1. Tuesday July 14 th, 2015

2.  Many issues are common to all states (though there may be differences of degrees): ◦ Justice, equality, economic growth, stability  That said, developing states often face additional concerns: ◦ Population growth, disease, capital flight, environmental issues*, democratization and infrastructure development  Other terms: LDC (less developed countries), global south, third world or emerging markets

3.  Review: While we often speak of development as being an economic concern, it has come to be a much more holistic concept ◦ Democracy, rule of law ◦ Also: Distribution of resources, human security (including the environment)  Particularly problematic for young states is finding legitimacy

4.  Democratization is often viewed as a route towards legitimacy (and liberalization of the economy often follows) ◦ Often easier said than done  Sometimes those in power, or other powerful actors are unwilling to play by the “rules of the game” ◦ Also democracy does not cure systemic issues in a state (though, when constructed properly it can limit them)  Strong, effective and independent institutions are required for effective democracy ◦ Often this is hard to accomplish in developing states

5.  Competitive party system  An independent election commission ◦ Sometimes foreign observations  An independent and free media ◦ This may change somewhat as the flow and speed of information increases, and states’ ability to control it lessens  A fair and uncorrupted legal system ◦ No Telephone Justice

6.  Limited state-sponsored violence ◦ While states have sole-limited right to use force, constraint is also a democratic principle  Controlling the military ◦ This can be awfully difficult  Sovereignty can also be a concern ◦ Disputed territories like Kashmir can lead to violence between states. The war between Eritrea and Ethiopia was one of the longest-standing examples of this ◦ Sometimes governments actually pursue these ends, to try and develop a local nationalism

7.  State-Sponsored Education ◦ Increased education leads to stronger economies, greater interest in governance and social institutions, higher levels of health, lower population growth ◦ Education of girls and young women is, in fact, one of the most important development goals a state can achieve  Health care ◦ Long-term health also leads to stronger economic development, lower birthrates ◦ Added concern, as in many states water borne and insect borne diseases are more common than in the developed world - luck (or not) of geography.

8.  Newly Industrializing Countries (NICs) ◦ Japan, South Korea, Singapore, primarily ◦ Grew at an astounding rate, others tried to copy their strategies, but generally failed ◦ Possibly due to different values and emphasis on kind of market (liberalism vs corporatism)  Important components to economic growth in developing states: ◦ Economy must grow faster than population ◦ Wealth needs some equality in distribution ◦ Environmental degradation must be avoided  Sustainable development

9.  Stability of the government ◦ Investors don’t like war, it’s bad for most businesses ◦ Government stability also allows for more redistribution  It must avoid cyclical booms and busts ◦ Difficult to ensure, limits potential economic sectors  Periods of preferred routes to economic development: ◦ 1960s-1980s Corporatism (NICs) ◦ 1980s-1990s Liberalization (BRICs) ◦ 1990s- Socialism (Central and South America, in particular)

10.  Democracy or Economic Development?  Depends on who you ask and what states you look at  Examples like China (and South Korea until the late 1980s) seem to suggest that a undemocratic regime can create strong economic growth ◦ Can authoritarian regimes better control the flow of wealth?  Generally speaking, though, democratic stability has been, more often, a precursor to economic development

11.  High populations and high population growth puts serious strains on government ◦ a state with a population of 3.5% will double its population ever 25 years  Cost of services increases exponentially  Rising human migration, to where there’s more opportunity  Limiting growth is a contentious issue ◦ Contraception is a non-starter in many cultures ◦ Stringent rules on the number of children is repressive  Some states prefer growth because of economic and military implications

12.  World Bank and International Monetary Fund ◦ Poor reputations, but have had important impact  Neo-liberal/capitalistic focus ◦ While this focus has nominally changed, it has resulted in crises in many developing states, nearly bankrupting some of them  Dependency theory ◦ Critique of capitalistic perspective, suggests that financial support by developed world creates a dependency in developing states – allows developed world to take advantage of developing states  Globalization and development