Beyond Economic Growth

211 Pages·2004·11.592 MB·English

by  Tatyana Soubbotina

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WBI LEARNING RESOURCES SERIES
Beyond
Economic
Growth
An Introduction to
Sustainable Development
Second Edition
Tatyana P. Soubbotina
The World Bank
Washington, D.C.
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Copyright © 2004
The International Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
First printing September 2000
The findings, interpretations, and conclusions expressed in this book are entirely those of the author
and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to
members of its Board of Executive Directors or the countries they represent. The World Bank does not
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Tatyana P. Soubbotina is a consultant at the World Bank Institute.
Cover and chapter opener design by Patricia Hord Graphic Design. Typesetting by Precision Graphics.
Library of Congress Cataloging-in-Publication Data has been applied for.
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Contents
Acknowledgments vi
Introduction 1
Difficult Questions, Different Answers 2
Data and Development 2
About This Book 3
How to Use The Book 4
1. What Is Development? 7
Goals and Means of Development 7
Sustainable Development 8
2. Comparing Levels of Development 12
Gross Domestic Product and Gross National Product 12
Grouping Countries by Their Level of Development 15
3. World Population Growth 17
4. Economic Growth Rates 23
5. Income Inequality 28
Cross-country Comparisons of Income Inequality 28
Lorenz Curves and Gini Indexes 29
Costs and Benefits of Income Inequality 31
6. Poverty and Hunger 33
The Nature of Poverty 33
The Geography of Poverty 34
The Vicious Circle of Poverty 35
The Challenge of Hunger 38
7. Education 43
Education and Human Capital 43
Primary Education and Literacy 46
Issues in Secondary and Tertiary Education 48
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8. Health and Longevity 53
Global Trends 53
Population Age Structures 55
The Burden of Infectious Disease 57
Lifestyle Challenges 61
9. Industrialization and Postindustrialization 63
Major Structural Shifts 63
Knowledge Revolution 65
Implications for Development Sustainability 67
10. Urban Air Pollution 69
Particulate Air Pollution 70
Airborne Lead Pollution 73
11. Public and Private Enterprises: Finding the Right Mix 76
The Dilemma of Public-Private Ownership 77
Is There a Trend toward Privatization? 80
12. Globalization: International Trade and Migration 83
Waves of Modern Globalization 83
Costs and Benefits of Free Trade 85
Geography and Composition of Global Trade 87
International Migration 91
13. Globalization: Foreign Investment and Foreign Aid 95
Private Capital Flows 96
Official Development Assistance 99
14. The Risk of Global Climate Change 102
Whose Responsibility Is It? 103
Will the North-South cooperation work? 107
15. Composite Indicators of Development 110
“Development Diamonds” 110
Human Development Index 111
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16. Indicators of Development Sustainability 113
Composition of National Wealth 113
Accumulation of National Wealth As an Indicator of Sustainable Development 114
Material Throughput and Environmental Space 117
Social Capital and Public Officials’ Corruption 119
17. Development Goals and Strategies 123
Millennium Development Goals 123
The Role of National Development Policies 127
Difficult Choices 129
Glossary 131
Annex 1: Classification of Economies by Income and Region 145
Annex 2: Data Tables 149
Table 1. Indicators to Chapter 1–5 150
Table 2. Indicators to Chapter 6–7 160
Table 3. Indicators to Chapter 8–9 170
Table 4. Indicators to Chapter 10–13 180
Table 5. Indicators to Chapter 14–16 192
Annex 3: Millennium Development Goals 203
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Acknowledgments
The preparation of this book benefited Kirk Hamilton, Ksenia Lvovsky, Magda
greatly from the support and valuable Lovei, Peter Miovic, Philip Karp, Simon
contributions of many colleagues in the Commander, Tatyana Leonova, Thomas
World Bank Institute (WBI) and in Merrick, Tim Heleniak, Vinod Thomas,
other parts of the World Bank. Vladimir Kreacic, and William Prince.
Special thanks go to John Didier for his
I am particularly indebted to the head dedicated help with the final editing of
of WBI, Frannie Leautier, for her sup- the first edition and unfailing support
port of the second edition of this book during the preparation of the second
and to two successive managers of the edition.
WBI Development Education Program
(DEP), Katherine Sheram and Danielle I am also grateful to all of my colleagues
Carbonneau, for the inspiration and in Russia, Latvia, and Belarus for their
important inputs they provided to this knowledgeable advice during our joint
challenging multiyear project. The work work on the respective country adapta-
on this book was also greatly facilitated tions of this book, particularly Vladimir
by close collaboration with the other Avtonomov, Andrei Mitskevitch, Erika
DEP team members, including Evi Sumilo, and Mikhail Kovalev.
Vestergaard, Kelly Grable, and Brooke
Prater. An important role in pilot-testing and
distributing the first edition and its three
Next I would like to express my sincere country adaptations was played by DEP
appreciation to those World Bank partners in the US National Council on
experts who provided extremely useful Economic Education (NCEE), in
comments, suggestions, and inputs dur- Russia’s State University–Higher School
ing the drafting of the first and second of Economics, in the Latvian Association
editions of this book: Carl Dahlman, of Teachers of Economics (LATE), and
Dusan Vujovic, Gregory Prakas, Joanne in the Belarusian Institute for Post-
Epp, John Oxenham, John Middleton, Diploma Teacher Training.
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Introduction
The underlying premise of this book is from reputable international sources
that in order for development to be sus- (like the World Bank and the UN spe-
tainable, it has to be comprehensive—it cialized development agencies).
has to successfully balance economic
goals with social and environmental. This book is designed to introduce read-
“Development” is really much more ers to some major challenges in today’s
than simply economic growth. The sustainable development (from the global
understanding of development can differ to the national and perhaps even to the
among countries and even among indi- local level) and help them gain a more
viduals, but it usually goes far beyond holistic and realistic view of their coun-
the objective of increased average try’s situation in a global context.
income to include things like freedom, Because development is a comprehensive
equity, health, education, safe environ- process involving economic as well as
ment, and much more. Hence the title social and environmental changes, this
of this book: “Beyond Economic book takes an interdisciplinary approach.
Growth.” It attempts to explain some complex rela-
tionships among various aspects of devel-
By publishing this book, the opment, including population growth,
Development Education Program economic growth, improvements in edu-
(DEP) of the World Bank Institute cation and health, industrialization and
(WBI) seeks to help more people under- postindustrialization, environmental
stand that in the present-day globalized degradation, and globalization. Young
world international development should people and learners of all ages, teachers
be everyone’s concern because it affects and students, are invited to explore these
everyone’s life. Ordinary people includ- relationships even further—using the sta-
ing youth—not just economists and tistical data and theoretical concepts pre-
development experts—should be pre- sented in this book—and to engage in
pared to discuss and participate in mak- informed discussions of the controversial
ing decisions on the most pressing issues development issues closest to their hearts.
of sustainable development, proceeding “An Invitation to a Global Discussion”
from their own cherished values and could be another appropriate subtitle for
based on reliable data and information this book.
1
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BEYOND ECONOMIC GROWTH
Difficult Questions, sible, the author has based this book on
Different Answers one simple ideological principle: devel-
opment should be a tool for improving
The book starts with three difficult the lives of all people. It is up to people
questions: What is development? How (including the readers of this book) to
can we compare the levels of develop- define for themselves the meaning of a
ment achieved by different countries? better life and to prioritize the goals of
And what does it take to make develop- development and the means of their
ment sustainable? The author does not achievement.
claim to have all the answers to these
and other controversial questions posed
directly or indirectly in the book. Development Data
Instead, readers are encouraged to sug-
gest their own answers based on facts— Perhaps the main attraction of this book
necessary for understanding the is that it is based on plentiful statistical
constraints of reality—but inevitably data for most countries, presented in data
rooted in personal value judgments tables in Annex 2 as well as in figures,
determining different relevant weights maps, and references in the text. Statistics
attached to certain goals and costs of can be powerful tools for learning about
development by different people. For development. They can help paint a
example, for some people development more accurate picture of reality, identify
means primarily higher incomes, for issues and problems, and suggest possible
others, a cleaner environment. Some are explanations and solutions. But statistics
most interested in personal security, oth- have their limitations too. They are more
ers, in personal freedom. Note that these reliable for some countries than for oth-
goals and values are not always easily ers. They often allow very different inter-
compatible—faster economic growth pretations, particularly when considered
may be more damaging to the natural in isolation from other important statis-
environment and a strengthening of per- tics. And because it takes a long time to
sonal security may require limiting some collect and verify some statistics (particu-
personal freedoms. The abundance of larly on a global scale), they may seem to
such tradeoffs in development is one of be or really be out of date before they are
the reasons why there are so many open even published. It is also important to
questions in this book. remember that many aspects of develop-
ment cannot be accurately measured by
Acknowledging that many answers statistics. Examples include people’s atti-
inevitably involve value judgments, tudes, feelings, values, ideas, freedoms,
which makes absolute objectivity impos- and cultural achievements. Thus statisti-
2
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INTRODUCTION
cal data can tell us only part of the specialized United Nations agencies,
story of development—but it is an such as the UN Development Program,
important part. World Health Organization, and UN
Food and Agriculture Organization (as
Note that comparing development data noted in the text).
on your country with those on other
countries can be extremely revealing for
several reasons. First, seeing one’s country About This Book
in a global context and learning how it is
different from or similar to other coun- This book was prepared as part of an
tries can improve understanding of the international project under the World
country’s present-day status and of its Bank Institute’s Development Education
development prospects and priorities. Program (DEP). The main objective was
Second, because the economies of the to create a template text about the global
world are becoming increasingly interde- issues of sustainable development—
pendent, development processes in each social, economic, and environmental—
country can usually be better understood that could then be customized for
when studied in the context of their various countries by teams of local edu-
interaction with related processes in other cators and published in their respective
countries. The author hopes that this national languages. It was also expected
book will help satisfy popular demand for that students and other readers inter-
information about global development ested in development issues could use
and at the same time help readers gain this international template without
some new insights into their own coun- adaptation as a source of relatively cur-
try’s recent past, present, and future. rent statistical data and widely accepted
development concepts for further
The statistics presented here were the research and discussions.
most recent available when this book
was written. Most of the data in the data The first edition was published in 2000
tables, figures, and maps are from World and simultaneously posted on the DEP
Bank publications, including the World website in the original English and in
Development Indicators(2000, 2001, French and Spanish translations. The
2003), the World Development Report print copies were distributed in the USA
(various years), and other statistical and and internationally, mostly in countries
analytical studies. Figures 4.4 and 9.2 where students were prepared to read in
have been included with the permission English (in Sri Lanka and India, in
of the International Monetary Fund. Ghana and Uganda, in Lithuania and
Some data were also borrowed from the Estonia).
3
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BEYOND ECONOMIC GROWTH
In addition, the first national adaptation ments were taken into account in the
was developed and published in Russia course of preparing this second edition.
as The World and Russia student book,
officially approved by the Russian As compared with the first edition, the
Ministry of General and Professional second one is completely updated and
Education for secondary students in the revised. All the data and charts are more
10th and 11th grades studying econom- current by 4–5 years and new materials
ics, social studies, geography, and envi- are included on a number of issues such
ronmental studies. The three local as Millennium Development Goals, the
coauthors of the Russian adaptation rep- nature of poverty, global hunger, the bur-
resented three leading research and edu- den of infectious diseases (HIV/AIDS,
cational institutions in Moscow. TB, malaria), the knowledge revolution,
stages of modern globalization, inter-
The Latvian adaptation, The World and national migration, and the costs of
Latvia,was prepared in coauthorship government corruption. Additional con-
with Erika Sumilo, a professor and troversial questions for further discussion
department head at the University of are included as well. The Development
Latvia, and published in Latvian. The Education Program hopes that this new
book was awarded a national prize as the edition will find its way into classrooms
best Latvian book on economics pub- as well as family rooms in many
lished in 2002. countries.
The latest national adaptation was
undertaken in Belarus in coauthorship How to Use The Book
with Mikhail Kovalev, a professor and
department head at Belarus State Because all development issues are intri-
University, and was published as The cately interrelated, there is no single,
World and Belarusin 2003. Most of best sequence in which to study them.
these Russian-language books were dis- Thus the structure of this book allows
tributed among secondary schools spe- the readers to start with almost any
cializing in social and humanitarian chapter that they might find the most
studies. intriguing. The author, however, would
advise not skipping Chapters 1 and 2
Thanks to the rich history of this book, since they serve as a general introduction
the author has had many opportunities to to the book and present some important
receive feedback from students and edu- basic concepts on which the following
cators in many countries, developed as chapters build. Note also that Chapters
well as developing. Many of their com- 15, 16, and 17 can be read as a continu-
4