« 2006 - Lesson #27 - Exchange Rates and "Burgernomics" | Main | 2006 - Lesson #29 - Globalization »
May 3, 2006
2006 - Lesson #28 - Development Economics
Other than globalization, this will be our final "topic" for the year. Friday, we'll begin setting up for our "MPA Globalization Forum 2.0" and our "Dead Economists' Luncheon." That, and a quick test, will finish up the year...
I'll post questions for the chapter you were asked to read. I'll try to do the last two over the weekend as well for those of you that would like to finish stuff up a little early...
REMEMBER: Please come Friday if possible as we'll draw for roles and assign chapters from "Naked Economics" to you. It's a shorter "block" due to assembly schedule, but we can get it done.
Development Economics: This will be more discussion oriented than "lecture" based. You know a lot about inequality and the problems of poverty and related issues. For us, I'd like the bigger questions to be these:
What CAN be done to foster economic development?
What SHOULD be done to foster economic development?
First, I'd like to brainstorm a list of causes of global inequality and poverty.
There are a few terms and concepts that will be useful in this discussion:
World Bank: The World Bank is owned by 184 countries. In 2002, almost $20 billion in loans were provided to clients in more than 100 countries. The World Bank's focus is on development assistance.
Work your way through this overview of the World Bank's functions at "10 Things You Never Knew about the World Bank."
Here are the "Quick Reference Tables" from the World Bank. You can find a lot of information here.
International Monetary Fund: According to its own web page, the IMF "works for global prosperity by promoting the balanced expansion of world trade and stability of exchange rates..." Its functions complement those of the World Bank.
Structural Adjustment Programs (SAP): The IMF and World Bank at times require nations to "adjust" their economies in order to assure debt repayment. Many critics believe this only deepens the poverty of the people. Nations may be required to encourage foreign trade, shift to a cash crop focus, or otherwise be directed to act in a particular way. These are also referred to as "economic austerity" plans.
Posted by mvergin at May 3, 2006 8:17 AM