1. Development

2. To be able to describe the different approaches to development. To be able to describe and evaluate the different methods of reducing the development gap.

3. Remember that when we are discussing development it is important to realise that all conceptions of development reflect a particular set of social and political values.

4. Two key views of development Orthodox view (Modernist view) Poverty: Poverty is a situation where people do not have money to buy food and resources. What is Development: This is the transformation of a society from a traditional subsistence stage to a modern industrial stage where people sell their labour for money. Core Ideas and assumption: There is a possibility of unlimited economic growth in a free- market system. Wealth will trickle down to those at the bottom to benefit everyone. The alternative view Poverty: a situation where people are not able to meet their material and non-material needs. What is Development: Creation of human well-being through sustainable societies in social, cultural, political and economic terms. Core Ideas and assumption: Emphasises the value of nature, cultural diversity and the community controlled commons (water, land, air, forest). Human activity must be in balance with nature. Self –reliance. Democratic inclusion, participation, e.g. for marginalised groups. Local control.

5. Two key views of development Orthodox view Associated models and theories: Western model Neoliberalism Rostow’s model of development Winter (Alex) Marxism??? Measurement: GDP, economic growth, industrialisation Process of development: Top-down, reliance on western knowledge and expertise, large capital investments in large projects, advanced technology, expansion of the private sphere The alternative view Associated models and theories: Sustainability. Environmentalism. Measurement: Fulfilment of basic material and non- material human needs of everyone; condition of the natural environment. Political empowerment of marginalised. Process of development: Bottom-up; participatory; reliance on appropriate (often local) knowledge and technology; small investmets in small- scale projects; protection of the commons.

6. So what practical methods are there to reduce the development gap? Trade: Investment and Reform Aid Debt: Abolition or rescheduling Fairtrade

7. Method of reducing inequality How can it help (possibly preceded by how does it enhance inequality at the moment) Evaluation of whether it can work to reduce the development gap.

8. Methods of development 1. Trade: Essentially Orthodox development based around Economic Liberalism. (A neoliberal argument) Advocated by the World Bank, IMF and GATT. These were set up following WWII to embed liberalism and encourage free trade.

9. How does it work Free trade

10. Examples Asian Tigers. South Korea, Taiwan, Singapore. Look at printed tables from page 476 and 477.

11. Evaluation Argument for: Look at Asian Tigers. WB and IMF have argued that the countries who have integrated into the global economy furthest have seen the highest rates if GDP growth. The increasing inequality in these countries can be seen as a positive thing by neoliberals as it encourages more competition and an entrepreneurial spirit. Lack of a credible alternative History of developed countries.

12. Argument against: Trickle down has not worked. Inequality has increased markedly in countries where GDP has increased. Can this be seen as development. Leads to state of dependency, (See dependency theory)

13. It is inaccurate to suggest that global trade is truly free trade. http://fpc.org.uk/fsblob/339.pdf Read through and highlight articles on Blair/CAP and Cotton Subsidies. So explain that trade must be reformed for any development to have a chance of taking place.

14. Aid Glossary Bilateral Aid Multilateral Aid Humanitarian Aid Development Aid Project Aid Voluntary Aid

15. How can overseas development aid work? Who gives the most? Look at page 160 green book.

16. Compare the maps on pages 161 and 135 what do you notice Typical AidTypical Aid ‘Winners’ Losers/Bad

17. Evaluation So what are the problems with Aid? –Top down versus bottom up Aid projects. Top down e.g. Akosombo Dam Bottom UP e.g. ???

18. Debt - rescheduling or abolition After independence many African countries borrowed large sums of money to carry out radical improvements to their infrastructure. A combination of bad investment and interest rate hikes during the oil crises of the 1970’s left most LEDC’s in a crippling financial situation.

19. In 2007 the debt servicing of the 41 most indebted nations amounts to $11 billion a year. Nearly a quarter of Aid received by African countries each year is immediately returned to service loans. It is estimated that without these debts 21 million child lives would be saved and 90 million girls and women could gain access to a basic education.

20. SAP’s After countries began to default on their interest payments on multilateral loans, the IMF and WB introduced a range of ‘structural adjustment packages’. SAP’s are an agreement that the indebted country must sign up to in order for the IMF and WB to re- schedule their debt repayment. SAP’s are rigorous agreements where countries will be forced to cut public spending and adopt a ‘free-market approach’ to trade.

21. So what has happened? When the UK held the G8 presidency in 2005 it prioritised global inequality and the LEDC debt burden. At the 2005 G8 Gleneagles conference major decisions were made on cancelling debt. http://news.bbc.co.uk/1/hi/business/4238045.stm#

22. The UK has now abolished all of the bilateral debt money it is owed by 26 of the most heavily indebted LEDC’s. The UK government say that they are working to reduce debt owed to multilateral sources.

23. Have the promises of Gleneagles followed through?

24. Evaluation of debt rescheduling/Abolition SAP’s Abolition

25. Pros

26. Explain the ‘orthodox’ (economic liberal) approach to development. (Total for Question 4 = 15 marks) Explain the alternative approach to development. (Total for Question 4 = 15 marks) Evaluate the different methods of reducing the development gap (45 mark)