Chapter 5: Economic Development and the UN §

(F) Day of the week: Monday Class: IS201 Created Time: December 30, 2019 2:06 PM Database: Class Notes Database Date: December 30, 2019 2:06 PM Days Till Date: Passed Last Edited Time: June 9, 2021 10:42 AM Type: Lecture

1. Why economic development is important?

• Maintain Peace & prevent war

  How does economic crisis lead to war?

  Protests ⇒ Riot ⇒ Government vs citizen ⇒ Civil War

  • Ex: 1929 economic crisis led to the Great Depression ⇒ WW2

    America spread to Europe.

    • How

      Nationalism in Germany (Hitler) due to economic crisis

  current lack of resources leads to violence and civil war

• Globalization, Interdependence, & cooperation dealing with problems together

  failure of one state affects many other states ⇒ strive for stable economy

2. What are the persistent challenges facing human development?

• Unequal Distribution of Resources

  600 billionaire is more wealthy than 90% of the world

  South Asia, Africa

• Unequal Distribution of Income

  wage, interest, rent, profit

Theories Shaping the UN Approaches to Economic Development §

Economic Liberalism §

Adam Smith 1990s

Economic Development

• Interdependence between states
• Economy and politics should be separated

Economic Policy

• Free market
• Less state intervention, only for market failure/economic crisis

How economic institutions help state’s economy?

attract FDIs to Least Developed Countries (LDC)

• World Bank(1944): long term loans
• International Monetary Fund: stabilize currency exchange rate, provide short term loans
• World Trade Organization: deal with trade disputes, provide trade regulations

Mercantilism/Statism (1400s - 1700) §

Monarchy ⇒ Mercantilism

Main actors: state regulate market

States stress on self-sufficiency/independent by

• Produce to meet domestic demands
• Support infant industries (Small and medium-sized enterprises)
• Limit FDIs
• Set trade barriers

Mercantilism: Power == Wealth

Marxism §

Karl Marx

(Inequality) Conflict between

• Proletariat: labor workers
• Bourgeoisie: business owners

Stressed on

• Central planning (state-led economy)
• Heavy Industries: large and heavy equiments

Dependency Theory §

Inequality between rich and poor states (NvsS)

• Core: Rich states
  • started industrialization first
  • Tertiary economy
    • Service industry
    • Cyber industry
• Semi-periphery: middle income states
  • Later to industrialization
  • Primary Economy
    • National Resources
    • Land
• periphery: poor

  • trying to industrialize

  • Secondary Economy

Superpowers and the Rest of the World Theoretical Framework §

Periphery: Low-value primary products

V

Core: high-value products

Solution: self-reliance, protectionism.

Sustainable Development §

Sustainable development core elements

• Political Stability
• Economic Development
• Environmental Conservation

Debate

Economic Development or Environmental Conservation first?

The UN and Sustainable Development §