|
|
| Line 1: |
Line 1: |
| {{Economics sidebar}}
| | Annabell Traxler is her identify but it can be not the most [http://Www.Dict.cc/?s=female+identify female identify] out there. Employing is what she does and it is something she actually appreciate. For a while she's been in Delaware but now she is contemplating other solutions. Fishing is the only pastime her spouse isn't going to approve of. See what is new on her [http://Www.wired.com/search?query=web+site web site] listed here: http://futuna.csail.mit.edu:8080/mediawiki/User:QJYAndrewbf<br><br> |
| '''Development economics''' is a branch of [[economics]] which deals with economic aspects of the development process in [[developing countries|low-income countries]]. Its focus is not only on methods of promoting [[economic development]], [[economic growth]] and [[structural change]] but also on improving the potential for the mass of the population, for example, through health and education and workplace conditions, whether through public or private channels.<ref>Bell, Clive (1987). "development economics," [[The New Palgrave: A Dictionary of Economics]], v. 1, pp. 818, 825.</ref>
| |
|
| |
|
| Development economics involves the creation of theories and methods that aid in the determination of policies and practices and can be implemented at either the domestic or international level.<ref>Arndt, H.W. (1981). "Economic Development: A Semantic History," ''Economic Development and Cultural Change'', 29(3), p [http://www.jstor.org/pss/1153704 p. 457]–66. Chicago: The Chicago University Press.</ref> This may involve restructuring market incentives or using mathematical methods like inter-temporal [[Optimization (mathematics)|optimization]] for project analysis, or it may involve a mixture of quantitative and qualitative methods.<ref>Bell, Clive (1987). "development economics," [[The New Palgrave: A Dictionary of Economics]], v. 1, p. 825.</ref>
| | Also visit my web blog - [http://futuna.csail.mit.edu:8080/mediawiki/User:QJYAndrewbf zapatillas salomon wind inca] |
| | |
| Unlike in many other fields of economics, approaches in development economics may incorporate social and political factors to devise particular plans.<ref name="Economic Development">Todaro, Michael and Stephen Smith. Economic Development. 9th ed. Addison-Wesley series in economics, 2006</ref> Also unlike many other fields of economics, there is "no consensus" on what students should know.<ref name="Leading Issues">Meier, Gerald M. and James E. Rauch. Leading Issues in Economic Development. 8th ed. Oxford University Press, 2005</ref> Different approaches may consider the factors that contribute to economic [[Catch-up effect|convergence]] or non-convergence across households, regions, and countries.<ref>[[Debraj Ray|Ray, Debraj]] (2008). "development economics." ''[[The New Palgrave Dictionary of Economics]]'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_D000105&q=development&topicid=&result_number=1 Abstract.]</ref>
| |
| | |
| ==Theories of development economics==
| |
| === Mercantilism ===
| |
| [[File:World GDP Capita 1-2003 A.D.png|thumb|World GDP per capita, 1-2003 A.D.]]
| |
| {{Main|Mercantilism}}
| |
| The earliest Western theory of development economics was [[mercantilism]], which developed in the 17th century, paralleling the rise of the [[nation state]]. Earlier theories had given little attention to development. For example, [[Scholasticism]] the dominant school of thought during medieval feudalism, emphasized reconciliation with Christian theology and ethics, rather than development. The 16th- and 17th-century [[School of Salamanca]], credited as the earliest modern school of economics, likewise did not address development specifically.
| |
| | |
| Major European nations in the 17th and 18th century all adopted mercantilist ideals to varying degrees, the influence only ebbing with the 18th-century development of [[physiocrats]] in France and [[classical economics]] in Britain. Mercantilism held that a nation's prosperity depended on its supply of capital, represented by bullion (gold, silver, and trade value) held by the state. It emphasised the maintenance of a high positive trade balance (maximising exports and minimising imports) as a means of accumulating this bullion. To achieve a positive trade balance, protectionist measures such as tariffs and subsidies to home industries were advocated. Mercantilist development theory also advocated [[colonialism]].
| |
| | |
| Theorists most associated with mercantilism include [[Philipp Wilhelm von Hornick]], who in his ''Austria Over All, If She Only Will'' of 1684 gave the only comprehensive statement of mercantilist theory, emphasizing production and an export-led economy.<ref>{{cite book
| |
| | author=Ekelund, Robert B., Jr. and Hébert, Robert F.
| |
| | title=A History of Economic Theory and Method
| |
| | edition=4th
| |
| | publisher=Waveland Press [Long Grove, Illinois]
| |
| | year=1997
| |
| | isbn=1-57766-381-0
| |
| | pages=40–41}}</ref>
| |
| In France, mercantilist policy is most associated with 17th-century finance minister [[Jean-Baptiste Colbert]], whose policies proved influential in later American development.
| |
| | |
| Mercantilist ideas continue in the theories of [[economic nationalism]] and [[neomercantilism]].
| |
| | |
| === Economic nationalism ===
| |
| [[File:Alexander Hamilton.jpg|thumb|[[Alexander Hamilton]], credited as Father of the National System.]]
| |
| {{Main|Economic nationalism}}
| |
| Following mercantilism was the related theory of [[economic nationalism]], promulgated in the 19th century related to the development and industrialization of the United States and Germany, notably in the policies of the [[American School (economics)|American System]] in America and the [[Zollverein]] (customs union) in Germany. A significant difference from mercantilism was the de-emphasis on colonies, in favor of a focus on domestic production.
| |
| | |
| The names most associated with 19th-century economic nationalism are the American [[Alexander Hamilton]], the German-American [[Friedrich List]], and the American [[Henry Clay]]. Hamilton's 1791 ''[[Report on Manufactures]],'' his magnum opus, is the founding text of the American System, and drew from the mercantilist economies of Britain under Elizabeth I and France under Colbert. List's 1841 ''Das Nationale System der Politischen Ökonomie'' (translated into English as The National System of Political Economy), which emphasized stages of growth, proved influential in the US and Germany, and nationalist policies were pursued by politician [[Henry Clay]], and later by [[Abraham Lincoln]], under the influence of economist [[Henry Charles Carey]].
| |
| | |
| Forms of economic nationalism and neomercantilism have also been key in Japan's development in the 19th and 20th centuries, and the more recent development of the [[Four Asian Tigers]] (Hong Kong, South Korea, Taiwan, and Singapore), and, most significantly, China.
| |
| | |
| === Post-WWII theories ===
| |
| {{See also|Industrial development|Ragnar Nurkse's Balanced Growth Theory}}
| |
| | |
| The origins of modern development economics are often traced to the need for, and likely problems with the industrialization of eastern Europe in the aftermath of World War II.<ref>Meier, G.M. and Seers, D. (Eds) (1984). Pioneers in Development. New York: Oxford University Press for the World Bank. [http://hope.dukejournals.org/cgi/pdf_extract/19/3/503 Review extract.]</ref> The key authors are [[Paul Rosenstein-Rodan]],<ref>Rosenstein-Rodan, P. "Problems of Industrialization in Eastern and South Eastern Europe." Economic Journal 53 (1943).</ref> [[Kurt Mandelbaum]],<ref>Mandelbaum (Martin), K. (1945). The Industrialisation of Backward Areas. Oxford: Basil Blackwell. Second Edition, (1955).
| |
| </ref> [[Ragnar Nurkse]],<ref>Nurkse, Ragnar (1953) Problems of Capital Formation in Underdeveloped Countries, Oxford: Basil Blackwell</ref> and [[Hans Singer|Sir Hans Wolfgang Singer]]. Only after the war did economists turn their concerns towards Asia, Africa and Latin America. At the heart of these studies, by authors such as [[Simon Kuznets]] and [[Arthur Lewis (economist)|W. Arthur Lewis]]<ref>Lewis, W.A. (1954). Economic Development with Unlimited Supplies of Labour. The Manchester School'', XXII(2),, pp. 139–191. [ftp://ftp.uic.edu/pub/depts/econ/wpaper/cchis/old%20docs533%20S07/Economic%20Development%20with%20Unlimited%20Supplies%20of%20Labour%20-%20Arthur%20Lewis.pdf Reprint.]</ref> was an analysis of not only economic growth but also structural transformation.<ref>Bardhan, Pranab K. and Christopher Udry (2000) Development Microeconomics, Oxford</ref>
| |
| | |
| ===Linear-stages-of-growth model===
| |
| An early theory of development economics, the linear-stages-of-growth model was first formulated in the 1950s by [[Walt Whitman Rostow|W. W. Rostow]] in ''The Stages of Growth: A Non-Communist Manifesto,'' following work of Marx and List. This theory modifies Marx's stages theory of development and focuses on the accelerated accumulation of capital, through the utilization of both domestic and international savings as a means of spurring investment, as the primary means of promoting economic growth and, thus, development.<ref name="Economic Development" /> The linear-stages-of-growth model posits that there are a series of five consecutive stages of development which all countries must go through during the process of development. These stages are "the traditional society, the pre-conditions for take-off, the take-off, the drive to maturity, and the age of high mass-consumption"<ref>Rostow, W.W. ''The Five Stages of Growth''. Development and Underdevelopment: The Political Economy of Global Inequality. 3rd ed. pp. 123-131. Eds. Seligson, Mitchell and John Passe-Smith. Boulder, CO: [[Lynne Rienner Publishers]], 2003.</ref> Simple versions of the [[Harrod–Domar model]] provide a mathematical illustration of the argument that improved capital investment leads to greater economic growth.<ref name="Economic Development" />
| |
| | |
| Such theories have been criticized for not recognizing that, while necessary, [[capital accumulation]] is not a sufficient condition for development. That is to say that this early and simplistic theory failed to account for political, social and institutional obstacles to development. Furthermore, this theory was developed in the early years of the [[Cold War]] and was largely derived from the successes of the [[Marshall Plan]]. This has led to the major criticism that the theory assumes that the conditions found in developing countries are the same as those found in post-WWII Europe.<ref name="Economic Development" />
| |
| | |
| ===Structural-change theory===
| |
| | |
| Structural-change theory deals with policies focused on changing the economic structures of developing countries from being composed primarily of subsistence agricultural practices to being a "more modern, more urbanized, and more industrially diverse manufacturing and service economy." There are two major forms of structural-change theory; W. Lewis' ''two-sector surplus model'', which views agrarian societies as consisting of large amounts of surplus labor which can be utilized to spur the development of an urbanized industrial sector, and Hollis Chenery's ''patterns of development'' approach, which holds that different countries become wealthy via different trajectories. The ''pattern'' that a particular country will follow, in this framework, depends on its size and resources, and potentially other factors including its current income level and comparative advantages relative to other nations.<ref>Chenery, H.B. (1960). "Patterns of Industrial Growth," [http://www.jstor.org/stable/1812463 ''The American Economic Review'', 50(4), pp. 624–54]. American Economic Association.</ref><ref>Chenery, H.B. and Taylor, L. (1968). "Development Patterns: Among Countries and Over Time," [http://www.jstor.org/stable/1926806 ''The Review of Economics and Statistics'', 50(4), pp. 391–416]. Cambridge: MIT Press.</ref> Empirical analysis in this framework studies the "sequential process through which the economic, industrial and institutional structure of an underdeveloped economy is transformed over time to permit new industries to replace traditional agriculture as the engine of economic growth."<ref name="Economic Development" />
| |
| | |
| Structural-change approaches to development economics have faced criticism for their emphasis on urban development at the expense of rural development which can lead to a substantial rise in inequality between internal regions of a country. The two-sector surplus model, which was developed in the 1950s, has been further criticized for its underlying assumption that predominantly agrarian societies suffer from a surplus of labor. Actual empirical studies have shown that such labor surpluses are only seasonal and drawing such labor to urban areas can result in a collapse of the agricultural sector. The patterns of development approach has been criticized for lacking a theoretical framework.<ref name="Economic Development" />{{Citation needed|date=August 2007}}
| |
| | |
| ===International dependence theory===
| |
| International [[dependency theory|dependence theories]] gained prominence in the 1970s as a reaction to the failure of earlier theories to lead to widespread successes in [[international development]]. Unlike earlier theories, international dependence theories have their origins in developing countries and view obstacles to development as being primarily external in nature, rather than internal. These theories view developing countries as being economically and politically dependent on more powerful, developed countries which have an interest in maintaining their dominant position. There are three different, major formulations of international dependence theory: [[neocolonial dependence]] theory, the false-paradigm model, and the dualistic-dependence model.
| |
| The first formulation of international dependence theory, neocolonial dependence theory, has its origins in [[Marxism]] and views the failure of many developing nations to undergo successful development as being the result of the historical development of the international capitalist system.<ref name="Economic Development" />
| |
| | |
| ===Neoclassical theory===
| |
| First gaining prominence with the rise of several conservative governments in the developed world during the 1980s, neoclassical theories represent a radical shift away from International Dependence Theories. Neoclassical theories argue that governments should not intervene in the economy; in other words, these theories are claiming that an unobstructed free market is the best means of inducing rapid and successful development. Competitive [[free markets]] unrestrained by excessive government regulation are seen as being able to naturally ensure that the allocation of resources occurs with the greatest efficiency possible and the economic growth is raised and stabilized.<ref name="Economic Development" />{{Citation needed|date=August 2007}}
| |
| | |
| It is important to note that there are several different approaches within the realm of neoclassical theory, each with subtle, but important, differences in their views regarding the extent to which the market should be left unregulated. These different takes on neoclassical theory are the ''free market approach'', ''public-choice theory'', and the ''market-friendly approach''. Of the three, both the free-market approach and public-choice theory contend that the market should be totally free, meaning that any intervention by the government is necessarily bad. Public-choice theory is arguably the more radical of the two with its view, closely associated with [[libertarianism]], that governments themselves are rarely good and therefore should be as minimal as possible.<ref name="Economic Development" />
| |
| | |
| Academic economists have given varied policy advice to governments of developing countries. See for example, [[Economy of Chile]] ([[Arnold Harberger]]), [[Economic history of Taiwan]] ([[Sho-Chieh Tsiang]]). [[Anne Krueger]] noted in 1996 that success and failure of policy recommendations worldwide had not consistently been incorporated into prevailing academic writings on trade and development.<ref name="Economic Development" />
| |
| | |
| The market-friendly approach, unlike the other two, is a more recent development and is often associated with the [[World Bank]]. This approach still advocates free markets but recognizes that there are many imperfections in the markets of many developing nations and thus argues that some government intervention is an effective means of fixing such imperfections<ref name="Economic Development" />
| |
| | |
| ==Topics of Research==
| |
| Development economics also includes topics such as [[Debt of developing countries|Third world debt]], and the functions of such organisations as the [[International Monetary Fund]] and [[World Bank]]. In fact, the majority of development economists are employed by, do consulting with, or receive funding from institutions like the IMF and the World Bank.<ref>Klein, Daniel B and DiCola, Therese. "Institutional Ties of ''Journal of Development Economics'' Authors and Editors". (August 2004) [http://www.econjournalwatch.org/pdf/KleinDiColasInvestigatingAugust2004.pdf]</ref> Many such economists are interested in ways of promoting stable and sustainable growth in poor countries and areas, by promoting domestic self-reliance and education in some of the lowest income countries in the world. Where economic issues merge with social and political ones, it is referred to as [[development studies]].
| |
| | |
| ===Economic Development and Ethnicity===
| |
| A growing body of research has been emerging among development economists since the very late 20th Century focusing on interactions between [[Multiculturalism|ethnic diversity]] and economic development, particularly at the level of the [[Nation state|nation-state]]. While most research looks at empirical economics at both the macro and the micro level, this field of study has a particularly heavy sociological approach. The more conservative branch of research focuses on tests for causality in the relationship between different levels of ethnic diversity and economic performance, while a smaller and more radical branch argues for the role of [[Neoliberalism|neoliberal economics]] in enhancing or causing [[ethnic conflict]]. Moreover, comparing these two theoretical approaches brings the issue of [[Endogeneity (economics)|endogeneity]] (endogenicity) into questions. This remains a highly contested and uncertain field of research, as well as politically sensitive, largely due to its possible policy implications.
| |
| | |
| ====The Role of “Ethnicity” in Economic Development====
| |
| Much discussion among researchers centers around defining and measuring two key but related variables: '''ethnicity''' and '''diversity'''. It is debated whether [[Ethnic group|ethnicity]] should be defined by culture, language, or religion. While conflicts in [[Rwandan Genocide|Rwanda]] were largely along tribal lines, [[Nigerian conflict|Nigeria’s]] recent string of conflicts is thought to be – at least to some degree – religiously based.<ref>Salawu, B. “Ethno-Religious Conflicts in Nigeria: Casual Analysis and Proposal for New Management Strategies.” ''European Journal of Social Sciences'' 13.3 (2010): 345–53. Print.</ref> Some have proposed that, as the [[Salience (language)|saliency]] of these different ethnic variables tends to vary over time and across geography, research methodologies should vary according to the context.<ref name="Alesina 2005">Alesina, Alberto and Eliana La Ferrara. “Ethnic Diversity and Economic Performance.” ''Journal of Economic Literature'' 43 (2005): 762–800. Print.</ref> [[Somalia]] provides an interesting example. Due to the fact that about 85% of its population defined themselves as [[Somali people|Somali]], Somalia was considered to be a rather ethnically-homogeneous nation.<ref name="Alesina 2005"/> However, [[Somali Civil War|civil war]] caused ethnicity (or ethnic affiliation) to be redefined according to [[Clan|“clan”]] groups.<ref name="Alesina 2005"/>
| |
| | |
| There is also much discussion among academia concerning the creation of an [[Index (economics)|index]] for “ethnic heterogeneity”. Several indices have been proposed in order to model ethnic diversity (with regards to conflict). Easterly and Levine have proposed an ethno-linguistic fractionalization index defined as FRAC or ELF defined by:
| |
| :<math>1 - \sum_{i=1}^{N} s_i^2,</math>
| |
| where ''s<sub>i</sub>'' is size of group ''i'' as a percentage of total population.<ref name="Alesina 2005"/> The ELF index is a measure of the probability that two randomly chosen individuals belong to different ethno-linguistic groups.<ref name="Alesina 2005"/> Other researchers have also applied this index to religious rather than ethno-linguistic groups.<ref>Fearon, James D. “Ethnic and Cultural Diversity by Country.” Journal of Economic Growth 8 (2003): 195–222. Print.</ref> Though commonly used, Alesina and La Ferrara point out that the ELF index fails to account for the possibility that fewer large ethnic groups may result in greater inter-ethnic conflict than many small ethnic groups.<ref name="Alesina 2005"/> More recently, researchers such as Montalvo and Reynal-Querol, have put forward the ''Q'' [[Polarization (politics)|polarization]] index as a more appropriate measure of ethnic division.<ref name="Montalvo, Jose G 2005">Montalvo, Jose G. and Marta Reynal-Querol. “Ethnic Diversity and Economic Development.” Journal of Development Economics 76 (2005): 293–323. Print.</ref> Based on a simplified adaptation of a polarization index developed by Esteban and Ray, the ''Q'' index is defined as
| |
| :<math>Q = 1 - \sum_{i=1}^{N} \left(\frac{\tfrac{1}{2} - s_i}{\tfrac{1}{2}}\right)^2 \times s_i,</math>
| |
| where ''s<sub>i</sub>'' once again represents the size of group ''i'' as a percentage of total population, and is intended to capture the social “distance” between existing ethnic groups within an area.<ref name="Montalvo, Jose G 2005"/>
| |
| | |
| Early researchers, such as Jonathan Pool, considered a concept dating back to the account of the Tower of [[Tower of Babel|Babel]]: that linguistic unity may allow for higher levels of development.<ref name="Pool, Jonathan 1972">Pool, Jonathan. “National Development and Language Diversity.” ''Advances in the Sociology of Language'' 2 (1972): 213–30. Print.</ref> While pointing out obvious oversimplifications and the subjectivity of definitions and data collection, Pool suggested that we had yet to see a robust economy emerge from a nation with a high degree of linguistic diversity.<ref name="Pool, Jonathan 1972"/> In his research Pool used the “size of the largest native-language community as a percentage of the population” as his measure of linguistic diversity.<ref name="Pool, Jonathan 1972"/> Not much later, however, Horowitz pointed out that both highly diverse and highly homogeneous societies exhibit less conflict than those in between.<ref>Horowitz, D.L. ''Ethnic groups in conflict.'' Berkeley: University of California Press, 1985. Print.</ref> Similarly, Collier and Hoeffler provided evidence that both highly homogenous and highly heterogeneous societies exhibit lower risk of civil war, while societies that are more polarized are at greater risk.<ref name="Collier 1998">Collier, Paul and Anke Hoeffler. “On Economic Causes of Civil War.” ''Oxford Economic Papers'' 50 (1998): 563–73. Print.</ref> As a matter of fact, their research suggests that a society with only two ethnic groups is about 50% more likely to experience civil war than either of the two extremes.<ref name="Collier 1998"/> Nonetheless, Mauro points out that ethno-linguistic fractionalization is positively correlated with corruption, which in turn is negatively correlated with economic growth.<ref>Mauro, Paolo. “Corruption and Growth.” ''Quarterly Journal of Economics'' 110.3 (1995): 681–712. Print.</ref> Moreover, in a study on economic growth in African countries, Easterly and Levine find that linguistic fractionalization plays a significant role in reducing national income growth and in explaining poor policies.<ref name="ReferenceA">Montalvo, Jose G. and Marta Reynal-Querol. “Ethnic Diversity and Economic Development.” ''Journal of Development Economics'' 76 (2005): 293–323. Print.</ref><ref>Dincer, Oguzhan C. and Fan Wang. “Ethnic Diversity and Economic Growth in China.” ''Journal of Economic Policy Reform'' 14.1 (2011): 1–10. Print.</ref> In addition, [[Empirical evidence|empirical research]] in the [[United States|U.S.]], at the [[Municipality|municipal]] level, has revealed that ethnic fractionalization (based on race) may be correlated with poor [[Fiscal policy|fiscal management]] and lower investments in [[public good]]s.<ref>Alesina, Alberto, Reza Baqir and William Easterly. “Public Goods and Ethnic Divisions.” ''Quarterly Journal of Economics'' 114.4 (1999): 1243–84. Print.</ref> Finally, more recent research would propose that ethno-linguistic fractionalization is indeed negatively correlated with economic growth while more polarized societies exhibit greater public consumption, lower levels of investment and more frequent civil wars.<ref name="ReferenceA"/>
| |
| | |
| ====Economic Development and its Impact on Ethnic Conflict====
| |
| Increasingly, attention is being drawn to the role of economics in ''spawning'' or ''cultivating'' '''ethnic conflict'''. Critics of earlier development theories, mentioned above, point out that “ethnicity” and ethnic conflict cannot be treated as exogenous variables.<ref name="rrp.sagepub">Prasch, Robert E. “Neoliberalism and Ethnic Conflict.” ''Review of Radical Political Economics'' 44.3 (2012): 298–304. Web. Retrieved February 1, 2013. <[http://rrp.sagepub.com/content/44/3/298]>.</ref> There is a body of literature which discusses how economic growth and development, particularly in the context of a [[Globalization|globalizing world]] characterized by [[free trade]], appears to be leading to the extinction and homogenization of languages.<ref>De Grauwe, Paul. “Language Diversity and Economic Development.” ''University of Leuven'' (January 2006). Working Paper. Web. Retrieved Feb 1, 2013. <[http://www.econ.kuleuven.be/ew/academic/intecon/Degrauwe/PDG-Publications_recent.htm]>.</ref> Manuel Castells asserts that the “widespread destructuring of organizations, delegitimation of institutions, fading away of major social movements, and ephemeral cultural expressions” which characterize globalization lead to a renewed search for meaning; one that is based on identity rather than on practices.<ref>Castells, Manuel. ''The Rise of the Network Society (The Information Age: Economy, Society and Culture, Vol 1)''. Malden: Blackwell Publishers Inc., 1996. Print.</ref> Barber and Lewis argue that culturally-based [[Resistance movement|movements of resistance]] have emerged as a reaction to the threat of [[modernization]] (perceived or actual) and [[Neoliberalism|neoliberal]] development.<ref>Lewis, Bernard. “The Roots of Muslim Rage.” ''Atlantic Magazine'' (September 1990). Web. Retrieved February 11, 2013. < [http://www.theatlantic.com/magazine/archive/1990/09/the-roots-of-muslim-rage/304643/]>.</ref><ref>Barber, Benjamin R. “Jihad vs. McWorld.” ''Atlantic Magazine'' (March 1992). Web. Retrieved February 11, 2013. <[http://www.theatlantic.com/magazine/archive/1992/03/jihad-vs-mcworld/303882/]>.</ref>
| |
| | |
| On a different note, Chua suggests that ethnic conflict often results from the envy of the majority toward a wealthy minority which has benefited from trade in a neoliberal world.<ref name="rrp.sagepub" /> She argues that conflict is likely to erupt through political manipulation and the “vilification” of the minority.<ref name="rrp.sagepub" /> Prasch points out that, as economic growth often occurs in tandem with increased [[Economic inequality|inequality]], ethnic or religious organizations may be seen as both assistance and an outlet for the disadvantaged.<ref name="rrp.sagepub" /> However, empirical research by Piazza argues that economics and unequal development have little to do with [[Rebellion|social unrest]] in the form of [[terrorism]].<ref name="Piazza, James A. 2006">Piazza, James A. “Rooted in Poverty?: Terrorism, Poor Economic Development, and Social Cleavages.” ''Terrorism and Political Violence'' 18.1 (2006): 159–77. Print.</ref> Rather, “more diverse societies, in terms of ethnic and religious [[demography]], and political systems with large, complex, multiparty systems were more likely to experience terrorism than were more homogeneous states with few or no parties at the national level”.<ref name="Piazza, James A. 2006"/>
| |
| | |
| ==Growth indicator controversy==
| |
| Per capita Gross Domestic Product (GDP per head) is used by many developmental economists as an approximation of general national well-being. However, these measures are criticized as not measuring economic growth well enough, especially in countries where there is much economic activity that is not part of measured financial transactions (such as housekeeping and self-homebuilding), or where funding is not available for accurate measurements to be made publicly available for other economists to use in their studies (including private and institutional fraud, in some countries).
| |
| | |
| Even though per-capita GDP as measured can make economic well-being appear smaller than it really is in some developing countries, the discrepancy could be still bigger in a developed country where people may perform outside of financial transactions an even higher-value service than housekeeping or homebuilding as gifts or in their own households, such as counseling, [[lifestyle coaching]], a more valuable home décor service, and time management. Even free choice can be considered to add value to lifestyles without necessarily increasing the financial transaction amounts.
| |
| | |
| More recent theories of Human Development have begun to see beyond purely financial measures of development, for example with measures such as medical care available, education, equality, and political freedom. One measure used is the [[Genuine Progress Indicator]], which relates strongly to theories of [[distributive justice]]. Actual knowledge about what creates growth is largely unproven; however recent advances in [[econometrics]] and more accurate measurements in many countries is creating new knowledge by compensating for the effects of variables to determine probable causes out of merely correlational statistics.
| |
| | |
| ==Recent developments==
| |
| {{see also|Fair trade}}
| |
| | |
| The most prominent contemporary development economist is perhaps the [[Nobel laureate]], [[Amartya Sen]].
| |
| | |
| Recent theories revolve around questions about what variables or inputs correlate or affect economic growth the most: elementary, secondary, or higher education, government policy stability, tariffs and subsidies, fair court systems, available infrastructure, availability of medical care, prenatal care and clean water, ease of entry and exit into trade, and equality of income distribution (for example, as indicated by the [[Gini coefficient]]), and how to advise governments about macroeconomic policies, which include all policies that affect the economy.
| |
| Education enables countries to adapt the latest technology and creates an environment for new innovations.
| |
| | |
| The cause of limited growth and divergence in economic growth lies in the high rate of acceleration of technological change by a small number of developed countries. These countries' acceleration of technology was due to increased incentive structures for mass education which in turn created a framework for the population to create and adapt new innovations and methods. Furthermore, the content of their education was composed of secular schooling that resulted in higher productivity levels and modern economic growth.
| |
| | |
| Researchers at the [[Overseas Development Institute]] also highlight the importance of using economic growth to improve the human condition, raising people out of poverty and achieving the [[Millennium Development Goals]].<ref name=ODI>Claire Melamed, Kate Higgins and Andy Sumner (2010) [http://www.odi.org.uk/resources/details.asp?id=4892&title=millennium-development-goals-equitable-growth-policy-brief Economic growth and the MDGs] [[Overseas Development Institute]]</ref> Despite research showing almost no relation between growth and the achievement of the goals 2 to 7 and statistics showing that during periods of growth poverty levels in some cases have actually risen (e.g. Uganda grew by 2.5% annually between 2000–2003, yet poverty levels rose by 3.8%), researchers at the ODI suggest growth is necessary, but that it must be equitable.<ref name=ODI/> This concept of inclusive growth is shared even by key world leaders such as Secretary General [[Ban Ki-Moon]], who emphasises that:
| |
| :"Sustained and equitable growth based on dynamic structural economic change is necessary for making substantial progress in reducing poverty. It also enables faster progress towards the other Millennium Development Goals. While economic growth is necessary, it is not sufficient for progress on reducing poverty."<ref name=ODI/>
| |
| Researchers at the ODI thus emphasise the need to ensure [[social protection]] is extended to allow universal access and that active policy measures are introduced to encourage the private sector to create new jobs as the economy grows (as opposed to [[jobless growth]]) and seek to employ people from disadvantaged groups.<ref name=ODI/>
| |
| | |
| ==Prominent development economists==
| |
| * [[Daron Acemoglu]], professor of economics at the [[Massachusetts Institute of Technology]], and 2005 [[John Bates Clark Medal|Clark Medal]] winner.
| |
| * [[Philippe Aghion]], professor of economics at [[Harvard University]], co-authored textbook in economic growth, forwarded [[Schumpeterian growth]], and established [[creative destruction]] theories mathematically with [[Peter Howitt (economist)]].
| |
| * [[Abhijit Banerjee]], professor of economics at the [[Massachusetts Institute of Technology]] and Director of [[Abdul Latif Jameel Poverty Action Lab]].
| |
| * [[Pranab Bardhan]], professor of economics at the [[University of California, Berkeley]], author of texts in both trade and development economics, and editor of the [[Journal of Development Economics]] from 1985–2003.
| |
| * [[Kaushik Basu]], [[professor]] of economics at [[Cornell University]] and author of ''Analytical Development Economics.''
| |
| * [[Peter Thomas Bauer]], professor of economics at the [[London School of Economics]], author of ''Dissent on Development''.
| |
| * [[Jagdish Bhagwati]], a frequent commentator on international trade and noted supporter of [[free trade]]
| |
| * [[David E. Bloom]]
| |
| * [[Ha-Joon Chang]], author of ''Kicking Away the Ladder'' and ''Bad Samaritans; Rich Nations, Poor Policies and the Threat to the Developing World'' which use historical evidence to critique neoliberal development economics.
| |
| * [[Paul Collier]], author of ''The Bottom Billion'' which attempts to tie together a series of traps to explain the self-fulfilling nature of poverty at the lower end of the development scale.
| |
| * [[Esther Duflo]], Director of [[Abdul Latif Jameel Poverty Action Lab]], professor of Economics at the [[Massachusetts Institute of Technology]], 2009 [[MacArthur Fellows Program|MacArthur Fellow]], 2010 [[John Bates Clark Medal|Clark Medal]] winner, advocate for [[field experiment]]s.
| |
| * [[William Easterly]], author of ''The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics'' [http://www.fff.org/freedom/fd0205g.asp description] and [http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=8978 review] and ''White Man's Burden: How the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good'' ([http://books.google.com/books?id=5Iw5IZCTh-kC&dq=William+Easterly+%22White+Man's+Burden%22&source=gbs_navlinks_s description] and [http://books.google.com/books?id=5Iw5IZCTh-kC&printsec=frontcover&source=gbs_v2_summary_r&cad=0#v=onepage&q&f=false preview).]
| |
| * [[Celso Furtado]], Brazilian [[Structuralist economics|structuralist]] economist.
| |
| * [[Oded Galor]], Israeli-American economist at [[Brown University]]; editor-in-chief of the [[Journal of Economic Growth]], the principal journal in economic growth. Developer of the [[unified growth theory]], the newest alternative to theories of [[endogenous growth]].
| |
| * [[Peter Howitt (economist)]], Canadian economist at [[Brown University]]; past president of the [[Canadian Economics Association]], introduced the concept of [[Schumpeterian growth]] and established [[creative destruction]] theory mathematically with [[Philippe Aghion]].
| |
| * [[Justin Yifu Lin]], Chinese economist at [[Peking University]]; former chief economist of [[World Bank]], one of the most important Chinese economists.
| |
| * [[Arthur Lewis (economist)|W. Arthur Lewis]], with [[Theodore Schultz|T. W. Schultz]], winner of the 1979 [[Nobel Prize]] in Economics for work in development economics.
| |
| * [[Dambisa Moyo]], a Zambian-born economist who analyzes the macroeconomy, foreign aid impact, and global affairs. Author of ''Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa''
| |
| * [[Raúl Prebisch]], founding Secretary General of the [[United Nations Conference on Trade and Development]] and influential [[dependency theory|dependency theorist]]
| |
| * [[Lant Pritchett]], professor at [[Harvard University]]'s [[John F. Kennedy School of Government|Kennedy School of Government]], and has held several prominent research positions at the World Bank.
| |
| * [[Dani Rodrik]], professor at [[Harvard University]]'s [[John F. Kennedy School of Government|Kennedy School of Government]], has written extensively on globalization.
| |
| * [[Walt Whitman Rostow]], modernization theorist, author of ''The Stages of Economic Growth: A Non-communist Manifesto''
| |
| * [[Jeffrey Sachs]], author of ''[[The End of Poverty]]: Economic Possibilities of Our Time'' ([http://books.google.com/books?id=PNI9tqKVicIC&printsec=frontcover&dq=%22The+End+of+Poverty%22&source=bl&ots=pAcecCQO9u&sig=cl_Hj2fmJeWESxkccafyhuDMDs4&hl=en&ei=mKvoS7nCCMT6lwez2Om6Aw&sa=X&oi=book_result&ct=result&resnum=8&ved=0CEYQ6AEwBw#v=onepage&q&f=false preview]) and ''Common Wealth: Economics for a Crowded Planet''
| |
| * [[Amartya Sen]], [[Nobel Prize]] winner, author of ''Development as Freedom''.
| |
| * [[Hans Singer]], who dealt with how unequal terms of trade disproportionately affect producers of primary products. His thesis, combined with the work of Raúl Prebisch, form the basis for [[dependency theory]]
| |
| * [[Hernando de Soto Polar]], proponent of [[property]] rights in the [[developing country|developing world]], author of ''The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else''
| |
| * [[Frances Stewart]], current president of the [[Human Development and Capability Association]].
| |
| * [[Joseph Stiglitz]], [[Nobel Prize]] winner and former chief economist at the World Bank.
| |
| * [[Erik Thorbecke]], a co-originator of [[Foster-Greer-Thorbecke]] poverty measure who also played a significant role in the development and popularization of [[Social Accounting Matrix]].
| |
| * [[Michael Todaro]], known for the Todaro and [[Harris-Todaro model]]s of migration and urbanization; Economic Development.
| |
| * [[Robert M. Townsend]], professor at [[MIT]] known for his [http://cier.uchicago.edu/ Thai Project], a model for many other applied and theoretical projects in economic development.
| |
| * [[Mahbub ul Haq]], creator of the [[Human Development Report]]
| |
| * [[Muhammad Yunus (economist)|Muhammed Yunus]], [[Nobel Prize]] winner and founder of the [[Grameen Bank]]
| |
| | |
| ==See also==
| |
| {{Portal|Sustainable development}}
| |
| <div style="-moz-column-count:2;">
| |
| * [[Demographic economics]]
| |
| * [[Dependency theory]]
| |
| * [[B:Development Cooperation Handbook/Issues|Development Cooperation Issues]] [[File:Wikibooks-logo.svg|14px|Wikibooks]]
| |
| * [[B:Development Cooperation Handbook/Stories|Development Cooperation Stories]] [[File:Wikibooks-logo.svg|14px|Wikibooks]]
| |
| * [[B:Development Cooperation Handbook/Testimonials|Development Cooperation Testimonials]] [[File:Wikibooks-logo.svg|14px|Wikibooks]]
| |
| * [[Development studies]]
| |
| * [[Development wave]]
| |
| * [[Social development]]
| |
| * [[List of publications in economics#Development economics|Important publications in development economics]]
| |
| * [[Sustainable development]]
| |
| * [[Economic development]]
| |
| * [[Right-financing]]
| |
| * [[International development]]
| |
| * [[UN Human Development Index]]
| |
| * [[Gini coefficient]]
| |
| * [[Lorenz curve]]
| |
| * [[Harrod–Domar model]]
| |
| * [[Debt relief]]
| |
| * [[Human security]]
| |
| * [[Kaldor's growth laws]]
| |
| * [[The Poverty of "Development Economics"]]
| |
| * [[Women's education and development]]
| |
| </div>
| |
| | |
| ==Footnotes==
| |
| {{Reflist}}
| |
| | |
| ==Bibliography==
| |
| * [http://publications.worldbank.org/ecommerce/catalog/product?item_id=7014177 ''Development Economics through the Decades: A Critical Look at 30 Years of the World Development Report''] World Bank Publications, Washington DC (2009), ISBN 978-0-8213-7255-5
| |
| * [http://publications.worldbank.org/ecommerce/catalog/product-detail?product_id=7208402 ''The Complete World Development Report, 1978–2009 (Single User DVD): 30th Anniversary Edition''] World Bank Publications, Washington DC (2009), ISBN 978-0-8213-7270-8
| |
| * Behrman, J.R. (2001). "Development, Economics of," ''[[International Encyclopedia of the Social & Behavioral Sciences]]'', pp. 3566–3574 [http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B7MRM-4MT09VJ-YN&_rdoc=2&_hierId=151000136&_refWorkId=21&_explode=151000131,151000136&_fmt=summary&_orig=na&_docanchor=&_idxType=SC&view=c&_ct=14&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=488e4c7acc9e0ed4241e314e5a4c7734 Abstract.]
| |
| * Clive Bell (1987). "Development economics," ''[[The New Palgrave: A Dictionary of Economics]]'', v. 1, pp. 818–26.
| |
| * {{cite encyclopedia |last1=Crook |first1=Clive |authorlink= Clive Crook |editor= [[David R. Henderson]] (ed.) |encyclopedia=[[Concise Encyclopedia of Economics]] |title=Third World Economic Development |url=http://www.econlib.org/library/Enc1/ThirdWorldEconomicDevelopment.html |year=1992 |edition= 1st |publisher=[[Library of Economics and Liberty]] }} {{OCLC|317650570|50016270|163149563}}
| |
| * Easterly, William (2002), ''Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics'', The MIT Press
| |
| * Ben Fine and Jomo K.S. (eds, 2005), ''The New Development Economics: Post Washington Consensus Neoliberal Thinking'', Zed Books
| |
| * Peter Griffiths (2003), ''The Economist's Tale: A Consultant Encounters Hunger and the World Bank'', Zed Books
| |
| * K.S. Jomo (2005), ''Pioneers of Development Economics: Great Economists on Development'', Zed Books – the contributions of economists such as Marshall and Keynes, not normally considered development economists
| |
| * {{Cite book |last= Lin |first= Justin Yifu |authorlink= Justin Yifu Lin |year= 2012 |title= The Quest for Prosperity: How Developing Economies Can Take Off |location= Princeton, NJ |publisher= [[Princeton University Press]] |isbn= 978-0-691-15589-0 }}
| |
| * Gerald M. Meier (2005), ''Biography of a Subject: An Evolution of Development Economics'', Oxford University Press
| |
| * Gerald M. Meier, Dudley Seers [editors] (1984), ''Pioneers in Development'', World Bank ([http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000178830_98101901520025])
| |
| * Dwight H. Perkins, Steven Radelet, Donald R. Snodgrass, Malcolm Gillis and Michael Roemer (2001). ''Economics of Development'', 5th edition, New York: W. W. Norton.
| |
| * Jeffrey D. Sachs (2005), ''The End of Poverty: Economic Possibilities for Our Time'', Penguin Books
| |
| * George Mavrotas and Anthony Shorrocks (eds, 2007), [http://www.palgrave.com/products/title.aspx?is=0230019048 ''Advancing Development: Core Themes in Global Development''], Palgrave Macmillan
| |
| * [[Debraj Ray]] (1998). ''Development Economics'', Princeton University Press, . Other editions: Spanish, Antoni Bosch. 2002 Chinese edition, Beijing University Press. 2002, Indian edition, Oxford, 1998. [http://press.princeton.edu/titles/6315.html Description,] [http://press.princeton.edu/TOCs/c6315.html table of contents], and excerpt, [http://press.princeton.edu/chapters/s6315.html ch. 1.]
| |
| * [http://www.wider.unu.edu/publications/ World Institute for Development Economics Research Publications/Discussion Papers]
| |
| * [http://www.cgdev.org The Center for Global Development]
| |
| * {{cite book | last = Smith | first = Charles | authorlink = Charles Emrys Smith | coauthors = Rees, Gareth | title = Economic Development, 2nd edition | publisher = Macmillan | year = 1998 | location = Basingstoke | pages = | url = | doi = | isbn = 0-333-72228-0 }}
| |
| * Arno Tausch (1993; in collaboration with Fred Prager) 'Towards a Socio-Liberal Theory of World Development'. Basingstoke and New York: Macmillan/St. Martin's Press
| |
| * Arno Tausch (2007, Editor, with Almas Heshmati)., 'Roadmap to Bangalore? Globalization, the EU's Lisbon Process and the Structures of Global Inequality' Hauppauge, N.Y.: Nova Science Publishers (for info: https://www.novapublishers.com/catalog/).
| |
| * [[Michael Todaro]] and [[Stephen C. Smith (economist)|Stephen C. Smith]], Economic Development, 10th Ed., Addison-Wesley, 2008. [http://books.google.com/books?id=Oz-1X8IYfKkC&pg=PA583&lpg=PA583&dq=Michael+Todaro+and+Stephen+C.+Smith,+%22Economic+Development%22&source=bl&ots=96eAxTZLy2&sig=UdvuuNxgMrkRbfZNHtmNzkwm_0c&hl=en&ei=4KToS-bbDYTGlQePyt3lAw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBkQ6AEwAA Description.]
| |
| * ''Handbook of Development Economics'', Elsevier. Description and table of contents:
| |
| :Hollis B. Chenery and [[T. N. Srinivasan]], eds. (1988, 1989). Vol. [http://www.elsevier.com/wps/find/bookdescription.cws_home/601091/description#description 1] and [http://www.elsevier.com/wps/find/bookdescription.cws_home/601092/description#description 2]
| |
| :Jere Behrman and T.N. Srinivasan, eds. (1995). Vol [http://www.elsevier.com/wps/find/bookdescription.cws_home/601093/description#description 3A] and [http://www.elsevier.com/wps/find/bookdescription.cws_home/601094/description#description 3B]
| |
| : T. Paul Schultz and John Straus, eds. (2008). Vol [http://www.elsevier.com/wps/find/bookdescription.cws_home/714636/description#description 4]
| |
| : Dani Rodrik and Mark R. Rosenzweig, eds. (2009). Vol [http://www.elsevier.com/wps/find/bookdescription.cws_home/720553/description#description 5]
| |
| | |
| ==External links==
| |
| * [http://www.povertyactionlab.org/ The Abdul Latif Jameel Poverty Action Lab (J-PAL)] A network of 64 affiliated professors around the world who are united by their use of Randomized Evaluations (REs) to answer questions critical to poverty alleviation
| |
| * [http://www.exeter.edu/academics/11017.aspx Development Economics and Economic Development] A list of resources on development economics
| |
| * [http://www.economist.com/science/displaystory.cfm?story_id=10640716 Technology in emerging economies], The Economist
| |
| * [http://www.indicatorslab.com World Development Analysis Tool]
| |
| * [http://mruniversity.com/courses/development-economics-0 Development Economics lecture by Economist Tyler Cowen], October 2012
| |
| {{Land-use planning}}
| |
| | |
| {{DEFAULTSORT:Development Economics}}
| |
| [[Category:Development economics| ]]
| |
| [[Category:Economic development]]
| |
| [[Category:Economic globalization]]
| |