Lecture1 - DEVELOPMENT ECONOMICS LECTURE NOTES 1 ALPER...

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Unformatted text preview: DEVELOPMENT ECONOMICS LECTURE NOTES 1 ALPER DUMAN Development relates to three aspects. These are sustainability, self-esteem and freedom. 1. First, sustainability of individual lives means everyone to meet the basic needs including shelter, food, health and protection. Poor should not die for the lack of such goods and services. 2. Second, self-esteem reflects what people think of themselves, a sense of worth and self-respect. Poor should not cry when they meet degrading looks while scavenging in the streets. 3. Third, freedom implies to be able to choose. Poor should not feel 'estranged', socially and politically marginalized. This last aspect is the most important. As Amartya Sen asserts development as freedom is to maximize the 'capabilities' of all. 1 Turkish citizens are proud to be among the G20. However, they rank as 87th in the happiness index 1. Think about the families of 985 thousand child workers in 2006. These children are between 6 and 17. How would the parents of these children report their happiness? Would anyone of them declare that they are very or somewhat happy while their children wake up early in the morning and rush to a workshop, or to a small grocery, or to a field instead of playing or attending to school. More than half of them work for a wage. That is their families certainly need the income the children earn. Nevertheless, some other families could have felt a bit better. For, there had been 2 million 269 1 This index is prepared based on subjective answers given in World Value Surveys 2 thousand kids being employed in 1994. Having been dependent on their fathers or husbands for their sustenance, many young women in Turkey could not severe the link with their families even under serious threat of 'honour murders'. In 2007 hundreds of women were killed mostly by their relatives. In the urban areas women suffer from unequal pay. They are underrepresented in political parties and in the parliament. The ratio of female representatives in the parliament is less than some of the african countries. Most signifantly though the female labor force participation is merely 28 percent. The female to male ratio in labor force in Turkey is just onefourth. Most of the female labor power remains idle. Even if these women as wives or daughters have access to the material sources to sustain their lives, they are deprived of self-esteem and freedom, at least partially. Let's hear out Zarife from Diyarbakr expressing 3 her views on microfinance There is no factory in Diyarbakir, no work; everybody is poor. Our homeland is poor, nobody has money. Wordbank lends us money without interest. Interest is a sin. We get the money to start up a business, to imrove it. Turkey is an Upper-Middle Income Developing country Turkish citizens do not save much Turkish firms do not invest much Turkish women do not work Turkey has a considerable external debt 4 Figure 1: Income and Dependent People gdp per capit a 20 0 0 co nst ant do llar prices 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey 6033 1762 2182 535 2126 1615 1044 3813 2941 2090 6776 3200 2206 791 3608 3158 1649 5827 3275 2719 6373 3535 2794 1120 4372 5798 2236 7683 3223 3178 8213 3644 4862 1392 4262 9306 3519 10296 2975 3975 8094 3951 5714 1643 5870 13240 4360 11093 3429 4633 8693 4044 5912 1724 6107 13884 4535 11201 3562 4890 9357 4212 6153 1815 6196 14540 4715 11388 3718 5045 Age Dependency Rat io 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey 0.57 0.87 0.83 0.87 0.49 0.86 0.95 0.61 0.84 0.86 0.61 0.75 0.67 0.82 0.53 0.64 0.78 0.59 0.81 0.83 0.66 0.68 0.57 0.82 0.51 0.47 0.71 0.53 0.74 0.69 0.62 0.56 0.55 0.71 0.47 0.40 0.62 0.48 0.60 0.57 0.58 0.51 0.49 0.62 0.45 0.39 0.56 0.48 0.57 0.51 0.57 0.51 0.48 0.61 0.45 0.39 0.55 0.48 0.57 0.50 0.57 0.51 0.48 0.60 0.44 0.38 0.54 0.49 0.57 0.50 5 Figure 2: Exports and Debt Expo rt s as % o f G DP 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey 6.48 6.00 13.98 13.19 26.24 12.27 39.44 20.96 25.98 .. 8.61 6.68 20.58 21.75 38.41 28.42 48.32 16.84 32.36 .. 9.53 10.89 34.25 17.32 36.82 36.42 66.42 29.53 29.10 .. 10.39 6.93 26.30 16.21 61.93 46.16 115.74 28.99 25.65 21.34 25.07 15.13 41.29 30.34 66.23 42.27 117.64 28.54 27.48 21.86 24.74 14.65 45.24 29.95 77.85 43.01 116.98 31.13 29.85 22.67 .. 12.85 47.56 31.31 79.95 45.60 112.00 .. 30.29 21.95 Ext ernal debt as % o f G DP 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey .. .. .. .. .. .. .. .. .. .. 23.00 27.83 49.51 90.63 .. .. 26.17 .. .. 18.62 48.74 37.02 86.40 132.47 71.37 .. 55.71 .. .. 45.38 48.50 29.25 43.49 37.81 64.48 .. 62.12 .. 18.88 47.37 75.35 22.14 41.89 33.64 63.58 .. 39.86 .. 13.12 46.66 58.56 18.70 37.95 27.36 102.73 .. 35.95 .. 14.23 51.66 .. .. .. .. .. .. .. .. .. .. 6 Figure 3: Average Purchasing Income and Capital Stock G DP per capit a P P 20 0 5 int . C o nst ant do llars 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8515.20 7582.55 5951.50 3118.71 12670.40 9315.96 5988.96 13821.87 7967.55 7114.04 10973.60 7814.53 10359.23 3876.90 12351.81 14953.66 9426.33 18523.15 7354.47 8897.31 10814.96 8473.78 12173.31 4574.05 17014.21 21273.26 11678.24 19956.23 8477.63 10370.18 11614.51 8673.13 12595.53 4800.33 17701.37 22308.15 12149.05 20151.48 8806.65 10946.82 12502.30 9034.19 13108.17 5052.02 17959.64 23363.29 12630.76 20487.76 9191.38 11292.97 G ro ss C apit al Fo rmat io n as % o f G DP 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey 21.69 18.92 18.99 12.63 30.92 26.99 18.27 .. 24.89 .. 27.80 22.97 21.03 31.66 41.31 33.08 24.02 30.20 25.14 .. 18.64 22.72 22.69 34.92 25.32 31.38 23.54 28.72 19.88 .. 19.93 17.03 26.90 21.50 28.85 25.00 26.68 27.29 17.00 22.11 21.46 16.00 22.50 17.98 25.42 30.06 20.27 22.45 18.18 19.99 23.50 16.77 20.30 18.73 24.98 29.85 20.70 22.01 20.46 22.05 .. 22.10 20.55 21.92 22.30 29.37 23.12 .. 20.07 22.17 7 Figure 4: Saving and Corporate Tax Rates G ro ss Do mest ic Savings as % o f G DP 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey 22.77 18.31 19.82 8.82 30.14 13.97 21.51 .. 28.00 .. 30.69 21.78 17.69 16.39 32.19 29.35 29.46 20.26 31.86 .. 21.96 27.91 29.69 17.08 28.00 38.52 33.75 20.70 26.37 .. 17.39 15.03 23.63 12.00 27.42 37.87 48.67 18.36 18.14 23.27 27.34 19.59 31.08 15.71 24.33 32.42 37.91 13.84 17.28 16.49 29.05 19.70 34.81 17.11 25.57 30.77 37.68 14.23 17.05 17.14 .. 24.29 .. 14.03 24.56 30.20 37.12 .. 16.37 17.13 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 33.00 15.00 15.00 40.00 18.00 28.00 28.00 37.00 35.00 25.00 .. .. .. .. .. .. .. .. .. .. 35.00 15.00 .. .. 16.00 13.00 28.00 25.00 29.00 30.00 35.00 15.00 35.00 20.00 16.00 13.00 27.00 .. 28.00 20.00 8 Figure 5: SPopulation Growth and Female Labor Force Participation P o pulat io n gro wt h annual % 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey 1.41 2.57 2.01 2.14 0.39 2.24 2.63 0.13 2.13 2.51 1.49 2.35 1.37 2.15 0.34 1.52 2.28 1.08 2.11 2.00 1.45 1.88 1.69 2.31 -0.42 0.96 2.93 -0.26 2.39 2.17 1.15 1.50 1.35 1.85 -0.23 0.72 2.49 0.40 2.35 1.77 0.97 1.35 1.06 1.80 -0.20 0.44 1.82 0.45 1.17 1.28 0.99 1.33 0.84 1.79 -0.16 0.26 1.78 0.33 1.06 1.25 0.94 1.20 0.98 1.74 -0.16 0.23 1.66 0.23 0.41 1.24 Female Labo rf o rce part icipat io n rat e 1968 1978 1988 1998 20 0 5 20 0 6 20 0 7 Argentina Brazil Chile Egypt, Arab Rep. Hungary Korea, Rep. Malaysia Portugal South Africa Turkey .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 40.80 46.70 34.50 29.00 57.60 47.90 43.80 57.80 58.20 36.10 51.10 57.20 40.30 20.30 50.60 50.50 44.30 62.30 52.30 30.70 61.10 61.00 40.90 21.60 53.50 54.20 48.00 67.80 49.50 28.90 62.20 61.50 41.30 21.60 53.70 54.30 48.50 68.50 49.30 28.80 .. .. .. .. .. .. .. .. .. .. 9 0.1 Millenium Goals Targets a. Reduce by half the population living on less than 1 dollar a day b. Reduce by half the proportion of people who suffer from hunger a. Ensure all children complete a full course of primary schooling a. Eliminate gender disparity in primary and secondary educaiton preferably by 2005 and at all levels by 2015 a. Reduce by two-thirds the mortality rate among children under 5 a. Reduce by three-quarters the maternal mortality ratio a. Halt and begin to reverse the spread of HIV-AIDS b. Halt and begin to reverse the incidence of malaria and other diseases a. Integrate the principles of sustainable development into country policies and programs; reverse loss of environmental resources b. Reduce by half the proportion of people without access to safe drinking water c. Achieve significant improvement in lives of at least 100 million slum dwellers by 2020 a. Develop further an open, rule-based, predictable, non-discimantory trading and financial system; includes a commitment to good governance, development and poverty reduction. b. Address the special needs of the least developed countries; includes tariff and quota free access for least developed countries' exports; enhanced program of debt relief for heavily indebted poor countries (HIPCs) and cancelation of official bilateral debt; and more generous official development assistance (ODA) for countries committed to poverty reduction c. Address the speacial needs of landlocked countries and small island developing states d. Deal comprehensively with the debt problem of the developing countries through national and international measures in order to Goals 1. Eradicate Extreme Poverty and hunger 2. Achieve Universal Primary Education 3. Promote Gender Equality and Empower Women ` 4. Reduce Child Mortality 5. Improve Maternal Health ` 6. Combat HIV, AIDS, malaria and other diseases ` 7. Ensure Environmental Sustainability ` 8. Develop a global partnership for development 10 Which targets are quantifiable? How did countries fare to achieve the goals so far? 11 ...
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This note was uploaded on 08/06/2009 for the course ECONOMICS ECON426 taught by Professor Alperduman during the Spring '09 term at Izmir University of Economics.

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