Ex 2 282

Capital Flight

A large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, currency devaluation or the imposition of capital controls. (Ex. The Ivory Coast is the world's top cocoa producer, but the country only receives 5-7% of the global profit, with very little of it going to farmers. Most of the profits go to international export and powerful politicians because the Ivory Coast is politically and economically unstable.)

Grameen Bank

A microfinance and community development bank that grants small loans to the impoverished without requiring collateral. It does not put pressure on those taking loans. Founded by Muhammad Yunus Focused on LI people living in rural areas and women Groups living together obtained loans one-by-one, which incentived support and participation by others in the household enables people to act independently and not rely on a corrupt government Ex. In Sierra Leone, the impoverished can take out small loans

Universalism

A principle adopted by the UN as a cornerstone of human rights law. It argues that it is the duty of states to promote and protect all human rights and fundamental freedoms, regardless of their political, economic, or cultural system. basic human rights are considered an essential piece to development, regardless of society or political system in place The UN is responsible for peacekeeping; says (amongst others) that everyone has the right to marry, own property, and access equal protection under the law

Simple-Scarcity Conflict (Homer-Dixon)

A result of environmental scarcity, this is a type of conflict that arises when a state does not have enough of a certain, critical natural resource (resource wars) *More of a contributing factor than to a single causal factor to conflict This conflict can cause decreased economic productivity and deprivation conflicts; could lead to even more serious issues of migration/expulsion, ethnic conflict, and coup dé'tat of lacking government Application: Environmental scarcity >> A decrease in quality and quantity of renewable resources, population growth, and unequal resource access can all contribute to environmental scarcity that can lead to violence and contribute to conflict Typically environmental scarcity conflicts arise within the state and do not often occur between states. Ex. conflict between Honduras and El Salvador over a lack of arable land

Program Food Aid

A type of food aid that is classified as the transfer of goods from one country to another by getting rid of surplus in a donor country that can't be sold in their domestic market government : government transfer Different from project or emergency food aid as it is not directly distributed to the consumers Recipient countries usually buy the food with money borrowed at lower market interest rates

Rentier State

According to Beblawi, a rentier state is one in which: Rent situations most predominate The rent must come from outside the country Only a few in the state are engaged in the generation of rent, while the majority are engaged in distribution and consumption Government must be the principal recipient of rent 'Social contracts' are not present in rentier states: no taxes = no constraints Leads to patronage politics >> dependency on the government No development of a civil society because there is no incentive to critique the government ex. Venezuela under Hugo Chavez (established social welfare programs, but the onset of economic recession bring about inflation later on)

In-kind Commodities

Aid delivered in the form of actual goods rather than cash Used heavily by the U.S, as it supports their goods and services by sourcing them internationally (part of the Food for Peace Act) In terms of effectiveness and efficiency of aid, in-kind commodity exports are not so great

Urban Bias

Argued by Michael Lipton in "Why Poor People Stay Poor", made two propositions: the development process in many developing states is systematically biased AGAINST the countryside >> reflected in infrastructure, tax policy, pricing Economic development is hampered by groups who, by their central location in urban areas, are able to pressure governments to protect their interests RURAL AREAS ARE POOR BECAUSE THEY ARE POLITICALLY POWERLESS; geographic location is directly related to political influence

Asian "Values" argument

Argues that individual rights have come at the expense of an orderly society, and that a well- ordered society allows everyone to have a maximum enjoyment of freedoms. Lee Kuan Yew, the Prime Minister of Singapore, explains that in the U.S. the moral underpinnings of society have been eroded as has personal responsibility, but in the East, the individual exists in the context of the family. Thus, the ruler or the government does not provide what the family provides. Sen disagrees with Yew, arguing that an Asian values system does not exist, and advocates for basic freedoms as the approach to development instead of centering on those in power to develop. Relates to development because we have seen human rights, democracy, and capitalism be the key to development in the past, but countries like China have championed discipline, hard work, and educational achievement. Significant because the United States and China are two very successful and developed countries, but their means of attaining that status is wildly different.

First Generation Human Rights

Civil and Political rights Include right to life, right to vote, freedom of speech, and freedom of religion Sometimes, these are referred to as "negative rights" because it puts the state in a position of non-interference, allowing for constraints in government power over the people Key word: "liberties"

Corruption

Corruption is the abuse of public roles or resources for private benefit that have painful consequences to economically underdeveloped countries. Corruption can arise in three main forms: 1. incidental corruption which is more individual 2. institutional corruption which is present in certain sectors 3. systemic corruption which is routine, widespread, and accepted as a tool for transactions in society In underdeveloped countries, systemic corruption can lead to problems like the "bad governance trap." Corruption can have harsh negative impacts on the ability for a country to develop like crime, misallocation of resources, and a culture of impunity. (Ex. Nigeria can be considered a corrupt country)

Dutch Disease

Dutch Disease describes the social instability that arises when a country discovers a natural resource. Process: discovery of a natural resource causes the country's currency to rise in value against other currencies and makes other export activities uncompetitive crowding these other exports out, results in too much dependence being placed on one sector the economy is more susceptible to shocks in the market An additional side effect of Dutch Disease is that non-export services become more expensive. Ex. downfall of the coffee sector in Nigeria after the discovery of oil, demonstrating the negative economic impacts of a new natural resource

World Food Programme

Established in 1962, the WFP was created as a branch to the UN dedicated to providing food to destitute populations Handles ~98% of multilateral food aid U.S is the largest donor (in food) to the WFP Other food aid actors include: ICRC, IOM, UNICEF, UNHCR

Legitimacy Critique (of human rights)

Explains that rights cannot pre-exist that state because the state is the legal authority Sen disagrees with this approach, arguing that people should view human rights as ethical rights-just because a right is not legislated for, does not mean that the right should not ethically exist. >> Shows differing opinions between those who believe rights are relative and those who believe rights are universal. These differing opinions can lead to different patterns of development within a country Ex. in North Korea, instead of rights being codified by the state, rights are relative. There are no universal rights and the calls for gaining rights cannot be championed because the government will punish people for protesting.

Coherence Critique (of human rights)

Explains that rights require another agent to provide them, meaning that human rights cannot exist until it is provided by the agent. Sen argues that rights are imperfect obligations, meaning: just because violations exist, doesn't mean those rights should not be met This critique provides an example of differing opinion between those who believe rights are relative and those who believe rights are universal. These differing opinions can lead to different patterns of development within a country Ex. China champions discipline, hard work, and educational achievement, as opposed to human rights, democracy, and capitalism

Malthusian Dilemma

Idea that was introduced by Thomas Malthus in the 18th century. Malthus held concerns that population growth would inhibit progress to a utopian society; argued that sooner or later the population size would be checked by famine and disease and the population would eventually outstrip the food supply He came to this conclusion with the logic that population grows exponentially, while food grows arithmetically Malthus' predictions were inaccurate: population growth did not exceed the rate of increased food production (for changes in cultural norms, family dynamics, cost of child rearing, etc.) AND food production is increasing (due mainly to technology advancements) BUT, we still see people starving amidst plenty of food, demonstrating that distribution and access to resources may be more pressing issues than food production rates. Ex. Sierra Leone has relatively little food despite global food production not being an issue, India, etc.

Economies of Agglomeration

One of the central concepts in urban economics, stressing that cost reductions of products occur because economic activities are located all in one place For development: this raises the challenge of being the first firm to relocate/form in an area Presents a challenge of growth through trade

Triangular Transactions

One of the primary sources of food aid; food aid is purchased in one country (not the donor country) to give to another country (the recipient) usually funded by a cash contribution from the donor for the initial purchase of the food account for <8% of U.S. food aid effective in addressing two problems at once: helps a country facing overproduction and dealing with price problems + helps a country experiencing hardship or famine Ex. buying Indian grain to address famine in Bangladesh

Conditional Cash Transfers (CCTs)

Recipients commit to understanding certain behavioral changes* in return for cash transfers * enrolling children in school, maintaining attendance, getting prenatal/postnatal care, growth monitoring for children, immunization, etc. Targeted to LI households and women (positive gender bias) Family's eligibility is based on family ties, gender, and age More cash is given to those families with girls to encourage higher high school attendance Higher transfers are paid for secondary education rather than primary to continue learning Pros: Addresses underinvestment in human capital by private households (though improved education and health outcomes) Cons: Demeaning that government decides the preferences for the recipients high costs/administrative requirements infrastructure prerequisites measuring enrollment in schools (there is a difference between attendance vs achievement) CCTs' effectiveness depends on social services being in place already, since many of the behavioral changes/requirements rely on whether or not they are feasible tasks for the recipient

Resource Curse

Refers to the failure of many resource-rich countries to benefit fully from their natural resource wealth, and for governments in these countries to respond effectively to public welfare needs. Occurs when a state relies on a key resource for almost all of its revenue, allowing it to ignore its citizens and resulting in a weak state. Leads to warlordism, where warlords take control of territory using valuable resources, and use the funds to pay for weapons Ex. blood diamonds in Sierra Leone >> Sierra Leone relied on its diamond market, but the British seized control, profited on the diamonds, and completely neglected the people of Sierra Leone by leaving them in poverty

Green Revolution

The Green Revolution took place during the Cold War with the intention of addressing hunger and development to help combat the Red Revolution (of communism). "Green Revolution" was coined by William Gaud in 1968 to describe the international phenomenon occurring as a result of U.S. philanthropic funding of fertilizers, irrigation, and hybrid seeds In terms of development, Green Revolution helped countries like India because it enabled them to double crop and provided them with inorganic fertilizers to be a global contributor to food production. While the Green Revolution had some positive impacts, like increasing food production, knowledge exchange, land efficiency, and technological development, it also had harsh ecological and socio-economic impacts. Fertilizers polluted oceans.

Universal Declaration of Human Rights (UDHR)

The Universal Declaration of Human Rights (UDHR) was created by the UN following WWII in order to address and enact provisions regarding the issue of human rights mentioned on the UN Charter in 1945. (mainly in response to the legacy of Nazi Germany and genocide being of greater concern for world politics and conflict) UDHR was drafted by the Commission on Human Rights, a branch created especially to write this declaration North American and Latin American delegations differed on the content of the rights that should be emphasized on the UDHR (revealing the still relevant debate of cultural relativity in discussions on defining global human rights)

Informal Economy

The diversified set of economic activities, enterprises, jobs,and workers that aren't registered or protected by the state. The informal economy makes up a significant share of the global economy and workforce. In an informal economy, workers DO NOT pay taxes: economy can't grow workers can't benefit from social service programs The cons of informal economy make formal setup more favorable (de Soto's view) formal economies help to strengthen the state with taxation, worker protections, incorporating land/house titling, access to credit, homeownership, etc.

Microcredit

The extension of very small loans to low-income borrowers who typically lack collateral, steady employment, or a verifiable credit history. Intended as an entrepreneurial activity (help to create and sustain independent businesses) Helps LI citizens in LECDs as it enables them to borrow loans without having to provide collateral Promotes self employment and steady income Pros: successful in bringing financial services to the poor; developed an alternative to traditional collateral as a basis for lending Cons: average lending rates are high; there are disputes about the repayment costs The Grameen Bank is a microcredit banking institution.

Cultural Relativism

The idea that cultural differences constitute different views on the definition and implementation on human rights; ethics are based on historical, religious, political, and social contexts and norms of a nation, and are not really shared everywhere In the context of human rights, cultural relativism has been viewed by universalists as a tactic for countries to hide behind human rights abuses under the pretense of "cultural differences" Ex. Biden refers to China's treatment of Uyghurs in Xinjiang a cultural norm; he got criticism from many sides of the political spectrum saying that this statement was a major downplay of the human rights violations and genocide occuring in the province.

Bad Governance Trap (Collier)

The recurring corruption that enriches the governments of underdeveloped countries and impoverishes the people >> Systemic corruption is more pervasive in underdeveloped countries, as they do not have the proper institutions to combat corruption. Ex. The bad governance trap is seen in Nigeria, where police often bribe people on the streets. Police in Nigeria will go as far as shooting and killing people for refusing to pay as little as $10. Significant because police are supposed to protect the community, not subject them to live in fear.

Land Reform

The redistribution of property and land rights for the benefit of those who don't own land (usually tenants and farm laborers) Risk = perceived undermining of property rights, which can be harmful to economic development Land reform is a form of sustainable development that puts the property in the hands of the people farming the land, and not the corporations that profit off it >> small-scale farmers also tend to grow more output per acre than large farms Helped a handful of countries increase economic growth (ex. South Korea)

Third Generation Human Rights

These are a more recent focus of human rights that goes beyond the civil and social aspects to include things like right to a clean environment, cultural heritage, and intergenerational equity Third Generation HRs are also regarded as "positive rights" aka "Solidarity rights" These are much more collective and broad >> constituting the globe Ex. right to peace

Second Generation Human Rights

These rights are related to equality Include economic, social, and cultural rights like right to food, clothing, and healthcare Second-Generation HRs constitute as "positive rights", meaning that the government has the duty to reinforce or act on these rights Ex. reasonable levels of education, housing, minority language rights, etc.

Trade Barriers

Trade barriers are government imposed restraints on the flow of goods and services to and from their country. Types of barriers include: Protection of agriculture: using tax dollars in developed countries in order to subsidize agriculture in the U.S. Closes off opportunities for people who don't have a lot of other options besides that of agriculture Protectionism policies adopted by Asian Tigers also counts as a temporary use of trade barriers

Policy Incoherence

When different parts of a policy plan contradict one another/don't fit well with the end goals When states become permeated by private pressures, policies lose internal coherence Strategies to avoid incoherence: Insulation from the people Hostility and unresponsiveness to the people In relation to trade policy for objectives of nutrition Ex. If trade policy lowers the price of nutritious foods, this is coherent. But if trade liberalization policies lead to increased imports of ingredients used in unhealthy foods by the processing industry, there is incoherence

Monoculture Production

the agricultural practice of producing a single crop, plant, livestock variety, or breed in a field or farming system at a time Advantages: increased productivity and efficiency, specialization, maximization, etc Disadvantages: higher pesticide use, soil fertility loss, decrease in biodiversity, risky case of crop development failure

Geography Trap

the idea that a country is in a disadvantageous position when they are land-locked and surrounded by poor/hostile neighbors Results in: inaccess to the global market no foreign income from exports low domestic employment the idea that a country is in a disadvantageous position when they are land-locked and surrounded by poor/hostile neighbors Results in: inaccess to the global market no foreign income from exports low domestic employment

Monetization (of food aid)

the sale of food aid on local markets in developing countries to generate funds for development projects About 10% of US food aid was monetized in 1960, number increased to 60% in 2001-2002 Because the US specifically deals with this issue, fewer non-US NGOs are tempted to sell food aid to cover their costs