This chapter examines development policy objectives and their explicit focus on poverty reduction. It first considers different definitions of development policy objectives before discussing the roles that the market mechanism and the state should play in allocating society’s productive resources. In particular, it looks at the economic role of the state as one of the central issues dividing opinion on development strategy and explains how rising inequality led to a backlash against economic liberalization. The chapter proceeds by exploring the relationship between economic growth and poverty reduction, along with the political difficulties that arise from economic reform. It also analyses the importance of transforming the structure of economies and the new global development landscape, including changes in development finance.
17. Democratisation, Governance, and Development
David Potter, Alan Thomas, and María del Pilar López-Uribe
This chapter investigates the concepts of liberal democracy, democratization, and governance and how they relate to development. There are several critiques of liberal democracy, which mostly correspond to well-known problems for any political regime. They include the 'tyranny of the majority', élite capture, clientelism, and the threat of populist capture. Alternative models claimed by their proponents to be democratic include illiberal democracy, direct democracy, and democratic centralism. Especially for proponents of market economy, liberal democracy and economic development are seen as complementary aspects of modern society. However, it is not clear that democratization leads to development. Successful development requires a supportive institutional environment. This may occur in a liberal democracy but it is not democracy itself that matters but 'something else' — which may be called 'quality of governance', including impartiality and effectiveness.
10. Economic Drivers of Democracy
This chapter addresses the relationship between economic factors and democracy. It begins with a discussion of modernization theory and highlights the disagreement about whether wealth causes democracy or simply makes it more likely to endure. Despite this dispute, most scholars agree that development is good for democracy. The chapter then examines the pathways through which economic development affects democracy, including via education levels, the middle class, organized labour, and values and beliefs. In addition to levels of development, research also shows that changes in economic growth influence democracy. Economic crises can be destabilizing, especially for young democracies. Finally, the chapter considers research on economic inequality and democracy, which is inconclusive in its findings about whether a relationship between the two exists. It also studies how clientelism constitutes significant barriers to democratic consolidation.
Consolidating Democracy and Human Rights
This chapter examines the consolidation of democracy and human rights in Nigeria. With regard to the relationship between development and human rights, Nigeria presents an interesting puzzle. It is rich in oil, but has not been able to translate its immense natural resources into sustainable economic development and respect for human rights. Ethnic and religious tensions, a result of colonialism, have been exacerbated by disastrous economic development, which has in turn led to a deteriorating human rights situation and intense violence. The chapter first considers the political economy of Nigerian oil before discussing the country’s political and economic development, with particular emphasis on critical aspects of human security and civil society. It concludes with an assessment of the progress that has been made as well as ongoing development challenges Nigeria faces.
21. The United Nations
Devon E. A. Curtis and Paul Taylor
This chapter examines the development of the United Nations and the changes and challenges that it has faced since it was founded in 1945. It opens with three framing questions: Does the UN succeed in reconciling traditions of great power politics and traditions of universalism? Why has the UN become more involved in matters within states and what are the limits to this involvement? What are the UN's biggest successes and challenges in its efforts to prevent and resolve conflict and to promote sustainable development? The chapter proceeds by providing a brief history of the UN and its principal organs. It also considers the UN's role in the maintenance of international peace and security, and how the UN addresses issues relating to economic and social development. Two case studies are presented: the first is about the role of the UN in dealing with conflict in Syria and the second is about UN peacekeeping in the Congo.
21. The United Nations
Devon E. A. Curtis and Paul Taylor
This chapter examines the development of the United Nations and the changes and challenges that it has faced since it was founded in 1945. It opens with three framing questions: Does the UN succeed in reconciling traditions of great power politics and traditions of universalism? Why has the UN become more involved in matters within states and what are the limits to this involvement? What are the UN's biggest successes and challenges in its efforts to prevent and resolve conflict and to promote sustainable development? The chapter proceeds by providing a brief history of the UN and its principal organs. It also considers the UN's role in the maintenance of international peace and security, and how the UN addresses issues relating to economic and social development. Two case studies are presented: the first is about UN peacekeeping in the Congo and the second is about the 2003 intervention in Iraq.
26. Returning to the ‘Great Transformation’
This chapter recounts how Karl Polanyi developed an explanation for the rise of fascism and for the world crisis of the mid-twentieth century. In doing so, he elaborated a profound critique of the kind of thinking about economic development — described as 'market fundamentalism' and commonly referred to as neoliberalism. In the early twenty-first century, neoliberal economic policies, together with the implications of rapid technological change, have caused a crisis, comparable with that analysed by Polanyi, in which social, environmental, and financial problems are interwoven, and to which the rise of authoritarian populism is one response. The Covid-19 outbreak has further exposed the unsustainability of the global system of market fundamentalism and may point to another 'great transformation'. It is possible that a combination of worldwide movements against inequality and environmental degradation with local struggles for citizenship, economic and social rights, and environmental justice among the masses in major 'emerging economies', such as India, can provide a platform for a social democratic alternative.
18. The Europeanization of National Economies?
Vivien A. Schmidt
This chapter examines the impact of Europeanization upon the national economies of European Union member states. It considers how successful the EU has been in promoting its goal of building a single European economy out of the diverse national economies of its member states; how much convergence has occurred among EU member states, and how much divergence remains; and what impact the economic crisis beginning in 2008 has had on the EU and its member states. To answer these questions, the chapter traces the development of Europe’s national economies from the post-war period until today. It also analyses the impact of globalization and Europeanization on post-war varieties of capitalism before concluding with reflections on future patterns of political economic development in the EU in light of the economic crisis.
This chapter examines how developing countries are managing the relationship between the environment and development. Despite being widely regarded as a threat to their economic development and prospects for growth, environmental issues have come to occupy a central place on policy agendas throughout the developing world. Driven by donors, public concern, and vocal environmental movements, responses to these environmental issues have taken a number of different forms as they compete for ‘policy space’ with other pressing development concerns. The chapter links global agendas to national policy processes, highlighting differences and similarities between how countries respond to various environmental issues. It also considers patterns of continuity and change in the politics of environment in the developing world, along with new policy instruments for environmental protection. It concludes by reflecting on the likely future of environmental policy in the developing world.
A Failing State?
Nadje Al-Ali and Nicola Pratt
This chapter examines whether Iraq is a failed state and how it drew such characterization. It focuses on the period since the U.S.-led invasion of Iraq in 2003 that toppled Saddam Hussein. The chapter considers three areas: the reconstruction of Iraq’s political institutions; post-invasion violence and security; and human and economic development. It shows how the failure to reconstruct political institutions capable of reconciling Iraq’s different political groupings has weakened central government, exacerbated corruption within state institutions, and contributed to ethnic/sectarian violence, thereby creating a favourable environment for the emergence of the Islamic State. The chapter argues that the Iraqi state is failing to provide necessary services and infrastructure for economic and human development and even basic security for much of the population.
19. Globalization, Development, and Security
Nana K. Poku and Jacqueline Therkelsen
This chapter proposes that globalization is a neoliberal ideology for development, consolidated and promoted by key international financial institutions (the World Bank and the International Monetary Fund), which deepens inequality between and within nations on a global scale, resulting in increased global insecurity through a growing sense of injustice and grievance that may lead to rebellion and radicalization. It is argued that, ultimately, the globalization ideology for development services the interest of its advocates, the elites of the core capitalist economies that dominate the international financial institutions, at the expense and immiseration of the majority of people in developing economies and the weaker segments of their own societies. The chapter is set out in three stages: first, it presents the case for conceptualizing globalization as a neoliberal ideology for development; second, it provides evidence to demonstrate the harmful effects of the ideology on societies, particularly across the developing world; and third, it explores the connection between uneven globalization and global insecurity through two case studies: the uprising in Egypt in 2011, and the collapse of the Greek economy in 2010.
7. Poverty and Education
This chapter addresses the relationship between education and poverty. Education has become a central development plank for the World Bank and other multilateral organizations, partly because of the connection between education, development, and the reduction of poverty. Such organizations continue to sponsor and spearhead different programmes geared towards enhanced educational access and engagement (particular at primary school levels). Owing to such programmes, greater numbers of children have access to schooling across the globe, impacting on poverty levels. However, the benefits and opportunities purportedly associated with education are not accessible to those groups which are governed by their structural positions within systems of social and economic inequality. The promised education-related returns are not always forthcoming, particularly for those lacking important forms of social capital.
9. Population, Poverty, and Development
Valeria Cetorelli and Alan Thomas
This chapter explores the relationship between population growth and poverty. There are differing views as to whether rapid population growth hinders economic growth and poverty reduction and whether there is a limit to the number of people the Earth can sustain. The 'revisionist' view is that on the contrary 'development is the best contraceptive' and it is poverty that keeps fertility high, while economic growth is not necessarily inhibited by rapid population growth. In this view, family planning is not an overriding priority but forms part of a rights-based agenda for providing access to reproductive health. The new consensus amongst analysts accepts that access to reproductive health, together with women's education and general improvements in health and living standards, remains the best route to lower fertility.
24. South Korea
Strong State, Successful Development
This chapter examines South Korea’s developmental state emerging from an authoritarian political base, toward its democratic openings in the 1990s. In 1945, the Korean peninsula was freed from Japanese colonial rule by the United States and the Soviet Union. It was divided into two states: communist North Korea and capitalist South Korea. Since then, South Korea has emerged as one of the success stories of economic development, with the state itself playing a major role. The chapter first considers the historical sources of South Korea’s national strength before discussing the Korean developmental state, focusing on dictatorship and national restoration. It then explores South Korea’s development policies and its transition to democracy, noting the persistence of corruption in the country despite democratic consolidation. It concludes with an assessment of the problems and challenges facing South Korea after achieving economic development over the past sixty years.
15. Democracies, Democratization, and Authoritarian Regimes
This chapter focuses on democracies, democratization, and authoritarian regimes. It first considers the two main approaches to analysing the global rise of democracy over the last thirty years: first, long-term trends of modernization, and more specifically economic development, that create preconditions for democracy and opportunities for democratic entrepreneurs; and second, the sequences of more short-term events and actions of key actors at moments of national crisis that have precipitated a democratic transition — also known as ‘transitology’. The chapter proceeds by discussing the different types of democracy and the strategies used to measure democracy. It also reviews the more recent literature on authoritarian systems and why they persist. Finally, it examines the challenges that confront democracy in the face of authoritarian revival.
5. The Consequences of Democracy and Authoritarian Regimes
This chapter reviews the latest research showing how regime type affects a host of outcomes of interest. It explains why democratic decline matters, examining the effects of democracy on a state's conflict propensity, levels of terrorism, economic growth, human development, corruption, and human rights. The chapter then highlights two key takeaways from the research on the consequences of regime type. First, hybrid regimes, or those countries that sit in the middle of the autocracy–democracy spectrum, perform less well than either their fully democratic or fully authoritarian counterparts in a number of areas. Second, research suggests that democracies outperform dictatorship on almost every indicator examined. Ultimately, the academic record demonstrates that even after one sets democracy's intrinsic value aside, government is better when it is more democratic. Although democratic decision-making can be slower, this process is more likely to weigh risks, thereby avoiding volatile and ruinous policies.
15. Democracies, Democratization, and Authoritarian Regimes
This chapter focuses on democracies, democratization, and authoritarian regimes. It first considers the two main approaches to analysing the global rise of democracy over the last thirty years: first, long-term trends of modernization, and more specifically economic development, which create preconditions for democracy and opportunities for democratic entrepreneurs; and second, the sequences of more short-term events and actions of key actors at moments of national crisis that have precipitated a democratic transition—also known as ‘transitology’. The chapter proceeds by discussing the different types of democracy and the strategies used to measure democracy. It also reviews the more recent literature on authoritarian systems and why they persist. Finally, it examines the challenges that confront democracy in the face of authoritarian revival.
14. The Political Economy of the Environment
This chapter assesses the global political economy of the environment. The growth of the world economy is transforming the Earth's environment. Nothing is particularly controversial about this statement. Yet, sharp disagreements arise over the nature of this transformation. Is the globalization of capitalism a force of progress and environmental solutions? Or is it a cause of the current global environmental crisis? The chapter addresses these questions by examining the debates around some of the most contentious issues at the core of economic globalization and the environment: economic growth, production, and consumption; trade; and transnational investment. It begins with a glance at the general arguments about how the global political economy affects the global environment. The chapter then traces the history of global environmentalism — in particular, the emergence of international environmental institutions with the norm of sustainable development. It also evaluates the effectiveness of North–South environmental financing and international environmental regimes.
27. Global trade and global finance
This chapter explores important issues in the conduct of global trade and global finance. It asks why the global economy is so good at allowing some people to own untold riches while many others have too little money to meet basic subsistence needs, and whether the world would be better or worse off without the institutions of global economic governance. After discussing the globalization of trade and finance, the chapter considers the regulation of global trade and global finance. Two case studies are presented, one dealing with the ongoing trade war between the US and China and the other with the effect of tax havens on overseas aid budgets. There is also an Opposing Opinions box that addresses the question of how far the institutions of global economic governance currently go to work specifically to the benefit of developing countries.
25. Climate Change and the End of Development
Dina Abbott, Gordon Wilson, and Alan Thomas
This chapter studies how the debate on climate change has evolved and how development relates to climate change. Climate change relates to development in two main ways. First, economic development is likely to exacerbate future climate change. Second, climate change as it occurs impacts on development, often negatively. The different ways in which climate change relates to development lead to different types of intervention. Climate change mitigation policies are designed to limit future climate change or reduce its impact but may themselves curtail development options. Climate change adaptation policies attempt to work with climate change and achieve development in spite of its impacts. There are also policies to cope with 'loss and damage', i.e. extreme, often irreversible, impacts which are too severe for adaptation. Lived experiences of climate change and of the effects of mitigation and adaptation policies demonstrate how their impacts result from the interaction of physical effects with existing social and power relationships, including those of gender.