SLIDES: Successful Industrialization in the Global South

POG240: Introduction to Comparative Politics Lecture 8: Successful Industrialization in the Global South

Overview

  • Focus on patterns of economic development and industrialization in the Global South

Patterns of Economic Development: Post-Industrial Revolution (1)

  • Growth of GDP per Capita (1820-1950):

    • 1820-1870: 1.81

    • 1870-1913: 1.81

    • 1913-1950: 1.55

  • Regional Performance:

    • Western Europe: Consistent growth showing highest ratios.

    • Western Offshoots: Strong economic indicators.

    • Eastern Europe: Variable indicators, reflecting post-war transitions.

    • Former Soviet Union: Steady decline in per capita indicators.

    • Japan: Notable economic growth compared to other regions.

Patterns of Economic Development: Post-Industrial Revolution (2)

  • Per Capita GDP (Ratio of West) based on year (1820, 1870, 1913, 1950):

    • Variance seen with Asia, Latin America, and specifically India, China, and Japan showing divergent growth.

  • Indicators to Note:

    • Eastern Europe and Latin America's ratios typically lag compared to Western benchmarks.

Patterns of Economic Development: Post-Industrial Revolution (3)

  • World GDP Shares (1820-2001):

    • Africa: Reflects significant decline in global share.

    • Asia: Steady increase in share observed over the decades.

    • Latin America and Developing Countries show noticeably lower shares compared to Industrialized Countries.

Patterns of Economic Growth Since 1950

  • GDP per Capita (1950 vs 2016):

    • International-Adjusted Data: 1990's standardization of price adjustments for international comparisons.

    • Highlighted countries:

    • Equatorial Guinea: -163 fold

    • Taiwan: 28.3-fold

    • South Korea: 32.2-fold

    • Singapore: 27.5-fold

    • Countries achieving positive growth versus those with negative indicators, e.g., Venezuela (-89-fold).

Share of Population Living in Extreme Poverty (1950-2018)

  • Definition of Extreme Poverty: Living below the International Poverty Line of $1.90 per day, adjusted for inflation and cost of living variations across nations.

  • Patterns of Deprivation: Sub-Saharan Africa shows persistently high levels of poverty in contrast to other regions.

Shifting Export Patterns of Manufactured Goods Since 1950

  • World Manufactured Exports: Analyzed growth patterns with a focus on the share contributed by developing countries, which has seen an upward trend since the mid-1970s.

Selective Patterns of Industrialization Since 1950

  • Industry as a Share of GDP vs. GDP per Capita:

    • Established insights on how industrialization impacts GDP per capita, especially concerning emerging economies and historical data of sectors.

    • Comparative analysis shows significant differences and lessons learned from industrial economies.

Transformation of Seoul, South Korea (1950-2010)

  • Emphasizes the dramatic economic and infrastructural transformation that Seoul has undergone as a case study of successful industrialization.

The ‘Washington Consensus’ (Williamson)

  • Key Actors/Institutions:

    • World Bank

    • International Monetary Fund

    • Focusing on policies stemming from global financial disruptions and political shifts (e.g., Reagan-Thatcher).

  • Policy Framework Included:

    • Macroeconomic stability (fiscal discipline, public spending, tax reform)

    • Economic openness (liberalization, exchange rate competitiveness)

    • Domestic liberalization (property rights, deregulation, privatization)

Case for the ‘Washington Consensus’

  • Posits the need for adaptive policies to counteract ineffective practices and the importance of democratic choices, but acknowledges limitations regarding externalities and ideological clashes.

Assessing the ‘Washington Consensus’ (Gore)

  • Transformation of development thinking:

    • Shifts from historicism to contemporary global evaluations.

Challenging the 'Washington Consensus' (1)

  • Sustainable Human Development Paradigm (UN Development Programme): Developing a new evaluative framework contrasting with the Washington Consensus.

  • Models of Development: Reflections on East Asian models and shifts in Latin America leading to a re-evaluation of policy tools applied across nations.

Challenging the ‘Washington Consensus’ (2)

  • Southern Consensus: Incorporating East Asian developmental practices and Latin American neostructuralism, focusing on:

    • Strategic integration into global markets

    • Productive development policies

    • Emphasis on inclusive growth processes and regional integration.

Class Exercise

  1. Discuss and define what development entails.

  2. Evaluate various theories of development and their persuasive value in current discourses.