by Sheri Fresonke Harper



I.          Overview of the Development Chapter of Real World Globalization


The major theme of the Real World Globalization Chapter on Development is that global poverty affects billions of people around the world and that something should be done. They complain that neoliberal trade policies were not helping the situation at all, especially if they “encourage government cutbacks and privatization” as noted by one author on the subject of reducing infant mortality [2, p. 205].

In terms of an International Political Economy model, the Development Chapter of Real World Globalization shows limited coverage of the full scope of an ideal state, international organization activity, regional development or any complete part i.e. its governance (see charts and notes below), economy, security and finances, or the information and technology used by the state, or even the effect on an ideal citizen. As such, although individual pieces or even thoughts might encourage a reader to think about the issues, they don’t shed much light.

The authors of the articles are mostly professors from US colleges, with a few having influential positions in organizations dealing with economics and political science.

II.         How the Chapter Articles Map against the United Nation’s Millennium Development Goals

One specific target all of the essays address is how a state meets the Millennium Development Goals established in 2000 by the United Nations.

Millennium Goal[12, p. 210-11]                                                         Article

1 Eradicate extreme poverty by ½ and who suffer from hunger            [3][4][5][6][7][8][9][10]

2 Universal primary education for boys and girls                                [1][3][4][7][9]

3 Promote gender equality for women                                               [4]

4 Reduction of child mortality rate                                                    [1][2]

5 Improve maternal health care                                                        [2][3][7][10]*

6 Combat AIDS and infection diseases                                            [2][3][7][10]*

7 Focus on sustainable development                                               [1]

8 Build global partnership for development                                        **

The good news about the UN’s Millennium Goals is that the writers are paying attention and thinking about the issues. Sadly, the two goals that one would expect to be in a chapter about development, i.e. the focus on sustainable development and the building global partnerships for development are not included, and in fact are addressed mostly by the complaint that neoliberalization policies are not helping. Nor do they express a preference for export driven development or import-substitution development [11, 316].

Notes:

*           Most refer to the health care system but don’t do any coherent analysis of how the article connects to the health care system

**         Nothing was mentioned except “common knowledge” neoliberal policies without stating which ones.
III.        How the Chapter Articles Map Against Theoretical and Critical Views and an Economic Model of Transactions

An International Political Economy model is often viewed from a number of critical viewpoints. In reading the essays it is helpful to know which articles take advantage of each. It is important to take a hard look at exactly what critical viewpoints are tested in an article especially since the use of critical models arose in additive fashion over time, with criticism focusing on those parts of an overall economic model that were missing in other viewpoints with any one model lacking all the transactional analysis methods.

Critical Viewpoint/or               Transactional Analysis                                    Article Pro(+) or Con(-) or 
General Historic Period                                                                                                          Not Addressed                                                                     

Mercantilist                                                                     
  •                                       Government savings[11, p. 22]                                            NA
  •                                       Government taxing of imports and exports[11, p. 23],    

                                              subsidies on export [11, p. 25]                                             [1]
  •                                       Security of transported trade and state borders [11, p. 22]      NA
  •                                       Land use, resource use[11, p.24]                                                                                                                           and ownership by elite, tenant                                             [1][9][10]
  •                                       Investment of Capital by Elite or Government?                        [3]
  •                                       Improvements in production technology [11, p. 24]                  [3]
  •                                       Colonial Charter granting land[11, p. 23]                                 [1]
  •                                       Taxation of labor                                                                   [1]
  •                                       Taxation of sales                                                                  NA
  •                                       Governance [11, p. 22]                                                          NA
  •                                       Subsidies on products[11, p.23]                                             [5-][6-+]
  •                                       Taxation on Transport                                                            NA
  •                                       State ownership of production??                                             NA
  •                                       Standard Money                                                                   NA
  •                                       Commodity market                                                               NA

Economic Nationalist

  •                                        Improvements in transport, production technology  
                                               (National and Elite Capitalized?)                                            NA
  •                                        Trade protection (subsidies) for infant industries[11, p.24]       [8+]
  •                                        Trade education [11, p. 25]                                                    +
  •                                        Nationalism provides “catch up” motivation [11, p. 25]             NA
  •                                        Seek foreign markets for products [11, p.26]                          NA but why not?
  •                                        Elite ownership of production [11, p. 39]                                NA
  •                                        State bank [11, p. 39]                                                          NA
  •                                        Ownership protection of production via license, 
                                                exclusive franchise, tariff [11, p. 41]                                      NA
  •                                        Gold Standard Money                                                          NA
  •                                        Stock market … government war bonds                                 NA

Liberal

  •                                         International investment by IMF, World Bank                         [1][2][3][4][5][6][7][8][9][10]                                                                                                                                   All negative about rules but                                                                                                                                   positive about the money.
  •                                        Social programs funded by government [p.37]                       [10]
  •                                        Private ownership of land[p.11, 38]                                       [9][10]
  •                                       Limited government subsidies, export taxes               
                                               and import tariffs [p. 11, 38]                                                 [1-][2-][3-][4-][5-][6-][7-]
  •                                       Dollar Standard Money                                                        NA
  •                                       Minimized government interference with the market
                                               i.e. remove tariffs                                                                [1-][2-][3-][4-][5-][6-][7-]

Marxist

  •                                       State production and planning of production [11, p.]                NA
  •                                       State ownership of land                                                        [8-]
  •                                       Core-periphery                                                                     [1+]
  •                                       Dependency Theory                                                             [9][5][6]]

Neoliberal

  •                                       Multinational organization production                                      NA
  •                                       Multinational organization sales                                             [1-10-]
  •                                       Free Float Money                                                                 NA
  •                                       Most favored nation reduction of tariffs                                    NA

Feminist

  •                                       Improving Women’s Opportunities                                         [4]


Rational Choice
  •                                      Rent seeking                                                                      NA
  •                                      Public choice                                                                      [9]

IV.        How the Chapter Articles Map to the Pillars of International Economy[11, p.17, diagram from 13, p. ]
Notes on the Mapping of the Articles to the Pillars of International Political Economy

The discussions are very light in terms of coverage of the entire model. Missing from International Governance is any discussion of NGOs, MNCs, or Regional Governing Bodies and most bodies of the United Nations except the IMF and World Bank. Missing from the discussion in most articles is any discussion on how information and technology could be used to address development in the article except for the issue of copyrights at the WTO. Missing from State Governance is any discussion of the role of leaders and the allocation of state money to produce services for the populace, except as it applies to land ownership and Bolsa Famillia. Missing from most articles is any discussion of the role of the state’s internal and external security. The economy is dealt with very lightly, skipping over most transactions and focusing on just a few. Missing from the Finances section is any connection from the use of finances via specific programs except in the area of loans and to who receives the money in what form and how they are put to use except in the article on microcredit[3] nor is the role of currency mentioned.

V.         How the Chapter Articles Map to the Study of a State, Region or the World

In terms of geography, the Development chapter devotes itself primarily to development of the less developed countries, many in South America, Sub Saharan Africa, and Southeast Asia, although it includes some of the newly developed countries like Brazil, China, India, Thailand, and Malaysia, but all mostly in the South. The North’s global powers are mostly viewed through the lens of the IMF and World Bank and their policies and occasionally the United Nations or the World Trade Organization.

          Article Title                                                                                              Countries Considered

1        “World History and Economic Development”                      China, Japan, West
2        Is Decreasing Infant Mortality Due to Neoliberal Policies”  Chile, Cuba, South Korea, Sub Saharan Africa, US, Japan
3        “Measures of Global Poverty”                                            China, India
4        “Microcredit and Women’s Poverty”                                   Bangladesh
5        “Fair Trade and Farm Subsidies”                                       Central and West Africa, Mexico
6        “False Promises on Trade”                                               Brazil, Nicaragua, Argentina, India, China, Mexico
7       “Inequality Worsens Across Asia, Wall Street                    China, Pakistan, Bangladesh, India, Indonesia, Lao PDR,            Journal Cheers ”                                                              Philippines, Cambodia, Sri Lanka, Viet Nam, Nepal
                                                                                               Nepal, Malaysia, Kazakstan, Azerbaijan, Tajikistan, Rep.                                                                                                of Korea, Armenia, Turkmenistan, Kyrgyz Republic
8        “How to Make Mud Cookies”                                            Haiti, US, Canada, Asia
9        “Reforming Land Reform”                                                 Nepal, Bangladesh, Indonesia, Madagascar, Japan
10       “Land Reform Under Lula, One Step Forward                    Brazil
           One Step Back”
Notes on the Mapping of the Articles to the Referenced States, Regions and World

For a good understanding of who is doing what, it helps to be clear and concrete. Many times “the Developed World” or the “West” is compared against a single state, and occasionally a few states without a complete comparison to the region, or a mish mash of countries used to try to paint a region with similar issues.

VI.        Discussion of Each Article in the Chapter

VI.1.     Capitalist Development Requires a Colony in “World History and Economic Development”

In “World History and Economic Development” the examination of China’s development compared to the Western world’s development, especially societal use of Malthus’ food, fiber, fuel and building materials [1, p.196] is evaluated. The major idea is that in the comparative examination of economic and social behavior of countries that developed in a dissimilar fashion, lessons could be learned and potentially applied to how a less developed state’s economy could be developed.

The important factors identified as dissimilar include fuel prices, ecology, reproductive rates and the availability of a hinterland or periphery. The authors contend that “High fuel prices matter” [1, p.197], since it determines whether or not a society will replace man power with machine fueled power and is directly a result of transportation costs. Colonial development also matters since it provides a special form of economic partnership where imports into the colony can aid development while exported resources help in the production of the home economy [1, p.200]. Reproduction rates were important since the rural based homes had higher reproductive rates than did urban laborers i.e. the “poorest men never married” [1, p.197], perhaps the main motivation behind the “industrious revolution”.

The main problem presented is that a core economy requires a periphery economy that supplies resources to fuel the means of production into large scale industrialization and development. One solution offered to the “horrific social costs” of development caused by the migration of rural workers into urban areas where their rights are questionable and they have difficulty supporting themselves is the “slower more labor than resource dependent East Asian” path to development. 

Key Concepts: Core-periphery economy, industrious revolution, population pressure, proletarian zed, colonial

VI.2.     IMF and World Bank Trade Policies Don’t Aid Millennium Goals in “Is Decreasing Infant Mortality Due to Neoliberal Policies”

How to accomplish the human security development goal of reducing infant mortality is raised in “Is Decreasing Infant Mortality Due to Neoliberal Policies”. The article finds that the IMF and World Bank neoliberal trade policy implemented in the past twenty years didn’t coincide with statistical changes in infant mortality in the examined state’s Millennium Goal reports. At one point the author suggests the possibility that social services, particularly neonatal and prenatal care were more likely to have reduced infant mortality than free trade policies, at least for Chile [2, p.204].

Key Concepts: Neonatal care, prenatal care, economic stagnation

VI.3.     Poverty Not Reduced in “Measures of Global Poverty”

The difficulty of defining a measure of global poverty i.e. a monetary amount regarded as essential to providing the “food, clothing, shelter and anything else people change” [3. p. 208] is discussed in “Measures of Global Poverty”. The underlying problem examined is poverty with issues related to social status, buying power, and education identified. The premise “are neoliberal trade policies aiding the reduction of global poverty?” is raised, with statistics presented showing little change in poverty levels. Article 7 implies that people are buying, even impoverished, so how to incorporate them into a monetary society might be the true question about development in these states. I thought the explanations for the problems with a definition for poverty were well-explained.

Key Concepts: Poverty measurement, extreme poverty, distribution of income

VI.4.     Status of Women in “Microcredit and Women’s Poverty” Not Improved

Microcredit and Women’s Poverty examines the Grameen Bank system of offering impoverished woman loan’s for under $100 to start small businesses and its affect on poverty and the global economic system. The problem of interest rates on debt being much higher for person’s of reduced circumstances. The method the Grameen Bank uses to insure repayment is made is to use peer pressure (and maybe group help) since other women in the “loan circle” of women won’t receive loans if one fails to pay. The main problem that is targeted is poverty, especially for women, and the article talks about their difficulty in getting education, hours worked, and their role in the community. I don’t necessarily agree with the conclusion.

Key Concepts: Grameem Bank, loan circle, microcredit

VI.5.     Debt Burden Remains despite “Fair Trade and Farm Subsidies”

Despite the promise of neoliberal free trade policies improving the amount of trade, for undeveloped countries, debt still remain and direct foreign investment is minimal due to the economic downturn. The less developed states would like the US farm subsidies removed because it prevents them from taking any advantage of their exports due to price drops. US Farm subsidies for cotton are found to be especially troublesome for Central and West Africa and for corn, Mexico.  

An alternate view would say that the World Trade Organization was the exact place for these countries to discuss their loss due to unfair agriculture subsidies in the US.

Key Concepts: Free trade, subsidy, tariff, dumping, consumer cost

VI.6.     Farm Subsidies Importance in World Trade Misleading in “False Promises on Trade”

US subsidies to farmers is a misleading side track at the WTO Doha Round compared to issues such as the IMF playing the role of a creditor’s cartel, i.e. keeping loans away from states that don’t accept free trade policies and the copyright protections for drugs, recordings and computer software, all of which impact developing countries fighting rising cultivation costs. The authors suggest that allowing developing countries to protect their exports while the developed world reduced their farm subsidies would probably help the developing world from falling deeper into debt would allow the talks to go forward.

The article lacked clarity i.e. it started from one slant and switched mid article.

Key Concepts: Subsidy, creditor’s cartel

VI.7.     GINI Coefficients Show Faster Development of Free Trade Increases Distribution Curve in “Inequality Worsens Across Asia, Wall Street Journal Cheers”

GINI coefficients for many Asian countries are used to show that inequality has increased with rapid trade development and that is primarily due to internal state policies about social programs such as education, land reform, worker wages i.e. the state’s cut these programs in order to speed development but the impoverished pay the price. The authors suggest don’t cut social programs to speed development as inequity can lead to instability.

I found the charts confusing with different data i.e. different countries [7, p. 222-5], data that was calculated but the calculation not explained clearly [7, p. 223], data that seemed meaningless mapped [7, 222] and missing information i.e. the middle income range on the low / high income chart [7, p.224]

Key Concepts: GINI, Asian Development Bank, redistribution

VI.8.     Free Trade Satire in “How to Make Mud Cookies”

How to Make Mud Cookies is a satire of how feeding the impoverished can be freely traded around the world. No solution is suggested except perhaps that a closer look is needed about what can be done to help the impoverished.

Key concept: satire

VI.9.     Elite Own the Land despite “Reforming Land Reform”

Ownership and land use management by the people for the people is proposed as a more workable solution for countries developing land reform policies in order to feed people and minimize ecological damage.  The article is written as if by an economic nationalist since the emphasis is on how wrong most of the policies proposed by the World Bank are for Nepal and how it is better to become self-sufficient than to seek better export profits by becoming monoculture via free trade. Although land law was mentioned, no explanation for how tough land laws get set up and managed was provided.

Key Concepts: Land reform, redistributive land reform, market-assisted land reform, community-based land reform, scientific land reform, land ceiling, monoculture, REDD

VI.10.   Development Policies in “Land Reform under Lula: One Step Forward One Step Back”

The Landless Worker’s Movement has received less than promised under Lula in Brazil and although they support Lula’s Bolsa Familla Program where each family is given $115 incentive to keep children in school, they are becoming increasingly insistent and political in order to obtain needed land. For me, this article lacked a key piece of information, how many people were homeless, landless, and in poverty in Brazil and a member of the Landless Worker’s Movement. Also lacking was what the International Conference for Agrarian Reform proposed, discussed or decided.

Key Concepts: Landless Worker’s Movement, agribusiness, Bolsa familla, ICARRD

VII.       My Assessment and Reaction to the Chapter on Development in “Real World Development”

I really enjoyed reading “How to Make Mud Cookies”, since it is a modern satire. The purpose of satire is to produce guilt, which this one does effectively, while making a mockery of what has been done to aid poverty in Haiti and the rest of the world which isn’t enough.  It’s nice to complain that life isn’t perfect. But political writers should not just paint the problems that exist.

I found that despite the criticism that the Grameen Bank didn’t pull impoverished women from their place in society, that it had the blessing of being a complete transaction where someone bought and sold and exchanged money. If a country is not growing enough to feed the population they won’t be exporting soon, unless they take the agribusiness route. If they have no jobs, the government should be looking at what products are being built in the bartering system and what they can do to bring that product to market or exchange that product for another the same people could make. Also, less developed countries should encourage interaction with NGOs as a way to have less debt and still improve their ability to reduce poverty[11, p. 322].
Bibliography

1.    Ravi Bhandari, Kenneth Pomeranz, “World History and Economic Development : Lessons from New Comparisons of Europe and East Asia”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

2.    Arthur MacEwan, “Is Decreasing Infant Mortality Due to Neoliberal Policies?”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

3.    Arthur MacEwan, “Measures of Global Poverty”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

4.    Susan F. Feiner, Drucilla K. Barker, “Microcredit and Women’s Poverty”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

5.    Gawain Kripke, “Fair Trade and Farm Subsidies”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

6.    Dean Baker, Mark Weisbrot, “False Promises on Trade”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

7.    John Miller, “Inequality Worsens Across Asia, Wall Street Journal Cheers”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

8.    Maurice Dufour, “How to Make Mud Cookies”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

9.    Ravi Bhandari, Alex Lindhorn, “Reforming Land Reform”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

10.  Chris Tilly, Marie Kennedy, Tarso Luis Ramos, “Land Reform Under Lula: One Step Forward One Step Back”, Real World Globalization, Economic Affairs Bureau Dollars & Sense, 2009, www.dollarsandsense.org

11.  David N. Balaam, Michael Veseth, International Political Economy, Pearson, 2008

12.  Kelly-Kate S. Pease, International Organizations, Pearson, 2010 {Note: This was for ease of research I could have used the UN web site}

13.  {The author of our text makes a big deal about the pillars of International Political Economy without defining it so I used this article because the pillars are readily visible}