POSC 2200 – POSC 2200 – International International Political EconomyPolitical Economy

Russell Alan WilliamsRussell Alan Williams

Department of Political ScienceDepartment of Political Science

Unit Six: Unit Six: International Political International Political EconomyEconomy

““Poverty, Development and Human SecurityPoverty, Development and Human Security””

Required Reading:Required Reading: Globalization of World PoliticsGlobalization of World Politics, , Chapters 28 and 29. Chapters 28 and 29. Bruce R. Scott, “The Great Divide in the Global Bruce R. Scott, “The Great Divide in the Global

Village,” Village,” Foreign AffairsForeign Affairs, Vol. 80, No. 1 (Jan. - Feb., , Vol. 80, No. 1 (Jan. - Feb., 2001), Pp. 160-177. 2001), Pp. 160-177.

Outline: Outline:

The The ““Development GapDevelopment Gap”” Obstacles to DevelopmentObstacles to Development Alternatives/Solutions?Alternatives/Solutions? ConclusionsConclusions

1) The 1) The ““Development GapDevelopment Gap””:: Major challenge in IPE?Major challenge in IPE?

Most states are Most states are ““developing countriesdeveloping countries”” ( (““LDCLDC’’ss””, the , the ““Third WorldThird World””))

However, little development occurring (!)However, little development occurring (!)

Key concern because:Key concern because: Interconnection of globalisationInterconnection of globalisation Power of developing countries in IGOPower of developing countries in IGO’’ss Morality – increasing recognition of Morality – increasing recognition of ““Human Human

SecuritySecurity””

““DevelopmentDevelopment”” – a – a ““contestedcontested”” concept? concept?

Traditionally associated with:Traditionally associated with:

Increases in:Increases in: Capital accumulation/savingsCapital accumulation/savings Per capita incomesPer capita incomes Skills and technologySkills and technology

Also:Also: Falling birthratesFalling birthrates Political and institutional reformsPolitical and institutional reforms

And perhaps also,And perhaps also, More even distribution of wealthMore even distribution of wealth

= Critical perspectives = Critical perspectives andand World Bank World Bank Key measures?Key measures?

GDP growth rates – GDP growth rates – ““traditionaltraditional”” focus focus Inequality – more Inequality – more ““criticalcritical”” focus focus

Measures – Growth Rate:Measures – Growth Rate: World average = approx + 3% per yearWorld average = approx + 3% per year

Less than this is not Less than this is not ““developmentdevelopment””??

Evidence?Evidence? 1970-2000 – Majority of LDC1970-2000 – Majority of LDC’’s less then 3%s less then 3% Exceptions?Exceptions?

East Asian East Asian ““NICNIC’’ss”” – – ““Four TigersFour Tigers””: : South Korea, Taiwan, Hong Kong and South Korea, Taiwan, Hong Kong and SingaporeSingapore

Since 2000 a significant portion of LDCSince 2000 a significant portion of LDC’’s s greater then 3%greater then 3%

E.g. China = more than 9% a yearE.g. China = more than 9% a year However . . . . However . . . . ““SouthSouth”” still falling further still falling further

behind (?)behind (?)

Measures – Inequality:Measures – Inequality:

“Gap Minder”

Trends?Trends? Average incomes going up . . . ?Average incomes going up . . . ?

However, gap between richest and poorest However, gap between richest and poorest segments of global population have often segments of global population have often gotten wider over last 30 years.gotten wider over last 30 years.

Implications for Implications for ““DevelopmentDevelopment””??

Political instabilityPolitical instability Economic problems cause political Economic problems cause political

problems?problems?

““Human securityHuman security””??

““Human SecurityHuman Security””: The security of people, including their : The security of people, including their physical, economic and social well being.physical, economic and social well being.

19901990’’s Traditional s Traditional ““SecuritySecurity”” ““Human SecurityHuman Security””=less focus on protecting states from foreign aggression, more focus on basic =less focus on protecting states from foreign aggression, more focus on basic

human needs – requires human needs – requires ““developmendevelopmentt””?????? First Supported by First Supported by ““United Nations Development ProgramUnited Nations Development Program (UNDP) (UNDP)””

““Human SecurityHuman Security”” is multifaceted: is multifaceted: Violence = citizens should be protected from physical violence of all Violence = citizens should be protected from physical violence of all

formsforms Economic = citizens' basic material needs must be metEconomic = citizens' basic material needs must be met Food and health = citizensFood and health = citizens’’ require access to sufficient nutrition and require access to sufficient nutrition and

health protection from preventable illnesseshealth protection from preventable illnesses Environment = citizensEnvironment = citizens’’ must have protection from environmental must have protection from environmental

harmsharms Community = citizensCommunity = citizens’’ right to have traditional values must be right to have traditional values must be

supportedsupported Political = citizensPolitical = citizens’’ basic basic ““human rightshuman rights”” and freedoms must be and freedoms must be

protected . . . And they are entitled to democracy(?)protected . . . And they are entitled to democracy(?)

Radical new way to see security! Very ambitious . . . .Radical new way to see security! Very ambitious . . . .

““Human SecurityHuman Security””: The security of people, including their : The security of people, including their physical, economic and social well being.physical, economic and social well being.

Ideas have led to increased interest in:Ideas have led to increased interest in: ““Humanitarian InterventionHumanitarian Intervention”” ““DevelopmentDevelopment”” and and ““Human DevelopmentHuman Development”” measures measures

However, However, ““Human SecurityHuman Security”” is seen differently . . . is seen differently . . .

Both are interconnected, but . . . they are not always addressed Both are interconnected, but . . . they are not always addressed that way . . . . that way . . . . ““DevelopmentDevelopment”” neglected(?) neglected(?)

LDC’s and NGO’s

“Freedom From Want”

Action: Address economic & development

problems

Developed Countries (Canada)

“Freedom From Fear”

Action: Stop violent conflicts (E.g. R2P)

2) Obstacles to Development:2) Obstacles to Development:

Optimism that Optimism that ““developmentdevelopment”” would be easy to would be easy to achieve in poor societies has declined since achieve in poor societies has declined since 19801980’’s - many challenges, or obstacles, exist:s - many challenges, or obstacles, exist:

i) Legacy of colonialism: “i) Legacy of colonialism: “SovereigntySovereignty” has ” has not resolved problems caused by imperialismnot resolved problems caused by imperialism

Political legacies:Political legacies:

a) Displaced existing state/cultural structuresa) Displaced existing state/cultural structures

Post Colonial states very Post Colonial states very ““artificialartificial””

b) Ethnic divisionsb) Ethnic divisions

Economic Legacies:Economic Legacies:

a) Coloniesa) Colonies’’ economies restructured to meet economies restructured to meet imperial needsimperial needs

E.g. Substance farming to cash crops . . .E.g. Substance farming to cash crops . . . Post-colonial economies:Post-colonial economies:

Resource-export dependent (Resource-export dependent (““mono-mono-exportersexporters””))

Importers of basic foodsImporters of basic foods Urbanization and unemployment Urbanization and unemployment

Need for land reform?Need for land reform?

b) Ineffective transportation links when colonies b) Ineffective transportation links when colonies became independentbecame independent

Requires Requires ““mercantilismmercantilism”” in development policies? in development policies? But not allowed under But not allowed under ““GATTGATT””//““WTOWTO””!!

ii) Structures of global capitalism: Marxist ii) Structures of global capitalism: Marxist perspective – form of neocolonialism has perspective – form of neocolonialism has replaced colonialismreplaced colonialism

MNCMNC’’s dominate global economy:s dominate global economy:

Systematic exploitation of southern poorSystematic exploitation of southern poor Cheap labour etc.Cheap labour etc.

Problem of Problem of ““Technology TransferTechnology Transfer”” Northern MNCNorthern MNC’’s own technology s own technology

necessary to close necessary to close ““development gapdevelopment gap””

iii) Legacy of the LDC iii) Legacy of the LDC ““debt crisisdebt crisis””::

““Debt CrisisDebt Crisis””: Post 1970s balance of payments : Post 1970s balance of payments crisis for majority of southern statescrisis for majority of southern states

Inability to finance trade deficits and pay Inability to finance trade deficits and pay back loansback loans

Result - most southern states have high ongoing Result - most southern states have high ongoing debt servicing costsdebt servicing costs

Implication: Economic surplus diverted to Implication: Economic surplus diverted to debt rather than investmentdebt rather than investment

Required Required ““IMFIMF””/ / ““World BankWorld Bank”” ““helphelp””

““Structural Adjustment LendingStructural Adjustment Lending””: IMF : IMF ““conditionalitiesconditionalities”” requirements for southern states in debt crisisrequirements for southern states in debt crisis

Imposed Imposed ““one size fits allone size fits all”” type of development type of development strategy on states: The strategy on states: The ““Washington ConsensusWashington Consensus””::

Economic Economic ““liberalizationliberalization”” – no – no ““mercantilistmercantilist”” development strategies!development strategies!

Cutbacks in government spendingCutbacks in government spending E.g. No food E.g. No food ““subsidiessubsidies”” = no = no ““Human Human

SecuritySecurity””

Thought to have Thought to have ““failedfailed”” in many countries = in many countries = reduced standards of livingreduced standards of living

““Washington ConsensusWashington Consensus” corresponds with period of poor ” corresponds with period of poor performance (1980s to 1990s)performance (1980s to 1990s)

3) Alternatives/Solutions?3) Alternatives/Solutions? Two Two ““Post-Washington ConsensusPost-Washington Consensus””

approaches to development?approaches to development?

a) Emphasis on a) Emphasis on ““Sustainable DevelopmentSustainable Development””: : Belief that this would address some problems of Belief that this would address some problems of

previous development strategiesprevious development strategies

E.g. Less emphasis on agricultural E.g. Less emphasis on agricultural commodities that lead to local shortages of commodities that lead to local shortages of foodfood

b) Emphasis on institutional developmentb) Emphasis on institutional development

Need for Need for ““strong statesstrong states”” undermined by undermined by economic liberalismeconomic liberalism

E.g. Bruce ScottE.g. Bruce Scott

Example: Bruce Scott - Example: Bruce Scott - ““The Great The Great Divide in the Global VillageDivide in the Global Village””

Assumes development failing – gap growing wider Northern states unfair

Protectionism in agriculture“Washington Consensus” hypocritical

Argues development best supported by “strong states” Need institutional development Need international IGO’s that support “state by

state” strategy

=Copy success of East Asian “Tigers” in rest of LDC’s

Problems?Problems?

Neither emphasis on ecology or Neither emphasis on ecology or ““strong strong statesstates”” addresses the capital ($$$) problem addresses the capital ($$$) problem of southern states . . . .of southern states . . . .

E.g. without resolution of the E.g. without resolution of the ““debt crisisdebt crisis”” most most states will fall further behindstates will fall further behind

““Asian TigersAsian Tigers”” never had debt problem! never had debt problem!

Progress of debt relief has been very slow . . . .Progress of debt relief has been very slow . . . .

E.g. Current Financial Crisis . . . .E.g. Current Financial Crisis . . . .

4) Conclusions:4) Conclusions:

““DevelopmentDevelopment”” remains a problematic goal in remains a problematic goal in international politicsinternational politics

Increasingly unclear what it meansIncreasingly unclear what it meansIncreasingly unclear what it takes to achieve it . . . given Increasingly unclear what it takes to achieve it . . . given the structures of international politics and the self the structures of international politics and the self interested nature of interested nature of ““developeddeveloped”” states states

Can successes in East Asia be copied elsewhere?Can successes in East Asia be copied elsewhere?

4) Conclusions:4) Conclusions:

E.g. E.g. ““Millennium Development GoalsMillennium Development Goals””: UN (2000) : UN (2000) initiative to set targets for global reduction in:initiative to set targets for global reduction in:

Poverty and hungerPoverty and hunger Primary educationPrimary education Gender equalityGender equality Health = Child mortality and communicable diseasesHealth = Child mortality and communicable diseases Environmental sustainabilityEnvironmental sustainability

A comprehensive A comprehensive ““wish listwish list”” but where are the but where are the resources to support efforts and is it resources to support efforts and is it happening?happening?

Progress on Progress on ““Millennium Development GoalsMillennium Development Goals””??

•Developing nations are on track to meet the poverty target largely because of progress in China.

•But in Sub-Saharan Africa and Western Asia the proportion of hungry people has increased.

•Globally, the number of hungry people rose from 842 million in 1990-92 to 1.02 billion people in 2009.

6) For Next Time . . .6) For Next Time . . .

Time:Time: Friday April 10, 2013 (12:00 to 2:00)Friday April 10, 2013 (12:00 to 2:00)

Location:Location: GymGym

Format:Format: Three SectionsThree Sections

1)1) Multiple ChoiceMultiple Choice2)2) Short AnswerShort Answer3)3) EssayEssay

Similar to mid term – sections will be Similar to mid term – sections will be ““weightedweighted””