1. Development & Poverty

2. Setting the stage What is poverty? Lack of Basic necessities
What is poverty?
Lack of Basic necessities
Food, water, shelter,
Powerlessness
Vulnerability

3. 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)
WHERE DO NATURAL RESOURCES FIT?

4. 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 ( ’s)
OPEC (grew to 30 B$ from 3B$ )
Capital to build STUFF or do PROJECTS
End of 1980’s led to borrowing to pay debt only

5. 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

6. What does development look like?
A new lending format
World Bank
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
0% - 4% interest for countries must be paid back in MONTHS!!
CONSEQUENCES???

7. 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”
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8. Next steps – Using Data
Focus on Quality of Life indicators
HDI

9. MDPI

10. 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
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.