Question 1

Explain what is meant by the "development challenge." What factors have acted as barriers to development and which have contributed to the ability of some LDCs to overcome these barriers?

Accepted Answer

The "development challenge" refers to the obstacles and difficulties that less developed countries (LDCs) face in their efforts to achieve economic growth, social progress, and overall development. These challenges can include factors such as poverty, lack of infrastructure, limited access to education and healthcare, political instability, and environmental degradation.

Several barriers have acted as obstacles to development in LDCs. These include:

1. Lack of access to capital and investment: Many LDCs struggle to attract foreign investment and access to financial resources, which hinders their ability to develop infrastructure and industries.

2. Political instability and corruption: Weak governance and political instability can lead to a lack of effective policies and institutions, as well as corruption, which can hinder economic growth and development.

3. Limited access to education and healthcare: Without access to quality education and healthcare, LDCs struggle to develop a skilled workforce and improve the overall well-being of their population.

4. Environmental degradation: LDCs often face environmental challenges such as deforestation, soil erosion, and pollution, which can hinder sustainable development and exacerbate poverty.

Despite these barriers, some LDCs have been able to overcome these challenges and make significant progress in their development. Factors that have contributed to their success include:

1. Effective governance and leadership: Strong and stable governance, as well as effective leadership, can create an environment conducive to development and attract investment.

2. Investment in education and healthcare: LDCs that prioritize education and healthcare can develop a skilled workforce and improve the overall well-being of their population, leading to economic growth and development.

3. Access to international aid and support: International aid and support from organizations and developed countries can provide LDCs with the resources and expertise needed to overcome development challenges.

4. Sustainable development practices: LDCs that prioritize sustainable development practices can mitigate environmental challenges and promote long-term economic growth.

In conclusion, the development challenge refers to the obstacles and difficulties that LDCs face in their efforts to achieve development. While barriers such as lack of access to capital, political instability, and environmental degradation have hindered development, factors such as effective governance, investment in education and healthcare, international aid, and sustainable development practices have contributed to the ability of some LDCs to overcome these challenges and make progress in their development.

Question 2

Outline the major elements of the four IPE development theories and discuss the extent to which some of them have been more successful than others.

Accepted Answer

The four major IPE development theories are mercantilism, liberalism, structuralism, and Marxism.

Mercantilism is the oldest theory and focuses on the accumulation of wealth through trade surpluses, protectionist policies, and the acquisition of colonies. It emphasizes the role of the state in promoting economic development and is often associated with a zero-sum view of international trade.

Liberalism, on the other hand, emphasizes the benefits of free trade, open markets, and minimal government intervention. It argues that economic development is best achieved through the expansion of global markets and the removal of barriers to trade and investment.

Structuralism focuses on the unequal distribution of power and wealth in the global economy, particularly between developed and developing countries. It highlights the role of international institutions and global governance in perpetuating these inequalities and advocates for policies that address the root causes of underdevelopment.

Marxism, finally, offers a critical perspective on the capitalist system and its impact on economic development. It emphasizes the role of class struggle, exploitation, and imperialism in shaping the global economy and advocates for radical changes to the existing economic order.

In terms of their success, it can be argued that liberalism has been the most successful in shaping global economic policies, particularly since the end of the Cold War. The spread of free trade agreements, the liberalization of financial markets, and the rise of global supply chains are all indicative of the influence of liberal economic ideas.

On the other hand, mercantilism has largely fallen out of favor as protectionist policies have been increasingly criticized for their negative impact on global economic growth. Structuralism and Marxism, while influential in shaping critical perspectives on global economic development, have had less success in shaping actual policy outcomes.

Overall, the extent to which these theories have been successful varies depending on the specific context and historical period. While liberalism has been dominant in shaping global economic policies, the ongoing debates and challenges surrounding economic development suggest that none of these theories can claim to have all the answers.

Question 3

Some authors, like Oswaldo de Rivero, claim that development is a myth, something most countries cannot attain. Have students discuss the potential impossibility for most countries to attain significantly higher standards of living, given climate change and constraints on water, resources, land, and energy.

Accepted Answer

There are several factors that contribute to the potential impossibility for most countries to attain significantly higher standards of living. Climate change is a major concern, as it is already impacting various regions with extreme weather events, rising sea levels, and disruptions to agriculture. This can lead to food and water shortages, displacement of populations, and increased competition for resources.

Constraints on water, resources, land, and energy also play a significant role. As the global population continues to grow, the demand for these essential resources will only increase, putting further strain on already limited supplies. This can lead to conflicts over access to resources and hinder economic development.

Additionally, the unequal distribution of wealth and power globally can also contribute to the potential impossibility for most countries to attain higher standards of living. Many developing countries face challenges in accessing markets, technology, and investment, which can further hinder their ability to improve living standards.

Overall, these challenges highlight the need for sustainable and equitable development strategies that take into account the limitations imposed by climate change and resource constraints. It is important for countries to work together to address these issues and strive for inclusive and environmentally sustainable development.

Question 4

How does the choice of different poverty lines or the MPI affect our assessments of the state of poverty in developing countries?

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Question 5

What are some of the characteristics of good governance? What criticisms might a structuralist make of development strategies that focus heavily on promoting good governance?

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Question 6

Why is it difficult for many countries to escape the "middle-income trap"?

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Question 7

Critique the use of GDP as a measure of social well-being. What other ways of measuring a country's well-being have been developed?

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Question 8

Do you agree with those who argue that significant reductions in poverty can be made by "nudging" the poor to make more "rational" choices to achieve their goals? Or do you agree with those who argue that poverty is caused by structural factors and can best be reduced by redistributing national income, strengthening the political rights of the poor, and democratizing? Do you think that development strategies should be based on "growth first" or "welfare first"? Why or why not?

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Question 9

What criticisms do feminist political economists make of programs that the World Bank and TNCs promote to improve the lives of women and girls in the Global South?

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Question 10

Describe trends between 1990 and 2016 in disbursements of net official development assistance by the United States, Germany, France, Japan, and the United Kingdom. Which countries significantly increased aid after 2004? Which countries are the most generous (based on aid as a percentage of their GDP)?

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Question 11

What criticisms have been made of philanthrocapitalism? Do you find anything wrong with wealthy private philanthropists funding programs in developing countries designed to end extreme poverty, promote humanitarian causes, or educate girls?

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Question 12

Describe the trends in debt service ratios of the poorest countries between 2000 and 2015. Would you characterize the HIPC and MDRI Initiatives as successful? Justify your answer.

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Question 13

What lessons can be learned from China's development model that might lead to more successful development strategies in Africa, South America, and Southeast Asia?

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Question 14

The chapter ends with a bleak assessment by Oswaldo de Rivero about the unsustainability of development due to population growth. Challenge de Rivero's "neo-Malthusian" perspective. What makes you more optimistic about development? Do you think that conservation, new technologies, better government policies, or other factors might permit humanity to resolve current physical-social imbalances? Why or why not?

Accepted Answer

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Question 15

Which region of the world in 2013 had the highest proportion of its population living on $190 a day or less?

Accepted Answer

According to the World Bank's report on global poverty, in 2013, 42.6% of the population in sub-Saharan Africa lived on $1.90 or less per day, which was the highest proportion among all regions.

Question 16

According to World Bank data, the proportion of the population in developing countries living in extreme poverty (living on $1.90 per day or less) fell between 1990 and 2013 from

Accepted Answer

The proportion of the population in developing countries living in extreme poverty fell from 42 to 13 percent between 1990 and 2013, according to World Bank data. This significant reduction highlights the progress made in alleviating extreme poverty globally during this period.

Question 17

Per capita income in the United States averages approximately

Accepted Answer

Per capita income in the United States is much higher than $3 or $10 a day, and while $410 a day would equate to an extremely high annual income not reflective of the average, $130 a day is a reasonable approximation when considering the country's GDP per capita and average income levels.

Question 18

Which country or organization spearheaded the creation of UNCTAD?

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Question 19

The economic liberal model of development

Accepted Answer

The economic liberal model of development focuses on evolutionary, market-based change. It does not promote import-substituting growth policies, which is an interventionist approach. It also does not emphasize the existence of international structural barriers to development, which is a feature of dependency theory rather than economic liberalism. While the Asian NICs have experienced economic success, this alone does not imply that the economic liberal model of development is based on their experience.

Question 20

The Washington Consensus is synonymous with

Accepted Answer

The Washington Consensus refers to a set of economic policies advocated by the United States government, the International Monetary Fund (IMF), and the World Bank that promote economic liberalization, privatization, deregulation, and free trade. It originated in a meeting of policymakers from various countries held in Washington, D.C. in 1989. Therefore, option A, an economic liberal outlook on development, is the best choice. The other options are incorrect as they do not describe the principles of the Washington Consensus.

Quiz 11: The Development Challenge