Poverty and Development

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Poverty and Development
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Addressing Poverty and Inequality

• Socialism and Communism
• -Redistribution of assets, equality, state
  control
• State sheltered industrialization, export-led
  growth
• -Subsidies, tariffs, private property, but large
  role of the state
• Washington Consensus
• -Liberalize open trade, remove inefficient
  state support, remove controls on capital flows,
  cut the size of the state, privatize,
  restructure
• Keynesian State
• -Social safety nets

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Development Assistance

• Official Development Assistance (ODA)
• Bilateral
• Multilateral through international organizations
• Private foundations and NGOs
• Ted Turner, Bill Gates Foundation, Hewlett
  Packard Foundation, Conservation International

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Meet the Fakers? 2000 ODA as Percent of GDP
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Million Promises to Keep?
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World Bank

• Established by Bretton Woods Agreement (1944)
• Dominated by largest donor countries
• Assistance for restructuring and development
• Infrastructure
• Structural Adjustment Loans
• Education, environment
• Type of Assistance
• Loans
• Grants
• Increasingly intrusive policy conditionality

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World Bank Project

• Sardar Sarovar Dam, Narmada River, India

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World Bank Total Lending to Bulgaria

• Financial and Enterprise Sector Adjustment Loan
  (FESAL)
• Adjustment agriculture 125mn
• Market development 30mn
• Education 14mn
• Access to healthcare 26
• Social protection 24

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United Nations Development Programs (UNDP)

• Core UN institution
• Controlled by the UN General Assembly
• Less resources compared to WB, IMF
• Technical assistance for development
• Capacity building
• Limited technology transfer
• The UN Human Development Index (HDI)
• Measures well being
• Alternative to Gross Domestic Product (GDP)

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Paradigms of Development

• Market Driven Growth
• Objective increase Gross Domestic Product (GDP)
• Means free market, get prices right, liberalize,
  modernize, new technology more supply of food
• Example Green Revolution
• Sustainable Development
• Focus on human well-being, both material and
  non-material
• Means community control of resources
  empowerment of women, marginalized people,
  education, access to finances entitlement and
  fairness
• Example State of Kerala, India

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• Practical Solutions?

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Reform Domestic Institutions

• Corruption
• Judicial system
• Social safety nets
• Human capital
• Social capital
• Encourage savings and access to credit

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Jubilee 2000

• Jubilee 2000 A Coalition that brought together
  unlikely alliances like Puff Daddy and the Pope
  Jesse Helms and Bono the Sisters of the Sacred
  Heart and the Spice Girls.

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Address Health Factors

• The Malaria pandemic
• -30mn.cases/year
• -1mn. deaths
• -12bn in lost GDP
• -90 in Africa

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• The Millennium Development Goals

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The Millennium Development GoalsInitiative of
Kofi Annan and UN Agencies

• By 2015
• 1. Reduce by half extreme poverty and hunger
• 2. Achieve universal primary education
• 3. Eliminate gender inequality in primary and
  secondary education
• 4. Reduce by 2/3 child mortality under 5 years of
  age
• 5. Reduce by ¾ ratio of women dying in childbirth
  maternal
• 6. Halt, begin to reverse spared of HIV/AIDS,
  malaria
• 7. Ensure environmental sustainability
• 8. Develop a global partnership for development