The Developed and Developing World Income GNI per capita, World Bank Atlas method, 2007 Greenland (Den) Low-income countries ($935 or less) Faeroe Islands (Den) Lower-middle-income countries ($936–$3,705) Iceland Upper-middle-income countries ($3,706–$11,455) Norw The Netherlands High-income countries ($11,456 or more) C a n a d a no data United Kingdom Isle of Man (UK) Denm Ireland Ge Belgium Channel Islands (UK) France Switzerl I Luxembourg Liechtenstein Andorra U n i t e d S t a t e s Monaco British Virgin Islands (UK) Mexico Cayman Islands (UK) Belize The Bahamas Dominican Republic Puerto Cuba Rico (US) Guatemala Honduras Aruba (Neth) El Salvador Nicaragua Panama Costa Rica Latin America & Caribbean $5,540 US Virgin Islands (US) St Kitts and Nevis Antigua and Barbuda Cape Verde Guadeloupe (Fr) Dominica Martinique (Fr) St Lucia Suriname B r a z i l Uruguay Chile Argentina Source: Data from Atlas of Global Development, 2nd ed., pp 10–11 © Collins Bartholomew Ltd., 2010 Mali N Guinea Sierra Leone Liberia Burkina Faso Benin Côte Ghana d'Ivoire Togo Brazil $5,910 Niger Ca Equato São Tomé and Príncipe French Polynesia (Fr) Paraguay Mauritania Guinea-Bissau Ecuador Bolivia Algeria Former Spanish Sahara The Gambia Barbados Peru Tu Morocco Senegal St Vincent and the Grenadines Trinidad and Tobago Grenada R.B de French Guiana Venezuela Guyana (Fr) Colombia Netherlands Antilles (Neth) Kiribati Middle East & North Africa $2,794 Haiti Jamaica Spain Portugal Gibraltar (UK) Bermuda (UK) Russian Federation $7,560 Europe & Central Asia $6,051 Sweden Finland way R u s s i a n F e d e r a t i o n Estonia Latvia Lithuania nmark Czech Republic Slovak Republic Slovenia Croatia Ukraine Kazakhstan Serbia Austria Hungary Moldova Bosnia and Herzegovina Mongolia rland Romania FYR Macedonia Italy Montenegro Bulgaria Uzbekistan Georgia Kyrgyz Republic Albania Armenia Azerbaijan Greece Turkmenistan Turkey Tajikistan Cyprus San Syrian Marino Islamic Republic Tunisia Lebanon Arab Rep of Iran Afghanistan C h Malta Iraq Israel Kuwait Jordan Pakistan West Bank and Gaza Nepal Bhutan Bahrain Libya Saudi Arabia Arab Rep of Egypt United Arab Bangladesh Qatar India Emirates ermany m Poland Belarus Dem People's Rep of Korea Myanmar Oman Niger Eritrea Chad Sudan India $950 Rep of Yemen Djibouti ria ameroon Ethiopia Central African Republic N Mariana Islands (US) Philippines Maldives Kenya Dem Rep of Congo Burundi Guam (US) Brunei Darussalam East Asia & Pacific $2,180 Marshall Islands Palau Malaysia Uganda Rwanda Lao P.D.R Vietnam Cambodia Sri Lanka Japan China $2,360 Thailand Somalia orial Guinea Congo Gabon Rep of Korea i n a Federated States of Micronesia Singapore Nauru Indonesia Seychelles Tanzania Angola Zambia Malawi South Asia $880 Comoros Mayotte (Fr) Papua New Guinea American Samoa (US) Timor-Leste Vanuatu Zimbabwe Mozambique Madagascar Namibia Botswana Réunion (Fr) Mauritius A u s t r a l i a New Caledonia (Fr) Swaziland Lesotho South Africa Tuvalu Solomon Islands Sub-Saharan Africa $952 New Zealand Fiji Samoa Tonga i Economic Development ELEVENTH EDITION Michael P Todaro New York University Stephen C Smith The George Washington University Addison-Wesley Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Donna Battista AVP/Executive Editor: David Alexander Editorial Project Manager: Lindsey Sloan Editorial Assistant: Megan Cadigan Director of Marketing: Patrice Jones AVP/Executive Marketing Manager: Lori DeShazo Marketing Assistant: Ian Gold Managing Editor: Nancy H Fenton Senior Production Project Manager: Kathryn Dinovo Senior Manufacturing Buyer: Carol Melville Creative Director: Christy Mahon Art Director, Cover: Anthony Gemmellaro Cover Designer: Anthony Gemmellaro Cover Art, clockwise from top, left: © David R Frazier Photolibrary, Inc./Alamy; BRAC/Shehzad Noorani; © image100/age fotostock; © Ton Koene/age fotostock Permissions Project Supervisor: Michael Joyce Media Producer: Angela Lee Supplements Editor: Alison Eusden Project Management, Composition, and Design: Nesbitt Graphics, Inc Copyeditor: Bruce Emmer Printer/Binder: Courier, Westford Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 10/12 Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text Copyright © 2012, 2009, 2006, 2003 Michael P Todaro and Stephen C Smith All rights reserved 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 to use material from this work, please submit a written request to Pearson Education, Inc., Rights and Contracts Department, 501 Boylston Street, Suite 900, Boston, MA 02116, fax your request to 617-671-3447, or e-mail at www.pearsoned.com/legal/permissions.htm 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, Stephen C Smith 11th ed p cm Includes index ISBN 978-0-13-801388-2 Economic development Developing countries Economic policy I Smith, Stephen C II Title HD82.T552 2012 338.9009172'4 dc22 2010054260 10 ISBN 10: 0-13-801388-8 ISBN 13: 978-0-13-801388-2 Contents Case Studies and Boxes Preface xvii xix Part One Principles and Concepts 1 Introducing Economic Development: A Global Perspective 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 The Important Role of Values in Development Economics 12 Economies as Social Systems: The Need to Go Beyond Simple Economics 13 1.3 What Do We Mean by Development? 14 Traditional Economic Measures 14 The New Economic View of Development 14 Amartya Sen’s “Capability” Approach 16 Development and Happiness 19 Three Core Values of Development 20 The Central Role of Women 22 The Three Objectives of Development 22 1.4 The Millennium Development Goals 1.5 Conclusions 23 25 ■ Case Study 1: Progress in the Struggle for More Meaningful Development: Brazil Comparative Economic Development 2.1 Defining the Developing World 2.2 Basic Indicators of Development: Real Income, Health, and Education 28 37 38 44 Purchasing Power Parity 44 Indicators of Health and Education 45 2.3 Holistic Measures of Living Levels and Capabilities The Traditional Human Development Index The New Human Development Index 54 47 47 2.4 Characteristics of the Developing World: Diversity within Commonality 56 vii viii Contents Lower Levels of Living and Productivity 57 Lower Levels of Human Capital 59 Higher Levels of Inequality and Absolute Poverty 61 Higher Population Growth Rates 62 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 68 Lingering Colonial Impacts and Unequal International Relations 69 2.5 How Low-Income Countries Today Differ from Developed Countries in Their Earlier Stages 71 Physical and Human Resource Endowments 71 Relative Levels of Per Capita Income and GDP 72 Climatic Differences 72 Population Size, Distribution, and Growth 73 The Historical Role of International Migration 73 The Growth Stimulus of International Trade 76 Basic Scientific and Technological Research and Development Capabilities 76 Efficacy of Domestic Institutions 77 2.6 Are Living Standards of Developing and Developed Nations Converging? 2.7 Long-Run Causes of Comparative Development 2.8 Concluding Observations ■ Case Study 2: Comparative Economic Development: Pakistan and Bangladesh 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 78 83 91 94 109 110 110 Rostow’s Stages of Growth 111 The Harrod-Domar Growth Model 112 Obstacles and Constraints 114 Necessary versus Sufficient Conditions: Some Criticisms of the Stages Model 114 3.3 Structural-Change Models 115 The Lewis Theory of Development 115 Structural Change and Patterns of Development 120 Conclusions and Implications 121 3.4 The International-Dependence Revolution 122 The Neocolonial Dependence Model 122 The False-Paradigm Model 124 The Dualistic-Development Thesis 124 Conclusions and Implications 125 3.5 The Neoclassical Counterrevolution: Market Fundamentalism 126 Challenging the Statist Model: Free Markets, Public Choice, and Market-Friendly Approaches 126 Traditional Neoclassical Growth Theory 128 Conclusions and Implications 129 3.6 Classic Theories of Development: Reconciling the Differences 131 ■ Case Study 3: Schools of Thought in Context: South Korea and Argentina 133 Contents ix Appendix 3.1 Components of Economic Growth 140 Appendix 3.2 The Solow Neoclassical Growth Model 146 Appendix 3.3 Endogenous Growth Theory 150 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 155 156 159 163 The Big Push: A Graphical Model 165 Other Cases in Which a Big Push May Be Necessary 170 Why the Problem Cannot Be Solved by a Super-Entrepreneur 171 4.4 Further Problems of Multiple Equilibria 4.5 Michael Kremer’s O-Ring Theory of Economic Development 172 176 The O-Ring Model 176 Implications of the O-Ring Theory 179 4.6 Economic Development as Self-Discovery 4.7 The Hausmann-Rodrik-Velasco Growth Diagnostics Framework 4.8 Conclusions ■ Case Study 4: Understanding a Development Miracle: China 180 182 185 189 Part Two Problems and Policies: Domestic 201 Poverty, Inequality, and Development 5.1 Measuring Inequality and Poverty Measuring Inequality 204 Measuring Absolute Poverty 202 204 211 5.2 Poverty, Inequality, and Social Welfare 219 What’s So Bad about Extreme Inequality? 219 Dualistic Development and Shifting Lorenz Curves: Some Stylized Typologies 221 Kuznets’s Inverted-U Hypothesis 224 Growth and Inequality 228 5.3 Absolute Poverty: Extent and Magnitude 229 Growth and Poverty 232 5.4 Economic Characteristics of High-Poverty Groups 235 Rural Poverty 236 Women and Poverty 237 Ethnic Minorities, Indigenous Populations, and Poverty 240 5.5 Policy Options on Income Inequality and Poverty: Some Basic Considerations Areas of Intervention 241 Altering the Functional Distribution of Income through Relative Factor Prices 242 Modifying the Size Distribution through Increasing Assets of the Poor 244 241 x Contents Progressive Income and Wealth Taxes 245 Direct Transfer Payments and the Public Provision of Goods and Services 246 5.6 Summary and Conclusions: The Need for a Package of Policies 248 ■ Case Study 5: Institutions, Inequality, and Incomes: Ghana and Côte d’Ivoire 250 Appendix 5.1 Appropriate Technology and Employment Generation: The Price Incentive Model 262 Appendix 5.2 The Ahluwalia-Chenery Welfare Index 265 Population Growth and Economic Development: Causes, Consequences, and Controversies 269 6.1 The Basic Issue: Population Growth and the Quality of Life 6.2 Population Growth: Past, Present, and Future 269 270 World Population Growth throughout History 270 Structure of the World’s Population 273 The Hidden Momentum of Population Growth 277 6.3 The Demographic Transition 6.4 The Causes of High Fertility in Developing Countries: The Malthusian and Household Models 278 281 The Malthusian Population Trap 281 Criticisms of the Malthusian Model 284 The Microeconomic Household Theory of Fertility 285 The Demand for Children in Developing Countries 288 Implications for Development and Fertility 289 6.5 The Consequences of High Fertility: Some Conflicting Perspectives 290 It’s Not a Real Problem 291 It’s a Deliberately Contrived False Issue 292 It’s a Desirable Phenomenon 292 It Is a Real Problem 294 Goals and Objectives: Toward a Consensus 297 6.6 Some Policy Approaches 298 What Developing Countries Can Do 298 What the Developed Countries Can Do 300 How Developed Countries Can Help Developing Countries with Their Population Programs 301 ■ Case Study 6: Population, Poverty, and Development: China and India Urbanization and Rural-Urban Migration: Theory and Policy 7.1 The Migration and Urbanization Dilemma Urbanization: Trends and Projections 7.2 The Role of Cities 303 311 311 312 318 Industrial Districts 318 Efficient Urban Scale 322 7.3 The Urban Giantism Problem 323 First-City Bias 325 Causes of Urban Giantism 325 7.4 The Urban Informal Sector 327 Contents xi Policies for the Urban Informal Sector 329 Women in the Informal Sector 333 7.5 Migration and Development 7.6 Toward an Economic Theory of Rural-Urban Migration A Verbal Description of the Todaro Model A Diagrammatic Presentation 340 Five Policy Implications 342 334 337 337 7.7 Summary and Conclusions: A Comprehensive Migration and Employment Strategy 344 ■ Case Study 7: Rural-Urban Migration and Urbanization in Developing Countries: India and Botswana 347 Appendix 7.1 A Mathematical Formulation of the Todaro Migration Model 356 Human Capital: Education and Health in Economic Development 8.1 The Central Roles of Education and Health 359 359 Education and Health as Joint Investments for Development 361 Improving Health and Education: Why Increasing Income Is Not Sufficient 362 8.2 Investing in Education and Health: The Human Capital Approach 8.3 Child Labor 8.4 The Gender Gap: Discrimination in Education and Health 365 368 373 Consequences of Gender Bias in Health and Education 375 8.5 Educational Systems and Development 377 The Political Economy of Educational Supply and Demand: The Relationship between Employment Opportunities and Educational Demands 377 Social versus Private Benefits and Costs 379 Distribution of Education 381 Education, Inequality, and Poverty 383 Education, Internal Migration, and the Brain Drain 386 8.6 Health Measurement and Distribution 8.7 Disease Burden 386 390 HIV/AIDS 393 Malaria 396 Parasitic Worms and Other “Neglected Tropical Diseases” 397 8.8 Health, Productivity, and Policy Productivity 399 Health Systems Policy 399 400 ■ Case Study 8: Pathways out of Poverty: Progresa/Oportunidades Agricultural Transformation and Rural Development 9.1 The Imperative of Agricultural Progress and Rural Development 9.2 Agricultural Growth: Past Progress and Current Challenges Trends in Agricultural Productivity 419 Market Failures and the Need for Government Policy 404 416 416 419 422 9.3 The Structure of Agrarian Systems in the Developing World Three Systems of Agriculture 423 Peasant Agriculture in Latin America, Asia, and Africa 425 423 www.downloadslide.net NAME INDEX Dahlman, Carl, 198, 629, 679 Dalal, Aparna, 770 Daly, Herman, 507 Daniels, Lisa, 634 Dasgupta, Ajit K., 557 Dasgupta, Partha, 260, 306, 308, 309, 558 Davis, Benjamin, 407 Davison, Jean, 457 De Aghion, Beatriz A., 770 De Haan, Jakob, 539, 559 De Janvry, Alain, 423, 460, 461, 462, 464 De Long, Bradford, 105 De Silanes, Florencia, 107 De Vries, Garritsen M., 642 De Young, Karen, 459 Deaton, Angus, 88, 410 Deere, Carmen Diana, 454, 457, 462 Deininger, Klaus, 461, 464 Demirguc-Kunt, A., 256 Demitriades, Panicos, 769 Den Boer, Andrea M., 412 Deng, Xiaoping, 190 Deolalikar, Anil, 410 Deshler, David, 550, 561 Detragiache, Enrica, 341, 354 Devarajan, Shantayanan, 414, 557 Diamond, Jared, 102, 107, 502, 505 Diaz-Alejandro, Carlos, 769, 771 Dietz, James L., 682 Dinar, Ariel, 480 Dinsmoor, James, 33 Doh, Jonathan P., 560 Dollar, David, 260, 632 Domar, Evesey, 111, 137 Dooley, Michael, 723 Dorfman, Robert, 528, 558 Dornbush, Rudiger, 634, 635, 681, 769 Dorner, Peter, 464 Dosi, Giovanni, 636 Dos Santos, Theotonio, 123, 138 Downing, James, 33 Drake, Deborah, 770 Drazen, Allan, 464 Dreze, Jean, 305, 306, 308, 719, 721 Due, Jean M., 457 Duflo, Esther, 384, 456, 457, 545, 725 Dupuy, Alex, 505 Dutt, Amitava K., 633 Dwyer, Daisy, 261 Easterly, William, 36, 88, 94, 95, 96, 98, 102, 107,149, 256, 295, 309, 724 Ebadi, Shirin, 560 Eber, Fabio, 33 789 Eberstadt, Nicholas, 309 Eckstein, Z., 464 Edge, Wayne, 721 Edwards, Edgar O., 412 Edwards, Sabastian, 635 Ehrenberg, Ronald, 410 Ehrenreich, Barbara, 632 Ehrlich, Anne H., 309 Ehrlich, Paul R., 309 Eilperin, Juliet, 509 Eisenman, Joshua, 683 Elmendorf, Edward, 414 Elson, Diane, 261 Emran, Shahe, 157, 196, 410, 555, 771 Engelbert, Pierre, 256 Engerman, Stanley, 84, 85, 87, 88, 105, 106, 107, 460 Enos, John L., 725 Epifani, Paolo, 723 Erber, Fabio Stefano, 33 Erikson, Siri, 480 Erzan, Refik, 661 Esfahani, Hadi S., 354 Estrin, Saul, 772 Evans, A., 727 Evans, Peter, 677, 679 Evenson, Robert, 455, 457 Fafchamps, M., 462 Fan, C Simon, 104 Fan, Xibo, 412 Fang, Cai, 137 Farnworth, Cathy, 460 Fatema, Kaniz, 555 Fearon, James, 72 Feasel, Edward, 149 Fei, John C H., 115 Feldman, Robert, 723 Feng, Y., 194 Fernandez, Raquel, 559 Feyrer, James, 107 Fielding, David, 86, 505 Fields, Gary, 33, 137, 221, 222, 223, 226, 258, 259, 260, 261, 354 Findlay, Ronald, 350, 354 Finkle, Jason, 309 Firmin-Sellers, Kathryn, 256 Fischer, Stanley, 153 Fishlow, Albert, 136, 260 Fleisher, Belton, 320 Fogel, Robert, 400 Foland, Francis M., 460 Folbre, Nancy, 310 Foster, Andrew, 770 Foster, James, 36, 216, 258, 259, 410, 413 www.downloadslide.net 790 NAME INDEX Frankel, Jeffrey, 108 Freebairn, Donald K., 463 Freidman, Jed, 670, 683 Freire, Paulo, 34 Fry, Maxwell, 723, 769, 771 Fujita, Masahisa, 199, 352 Funkhauser, Edward, 353 Furtado, Celso, 460 Grossman, Gene M., 154 Grubel, Herbert, 635 Grunberg, Isabelle, 509 Guinnane, Timothy W., 767 Guio, Anne C., 305, 306 Gupta, Sanjeev, 726 Gurley, John G., 138 Gustavsson, Rasha, 353 Galenson, David, 106 Gallup, John, 102, 103, 414 Galor, Oded, 175, 196, 199, 259 Gandhi, Indira, 300, 305 Gandhi, Mahatma, 12 Gandhi, P Jegadish, 36 Gang, Ira, 349, 350, 355 Gangopadhyay, Shubhashis, 349, 350, 355 Garcia, Marito, 99, 377, 412 Gaud, William S., 724 Gautam, Madhur, 457 Gershenkron, Alexander, 98 Gertler, Paul, 463, 694, 723 Ghani, Ejaz, 558 Ghatak, Maitresh, 463, 767 Ghatak, Subrata, 459 Ghosh, Pradip K., Gibbons, Robert, 196 Gittinger, G Price, 557, 558 Gladwin, Christiana, 455, 457 Glaeser, Edward, 107, 108, 253, 256, 326, 353 Glennerster, Rachel, 414, 725 Glewwe, Paul, 363, 410, 413 Goldsmith, Arthur, 721 Gollin, Douglas, 137 Goodfriend, Marvin, 104 Goodman, Michael, 460 Goodman, Peter S., 194 Gooptu, Sudarshan, 661 Goulet, Dennis, 15, 16, 35, 36 Grabowski, Richard, 558 Graham, Carol, 35 Gray, John, 13 Green, Steven L., 769 Greenaway, David, 633, 635 Greener, Jefferis R K., 721 Greenwald, Bruce, 771 Greer, Joel, 258 Greider, William, 723 Griffin, Keith, 138, 463, 725 Griffiths, Charles, 508 Grilli, V., 769 Grindle, Merilee S., 138, 559 Gronewold, Nathaniel, 505, 558 Haber, Stephen, 103 Haddad, Lawrence, 407, 409, 458, 462 Haddad, Wadi, 412 Haggard, Stephan, 679 Haggarty, Luke, 772 Hall, Gillette, 102, 261 Hallagan, William S., 463 Hammer, Andrew M., 354 Hammermesh, Daniel, 410 Hammond, Daniel, 256 Handa, Sudhanshu, 407 Handy, Christopher, 35 Hanna, Rema, 545 Hanousek, Jan, 772 Hanushek, Eric A., 413 Harney, Alexander, 194 Harris, John R., 350, 354 Harrison, Anne E., 723 Harrod, Sir Roy, 111, 137 Hartlyn, Jonathan, 505 Hartwick, John M., 509 Harvey, Charles, 721 Harvey, David, 568, 574, 632 Hatton, Timothy J., 726 Hausmann, Ricardo, 29, 33, 139, 181, 182, 199, 200, 505, 614, 636 Hayami, Yujiro, 460, 461, 463 Heal, Geoffrey, 634 Healey, Derek T., 558 Hecksher, Eli, 576 Hewison, Bruce, 480 Heidebrink, G., 507 Heilbroner, Robert, 35 Helfgoth, R., 557 Helmich, Henny, 561 Helpman, Elhanan, 153, 154, 633 Herbst, Jeffrey, 256, 721 Herman, Barry, 658, 682 Hernlund, Ylva, 412 Hibbs, Denglas, 105 Hicks, Norman, 260 Hoddie, Matthew, 726 Hoddinott, John, 407, 461, 462, 726 Hoff, Karla, 105, 196, 198, 200, 461, 557 Homer-Dixon, Thomas, 103 www.downloadslide.net NAME INDEX Horowitz, Andrew, 163 Hossain, Mahabub, 765, 766, 767 Hotez, Peter, 399 Howard, Philip, 505 Hu, Dinghuan, 320 Hu, Zuliu, 190, 194 Huang, C., 726 Huang, Zuhui, 320 Hudson, Valerie M., 412 Hufbauer, Gary, 661 Hulme, David, 555 Human, Johann, 635 Husain, Ishrat, 95, 98, 99 Hussain, Neelam, 99 Hussein, Khaled, 769 Hwang, Jason, 614, 636 Ibanez, Ana Maria, 461 Imbs, Jean, 588, 633 Indyk, Martin S., 683 Ingham, Barbara, 35 Innocenti, Nicol D., 721 Isard, Walter, 318, 323 Ishrat, Husain, 256 Islam, Narzul, 137 Iyer, Lakshmi, 89, 461 Jackson, Cecile, 508 Jacobsson, Steffan, 629 Jacoby, Hanan G., 461, 463, 770 Jain, Sanjay, 138, 770 Jakubson, George, 226 Jallade, Jean-Pierre, 413 Jaramillo, Laura, 505 Jaramillo-Vallejo, Jaime, 769 Jayachandran, Seema, 662, 682 Jeejeebhoy, Shireen J., 309 Jefferis, K., 721 Jensen, Robert, 306 Jimenez, Emmanuel, 412 John Paul II, 123 Johnson, Harry, 127 Johnson, Nancy L., 460 Johnson, Simon, 39, 86, 105, 106, 107, 251, 255, 682, 719, 721 Jolis, Alan, 767 Jolly, Richard, 647 Jones, Leroy, 772 Jovanovic, Boyan, 769 Juncker, Jean-Claude, 671 Kambou, Gerard, 414 Kanbur, S M Ravi, 260, 261, 410, 461 Kang, David, 679 791 Kangasniemi, Mari, 103 Karlan, Dean, 725, 744 Katz, Elizabeth, 461 Kaul, Inge, 509, 560 Kavoussi, Rostam M., 636 Keesing, Donald B., 629, 634 Kellard, Neil, 574, 632 Kelley, Allen, 309 Kennedy, Eileen T., 457 Kennedy, Richard M., 772 Keyfitz, Nathan, 528, 558 Khalily, Baqui, 555, 770 Khama, Seretse, 718, 721 Khan, Haider Ali, 629 Khan, Mahmood, 461 Khan, Mohsin, 190, 194 Khan, Zahed, 767, 770 Khandker, Shahidur, 555, 767, 770 Khatkhata, D R., 771 Kikeri, Sunita, 772 Killick, Tony, 558, 724, 772 Kim, L., 679 Kim, Yongbeom, 149 Kinder, Molly, 415 King, Robert G., 769 King, Timothy, 309 Kinsey, Bill, 726 Kirkpatrick, Colin, 634, 635 Klasen, Stephan, 412 Klitgaard, Robert, 558, 772 Kocenda, Evzen, 772 Korten, David, 723 Kraay, Aart, 260, 632 Kramar, Ralph, 560 Kremer, Michael, 176, 180, 199, 200, 271, 306, 365, 397, 414, 456, 457, 662, 682, 725 Krishnamurti, J., 726 Krueger, Anne, 127, 559, 635, 647 Krugman, Paul, 35, 165, 190, 194, 197, 198, 199, 325, 352, 633, 635, 723 Kumar, Manmohan, 723 Kuznets, Simon, 121, 137, 224, 308, 417, 459 Kwak, James, 682 Kwak, Sungil, 460, Kwon, Jene, 558, 635 La Porta, Rafael, 107, 256 La Ferrara, Eliana, 255 Laffont, Jean-Jacques, 139 Laidler, Nathalie, 555 Lal, Deepak, 127, 559, 636 Lall, Sanjaya, 615, 616, 636, 677, 679, 683 Lamboray, Jean-Louis, 414 Landes, David, 102, 107 www.downloadslide.net 792 NAME INDEX Langer, Arnim 253, 256 Lau, Lawrence J., 194 Laurens, Bernard J., 770 Lavy, Victor, 410 Layard, Richard, 19, 20 Lee, Haeduck, 102, 261 Lee, Thea, 137, 632 Lele, S A., 507 Lessard, Donald R., 639, 681 Levine, Ross, 96, 102, 107, 149, 256, 769, 771 Levine, Ruth, 397, 414, 415 Levy, Santiago, 404, 405, 407 Lewellen, Ted C., 138 Lewis, Jeffrey D., 557 Lewis, John P., 647 Lewis, Maureen A., 414 Lewis, Stephen R., 721 Lewis, W Arthur, 22, 36, 115, 330, 636 Leys, Colin, 138 Li, Guo, 462, 463 Li, Hongbin, 412 Li, Quan, 725 Lin, Justin, 105, 194 Linden, Leigh, 384, 725 Lipton, David, 761 Little, Ian M D., 127, 138, 558, 635 Logan, Rayford, 505 Long, Cheryl, 321 Lopez, Ramon E., 508 Lopez, de Silanes, 256 Lopez–Calva, Luis, 107 Lorenz, Max Otto, 258 Losch, August, 323 Lovell, Catherine H., 555 Lu, D., 194 Lucas, Robert B., 154 Lucas, Robert E B., 336, 349, 350, 353 Luedde-Neurath, Richard, 676, 677 Lula da Silva, Luiz, 32, 33, 679 Lundahl, Mats, 505 Lustig, Nora, 107, 243, 261, 422, 460 Lutz, Matthias, 632 Maathai, Wangari, 457 MacLean, Lauren Morris, 256 Maddison, David, 480 Madsen, Jakob, 574, 632 Maizels, Alfred, 632 Mäler, Karl-Göran, 508 Malik, Arun, 509 Malthus, Reverend Thomas, 281 Mankiw, N Gregory, 149, 769 Manning, Chris, 463 Manor, James, 728 Mansuri, Ghazala, 717, 728, 770 Marchione, Thomas, 726 Marcus, Noland, 697 Marek, Tonia, 410 Maret-Rakotondrazaka, Fenohasina, 410 Marglin, Stephen, 558 Mari, Bhat P N., 306 Marshall, Alfred, 318, 422 Marshall, Monty G., 725 Martinez, Samuel, 506 Masciandro, D., 769 Maskin, Eric, 200 Mason, Andrew, 259 Massey, Douglas, 103 Mathews, John A., 629, 679 Matibag, Euginio, 506 Matin, Imran, 555 Mauldin, W Parker, 308 Max, Emmanuel, 414 Mazumdar, Deepak, 349, 350 McCarthy, F Desmond, 103, 414 McCormick, Dorothy, 321, 352 McDermott, John, 104 McElroy, Marjorie, 307 McGuire, William, 320 McIntosh, Craig, 407 McKay, Andrew, 260 McKinnon, Ronald I., 771 McLeod, Darryl, 243, 261 McMillan, Della, 455 McNamara, Robert, 315, 646 McNicoll, Geoffrey, 309 Mead, Donald C., 353 Megginson, William L., 199, 761, 772 Mehra, Rekha, 454, 457 Mekonnen, Hailu, 458 Mellinger, Andrew D., 102 Mellor, John, 459 Meng, Lingshen, 412 Menon, Rekha, 410, Messer, Ellen, 726 Michener, Victoria, 551, 561 Miguel, Edward, 364, 365, 725, 726, 727, 728 Milanovic, Branko, 83 Mill, John Stuart, 576 Miller, G Tyler, 509 Milner, Chris, 635 Mincer, Jacob, 410 Minot, Nicholas, 634 Miracle, Marvin P., 462 Miranda, Jorge, 635 Mirrlees, James, 558 Mobarak, Ahmed, 539, 559 Mody, Ashok, 190, 194 www.downloadslide.net NAME INDEX Momsen, Janet, 261 Montiel, Peter, 769 Mookherjee, Dilip, 771 Moran, Theodore H., 723 Morduch, Jonathan, 740, 766, 767, 770 Morris, Cynthia T., 108 Morrison, Andrew R., 354 Morrison, Christian, 353 Moses, Leon, 323 Murdoch, James C., 727 Murphy, Kevin, 165, 197 Murthi, Mamta, 305, 306 Mushkin, Selma, 409 Mwabu, Germano, 455 Myint, Hla, 585 Myrdal, Gunnar, 35, 58, 101, 429, 430, 461, 464 Nadvi, Khalid, 319, 321, 352, 635 Naqvi, S N H., 35, 154 Nashashibi, Karim, 636 Naude, W., 726 Nellis, John, 772 Netter, Jeffry M., 199, 761, 772 Neumayer, Eric, 414, 725 Newbery, David N., 771 Newman, Andrew, 199, 259 North, Douglass, 84, 104, 105, 139, 156, 559, 727 Norton, George W., 725 Nugent, Jeffrey, 105 Nurkse, Ragnar, 137 O’Brien, Karen, 480 O’Connell, Stephen A., 635 O’Sullivan, Arthur, 352 Oates, Wallace E., 509 Oberai, A S., 349, 350 Ocampo, José Antonio, 633, 658, 682 Odell, John, 634 Ohlin, Bertil, 576 Olewiler, N., 509 Ollson, Ola, 105 Olsen, Mancur, 559 Omran, Mohammed, 772 Onis, Ziya, 138 Ortiz, Guillermo, 769 Ortiz, Jaime, 725 Osbahr, Henry, 480 Osmani, S R., 767 Oster, Emily, 413 Ostrom, Elinor, 485, 509, 512, 557, 560 Ostrom, Vincent, 560 Otsuka, Keijiro, 460, 461 Over, Mead, 414 Owusu-Yeboah, Mark, 256 Ozler, Berk, 407 Pack, Howard, 198, 629, 636, 676, 679, 680 Paglin, Morton, 258 Paney, A., 307 Papps, Ivy, 558 Pardey, Phillip G., 725 Parente, Stephen, 137 Park, Hong-Jae, 678, 679 Park, Yung Chal, 769 Parker, Susan W., 407 Paternostro, Stefano, 198 Patrick, Hugh, 730, 768 Patrinos, Harry A., 102, 261 Paxson, Christina, 462 Payer, Cheryl, 653, 682 Pearce, David W., 507, 557 Pearce, Robert D., 723 Pender, John, 462 Perotti, Roberto, 260 Perrin, Nicolas, 480, 509 Persson, Torsten, 109, 259, 413 Petri, Peter, 680 Peutz, Detlev, 410 Picard, Louis A., 721 Pillai, V K., 307 Pingali, Prabhu, 459, 463 Piore, Michael, 352 Pishke, Jorn-Steffen, 88 Pitt, Mark, 767 Plateau, Jean Philipe, 509 Pleskovic, Boris, 260 Pollitt, Fonesto, 410 Ponzetto, Giacomo, 107 Pool, John C., 653, 681 Porter, Michael, 136, 318, 352, 584, 633, 680, 721 Portes, Alejandro, 138 Powell, Robert, 728 Prabirjit, Sarkar, 632 Prasad, Pradhan, 349, 350 Prebisch, Raul, 632 Pritchett, Lant H., 78, 101, 307, 309 Psacharopoulos, George, 241, 261, 366, 368, 410, 412 Pugh, Cedric, 354 Pursell, Gary, 676, 680 Pyatt, Graham F., 557 Qian, Yingyi, 192, 194 Qizilbash, Mozaffar, 35 Quelch, John, 555 Querubin, Pablo, 106, 461 793 www.downloadslide.net 794 NAME INDEX Rajapatirana, Sarath, 636 Rakowski, Cathy A., 353 Ram, Rati, 410, 632 Ranis, Gustav, 115 Rao, J Mohan, 724 Rao, Vijayendra, 717, 728 Ravallion, Martin, 102, 189, 194, 260, Rawls, John, 221 Rawski, Thomas, 195 Ray, Debraj, 196, 198, 260 Raymond, Susan, 560 Rees, Albert, 410 Reinhart, Carmen M., 632, 666, 682 Remedio, Elizabeth M., 508 Renaud, Bertrand, 352 Reynolds, Erika, 720, 721 Reynoso, Alejandro, 769 Rhee, Yung-Whee, 676, 677, 680 Rhyne, Elisabeth H., 770 Ricardo, David, 576 Rich, Bruce, 647 Rioja, Felix, 769 Robano, Virginia, 555 Robinson, James A., 85, 86, 103, 105, 106, 107, 108, 251, 411, 559, 719, 721 Robinson, Joan, 730, 768 Robinson, Jonathan, 456 Robinson, Marguerite, 770 Robinson, Sherman, 137, 261, 557, 629, 636 Roc, Nancy, 506 Rodriguez-Clare, Andres, 197, Rodrik, Dani, 29, 90, 103, 105, 106, 108, 136, 139, 181, 182, 197, 200, 256, 260, 531, 559, 614, 616, 632, 634, 635, 636, 682, 723 Rogoff, Kenneth, 666, 682 Roland, Gerald, 194, 195, Romer, David, 108, 149, 769 Romer, Paul, 72, 103, 152, 154, 162, 170, 195, 560 Rose-Ackerman, Susan, 558 Rosenstein-Rodan, Paul, 164, 165, 197 Rosenstrater, Lynn, 480 Rosenzweig, Mark, 462 Ross, David, 260 Ross-Larson, Bruce, 629, 676, 679, 680 Rothbaum, Jonathan, 509 Rostow, Walt W., 111, 133, 134, 135 Roubini, Nouriel, 769 Rousset, Dilma, 33 Rozelle, Scott, 462, 463 Ruan, Jianqing, 321 Rutherford Stuart, 740 Ruthven, Orlanda, 740 Ruttan, Vernon, 460, 463 Ryan, Stephen, 545 Sab, Randa, 409 Sabel, Charles, 352 Sabot, Richard H., 260 Sacerdote, Bruce, 107 Sachs, Carolyn, 461 Sachs, Jeffrey D., 101, 102, 103, 105, 414, 632, 723, 761 Sack, Alexander, 661 Sadoulet, Elizabeth, 460, 461, 462 Sahn, David, 458 Saith, Ashwani, 260 Saito, Katrin, 458 Sala-i-Martin, Xavier, 153, 154, 193, 769, Salamon, Lester M., 561 Salehi-Isfahani, Djavad, 354 Saltz, Ira S., 724 Samad, Hussain A., 767 Samuelson, Paul A., 633 Sananikone, Ousa, 629 Sanders, Richard D., 350 Sandler, Todd, 727 Sangraula, Prem, 260 Santos, Maria Emma, 259 Sardana, M G., 349 Satyanath, Shanker, 727 Savvides, Andreas, 634, 682 Schady, Norbert, 670, 683 Schelling, Thomas C., 375 Schiavo-Campo, S., 557 Schiff, Maurice, 410 Schmitz, Hubert, 321, 352, 634, 635 Schott, Jeffrey, 661 Schultz, T Paul, 407, 414 Scitovsky, Tibor, 635 Scott, Maurice, 635 Sczepanik, E F., 460 Segal, Sheldon, 308 Seers, Dudley, 15, 35 Segalotto, Jean-Francois, 770 Sen, Amartya K., 16-20, 35, 98, 138, 190, 258, 261, 303, 304, 306, 307, 368, 375, 410, 412, 558, 559, 719, 721 Sengupta, Piyali, 407 Sercovich, Francisco Colman, 33 Sergente, Ernest, 727 Shaban, Radwan Ali, 443, 463 Shapiro, Carl, 196, 557 Sharma, Anand, 683 Shaw, Edward S., 771 Shell-Duncan, Bettina, 412 Shepard, Donald S., 414 Shilpi, Forhad, 157, 196 Shinn, David, 683 Shirley, Mary, 772 Shleifer, Andrei, 107, 165, 197, 256 www.downloadslide.net NAME INDEX Siddiqi, Faraz, 33 Siermann, Clemens, 539, 559 Singer, Hans W., 138, 632 Singh, Ajit, 138, 558, 633, 771 Singh, Inderjit, 767 Singh, Manmohan, 633 Singh, Nirvikar, 463 Siphambe, H., 721 Skoufias, Emmanuel, 406, 407 Slemrod, Joel, 756, 771 Smarzynska, Beata, 694 Smillie, Ian, 554, 555, 556, 561 Smith, Adam, 7, 157, 565, 585, 731 Smith, Bruce, 354 Smith, Jason M., 726 Smith, Robert, 410 Smith, Stephen C., 36, 149, 195, 409, 460, 509, 555, 634, 723, 761, 770 Sock, Donald, 550, 561 Soedjatmoko, 13, 35, 36 Soemardjan, Selo, 35 Sokoloff, Kenneth, 85, 87, 88, 105, 106, 107, 460 Solow, Robert, 128, 147, 149, 154 Sommer, Martin, 770 Spence, Michael, 531 Speth, James, 261 Spiegel, Shari, 658, 682 Spolare, Enrico, 102 Spurling, Daphne, 458 Squire, Lyn, 410 Stamos, Steve, 681 Stampini, Marco, 407 Stark, Oded, 104, 349, 350, 353 Staudt, Kathleen, 456, 458 Stecklov, Guy, 407 Stedman, Stephen J., 721 Stein, Howard, 682 Stern, Joseph, 678, 680 Stern, Marc A., 509 Stern, Lord Nicholas, 153, 509, 510, 527, 559, 771 Stewart, Frances, 253, 256, 558, 636, 647, 681, 682, 712, 715, 726, 727 Stiglitz, Joseph, 20, 187, 196, 198, 200, 461, 462, 463, 557, 558, 636, 680, 771 Strauss, John, 400, 401, 415 Strauss-Kahn, Dominique, 671 Streeten, Paul P., 35, 138, 261, 354, 634, 682 Strout, Alan M., 724 Subramanian, Arvind, 105 Subramanian, Shankar, 410 Suh, Sang-Mok, 678, 679 Summers, Lawrence, 99, 108 Sunil, T S., 307 Svedberg, Peter, 412 Svejnar, Jan, 723, 772 Syrquin, Moshe, 137, 629 Tabellini, Guido, 199, 259, 769 Tansel, Aysit, 256, 414 Tanzi, Vito, 751, 771 Taylor, Lance, 138, 507, 557, 647, 682 Teal, Francis, 354 Teegen, Hildy, 36, 560, 724 Teitelbaum, Michael, 309 Temple, Jonathan, 138, 154 Teubal, M., 679 Thaicaronen, Yunyong, 106 Theisen, Ole Mangus, 727 Thomas, David S G., 480 Thomas, Duncan, 377, 400, 401, 412, 415 Thomas, John W., 138 Thomas, Plumper, 725 Thomas, Vinod, 108, 412 Thorbecke, Erik, 258, 557, 628, 630, 677, 680 Thurow, Lester, 195 Tiebout, Charles M., 560 Tietenberg, Tom, 509 Timmer, C P., 459 Tingsong, Jiang, 137, 193, 195 Tinker, Irene, 261 Todaro, Michael P., 350, 351, 354, 412, 557, 558 Todd, Petra, 407 Torres, Sebastian, 86, 505 Toye, John, 138 Trebbi, Francesco, 105 Tsikata, Fui, 256 Turnham, David, 354 Twyman, Chasca, 480 Udry, Christopher, 198, 308, 444, 446, 461, 463 Ugelo, Judith, 506 Uphoff, Norman, 550, 561 Urdal, Henrik, 727 Valdes, Alberto, 410 Valdivia, Martin, 725, 744 Valev, Neven, 769 Van Arkadie, Brian, 463 Vandemoortale, Jan, 36 Vanga, Adja, 256 Varian, Hal, 196, 557 Velasco, Andres, 29, 139, 182, 200 Venables, Anthony J., 199, 352, 637 Verner, Dorte, 138, 256 Verwimp, Phillip, 726 Vieth, Warren, 634 Villanueva, Delano, 770 Vining, Aidan R., 560 795 www.downloadslide.net 796 NAME INDEX Vishny, Robert, 165, 197 Vishwanath, Tara, 341, 354 Vodopevic, Milan, 761 Vogel, Ezra, 195 Von Amsberg, Joachim, 510 Von Braum, Joachim, 410, 458, 597, 634, Von Hayek, Friedrich, 559 Von Pishke, J D., 769 Wacziarg, Romain, 588, 633 Wade, Robert, 626, 627, 634, 636, Wahed, Abu N M., 767 Walter, Barbara F., 728 Walter, Ingo, 506 Wan, Henry, 628, 630, 677, 680 Wang, Fang-Yi, 190, 194 Wang, M., 726 Wang, Shenlin, 137 Wang, Yan, 412 Wang, Yun-Shi, 195 Warford, Jeremy J., 507 Warner, Andrew, 723 Warner, James, 462 Waterston, Albert, 558 Watkins, Kevin, 597, 634 Webb, Patrick, 410 Weber, Alfred, 323 Wei, Shang-Jin, 307 Weibull, Jorgen, 163 Weijland, Hermine, 321 Weil, David N., 149 Weimar, David L., 560 Weitz, Raanan, 462 Weitzman, Martin L., 195 Wen, Ming, 725 Westphal, Larry E., 198, 629, 636, 676, 679, 680 White, Gordon, 199, 680 White, Howard, 256 White, Laurence, 769 White, Sarah, 550, 561 Wickham, Peter, 632 Wik, Mette, 459 Willem te Velde, Dirk, 682 Williams, Heidi, 414 Williamson, Jeffrey G., 352, 727 Williamson, John, 558, 639, 681 Williamson, Oliver, 139 Winters, L Alan, 103 Wodon, Quentin, 461 Wohar, Mark, 574, 632 Woessman, Ludger, 138 Wolf, Holger, 103, 414 Wolf, Martin, 35, 642 Wolfensohn, James D., 646 Wolpin, Kenneth, 407 Woo, Wing Thye, 191, 195 Woodall, Pam, 108 Wu, Yi, 103, 414 Xu, Chenggang, 195 Yaghamian, Behzad, 635 Yamey, Basil, 725 Yang, Dennis Tao, 307 Yang, Jin, 137 Yared, Pierre, 107 Yellen, Janet K., 354 Yezer, Anthony, 352 Yimam, Arega, 256 Yiping, Huang, 137, 193, 195 Yokota, Kazuhiko, 137 Yoo, Chul Gyne, 678, 679 Young, Alwyn, 190, 195 Young, Linda Wilcox, 462 Yunus, Muhammad, 565, 632, 763, 766, 767 Yusuf, Shahid, 33 Zavier, Francis, 305 Zedong, Mao, 303 Zee, Howell H., 751, 771 Zeira, Joseph, 175, 196, 199, 259 Zervos, Sara, 769 Zhang, Xiaobo, 137, 307, 320, 321 Zhou, Ning, 195 Zhu, Xiaodong R., 194 Zhu, Yunwei, 320 Zimmerman, Frederick J., 462 www.downloadslide.net Subject Index Absolute poverty, 2, 6, 61–63 Extent and magnitude, 229–241 And growth, 232–235 Measurement, 211–219 Minorities and indigenous, 240–241 Policies for poverty alleviation, 241–249 Rural, 236–237 Women and poverty, 237–240 See also Child labor, Foster-Greer-Thorbecke index, Headcount ratio, Human poverty index, Poverty gap Acquired immune deficiency syndrome (AIDS), 393–396 Age structure (of population), 276–278 Agglomeration economies, 314, 318–322 Agrarian systems, 423–437 Agriculture, 416–452 Agricultural policies, 447–452 Commercial, transition to, 444–447 Extension, 449, 452, 453–457 Green Revolution, 419–421 Growth and productivity of, 419–422 Market failure in, 422–423 And risk aversion, 438–444 Sharecropping, 442–444 Subsistence, 432–433, 438–442 Ahluwalia-Chenery welfare index, 219, 265–268 Aid See Development assistance AK model See Harrod-Domar growth model Appropriate technology, 262–264 Argentina, 133–136 Asymmetric information, 171 Autarky, 618 Autocracy, 535, 537–539 Azerbaijan, 19 Balance of payments, 639–641, 642–644, 648–649 Bangladesh, 19, 48–49, 94–99, 763–767 Banking systems, 730–734 Benefit-cost analysis See Project appraisal Bhutan, 19, 35 Big push model, 163–172 Birthrate, crude, 63–64, 275 Botswana, 349–350, 718–721 BRAC, 552–556 Brady plan, 657, 660 Brain drain, 386 Brazil, 28–33, 185 BRICs, 28 Capabilities to function, 16–19 Capital accumulation, 140–141 Central banking, 734–737 Child labor, 368–373 Chile, 760–761 China, 43, 52–53, 55, 78, 79, 120, 189–195, 303–305, 320 Choice of technique, 262–264 Cities, role of, 318–323, 344–346 Civil society, 98, 539–546 Civil war See Conflict and development Climate See Geography Climate change, 476–480 And adaptation, 479–480 And mitigation, 478–479 Clusters See industrial districts Coefficient of variation, 210 Colombia, 19 Colonialism, 69–70, 85–89, 503–504 Commodity terms of trade See Terms of trade Common property resources, 483–486, 540–541 Comparative advantage, 575–580 Complementarities, 156–157, 158, 161, 174, 176, 179, 180 Conditional cash transfers, 371, 404–406 Conditionality, 641, 645, 655 Conflict and development, 708–717 Congestion, 492–493 Congo, Democratic Republic, 37, 45, 46, 47, 68, 79, 87 Contract enforcement, 84, 90, 91, 528, 529, 536 Convergence, international income, 78–83 Coordination failure, 156–159, 375 Corruption, 546–547 Cost-benefit analysis See Project appraisal Costa Rica, 38, 50 Côte d’Ivoire 250–255 797 www.downloadslide.net 798 SUBJECT INDEX Death rate, 275, 276 Debt crisis, 650–661, 662–664 Debt-for-equity swap, 659 Debt-for-nature swap, 499 Debt relief, 499, 656–658 Decentralization, 547–548 Deficits, balance of payments, 644–645, 647–649 Deforestation, 475–476 Democracy, 90, 534–539 Demographic transition, 278–281 Dependence, international, 70–71, 122–126, 134–135 Dependency burden, 276 Depreciation (of currency), 609 Devaluation, 609, 651, 655, 659 Developing countries definitions, 5, 7, 38–41 Developing world See Developing countries Development, defined, 23 Development assistance, 697–708 Development banking, 738 Development economics, defined, 7–14 Development participation, 549–551, 716–717 Development planning, 512–526 Deworming, 364–365 Direct foreign investment See Multinational corporations Disability-adjusted life year, 388 Disease burden, 390–399 Distribution of income, 10 Dominican Republic, 185 Dualistic development thesis, 124–125 Economic growth See Growth, economic; and growth models, Economic institutions See institutions Economic planning See Development planning Education and development, 95, 377–386, 545 Benefit-cost analysis, 366–367, 379–481, 410–411 Distribution, 381–385 Education and health, linkages, 361–362 See also Human capital Educational gender gap, 373–374 Effective rate of protection See Protection, effective rate of Elasticity of substitution, 264 El Salvador, 185 Emerging markets, terminology, 41 Employee ownership, in privatization, 758–761 Endogenous growth, 151–154, 162 Environment and development, 31–32, 465–501 Economic models, 481–488 Environmental accounting, 467–468 Environmental degradation, 472–476 Environmental Kuznets curve, 469–470, 489–490 Environmental policy, 478–480, 496–501, 504–505 Global warming and climate change, 471, 476–480 Natural-resources-based livelihoods, 471–472 And population, 468 And poverty, 469 And rural development, 470, 493–496 And urban development, 470–471, 488–493 Ethnicity and development, 218, 240–241 Exchange rates, 607–611 Export earning instability, 572–573 Export promotion, 593–599 Exports, manufactures, 573–575, 597–599 Exports, primary, 571–575 Externality, 481, 486, 490–493 Factor endowment trade theory See Neoclassical trade model Factor price distortions, 263–264 False paradigm model, 124 Family planning programs, 290, 299, 300 Female genital mutilation/cutting, 374–375 Fertility, 275–281 Microeconomic theory of, 285–290 Finance See Financial system Financial crisis, 664–674 Financial repression, 746–747 Financial system, 730–734 Informal, 739–740 Liberalization, 746–747 Microfinance institutions, 740, 741–745, 763–767 Role of, 730–731, 746–747 See also Development banking, Stock markets First city bias, 325 Fiscal policy, 751–756 Food-for-work program See Workfare Foreign aid See Development assistance Foreign direct investment See Multinational corporations Foreign exchange, 607–611 Foster-Greer-Thorbecke poverty index, 214–215 Fractionalization, 64–65 Free trade, 576–581 Functional distribution of income, 210–211 Functionings, 16–18 General agreement on tariffs and trade (GATT), 566 Geography, role of, 67–68, 72–73, 83, 503 Ghana, 250–255, 446 Gini coefficient (of income inequality), 208–210, 224–225, 228–229 Gini coefficient of educational inequality, 382–383 Gini coefficient of land inequality, 426–428 Global public goods, 486–487 Global warming, see climate change Globalization, 563–567 See also International trade, Multinational corporations www.downloadslide.net SUBJECT INDEX Government, role of, 481, 486, 490–493, 747–749 See also Public goods, Market failure, Development planning, Government failure, 524–526 See also Neoclassical counterrevolution Grameen Bank, 763–767 Growth, economic, 76, 78–87, 110–114, 115–120, 128–129, 140–154 Components of, 140–145 And the environment, 469–470 And inequality See Inequality and growth And poverty See Absolute poverty and growth Growth diagnostics, 182–185 Growth models, 112–114, 128–129, 146–154 Guatemala, 52 Haiti, 502–505 Happiness, and development, 19–20 Harris-Todaro model, 340–341 Harrod-Domar growth model, 112–115, 151, 282, 517–519, 702–704 Headcount index, 212 Headcount ratio measure of poverty See Headcount index Health and development, 386–403 Education and health, linkages, 361–362 And productivity, 399–403 See also Human capital Heckscher-Ohlin trade theory See Neoclassical trade model Hidden momentum of population growth, 277–278 Human capital, 59–61, 359–361, 365–368 Education and health as investments, 361–362 Human development index, new, 54–56 Human development index, traditional, 47–54 Human immunodeficiency virus (HIV) See Acquired immune deficiency syndrome Human poverty index, 215, 258–259 Import substitution, 599–607 Income distribution See Distribution of income Income inequality See Inequality, income India, 19, 37, 46, 47, 68, 305–306, 347–349 Indigenous peoples, 218, 240–241 Indonesia, 19 Industrial districts, 318–322 Industrialization, 65–67 See also Big push model, Industrial policy Industrial policy, 613–617, 626–627, 675–678 See also International trade, and industrialization Inequality, 204–210, 219–230 Country data, 31 Educational, 373–374, 382–383 And growth, 220–221 Income, 204–210 799 Measurement, 204–210 Land holdings, 426–429 Infant industry protection, 600–602 Informal finance See Finance, informal Informal sector, 327–334 Input-output models, 519 Institutions, 77, 84–85, 503–504 Integrated rural development See Rural development Interindustry models See Input-output models Interlocking factor markets, 442–444 International Bank for Reconstruction and Development See World Bank International commodity agreements, 596 International dependence See Dependence, international International Food Policy Research Institute (IFPRI), 232, 419, 454 International Monetary Fund (IMF), 641–643, 737, 751 International trade, 567–623 Free trade, 576–581 And industrialization, 613–617 Infant industry, 599–602 Neoclassical trade model, 576–582 North-South models of, 617–619 Policies, 613–623 Theory for, 575–593 Trade optimism, 612–613 Trade pessimism, 611–612 Vent-for-surplus theory of, 585–586 Intergovernmental Panel on Climate Change (IPCC), 476, 477 Inverted-U hypothesis See Kuznets’ inverted-U hypothesis Kenya, 50, 218, 316, 453–457 Kerela, 305–306 Korea, South See South Korea Kuznets’ inverted-U hypothesis, 224–228 Labor force growth, 141–142 Land reform, 31, Latifundio-minifundio pattern, 426–428 Least developed countries, 39 Lewis (two-sector) model, Linkages, 173–174 Lorenz curves, educational, 382–383 Lorenz curves, income, 206–210, 221–224 Lorenz curves, land, 426–427 Macroeconomic stabilization, 641, 642, 654–659 Malaria, 396–397 Malnutrition, 360, 390–392 Malthusian population trap, 281–285 Manufactured exports, 573–575, 597–599 Market economy, 528–530 www.downloadslide.net 800 SUBJECT INDEX Market failure, 68–69, 422–423, 514–515, 588–589 Market friendly approach, 127–128 Market fundamentalism, 126–128 Marshall Plan, 111, 114 Meltzer Commission See International Financial Institutions Advisory Commission Mexico, 404–406, 659–661 Microeconomic theory of fertility, 285–290 Microfinance, 740, 741–745, 763–767 Migration, domestic, 316–318, 334–344, 386 Migration, international, 73–75 Military, 97–98 Millennium Development Goals, 23–25, 36 Minifundio See Latifundio-minifundio pattern Missing women problem, 375–377 Modern sector enlargement growth, 221–223 Modern sector enrichment growth, 221–223 Multidimensional Poverty Index (MPI), 215–219 Multifiber Arrangement (MFA), 598 Multinational corporations, 685–694 Multiple equilibria, 159–163, 174–175 Multisector models, 519–520 Namibia, 37 Neglected tropical diseases, 397–399 Net present value, 366–367, 520–523 Neoclassical counterrevolution, 126–128, 526–528 Neoclassical growth model, 128–129, 147–149, 294–295 Neoclassical price incentive model See price incentive model Neoclassical trade model, 576–582 Neocolonial dependence model, 122–124 New growth theory See Endogenous growth Nominal rate of protection, 604 Nongovernmental organizations (NGOs), 539–546, 552–556, 706 Norms, role of, 163, 173 North-South models of international trade, 583–584 Nutrition See Malnutrition Odious debt, 661–662 Official development assistance See Development assistance Opportunidades program See Progresa O-ring theory of economic development, 176–180 Overvaluation (of exchange rates), 602–609 Pakistan, 94–99 Parasitic worms, 364–365, 390–391, 397–399 Participation See Development participation Path dependency, 536–537 Patterns of development analysis, 120–122, 133, 135, 588, 730 Pecuniary externalities, 164, 170, 172 Personal income distribution See Size distribution of income Philippines, 317 Planning See Development planning Poland, 760–761 Policy formulation, 533–536 Political economy, 377–379, 533–539 Pollution tax, 478, 490–491 Population and development, 63, 64, 73, 278–281, 290–298 Age structure, 276, 281–282 Population policy, 298–302, 303–306 Population distribution, 273–275 Population growth, 270–273, 275–276 Population momentum See Hidden momentum of population growth Population pyramids, 277–278 Portfolio investment (international), 694–695 Positive assortative matching, 177 Poverty See Absolute poverty Poverty gap, 212–213 See also Absolute poverty Prebisch-Singer hypothesis, 573–574 Price incentive model, 262–264 Prisoner’s dilemma, 159, 163 Privatization, 472, 758–761 Production possibility curve, 141–145 PROGRESA program, 404–407 Project appraisal, 520–523 Property rights, 68, 84, 85, 482–483 Protection, effective rate of, 604–605 Protection, nominal, 600–606 Public administration, 761–762 Public choice theory, 127–128 Public goods and bads, 486–489, 540–541 Punctuality, as equilibrium, 163 Purchasing power parity, 44–45, 101 Quotas, 604–605 Rainforests, 493–496, 499–500 Redistribution of income and wealth, 244–246 Remittances, 695–697 Rents, 481–482 Research and development, 76–77 Resource endowment, 67–68 Romer endogenous growth model, 152–154 Rostow’s stages of growth model See Stages of growth Rotating savings and credit associations (ROSCAs), 739–740 Rural development, 417, 447–452 Rural-urban migration, 316–318, 334–344, 386 Rwanda, 50 www.downloadslide.net SUBJECT INDEX Scientific capacity See Technological progress Self-discovery, economic development as, 180–181 Sharecropping, 430, 431, 442–444 Skills, 176–179 Size distribution of income, 204–206 Social accounting matrix (SAM), 520–521 Social fractionalization, 64–65 Social inclusion, 32 Solow growth model See Neoclassical growth model South Korea, 133–136, 675–679 Stabilization See Macroeconomic stabilization Stages of (economic) growth, 111, 133–135 State-owned enterprises (SOEs), 756–761 Stock markets, 749–751 Structural adjustment programs, 645, 646 Structural change theory, 115, 120 Structural patterns See Patterns of development Subsistence farming See Agriculture Sustainable development See Environment and development Taiwan, 624–629 Tanzania, 19, 121 Tariffs, 566, 570, 587, 589, 594, 596, 598, 599, 600–602, 603–607 Faced by the poor, 622 Taxation, 245–246, 751–756 Technological externalities, 151–154, 319, 320 Technological progress, 77, 142–145 Terms of trade, 573–574 Todaro migration model, 337–344 Trade See International trade Traditional sector enrichment growth, 221–223 Transfer pricing, 690–691 Turkey, 19 Two gap models, 702–704 Uganda, 395–396 Unitary household model, 436–437 801 United Nations, 39, 62, 69, 269, 301, 311, 316, 472, 498, 575, 587, 798 United Nations, Millennium Declaration, 23–24 United Nations Conference on Trade and Development (UNCTAD), 596 United Nations Development Program, 23, 24, 39, 47, 54, 215, 216, 249, 330, 479, 502, 504, 598, 622 United Nations’ Food and Agriculture Organization (FAO), 456 United Nations-Habitat, 330, 353 United Nations Population Division, 272, 314 Urban bias, 315, 325, 330, 342, 344 Urban giantism, 323–327 Urban informal sector, 321, 327–334, 347, 348, 349 Urbanization, 312–318 Urban scale, 322–323 Values, in development, 12–13 Venezuela, 366 Vent-for-surplus theory of international trade, 584–586 Voices of the poor, 361 Voluntary failure, 544–545 Voting patterns, 534–535, 559 Washington consensus, 530–532 Where-to-meet dilemma, 159 Women and development, 22, 286–290, 292, 300, 333–334, 433–437 Gender equity, 373–377 Missing women, 375–377 Women and agriculture, 433–437 Women and health, 300 Workfare, 246–247 World Bank, 423, 456, 645–647 World Trade Organization (WTO), 565, 566, 569, 592, 598, 616–617, 620 Zimbabwe, 19 www.downloadslide.net The Developed and Developing World Income GNI per capita, World Bank Atlas method, 2007 Greenland (Den) Low-income countries ($935 or less) Faeroe Islands (Den) Lower-middle-income countries ($936–$3,705) Iceland Upper-middle-income countries ($3,706–$11,455) Norway The Netherlands High-income countries ($11,456 or more) C a n a d a no data United Kingdom Isle of Man (UK) Denmark Ireland German Belgium Channel Islands (UK) Aus France Switzerland Italy Luxembourg Liechtenstein Andorra U n i t e d S t a t e s Monaco British Virgin Islands (UK) Mexico Cayman Islands (UK) Belize The Bahamas Dominican Republic Puerto Cuba Rico (US) Jamaica Antigua and Barbuda Cape Verde Guadeloupe (Fr) Dominica Martinique (Fr) St Lucia Suriname B r a z i l Uruguay Chile Argentina Source: Data from Atlas of Global Development, 2nd ed., pp 10–11 © Collins Bartholomew Ltd., 2010 Mali Guinea Sierra Leone Niger Liberia Burkina Faso Benin Côte Ghana d'Ivoire Togo Brazil $5,910 Nigeria Camero Equatorial G São Tomé and Príncipe French Polynesia (Fr) Paraguay Mauritania Guinea-Bissau Ecuador Bolivia Algeria Former Spanish Sahara The Gambia Barbados Peru Tunisia Morocco Senegal St Vincent and the Grenadines Trinidad and Tobago Grenada R.B de French Guiana Venezuela Guyana (Fr) Colombia Netherlands Antilles (Neth) Latin America & Caribbean $5,540 St Kitts and Nevis Haiti Guatemala Honduras Aruba (Neth) El Salvador Nicaragua Panama Costa Rica Kiribati Middle East & North Africa $2,794 US Virgin Islands (US) Spain Portugal Gibraltar (UK) Bermuda (UK) Gabo www.downloadslide.net Russian Federation $7,560 Europe & Central Asia $6,051 Sweden Finland y R u s s i a n F e d e r a t i o n Estonia Latvia Lithuania ark Czech Republic Slovak Republic Slovenia Croatia Ukraine Kazakhstan Serbia Austria Hungary Moldova Bosnia and Herzegovina Mongolia nd Romania FYR Macedonia aly Montenegro Bulgaria Uzbekistan Georgia Kyrgyz Republic Albania Armenia Azerbaijan Greece Turkmenistan Turkey Tajikistan Cyprus San Syrian Marino Islamic Republic isia Lebanon Arab Rep of Iran Afghanistan C h i Malta Iraq Israel Kuwait Jordan Pakistan West Bank and Gaza Nepal Bhutan Bahrain Libya Saudi Arabia Arab Rep of Egypt United Arab Bangladesh Qatar India Emirates Myanmar Oman many Poland Belarus er Eritrea Chad Sudan India $950 Rep of Yemen Djibouti meroon Ethiopia Central African Republic al Guinea Congo abon Rep of Korea n a Lao P.D.R N Mariana Islands (US) Vietnam Cambodia Sri Lanka Philippines Maldives Kenya Guam (US) Brunei Darussalam East Asia & Pacific $2,180 Marshall Islands Palau Malaysia Uganda Japan China $2,360 Thailand Somalia Rwanda Dem Rep of Congo Burundi Dem People's Rep of Korea Federated States of Micronesia Singapore Nauru Indonesia Seychelles Tanzania Angola Zambia Malawi South Asia $880 Comoros Mayotte (Fr) Papua New Guinea American Samoa (US) Timor-Leste Vanuatu Zimbabwe Mozambique Madagascar Namibia Botswana Réunion (Fr) Mauritius A u s t r a l i a New Caledonia (Fr) Swaziland Lesotho South Africa Tuvalu Solomon Islands Sub-Saharan Africa $952 New Zealand Fiji Samoa Tonga ... Introducing Economic Development: A Global Perspective 1.1 How the Other Half Live 1.2 Economics and Development Studies 2 The Nature of Development Economics Why Study Development Economics? Some... Michael P Economic development / Michael P Todaro, Stephen C Smith 11th ed p cm Includes index ISBN 978-0-13-801388-2 Economic development Developing countries Economic policy I Smith, Stephen... Questions The Important Role of Values in Development Economics 12 Economies as Social Systems: The Need to Go Beyond Simple Economics 13 1.3 What Do We Mean by Development? 14 Traditional Economic