POSC 2200 – International Political Economy Russell Alan Williams Department of Political Science

Unit Six: International Political Economy “ Poverty, Development and Human Security ” Required Reading: Globalization of World Politics, Chapters 28 and 29. Globalization of World Politics, Chapters 28 and 29. Bruce R. Scott, “The Great Divide in the Global Village,” Foreign Affairs, Vol. 80, No. 1 (Jan. - Feb., 2001), Pp Bruce R. Scott, “The Great Divide in the Global Village,” Foreign Affairs, Vol. 80, No. 1 (Jan. - Feb., 2001), Pp Outline: 1. The “ Development Gap ” 2. Obstacles to Development 3. Alternatives/Solutions? 4. Conclusions

1) The “ Development Gap ” : Major challenge in IPE? Major challenge in IPE? Most states are “ developing countries ” ( “ LDC ’ s ”, the “ Third World ” ) Most states are “ developing countries ” ( “ LDC ’ s ”, the “ Third World ” ) However, little development occurring (!) However, little development occurring (!) Key concern because: Key concern because: Interconnection of globalisation Interconnection of globalisation Power of developing countries in IGO ’ s Power of developing countries in IGO ’ s Morality – increasing recognition of “ Human Security ” Morality – increasing recognition of “ Human Security ”

“ Development ” – a “ contested ” concept? Traditionally associated with: Traditionally associated with: Increases in: Capital accumulation/savings Capital accumulation/savings Per capita incomes Per capita incomes Skills and technology Skills and technologyAlso: Falling birthrates Falling birthrates Political and institutional reforms Political and institutional reforms And perhaps also, More even distribution of wealth More even distribution of wealth = Critical perspectives and World Bank Key measures? Key measures? GDP growth rates – “ traditional ” focus GDP growth rates – “ traditional ” focus Inequality – more “ critical ” focus Inequality – more “ critical ” focus

Measures – Growth Rate: World average = approx + 3% per year World average = approx + 3% per year Less than this is not “ development ” ? Less than this is not “ development ” ? Evidence? Evidence? – Majority of LDC ’ s less then 3% – Majority of LDC ’ s less then 3% Exceptions? Exceptions? East Asian “ NIC ’ s ” – “ Four Tigers ” : South Korea, Taiwan, Hong Kong and Singapore East Asian “ NIC ’ s ” – “ Four Tigers ” : South Korea, Taiwan, Hong Kong and Singapore Since 2000 a significant portion of LDC ’ s greater then 3% Since 2000 a significant portion of LDC ’ s greater then 3% E.g. China = more than 9% a year E.g. China = more than 9% a year However.... “ South ” still falling further behind (?) However.... “ South ” still falling further behind (?)

Measures – Inequality: “ Gap Minder ” “ Gap Minder ”

Trends? Trends? Average incomes going up... ? Average incomes going up... ? However, gap between richest and poorest segments of global population have often gotten wider over last 30 years. However, gap between richest and poorest segments of global population have often gotten wider over last 30 years. Implications for “ Development ” ? Implications for “ Development ” ? Political instability Political instability Economic problems cause political problems? Economic problems cause political problems? “ Human security ” ? “ Human security ” ?

“ Human Security ” : The security of people, including their physical, economic and social well being ’ s Traditional “ Security ”  “ Human Security ” 1990 ’ s Traditional “ Security ”  “ Human Security ” =less focus on protecting states from foreign aggression, more focus on basic human needs – requires “ development ”??? First Supported by “ United Nations Development Program (UNDP) ” First Supported by “ United Nations Development Program (UNDP) ” “ Human Security ” is multifaceted: “ Human Security ” is multifaceted: Violence = citizens should be protected from physical violence of all forms Violence = citizens should be protected from physical violence of all forms Economic = citizens' basic material needs must be met Economic = citizens' basic material needs must be met Food and health = citizens ’ require access to sufficient nutrition and health protection from preventable illnesses Food and health = citizens ’ require access to sufficient nutrition and health protection from preventable illnesses Environment = citizens ’ must have protection from environmental harms Environment = citizens ’ must have protection from environmental harms Community = citizens ’ right to have traditional values must be supported Community = citizens ’ right to have traditional values must be supported Political = citizens ’ basic “ human rights ” and freedoms must be protected... And they are entitled to democracy(?) Political = citizens ’ basic “ human rights ” and freedoms must be protected... And they are entitled to democracy(?) Radical new way to see security! Very ambitious.... Radical new way to see security! Very ambitious....

“ Human Security ” : The security of people, including their physical, economic and social well being. Ideas have led to increased interest in: Ideas have led to increased interest in: “ Humanitarian Intervention ” “ Humanitarian Intervention ” “ Development ” and “ Human Development ” measures “ Development ” and “ Human Development ” measures However, “ Human Security ” is seen differently... However, “ Human Security ” is seen differently... Both are interconnected, but... they are not always addressed that way.... “ Development ” neglected(?) Both are interconnected, but... they are not always addressed that way.... “ Development ” neglected(?) LDC ’ s and NGO ’ s “ Freedom From Want ” Action: Address economic & development problems Developed Countries (Canada) “ Freedom From Fear ” Action: Stop violent conflicts (E.g. R2P)

2) Obstacles to Development: Optimism that “ development ” would be easy to achieve in poor societies has declined since 1980 ’ s - many challenges, or obstacles, exist: i) Legacy of colonialism: “Sovereignty” has not resolved problems caused by imperialism Political legacies: Political legacies: a) Displaced existing state/cultural structures Post Colonial states very “ artificial ” Post Colonial states very “ artificial ” b) Ethnic divisions

Economic Legacies: Economic Legacies: a) Colonies ’ economies restructured to meet imperial needs E.g. Substance farming to cash crops... Post-colonial economies: Post-colonial economies: Resource-export dependent ( “ mono- exporters ” ) Resource-export dependent ( “ mono- exporters ” ) Importers of basic foods Importers of basic foods Urbanization and unemployment Urbanization and unemployment Need for land reform? Need for land reform? b) Ineffective transportation links when colonies became independent Requires “ mercantilism ” in development policies? But not allowed under “ GATT ” / “ WTO ” !

ii) Structures of global capitalism: Marxist perspective – form of neocolonialism has replaced colonialism MNC ’ s dominate global economy: MNC ’ s dominate global economy: Systematic exploitation of southern poor Systematic exploitation of southern poor Cheap labour etc. Cheap labour etc. Problem of “ Technology Transfer ” Problem of “ Technology Transfer ” Northern MNC ’ s own technology necessary to close “ development gap ” Northern MNC ’ s own technology necessary to close “ development gap ”

iii) Legacy of the LDC “ debt crisis ” : “ Debt Crisis ” : Post 1970s balance of payments crisis for majority of southern states Inability to finance trade deficits and pay back loans Inability to finance trade deficits and pay back loans Result - most southern states have high ongoing debt servicing costs Result - most southern states have high ongoing debt servicing costs Implication: Economic surplus diverted to debt rather than investment Implication: Economic surplus diverted to debt rather than investment

Required “ IMF ” / “ World Bank ” “ help ” Required “ IMF ” / “ World Bank ” “ help ” “ Structural Adjustment Lending ” : IMF “ conditionalities ” requirements for southern states in debt crisis Imposed “ one size fits all ” type of development strategy on states: The “ Washington Consensus ” : Imposed “ one size fits all ” type of development strategy on states: The “ Washington Consensus ” : Economic “ liberalization ” – no “ mercantilist ” development strategies! Economic “ liberalization ” – no “ mercantilist ” development strategies! Cutbacks in government spending Cutbacks in government spending E.g. No food “ subsidies ” = no “ Human Security ” E.g. No food “ subsidies ” = no “ Human Security ” Thought to have “ failed ” in many countries = reduced standards of living Thought to have “ failed ” in many countries = reduced standards of living “Washington Consensus” corresponds with period of poor performance (1980s to 1990s) “Washington Consensus” corresponds with period of poor performance (1980s to 1990s)

3) Alternatives/Solutions? Two “ Post-Washington Consensus ” approaches to development? Two “ Post-Washington Consensus ” approaches to development? a) Emphasis on “ Sustainable Development ” : Belief that this would address some problems of previous development strategies Belief that this would address some problems of previous development strategies E.g. Less emphasis on agricultural commodities that lead to local shortages of food E.g. Less emphasis on agricultural commodities that lead to local shortages of food

b) Emphasis on institutional development Need for “ strong states ” undermined by economic liberalism Need for “ strong states ” undermined by economic liberalism E.g. Bruce Scott E.g. Bruce Scott

Example: Bruce Scott - “ The Great Divide in the Global Village ” Assumes development failing – gap growing wider Northern states unfair Protectionism in agriculture “ Washington Consensus ” hypocritical Argues development best supported by “ strong states ” Need institutional development Need international IGO ’ s that support “ state by state ” strategy =Copy success of East Asian “ Tigers ” in rest of LDC ’ s

Problems? Neither emphasis on ecology or “ strong states ” addresses the capital ($$$) problem of southern states.... Neither emphasis on ecology or “ strong states ” addresses the capital ($$$) problem of southern states.... E.g. without resolution of the “ debt crisis ” most states will fall further behind E.g. without resolution of the “ debt crisis ” most states will fall further behind “ Asian Tigers ” never had debt problem! “ Asian Tigers ” never had debt problem! Progress of debt relief has been very slow.... Progress of debt relief has been very slow.... E.g. Current Financial Crisis.... E.g. Current Financial Crisis....

4) Conclusions: “ Development ” remains a problematic goal in international politics “ Development ” remains a problematic goal in international politics Increasingly unclear what it means Increasingly unclear what it means Increasingly unclear what it takes to achieve it... given the structures of international politics and the self interested nature of “ developed ” states Increasingly unclear what it takes to achieve it... given the structures of international politics and the self interested nature of “ developed ” states Can successes in East Asia be copied elsewhere? Can successes in East Asia be copied elsewhere?

4) Conclusions: E.g. “ Millennium Development Goals ” : UN (2000) initiative to set targets for global reduction in: E.g. “ Millennium Development Goals ” : UN (2000) initiative to set targets for global reduction in: Poverty and hunger Poverty and hunger Primary education Primary education Gender equality Gender equality Health = Child mortality and communicable diseases Health = Child mortality and communicable diseases Environmental sustainability Environmental sustainability A comprehensive “ wish list ” but where are the resources to support efforts and is it happening?

Progress on “ Millennium Development Goals ” ? Developing nations are on track to meet the poverty target largely because of progress in China. But in Sub- Saharan Africa and Western Asia the proportion of hungry people has increased. Globally, the number of hungry people rose from 842 million in to 1.02 billion people in 2009.

6) For Next Time... Time:Friday April 10, 2013 (12:00 to 2:00) Location:Gym Format:Three Sections 1) Multiple Choice 2) Short Answer 3) Essay Similar to mid term – sections will be “ weighted ”