Economic Development, Growth and Welfare PDF
Preview Economic Development, Growth and Welfare
Economic Development, Growth and Welfare ECONOMICS TODAY Edited by Andrew Leake The Economics Today series surveys contemporary headline topics in applied economics. Each book in the series is written by an expert in the field in a style that is fluently readable. It serves the student of introductory economic principles while also making the subject accessible to a more general reader. The series embraces the problem-solving skills of the new generation of students and stresses the importance of real world issues and the significance of economic ideas. Published Andrew Leake: The Economic Question Jean-Louis Barsoux and Peter Lawrence: The Challenge of British Management Andy Beharrell: Unemployment and Job Creation Frank Burchill: Labour Relations Kenneth Durham: The New City S.F. Goodman: The European Community (2nd edn) Charles Smith: Economic Development, Growth and Welfare Jenny Wales: Investigating Social Issues John Wigley and Carol Lipman: The Enterprise Economy Margaret Wilkinson: Taxation Forthcoming Nigel Healey and Mark Cook: Growth and Structural Change Ian Hodge and Diane Dawson: Choices for the Environment Kent Matthews: Macroeconomics and the Market John Wigley: The Rebirth of Russia Series Standing Order If you would like to receive future titles in this series as they are published, you can make use of our standing order facility. To place a standing order please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address and the name of the series. Please state with which title you wish to begin your standing order. (If you live outside the UK we may not have the rights for your area, in which case we will forward your order to the publisher concerned.) Standing Order Service, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire, RG21 2XS, England. ECONOMIC DEVELOPMENT, GROWTH AND WELFARE Charles Smith M MACMILLAN © Charles Smith 1994 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WlP 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1994 by THE MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world ISBN 978-0-333-59268-7 ISBN 978-1-349-23385-4 (eBook) DOI 10.1007/978-1-349-23385-4 A catalogue record for this book is available from the British Library. Typeset by Cambrian Typesetters, Frimley Dedicated to: Francis Archie Smith, Mary Louise Quibell, Jose Brocca Ramon, and Rosa Garcia Lopez; my grandparents, mis abuelos Make John Lennon's dream come true . It's the least we can do. Song by Gerry Murray (Brandon Publishers), performed by Christie Moore (WEA Records). Contents List of Tables, Figures and Boxes x Acknowledgements xiii Preface xiv List of Abbreviations xvii 1 The World and its Welfare 1 Income, Growth and Welfare 2 2 Development: Economic and Human 14 Economic Development 15 Human Development? 16 How and Why does Development Take Place? 22 Development Policy 28 3 Population Growth: Threat or Opportunity? 29 Supply and Demand 29 Population Pressures 30 The Prophet of Doom 32 The Case for Population Growth 34 The Case Against 35 The Dependency Ratio 36 Social Attitudes 37 vii viii Contents Population Control 37 Children in the Population 38 The Development Trap 40 The Malthusian Trap 41 4 Can we Cure Poverty? 43 Who are the Poor? 43 Too Poor to Live? 45 How to Cure Poverty? 45 Aid and Absolute Poverty 46 Poverty and the Environment 46 Relative Poverty 47 Income and Wealth 48 How Can We Measure Income Inequality? 50 Why do Poorer Countries Seem Prone to Disaster? 53 Disease and Famine 55 The Rural Poor and Empowerment 58 Poverty and the Role of Women 59 5 Feeding the World 63 Nutrition and Cash 63 Terms of Trade 64 The Banks 65 The Advisors 65 Local Effects 66 Land-ownership 67 The Green Revolution 68 Land Degradation 70 Cash Crops and the MDCs 70 Alternatives to Cash Crops 73 What Can the MDCs Do? 75 What Can the LDCs Do? 76 Food and Water 76 6 Industrialisation - The Key to Development? 78 The Stages of Growth 78 Structural Change 80 Contents ix The Dual-Sector Development Model 82 Criticism of the Lewis Model 87 The Myrdal Theory 88 The Todaro Model 88 The Role of Government 89 Rural versus Urban: A False Dichotomy? 90 Appropriate Technology 90 Multinational Enterprises 94 MNEs and LDCs 95 7 Life in a Trading World 98 Industry and Trade 98 Export-Orientation (Outward Strategy) 99 Import-Substitution (Inward Strategy) 100 Trade and Welfare 101 Why does Trade Take Place? 108 Free Trade versus Protectionism 111 Trade and the LDCs 113 8 The Debt Crisis 124 Currency and Exchange Rates 124 International Saving, Investing and Borrowing 128 Aid 141 9 Government, Externalities and the Environment 147 Macroeconomic Policy 147 Microeconomic Policy 149 Types of Planning 149 Externalities 151 Natural Monopolies, Public Goods and Merit Goods 152 Centralisation and Decentralisation 153 Areas of Special Government Concern 154 Some Conclusions 156 Index 159
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