POLI150 Oct 8 Poverty in the Global South Key Terms Economic Development The Great Divergence Theories that don t work What is development Development the security of access to material resources industrialization economic interdependence globalization higher standard of living The effort or ability of a society to sustain an increase in overall standard of living Standard of living is measured by GDP per capita access to resources distribution of income life expectancy education literacy rates access to healthcare infant mortality The Puzzle of Economic Development 1000 BCE 1800 CE relatively stable average income No sustained improvement over 2800 years 1800 Industrial Revolution Increased production and infrastructure Trains and cargo ships increased trade as the international market opened Loom textile boom Steam engines increased production capabilities Energy Density Coal Innovation Increased employment The puzzle why suddenly in 1800 did we figure out we could do this Political stability Lack of metallurgical technology to make engines and other vessels Higher population pressure Endowments of resources though Britain had coal in 1000 BCE they had not figured out how to use it Scientific innovation Per capita income by region The Great Divergence From 1800 the Global North and some of the Western Offshoots grow exponentially while Asia Latin America former USSR and Africa have seen little to no progress If one system can why can t others distribution of resources between Global South and Global North Climate factors England was forced to industrialize early because it is too regularly cold and rainy to sustain large scale agriculture Imperialism colonization historically have suppressed development Long Run Perspective GDP per capita relative to US Some nations eg Cuba and Barbados were significantly wealthier than US before 1800 and are now only receiving a small percentage 15 22 of current US revenue Colonial status some nations that were once colonized have managed to increase their standard of living in relatively short periods of time South Korea Singapore while others have not Nigeria Variation of States within the Global South Individualist cultures generally tend to progress further than collectivist cultures Deepening the Puzzle The path to development 1 Societies save 2 Societies use savings to invest 3 Societies invest in things that raise productivity Challenge for late developers eased by Global capital markets They are not restricted to only their own savings they can borrow from others Societies need not invent technology they can import Low income societies should grown more rapidly than high income societies Convergence not divergence Why does this matter for international politics Stability order if incomes are relatively high states are more likely to participate in the global state system Productivity benefits all Interconnected world economies Power dynamics what will drive a decline in American hegemony vs the rise of Chinese hegemony EBOLA A far off crisis has managed to affect the world the US incident s general global scare due to lack to healthcare resulting from a low income society Conflict most conflicts can be seen as correlated with low income countries The US has had to intervene in world conflict in low income high conflict states Hot wars can become global threats Theories that may or may not work Those that Acemoglu and Robinson Reject Geography Culture Ignorance Degree to which indigenous rulers have the necessary knowledge to develop a state argue that this theory to underdevelopment is false because the idea of development is present and just simply not implemented due to political regimes Others Poverty Trap Either they are not saving or they are not investing Structuralism Institutionalism Regimes purposefully prevent development