley, Jonathan, 729 White, Gordon, 213, 725 White, Howard, 270 White, Laurence H., 822 White, Sarah C., 597 Wickham, Peter, 671 Wik, Mette, 484 Williams, Heidi, 435 Williamson, Jeffrey G., 778 Williamson, John, 560, 594, 680, 727 Williamson, Oliver, 593 Wilson, Scott, 171 Wink, Claudia, 282, 322, 325, 400 Winters, L Alan, 106 Winters, Paul, 428 Witt, L W., 483 Woessmann, Ludger, 147 Woetzel, Jonathan, 209 Wohar, Mark E., 671 Wolf, Holger, 106 Wolf, Martin, 38, 683 Wolfensohn, James, 687 Wolpin, Kenneth, 428 Woo, Wing Thye, 209 Wu, Yi, 106 Xu, Chenggang, 203, 209 Yaghmaian, Behzad, 674 Yamey, Basil, 776 Yang, Dennis Tao, 325 Yang, Jin, 146 Yared, Pierre, 109 Yellen, Janet L., 380 Yew, Lee Kuan, 568 Yimam, Arega, 270 Yiping, Huang, 205, 209 Yokota, Kazuhiko, 146, 209 Yoo, Chul Gyue, 723, 724 Young, Alwyn, 201, 209 Yunus, Muhammad, 269, 586–587, 591, 671, 781 Yusuf, Shahid, 35 Zeira, Joseph, 186, 211, 213, 280 Zeleza, Paul Tiyambe, 678 Zervos, Sara, 821 Zhang, Jun, 206 Zhang, Xiaobo, 146, 207, 209, 323, 325, 378 Zhou, Ning, 209 Zhu, Tian, 206, 209 Zhu, Xiaodong, 202, 208, 209 Zimmerman, Frederick J., 486–487 Subject Index Absolute poverty, 4, 5–8, 62–63 See also Foster-GreerThorbecke poverty index; Headcount index; Human poverty index, (HPI); Multidimentional poverty; Poverty gap; other references listed with individual countries and credit, 231, 583–590, 793–799 extent and magnitude, 240–250 and growth, 248–250, 264–265 measuring, 226–230 of minorities and indigenous populations, 255–256 policies for poverty alleviation, 256–263 population-poverty cycle, 311–312 rural, 250–251 subsistence agriculture, 447 women and poverty, 251–255 Acquired immune deficiency syndrome (AIDS), 412–415 Adaptation See Climate change: adaptation to Afghanistan, 105–106, 289, 327 Africa, 72, 74, 136 See also individual country entries agriculture, 456–457 armed conflict, reducing, 764 climate change, adaptation to, 508 global financial crisis, impact of, 717 Africa, sub-Saharan, 26, 62 agriculture, 440, 441 HIV/AIDS, 414 population growth, 289, 291, 310, 319 poverty, 26, 62, 241–242, 245–246, 256 private rate of return to primary education, 389–390 rural population, 437 women in agriculture, 477 Age structure (of population), 290–291 Agglomeration economies, 336, 339, 342–345 Aggregate growth models of development planning, 547–549 Agrarian systems, 448–457 Agriculture, 437–489 agricultural policies, 267–268 climate change, adaptation to, 508 commercial, transition to, 469–471 development inequality, 91 development strategies, 471–476 and environment, 498, 503, 508 extension, 453, 460, 473, 476, 477–482 Green Revolution, 440, 443, 463, 477 growth and productivity of, 440–446 labor and production function, 125–127 land reform, 33 market failure in, 446–447 mixed or diversified farming, transition to, 468–469 population employed in, 66–68 poverty, 250–251 and risk aversion, 463–465 sharecropping, 454, 466–468 subsidies, 634 subsistence, 456–457, 462–466 women’s role in, 458–462, 477–482 yield improvement, 153–154 Ahluwalia-Chenery, 225, 275–279 Aid See Development assistance AIDS, 412–417 AK model See Harrod-Domar growth model Algeria, 281 Amazon, 33 Appropriate technology, 272–274 Argentina, 143–144 Asia See also East Asia, individual country entries agriculture, 440, 441, 449–456 decentralization, 580 global financial crisis, impact of, 714 Asian Tigers, 136 See also South Korea; Taiwan Asset ownership, 258–259 Asymmetric information, 182–183 Attitudes, 16 Australia, 289 Autarky, 135, 657 Autocracy, 567–569 Balance of payments, 605, 627, 631, 637, 640–648, 678–690 Bangladesh, 288, 300 agriculture, 440 BRAC (nongovernmental organization), 583–591 economic development, 96–101 851 852 Subject Index Bangladesh (continued) famine, 445 GDP per capita, 112 income, 51 poverty, 245, 246, 261 Banking systems, 791–792 Benefit-cost analysis See Project appraisal Bhutan, 22, 38 Big push model, 174–183 Birth rate, crude, 63–64, 289 Black markets and shadow economy, 646 Bolivia, 71–72, 281, 580 Botswana, 369–370, 372, 817–820 BRAC, 583–591 Brady plan, 698 Brain drain, 77, 744, 757 Brazil, 30–35, 196, 256, 452 agriculture, 453 decentralization, 579 Industrial, Technological and Foreign Trade Policy (PITCE) program, 31 urbanization, 441–442 BRIC, Britain See United Kingdom Burkina Faso, 245, 440, 461, 479, 486 Burundi, 245, 327 Cambodia, 245 Canada, 135, 255, 448 Capability to function, 18–22 Capital accumulation, 149–150 Capital-output ratio, 121 Caribbean, 716–717 Causality See Endogeneity Central banking, 787–792 Child labor, 32, 391–396 Chile, 453, 814–815 China, 2–4, 48, 79 agriculture, 440 development, 135, 200–209 global financial crisis, 706–709, 714–715 industrial districts, 341–342 labor market, 128–129 population growth and policy, 288, 291, 293, 321–325 poverty, 241, 249 relative country convergence, 83–85 urbanization, 441–442 Choice of technique, 272–274 Cities, role of, 339–344 Civil society, 100–101, 569–572 Civil war See Conflict, violent Climate, 75 Climate change, 105, 318, 491–492 adaptation to, 474, 506–508 mitigation, 505–506 and mitigation, 502–503 policies to address, 528–531 Climate summit, conflicts of interest at, 135 Clusters See Industrial districts Coefficient of variation, 224 Colombia, 22, 237, 454 Colonialism, 70–73, 86–93, 110 agriculture, 454 legal systems, 266–267 policy transformation following, 267–268 Colonial legacy, 70–73 Commercialization, 797 Commodities availability of, 19 expanding exports of, 632–635 indirect taxes on, 808 Commodity growth, 78 Commodity terms of trade See Terms of trade Common property resources, 513–515, 526, 762–763 Community-driven development (CDD), 766 Comparative advantage, 89, 613–614 Complementarities, 165–167, 170, 185, 187–188, 190–191 Conditional cash transfer (CCT) programs, 394, 395, 425–427 Conditional convergence, 81 Conditionality, 685 Conflict, violent, 64–65, 232, 268–269, 556, 757–766, 770 Congestion, 167–168, 522–523 Congo, Democratic Republic, 40, 51, 89, 135, 167, 310 Contraceptives, demand for, 317 Contract enforcement, 86, 93, 566, 567 Convergence, 1, 80–85 conditional, 81, 156–158 international income, 80–85 sectoral, 85 Cooperatives, 200, 475, 569–570, 588, 794–795 Coordination failure, 165–168, 175, 182–183, 398–399 Corporate social responsibility, 742 Corruption, 576–578 Costa Rica, 32, 114, 767–772 Cost-benefit analysis See Project appraisal Côte d’Ivoire, 264–270, 281 Credit agriculture and, 485 informal, 792–793 microfinance institutions (MFIs), 793–797 Crime, 31, 232, 764, 770 Cuba, 53–54 Currency board, 788 Death rate, 287, 289 Debt crisis, 691–695 Subject Index Debt-for-equity swap, 698 See also International Monetary Fund Debt-for-nature swap, 529, 698–699 Debt relief, 528–529, 580–581, 697–699, 702–703, 705–706 Decentralization, 578–580 Deficits, balance of payments, 681, 683–685 Deforestation, 33, 457 Democracy, 567–569 Demographic transition, 293–296 Dependence, international, 73, 131–135, 143, 144, 602, 604 Dependency burden, 64, 290–291 Depreciation (of capital stock), 45 Depreciation (of currency), 647 Devaluation, 646–647 Development assistance, 100, 132, 529, 546, 712–713, 747–757 Development banking, 791–792 Development economics, defined, 9–16 Development participation, 580–582 Development planning, 542–558 Deworming, 387, 418–419 Direct foreign investment See Multinational corporations Direct transfer payments, 260–262 Disability-adjusted life year, 407 Disease burden, 406–420 Distribution of income, 31 Costa Rica, Guatemala, and Honduras, 767–768 global disparities, 12, 40, 58 relative levels of per capita income and GDP, 74–75 selected estimates, listed by country, 237 taxes, 260 Divergence, 80, 98, 107 “Doha Development Round,” 73 “Doha Development Round” trade negotiations, 73, 662 Domestic institutions, 79–80 Dominance relationships See Dependence, international Dominican Republic, 196, 532–536 Dualistic-development thesis, 133–134, 232–235 Earth Summit, 3, 490, 497 East Asia, 7, 26, 62, 175, 289–290 See also China; South Korea agriculture, 440 development policies and, 560 on East Asia, 560 global financial crisis, impact of, 715–716 income inequality, 239 Economic growth See Growth, economic Economic institutions See Institutions Economic planning See Development planning Ecuador, 171 Educational gender gap, 396–400 853 Education and development, 90, 267, 401–406, 534–535 See also Human capital benefit-cost analysis, 403–404, 432 conflicts, violent, 761, 765–766 in Costa Rica, Guatemala, and Honduras, 769–770 distribution, 404–406 education and health, linkages, 49–51, 59–61, 382–391 impact of global financial crisis, 714 microfinance combined with, 798 population growth, 313 teacher absenteeism, 576 training effects, 182 tutor and computer-assisted learning programs, 407 Effective rate of protection See Protection, effective rate of Egypt, 53–54 Elasticity of factor substitution, 274 El Salvador, 196 Emerging markets, terminology, 44–45 Employee ownership, in privatization, 813–815 Employment, percentage by sector, 68 Endogeneity, 470 Endogenous growth, 159–163 Environmental accounting, 492–493 Environmental degradation, 313, 457, 499–500 policies about, 528 regional, 515–516 in villages, 501–502 Environmental Kuznets curve, 495 Environmental policy, 494–495, 508–518 global warming and climate change, 497, 502–508 natural-resources-based livelihoods, 498 and population, 493–494 and poverty, 494 and rural development, 496, 500–501 Environment and development, 3, 5, 25–27, 204–205, 308–309, 490–540 Ethiopia, 105–106, 237 population growth, 293 poverty, 245, 281 Ethnicity and development, 65, 245–246, 255–256 Ethnolinguistic fractionalization, 266 European Union, 578 Exchange rates, 644–648 Export dependence, 604–605, 608–609 Export earning instability, 610 Export promotion, 630–636 Exports agricultural, 470 global financial crisis and, 710–712 high-value, risk of conflict associated with control of, 762–763 854 Subject Index Exports (continued) manufactures, 66–67, 608–609, 635–636 primary, 67 subsidies, 627 External capabilities, 19–20 Externality, 175, 180, 515, 520–521, 545, 550 Factor endowment trade theory See Neoclassical trade model Factor price distortions, 273–274 Factor price equalization, 618 False-paradigm model, 133 Family-planning programs, 300–301, 307, 311–312, 315, 316, 318–319, 323 Famine, 444–446 Female genital mutilation/cutting, 398–399 Fertility consequences of high fertility, 307–315 development, implications for, 306–307 microeconomic theory of, 303–305 trends, 289–290 Finance See Financial system Financial crisis, 706–719 Financial repression, 800–801 Financial system, 781–816 See also Development banking; Stock markets government policy and role, 801–803 informal, 792–793 liberalization, 799–801 microfinance institutions, 793–799 role of, 782–787 stock markets and, 712, 803–805 First-city bias, 345–346 Fiscal policy, 805–810 Food for Work program See Workfare Food prices, 443, 473–474 Foreign aid See Development assistance Foreign direct investment See Multinational corporations Foreign-exchange earnings, 629 Foreign-exchange gap, 752 Foreign-exchange rates, 644–648 Foster-Greer-Thorbecke poverty index, 228–229 Fractionalization, 64–65, 266 Freedom See Development; Capability approach Freedom from servitude, 23–24 Free-market analysis, 136–137 Free trade, 78–79, 607 French colonies, 266–267 Functional distribution of income, 224–225 Functionings See Capability to function GDP See Gross domestic product (GDP) Gender discrimination consequences of, 399–400 education and, 396–398 health and, 398–399 Gender equity, 99, 254 General Agreement on Tariffs and Trade (GATT), 602 Geography, role of, 67, 69, 75, 86, 88–89, 98–99, 193–194 in Haiti and Dominican Republic, 533 Ghana, 52–54, 246, 264–270, 281, 470 Gini coefficient (of income inequality), 222–224, 228 Gini coefficient of educational inequality, 405 Gini coefficient of land inequality, 451, 452 Globalization, 13, 600–603 See also International trade; Multinational corporations Global public goods, 524 Global trade, 78–79 Global warming See Climate change GNI See Gross national income (GNI) Government, role of, 100, 541–542 See also Development; Market failure; Public goods and public bads appropriability, 194 armed conflicts, 764–765 in China, 201, 206–207 colonial governance, 90–92 financial policy, 801–803 fiscal policies, 805–810 health systems, policies for, 422–424 international trading relations, 626–627 interventionism, 267–268 policy options on income inequality and poverty, 256–263, 267–269 population policy, 319–324 population stabilization, 316–317 and privileged class, 137, 144 public administration, 815–816 urban-rural migration, 338 Government failure, 554–558 See also Neoclassical counterrevolution corruption, tackling problem of, 576–578 decentralization, 578–580 development participation, 580–582 Grameen Bank, 583–591 Greece, 42 Gross domestic product (GDP), 17 per capita income and, 74–75 tax revenue as percentage of, 805–806 Gross national income (GNI) per capita, 16, 45–47, 103, 216 Ahluwalia-Chenery welfare index, 275–279 Group lending schemes, 793 Subject Index Growth, economic, 31–32, 75–76, 96–97, 159–163 character of, 240 See also Investment components of, 149–154 in Costa Rica, Guatemala, and Honduras, 769 development as, 119–131 and the environment, 494–495 global financial crisis, 710 and inequality (See Inequality: and growth) and poverty (See Absolute poverty: and growth) Growth diagnostics, 193–197 Growth models, 120–124, 137–139, 155–158 Guatemala, 116, 767–772 Guinea, 245 Haiti, 245, 532–536 Happiness, and development, 21–22 Harris-Todaro migration model, 358, 362, 369–370 Harrod-Domar growth model, 120–123, 155–157, 298, 547–549, 736–737 HDI See Human Development Index Headcount index, 226 Health and development, 406–420 See also Human capital in China, 201 conflicts, violent, 759–760 in Costa Rica, Guatemala, and Honduras, 769 education and health, linkages, 59–61, 98, 384–388 fertility and mortality trends, 289 gender gap, 398–399 health systems, policies for, 422–424 impact of global financial crisis, 714 population growth, 313 and productivity, 420–422 village coordination and monitoring, 172–173 Health systems, 422–424 Heavily indebted poor countries (HIPCs) initiative, 705–706 Heckscher-Ohlin trade theory See Neoclassical trade model Hidden momentum of population growth, 291–293 High-Level Panel (HLP) of Eminent Persons on the Post-2015 Development Agenda, 27 HIV/AIDS, 412–417 Honduras, 245, 767–772 Hong Kong, 200 Horn of Africa, 443–445 Human capital, 44, 59–60, 59–61, 74, 383, 534 colonialism, 89–90 education and health as investments, 382–391 investment in, 149–150, 160–161 mobilization and allocation, 546 Human Development Index (HDI), new, 32, 51–57, 104 Human Development Index (HDI), traditional, 112–117 855 Human immunodeficiency virus (HIV) See Acquired immune deficiency syndrome (AIDS) Human poverty index (HPI), 243, 281 Human resource endowments, 74 Imperfect market, 70 Import restrictions, 531 Import substitution, 631, 637–645 Income distribution See Distribution of income Income inequality See Inequality: income Income per capita, 16 Incomplete information, 70 India, 40, 51, 79 agriculture, 440, 454, 468 colonial land tenure and governance systems, legacy of, 92 development, 135 global financial crisis, impact of, 716 population growth and policies, 83–85, 288, 291, 317, 321, 323–325 poverty, 245, 246, 247, 257, 261 rural-urban migration and urbanization, 369–371 tutor and computer-assisted learning programs, 407 Indigenous peoples, 245–246, 255 Indigenous populations, 65 Indonesia, 32, 288–289, 454, 455 Industrial districts, 339–342 Industrialization, 66–67 See also Big push model; Industrial policy coordination problems, 166 export-oriented industrialization strategy, 651–655 global factories, 735 urban air pollution and, 519–522 Industrial policy, 16, 195, 626–627 See also International trade: and industrialization big push, 176–182 China, 200–205 coordination failures, 166, 175 emissions controls, 527, 531 linkages, 185 O-ring model, 187–192 Industrial sector employment, 66–68 Inequality, 218–225, 230–232 colonialism, 89–91 Costa Rica, Guatemala, and Honduras, 768–769 educational, 396–398, 404–406 and growth, 186–187, 239–240 income, 33, 218–225, 240 health, 408–409 instruments to test theories, 91 land holdings, 447–454 measurement, 218–225 856 Subject Index Inequality (continued) population growth, 313 as risk factor for violent conflict, 762 Infant industry protection, 637–639 Informal finance See Financial system: informal Informal sector, 348–355 Input-output models, 549–550 Institutions, 16, 69–70, 79–80, 86 armed conflict, role in resolving and preventing, 763–764 colonial, 88–89 domestic, 79–80 extractive, 71–72, 75, 88, 90 path dependency, 566–567 postcolonial, 92–93 protections of property rights and contracts, 202 quality of, 265–266, 769 role of in Haiti and Dominican Republic, 533–534 weaknesses, development planning and, 556 Instrumental variable, 91 Integrated rural development See Rural development Inter-American Development Bank (IDB), 197 Intergovernmental Panel on Climate Change (IPCC), 502–504, 538 Interindustry models See Input-output models Interlocking factor markets, 466–468 International Bank for Reconstruction and Development See World Bank International commodity agreements, 633 International dependence See Dependence, international International Food Policy Research Institute (IFPRI), 216, 248, 440, 441 International Labor Organization (ILO), 391–392, 394, 396 International migration, 76–78 International Monetary Fund (IMF), 136, 682–683, 695–697 International Panel on Climate Change, 105, 502–504 International trade, 78–79, 600–650 balanced, 627 in big push theory, 178 climate changes, policies to address, 528 export promotion, 630–636 firm-level international trade research, 655 freely available technology, 623–624 free trade, 607, 614–616 gains accruing to nationals, 627–628 import substitution, 637–650 and industrialization, 651–655 infant industry, 637–639 internal factor mobility, 624–626 national governments, absence in trading relations, 626–627 neoclassical trade model, 614–619 North-South models of, 620–622 policies of developed countries, 659–662 South-South trade, 655–659 theory for, 612–619 trade optimism, 648–649, 650 trade pessimism, 648–650 vent-for-surplus theory of, 622–623 Inverted-U hypothesis See Kuznets’ inverted-U hypothesis Investment See also Industrialization capital accumulation, 149–150 complementary, 160–161 export-led in China, 201 Harrod-Domar growth model, 121–124 role in growth,120–127, 137–139, 149–163 Iran, 281 Japan, 200, 236, 290, 448 Joint United Nations Programme on HIV/AIDS (UNAIDS), 412, 414 Kenya, 116 agriculture, 440, 477–482 poverty, 245–246 school impact of low-cost health intervention, 387 Kerala, 324 Korea, South See South Korea Kuznets’ inverted-U hypothesis, 235–239 Labor, child, 391–396 Labor, forced, 70–72, 89 Labor force growth in big push theory, 176–182 in Harrod-Domar theory, 122 in Lewis theory, 124–129 Land grabbing, 474 Land reform, 33, 474–476, 484, 526–527 Lao PRD, 245 Latifundio-minifundio pattern, 452–453 Latin America, 65, 72–73, 136, 144, 289–290 agriculture, 437, 449–453, 484 global financial crisis, impact of, 716–717 income distribution, 237 indigenous population, poverty of, 255 Latin America effect, 238–239 Least developed countries, 44 Legal system, 69, 266–267 Less developed countries, 10 Lewis (two-sector) model, 124–129 Linkages, 185 Lorenz curves educational, 405 income, 220–221, 232–235, 280 land, 450–451 Subject Index Macroeconomic stabilization, 695–706, 805 Madagascar, 281 Malaria, 415, 417–418 Malawi, 395 Mali, 245 Malnutrition, 383, 411–412 Malthusian population trap, 173–174, 296–302 Manufactured exports, 66–67, 608–609, 635–636 Manufacturing, 66–67 See also Industrialization Market economy, 558–559 Market failure, 137, 212, 446–447, 544–545, 651 Market-friendly approach, 137 Market fundamentalism, 135–140 Marshall Plan, 120, 123–124 Megacities, 334–335 Mexico, 255 debt crisis, 700–702 decentralization, 579–580 education, health, and nutrition program, 425–428 Microeconomic theory of fertility, 303–305 Microfinance, 781, 793–799 Middle East, 289, 717 Middle East and North Africa (MENA), 717 Middle-income trap, 166, 205 Migration, international, 76–78, 313–314 Migration, rural-to-urban development and, 65–66, 356–357, 365–368 economic theory of, 355–365 Military, 100 Millennium Development Goals, 8, 24–27, 337 Minifundio See Latifundio-minifundio pattern Minimum wages, 33, 252, 257–258, 273 Missing women problem, 399–400 Mita system, 71–72 Modern-sector enlargement growth, 232–233 Modern-sector enrichment growth, 233–234 Monopolies, 139 in international trade, 625 More developed countries (MDCs), 10 Morocco, 281, 386 Mozambique, 237, 245 Multidimensional Poverty Index (MPI), 242–248, 281 Multidimensional poverty measurement, 230 See also Multidimensional Poverty Index (MPI) Multifiber Arrangement (MFA), 635 Multinational corporations, 732–744 investment following global financial crisis, 712 Multiple equilibria, 168–174, 178–181, 183–187 Multisector models of development planning, 549–550 857 Namibia, 40 Neglected tropical diseases, 418–419 Neoclassical counterrevolution, 135–140, 143, 144, 563 Neoclassical growth model, 137–139, 155–158, 312 Neoclassical price incentive model See Price incentive model Neoclassical trade model, 614–619 Neocolonial dependence model, 131–133 Nepal, 245 Net present value, 360, 375–376, 553 Net savings ratio, 121–123 New Consensus, 561–562 New growth theory See Endogenous growth New Human Development Index (New HDI), 51–57, 104 Newly industrializing countries (NICs), 44 New political economy approach See Public-choice theory New Zealand, 289 NHDI See Human Development Index (HDI), new Niger, 245, 509–511 Nigeria, 281, 288 population growth, 291 urbanization, 441–442 Nominal rate of protection, 641–642 Nongovernmental organizations (NGOs), 248, 447, 569–576, 581–582, 583–591 local participation, 581–582 role in development assistance, 755–756 Norms, role of, 172, 184, 300–301 North Africa, 717 North America, 4–5, 289 agriculture, 471 North-South models of international trade, 620–622 Nutrition See Malnutrition Odious debt, 704 Official development assistance See Development assistance Opportunidades program See Progresa/Oportunidades program Organization for Economic Cooperation and Development (OECD) countries, 42, 216 agriculture, 440 relative country convergence, 82–83, 107 taxation in, 805–806 urbanization, 437 O-ring theory of economic development, 166, 187–191 Overvaluation (of exchange rates), 640 P2 poverty measure See Foster-Greer-Thorbecke poverty index Pacific, 62 Pacific Islands, 44 Pakistan, 96–101, 245, 454 858 Subject Index Parasitic worms, 387, 418–419 Participation See Development participation Path dependency, 566–567 Patterns-of-development analysis, 129–130, 134, 142, 144, 723 Pecuniary externalities, 175, 181, 212 Per capita income, 74–75 Personal income distribution See Size distribution of income Person-equivalent headcount measure, 229–230 Peru, 71–72, 135, 171, 454 Petrodollar recycling, 694 Philippines, 440, 454 Planning See Development planning Poland, 814–815 Policy formulation, 562–569 Political economy, 9–10, 206, 401–402 Pollution tax, 520 Population and development, 63–64, 75–76, 98, 266, 284–293 age structure, 290–291 colonial production structure, 88 demographic dividend in China, 207 by geographic region, 287–289 labor force growth, 150–151 Malthusian population trap, 173–174 per capita income, 59 population policy, 315–324, 319–324 Population distribution, 309 Population growth, 63–64, 291–293 Population momentum See Hidden momentum of population growth Population-poverty cycle, 311 Population projections, 284–285, 291 Population pyramids, 292–293 Portfolio investment (international), 731–732 Positive assortative matching, 188 Poverty, 61–63 See also Absolute poverty in China, 204 conflict, violent, 760 definitions, 216–218 environmental policy and, 527 global financial crisis and, 713–714 in Haiti and Dominican Republic, 535 household financial arrangements, 794 Poverty gap, 227–228 See also Absolute poverty Poverty trap, 57, 186, 447 Prebisch-Singer hypothesis, 610–612 Price incentive model, 272–274 Prices, food, 443, 446, 473–474 Prisoner’s dilemma, 168 Private costs of education, 403–404 Private goods, 570–571 Privatization, 514–515, 812–815 Production possibility curve, 150–151 Productivity, 57, 59 agricultural, trends in, 440–446 in East Asia, 201–202 health and, 420–422 vent-for-surplus theory of international trade, 622–623 Progresa/Oportunidades program, 425–427 Project appraisal, 550–554 Property rights, 70, 202, 454, 512–513, 526–527 Protection, effective rate of, 641–642 Public administration, 815–816 Public-choice theory, 137 Public goods and bads, 515–518, 545, 570 Punctuality, as equilibrium, 171 Purchasing power parity (PPP), 45, 48–49, 103, 112–113 Quotas, 627 Rain forests, 33–34, 523–525 Randomized control trials (RCTs), 172–173, 395, 407, 426, 757, 769 Redistribution of income and wealth, 259–260 Regression discontinuity design (RDD), 71–72 Remittances, 713, 744–746 Rent, 603 Research and development (R&D) activities, 79, 160, 531 Resilience to climate change See Climate change: adaptation to Resource endowment, 69, 74, 208 See also Common property resources Resource mobilization and allocation, 546 Romer endogenous growth model, 161–162 Rostow’s stages of growth model See Stages-of(economic)-growth model of development Rotating savings and credit associations (ROSCAs), 793 Rural development, 437–440, 474–476 Rural poverty, 250–251 Rural-urban migration, 65–66, 338, 448 labor supply assumptions in Lewis model, 128–129 Russia, 202–204 Rwanda, 114 Sanitation, 522–523 Savings, domestic capital flight, 231 in China, 204, 207 Savings gap, 752 Scientific capacity See Technological progress Screening, in workfare, 261 Screening hypothesis, in sharecropping 467 Sector, 27 Selection bias, 83 Self-discovery, economic development as, 192–193, 195 Subject Index Self-esteem, 22, 23 Senegal, 580 Service sector employment, 66–68 Servitude, freedom from, 23–24 Sharecropping, 454, 466–468, 487 Sierra Leone, 327 Singapore, 316–317 Size distribution of income, 218–220 Skills, 166–167, 182, 188–191 Slums See Urban informal sector Social accounting matrix (SAM), 550 Social costs of education, 403–404 Social fractionalization, 64–65 Social inclusion, 34 Social norms See Norms, role of Social systems, economies as, 15–16 Solow growth model See Neoclassical growth model Solow residual, 159 Somalia, 444–445 South America, 5–6 See also individual country entries South Asia, 2, 5, 62, 242, 441 See also individual country entries Southeast Asia, 715–716 See also individual country entries South Korea, 136, 142–143, 175, 178, 239, 474 trade, capital flows, and development strategy, 720–725 Soviet Union, former, 203 Squared poverty gap See Foster-Greer-Thorbecke poverty index Stabilization See Macroeconomic stabilization Stages-of-(economic)-growth model of development, 120, 123–124 State-owned enterprises (SOEs), 203, 742–743, 810–812 Status quo bias, 564–565 Stiglitz-Sen-Fitoussi (“Sarkozy”) Commission on the Measurement of Economic Performance and Social Progress, 22 Stock markets, 712, 803–805 Structural adjustment programs, 685 Structural change theory, 124 Structural patterns See Patterns-of-development analysis Sub-Saharan Africa, 26, 62 See also Africa; individual country entries agriculture, 440, 441 HIV/AIDS, 414 population growth, 289, 291, 310, 319 poverty, 241–242, 245–246, 256 private rate of return to primary education, 389–390 rural population, 437 women in agriculture, 477 Subsistence economy, Subsistence farming See Agriculture Sudan, 474 859 Sustainable development See Environment and Development Sustainable Development Goals (SDGs), 27, 33 Sustenance, 22–23 Taiwan, 136, 200, 239, 663–666 Tanzania, 131, 281 Tariffs, 602–603, 607, 625, 627, 633, 636, 637–643, 641–644 Taxation, 260, 805–810 Teacher absenteeism, 576 Technique See Choice of technique; Technological progress Technological externalities, 180–181 Technological progress, 74, 80–81, 122, 151–154, 191 Technology See also Appropriate technology agricultural, 472 international trade, 623–624 Technology transfer, 31–32 Terms of trade, 78–79, 610–612 Timor-Leste, 245 Todaro migration model, 358–365 Total poverty gap (TPG), 227–228 Trade, 78–79 See also International trade Traditional sector enrichment growth, 233–234 Transfer pricing, 738–739 Trans-Pacific Partnership, 662 Turkey, 22 Two-gap models, 751–753 Uganda, 172–173, 279, 416–417 Underdevelopment, 17–18, 69–70, 132, 165–168, 308 UNICEF, 394–396 Unitary household model, 460–461 United Kingdom, 79, 135, 266–267 age structure and dependency burdens, 290 former colonies of, 266–267, 269 United Nations, 24–27, 42, 281, 291, 319, 331–337, 383, 399, 408, 409, 411, 570, 580, 611, 711, 713, 761, 819 United Nations Conference on Trade and Development (UNCTAD), 604, 633, 671, 712 United Nations Development Programme (UNDP), 26, 44, 51, 56, 136, 216, 230, 243–246, 263, 444, 506, 569, 635–636, 655–656, 661, 817 United Nations Food and Agriculture Organization (FAO), 438, 475 United Nations Population Division, 284, 291, 321, 480 United Nation’s World Food Program (WFP), 445 United States, 40, 48, 135, 255 age structure and dependency burdens, 290 agriculture, 448, 477, 634 Chinese direct foreign investment, 206 energy use, 318, 530 European migration to, 76 860 Subject Index United States (continued) exchange rates, 640 foreign military assistance, 143 global financial crisis, 706–719 Haiti and, 533–535 income distribution, 237 income per capita, 48 Taiwan and, 667–668 trade protection, 636, 643 Urban bias, 336, 345–347 Urban giantism, 344–348 Urban informal sector, 336–337, 348–355, 518–519 Urbanization, 330–338 big push and, 181 in China, 207 environmental problems, 518–523 environmental problems of urban slums, 518–519 Urban populations, 65 Urban scale, 343–344 Uruguay, 452 Value-added tax (VAT), 808, 810 Values, in development, 14–15, 16 Venezuela, 389, 452 Vent-for-surplus theory of international trade, 622–623 Vietnam, 249, 440 Violent conflict See Conflict, violent Voices of the poor, 8, 37, 384 Voluntary failure, in NGOs 575 Voting patterns, 564–566 Washington Consensus, 560–562 Water, 498 providing clean, 316 shortages in China, 204–205 urban supply of clean, 522–523 Wealth, destruction of, 760 West Africa, 135 West Germany, 135 Where-to-meet dilemma, 168 Women See also Gender discrimination population growth and, 309 poverty, 251–255 Women and agriculture, 458–462, 477–482 Women and development, 24, 300–301, 306–307, 309, 317–318, 322, 396–400 environmental policy and, 527 gender equity, 99 missing women, 399–400 mothers’ health knowledge, improving, 386 urban informal sector, 354–355 Women and health, 294–295, 309 contraception, 317 Workfare, 261–262 World Bank, 136, 197, 240–241, 265, 268, 437, 440, 442, 448, 686–688 World Health Organization (WHO), 406–407 World Trade Organization (WTO), 73, 601, 602, 606, 625, 629, 653–654, 660, 661–662 Yemen, 245 Zaire See Congo, Democratic Republic Zambia, 236, 237 Zimbabwe, 22, 289 Income GNI per capita, World Bank Atlas method, 2011 Lower-income-countries ($1,025 or less) Lower-middle-income countries ($1,026–$4,035) Upper-middle-income countries ($4,036–$12,475) High-income countries ($12,476 or more) Greenland (Den) NO DATA Faeroe Islands (Den) Iceland Norwa The Netherlands C a n a d a United Kingdom Isle of Man (UK) Denm Ireland Channel Islands (UK) Ger Belgium Luxembourg France Switzerla It Liechtenstein Kosov Andorra U n i t e d S t a t e s Monaco Gibraltar (UK) Bermuda (UK) British Virgin Islands (UK) Mexico Turks and Caicos Islands (UK) Cayman Islands (UK) The Bahamas Dominican Republic Puerto Cuba Rico (US) Sint Maarten (Neth) Algeria Western Sahara St Kitts and Nevis Mauritania Cape Verde Belize Jamaica Haiti Nig Guadeloupe (Fr) Mali Dominica Guatemala Honduras Aruba Senegal Martinique (Fr) The Gambia (Neth) El Salvador St Lucia Burkina Faso Nicaragua Guinea-Bissau Barbados Guinea Benin Panama Costa Rica St Vincent and the Grenadines Trinidad Nigeria Sierra Leone Grenada Cụte Ghana and Tobago Curaỗao R.B de Liberia d'Ivoire Cam French Guiana (Neth) Venezuela Guyana Togo (Fr) Colombia Equator Suriname São Tomé and Príncipe G Ecuador Antigua and Barbuda Kiribati Latin America & Caribbean $8,645 Tu Morocco Middle East & North Africa St Martin (Fr) $7,097 US Virgin Islands (US) Spain Portugal Peru B r a z i l French Polynesia (Fr) Bolivia Paraguay Brazil $10,720 Uruguay Chile Argentina Source: Data from Atlas of Global Development, 4th ed., pp 16-17: World Bank and Collins 2013 ATLAS OF GLOBAL DEVELOPMENT: A VISUAL GUIDE TO THE WORLD’S GREATEST CHALLENGES, FOURTH EDITION Washington, DC and Glasgow: World Bank and Collins doi: 10.1596/978-0-8213-9757-2 License: Creative Commons Attribution CC BY 3.0 Russian Federation $10,400 Europe & Central Asia $23,562 Sweden y Finland mark Estonia Latvia Lithuania R u s s i a n Czech Republic Slovak Republic Slovenia Croatia Ukraine Kazakhstan Serbia Austria Hungary Moldova Bosnia and Herzegovina and Romania FYR Macedonia aly Montenegro Bulgaria Uzbekistan Georgia vo Albania Armenia Azerbaijan Greece Turkmenistan Tajikistan Turkey Cyprus San Syrian Marino Islamic Republic nisia Lebanon Arab Rep of Iran Afghanistan Malta Iraq Israel Kuwait Jordan Pakistan West Bank and Gaza Bahrain Libya Saudi Arabia Arab Rep of Egypt United Arab Qatar Emirates Poland many F e d e r a t i o n Belarus Mongolia Dem People's Rep of Korea Kyrgyz Republic Nepal Bhutan India Myanmar India $1,410 Rep of Yemen Chad Sudan Djibouti a meroon Central African Republic South Sudan Ethiopia al Guinea Uganda Rep of Kenya Gaboncongo Rwanda Dem Rep of Congo Burundi Tanzania Zambia Malawi N Mariana Islands (US) Vietnam Cambodia Philippines Somalia Maldives Guam (US) Brunei Darussalam East Asia & Pacific $7,857 Marshall Islands Palau Malaysia Federated States of Micronesia Singapore Nauru Indonesia Seychelles South Asia $1,299 Comoros Angola Lao P.D.R Thailand Sri Lanka Japan China $4,930 Bangladesh Oman Eritrea ger Rep of Korea C h i n a Mayotte (Fr) Papua New Guinea Solomon Islands Vanuatu Zimbabwe Mozambique Namibia Botswana Madagascar Réunion (Fr) Mauritius A u s t r a l i a New Caledonia (Fr) Swaziland Lesotho South Africa Tuvalu American Samoa (US) Timor-Leste Sub-Saharan Africa $1,265 New Zealand Fiji Samoa Tonga