Developing World 05/06

UNIT 1. Understanding the Developing World 1. More or Less Equal?, The Economist , March 13, 2004 The common assumption that the gap between rich and poor countries continues to grow is called into question by new studies that show less economic inequality . Depending on how the data is measured and interpreted, the proportion of those living on less than a dollar a day has fallen more rapidly than critics of globalization admit. These findings seem to argue in favor of globalization but some regions continue to lag behind. 2. Getting There, Mark Baird and Sudhir Shetty, Finance & Development , December 2003 Meeting the Millennium Development Goals will be a challenge for many developing countries . A recent study indicates that greater progress can be achieved through a combination of better domestic policies and improved governance, higher aid levels, more effective aid delivery, and improved access to markets. 3. Institutions Matter, but Not for Everything, Jeffrey D. Sachs, Finance & Development , June 2003 The West has placed increasing emphasis on the importance of institutions to development. Economist Jeffrey Sachs argues that while institutions matter, other factors play a role in generating economic development. Focusing on fighting disease, enhancing agriculture, and building infrastructure in poor countries would have a bigger impact on reducing poverty than institutions and governance. 4. Development as Poison: Rethinking the Western Model of Modernity, Stephen A. Marglin, Harvard International Review , Spring 2003 The West's conception of development emphasizes markets and assumes that following its lead will result in development. In reality, Western culture undermines indigenous culture, especially that of community. The West should realize that the values underlying its culture are not necessarily universal. 5. Selling to the Poor, Allen L. Hammond and C.K. Prahalad, Foreign Policy , May/June 2004 The world's poor have largely been ignored by consumer-oriented multinational corporations but poor people represent a huge untapped market . To take advantage of this market, companies wishing to sell their products have to tailor their marketing approach. Marketing to the developing world brings the poor greater choice, incorporates them into the international economy, and brings the benefits of globalization . 6. Why People Still Starve, Barry Bearak, New York Times Magazine , July 13, 2003 The persistence of starvation, especially in sub-Saharan Africa, can be attributed to several factors. This profile of the Malawi shows that poverty, corruption, climatic conditions, the global economy, and aid conditionality have contributed to the problems of malnutrition and famine. 7. The Challenge of Worldwide Migration, Michael W. Doyle, Journal of International Affairs , Spring 2004 International migration is increasing as people move to take advantage of economic opportunity associated with globalization. The birthrate crisis in the industrialized world is likely to increase this migratory pattern. Migration is also a product of conflict and persecution. To accommodate the interests of both countries of origins and destination, greater international cooperation will be required to resolve inevitable problems . UNIT 2. Political Economy and the Developing World 8. International Trade, Arvind Panagariya, Foreign Policy , November/December 2003 Controversy over international trade was highlighted by the collapse of the 2003 Cancun WTO talks. Economist Arvind Panagariya examines several assertions about trade and concludes that the common wisdom obscures some inconvenient facts regarding protectionism, agricultural subsidies, and the WTO . 9. Crisis in Cancun, Rorden Wilkinson, Global Governance , October 2004 The breakdown of the Cancun WTO talks overshadows a larger issue, the long-term implications of an eventual agreement on the Doha Development Agenda (DDA) . The evolution of trade negotiations historically favors the interests of industrial countries despite the expansion talks under the WTO to include agriculture and textiles. The agreement on the DDA extended the range of issues under discussion and further advantages to the industrialized countries . 10. Trade Secrets, Lori Wallach, Foreign Policy , January/February 2004 Interpretations differ regarding the effects of the collapse of the Cancun WTO talks but Lori Wallach argues that the controversy over the cause of the collapse overshadows the reality that it is no longer business as usual at the WTO . The inability of the powerful countries to dictate the agenda at Cancun signals either a change in the way that the rules governing international trade are formulated or the inevitable collapse of the current system of negotiation. 11. Lula Raises the Stakes, William Greider and Kenneth Rapoza, The Nation , December 1, 2003 Brazil's president Lula da Silva has emerged as a leader in the effort to strengthen the developing world's influence on the global economy . He is trying to forge a coalition of developing countries to promote the interests of the poor and force international institutions to be more democratic. 12. NAFTA at 10: A Plus or a Minus?, Jorge G. Castaneda, Current History , February 2004 Ten years after its implementation, the NAFTA agreement remains controversial . It was the first trade agreement between developing and industrialized countries and the results for Mexico have been mixed at best. While total trade has increased, the benefits have been uneven across economic sectors . Although jobs have been created in manufacturing, they have barely offset job losses in agriculture. In any event, NAFTA has tied the Mexican economy to its NAFTA partners more firmly. 13. Without Consent: Global Capital Mobility and Democracy, Jeff Faux, Dissent , Winter 2004 Writing the rules to govern the global trading system pits the interests of the world's elite against those of the poor . Neoliberalism, advocated by the wealthy countries and exemplified in NAFTA, has produced less than satisfactory results from the standpoint of developing countries. Efforts must be made to bring together those who advocate social justice and strengthen their negotiating position to advocate more effectively for the interests of the poor . 14. Unelected Government, Ngaire Woods, Brookings Review , Spring 2003 The IMF and the World Bank have become involved in a much wider range of tasks in the developing world. The voting and governance structures reflect the early goals of the institutions, but as conditionality has broadened the Fund and Bank's involvement in poor countries, accountability has not kept pace. Recent efforts to increase the institutions' accountability are a start, but more steps are required. 15. The IMF Strikes Back, Kenneth Rogoff, Foreign PolGriffiths, Robert J. is the author of 'Developing World 05/06', published 0000 under ISBN 9780073102269 and ISBN 0073102261.