WHY STUDY DEVELOPMENT? What is economic development, and how do you measure it? Absolute, relative, growth first models? What is the relationship between.

WHY STUDY DEVELOPMENT?What is economic development, and how do you measure it?

Absolute, relative, growth first models?

What is the relationship between politics and economic development? Why did Marx think that all politics was ultimately about economics… Why did America’s Founders ultimately believe that democracy would only last if its impacts on economic outcomes were limited?

How relevant is economic equity (opportunity and outcomes) to the birth and stability of political democracy?

What can Latin America teach us about how well different approaches to development work?

WHY ARE LATIN AMERICAN COUNTRIES POOR? Is it a question of location?• Larry Diamond’s thesis. And Fukuyama’s response—How do you

explain Mexico and especially Argentina?

Is it a question of culture?• Max Weber’s thesis. And Fukuyama’s response: Culture’s much

more flexible than we usually think… It becomes a bigger problem when social, political and economic institutions lock it in. Think of the first 150 years of gender relations in the US vs. more recently.

Is it the fault of the West or the US?• Colonialism led to:

– 1) the forceful restructuring and centralization of Latin America’s economy around commodities,

– 2) cultural issues and hegemony that undermine development, – 3) a looting of capital

WHY ARE LATIN AMERICAN COUNTRIES POOR? Is it STILL the fault of the West or the US?• Independence and American imperialism led to enclave production

– 1) The concentration of all native expertise in uncompetitive industries,

– 2) Capital & elite flight as well as unholy alliances– 3) antidemocratic and anti-industrial coalitions of elites , the

military, and American intervention– 4) MNCs, regional trade agreements, and unfair competition

(WTO still has problems) – 5) lots of debt and dependence

WHY ARE LATIN AMERICAN COUNTRIES POOR? Is it their own fault because of lousy political and economic choices?• Increasingly, experts point to problems of bad governance and the need for neo-

liberalism– What is the Washington Consensus?– What role did the IMF and to a much lesser degree the World Bank and the

Inter-American Development Bank play in promoting the consensus– To what degree are models of state-led development replacing the

Washington Consensus– How could trade reform make things better

• Why is political reform so important to development?– Are institutions and veto points the problem? Fukuyama’s comparison of the

US and Latin America– Why were the Founders wrong about everyday people and democratic

politicians most of the time? Why are populists the problem, but democrats the solution?

– Building democratic governance is key to fighting corruption and limiting rent seeking regulations

– Why does Fukuyama believe that both democratic stability and economic development requires investing substantially in human capital and allocating resources to the poorest… Is Lat Am doing this well? Let’s see some data:

Source: Charles H. Blake. 2008. Politics in Latin America, 2nd. ed. Boston: Houghton Mifflin

Source: Charles H. Blake. 2008. Politics in Latin America, 2nd. ed. Boston: Houghton Mifflin

Source: Charles H. Blake. 2008. Politics in Latin America, 2nd. ed. Boston: Houghton Mifflin

Source: Charles H. Blake. 2008. Politics in Latin America, 2nd. ed. Boston: Houghton Mifflin

Source: Charles H. Blake. 2008. Politics in Latin America, 2nd. ed. Boston: Houghton Mifflin

WHAT ARE THE MAIN TYPES OF POLITICAL ECONOMY THAT WE ARE GOING TO STUDY?

WHAT ARE THE MAIN TYPES OF POLITICAL ECONOMY THAT WE ARE GOING TO STUDY?

Source: Charles H. Blake. 2008. Politics in Latin America, 2nd. ed. Boston: Houghton Mifflin

WHAT ARE THE MAIN TYPES OF POLITICAL ECONOMY THAT WE ARE GOING TO STUDY?

• Is socialism (at least in the command economy form of it) dead?: Cuba

• Neo-liberalism capitalism at its best… Can you make it more equal and get it without repression: Chile

• Are there any advantages to state-led capitalism with a soft side?: Brazil

• Can the people withstand the temptation of populists in a setting with lootable assets: Venezuela

WHAT ARE THE MAIN TYPES OF POLITICAL ECONOMY THAT WE ARE GOING TO STUDY?

• Socialism (Command Economy): Cuba• Neo-liberalism: Chile• State-led capitalism: Brazil• Populism with lootable assets:

Venezuela

HDI: A GLOBAL MEASURE OF HUMAN DEVELOPMENT

HDI in LatAm: 10 higest and lowest

CUBA’S DEVELOPMENT

CHILE’S DEVELOPMENT

VENEZUELA’S DEVELOPMENT

HPI-1: A Measure of Severe Deprivation(a close look at life in the world’s poorest 100

or so countries)

WHERE DO CUBA’S POOR SIT AMONG THE WORLD’S POOR COUNTRIES?

WHERE DO VENEZUELA’S POOR SIT AMONG THE WORLD’S POOR?

WHERE DO CHILE’S POOR SIT AMONG THE WORLD’S POOR?

MEASURING QUALITY OF LIFE FOR WOMEN:The GDI (Gender Development Index)

LIFE FOR WOMEN IN CUBA

LIFE FOR WOMEN IN VENEZUELA

LIFE FOR WOMEN IN CHILE