This chapter summarize the couse content: what is development economics? comparative economic development, characteristics of the developing world: diversity within commonality, measuring economic growth and development, human development approach and capability approach: concepts and evolution,...
Revision Lecture 32 Lecture What is Development Economics? • Use of economic analysis, methods and tools to understand the problems, constraints and opportunities facing developing countries – Causes of poverty – Roads to escape poverty – Development and growth over time • Theoretical and empirical work • We study the economic, social, political and institutional mechanisms that lead to development and transformation of the economies CAN YOU GIVE EXAMPLES OF DEVELOPING COUNTRIES? What is Development Economics? continued • How do people achieve material opportunities to live an acceptable life? (and what is acceptable anyway?) • We discuss broad tendencies and stylized facts, that depend on the context of each country. We have no (or few) universal laws… • We want to: – Achieve a better understanding of the problems of poor countries – Achieve a better understanding of how to apply economics – Answer policy questions What Do We Mean by Development? • Traditional Economic Measures – Gross National Income (GNI) – Income per capita – Utility of that income? • The New Economic View of Development – Leads to improvement in wellbeing, more broadly understood • The Central Role of Women – To make the biggest impact on development, societies must empower and invest in women • Amartya Sen’s “Capability” Approach Why Study Development Economics? 1. Moral and ethical reasons – Poverty is unfair – Inequality is unfair (at least at current levels) – Development is human right 2. Our own welfare – Global interactions (wars, environment, refugee) – Global coexistence – Trade and investment 3. Private interests – Job prospects – Perspectives on economics, common allround knowledge 4. Intellectuel curiosity – What causes inequality and poverty and what can be done? – Why do some countries grow and others don’t? Lecture Comparative Economic Development Common Characteristics of developing countries • • • • • • • Lower levels of living and productivity Lower levels of human capital Higher levels of inequality and absolute poverty Higher population growth rates Greater social fractionalization Larger rural population- rapid migration to cities Lower levels of industrialization and manufactured exports • Adverse geography • Underdeveloped financial and other markets • Colonial legacies- poor institutions etc Some Basic Indicators of Development • • • • Health Life Expectancy Education HDI as a holistic measure of living levels – HDI also varies for groups within countries – HDI also varies by region in a country – HDI also reflects rural-urban differences Lecture Characteristics of the Developing World: Diversity within Commonality Strategy for Agricultural and Rural Development Lecture 23 Most of the developing countries of Asia, Africa and Latin America are passing through stage I to stage II They have to face a lot of problems in their agri sector whereby agri sector fails to contribute to their development The economists present a lot of proposals whereby the agri sector would be able to play its dynamic role in the development of poor countries They are as: (1) Improving Small Scale Agriculture - Technology and Innovation (2) Institutional and Pricing Policies - Providing the Necessary Economic Incentives Role of Agriculture in Economic Growth Lecture 24 Land Reforms or Agrarian Reforms Lecture 25 Meaning and Definition: The land reforms or agrarian reforms means all those measures which are aimed at removing those obstacles which are responsible for keeping the agriculture sector backward socially and economically Through these measures not only changes will be brought in the use and the distribution of the land, but the relationships between land lords and tenants will also be improved Thus due to land reforms govt gets legal right over the possession of the lands of people (big landlords) However, in this connection govt pays the compensation, in certain cases Green Revolution (GR) Lecture 26 When better and superior seeds are used; the fertilizers, pesticides, herbicides and sprays are used; and the farm machinery like tractors, harvesters, tube wells and threshers etc., are used to enhance the agriculture output and agri productivity - such all is given the name of Green Revolution (GR) Thus because of GR, the high yielding seeds, fertilizers, agri machinery water and better technology will become available Consequently, the production function for any crop or crops will shift upward in agriculture sector leading to increase the agri output Problems/Demerits of Green Revolution (GR) Lecture 27 Apparently this scheme of GR looks very attractive that it will lead to bring a revolution in agri But Prof Hala Mynit has presented a lot of problems regarding GR (1) Technical Problems: (2) Organizational Problems: (3) Central Economic Issues: (4) Side Effects of Green Revolution: Human Capital: Education and Health in Economic Development Lecture 28 Poverty, Inequality, and Development Lecture 29 Trade Policy in Developing Countries Lecture 30 Policies • Import-Substituting Industrialization • Problems of the Dual Economy • Export-Oriented Industrialization: The East Asi Foreign Aid for Development Assistance Lecture 31 Revision Lecture 32 ... domestic institutions Lecture Measuring Economic Growth and Development The Process of Economic Development Is Development synonymous simply with Economic Growth? Different Development Goals of... MILLENIUM DEVELOPMENT GOALS (MDGs) A global agenda for development Lecture 10 MDG FRAMEWORK ― COMMITS INTERNATIONAL COMMUNITY TO AN EXPANDED VISION OF DEVELOPMENT ― PROMOTES HUMAN DEVELOPMENT. .. FORMS ― EIGTH GOAL – GLOBAL PARTNERSHIP FOR DEVELOPMENT – IS ABOUT MEANS TO ACHIEVE FIRST SEVEN – “A GRAND BARGAIN” 30 Theories of Economic Development - Lecture 11