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7 This is part of the so-called J-curve phenomenon. With devaluation, export income may not grow
by much for a time, as a result of the slower response of export sales to the lower unit price of
exports, in real terms, that a devaluation implies. Thus total export income may not rise by much
very quickly. On the other hand, total expenditure on imports can actually increase after a devalu-
ation, depending on the price elasticities of demand. With higher import prices, if the quantity of
imports purchased does not fall by more, in percentage terms, than the price has risen, the import
bill will grow. Thus, it is quite possible that a devaluation, in the short term at least, will result in a
deterioration of both the trade deficit and the current account deficit.
International institutional linkages 593
8 The theoretical assumptions and the model employed by the Fund to analyze the difficulties of the
borrowing nation are important to explore in any serious assessment of the Fund™s activities. Basi-
cally, the Fund assumes away the problem of economic development by treating the potential poor
borrowing nation as if it already had a fully articulated and developed market economy. There is no
place for economic dualism in the Fund™s analysis; all factors of production are assumed to be fully
employed, and there is complete mobility of factors of production within the economy. Lewis™s
dualism and the reservations of Prebisch and Singer and other developmentalist economists
(Chapters 5 and 6) have no role to play in the model employed by the Fund. The Fund™s approach
largely derives from the large body of work of a little-known Fund economist, Jacques J. Polack,
who, in 1943, developed an analysis known as the “Polack Model,” which we have described
above, albeit in a non-rigorous manner. Readers wishing to have access to Polack™s highly influen-
tial work (spread over fifty years!) should consult the two-volume work by Polack (1994).
9 In a completely closed economy with no trade, wage repression that leads to an increase in the
share of total income going to profits would unambiguously reduce the overall level of output
and income, as long as the usual assumption holds that the marginal propensity to consume out of
profits (MPCP) is less than the marginal propensity to consume out of wages (MPCW).
10 Updating this research through 1993, Killick has determined that of 305 programs examined
between 1979 and 1993, 53 percent were never completed (Killick 1995: 60“1).
11 Studies of IMF programs often do not clearly indicate why a given sample of nations has been
chosen, or why particular dates have been utilized. Many studies do not adjust for size of the
nations involved, or other variables which would permit the results to achieve greater reliability.
Furthermore, although the Fund prefers to present its programs as being guided by the principle
of “uniformity of treatment,” it has often bent the rules regarding conditionality in order to lend
to governments which either the Fund or the major donor nations support as a result of their ideo-
logical stance or because of their strategic influence. The most recent example of the role which
ideology, and even personal ties, can play in determining how the Fund will react to a nation in
economic difficulties is that of the $17.8 billion Mexican loan in early 1995. The Fund™s managing
director, Michael Camdessus, acknowledged that he had become a personal friend of some of the
top economic policy-makers in Mexico, particularly Mexico™s influential finance minister, and
that as a result his professional objectivity regarding Mexico™s looming economic disaster had
been compromised. Camdessus admitted that the inconsistencies revealed in the Mexican situation
were not unique and that the Fund™s unwillingness to impose adequate surveillance on Mexico in
1994 pointed to “a global problem with the culture of the Fund” (Gerth and Sciolini 1996: A6).
Given this “political element,” quantitative tests of the “effectiveness” of the Fund™s programs
become more problematic. If uniformity of treatment is violated because of special relationships
the IMF forges with some countries, it becomes very difficult to determine on the basis of compara-
tive empirical studies of Fund programs what the general effect of a program may be.
12 This distinction, however, has increasingly been blurred, because the Fund has drawn the conclu-
sion that its stabilization programs have performed badly as a result of their short-term orientation.
The Bank has, since the late 1970s, increasingly shared the theoretical perspective of the Fund and
has sought to link short-term stabilization programs of the Fund to long-term lending programs at
the Bank. When this linkage occurs, it is known as a cross-conditional program.
13 The index makes several other smaller adjustments.


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Index




hidden potential 153; high yield varieties 384;
Focus boxes are marked with a capital F after
the page number: e.g. BNDES 286“7F. Tables increased output 374; infrastructure 385; labor
(t), figures (f) and notes (n) are marked after the force 342; labor surplus 153; low-productivity
locator: e.g. children, mortality rates 403t12.4; 153, 357; market failures 377; market-led
floating exchange rates 516f15.3; current agrarian reform (MLAR) 379; mechanization
account deficits, 552n10. Equations are noted in 385; modernization 162, 208; monocrops 367;
peasant 89, 207; peasants 355“7; pesticides
brackets after the locator: e.g. aggregate demand
function 250(8.3). 364F; production rate 342“3; productivity
155, 162, 298, 353F, 356, 387; productivity
Acemoglu, Daron 79F increase 119; reform 323; revolution 116F,
Africa: colonial infrastructure 90F; current 119; soil erosion 349F; specialization 81“2;
account deficit 496F; debt 93, 204; surplus labor 275; technology 275, 356, 428;
demographic crises 78; dependency analysis traditional 355; transgenic crops (TCs) 366;
185; economic crisis 204; FDI 461; increased tropical exports 352; wages 155; women 345F
poverty 7; living standards 12; NERICA rice aid: economic growth 141
365; non-cohesive states 222; overuse of Amsden, Alice 229F, 230F, 435F; assistance 333;
land 378F; periphery nations 170; political Brazil 223“4; external imbalances 520“1;
independence 18; total factor productivity Korea 438; performance based allocation 327
(TFP) 433; tsunamis 3“4 Anderson, Jonathan 61F
Africa (British West Africa): Bauer, Lord P.T. Angola: development 22; GDP/GNI gap 47
206“10 Argentina: average income 36; civil service
Africa (North): fertility rates 401“2; income per 328; corruption 226F; debt overhang 547;
capita 15 Gini coefficient 59F; Great Britain 170;
Africa (Sub-Saharan): debt overhang 546“8; import substitution industrialization (ISI)
education 413; equality share of income 17; 278; income per capita 16; increased debt
external debt accumulation 530; food crisis 533; mono-exports 92; overvalued currency
343; GDP 240; growth 256, 273; HDI 52; 510“11F; standard of living 170; theory of
HIV/AIDS 398; income per capita 15“16; comparative advantage 169“70; United States
investment rates 242; life expectancy 399F; of America 170; wheat production 82
negative technical efficiency change 261; per Arrow, Kenneth 282F
capita income 263; pesticides 364F; poverty Asia: FDI 484“7; periphery nations 170;
rates 10 political independence 18; poverty rates 10
Africa (West) 234; colonialism 96“7 Asia (East) 59F; comparative incomes 325F;
aggregate: demand 86, 141; income 36“7; decline in fertility rate 401; developmental
production function 164n2, 250(8.3) state 221; developmental states 473; easy
agriculture: capitalist strategy 373; cash-crop import substitution industrialization 318“19;
cultivation 356; colonial 81; commercial 360; economic success 13, 196; efficiency 324;
declining output 343t11.1; decrease 20, 274; equality share of income 17; exports 317; FDI
deforestation 349F; economies of scale 382; 464; Green Revolution 350; growth 15“16,
efficiency 274; environment 378F; exports 273; High Performing Asian Economies
89t3.1; fertilizers 365; GDP 342; global (HPAEs) 258F; investment rates 242; natural
output 171; government 376“9; grain storage resources 322“3; poverty rates 10; state
385; Green Revolution 350; growth 376; intervention 214“15; structural transformation
598 Index
331“2; success 182; total factor productivity 534“40; investment 536; repayments 536“7,
(TFP) 432“3 541“3; self-liquidating 540“1; sovereign
Asia (South): equality share of income 17; borrowers 551n5; virtuous circle effects
income per capita 15“16; poverty rates 10; 540“1
total factor productivity (TFP) 433 Botswana: equality share of income 40; GDP 64;
Ayres, Clarence 168; institutionalist theory 169, income per capita 40; poverty rates 4
180“2 Brazil: aggregate success 74; BNDES 286“7F;
currency controls 159; debt for nature swap
backwash effects 197; cumulative causation 543F; dependence on US 189F; dependent
183“4 development 195F; economic growth 60;
balance of payments 215, 336n4, 492(15.1); equality share of income 40“2; foreign
adjustments with fixed rates 517; adjustments direct investment (FDI) 187F, 189F; foreign
with floating rates 516“17; capital and ownership 376; Gini coefficient 59F; import
financial account balance 492; crisis substitution industrialization (ISI) 187F, 278,
523; current account 493“7, 494t15.1; 291; income flows 35“6; increased debt 533;
current account balance 492; defined 492; intermediate state 232f7.2a; lack of embedded
disequilibrium 492; drain 470; economic autonomy 231; lean production techniques
stability 310; equilibrium level 519; exchange 458; negotiated land reform 379; social
rates 491, 513; exchange rates valuation development 188F
514“15; external equilibrium 491; floating Brundtland Commission: sustainable
exchange rates 516f15.3; monitoring development 44F
517“18, 522“3; net errors and omissions businesses: efficiency 21; organization 274;
492; overvalued currency 517“20; problems profitability 21
502“3; transactions 501
balance of trade 524; defined 493 Cambodia: average income 36; income per
Bangladesh: class size 408; equality share of capita 47
income 40; export profile 317; exports 209; capital: accumulation 239; FDI 461; formation
foreign direct investment (FDI) 209; unpaid 147, 464“9; research 248; social overhead 143
work 43F capital and financial account 497“501, 498t15.2;
banking: funding 102; involuntary lending inflows 514
544“5; loans 534; organization 22; ownership capital flight 159, 227F, 590; less-developed
324; private international system 532F, 543“4, nations 526; multinational corporations
548; sovereign borrowers 533, 543, 551n5 (MNCs) 473
Baran, Paul 168, 190“1; capitalist sector 101“2; capitalism: increase 76; Marx, Karl 126F;
dependency theory 169 merchant 80; monopoly capitalism 190;
Barboza, David 228F sector creation 153; specialization 112“13;
barriers: external 23“4; to growth 337n117, 530; superiority over feudalism 110; transition 110;
internal 22; reduced 549; relative influence transnational 229
23; structural transformation 530 Cardoso, Fernando Henrique 169, 192“4, 195F
Barro, Robert J. 257 Caribbean: decline in fertility rate 401;
Barry, Tom 349F, 364F dependency analysis 194; divergence 241;
basic needs approach 197n2 equality share of income 17; growth 273;
Bauer, Lord P.T. 234; Africa (British West income per capita 15; political independence
Africa) 206“10; development 205“6; 18
ethnicity 210; marketing boards 208; role of ceremonialism 268n26; ceremonial behavior
government 211 181; class structures 181; economic
development 181; education 182; High
Beatty, Jack 228F
biotechnology: Green Revolution 365; seed Performing Asian Economies (HPAEs) 255;
varieties 362“7 indoctrination 181; social convention 181;
Birdsall, Nancy 59F structuralist theory 181; technology 424
BNDES: Brazil 286“7F Chang, Ha-Joon 227F, 233
Bolivia: barriers 23; debt for nature swap 543F; children: as carers 402; costs to parents 403“4;
education 416; education budget 412F; per family names 404; insurance 402; labor force
capita income 412F; primary education 412F; 402; mortality 9; mortality rates 403t12.4;
primary products 279F opportunity cost to parents 404; as a resource
Borras, Saturnino 379“80 403; role in family 402“4
borrowing: adjustment policies 538“40; external Chile 218; average income 36; Gini coefficient
Index 599
59F; HDI 52; import substitution 336n1; petro-dollars 204; repressed 146
industrialization (ISI) 278; income per capita convergence: conditional 242; per capita income
47; investment 547; wine exports 179F 239“46, 262
China: corruption 227“8F; crude birth rate corruption 185; capital flight 227F; civil service
(CBR) 400, 417; crude death rate (CDR) 335; decline 296; development 226“8F;
417; development 36; developmental state fragmented intermediate states 224; infant
221; economic growth 66; export processing industry tariffs 293
zones (EPZs) 478; export profile 317; export Costa Rica: debt for nature swap 543F; HDI 52,
substitution 313; FDI 467; GDI 55; GDP 56; HPI 55
61F, 272; GNI 279F; Green Revolution Côte d'Ivoire: barriers 23; debt overhang
350; growth 244, 273; HDI 61F; income 547; manufactured exports 317; migration
flows 35“6; income per capita 16, 40, 56; 395; natural population growth rate 394;
overvalued currency 526; per capita income population growth 398; primary products
convergence 245“6F; poverty gap 8; poverty 279F
rates 10; research and development 426; Crevoshay, Fay 150F
sustainable development 61F; undervalued crops: high yield varieties 348“9, 374; non-
currency 523F traditional 342; staple crops 386
civil service: corruption 328“9, 337n8; Crowe, Trevor 93F, 179F; net barter terms of
development 21; meritocracy 335; well paid trade (NBTT) 172
328“9 crude birth rate (CBR) 394, 415, 418n3; average
civil war: death 4; role in development 23 income 401; culture 400; decline 401;
Coatsworth, John 84F demographic transition 398; determinants
Colby, Gerard 189F 400“2; differences 395“6; fertility rates
Colombia: development 22; Hirschman, Albert 400“2; less-developed nations 396; religion
147; import substitution industrialization (ISI) 400
278; National Economic Planning Board 147; crude death rate (CDR) 394, 415, 418n3; decline
negotiated land reform 379; transfer pricing 413; differences 395“6; improved medicines
469 396; less-developed nations 396“7; world
colonial rule: net burden 84F health measures 400
colonialism: agriculture 347; backwash effects cultivators 341; market production 356; small-
184; ceremonialism 196; collaboration scale 355“7; technology 377
86“7; colonial systems 1914 95t3.2; de- cumulative causation 183; Asia (East) 244;
industrialization 87“9; developing nations backwash effects 183“4; dualism 186; spread
73; dualism 192; early 73; effects 78, effects 184
102, 184, 220; expansion 95“6; foreign currency: appreciation 503“4, 507; current
aid 587; functional role 84“6; impact 91; account deficit 518; depreciation 503“4, 507,
industrialization 89; mature 73, 96; native 514“15; devaluation 509, 518“20, 527n10,
paramountcy 206; net benefits 97“8; 563“4; flows 515; loans 557“60; overvalued
net burden 85F; policies 83; prevented currency 517“20; undervalued currency
industrialization 208; type 221 521“2
colonies: economic development 77; forced current account: balance 524; balances 496“7F;
labor 78; independence 240; less-developed beneficial deficit 518; debilitating deficit
nations 26, 76; mono-exports 102, 103; slave 518“20; deficits 495“8, 502, 517, 525, 530“1,
552n10; imbalances 539; short term deficit
trade 77
comparative advantage 120t4.1; change 316; 534“6; surplus 495“7, 502
creation 280; hidden 140; hidden potential
152; wage costs eroded 159 Dasgupta, Partha 62F
competition 91“2; contest-based 327; domestic deadweight loss 302, 305n14; consumer surplus
producers 312; imperfect 217; infant industry 289
tariffs 285; knowledge 217“18; market system death: civil war 4; famine 4; HIV/AIDS 4;
112; technology 439; trade tariffs 123 malnutrition 4, 343; positive checks (Malthus)
Conable, Barber (President, World Bank) 573F 116
consumers: deadweight loss 289; demand 285; debt: accumulation 538, 548; burden 535F;
per capita income 287; prices 284, 292“3; burden ratios 535F; cancellations 545; capital
surplus 288“9, 302 flows 552n8; crisis 159, 542, 543“6; for
consumption 37; conspicuous 79“80, 85, 157“8; equity swaps 545; external 23, 294F, 311,
expansion 46F, 120; income distribution 549; external accumulation 530, 535F; growth
600 Index
189F; increased 174, 194, 531; long term domestic producers: competition 312; exports
external accumulation 536; for nature swap 312
543F, 546; overhang 546“8; petro-dollars 204; Dominican Republic: lean production techniques
privatization 218; reductions 545; repayments 458
536“7, 541“3; service obligation 541“3; Doolette, John 349F
service ratios and burden 550, 541t16.2; dualism 103, 186
social costs 548; total external debts 534t16.1
deforestation 349F Earth Summit 44“6F
democracy: access 14; authoritarianism 193; economic: analysis 127; backwardness 73; crisis
corruption 295; debt overhang 546“8; 204; dependency 186f6.3; disintegration
increase 549; political 31; role in development 101“2; dualism 73, 74, 100“2; expansion 318;
inequality 74, 151; performance 74; planning
22
144; policies 23, 123, 313, 562“3; stability
Democratic Republic of the Congo: corruption
310; stagnation 192; structures 103; success
227F
demographic transition 395“9, 415, 417, 76; surplus 190; system 217; transformation
398f12.1; phases 397“9; population growth 297; wealth 14, 37, 110; welfare 111“12
413 Economic Commission of Latin America
Dennett, Charlotte 189F (ECLA): advocacy 169; attacks ISI 174;
dependency analysis 192“4, 197; Caribbean 194; Furtado, Celso 187F
Marxism 190“1; modernization theory 185 economic development 18; barriers 191, 575;
ceremonialism 181; colonies 77; foreign
dependency theory: economic Commission of
Latin America (ECLA) 174 aid 583; foreign investment 191“2; hidden
developed nations 5, 14, 169, 170 potential 142; human capital formation 212F;
development: agriculture 275, 342, 376“9; India 97; institutional change 21; Korea
barriers 22“4; cash-crop cultivation 367; 97; Nigeria 208; policies 111; problems
economic 13, 18, 47; economic growth 3; 13; promotion 151; standard of living 156;
education 406; embedded autonomy 224“5; sustainable 44“6F; Taiwan 97; technological
external barriers 185; falling birth rates 396; strategy 425“9; technology 181; World Bank
falling death rates 396; FDI 487; fragmented 575
intermediate states 223“4; future prospects economic growth 267“8n24; actual rate 260f8.2;
531; global partnership 10; goals 14, 32, adjustment policies 531; agriculture 119;
334; hidden potential 140; industrialization barriers 24; capitalism 118; ceremonialism
271, 344; knowledge 274; labor force 255; comparative rates 241t8.1; criterion 30;
275; measurement 30, 36, 63; obstacles 3; debt overhang 546“8; debt service ratios 545;
petro-dollars 204; policy 22; political will development 3, 30, 58, 491; education 405;
158; private sector 297; process 13; rate equilibrium level 111; external imbalances
25; regime change 19; respective levels 30; 520“2; FDI 468; fertility rates 257; food
role of government 213“14, 219, 233; rural prices 118; forced 141; HDI 57; human capital
378“9, 384; social 3, 18, 188F; state activism 424; import substitution industrialization
219; strategies 276“8; strategy switches 443; (ISI) 309; independent technology learning
structural change 19, 31; sustainability 590; capacity (ITLC) 426; individual gain 206;
sustained 124; technology-centered 434“9; industry 300; inequality 258; institutional
unbalanced 151 change 21; investment 318; knowledge
development banks 286“7F 259; law of capital accumulation 109; law
development economics: foreign aid 585; of diminishing returns 248; long term 132;
theories 13 measurement 33“6, 429; model 124(4.1),
developmental states 234, 225f7.1; imbalance 125(4.2), 125(4.3); pace 312; physical capital
231 accumulation 114, 240; political stability
diminishing returns 265n5; import substitution 257; potential rate 260f8.2; PPP 47; pro-
industrialization (ISI) 309 poor growth 580; rate of increase 128; rates
disguised unemployment: hidden potential 156; 244, 246, 262, 443; regional 3; research and
surplus labor 156; unpaid work 144 development 441; schooling 405; Smith,
division of labor: productivity increase 114; Adam 112; standard of living 396; structural
Smith, Adam 112“14 change 273“5; structural transformation
415; sustainable 44“6F; sustained 124;
Domar, evsey: aggregate economic growth
process 130“1; growth theories 109 technological change 422; technological
domestic market: size 277, 283“4 progress 73; technology 259, 296, 405, 441;
Index 601
total factor productivity (TFP) 431“2; training 20; encouragement 442; increased 314;
405; trends 14“15; welfare 529 indigenous nucleus 435; market entry 296;
economics: defined 19; Keynesian 203“4; skills 434
liberalism 203; neoclassical 19; new environment: damage 65, 475; healthy 31;
development 226F lack of restrictions 455; pollution 62F, 186;
economies of scale 142F; agriculture 376; sustainability 9
imports 173; lack of 455; linkage effects 149 environmentally-adjusted Domestic Product
economy: closed 33; external vulnerability (EDP) 44F
173; global 491; import substitution equality 14, 31, 32
industrialization (ISI) 191; income Ethiopia 36, 40
distribution 320“1; institutional structure ethnicity: Bauer, Lord P.T. 210; discrimination
251; interdependence 272; international trade 345; income distribution 344; poverty rates 12
314; market size 332; open 119; stabilization Europe 10, 14, 91
program 567“8; steady-state equilibrium 130; European Union (EU) 23, 460
transformation 290 Evans, Peter 195F, 230F, 233; developmental
education 338n20, 418n1; access 14, 31, 32, 258, states 228“31; internationalization 455;
259; bias 344“5; ceremonialism 182; child meritocracy 224; theory of the state 220“3
mortality 405F; class size 408; costs 411; Evenson, Robert E. 284; technology 423, 425
dependency ratio 414t12.6; distribution 8; exchange rates: balance of payments 515“17;
economic growth 258; enrolments 406; falling band 512; bilateral 525, 503t15.3; crawling
birth rates 396; GDI 54; human capital 391; peg 512; defined 503“4; equilibrium 505“7;
increased 20, 303n4; individual value 409; equilibrium level 509, 510“11F, 519;
infant mortality 403; labor force 277, 353F; fixed 507“9; fixed rates 527n9, 508f15.2;
lack of investment 346, 370; levels 250“1, floating rates 505f15.1; free floating 504“7;
273“4; optimum level 410f12.2; organization inflation 514“15; managed floating rate
22; post-secondary 413; primary 9, 406, 511; misalignment 522; nominal 512“13;
407; public policies 412; quality 407“8; overvalued currency 520; real 512“13;
social benefits 409“13, 409(12.5), 411(12.6); regimes 526; undervalued currency 521f15.4
socially optimum level 411; student-teacher export processing zones (EPZs) 475“80;
ratio 407“8, 418; technical focus 428; backward linkages 477; circuit of capital
technology 424“5; universal 406; women 400, 481f14.1; defined 476; environment 483F;
401“2; years of schooling 406 small nations 479“80; wages 488n4; women
efficiency: cash-crop cultivation 371; exports 477F
327“8; increase 21; sharecropping 373; tariffs exports 337n12; ability 314; asymmetry
312; technical efficiency change 259“62 in price 23, 170; beef 170; comparative
advantage 145; competition 89, 179F;
elasticity: supply and equilibrium price
adjustment 171f6.1 decline 543; demand 151“2; dependency
Elliott, Jennifer A. 519F, 543F 352t11.3; development 486F; difficult
embedded autonomy: analysis 233; export substitution industrialization 326;
developmental states 224“5; import diversification 353; earnings 309, 318, 537;
substitution industrialization (ISI) 292“3, 295; easy export substitution 318, 334; efficiency
lack of 231 332; engine of growth 314; high skill
employment 13; creation 149; export processing production processes 465“6; importance 465;
zones (EPZs) 476; growth 313 income 311; industrialization 228; lack of
endogenous growth models: emphasis 249; diversity 174; Latin America 329“30; medium
investment 247“8 skill production processes 465“6; mono-
exports 353; natural resources 322; oil 352;
endogenous growth production function
250(8.1), 252f8.1 optimism 152; performance standard 441;
endogenous growth theory 142F, 262, 265n8; pessimism 140, 145, 164; prices 175“6, 204;
High Performing Asian Economies (HPAEs) primary products 278“9F, 310; promotion
249; positive externalities 314 214“15, 474; recession 544; revenues 387n5;
Engels, Frederick 126F strategies 337n14; structural transformation
England: Industrial Revolution 203; Manchester 316; structures 316t10.2; substitution
Liberals 203; theory of comparative industrialization 312“17; terms of trade
advantage 119“23 278“9F; theory of comparative advantage
Enos, John L. 439F 173; transferable skills 313; value-added 315;
entrepreneurs: barriers 319; efficiency 319“ wheat 170
602 Index
foreign exchange earnings: crisis 311, 320; debt
extreme poverty: evolution 7
burden 538; exports 352; external debt 536;
farmers: cash-crop cultivation 367“71; credit failure to export 329; modernization 162;
needs 371; export crops 369; self-sufficiency modest 375; natural resources 322; outflows
355 514; shortages 310“12, 334; toxic waste 519F
farming: contract 374; export crops 369; labor foreign exchange reserve assets: depleted 502,
force 369“70; monocrops 367; production 522“3; fixed rates 508“9; overvalued currency
368t11.5; size and yields 381f11.1; soil 518“19; sales 500; savings 499“501
degradation 343; speciality crops 368“9; foreign investment 191“2; Korea 315F;
staple crops 368; sustainable management subordination 314
342; transgenic crops (TCs) 366“7 France: colonies 96“7; economic development
FDI: macroeconomic studies 468 18; trade tariffs 92
Fei, John 157F free market 204; social overhead capital projects
Fei-Ranis model 157F 211
fertility rates: decline 401, 413; determinants free trade 135; consumption possibilities 119;
402(12.4); education of women 400“2; family periphery nations 175“6; Ricardo, David 119;
incomes 400“2; family planning 402; income Smith, Adam 113; specialization 120, 169
and education 401t12.3 Furnivall, J.S. 85F
fertilizers 365, 367, 374 Furtado, Celso 168, 187“9F; Economic Growth
feudalism: decline 76, 80; transition 110 of Brazil, The 187F
Fieldhouse, David 79F, 95, 207; industrialization
97 Gambia: overvalued currency 510“11F
finance: availability 277; funding 102; improved gender: bias 345F; equality 9; poverty rates 7
institutions 290; urban bias 371 Gender-related Development Index (GDI): HDI
financial: institutions 23; markets 94; systems 54“5
10, 21 George, Susan 573F
Gereffi, Gary 195F
Fine, Ben 228F
Flamm, Kenneth 487F Germany: economic development 18; income
Fogel, Robert 353F flows 34; trade tariffs 92
food: access 14; imports 368, 387; insecurity Gerschenkron, Alexander 285, 435F; Economic
(malnutrition) 342; malnutrition 366; Backwardness in Historical Perspective 332;
population growth 115; price rises 118; technology gap 433“4
production 387n2; security 343 Ghana: HDI 209; manufacture 97; marketing
forced labor: Africa 90F; colonies 78 boards 208; mature colonialism 206; per
foreign aid 180, 583“9; availability 23, 567; capita income 209; primary products 279F
bilateral 584; bilateral quality index 588f17.3; Ghosh, Jayati 351F
capital formation 461“2; concessional loans Gini coefficient 30, 57“8, 59F, 257; calculation
583; defined 592n1; distribution 583“4; 69“70; defined 42; Uganda 66
enhancement 204; FDI 187F, 189F, 315F, 335, globalization 471“2, 473
458; ideology 588; increase 579; influence government: benefits to industry 327“8; big push
211; International Monetary Fund (IMF) 142; corruption 86, 94, 212, 221“2, 321; as
557“60; loans 557“60; multilateral 584, counterweight 213; education provision 409“
588“9; multinational corporations (MNCs) 13; factional state 217; failure 234; foreign
454, 459“61; procedural limitations 588; influence 185; inefficiency 213; intervention
production 555; qualitative effects 463, 567; 112, 131, 141, 216; labor standards 158;
regional influence 587“8; role in development negative impact 359; performance based
484“5, 487; share 454t14.2; technical aid 454; allocation 327“8; policies 60, 212F, 217, 312;
tied loans 587 public expenditure 173; role in development
foreign currency: borrowed 497“8; income 21, 22, 210“13, 295F; spending 52; spending
earned 493“4; inflows 492“3; net inflows 499; cuts 563, 565; stabilizing function 141; tariffs
outflows 492“3; transfers 494“5 173
foreign direct investment (FDI): defined 459; Great Britain: Argentina 170; colonies 96“7;
development 487; flows 460; Gini coefficient development 22; economic development 18;
471; increase 463“4; multiplier effects 474; empire 81“3; income flows 34; Industrial
positive inflows 482; spillover effects 466“9, Revolution 84; International Development
488 Agency 180; trade tariffs 92
foreign exchange: borrowed 497“8, 517 Green Revolution 350, 353“5F, 386, 488n3;
Index 603
effects 365“6; high yield varieties 362“3; Hirschman, Albert 140, 164; backwards linkages
transgenic crops (TCs) 367 472; Strategy of Economic Development 151;
Griffin, Keith: Green Revolution 363; land technology 436; unbalanced growth 147“51;
distribution 372; land reform 380 unbalancing 521
Grilli, E. 93F HIV/AIDS 9; death 4; opportunity costs 26; Sub-
Gross Domestic Product (GDP) 30, 33“6, Saharan Africa 11
245F, 300; adjustments 36, 63; agriculture Hochschild, Adam 90F
354F; boost 275; decreased 544; economic Hoff, Karla 142F
growth 256; equation 38(2.2), 38(2.3), Hong Kong: current account surplus 496“7F;
39(2.4); exports 441; FDI 462; FDI flows economic success 13; export substitution
460; gross capital formation 547t16.3; growth 313; FDI 461; manufactured exports 317;
272; growth rate 392; HDI 60; higher level neoliberalism 218; technology 261
290; income 47; income per capita 46“7, host nations: embedded autonomy 482“4; size
65; increase 431; independent technology 483
learning capacity (ITLC) 429; output 47; human: capital 21, 253“4; costs 3; goals 31;
price measure 38; reduced 258; value-added suffering 12
exports 315 human capital accumulation 182, 256, 263,
Gross National Income (GNI) 30, 33“6, 245F; 265n10, 416; decreased 321; development
adjustments 36, 39, 63; Brazil 40“2; equation 392; education 415, 428, 407t12.5;
37(2.1); growth rate 392; income per capita externalities 249“50; homogeneity 274;
46“7; multinational corporations (MNCs) improvement 314; increase 325; investment
481; per person 39t2.2; poverty rates 11; rate 405“8, 442; market failures 408“13;
of growth 37 population growth 413“14; reproducible
Gross Progress Indicator (GPI) 44F resources 280; research and development 426;
growth: acceleration 173; antagonistic 151; skills 295; spillover effects 259, 264; training
balanced 140, 146; cutting edge industries 261
331; endogenous models 246, 247“8; human development: capitalist order 110;
high quality 32; inequality 258F; internal education 391, 408“13; growth 73; obstacles
inequality 188F; political stability 257; Solow 3; research and development 426; sacrifices
model 129; sustainable environment 32; 272; schooling 405; structural transformation
unbalanced 140, 147“51, 164; warranted rate 415
of growth 130 Human Development Index (HDI) 30, 245F,
Grunwald, Joseph 487F 53t2.5; adjustments 54“5; Bangladesh 210;
Guatemala: child mortality 405F; equality share calculation 71“2; defined 51; GDP 60; Ghana
of income 40; pesticides 364F; traders 359 209; indicators 50“4; industrialization 275;
Guyana: barriers 23; income per capita 56 Nigeria 209; PPP 52
Human Poverty Index (HPI) 55“6
Hamm, Steve 295F Hunter, Janet 435F
Harris, J.R. 157F
Harris-Todaro model 157F import substitution industrialization (ISI)
Harriss, John 435F 192“3; devaluation 563; difficult 317; easy
Harrod-Domar model 129“31, 132F; formula strategies 280, 298, 308; gains 295“7;
462(14.1) independent technology learning capacity
Harrod, R.F. 138n22; aggregate economic (ITLC) 434; infant industry tariffs 288;
growth process 130“1; growth theories 109 less-developed nations 176; linkage effects
health: maternal 9; toxic waste 519F 296; modernization 276“8; multinational
health care: access 14, 31; girls 405; corporations (MNCs) 452“5; overvalued
improvement 396; lack of investment 347, currency 518; subsidies 285
371 imports: balanced 123; change in composition
Higgins, Benjamin: development 101; dualism 309“10; coefficients 177; composition
100; Economic Development 74; structural 310t10.1; consumer goods 336n2; difficult
transformation 275 import substitution industrialization 317“19;
High Performing Asian Economies (HPAEs): increased 318; infant industry tariffs 284;
economic growth 255; education 406; intermediate goods 310; propensity to import
endogenous growth theory 249; export 165n9, 170, 197n3; reduced 329; repression
substitution policies 321; Gini coefficient 520; substitution industrialization (ISI) 147,
258F 168, 173“4, 187F, 228, 276; tariffs 294F;
604 Index
technology 173 industrialization 303n3, 335; capital formation
income: average 31, 401; crude birth rate (CBR) 147; critical threshold 145; domestic 318;
400; distribution 31, 127, 156, 195F, 258; easy export substitution 313; economic
divergence 240; elasticities 177; elasticity growth 141, 273t9.1; economic stability
179F, 198n8; equality 183; flows 33“6; GDI 173; economic wealth 110; education 179;
54; GNP 141; growth rate 31; increase 8, 153; effects 114; export led (ELI) 228; falling
levels 32, 152; low-level equilibrium trap 244; birth rates 396; government intervention
non-farming 362; per person 31; redistribution 281; homogeneity 271; import substitution
184“5, 216“17; worker remittances 34 industrialization (ISI) 298“9; income
income distribution 30; equality share of income redistribution 224; increase 19; labor-
40, 41t2.3; fertility rates 420n13; inequality 3, intensive 295; less-developed nations 151,
57; pro-poor growth 581 194; linkage effects 276; opposition 272;
income levels: equality 175“6; regional 3 periphery nations 176; prevented 208;
income per capita: biased view 51; convergence promoted 96; rapid 310; reorganization 280;
128, 264n1; development 63; distribution sacrifices 271; sequenced industrialization
22, 268n28, 321, 365; divergence 261“2; 317; social development 188F; specialization
economic progress 32; growth criterion 33; 252; structural changes 173; technology
HDI 56“7; higher level 127; increase 75, 179F; total output 272; transitional
113, 173, 401; Marx, Karl 127; maximum inefficiencies 281“4
level 118; measurement 57; redistribution industry: IT 294F; monopoly capitalism 191;
294“5F; relative convergence 264“5n4; wages 155
rising 110 inequality: growth 59F; income distribution 3
infant industry tariffs 301; dynamic welfare
independent technology creating capacity
(ITCC) 425“6, 444, 446n4 gains 290; impact 287f9.2; investment 285;
justification 289“91; time limits 291“2;
independent technology learning capacity
(ITLC) 425“6, 444, 446n4 transitional inefficiencies 284
India: agriculture 351F; barriers 23; cash-crop inflation: control 563; exchange rates 512“13;
cultivation 83; caste system 345; class size increased rates 539; International Monetary
408; colonialism 81“3, 221; corruption 227F; Fund (IMF) 564; Keynesian economics 204;
de-industrialization 87“8; development 36; Mexico 218; policies 543
difficult import substitution industrialization infrastructure: agriculture 353F; development
319; economic development 97; export 161F; export processing zones (EPZs) 476;
profile 317; FDI 464; foraging 378F; GDP improvements 290; investment 207, 297, 377;
65, 272; Green Revolution 350, 351F, 363“5, lack of investment 346“50; modernization
381; import substitution industrialization 282“3; multinational corporations (MNCs)
(ISI) 278; income distribution 365; income 479; physical 21, 22, 90F; social 259;
per capita 16, 4748; infant industry tariffs spillover effects 466
292; intermediate state 221; investment institutional change: accountability 21;
547; land ownership 351F; manufactured development 21; expansion 161
exports 316; meritocracy 225; multinational institutional reform: development 185
corporations (MNCs) 319; net burden 85; institutions: economic growth 254; importance
per capita income 279F, 294“5F; per capita 332“3
income convergence 245“6F; poverty 13; intellectual property rights: less-developed
poverty gap 8; social costs 321; structural nations 429
transformation 318; take-off to sustained International Bank for Reconstruction and
growth 162; taxation 81“2; tsunamis 3“4; Development see World Bank
wheat production 81“2 International Development Agency 180
indivisibilities 144, 165n4 International Development Association (IDA)
Indonesia: child mortality 405F; corruption 570, 571F, 572“3
227F; education 416; education budget 412F; International Finance Corporation (IFC) 571F
Green Revolution 354F; income per capita 56; International Labour Organization 50
negative technical efficiency change 261; per International Monetary Fund (IMF) 23; austerity
capita income 412F; primary education 412F; measures 520, 563“7, 566t17.2; Buffer Stock
subcontracting 457F; tsunamis 3“4 Facility (1969) 560; Compensatory Financing
Industrial Revolution: benefits 117; economic Facility (1963) 560; compression effects
growth 249; England 203; factory system 82; 566“7; concessional loans 534; conditionality
Great Britain 84, 109; knowledge 252 559F; Contingent Credit Lines 561;
Index 605
developing nations 559; Enhanced Structural Kay, Cristóbal 189F; de-agrarianization 361;
Adjustment Facility 561; expansionary non-farming income 362
effects 566“7; Extended Fund Facility Kenya: average income 64; child mortality 405F;
(1974) 561; foreign aid 555; high quality colonialism 347“8; HDI 52; income per capita
growth 32; history 556“7; impact 567“70; 40; land settlement 206; manufacture 97;
import substitution industrialization (ISI) manufactured exports 317; transfer pricing
569; influence 211, 555; involuntary lending 469“70; unpaid work 43F
544“5; Krueger, Anne 216; loans 562t17.1; Keynesian economics 131; policies 203“4
membership 557f17.1; national sovereignty Khan, Joseph 228F
577; negative influence 185; neoliberalism Khan, Mushtaq Husain 228F
218; objectives 562“7; Oil Facility 560; Point Killick, Tony 568“9
Four Aid 99; Poverty Reduction and Growth knowledge 267n21; acquisition 314; advanced
Facility (1999) 561; Poverty Reduction 21; availability 18; best practice 315;
Growth Facility 583; Poverty Reduction competition 217“18; costs 282F; growth 248;
Strategy Program (PRSP) 579“83; Poverty increase 250“1, 253; lack of 319; reproducible
Reduction Strategy Programs 570; Prebisch- resources 280; research 248; technology 413,
Singer hypothesis 172; repayments 589; 423; transfer 468, 480, 586“7
role in development 569“70; stabilization Kohli, Atul 189F, 295F; industrialization 233“4;
program 581; stand-by arrangements 557“60, State-Directed Development 221
568, 591; Structural Adjustment Facilities Korea 231“3, 315F see also South Korea;
561; Supplemental Reserve Facility 561; average income 64; class size 408;
surveillance 561“2 colonialism 221; corruption 227F; debt
international trade 23; benefits 175“6; biased burden 542; dependency ratio 413; difficult
183; structural differences 175“6 export substitution industrialization 326;
investment 37, 540(16.1), 540(16.2); balanced economic development 97; education
146; coordinated 145; debt overhang 547; 413; electronics industry 230F; embedded
decline 564; employment 480; endogenous autonomy 231, 233; equality share of
growth theory 253; FDI 461“2; foreign income 40; export substitution 313; export
191“2; foreign aid 295F; foreign currency substitution policies 321; exports 214; FDI
499; hidden potential 143; income 128, 129; 438, 485; GDP 272; Gini coefficient 59F; HDI
income increase 130; increase 161; increasing 56; import substitution industrialization (ISI)
returns 164n2; infant industry tariffs 285; 278, 291; increased debt 533; independent
infrastructure 207; international 23; lack of technology learning capacity (ITLC) 425;
92; large scale 144; output 130; physical investment 547; manufactured exports 317;
capital 259; portfolio 464; private 220; private multinational corporations (MNCs) 484; net
sector 294F, 565; profits 155, 156; public 220; benefits 97; research and development 426“7;
rates 430F; research 251; savings 239“40, rural development 385; Samsung 326F;
242t8.2; social capital 253“4; technology 155, sequenced industrialization 316; steel industry
424“5; theory 246“7; upstream 148; wage 439F; technology 435F, 439F; virtuous circle
repression 566 effects 479
Italy: corruption 226F Krueger, Anne 235n9; factional state 217; new
political economy 575; rent-seeking 234; rents
Japan: colonialism 221; corruption 226F; 216“17
difficult export substitution industrialization Kuznets inverted U hypothesis 30, 65, 74, 581,
326; economic development 18; economic 58f2.1
success 13; equality share of income 42; Kuznets, Simon: criticizes Rostow 162; Kuznets
export substitution 313; FDI 460; import inverted U hypothesis 57“61; skills 434;
substitution industrialization (ISI) 278; technology 424
income flows 34; independent technology
learning capacity (ITLC) 425; natural labor: international division 172; productivity
population growth rate 394; net benefits increase 113
97“8; PPP 50, 64; research and development labor force: agriculture 152, 300; attitudes
426“7; sequenced industrialization 316; state 149“50; children 402; constant growth 130;
intervention 214“15; technology 261; trade cumulative migration 276; difficult import
tariffs 92 substitution industrialization 320“1; disguised
Johnson, Simon 79F unemployment 144, 153; distribution 274t9.2;
division of labor 197, 208; education 251,
606 Index
277, 391; employment opportunities 295; (EPZs) 475“80; exports 465t14.4, 473t14.5;
growth 125; hidden potential 143, 147; lack FDI 482; gains 18; global market forces 91;
of protection 455; low wages 359; migration history 84; independent technology learning
271, 274, 312, 373; movement 152, 308; capacity (ITLC) 429, 443; industrialization
productivity 274; quality 405; supplies 157; 194, 454; intellectual property rights 429; lack
supply link 153; surplus 140, 164; technology of middle classes 101; low-income 15“18;
423; training 21, 144; transfer 298, 301 middle-income 15“18; periphery 169, 170;
Lal, Deepak 213“16; dirigiste dogma 213; resource flows 463t14.3; strategic integration
Poverty of Development Economics, The 213 590; strategies 555; technological culture 436;
land ownership: distribution 22, 257, 274, 323, technology 443; technology gap 433
365; India 351F; inequality 348; Korea 384; Lewis, Colin M. 435F
large holdings 371“3; poverty 359; power Lewis, Sir Arthur 140, 151“9; agricultural
relations 372; smallholders 354F; tenure surplus labor model 154f5.1(a); development
systems 342, 373, 361t11.4; titles 379; tribal 581; dual-economy model 275“6; industrial
surplus labor model 154f5.1(b)
207
land reform 379“83; agriculture 348“9; fraud life expectancy 55; GDI 54; Sub-Saharan Africa
380; landlord bias 344, 380; negotiated 379; 11
state led 381; urban bias 382 linear aggregate production function 250(8.2)
land usage: capitalist 373; renting 371“3; linkage effects: backwards 140, 143, 148“9,
sharecropping 371“3 314, 318, 435; forwards 140, 148“9, 314;
Latin America 59F; comparative incomes 325F; industrial 148; international institutional
credit allocation 93“4; culture 78; current 555“6; investment 149; multiplier effects 480;
account deficit 496F; debt 93“4, 204; debt skills transfer 471“3; spillover effects 466;
overhang 546“8; decline in fertility rate technology transfer 471“3
401; dependency analysis 185; difficult Lipton, Michael: biotechnology 365; economic
import substitution industrialization 317“18, growth 209; Green Revolution 363; urban
319; divergence 241; economic crisis 204; bias 344
economic growth 13; equality share of income literacy 55; adult 346; gender 12; levels 22; rates
17; export promotion 330; exports 317, 412F; Sub-Saharan Africa 10; women 405F
329“30; external debt accumulation 530; FDI living standards: differences 12
461, 464, 484“7; growth 256, 273; import Lorenz curve 30, 70f2.1A
substitution industrialization (ISI) 192“3, 278; Love, Joseph 189F
income per capita 15“16; increased debt 533; Lucas, Robert 251, 253
infant industry tariffs 292; land misuse 378F; Luce, Edward 351F
land tenure systems 373; linkage effects 149; Luedde-Neurath, Richard 315F
living standards 12; manufactured exports Lugard, F.D. 206“7, 234n2
317; multinational corporations (MNCs)
319“20, 436, 473, 484; negative technical macroeconomics: human capital accumulation
efficiency change 261; non-cohesive states 441; stabilization program 580; technology
222; periphery nations 170; Rostow, Walt 442“3
Whitman 161F; social costs 321; structural Maddison, Angus 85F
transformation 318; total factor productivity Maizels, Alfred 93F, 179F; net barter terms of
(TFP) 433; vertically integrated companies trade (NBTT) 172
452 Malaysia: average income 64; ethnicity 345;
HDI 52; income per capita 47; negative
law of capital accumulation: economic growth
109; Smith, Adam 112 technical efficiency change 261
law of diminishing returns 128“9; broken 248; M¤ler, Karl-Göran 62F
Solow, Robert 131 Mallorquín, Carlos 189F
law of eventually diminishing returns: Malthus, Thomas: Essay on the Principle of
agriculture 118 Population 114; food production 116F;
legal system: development 21; role in population problem 392“4; theory of
population 109, 110, 114“18
development 22
Leopold II, (Belgium) 90F manufacture: control of supply 171;
less-developed nations 14; agriculture 342; development 161
attitudes 185; colonialism 190; colonies 26, manufacturing: exports 314; increase 19
76; credit 94, 95“6; demographic transition market: domestic vertical integration 318;
396“7; dualism 153; export processing zones exchange rates 514“15; forces 91; growth
Index 607
potential 277“8; size 304n6; societies 110; mortality: children 9; infants 11, 27n10
systems 110, 112, 213, 218 Mozambique: average income 36; PPP 48“50;
market failures 140, 165n3, 234, 305n22; unpaid work 43F
education 408“13; institutional inadequacy Multilateral Investment Guarantee Agency
282F; role in development 22; size of (MIGA) 571F
government 211“13 multinational corporations (MNCs) 338n19;
Marshall, Alfred 14; Principles of Economics 19; bargaining with 482“4; capital formation
sharecropping 372 463“4; collateral effects 463“4; control of
Marshall Plan 74; post war development 140 global commodity trade 453t14.1; costs
Marx, Karl 14; Capital 110, 126“7; capitalism to host country 469“71; defined 451;
109; colonialism 77 development 480“2; diversion effects 470“1;
McNamara, Robert (President, World Bank): domestic market 466; employment 458“9;
absolute poor 6“7; basic human needs environmental degradation 475; export
approach 572“3 promotion 330; factor displacement 437; FDI
measure of economic welfare (MEW) 44 454, 459“61, 464; flexible manufacturing
Meier, Gerald: criticizes Rostow 162“3; import 456“7; global economics 461; global factory
substitution industrialization (ISI) 214 system 455“9; global production 471;
Mellor, John 342, 376“7 globally integrated production 455“9; impact
merchant capitalism 80“1, 103; industrial 26; import substitution industrialization (ISI)
capitalism 86; slave trade 83 452“5; income distribution 471; income
Mexico: agricultural growth 383; attitudes transfers 470; independent subcontractors
150F; average income 36; colonialism 456; industrial concentration 471; intra-firm
80, 347; corruption 226“8F; debt burden trade 460“1; investment 33; knowledge
541“2; debt crisis 383, 537“8F; debt for transfer 468; local content legislation
nature swap 543F; debt moratorium 544; 486F; logging 476F; modernization 463“4;
debt service ratios 541“2; demographic nationalization 453“4; production linkages
crises 78; denationalization 461; dependent 464; reverse engineering 468; role in
development 195F; disarticulated economy development 23, 437“9; size 484t14.6;
471; ejido system 382“3; environment 483F; skills transfer 464; subcontracting 488;
export processing zones (EPZs) 477“8; technological diffusion 436“7; technology
export profile 317; export substitution 319; technology transfer 466; transfer pricing
330; Gini coefficient 59F; HDI 52; import 469“70; unions 478F; vertically integrated
substitution industrialization (ISI) 278, 291; companies 452, 479, 480“2
income distribution 324; income flows 34; Murphy, Kevin 142F
income per capita 40, 47; increased debt 533; Myrdal, Gunnar 168, 216; Asian Drama 183,
independence 84F; inflation 513; land reform 358; cumulative causation 183; Economic
382“3; lean production techniques 458; living Theory and Underdeveloped Nations 183;
standards 12; Nafinsa 286F; neoliberalism institutionalist theory 169, 182“5; Nobel
218; oil exports 537“8F; overuse of land 348; Memorial Prize in Economic Science 180;
overvalued currency 511F; pesticides 364F; state policy 184
seed research 362; structural transformation
433 Nafinsa: Mexico 286F
middle classes: formation 186; indigenous Nepal: peasant farmers 378F
207“8; lack of 101 net barter terms of trade (NBTT) 197n4; decline
Middle East: divergence 241; fertility rates 172
401“2; income per capita 15; non-cohesive net errors and omissions 501
Netherlands: empire 80“1
states 222
migration: international 163, 361, 395; rural to new development economics 226F
urban centres 20, 157F, 266n16, 267n19, 274 New International Economic Order (NIEO):
Mill, John Stuart 14, 84F, 110 revised global economy 204
Millennium Development Goals (MDGs) 10F, New Political Economy 220
590; education 408; foreign aid 585“6; global Nicaragua: primary products 279F
obligation 14; Goal 7 45F; HIV/AIDS 399F; Nigeria 234“5n4; colonialism 221; economic
infant mortality 418; progress 26; United development 208; exports 207; FDI 460;
Nations 9“10 HDI 209; manufacture 97; marketing boards
Momsen, Henshall 576“7F 208; mature colonialism 206; non-cohesive
mono-exports: boom-bust 353; colonies 89 states 222“3; per capita income 209; primary
608 Index
products 279F aggregate income 36; low level 146; Mexico
North American Free Trade Agreement 325; Nigeria 209; population growth 186,
(NAFTA) 23 392, 394; population size 341; Solow model
Nurske, Ragnar 140, 145“7, 164 129(4.5); Taiwan 325; technology 423;
Thailand 229F
Ocampo, Jos© Antonio: economies of scale 179; periphery nations: dependency 190; export
terms of trade 172 strategies 173; industrialization 173;
Official Development Assistance (ODA) 584; restructure 173; terms of trade deterioration
adjustment programs 589; donor bias 587; 172
flows 586t17.4 Peru: child mortality 405F; colonialism 80;
oil: prices fall 204; prices increased 530 demographic crises 78; education 255
opportunity cost: internal 120 pesticides 364F, 374
oral rehydration therapy (ORT) 5F petro-dollars: development 204; recycling
Organisation for Economic Co-operation and 531“3, 543
Development (OECD): economic growth 429 Philippines: HDI 54; land reform 379“80;
Organisation of Petroleum Exporting Countries pesticides 364F; worker remittances 34
(OPEC): absorption problems 532F; increased physical capital 21, 109, 256; productivity 253;
revenues 531“3; oil prices 530; petro-dollars reproducible resources 280
204 physical capital accumulation 111, 114, 119, 125,
output: efficiency 76; increase 8, 76 127“8, 239; savings 132
outsourcing: export processing zones (EPZs) physical quality of life index (PQLI) 50“1
456; free trade zones (FTZs) 456 Pingali, Prabhu 364F, 367
overseas development aid (ODA): increased Plosser, Charles I. 246“7
poverty 10 policies: adjustments 531; choices 311, 323“5;
development 22, 590“1; distorted 293;
Pakistan: class size 408; equality share of economic development 111, 251; economic
income 40; GDP 64; HDI 56; HPI 55; theories 141; errors 539; exchange
rates 521“2; export led industrialization
independent technology learning capacity
(ITLC) 435F; manufactured goods 279F; (ELI) 228; fiscal 146; free market 217;
pesticides 364F; political power 435F; government failures 377; Harrod-Domar
population growth 398 model 131; hostile 437; import substitution
Palaskas, Thedsios 93F, 179F; net barter terms of industrialization (ISI) 176; imposed
trade (NBTT) 172 194; independent technology learning
para-state firms: social capital 297“8 capacity (ITLC) 440“2; international 99;
Park, Woo-Hee 439F intervention 323“4; long term growth 253;
Parra, Maria Angela: economies of scale 179; macroeconomics 435; market distortion
terms of trade 172 291; multinational corporations (MNCs)
path dependency 79F, 96; adverse 93, 168, 244, 439, 487; past errors 331“2; resources
531; change 102; dualism 100; economic endowment 280; theory of comparative
growth 427“8; effects 78, 123, 184; growth advantage 124; total factor productivity
243, 253; post-colonialism 73; strategy (TFP) 442t13.4
switches 325; technological capacity 434 political: independence 22; systems 73; will 8,
peasant farmers 386; efficiency 358“62; 331“2
inefficiency 358“9; land holdings 381; pollution: affluence 45F; poverty 45F; Sub-
resistance to change 357; self-sufficiency 360; Saharan Africa 11
small cultivators 344; transgenic crops (TCs) population: average income 36“7; growth 16“17,
366 75“6; Malthus, Thomas 109; problems 392;
Peemans, J.P. 90F size 36
per capita food production: changes 350t11.2 population growth 138n16; actual rate 393t12.1,
per capita income 263, 303n4, 12t1.2; 394(12.3); agricultural growth 349; annual
agriculture labor force 274“5; Brazil 325; natural rate 394; annual rate of growth 163,
conditional convergence 255; convergence 342“3; dependency ratio 413; falling rates
138n16, 239“46, 254“5; distribution 257; 393, 414; food production 115; income
economic growth 254t8.3; exports 279F; 418n2; income per capita 115, 129; increase
future growth 212F; Ghana 209; growth 194, 393; increased rate 397; migration 394;
243; growth rate 256; growth trend 75f3.1; natural rate 394(12.2), 395t12.2; per capita
increase 275, 393; Korea 325; level of income 186; policies 131; poverty 392(12.1);
Index 609
preventive checks 116; rapid 419n4; rates public policies: development goals 30;
392“3; unemployment 196 environment 45F
Portugal: empire 79“80; textile industry 123; public sector: as counterweight 213; economic
theory of comparative advantage 119“23; interference 210“12; efficiency 31
trade deficit 124 purchasing power parity (PPP) 30, 49(2.5),
Potillo, Jos© Lopez (President, Mexico) 204 49t2.4; comparisons 47“50; HDI 52, 60;
poverty: eradication 9; extremes 110; gap 7“8; industrialization 273; measurement 63
headcount ratio 11; Korea 384; Malthus,
Thomas 114; measures 25; permanent Ranis, Gustav 157F, 313; export promotion 330
reduction 8; profile 8 Reagan, Ronald (President, United States of
poverty rates: China 10; decrease 7; extreme America) 204, 205
poverty 7; gender 7; human costs 3; measures regional trade association 330F
27n4; rural 363; severity 7; social costs 3; regions: economic growth 3; income levels 3
trends 3 religious traditions: role in development 22
Poverty Reduction Strategy Program (PRSP) rents: import substitution industrialization (ISI)
579“83, 589“91; analysis 581“3; engineered 292; income appropriation 221“2; windfall
consent 582; key elements 580 profits 118
Prebisch, Raúl 178; development policy 170; Republic of the Congo: GDP/GNI gap 47
research and development 427t13.1; diversion
Economic Development of Latin America and
its Principal Problems, The 171; structuralist effects 470“1; independent technology
theory 169“74 learning capacity (ITLC) 426; positive
Prebisch-Singer hypothesis 168, 172, 175“6 externalities 440; taxation 439
prices: current 37, 38; declining real commodity resources: allocation 291; endowment 280, 391;
prices 177f6.2; elasticity 170; nominal 37 environmental 46F; expansion 280; inefficient
primary products: exports 303, 310, 335, 465, allocation 282F; limited 147; natural 22, 90F,
592n6; global trade 452; mono-exports 350; 332, 335; reallocation 161“2; reproducible
replacement 313; specialization 303n4 280; resource curse 322“3, 335; student 24“5
privatization 235n5; Mexico 218 responsibilities: developed nations 5
production 130; aggregate 127(4.4); backwash Reynolds, Lloyd 75; growth 243
effects 458; capital-intensive 470“1; capitalist Ricardo, David 14, 110; law of diminishing
methods 76, 100; cash-crop cultivation returns 133“4; sharecropping 372; theory of
369“71; consumption 122f4.2; costs 283f9.1; comparative advantage 119“23, 135, 169,
culture 73; decreased 118; domestic 288; 175“6; theory of diminishing returns 109,
domestic possibilities 119; economies of 118“19
scale 283; factors 123; growth 15; hazards Rigg, Jonathan: de-agrarianization 361; non-
186; hidden potential 143; home 42“3; farming income 362
intermediate goods 319; labor intensive Robinson, James 79F
277; lean techniques 457“8; material 37; Robinson, Joan 30; exploitation 156; free trade
mechanization 150; methods 20, 75; non- 123
durable consumer goods 277“8; patterns Robinson, Ronald: collaboration 86
18, 91; population growth 391; quality 466; Rodney, Walter 90F
relative cost 120; rural 75; small scale 341; Rodrik, Dani 215, 254, 262; Gini coefficient
social conditions 74; structures 152; tertiary 257; public policies 259
318; transitional inefficiencies 282 Rosenstein-Rodan, Paul 99, 140; theory of the
production possibilities frontier (PPF) 120, big push 142“4
137n8, 306n24; agriculture 298; import Rostow, Walt Whitman 140; agriculture 355;
substitution industrialization (ISI) 299f9.3; colonialism 164; economic development 141;
technology 259“60, 423 stages of growth theory 159“64
productivity: education 409“13; increase 113, rural areas: food security 343; poverty rates 12
150; increased 20, 173, 422; low 146; per Russell, Phillip 364F
worker 152; rate of increase 125 Rwanda: average income 36, 64; HDI 52; PPP
profits: capitalists 118; hidden potential 469; 50
maximization 111; repatriated 481
progress: barriers 13 Sabelli, Fabrizio 573F
property rights: defense 21; distribution 373; Sabot, Richard 59F
environment 378F Sachs, Jeffrey 399F; End of Poverty, The 25,
protectionism 304n9; politics 293 585; population growth 116F; terrorism 4
610 Index
Salter Effect 430F income distribution 324“5; income per capita
Salter, W.E.G. 430F 16, 40; industrialization 218“19, 384; labor
savings 138n14, 264n2; economic growth 133; repression 324, 338n22; negative technical
forced 146; income 128, 129; output 130; rate efficiency change 261, 263; neoliberalism
of 141; reduced 145“6 218; Saemaul Undong 382, 383“5; trade
Senegal: population growth 398; transnational tariffs 92
corporations (TNCs) 375 specialization 135, 137n9, 267n20; capitalism
Shaban, Radwan Ali: sharecropping 372 112“13; efficiency 123; labor 114; theory of
sharecropping 371; efficiency 373; fixed rents comparative advantage 119“21
384; production levels 372“3 spillover effects 142F, 278; technology transfer
Shleifer, Andrei 142F 466
Singapore: civil service 328; corruption 185; Spraos, J. 93F; terms of trade 172
current account surplus 496“7F; education Sri Lanka: exchange rates 514“15; export
413; FDI 461; manufactured exports 317; processing zones (EPZs) 478; HDI 60; income
negative technical efficiency change 261; per capita 56; pesticides 364F; tsunamis 3“4
neoliberalism 218; research and development Srinivasan, T.N.: ethnicity 210
426 stages of growth theory: mass consumption 163;
Singer, Hans 174“5; industrialization 178“80; maturity 163; preconditions for take-off 160;
structuralist theory 169 take-off to sustained growth 160; traditional
slave trade 77; merchant capitalism 83 society 159“60
smallholders: education 382; indigenous Stallings, Barbara 484“5, 487
population 348; overuse of land 348; poverty standard of living: average 36; decline 74;
359 improvement 156; increase 31, 113, 116F;
Smith, Adam 14, 133; capitalist market economy increased 20, 194; investment 129; national
109; human nature 73; Inquiry into the Nature 47
state: capacity 228; captured 293; corruption
and Causes of the Wealth of Nations, An
110, 114, 252; invisible hand 111“14, 206; 217; custodian role 228; developmental 220,
market system 213; market transactions 169; 224“5, 228“31, 225f7.1; economic growth
sharecropping 372 203; efficiency 223“4; endogenous 217, 224;
social: benefits 306n23; classes 12, 22, 31; fragmented intermediate 223“4; husbandry
conditions 74; convention 181; costs 3; role 230“1; independence 293; industrial
development 3, 18; goals 31; per capita strategies 440; inefficiency 217; intermediate
income 44; progress 30; structures 73, 82; 220; intervention 234, 295F; investment
transformation 297; values 272 346; midwife role 230; non-cohesive 221“3;
social overhead capital 143“4, 158, 162, 346 policies 294F, 442; predatory 220, 221“3,
social security 14, 402“3 293; privatization 217; producer role 228“30;
socialism 192, 194 production 435; rent-seeking 217, 226F; role
society: change 271; development 126; in development 22, 205, 219; role in economy
education 409“13; saving behavior 111; social 575; role in transformation 203
values 272; technology 424; transformation state-owned firms: expansion 297; social costs
74; transition 214 297
Solow, Robert 132F; development economics Stiglitz, Joseph 142F, 220, 282F; Globalization
129“30; equation 136; growth model 109; and Its Discontents 570
Harrod-Domar model 131; neoclassical strategy switches 322, 334, 336n4; development
growth model 127“9; neoclassical growth 308, 331; foreign exchange earnings 311;
theory 239, 242“3; technology 424 foreign exchange shortages 318; premature
Solow-type production function 128f4.3 319“20
Somalia: barriers 23; dependency ratio 413; structural adjustment lending: income inequality
migration 395; natural population growth rate 589
394; tsunamis 3“4 structural adjustment loans (SAL): conditions
South Africa: HDI 54; land ownership 346; 573“5; effectiveness 575“6
negotiated land reform 379 structural change 19, 271, 308
South Korea 204“5 see also Korea; average structural transformation 303n2; Asia (East) 319;
income 36; banking 324; civil service 328; debt overhang 546“8; development 278“9F,
colonialism 383“4; current account surplus 285; dualist models 157F; exports 537;
496“7F; developmental state 232f7.2b; external barriers 530; failure 548; goals 334;
economic success 13; growth 244; HDI 406; import substitution industrialization (ISI) 297;
Index 611
industrialization 271, 274, 299, 396; labor 91, 113, 114; proprietary 319; public good
transfer 275; Latin America 318; managed 445n1; reproducible resources 280; research
external disequilibrium 521; stages 331f10.1; and development 426“9; self-sufficiency
strategy 434; technology 422, 440, 445n3 182; structuralist theory 181; total factor
Sudan: agriculture 26; debt burden 542 productivity (TFP) 429“34; traded goods
supply and demand: decreased prices 145; 175“6; transfer 268n30, 315F, 466, 471“3,
invisible hand 111 488, 586“7; upgrading 314
sustainable development 44“6F terms of trade 171“3, 179F, 196“7; comparative
Sweden: Myrdal, Gunnar 183; welfare 183 advantage 91“3; decline 474; deterioration
172, 176, 204; exports 278“9F; import
Taiwan 204“5; banking 324; colonialism 221; substitution industrialization (ISI) 173“4;
current account surplus 496“7F; difficult importance 73; instability 273; institutional
export substitution industrialization 326; structure 178; movement 103; net barter terms
economic development 97; economic of trade (NBTT) 172; structural characteristics
success 13; export substitution 313; 178“80; trends 93F
export substitution policies 321; FDI 485, Thailand: barriers 23; education 346, 413;
486“7F; growth 244; import substitution fragmented intermediate states 229F; Gini
industrialization (ISI) 291; independent coefficient 59F; literacy 405F; per capita
technology learning capacity (ITLC) 425; income 229F; technology 261; tsunamis 3“4;
industrialization 218“19; manufactured undervalued currency 510“11F
exports 317; multinational corporations Thatcher, Margaret (Prime Minister, Great
(MNCs) 484; neoliberalism 218; net benefits Britain) 204, 205
97; sequenced industrialization 316; state- theory of comparative advantage: export
owned firms 298; technology 261, 435F; pessimism 215; Ricardo, David 119“23
textiles 289F; trade-related investment theory of diminishing returns: Ricardo, David
measures (TRIMS) 487F; trade tariffs 92; 109
virtuous circle effects 479 theory of the big push 142“4; limited 147
Tanzania: debt burden 542; GDP 64 Third World 12; defined 27n5; Rostow ignores
tariffs 337n9; infant industry tariffs 284, 319; 160
international trade 23; phased out 292; Thomas, Robert 84F
prolonged 293; protective 284, 302; Taiwan Todaro, M.P. 157F
289F; welfare loss 288 total factor productivity (TFP) 445, 446n7,
taxation: avoidance 469“70; colonies 101; 432t13.3; efficiency 429“30; factor
increase 146, 158 displacement 444; increase 440; policies 442
technical efficiency change 259, 263, 261t8.4; toxic waste: trade 519F
negative 261; technological change 260f8.2 Toye, John 209, 216, 578; market failures
technology 385; adaptation 75, 425; advanced 212“13
21; advances 173; agriculture 26, 275, 356; trade: adversarial relations 169; balance 145;
autonomy 425, 436, 443; availability 10; benefits 172, 175“6; deficits 123, 530“1;
best practice 261, 413; capability 428t13.2; illegal 501; power relations 170; volume 178
capacity 439; cash-crop cultivation 369“70; trade tariffs: minimum 120; protectionism 146“7
centered development 434; competition 439; traditional society: destruction 160; pre-scientific
creation 425; defined 423; dependency 437; 160
development 249, 410, 439“40; diffusion training 267n17; distribution 8; increased 20;
436; economic development 181; education independent technology learning capacity
424“5; exogenous progress 127; exports (ITLC) 430F; labor force 21, 277, 290; levels
441; external economies 144; FDI 438; 250“1; management 314; multinational
finance 357; flexibility 132F; homogeneity corporations (MNCs) 438, 480; neglected
274; ignored by Malthus 116“17; imports 321; skills 295
173; improvement 97, 180; increased transition: development 333f10.2
productivity 117, 250“1; independent transitional inefficiencies 301; import
technology learning capacity (ITLC) 438; substitution industrialization (ISI) 281“4;
intermediate levels 297; introduction 126F; infant industry tariffs 290; overcome 296;
investment 145, 424; knowledge 255, 319, protectionism 291“2
423, 444; low-level 313; per capita income transnational agribusiness 374“6
247; preconditions 422; primitive 152; transnational corporations (TNCs): contract
productivity increase 119; progress 18, 20, farming 375; economic growth 193“4;
612 Index
effects 220; foreign ownership 174; market Wade, Robert 435F; exports 486F; governing
concentration 375“6; negative influence 185 markets 291; industrialization 218“19
Trimmer, Peter 354F, 376“7 wages: differences 175“6; higher 20; higher
tropical forests: logging 476F level 158; reductions 563; repression 566
Truman, Harry S. (President,United States of Warren, Bill 168, 196; dependency analysis 194;
America): Point Four Aid 99, 454 Marxism 169
Tsai, Pan-Long 471 water: access 8, 9, 55; infrastructure 387n1
tsunamis: Africa 3“4; India 3“4; Indonesia 3“4; wealth: distribution 31; extremes 110; human
Somalia 3“4; Sri Lanka 3“4; Thailand 3“4 costs 126; measurement 37; redistribution
184“5
Uganda: equality share of income 66; Gini Weisman, Steven 228F
coefficient 66 welfare: access 31; average income 36;
unemployment: globalization 473; rise 14 development 31; free trade 119; home
unions 478F; lack of 455, 457F production 43; improvement 57; Myrdal,
United Kingdom see Great Britain Gunnar 183; social 37; society 44; standard of
United Nations 9“10F; created 18; Decade of living 47; targets 328; weak state 193
Development 141; Economic Commission Westphal, Larry, E. 284; technology 423, 425
of Latin America (ECLA) 169, 174; First Wolfowitz, Paul 226F
Development Decade 74; foreign aid 585“6; women: education 405F; health care 405F;
Human Development Report (2002) 570; post income per capita 405F; invisible adjustment
war development 140; regional Economic 576“7F; labor force 15; role in society 31;
Commissions 25; Relative Prices of Exports unpaid work 43F
and Imports in Underdeveloped Countries 171 work: culture 73; unpaid 42“3
United Nations Conference on Trade World Bank 325F, 364F, 399F, 405F, 412F,
and Development (UNCTAD): World 571F; assistance 333; categorization 15“16;
Development Report 459; World Investment classification of poverty 6; comprehensive
Report 472 development framework 579; concessional
United Nations Development Programme loans 534; convergence 255; country
(UNDP): HDI 56; human development 51; ownership 582; criticisms 577“8; East Asian
Human Development Report 24“5, 64 Miracle, The 249; environment 62F, 573F;
United Nations General Assembly: poverty foreign aid 555; Global Environmental
reduction 9“10 Facility (GEF) 573F; High Performing Asian
United States of America: aid 141; Argentina Economies (HPAEs) 13, 324; influence
170; competition 91; development 22; 169, 211, 555, 578; infrastructure lending
economic development 18; exchange 570“1; integration policy 575; International
rates 513, 514“15; family incomes 15; Development Agency 180; International
GDP 65; income flows 33“4; income per Development Association (IDA) 570“1, 572;
capita 48; independence 84F; International International Finance Corporation (IFC)
Development Agency 180; living standards 571F; Krueger, Anne 216; labor force 429;
12; migration 374; pesticides 364F; Point Millennium Development Goals (MDGs)
Four Aid 98“100; propensity to import 170; 46F; Multilateral Investment Guarantee
trade tariffs 92 Agency (MIGA) 571F; national sovereignty
urban bias: financial sector 371; income 577; negative influence 185; neoliberalism
distribution 369; labor force 370“1; neglect of 218; Point Four Aid 99; policies 220;
agriculture 344; staple crops 368; technology poverty reducing expenditure 581“2; Poverty
370 Reduction Strategy Program (PRSP) 579“83;
Uttar Pradesh (India): Green Revolution 363“5; pro-poor growth 581; project lending 576;
income distribution 365 Reaching the World Poor “ A Renewed
Strategy for Rural Development 354F;
Venezuela: average income 36; FDI 467; repayments 589; sectoral adjustment loans
primary products 279F 574“5; structural adjustment lending 573“5;
Vietnam: average income 36; HDI 56 structural adjustment loans (SAL) 577“8;
virtuous circle effects 140, 142F, 164; Asia sustainable development 578“9; US influence
(East) 244; labor transfer 155; West Africa 572; Washington Consensus 580, 581, 590;
209 World Development Report 11, 24, 33, 212F,
Vishney, Robert 142F 354F
Vreeland, James 564, 566 World Development Indicators 33
Index 613
World Institute for Development Economics Yang, H. 93F
Research (WIDER) 219“20
world market: competition 321; dependence 310 Zimbabwe: debt burden 542“3; education 414;
world poverty: colonialism 75; extent 6t1.1; HDI 52; HIV/AIDS 398“9; lean production
historical conditions 75; human suffering 12; techniques 458; life expectancy 399F; poverty
per capita income convergence 240 rates 4

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