Efnisyfirlit

• Cover
• Title
• Copyright
• Brief Content
• Content
• Case Studies and Boxes
• Figures and Tables
• Preface
• 1 Introducing Economic Development: A Global Perspective
• 1.1 Introduction to Some of the World’s Biggest Questions
• 1.2 How Living Levels Differ Around the World
• 1.3 How Countries Are Classified by Their Average Levels of Development: A First Look
• 1.4 Economics and Development Studies
• 1.4.1 Wider Scope of Study
• 1.4.2 The Central Role of Women
• 1.5 The Meaning of Development: Amartya Sen’s “Capability” Approach
• 1.6 Happiness and Development
• 1.7 The Sustainable Development Goals: A Shared Development Mission
• 1.7.1 Seventeen Goals
• 1.7.2 The Millennium Development Goals, 2000–2015
• 1.7.3 Implementing the Sustainable Development Goals
• 1.8 Some Critical Questions for the Study of Development Economics
• ■ Case Study 1: Comparative Economic Development: Pakistan and Bangladesh
• 2 Comparative Economic Development
• 2.1 An Introduction
• 2.2 What is the Developing World? Classifying Levels of National Economic Development
• 2.2.1 Conventional Comparisons of Average National Income
• 2.2.2 Adjusting for Purchasing Power Parity
• 2.2.3 Other Common Country Classifications
• 2.3 Comparing Countries by Health and Education, and the Human Development Index
• 2.3.1 Comparing Health and Education Levels
• 2.3.2 Introducing the Human Development Index
• 2.3.3 Human Development Index Ranking: How Does it Differ from Income Rankings?
• 2.3.4 Human Development Index: Alternative Formulations
• 2.4 Key Similarities and Differences Among Developing Countries
• 2.4.1 Levels of Income and Productivity
• 2.4.2 Human Capital Attainments
• 2.4.3 Inequality and Absolute Poverty
• 2.4.4 Population Growth and Age Structure
• 2.4.5 Rural Economy and Rural-to-Urban Migration
• 2.4.6 Social Fractionalisation
• 2.4.7 Level of Industrialisation and Manufactured Exports
• 2.4.8 Geography and Natural Resource Endowments
• 2.4.9 Extent of Financial and Other Market Development
• 2.4.10 Quality of Institutions and External Dependence
• 2.5 Are Living Standards of Developing and Developed Nations Converging?
• 2.5.1 The Great Divergence
• 2.5.2 Two Major Reasons to Expect Convergence
• 2.5.3 Perspectives on Income Convergence
• 2.6 Long-Run Causes of Comparative Development
• 2.7 Concluding Observations
• ■ Case Study 2: Institutions, Colonial Legacies, and Economic Development: Ghana and Côte d’Ivoire
• Appendix 2.1 The Traditional Human Development Index (HDI)
• Appendix 2.2 How Low-Income Countries Today Differ from Developed Countries in Their Earlier Stages
• 3 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
• 3.2.1 Rostow’s Stages of Growth
• 3.2.2 The Harrod-Domar Growth Model
• 3.2.3 Obstacles and Constraints
• 3.2.4 Necessary Versus Sufficient Conditions: Some Criticisms of the Stages Model
• 3.3 Structural-Change Models
• 3.3.1 The Lewis Theory of Economic Development
• 3.3.2 Structural Change and Patterns of Development
• 3.3.3 Conclusions and Implications
• 3.4 The International-Dependence Revolution
• 3.4.1 The Neocolonial Dependence Model
• 3.4.2 The False-Paradigm Model
• 3.4.3 The Dualistic-Development Thesis
• 3.4.4 Conclusions and Implications
• 3.5 The Neoclassical Counter-Revolution: Market Fundamentalism
• 3.5.1 Challenging the Statist Model: Free Markets, Public Choice, and Market-Friendly Approaches
• 3.5.2 Traditional Neoclassical Growth Theory
• 3.5.3 Conclusions and Implications
• 3.6 Classic Theories of Development: Reconciling the Differences
• ■ Case Study 3: Classic Schools of Thought in Context: South Korea and Argentina
• Appendix 3.1 Components of Economic Growth
• Appendix 3.2 The Solow Neoclassical Growth Model
• Appendix 3.3 Endogenous Growth Theory
• 4 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
• 4.3.1 The Big Push: A Graphical Model
• 4.3.2 Other Cases in Which a Big Push May Be Necessary
• 4.3.3 Why the Problem Cannot Be Solved by a Super-Entrepreneur
• 4.4 Further Problems of Multiple Equilibria
• 4.4.1 Inefficient Advantages of Incumbency
• 4.4.2 Behaviour and Norms
• 4.4.3 Linkages
• 4.4.4 Inequality, Multiple Equilibria, and Growth
• 4.5 Michael Kremer’s O-Ring Theory of Economic Development
• 4.5.1 The O-Ring Model
• 4.5.2 Implications of the O-Ring Theory
• 4.6 Economic Development as Self-Discovery
• 4.7 The Hausmann-Rodrik-Velasco Growth Diagnostics Framework
• 4.8 Conclusions
• ■ Case Study 4: China: Understanding a Development “Miracle”
• 5 Poverty, Inequality, and Development
• 5.1 Measuring Inequality
• 5.1.1 Size Distributions
• 5.1.2 Lorenz Curves
• 5.1.3 Gini Coefficients and Aggregate Measures of Inequality
• 5.1.4 The Ahluwalia-Chenery Welfare Index (ACWI)
• 5.2 Measuring Absolute Poverty
• 5.2.1 Income Poverty
• 5.2.2 Multidimensional Poverty Measurement
• 5.3 Poverty, Inequality, and Social Welfare
• 5.3.1 What is it About Extreme Inequality That’s So Harmful to Economic Development?
• 5.3.2 Dualistic Development and Shifting Lorenz Curves: Some Stylised Typologies
• 5.3.3 Kuznets’s Inverted-U Hypothesis
• 5.3.4 Growth and Inequality
• 5.4 Absolute Poverty: Extent and Magnitude
• 5.4.1 The Multidimensional Poverty Index (MPI)
• 5.5 Economic Characteristics of High-Poverty Groups
• 5.5.1 Children and Poverty
• 5.5.2 Women and Poverty
• 5.5.3 Ethnic Minorities, Indigenous Populations, and Poverty
• 5.6 Growth and Poverty
• 5.7 Labour, the Functional Distribution of Income, and Inclusive Development
• 5.7.1 The Functional Distribution
• 5.7.2 Labour and Inclusive Development
• 5.8 Policy Options on Income Inequality and Poverty: Some Basic Considerations
• 5.8.1 Areas of Intervention
• 5.8.2 Altering the Functional Distribution of Income Through Relative Factor Prices: Minimum Wage and Capital Subsidy Debates
• 5.8.3 Modifying the Size Distribution Through Increasing Assets of the Poor
• 5.8.4 Progressive Income and Wealth Taxes
• 5.8.5 Direct Transfer Payments and the Public Provision of Goods and Services
• 5.8.6 Applying Insights from Behavioural Economics to Address Poverty
• 5.9 Summary and Conclusions: The Need for a Package of Policies
• ■ Case Study 5: India: Complex Challenges and Compelling Opportunities
• Appendix 5.1 Appropriate Technology and Employment Generation: The Price Incentive Model
• Appendix 5.2 The Ahluwalia-Chenery Welfare Index
• 6 Population Growth and Economic Development: Causes, Consequences, and Controversies
• 6.1 The Basic Issue: Population Growth and the Quality of Life
• 6.2 Population Growth: Past, Present, and Future
• 6.2.1 World Population Growth Throughout History
• 6.2.2 Structure of the World’s Population
• 6.2.3 Demographic Structure and the Hidden Momentum of Population Growth
• 6.3 Demographic Structure and the Demographic Transition
• 6.4 The Causes of High Fertility in Developing Countries: The Malthusian and Household Models
• 6.4.1 The Malthusian Population Trap
• 6.4.2 Criticisms of the Malthusian Model
• 6.4.3 The Microeconomic Household Theory of Fertility
• 6.4.4 The Demand for Children in Developing Countries
• 6.4.5 Implications for Development and Fertility
• 6.5 The Consequences of High Fertility: Some Conflicting Perspectives
• 6.5.1 It’s Not a Real Problem
• 6.5.2 It’s a Deliberately Contrived False Issue
• 6.5.3 It’s a Desirable Phenomenon
• 6.5.4 It Is a Real Problem
• 6.5.5 Goals and Objectives: Toward a Consensus
• 6.6 Some Policy Approaches
• 6.6.1 What Developing Countries Can Do
• 6.6.2 What the Developed Countries Can Do
• 6.6.3 How Developed Countries Can Help Developing Countries with Their Population Programmes
• 6.6.4 Policy for Still-Developing Countries Facing Population Declines
• ■ Case Study 6: “Twins” Growing Apart: Burundi and Rwanda
• 7 Urbanisation and Rural–Urban Migration: Theory and Policy
• 7.1 Urbanisation: Trends and Living Conditions
• 7.2 The Role of Cities
• 7.2.1 Industrial Districts
• 7.2.2 Efficient Urban Scale
• 7.3 Understanding Urban Giants: Causes and Consequences
• 7.3.1 First-City Bias
• 7.3.2 The Political Economy of Urban Giants
• 7.4 The Urban Informal Sector
• 7.4.1 Policies for the Urban Informal Sector
• 7.4.2 Women in the Informal Sector
• 7.5 Migration and Development
• 7.6 Toward an Economic Theory of Rural–Urban Migration
• 7.6.1 A Verbal Description of the Todaro Model
• 7.6.2 A Diagrammatic Presentation
• 7.6.3 Policy Implications
• 7.7 Conclusion: A Comprehensive Urbanisation, Migration, and Employment Strategy
• ■ Case Study 7: Rural–Urban Migration and Urbanisation in Developing Countries: India and Botswana
• Appendix 7.1 A Mathematical Formulation of the Todaro Migration Model
• 8 Human Capital: Education and Health in Economic Development
• 8.1 The Central Roles of Education and Health
• 8.1.1 Education and Health as Joint Investments for Development
• 8.1.2 Improving Health and Education: Why Increasing Income Is Not Sufficient
• 8.2 Investing in Education and Health: The Human Capital Approach
• 8.2.1 Social Versus Private Benefits and Costs
• 8.3 Child Labour
• 8.4 The Gender Gap: Discrimination in Education and Health
• 8.4.1 Education and Gender
• 8.4.2 Health and Gender
• 8.4.3 Consequences of Gender Bias in Health and Education
• 8.5 Educational Systems and Development
• 8.5.1 The Political Economy of Educational Supply and Demand: The Relationship Between Employment Opportunities and Educational Demands
• 8.5.2 Distribution of Education
• 8.6 Health Measurement and Disease Burden
• 8.6.1 HIV/AIDS
• 8.6.2 Malaria
• 8.6.3 Parasitic Worms and Other “Neglected Tropical Diseases”
• 8.7 Behavioural Economics Insights for Designing Health Policies and Programmes
• 8.8 Health, Productivity, and Policy
• 8.8.1 Productivity
• 8.8.2 Health Systems Policy
• ■ Case Study 8: Pathways Out of Poverty: Progresa/Oportunidades in Mexico
• 9 Agricultural Transformation and Rural Development
• 9.1 The Imperative of Agricultural Progress and Rural Development
• 9.2 Agricultural Growth: Past Progress and Current Challenges
• 9.2.1 Trends in Agricultural Productivity
• 9.2.2 Market Failures and the Need for Government Policy
• 9.2.3 Agricultural Extension
• 9.3 The Structure of Agrarian Systems in the Developing World
• 9.3.1 Three Systems of Agriculture
• 9.3.2 Traditional and Peasant Agriculture in Latin America, Asia, and Africa
• 9.3.3 Agrarian Patterns in Latin America: Progress and Remaining Poverty Challenges
• 9.3.4 Transforming Economies: Problems of Fragmentation and Subdivision of Peasant Land in Asia
• 9.3.5 Subsistence Agriculture and Extensive Cultivation in Africa
• 9.4 The Important Role of Women
• 9.5 The Microeconomics of Farmer Behaviour and Agricultural Development
• 9.5.1 The Transition from Traditional Subsistence to Specialised Commercial Farming
• 9.5.2 Subsistence Farming: Risk Aversion, Uncertainty, and Survival
• 9.5.3 The Economics of Sharecropping and Interlocking Factor Markets
• 9.5.4 Intermediate Steps to Mixed or Diversified Farming
• 9.5.5 From Divergence to Specialisation: Modern Commercial Farming
• 9.6 Core Requirements of a Strategy of Agricultural and Rural Development
• 9.6.1 Improving Small-Scale Agriculture
• 9.6.2 Institutional and Pricing Policies: Providing the Necessary Economic Incentives
• 9.6.3 Conditions for Rural Development
• ■ Case Study 9: The Need to Improve Agricultural Extension for Women Farmers: Kenya and Uganda
• 10 The Environment and Development
• 10.1 Environment and Development: The Basic Issues
• 10.1.1 Economics and the Environment
• 10.1.2 Sustainable Development and Environmental Accounting
• 10.1.3 Environment Relationships to Population, Poverty, and Economic Growth
• 10.1.4 Environment and Rural and Urban Development
• 10.1.5 The Global Environment and Economy
• 10.1.6 Natural Resource–Based Livelihoods as a Pathway Out of Poverty: Promise and Limitations
• 10.1.7 The Scope of Domestic-Origin Environmental Degradation
• 10.1.8 Rural Development and the Environment: A Tale of Two Villages
• 10.1.9 Environmental Deterioration in Villages
• 10.2 Global Warming and Climate Change: Scope, Mitigation, and Adaptation
• 10.2.1 Scope of the Problem
• 10.2.2 Mitigation
• 10.2.3 Adaptation
• 10.3 Economic Models of Environmental Issues
• 10.3.1 Privately Owned Resources
• 10.3.2 Common Property Resources
• 10.3.3 Public Goods and Bads: Regional Environmental Degradation and the Free-Rider Problem
• 10.3.4 Limitations of the Public-Good Framework
• 10.4 Urban Development and the Environment
• 10.4.1 Environmental Problems of Urban Slums
• 10.4.2 Industrialisation and Urban Air Pollution
• 10.4.3 Problems of Congestion, Clean Water, and Sanitation
• 10.5 The Local and Global Costs of Rain Forest Destruction
• 10.6 Policy Options in Developing and Developed Countries
• 10.6.1 What Developing Countries Can Do
• 10.6.2 How Developed Countries Can Help Developing Countries
• 10.6.3 What Developed Countries Can Do for the Global Environment
• ■ Case Study 10: A World of Contrasts on One Island: Haiti and the Dominican Republic
• 11 Development Policymaking and the Roles of Market, State, and Civil Society
• 11.1 A Question of Balance
• 11.2 Development Planning: Concepts and Rationale
• 11.2.1 The Planning Mystique
• 11.2.2 The Nature of Development Planning
• 11.2.3 Planning in Mixed Developing Economies
• 11.2.4 The Rationale for Development Planning
• 11.3 The Development Planning Process: Some Basic Models
• 11.3.1 Three Stages of Planning
• 11.3.2 Aggregate Growth Models: Projecting Macro Variables
• 11.3.3 Multisector Models and Sectoral Projections
• 11.3.4 Project Appraisal and Social Cost–Benefit Analysis
• 11.4 Government Failure and Preferences for Markets Over Planning
• 11.4.1 Problems of Plan Implementation and Plan Failure
• 11.4.2 The 1980s Policy Shift Toward Free Markets
• 11.4.3 Government Failure
• 11.5 The Market Economy
• 11.5.1 Sociocultural Preconditions and Economic Requirements
• 11.6 The Washington Consensus on the Role of the State in Development and Its Subsequent Evolution
• 11.6.1 Toward a New Consensus
• 11.7 Development Political Economy: Theories of Policy Formulation and Reform
• 11.7.1 Understanding Voting Patterns on Policy Reform
• 11.7.2 Institutions and Path Dependency
• 11.7.3 Democracy Versus Autocracy: Which Facilitates Faster Growth?
• 11.8 Development Roles of NGOs and the Broader Citizen Sector
• 11.9 Trends In Governance and Reform
• 11.9.1 Tackling the Problem of Corruption
• 11.9.2 Decentralisation
• 11.9.3 Development Participation
• ■ Case Study 11: The Role of Development NGOs: BRAC and the Grameen Bank
• 12 International Trade Theory and Development Strategy
• 12.1 Economic Globalisation: Meaning, Extent, and Limitations
• 12.2 International Trade: Some Key Issues
• 12.2.1 Five Basic Questions about Trade and Development
• 12.2.2 Importance of Exports to Different Developing Nations
• 12.2.3 Demand Elasticities and Export Earnings Instability
• 12.2.4 The Terms of Trade and the Prebisch-Singer Hypothesis
• 12.3 The Traditional Theory of International Trade
• 12.3.1 Comparative Advantage
• 12.3.2 Relative Factor Endowments and International Specialisation: The Neoclassical Model
• 12.3.3 Trade Theory and Development: The Traditional Arguments
• 12.4 The Critique of Traditional Free-Trade Theory in the Context of Developing-Country Experience
• 12.4.1 Fixed Resources, Full Employment, and the International Immobility of Capital and Skilled Labour
• 12.4.2 Fixed, Freely Available Technology and Consumer Sovereignty
• 12.4.3 Internal Factor Mobility, Perfect Competition, and Uncertainty: Increasing Returns, Imperfect Competition, and Issues in Specialisation
• 12.4.4 The Absence of National Governments in Trading Relations
• 12.4.5 Balanced Trade and International Price Adjustments
• 12.4.6 Trade Gains Accruing to Nationals
• 12.4.7 Some Conclusions on Trade Theory and Economic Development Strategy
• 12.5 Traditional Trade Strategies and Policy Mechanisms for Development: Export Promotion Versus Import Substitution
• 12.5.1 Export Promotion: Looking Outward and Seeing Trade Barriers
• 12.5.2 Import Substitution: Looking Inward but Still Paying Outward
• 12.5.3 Tariffs, Infant Industries, and the Theory of Protection
• 12.5.4 The IS Industrialisation Strategy and Results
• 12.5.5 Foreign-Exchange Rates, Exchange Controls, and the Devaluation Decision
• 12.5.6 Trade Optimists and Trade Pessimists: Summarising the Traditional Debate
• 12.6 The Industrialisation Strategy Approach to Export Policy
• 12.6.1 Export-Oriented Industrialisation Strategy
• 12.6.2 The New Firm-Level International Trade Research and the Developing Countries
• 12.7 South–South Trade and Economic Integration
• 12.7.1 Economic Integration and Development Strategy
• 12.7.2 Regional Trading Blocs and Prospects for South–South Cooperation
• ■ Case Study 12: Pioneers in Development Success through Trade and Industrialisation Strategy: South Korea and Taiwan in Comparative Perspective
• 13 Balance of Payments, Debt, Financial Crises, and Sustainable Recovery: Principles, Cases and Policies
• 13.1 Introduction
• 13.2 The Balance of Payments Account
• 13.2.1 General Considerations
• 13.2.2 A Hypothetical Illustration: Deficits and Debts
• 13.3 The Issue of Payments Deficits
• 13.3.1 Some Initial Policy Issues
• 13.3.2 Trends in the Balance of Payments
• 13.4 Accumulation of Debt and Developing-Country Crises: The 1980s Debt Crisis, and its Resolutions and Repercussions
• 13.4.1 External Debt Accumulation and Crisis: The Basic Transfer Framework
• 13.4.2 The 1980s Crisis: Background and Analysis
• 13.4.3 Attempts at Alleviation: Classic IMF Stabilisation Policies, and Strategies for Debt Relief
• 13.5 The 2000s Global Financial Crisis: Economic Development Impacts and Lessons
• 13.5.1 Causes of the Crisis and Challenges to Lasting Recovery
• 13.5.2 Economic Impacts on Developing Countries
• 13.5.3 Differing Impacts across Regions and Developing Country Groups
• 13.5.4 Conditions Affecting Prospects for Stability and Growth
• ■ Case Study 13: Brazil: Meaningful Development or Middle-Income Trap?
• 14 Foreign Finance, Investment, Aid, and Conflict: Controversies and Opportunities
• 14.1 The International Flow of Financial Resources
• 14.2 Private Foreign Direct Investment and The Multinational Corporation
• 14.2.1 Private Foreign Investment: Some Pros and Cons for Development
• 14.2.2 Private Portfolio Investment: Benefits and Risks
• 14.3 The Role and Growth of Remittances
• 14.4 Foreign Aid: The Development Assistance Debate
• 14.4.1 Conceptual and Measurement Problems
• 14.4.2 Amounts and Allocations: Public Aid
• 14.4.3 Why Donors Give Aid
• 14.4.4 Why Recipient Countries Accept Aid
• 14.4.5 The Role of Nongovernmental Organisations in Aid
• 14.4.6 The Effects of Aid
• 14.5 Conflict and Development
• 14.5.1 The Scope of Violent Conflict and Conflict Risks
• 14.5.2 The Consequences of Armed Conflict
• 14.5.3 The Causes of Armed Conflict and Risk Factors for Conflict
• 14.5.4 The Resolution and Prevention of Armed Conflict
• ■ Case Study 14: The Roots of Divergence Among Developing Countries: Costa Rica, Guatemala, and Honduras
• 15 Finance and Fiscal Policy for Development
• 15.1 The Role of the Financial System in Economic Development
• 15.1.1 Differences Between Developed- and Developing-Country Financial Systems
• 15.2 The Role of Central Banks and Alternative Arrangements
• 15.2.1 Functions of a Fully-Fledged Central Bank
• 15.2.2 The Role of Development Banking
• 15.3 Informal Finance and the Rise of Microfinance
• 15.3.1 Traditional Informal Finance
• 15.3.2 Microfinance Institutions: How They Work
• 15.3.3 MFIs: Three Current Policy Debates
• 15.3.4 Potential Limitations of Microfinance as a Development Strategy
• 15.4 Formal Financial Systems and Reforms
• 15.4.1 Financial Liberalisation, Real Interest Rates, Savings, and Investment
• 15.4.2 Financial Policy and the Role of the State
• 15.4.3 Debate on the Role of Stock Markets
• 15.5 Fiscal Policy for Development
• 15.5.1 Macrostability and Resource Mobilisation
• 15.5.2 Taxation: Direct and Indirect
• 15.6 State-Owned Enterprises and Privatisation
• 15.6.1 The Nature and Scope of SOEs
• 15.6.2 Improving the Performance of SOEs
• 15.6.3 Privatisation: Theory and Experience
• 15.7 Public Administration: The Scarcest Resource
• ■ Case Study 15: How Two African Success Stories Have Addressed Challenges: Botswana and Mauritius
• Glossary
• Name Index
• Subject Index