Inequality and Development

Kuznets Curve

A formula showing that inequality increases during the early stages of capitalist development, then declines, and eventually stabilizes at a relatively low level; advanced by the economist Simon Kuznets. The criticism of this is there hasn't been strong empirical evidence for this - some rich countries such as the US have high and increasing inequality.

Human Development

"Composite measure of development. It includes averages in three basic components of human development. 1. Health, measured by life expectancy at birth. 2. Education, measured by average of mean years of schooling, and expected years of schooling. 3. Living Standards, measured by GNI"

Theory of Capitalism

A critique of the results of capitalism was formulated by Karl Marx. According to Marx, the treatment of labor as a commodity led to people valuing things more in terms of their price rather than their usefulness (see commodity fetishism), and hence to an expansion of the system of commodities. Marx observed that some people bought commodities in order to use them, while others bought them in order to sell them on at a profit. Marx believed that the extension of the labor theory of value (the theory of value used by Thomas Hobbes, John Locke, Adam Smith, David Ricardo, etc.) indicated capitalists (owners of the means of production) would exploit workers by depriving them of value that workers themselves create. According to Marx, surplus value is the difference between the value that the worker has created and the wage that the worker receives from his employer.

Lorenz Curve

A curve showing the proportion of income earned by a cumulative percentage of the population. The Lorenz curve is a way of illustrating the income distribution of a country. The horizontal axis measures the percentages of the population while the vertical axis shows the percentage of the national income that they receive. The Lorenz Curve will look like this: The further the Lorenz Curve is from the line of perfect equality, the more unequal the distribution of income in that country.

Gini Coefficient

A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income. Countries such as South Africa and Brazil have high Gini coefficients (0.5+) meaning that there is high levels of economic inequality, while countries such as Sweden and Denmark have low Gini coefficient (0.2) meaning that there is low levels of inequality

Poverty Line

A method used to count the number of poor people, it considers what a family must spend for an "austere" standard of living. This is usually defined by both relative and absolute poverty. The threshold for absolute poverty is $1.25/day, while for relative poverty depends on the country. Most developed country don't have absolute poverty but there is relative poverty, while the majority of developing countries still have high levels of absolute poverty

Dependency Theory

A structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop. Well-known dependency theorists include Prebisch, Gunther Frank, Wallerstein who argue that developing countries cannot grow when power and wealth is concentrated in the economic centers of the world. They suggest that developing countries should focus on developing their industry and own markets as oppose to continuing to produce and trade commodities to developed nations via Import Substitution Industrialization (ISI). The criticisms of this is that it leads to higher levels of imports in the long run (inflation due to currency devaluation) => negative balance of payment => debt crisis.

Communist-Party (Marxist) in West Bengal

CPM - highly organized and coherent organization - central to this organization is the idea of discipline - this operates through leninist principle of democratic centralization Creates discipline, insures coherence, prevents fragmentation Enhanced by perception of common enemy (land-owning elite) Ideology of party has shifted from more revolutionary one - to more social democratic orientation The deeply marxist idea - class confrontation: proletariat vs. bourgeois - has been dropped Party tends to promote social democratic ideals - sustaining and protecting democratic institutions Reforms have to match ideology that party espouses The policy party adopted in 1970s - not land redistribution but policies to uplift agrarian production - not cease land from property elites Subsidies for tools for farmers, and ensuring that their goods are sold at a fair price Structure of party is important - tight-knit, small membership Membership - disciplined, ensures cohesion Comprises of urban professionals, middle-income peasants, teachers

Party Institutionalization

Concept of institutionalization goes back to Huntington's Political Order and Change in Society Institutionalized party - value that goes beyond the individual Institutionalization - process by which organizations gain value and stability Structure of organization has more influence than any individual that compose party - organizations are institutionalized Communist party often seen as highly institutionalized - controlled, disciplined, cohesive, like a machine Other parties include Social Democratic parties, also more conservative ones such as Christian Democrats, PRI in Mexico, KMT Huntington argued that institutionalization have 4 attributes: autonomy, coherence, adaptability, complexity, 5th (Kuhonta): roots in society

Congress Party

For 30 years dominant but unable to pursue social reform in national level Issue is - gap between the practice of congress party and actual ideology Founders: Ghandi and Nahru Both espoused socialist principles, Gandhi - Independence made sense and reforming economy and improving conditions of poor Nahru - influenced by socialism and Labour Party in England In spite orientation of Gandhi and Nahru - why has Congress Party not reflect their views? Kohli argues that G and N failed because CP was not institutionalized or strong enough to impose its will on local elites CP - not enough organizational power, discipline, enough coherence to push forth commitment of pro poor policies

Việt Minh

Formed by Ho Chi Minh to seek independence for Vietnam from the French Empire. When the Japanese occupation began, the Việt Minh opposed Japan with support from the United States and the Republic of China. After World War II, the Việt Minh opposed the re-occupation of Vietnam by France and later opposed South Vietnam and the United States in the Vietnam War. Gained support by providing much needed services to peasants, lacking by French colonizers.

Relationship between growth and poverty

Higher economic growth means that a country's overall GDP is increasing but it doesn't necessarily mean that poverty is decreasing. Countries such as Brazil, South Africa have high rates of economic growth but increases in poverty as a small group of people are able to take advantage of growth, thus a rise in growth doesn't necessarily translate to less poverty, as distribution of wealth matters (inequality)

Historical Materialism

Historical materialism is a methodological approach to the study of society, economics, and history, first articulated by Karl Marx (1818-1883). Marx himself never used the term but referred to his approach as "the materialist conception of history." Historical materialism looks for the causes of developments and changes in human society in the means by which humans collectively produce the necessities of life. The non-economic features of a society (e.g. social classes, political structures, ideologies) are seen as being an outgrowth of its economic activity

Red-Green Alliance

In politics, a red-green alliance is an alliance of "red" social-democratic or democratic socialist parties with "green" environmentalist or sometimes centrist agrarian parties. The alliance is often based on common left political views, especially a shared distrust of corporate or capitalist institutions. While the "red" social-democratic parties tend to focus on the adverse effects of capitalism on the working class, the "green" environmentalist parties tend to focus on the ecological consequences of unrestrained capitalism and the representation of agrarian and rural workers. This is best illustrated in Northern European countries such as Denmark and Sweden where red-green parties dominate and they are able to establish a strong based (institutionalized).

Kuomintang (KMT)

Like UMNO, it is also a relatively conservative party. It is the ruling party of Taiwan, and has been repressive towards Aboriginal Taiwanese. It has no ties to the social elites in Taiwan, it was not linked to either the upper class or the Aboriginals and did not pursuit redistribution of land. Its success lies in its high levels of institutionalization where it is Autonomous, Adaptable, Complex, and Coherent. Chiang Kai-Shek was a prominent leader for the party and instrumental for its move from China to Taiwan.

Communist Manifesto

Marx and Engels wrote this for the Communist League in Germany. League was crushed by the '48 reaction. Work published in January of 1848. Inspired by Engels work on Conditions of Working Classes in England. It was a call to revolution. Thought that the revolutions that were breaking out in Europe were a confirmations of the class struggle thesis. Meant to be inflammatory. Written in propaganda style - distinct call to arms. Said working class being exploited, religion an opiate, encouraged working classes to stick together. Proletariat had "nothing to lose but their chains." (See H/O on this work by Marx and Engels)

Marxist Theory of Revolution

Marxist - see transition from Traditional to Modernas opening up to revolution, but transition is not result of economic development but class struggle Must rely on other groups to lead revolution - strategic alliance between peasantry and working class, peasants are important for revolution Peasants - usually tenants (landless owners) not richer ones Alliance between peasants and workers lead to revolution, socialist state, and dictatorship over proletariats Have not had revolution in all countries in developing world -

Organizational Fragmentation

Mentioned in Weyland's book Democracy without Equality to explain the contrast between the Latin American (Brazilian) and European cases. Difficult for representation of poor to occur Dispersion of power during these transition phases - one aspect of fragmentation Dispersal fragmentation, narrow units created, lack of strong institutions Fragmentation strengthens upper-classes, have more resources at their disposal to expand their interests Lack of institutional build-ups to challenge power of elites No institutions present at moment of democratic transition > fragmentation and dispersion of power, lower classes cannot take advantage of voting rights, lack organizational capacity

Modernization theory of Revolution

Modernization links to revolution - traditional => modernization Transition from T => M leads to instability - opens up states to revolution Usually argument - lag (between social, economical vs. political mordernization) or lack of fit Institution (weak - cannot mould), modernization unleashes expectation of rising evolution Economic change, expectation to diffuse, but doesn't - leads to frustration Rapid organization desynchronize society, weaken it - space for revolution Modernization - sense of meaninglessness, alia me (alienation), revolution more influential in shaping society and recruiting people Disruption from change Not all societies in developing world has had revolutions - too blunt a theory to explain revolutionary change

Walt Rostow

One of the most influential modernization theorists, charted the route from traditional society to 'the age of high mass consumption', The Stages of Economic Growth: 1) Traditional Economy 2) Pre-conditions to Take-off, 3) Take-off 4) Drive to Maturity 5) Age of High Mass Consumption, emphasizing a unilinear, Eurocentric path of development with the modern economy as the goal. He was criticized by Dependency Theorists such as Prebisch and Gunther Frank who believe that inequality is derrived precisely because poor countries depend on the rich for their path to development.

Political Organization Theory of Revolution

Organization Theory of Revolution - target at modernization theory, relative deprivation leads to revolutionary behaviour Mindel - peasant will join revolution when there's institutionalize organization present (political) - so see advantage, benefit, gain of joining rev. movement Need to see that there are short-term benefits Want to reject lag, and abstract ideology is what get peasants to join revolution Change outweigh cost of joining revolution - presence of institutionalized organization Institutions function effectively - provide public goods, and peasants believe they will get something out of revolution Examples - Chinese Communist Party, Viet Minh (Vietnam) Institutions provided social services - support that were lacking under conservative landlords - disrupted by capitalist Mindel - revolution not spasmodic, evervesences, rather they are controlled processes of structural change Akin to Huntington - revolution consists of political power rooted in organization and procedures, NOT anarchy, violence, about building institutionalized power

Redistribution with Growth Strategy

Positive sum policies such as education and health reforms, industrialization, taxation and subsidies, which aims to improve the lives of all (including rich), expand the pie for everyone. Need high levels of investment, strong role of state (high institutionalization - need to be disciplined, cohesive), and returns not seen until over a long period of time due to lags - ambitious but can lead to positive results and less risk of backlash.

State Structure Theory of Revolution

Relates to Organization but also distinct Structural in the sense that revolutions are shaped by broader macro constraints in which people find themselves 1) Revolutions necessitate breakdown of capacity of state 2) Revolutions only occur when they are in direct configurations of states Peasants will not just join revolutions on a whim - will join for reasons, e.g. Benefits > Costs, only states that repress so heavily, will you create a revolutionary response The more repressed the state, the more likely the state is going to incite formation of revolutionary movements The less repressive the state - the more likely the spark for revolution will be diminished People do not make revolution eagerly when there is no other way out Point is when state prevents any space from peasantry, constraint developed by macro environment that leads people to join revolutions Scott - Colonial states, head tax, resentment by peasantry, feel no other way out, no space during bad harvest year => REBELLION

Subsistence Ethic

Subsistence ethic--its right of a subsistence floor and the expectations of reciprocity which it engenders--is a causal antecedent of rebellion The subsistence ethic may be described quite simply. Scott writes, "we can begin, I believe, with two moral principles that seem firmly embedded in both the social patterns and injunctions of peasant life: the norm of reciprocity and the right to subsistence" Thus the subsistence ethic functions as a sense of justice--a standard by which peasants evaluate the institutions and persons that constitute their social universe. The subsistence ethic thus constitutes a central component of the normative base which regulates relations among villagers in that it motivates and constrains peasant behaviour

T.H. Marshall

T.H. Marshall: civil rights (right to participate, free assembly) => political rights (suffrage, parliament) => social rights Full citizenship in policy 19th century: bourgeois against aristocracy, turn of 20th century, get working class movements against bourgeois > advance democratic rights for lower class Organizational scope - crucial for redistribution in Europe - seen as important in Latin America Organizational capacity, strong vision of universal social reform

Basic Needs Approach

The attempt to measure development in terms of a country's ability to physically meet the basic requirements for life, such as food and shelter, in addition to economic growth, developed in the 1970s. Paul Streeten is a key figure in this school of thought. This is in contrasts to Capabilities Approach which states that individuals have other (non-material needs) such as freedom and opportunities which are ends in itself, while basic consumption goods (of the Basic Needs Approach) are just a means to those ends.

Instrumental Value of Society

Used by Amartya Sen in Democracy as Freedom to describe how democracy is necessary because it provides a means for society to collectively come together and voice out their needs, and it makes sure politicians do not step out of line because of the way in which they would be voted out in the next election and that the media would provide information to the public. He uses the example of the lack of famines in democratic countries, such as in India after democratization vs. authoritarian regimes (Mao's China) saying that disasters can be averted if there is democracy as politicians will be held accountable for failed policies.

Constructive Value of Society

Used by Amartya Sen in Democracy as Freedom to describe how democracy is necessary to conceptualize "needs" in the first place through participatory action and open dialogue. He uses the example of Kerala in India where education levels are high and fertility rates are low because people are able to come together and discuss how high fertility rates and low education levels put a damper on economic growth and well-being.

Moral Economy

The concept of a moral economy was first elaborated by English historian E.P. Thompson. Thompson wrote of the moral economy of the poor in the context of widespread food riots in the English countryside in the late eighteenth century. According to Thompson these riots were generally peaceable acts that demonstrated a common political culture rooted in feudal rights to "set the price" of essential goods in the market. The concept was widely popularized in anthropology through the book, "The Moral Economy of the Peasant: Rebellion and subsistence in Southeast Asia" by James C. Scott (1976). Peasants generally live so close to the subsistence line that it takes little to destroy their livelihoods. From this, he infers a set of economic principles that it would be rational for them to live by. Firstly, he argued that peasants were "risk averse", or, put differently, followed a "safety first" principle. They would not adopt risky new seeds or technologies, no matter how promising, because tried and true traditional methods had demonstrated, not promised, effectiveness. This gives peasants an unfair reputation as "traditionalist" when in fact they are just risk averse. Secondly, Scott argues that peasant society provides "subsistence insurance" for its members to tide them over those occasions when natural or man-made disaster strikes. It is interplay between cultural mores and economic activity. It describes the various ways in which custom and social pressure coerce economic actors in a society to conform to traditional norms even at the expense of profit.

Capability Approach

This framework, developed by Amartya Sen in the 1980's, focuses on individuals' capability of achieving the kind of lives they have reason to value. Unfortunately, individual capabilities are qualified and constrained by the social, political, and economic opportunities available to us. Therefore, development should not be defined in purely economic terms. Development can be achieved by pursuing economic opportunities, political freedoms, social opportunities, transparency guarantees, and protective security. Freedoms and rights play a crucial role in development. 1) The importance of real freedoms in the assessment of a person's advantage 2) Individual differences in the ability to transform resources into valuable activities 3) The multi-variate nature of activities giving rise to happiness 4) A balance of materialistic and nonmaterialistic factors in evaluating human welfare 5) Concern for the distribution of opportunities within society

United Malays Nationalist Organization (UMNO)

UMNO is Malaysia's largest political party; a founding member of the National Front coalition, which has played a dominant role in Malaysian politics since independence from British colonialism. They are a conservative nationalist party. The UMNO emphasizes as its foundation the struggle to uphold the aspirations of Malay nationalism and the dignity of race, religion and countries. They seek to strengthened and expand opportunities to the Malays (who are the most socially disadvantaged group despite being a majority) through improved access to healthcare, creation of job opportunities in the cities, and easier acceptance to university vis-a-vis the Chinese but in a way that is a positive sum (did not strip Chinese of land). This has helped bridge the gap between the different ethnic groups thus reducing inequality (as income is based on ethnic lines in Malaysia).

Asset Redistribution Strategy

Zero-sum policies such as land distribution - seizing land from landowners to give to tenants, through compensation. For example, Meiji Japan's colonization of Korea. While easier in the short-term, it can lead to instability and backlash by the rich or proliferation of oligarchy and support of bureaucracy with rich against the government (possibility for military coups). For examaple, India - bureaucrats in periphery did not support many reforms that congress party wanted to put forth.

Third Wave of Democracy

coined by Huntington to describe mass democratization in Spain, Portugal, Central and Latin America. Collapse of Communist regimes in USSR & Eastern Europe. Democratization in some Asian and African countries (1974 - early 90s). There has been mixed success with democratization with it being more successful in East Asia (due to a more stabilized process - strong government intervention) and less successful in Latin America and former Soviet countries as changes happened almost overnight and sudden liberalization of markets without much government support.

Paul Streeten

economics professor who popularized the basic needs approach in the 70s - which contrast to paradigm of that time of economic growth being means of development, as he suggested that there is a "need" to satisfy basic needs (food and shelter)

Amartya Sen

nobel prize winning Indian economist who suggested that development should be assessed less by material output (commodity fetish) and more by the capabilities and opportunities that people enjoy (capabilities approach) including individual freedom and fulfilment. He stressed the need for democracy to maximize voice of the people (especially the poor). Developed theories of famine and notes that famines are caused by lack of democratic institutions and redistributive policies.

R.H Tawney

ultimate goal is opportunity not equality of outcome: equalize opportunities > final obtainment socialist & pragmatist, to challenge conservative argument that there is something acceptable to live with inequality because people are born with capacities and endowments, equality should not be obtained in society but it should be reformed so that those that are disadvantaged are given greater support in the long run Tawney critical of upperclass on how they might challenge democracy (social rights), only want property rights and legal rights but not enfranchisement of lower classes - democracy = sham

Mahbub ul-Haq

was involved in the human development theory (HDP), and the founder of the Human Development Report (HDR). According to Haq's 1996 book Reflections on Human Development his work also opened new avenues to policy proposals for human development paradigms, such as the 20:20 Global Compact and the setting up of the UN Economic Security Council that became the inspiration for the establishment of the United Nations Economic and Social Council