compartive politics - political economy - development

for comp politics final at uw

why is the meaning of "development" contested?

it can refer to wealth, equality of wealth distribution, resource endowments, or social/cultural improvements

what is the primary way development is measured?

economic growth, particularly gdp growth and gni growth

what is gdp?

the total monetary value of all finished goods and services produced within a country in a specific period

what is the formula for gdp?

gdp = c + i + g + (x - m)

what are the five types of capital that can expand to increase output?

natural capital, manufactured capital, human capital, social capital, and financial capital

what does natural capital refer to?

resources like land, minerals, forest, and the environment

what is human capital?

education, skills, and health of workers

what is social capital?

trust, norms, and institutions that facilitate cooperation

why is gdp an incomplete measure of development?

it ignores household production, leisure, illegal/underground production, depreciation, inequality and poverty

does gdp capture inequaltiy?

no

why is gdp misleading in countries with large informal economies?

it fails to include illegal or unrecorded production

why is satisfaction harder to measure than income?

satisfaction measures ends not means, and includes subjective factors

does happiness always rise with income?

no, happiness may depend on free time, social ties, status, religion, and quality of life

what are examples of life improvements that higher income can buy?

better housing, food, healthcare, education, luxury items, vacations

what is the most common measure of development?

gdp growth

what development outcomes correlate with gpp growth?

better health, higher education, reduced poverty, higher living standards

why might there be a trade-off in development?

growth can come with inequality, environmental damage, or cultural disruption

what are the three main categories of development theories?

institutional, cultural, and structural

what does the institutionalist approach argue?

development is determined by institutions that shape incentives and constraints

whats the difference between formal and informal inst?

• formal = written laws

• informal = how rules are actually applied

what are examples of institutional variation across countries?

property rights, legal systems, corruption, democracy vs. dictatorship, entry barriers

why are institutions considered endogenous?

because geography, culture, and history can shape inst. outcomes

what does culturalist theory say about development?

beliefs, norms, values, and habits shape economic development

what cultural factors promote development?

high trust, strong social capital, work ethic, future orientation, individualism

what are examples of religious values linked to development?

protestant ethic → work ethic, thrift, worldly calling

what are confucian values important for development?

respect for authority, education, and social order

what do structural theories emphasize?

domestic class structures and international economic systems

what is dependency theory?

poor countries remain subordinate because the world system favors rich nations

what are development traps in system based theories?

impediments created by global hierarchies or domestic elites

how did montesquieu link geography to development?

• hot climates lead to laziness which leads to poverty

• cold climates lead to vigor which leads to democracies

what determines development in diamonds theory?

geographic differences shaping agriculture, crops and animal domestication

what level of geographic variation matters most for diamond?

differences across continents

why does sachs argue tropical countries are poor?

higher disease burden, poor farming conditions, bad climate for health

what geographic advantages help development?

coastline access, temperate climate, natural resources, favorable ecology