POLI 12: International Relations

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1 POLI 12: International Relations

2 Jeffry A. Frieden David A. Lake Kenneth A. Schultz World Politics Interests, Interactions, Institutions THIRD EDITION Chapter 10 Development: Causes of the Wealth and Poverty of Nations 2016 W. W. Norton & Company, Inc.

3 DEVELOPMENT: 10! CAUSES OF THE WEALTH AND POVERTY OF NATIONS

4 Development and Poverty 1. Development: Causes, Constraints 2. Lack of Economic Development 3. Factors Contributing to Inequality 4. Development Models

5 Development and Poverty 1. Development: Causes, Constraints 2. Lack of Economic Development 3. Factors Contributing to Inequality 4. Development Models

6 Development and Poverty Everyone prefers more development to less. Actors may disagree on policies. Powerful groups within countries may thwart development. Domestic institutions can either promote or slow development.

7 Development and Poverty Internationally, rich and poor have a common interest in development. Rich want markets to buy their goods. Poor want more and better opportunities. Rich countries may support policies that hurt the poor countries.

8 Development and Poverty

9 Development and Poverty

10 Development and Poverty 1. Development: Causes, Constraints 2. Lack of Economic Development 3. Factors Contributing to Inequality 4. Development Models

11 Lack of Economic Development Less material wealth Less equitable distribution Lack of domestic investment

12 Lack of Economic Development

13 Development and Poverty 1. Development: Causes, Constraints 2. Lack of Economic Development 3. Factors Contributing to Inequality 4. Development Models

14 Factors Contributing to Inequality Geography and history Government policies International factors

15 Factors Contributing to Inequality Geography and history Government policies International factors

16 Factors Contributing to Inequality

17 Factors Contributing to Inequality

18 Factors Contributing to Inequality Geography and history Government policies International factors

19 Factors Contributing to Inequality Government policies: Infrastructure Rule of law

20 Factors Contributing to Inequality Government policies: Zambia and Botswana Burma (Myanmar) and Thailand

21 Factors Contributing to Inequality Geography and history Government policies International factors

22 Factors Contributing to Inequality International factors: Terms of Trade

23 Factors Contributing to Inequality International factors: Who makes the rules?

24 Development and Poverty 1. Development: Causes, Constraints 2. Lack of Economic Development 3. Factors Contributing to Inequality 4. Development Models

25 Development Models Import-substituting industrialization (ISI) Latin America and India

26 Development Models Import-substituting industrialization (ISI) Winners and losers

27 Development Models Export-oriented industrialization (EOI) Korea, Taiwan, Singapore, and Hong Kong

28 Development Models

29 Development Models Export-oriented industrialization (EOI) Winners and losers

30 Development Models The Washington Consensus Much of Latin America, 1980s 2000s

31 Development Models The Washington Consensus Winners and losers

32 Development Models A new model? State capitalism China and Russia

33 Development Models

34 Summing Up While everyone prefers development, powerful groups can block it. Domestic institutions play an important role they may promote or hinder development. Rich countries adopt policies that hurt the poor.

35 Summing Up Successful development requires a country to overcome both internal and external obstacles.

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