Development & Poverty

Setting the stage What is poverty? Lack of Basic necessities http://www.youtube.com/watch?v=jbkSRLYSojo What is poverty? Lack of Basic necessities Food, water, shelter, Powerlessness Vulnerability

Setting the stage What is development? Components of development strategies. Openness of borders and sovereignty Working together Trade and security Foundation of stable, accountable, **democratic government (determination vs. checks/balances) http://www.ted.com/talks/paul_collier_shares_4_ways_to_help_the_bottom_billion.html WHERE DO NATURAL RESOURCES FIT?

What does development look like? Phases of development over History Marshal Plan (post WWII) New attitudes Donor : Open Markets Recipient : Financial aid Funding by Banks (1970-1980’s) OPEC (grew to 30 B$ from 3B$ 1973-1976) Capital to build STUFF or do PROJECTS End of 1980’s led to borrowing to pay debt only

What does development look like? Collapse 1982 Brazil stops payment on $100billion in debt repayments Cuts in services & jobs Rapid cashing in of resources to make payments Massive inflation Lending institutions increase the interest of loans and loans become more difficult to get for developing countries

What does development look like? A new lending format World Bank http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,pagePK:50004410~piPK:36602~theSitePK:29708,00.html Long term development projects based on stable rates of long-term repayment based on a countries economy IMF Short term help for countries experiencing problems with repayment http://www.imf.org/external/about/whatwedo.htm 0% - 4% interest for countries must be paid back in MONTHS!! CONSEQUENCES???

Consequences of development aid Pressure on resources Pressure on human resources What do the people want? Change our perspective in the developing world Have a little perspective (statistic reality and perspective) Means vs. Goals “Seemingly impossible is possible” http://www.ted.com/talks/hans_rosling_reveals_new_insights_on_poverty.html PAGE 307 - 335

Next steps – Using Data Focus on Quality of Life indicators HDI

MDPI

IHDI Inequality-adjusted Human Development Index (IHDI)Reflecting inequality in each dimension of the HDI Addresses an objective first stated in the Human Development Report in 1990 http://hdr.undp.org/en/statistics/ihdi/ introduced the Inequality-adjusted HDI (IHDI), a measure of the level of human development of people in a society that accounts for inequality. Under perfect equality the IHDI is equal to the HDI, but falls below the HDI when inequality rises. In this sense, the IHDI is the actual level of human development (taking into account inequality), while the HDI can be viewed as an index of the potential human development that could be achieved if there is no inequality. The IHDI accounts for inequality in HDI dimensions by “discounting” each dimension’s average value according to its level of inequality measured by the Atkinson index. We apply this index to 134 countries.