DP1 Students: IA Engagements!

Contested Meanings of Development

To start off...

Jonathan Pie is a satirical British journalist (well, sorta journalist -- he's a satirist.)

Here, he embeds himself with a British social movement / NGO, Extinction Rebellion.

In the video, a very red-faced Pie brings up a number of competing views on development as he rants like a madman.

The role of globalization

Globalization is one of our key concepts for this unit! Globalization basically cannot be ignored when we consider modern-day development.

Globalization is what has led to increased trade between countries and regions; globalization is responsible for both the spread of technology across the world, as well as the increasingly important role that technology plays both in development and in people's daily lives; globalization has led to greater financial interdependence between states (where economic crises in a state have the potential to spill over and affect other states, as well); globalization has encouraged, and contributed to, more mobility for workers and other laborers as the work force in many states becomes more and more international (tech in the USA, migrant work in Taiwan, basically everything in the UAE and Qatar, etc.); globalization has also led to both increased cultural exchanges between regions as well as the shaping of a global "monoculture," where we are able to see more uniform characteristics in many places around the world (e.g., architecture, clothing, use of English and other lingua francas, etc.)

"Well-being" and "ill-being"

IB's key concept description for Development ends with the claim that " all societies and communities face questions about how to best promote well-being and reduce ill-being." So, well-being and ill-being are terms worth considering and understanding. Under the broadest definition of development, the image to the left highlights what well-being looks like: good health, safety, and having material conditions that contribute to a good life. Therefore, development should address these areas. Similarly, ill-being can be defined by a lack - vulnerability rather than security, a sense of powerlessness rather than a sense of empowerment, etc.

Considering both well-being and ill-being highlights how development is not just about making things better, but also about making bad stuff decrease (an incentive not to just ignore problem areas.)

Maslow's Hierarchy of Needs is another way to look at well-being. It starts at the bottom of the pyramid with the most fundamental needs a person has, and level-by-level adds things that contribute to greater well-being. On top is the idea of self-actualization, where a person has the resources, environment, and sense of security needed to be fulfilled.

Johan Galtung and "Basic Needs Theory"

While Galtung's idea of basic needs is mainly applied to concepts like positive peace, it can also be used as an idea of "well-being." Galtung separates basic needs into...

Survival: What's necessary for life (food, water, shelter, healthcare)

General Well-Being: Physical health, mental health, education, jobs.

Identity Needs: A sense of belonging, self-esteem, cultural and social identity, respect, a sense of being recognized.

Freedom: ability to make choices, express yourself, freedom of movement, etc.

Meaning: The ability to search for and pursue a purpose; to have and hold certain values, and to understand the world and your place in it.

You'll likely note an overlap with the two images up above, and even some connection to things like Amartya Sen's capabilities theory.

Human Development

Human development goes farther than economic development, in that it asks states to directly prioritize improving people's lives. Whereas economic development assumes that benefits will trickle down throughout society, human development prioritizes actions that directly contribute to those improvements. This is why human development considers a wider range of factors than just those that are purely economic (see the human development index section below.) This idea came to prominence in the early 1990s.

Increasing income is still one of the primary economic goals of human development, but expanding opportunities for people is added on top of that. A focus on education, combating gender and ethnic inequality, and ensuring access to quality healthcare are all cornerstones of human development.

Sustainable Development

Sustainable development is perhaps best exemplified by the 17 Sustainable Development Goals unveiled in 2015. The SDGs include targets on things like water, green energy, climate, urbanization, public and private transport, science and technology and innovation.

Sustainability does not just focus on the environment, and this is often misunderstood. The word itself simply means that something is able to continue and be carried into the future, so there can be environmental sustainability, economic sustainability, social sustainability, etc. Indeed, there are several key elements of sustainability, with the most crucial being the need for continued economic growth, improvements to social inclusion (as having marginalized groups makes society less sustainable, so working towards equality is a part of this), and making decisions with a need for environmental protection in mind (including conservation of resources.)

Goals of Economic Development

Economic development is one of the most fundamental traditional goals of development, to the point that early development theories focused primarily on economic development (a la W.W.Rostow's Modernization Theory.)

It's tempting to think of economic development as just being about money (GDP go BRRRRRRRRR) but it's actually more than that. Highly developed economies produce more stuff that is more highly-valued, and offer high-quality, efficient, and effective services. So, economic development is not just about making financial numbers go up, but also about improving value and worker productivity. Improving these areas will also help GDP increase, as GDP is the total value of all goods and services produced within a country in a year. Productivity helps boost production, and improvements to quality boost the value of goods and services.

Unemployment is also an area where countries need to pay attention. Lower rates are better since it means more people are working and being "productive."

Encouraging commerce (buying stuff) is also key to economic development -- how much people shop, and how often, are indicators of the health of an economy (read reports of "holiday season" financial results, as they are good indicators of how much regular families have available to spend and how willing they are to part with their cash.) Economic "indicators" of development include things like GDP, the unemployment rate, stock market values and trends, and retail sales (buying and selling of finished goods.)

Poverty

Combating poverty is also a major goal of economic development, and more economically developed states should theoretically have lower poverty rates (though poverty is quite stubborn and very difficult to eliminate.) There are debates over whether poverty should be defined based on an absolute (or universal) measure or a measure that varies from place to place. The former would be absolute poverty, and something like the international poverty line ($1.90 USD per day) would indicate where that falls. Relative poverty cannot be easily measured, and it has to be examined; the basic idea is that a person who is poor in one country may not be considered poor in another. This is one reason why inequality is often discussed in conversations surrounding economic development.

Growing the middle class?

The idea of a middle class is pretty closely tied to successful development.

The existence of a growing middle class is a sign that wealth inequality is beginning to go down as a country develops. A growing middle class is often accompanied by increases in educational achievement, average income, home or apartment ownership, and the viability of a market for non-essential goods (luxury items, electronics, etc.)

You may recall when Hollywood films started suddenly having Chinese performers, or added special scenes for Chinese cinema-goers; this was because China's growing middle class was made up of a few hundred MILLION people. That's a lot of newly disposable income that MNCs wanted a piece of.

The flip side of this is that most highly developed countries are experiencing a middle class "squeeze." Economic crises, the pandemic, and rising costs of living are depressing the quality of life of middle class families in many countries. In Taiwan, we can see this in how inflation increases the price of groceries, the INSANE housing prices, and the increase in the number of young people looking abroad for education and jobs.

Fighting Poverty

Reducing or eliminating poverty is a common goal of nearly ANY development program, whether it's based in sustainability or not.

A reduction in poverty is associated with a RANGE of improvements in overall well-being. Life expectancy goes up, average years in schooling increases (along with the overall literacy rate), and a country's economy pivots more towards secondary and tertiary industries (manufacturing, services, and information management.)

Note that reducing poverty is a consistent priority by IGOs and states. Goal #1 of the SDGs is... reducing poverty. Basically ALL of the Millennium Development Goals (MDGs) were focused on something linked to the reduction of poverty, or its negative effects.

EVERY country has some level of poverty, so it's on EVERYONE's agenda.

Cases: Microfinance

Microfinance is basically "small banking." Rather than dealing with large firms and large sums of money, microfinance gives individuals and families, usually from poorer backgrounds, access to loans, savings accounts, and other financial services. The beneficiaries of microfinance are often considered "too risky" by the larger banks, and were traditionally shut out of the financial system. Microfinance gives them access and levels the playing field a bit. Microfinance empowers poorer communities and promotes sustainable business practices -- many microfinance programs have extremely high rates of their loans being repaid, partly because these banks form positive, supportive relationships with their borrowers and aid them in learning how to be financially responsible.

Bangladesh: Bangladesh is home to TWO successful microfinance success stories, but here we'll focus on one: Grameen Bank. Grameen Bank is a microfinance institution founded by Nobel Peace Prize winner Muhammad Yunus in Bangladesh in 1983. The bank's mission is to provide financial services, particularly small loans, to low-income individuals, particularly women, who do not have access to traditional banking services.

Grameen Bank has been successful in reducing poverty in Bangladesh by empowering women and promoting entrepreneurship. Women make up the majority of Grameen Bank's borrowers, and the bank has implemented a number of programs aimed at promoting women's empowerment, such as providing education and training on financial management and entrepreneurship.

Grameen Bank's lending model is based on the concept of "group lending," where borrowers are organized into groups of five and must collectively guarantee each other's loans. This model has been successful in reducing the risk of default, as the group acts as a support system for each other.

As of 2021, the bank has over 9 million borrowers, with a repayment rate of over 97%. The bank has also expanded its services to include other financial products, such as savings accounts and insurance. Grameen Bank's success has demonstrated the power of microfinance in reducing poverty and promoting economic growth, particularly in developing countries AND for groups like women, who often need more targeted assistance.

Cases: Education

Vietnam has made significant progress in expanding access to education over the past few decades. In the 1990s, the government implemented a series of reforms aimed at improving the quality of education and increasing access to schools in rural areas. As a result, the country's literacy rate has increased from 90% in 1990 to over 96% in 2020. Education has been a key factor in reducing poverty in Vietnam, with poverty rates declining from over 50% in the 1990s to under 10% in 2020.

South Korea is often cited as a success story for education and poverty reduction. In the 1960s, the country made significant investments in education, particularly in science and technology, which helped fuel the country's economic growth. Today, South Korea has one of the highest rates of post-secondary education in the world, with over 70% of young people attending university. This high level of educational attainment has aided the country as it forges ahead in a variety of industries; South Korea is far less reliant on foreign talent for roles in its tech industry, compared to competitors like the USA. The investment in educaiton has also paid off for the country in its success in reducing poverty, with poverty rates declining from over 30% in the 1960s to under 10% in 2020.

South Korean professor of shiny shirts, Psy.

Goals of Social Development

Consider for a moment how the idea of well-being might relate to things like freedom and opportunity. Would you consider more freedoms to be a good thing? More opportunities? More quality opportunities? Those are the goals of social development in a nutshell.

The ultimate effect of having greater freedoms and opportunities is a sense of empowerment (which links to what Maslow places at the top of his Hierarchy of Needs.)

Combatting poverty can also have an effect on social development. Poverty limits opportunities and countless studies have shown how growing up in poverty of any form leads to worse outcomes compared to growing up in stable economic conditions. Public schools in American cities are often poverty-stricken, and low test scores, low graduation rates, and lower rates of college acceptances abound. Since they are funded primarily by property taxes, and most residents live in apartments (or have low-value homes) they are often chronically underfunded. Suburban public schools have few, if any, of these issues, and their funding is secure thanks to the prevalence of single-family homes and higher property values.

Below, there are two videos: on the left, about how the Nordic countries in Europe manage social development fairly well (these states are often helped up as a model.) It's worth considering whether this Nordic model is actually realistic for every state. On the right, an overview of Indian economist Amartya Sen's idea of development that focuses on improving "capabilities."

Amartya Sen

Amartya Sen's idea of development centers on the concept of building people's capabilities. He argues that development should not be measured solely by economic growth or material progress, but rather by how much freedom people have to choose the kind of life they want to live. In other words, development should be focused on expanding people's opportunities and capabilities to do what they value, such as being healthy, educated, and productive, and participating in social and political activities.

Sen's idea of capabilities is broader than just individual skills and knowledge; it includes social and environmental factors that affect people's ability to achieve their goals. For example, access to healthcare and education, clean water, and a safe environment are all necessary for people to live fulfilling lives.

Sen argues that the government's role in development is to facilitate the expansion of people's capabilities by providing essential services and creating opportunities for social and economic participation. By doing so, people can exercise their agency and make choices that lead to a better quality of life.

Below: The idea of universal basic income (UBI) has been floated as a potential way to assist development efforts in the future. Go through the article embedded below and consider the impact that something like UBI could have on social development.

Everywhere basic income has been tried, in one mapWhich countries have experimented with basic income — and what were the results?

Below: The Nordic States (Scandanavia) are known for a unique social-political structure, equal parts capitalist and... non-capitalist (read: Marxist.) They strike a middle ground between a pure market-based economy and a more socialist system.

Case Study: Nordic Social Democracy

The Nordic countries (Denmark, Finland, Norway, Sweden, and Iceland) are known for their model of social democracy, which combines a market economy with a strong social welfare system and a commitment to equality and social justice.

In the Nordic model, there is a high level of taxation and government spending on social programs, such as healthcare, education, and social security. This is supported by a highly productive and competitive economy, with a focus on innovation and entrepreneurship. The Nordic countries also have strong protections for workers' rights, with high levels of unionization and collective bargaining.

The Nordic model is based on the idea that a strong welfare state and social safety net can help promote economic growth and reduce inequality. By providing universal access to social services and supports, the Nordic countries aim to create a more equal and just society, where everyone has the opportunity to succeed and reach their full potential.

Critics of the Nordic model argue that the high taxes and regulations required to fund the social welfare system can stifle economic growth and innovation, and that the system creates a culture of dependence on the state. However, proponents of the Nordic model argue that the benefits of a strong social welfare system, such as improved health outcomes, higher levels of education, and reduced poverty and inequality, outweigh the costs.

Overall, the Nordic model of social democracy represents a unique approach to balancing the needs of the market economy with the goals of social justice and equality, and has become a model for other countries seeking to create more just and equitable societies.

Goals of political development

Political development is often left out of conversations of development in general. However, the political priorities and conditions of a state set the stage for success in development.

Most importantly, politics provide the basis for stability (or a lack of stability.) If you want people to start business and spend money, that stability is essential, as risk-taking and spending go down in a volatile environment.

Strong political institutions that can survive periods of conflict or turbulence are also important. They should keep their eyes on the goal, make long-term plans, and seek to maximize the benefits of development.

IB loves to ask questions about whether political stability is essential for successful development, and there's pretty good arguments for "yes."

Case: Somalia

Somalia shows how stability and security create the foundations for successful development. Unfortunately, Somalia does this by not being stable or secure, and it remains one of the most underdeveloped nations in Africa.

The central government is effectively NOT in control of the entire state. There are a number of human rights crises. People lack access to education and healthcare. All this, in turn, makes outsiders wary of investing. Political stability would go a long way towards creating the environment where these issues could improve and where outside help could potentially be brought in.

Case: Somaliland

While lacking formal recognition as a state, and still having its own development challenges, Somaliland's comparative stability has been a boon for its development efforts.

Unlike in Somalia, there actually is foreign direct investment in Somaliland (though still rather limited.) The government is far more stable and is able to project confidence that things will be ok. The fact that Somaliland isn't wracked by civil conflict also means that they have been able to lay down basic infrastructure, and people do have access to education and healthcare. Their successes highlight how basic political stability can go a long way, even if there are other significant challenges.

Goals of sustainable development

As outlined up above, sustainable development tries to do a lot at once. Economic growth is still a priority (as are other related economic issues), and there are efforts made to improve social cohesion and improve life for women and children. Lastly, there is a renewed focus on the environment, both in terms of balancing our economic needs with the need to preserve the natural world for future generations, but also in the use of resources and maintaining the ability for living creatures to thrive in their own habitats.

One of the most critical SDGs is Goal #17, about forming international partnerships for the goals. Goal 17 is NOT a self-fulfilling prophecy; when the SDGs were unveiled in 2015, this goal was included because it was clear that there were not quality international relationships or opportunities to collaborate on sustainable development. Whether that has improved in the last seven years is debatable.

Costa Rica's success story

Over the last 30 years, Costa Rica has worked hard to transform their tourism industry into one that focuses on ecotourism. This has led to reversals of deforestation (with jungle/forests being regrown and biodiversity protected), local people being trained in new environmentally friendly jobs, and a notable increase in overall income from tourism.

Costa Rica's efforts have been economically, socially, and environmentally sustainable -- they are an example of how, in the right circumstances, sustainability and economic development can coexist.

Waste reduction

Have we been successful in decreasing the amount of trash we produce? In a word, no.

Efforts at reducing the consumption of resources have proven to be among the greatest challenges of sustainable development. It takes a lot to change lifestyles in more developed countries, and many in less developed countries resent being asked to live their lives without the comforts that people in the West enjoyed over the last several decades.

The challenges of dealing with waste have helped emphasize how sustainable development requires setting plans, evaluating progress, and re-adjusting as needed. Goals set for 2030 or even 2050 need to be re-visited and new plans made in light of successes and failures. The feasibility of 15-year plans is increasingly grim; constant adjustment is required.

Waste: China

China is the world's largest producer of waste, flat-out. During its period of rapid development, consumption rates rose far faster than efforts at controlling waste could keep up (Shanghai wasn't sorting its garbage/recycling when I left in 2018, though it is now.)

Waste: USA

The US generates more waste per capita than any other country in the world. According to the Environmental Protection Agency, Americans produced 292.4 million tons of waste in 2018, and only about a third of that was recycled or composted.

Waste: Indonesia

Indonesia is the world's second-largest contributor to marine plastic pollution, and the country faces significant challenges in managing its waste. Many areas lack proper waste management infrastructure, and illegal dumping and burning of waste are common (leading to air pollution.)

How can development be measured?

There is no one "best" measure for development. Instead, we should consider that there are a variety of measurements and they all have some level of utility, as well as some possible drawbacks. The "best" measure of development depends on what the goal of development is; and since states' development goals often vary wildly, there will be no single objective measure of what is best.

Don't get confused between a measure of development (such as HDI) and an indicator of development (like GDP per capita.) A measure of development is a broader concept that encompasses various factors or dimensions of development, such as economic, social, and political factors. It provides an overall assessment of a country's level of development based on a combination of different indicators.

On the other hand, an indicator of development refers to a specific variable or factor that is used to measure a particular aspect of development, such as income, literacy rates, life expectancy, or access to healthcare. A variety of indicators are often used to provide a more detailed and specific understanding of a country's level of development in a particular area.

Keep in mind that even though these measures are often mathematical and seem impartial, the specific indicators that they use are the result of human choices. What a measure of development looks for is a very good indication of what it values - traditional measurements heavily focus on economics, and as time passes we tend to see more holistic measures being used more frequently (human development index, Happy Planet, inclusive wealth, etc.)

Measuring Economic Development

GDP per capita: The most popular and most basic measure. GDP per capita gives us a quick sense of a state's average income, found by dividing the total GDP of a country by its population. GDP per capita does not give any sense of how that income is distributed throughout a state, or within a social structure. Taiwan's GDP per capita, for instance is higher than its actual average salary (uh oh, check out Gini coefficient.)

Gross National Income: While the gross domestic product tracks the value of goods and services within a states borders, GNI does two things differently. First, it tracks income not value. Second, it ignores national borders when measuring income. So, if someone in Taiwan has a rental property in Thailand that they list on Air B&B, the income they get from that would be included in Taiwan's GNI (rather than Thailand's GDP.) Gross national income's value comes from being able to measure and track a country's overall wealth.

Gini coefficient: The Gini coefficient is a measurement that tracks income inequality. It's best used alongside something like GDP per capita, as the two measures put together give you a much better idea of things than just one measure individually.

REMEMBER: ONE of these things, on its own, tells you very little about a state's level of development.

Measuring Human Development

The Human Development Index (HDI): Originally developed by the UN in the early 1990s, so that "people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone." It looks to measure whether countries' citizens live long, healthy lives; whether they are educated and knowledgeable (you know, by knowing how to read); and whether their income is high enough for a decent standard of living.

Life expectancy at birth is used to measure the health side of things, number of years in school and the literacy rate for education, and Gross National Income (per capita) for measuring income. They use GNI rather than GDP since GNI is very specifically focused on income, and GDP per capita is a rather inaccurate measure (better for quick comparisons rather than anything meaningful.)

In the map up above, the darker greens represent countries with the highest HDI, and darker reds represent the lowest.

Inequality-adjusted Human Development Index (IHDI): he IHDI is a modification of the Human Development Index (HDI) that was also developed by the UN Development Program. Traditionally, HDI does not take into account inequalities in these indicators. The IHDI adjusts the HDI to account for inequalities in income, education, and health, providing a more equitable assessment of a country's level of development.

For example, two countries may have the same HDI value, but if one country has greater income inequality, lower education levels, and worse health outcomes, then its IHDI value will be lower. The IHDI ranges from 0 to 1, with higher values indicating more equitable development outcomes across a country's population. The IHDI provides a more nuanced and fair assessment of a country's level of development, taking into account inequalities that may exist within a population.

What about the ladies?

In addition to the Human Development Index and IHDI, the UNDP also created the Gender Development Index (GDI) to specifically assess gender-based inequalities. Think of it like... the IHDI but specifically focused on the gender gap. It is calculated based on three indicators: life expectancy, educational attainment, and income. These indicators are adjusted to account for gender differences, which can reveal disparities between men and women in a country's development. The GDI ranges from 0 to 1, with higher values indicating more gender equality in a country's development.

For example, a country with a high GDI value means that both men and women have similar life expectancy, educational attainment, and income levels. In contrast, a low GDI value indicates that men have better development outcomes compared to women, highlighting gender inequality.

Happy Planet Index

The Happy Planet Index is a hippy-dippy method of measuring development created by the New Economics Foundation (a UK think tank).

It takes into account sustainable development more than anything else. The main factors considered a country's sense of well-being, the level of inequality, life expectancy, and the ecological footprint of the country's citizens.

Countries with higher feelings of well-being and lower ecological footprints are ranked highly, while higher ecological footprints will bring down a ranking dramatically, even when a country's sense of well-being is high.

Inclusive Wealth

(We didn't study this in class, but there are things we did look at that have some overlap with the Inclusive Wealth Index.)

The Inclusive Wealth Index tries to get the value of all different types of "capital" in a country, including human capital and a state's natural resources.

It's a mix of traditional economic measurements looking at economics, as well as some elements of sustainability; the key piece of inclusive wealth is whether countries' methods and patterns of development will allow future generations to meet their needs.

Like most indices (index) it's a fairly complicated calculation.

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