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Article

Lawrence J. Lau

Chinese real gross domestic product (GDP) grew from US$369 billion in 1978 to US$12.7 trillion in 2017 (in 2017 prices and exchange rate), at almost 10% per annum, making the country the second largest economy in the world, just behind the United States. During the same period, Chinese real GDP per capita grew from US$383 to US$9,137 (2017 prices), at 8.1% per annum. Chinese economic reform, which began in 1978, consists of two elements—introduction of free markets for goods and services, coupled with conditional producer autonomy, and opening to international trade and direct investment with the rest of the world. In its transition from a centrally planned to a market economy, China employed a “dual-track” approach—with the pre-existing mandatory central plan continuing in force and the establishment of free markets in parallel. In its opening to the world, China set a competitive exchange rate for its currency, made it current account convertible in 1994, and acceded to the World Trade Organisation (WTO) in 2001. In 2005, China became the second largest trading nation in the world, after the United States. Other Chinese policies complementary to its economic reform include the pre-existing low non-agricultural wage and the limit of one-child per couple, introduced in 1979 and phased out in 2016. The high rate of growth of Chinese real output since 1978 can be largely explained by the high rates of growth of inputs, but there were also other factors at work. Chinese economic growth since 1978 may be attributed as follows: (a) the elimination of the initial economic inefficiency (12.7%), (b) the growth of tangible capital (55.7%) and labor (9.7%) inputs, (c) technical progress (or growth of total factor productivity (TFP)) (8%), and (d) economies of scale (14%). The Chinese economy also shares many commonalities with other East Asian economies in terms of their development experiences: the lack of natural endowments, the initial conditions (the low real GDP per capita and the existence of surplus agricultural labor), the cultural characteristics (thrift, industry, and high value for education), the economic policies (competitive exchange rate, export promotion, investment in basic infrastructure, and maintenance of macroeconomic stability), and the consistency, predictability, and stability resulting from continuous one-party rule.

Article

There are three key literatures on the political economy of development that all emphasize the importance of institutions, but in different and somewhat contradictory ways. These literatures focus on developmental states, good governance, and political economic pathways. The developmental states literature is based largely on case studies of East Asian countries that have, since about 1950, largely “caught up” to the already developed nations in Europe, North America, and the Antipodes. The central conclusion of this literature has been that successful late development requires a competent, committed state bureaucracy, independent enough to be capable of imposing its will on domestic businesspeople, but also sufficiently connected to them so as to make good decisions about what will to impose. The literature focusing on good governance, based largely in economics, also sees state actions and characteristics as keys to positive development outcomes. But while the developmental states literature argues that states need to play an interventionist role in “governing” markets (including not infrequently restricting them), the good governance literature usually looks more favorably on free markets. Finally, research in the political economic pathways literature tends to examine much longer periods of time than the other two literatures, and typically emphasizes economic and political developmental outcomes as joint products of differences in the historical trajectories followed by different countries. The key explanatory variables for this literature are a country’s circumstances in the colonial period, and levels and types of social inequality.

Article

Steven W. Hook and Franklin Barr Lebo

International development has remained a key part of global economic relations since the field emerged more than half a century ago. From its initial focus on colonization and state building, the field has evolved to encompass a wide range of issues, theoretical problems, and disciplinary traditions. The year 1945 is widely considered as a turning point in the study of international development. Three factors account for this: the end of World War II that left the US an economic hegemon, the ideological rivalry that defined the Cold War, and the period of decolonization that peaked around 1960 that forced development issues, including foreign aid, state building, and multilateral engagement, onto the global agenda. Since then, development paradigms have continuously evolved, adapted, and been reinvented to address the persistent and arguably widening gap between the prosperous economies of the “developed North” and the developing and frequently troubled economies of the “global South.” Today, a loosely knit holistic paradigm has emerged that recognizes the deficiencies of its predecessors, yet builds on their strengths. A holistic conception of international development embraces methodological pluralism in the scholarly study of development, while recognizing the multiple ways policy practitioners may productively apply academic theories and research findings in unique settings.

Article

Albert Churella

Since the early 1800s railroads have served as a critical element of the transportation infrastructure in the United States and have generated profound changes in technology, finance, business-government relations, and labor policy. By the 1850s railroads, at least in the northern states, had evolved into the nation’s first big businesses, replete with managerial hierarchies that in many respects resembled the structure of the US Army. After the Civil War ended, the railroad network grew rapidly, with lines extending into the Midwest and ultimately, with the completion of the first transcontinental railroad in 1869, to the Pacific Coast. The last third of the 19th century was characterized by increased militancy among railroad workers, as well as by the growing danger that railroading posed to employees and passengers. Intense competition among railroad companies led to rate wars and discriminatory pricing. The presence of rebates and long-haul/short-haul price differentials led to the federal regulation of the railroads in 1887. The Progressive Era generated additional regulation that reduced profitability and discouraged additional investment in the railroads. As a result, the carriers were often unprepared for the traffic demands associated with World War I, leading to government operation of the railroads between 1917 and 1920. Highway competition during the 1920s and the economic crises of the 1930s provided further challenges for the railroads. The nation’s railroads performed well during World War II but declined steadily in the years that followed. High labor costs, excessive regulatory oversight, and the loss of freight and passenger traffic to cars, trucks, and airplanes ensured that by the 1960s many once-profitable companies were on the verge of bankruptcy. A wave of mergers failed to halt the downward slide. The bankruptcy of Penn Central in 1970 increased public awareness of the dire circumstances and led to calls for regulatory reform. The 1980 Staggers Act abolished most of the restrictions on operations and pricing, thus revitalizing the railroads.

Article

The history of development studies as a field of academic inquiry can be traced most directly back to the Cold War era when public funding for “development studies” went hand in hand with international development as a state project, particularly in the United States. Economists, sociologists, and planners began to take the development of the “Third World” as an object of analysis, partially in response to new funding opportunities and a discursive context legitimating it as a field of study. By the 1960s, geographers began to take (so-called) “Third World” modernization and development as an object of research. Geographers’ engagement with development as intervention, and eventually the exploration of uneven global development as part of the “ebb and flow of capitalism,” can be divided into three waves. The first wave, visible in the early 1960s, took the quantitative spatial models dominant at the time in geography, such as those concerning urbanization patterns, transportation linkages, regional development, and population movement, and began to apply them to “Third World” contexts. This second wave, linked to the turn toward Marxist theory by a new generation of geographers in the 1960s, explored the uneven geography of wealth and power produced by capitalism and launched a powerful critique of development intervention as imperialism. The third wave of debates emerged in the late 1980s–early 1990s and is associated with poststructural and postcolonial critiques gaining traction at the time in geography and related disciplines.

Article

Margaret Sherrard Sherraden and Lisa Reyes Mason

Community economic development (CED) is an integrated and community-driven approach to development aimed at generating wealth, capabilities, and empowerment in low-income and low-wealth communities. Nonprofit organizations partner with public and for-profit interests to develop social and economic investment strategies for community economic renewal and revitalization. Social workers in CED engage in interdisciplinary work in community organizing, leadership development, program development and implementation, social-service management, and policy advocacy. To achieve large and sustainable success, CED requires solidarity with and investment in poor communities by society as a whole.

Article

Valentine M. Moghadam

Economic development gained prominence as a field of economics after World War II in relation to the prospects of what came to be called underdeveloped, decolonizing, developing, or Third World countries. The period between the 1950s and 1980s saw the emergence of various theories of economic development and policy strategies, and the growth of “development studies” reflected cross-disciplinary interest in the subject. In the early decades, women received little or no attention. If women were discussed at all in policy circles, it was in relation to their role as mothers, an approach that came to be known as the welfare or motherhood approach. The field of women in development (WID) emerged in the 1970s. Since the 1990s, women’s participation and gender dynamics have evolved as central issues in the discourse and policies of international development. Along with changes in theories and policies of economic development, WID developed with distinct or overlapping fields known as women and development (WAD), gender and development (GAD), the efficiency approach, and the empowerment approach. Several basic themes can be identified from the literature on women and gender in development, including: all societies exhibit a division of labor by sex; economic development has had a differential impact on men and women, although the impact on women has tended to be conditioned by class and ethnicity; economic policy making and institutions have a gendered nature, and the ways in which macroeconomics and the social relations of gender influence each other.

Article

Human development as a concept seeks to make individuals the driving force behind state development. Even though international organizations (IOs) are formal agreements by and for the benefit of member states and have historically prioritized states’ interests, it can still be argued that human beings have long been the central concern of many IOs, even for some of the oldest surviving ones today. Nowadays, the human development framework appears to serve as the principal intellectual and normative construct regarding how to achieve national economic growth while building broad social justice and opportunity for individuals. Its allure derives as much from its coherent philosophical critique of past empirical development failures as it does from its incorporation of values and ethics appealing to a broad spectrum of professionals working in the development community. The human development approach was in part necessitated by the monopolization of economic development by states even from the advent of the enterprise in the 1950s. But despite the widespread adoption of the human development framework as an operative concept in the practice of development, it is not without controversy. Most of the critique is directed toward the underlying premises of the capabilities approach and the elements its adherents must elucidate in order to effectively implement its tenets in policy.

Article

Shanti K. Khinduka

Globalization is the key social, economic, political, and cultural process of our time. This entry defines globalization, summarizes its complex and contradictory correlates and consequences, and offers, from a social work point of view, a balanced assessment of this powerful multidimensional process that is sweeping contemporary world.

Article

Simon Payaslian

The Armenian people entered the modern era with their historic lands of more than three millennia divided between two empires—the Ottoman and Persian empires. The Ottomans ruled the western and larger part, while the Persians ruled the eastern lands. Ottoman rule extended from the fourteenth century to the establishment of the Republic of Turkey in 1923. The latter inherited the historic Armenian lands as a successor state to the Ottoman Empire. The Persian Empire ruled Armenian lands in the east until the signing of the Treaty of Turkmenchai in 1828, which, in the aftermath of the Russo-Persian wars, fulfilled Russian imperial expansionist objectives into the Caucasus by replacing Persian rule. For centuries, therefore, Armenians experienced the various aspects and phases of modernization—the Enlightenment, the emergence of capitalism, urbanization, nationalism—as a subject people. They did not achieve modern statehood until 1918 as the Ottoman and Russian empires collapsed under the weight of the First World War. Modern Armenia emerged when the Republic of Armenia was established as a sovereign state in May 1918, after centuries of foreign rule but in the midst of war and the ongoing genocide by the Young Turks ruling in Constantinople (now Istanbul) against its Armenian population. The fragile Republic of Armenia could not withstand the calamitous consequences of war. Moreover, thousands of Armenian refugees generated by the genocidal policies of the Young Turk regime arrived in the republic. The new government lacked the resources necessary for a functioning economy and polity, and the unfolding military conflicts led to its demise and sovietization after the Bolsheviks consolidated power in Yerevan in 1921. The Communist regime established a dictatorial system in Soviet Armenia and across the Soviet Union, but the severest brutalities were experienced under Joseph Stalin in the 1930s, as his government forced agricultural collectivization and rapid industrialization at the expense enormous human sacrifices. Despite the political difficulties, Soviet Armenia registered successes in the areas of economy and culture in the long term. Armenians benefited from the cultural development witnessed in the 1950s and 1960s, largely as a result of Nikita Khrushchev’s reform oriented policies. By the 1970s, however, the economy had grown stagnant under Leonid Brezhnev, and his successors, Yuri Andropov and Konstantin Chernenko, in the early 1980s failed to ameliorate the conditions, while the Soviet regime experienced a political legitimacy crisis. In the meantime, nationalism had emerged as a powerful force across the Soviet Union, and calls for secession from Moscow grew louder. Mikhail Gorbachev’s experimentation with perestroika (restructuring) and glasnost (openness) could not reverse the loss of legitimacy, a situation further exacerbated in Soviet Armenia in the aftermath of the earthquake in December 1988 and the escalating military conflict in Nagorno-Karabagh. The Soviet regime collapsed in 1991, creating an opportunity for a second declaration of independence for Armenian sovereign statehood in the 20th century. Although independence from the Soviet Union energized the Armenian people and gave rise to expectations concerning their economic and political well-being in post-Soviet Armenia, the country became mired in the twin crises of recovering from the earthquake while at the same time surviving an undeclared war with Azerbaijan, the latter being supported by Turkey. The economic blockade they imposed on Armenia further exacerbated the situation. Since independence, the Republic of Armenia, under its four successive leaders—Presidents Levon Ter-Petrosyan, Robert Kocharyan, Serge Sargsyan, and Prime Minister Nikol Pashinyan—has struggled to develop its economy and infrastructure and to address the chronic problems of poverty and unemployment. The country lacks the economic and financial ingredients necessary to develop a modern, competitive productive basis for competition in global markets. Further, systemic corruption has obstructed efforts to improve the situation, while various government agencies have routinely engaged in violations of human rights. Efforts by nascent civil society to advance civil and political rights and democratization in general have been undermined by state policies, including gross violations of citizens’ rights in time of elections. The experiences gained after twenty-five years of independence pose major challenges for economic development while offering little hope for democratization. It remains to be seen whether the “velvet revolution” (March 31–May 8, 2018) led by Nikol Pashinyan can introduce fundamental changes in the Armenian political system. Former opposition activist and member of the National Assembly, Pashinyan emerged as the country’s prime minister after the “velvet revolution” forced the resignation of Serge Sargsyan on April 23, 2018.

Article

Latin American labor has a well-established historiography, in dialogue with trends outside of the region. Environmental history is a newer and more exploratory field. In basic terms, environmental history explores the relationships of humans with the natural world, sometimes referred to as “nonhuman nature.” This can include how humans have affected the natural world, how the natural world has affected human history, and histories of human ideas and belief systems about nature. Labor and environmental history grows from explorations of the connections between these two spheres. Humans interact with the natural world through their labor and from their class perspective. The natural world shapes the work that people do and the institutions and structures humans create to organize and control labor. Changing labor regimes change the ways that humans interact with, and think about, the natural world. Both labor and environmental histories are in some senses investigations of how humans relate to nature. This essay sets Latin American labor and environmental history in global historical context. After offering a chronological summary, it briefly examines connections between U.S. Latino and Latin American labor and environmental histories, and ends with a discussion of contemporary Latin American critical environmentalisms.

Article

While traditional economic literature often sees nominal variables as irrelevant for the real economy, there is a vast body of analytical and empirical economic work that recognizes that, to the extent they exert a critical influence on the macroeconomic environment through a multiplicity of channels, exchange rate policies (ERP) have important consequences for development. ERP influences economic development in various ways: through its incidence on real variables such as investment and growth (and growth volatility) and on nominal aspects such relative prices or financial depth that, in turn, affect output growth or income distribution, among other development goals. Additionally, ERP, through the expected distribution of the real exchange rate indirectly, influences dimensions such as trade or financial fragility and explains, at least partially, the adoption of the euro—an extreme case of a fixed exchange rate arrangement—or the preference for floating exchange rates in the absence of financial dollarization. Importantly, exchange rate pegs have been (and, in many countries, still are) widely used as a nominal anchor to contain inflation in economies where nominal volatility induces agents to use the exchange rate as an implicit unit of account. All of these channels have been reflected to varying degrees in the choice of exchange rate regimes in recent history. The empirical literature on the consequences of ERP has been plagued by definitional and measurement problems. Whereas few economists would contest the textbook definition of canonical exchange rate regimes (fixed regimes involve a commitment to keep the nominal exchange rate at a given level; floating regimes imply no market intervention by the monetary authorities), reality is more nuanced: Pure floats are hard to find, and the empirical distinction between alternative flexible regimes is not always clear. Moreover, there are many different degrees of exchange rate commitments as well as many alternative anchors, sometimes undisclosed. Finally, it is not unusual that a country that officially declares to peg its currency realigns its parity if it finds the constraints on monetary policy or economic activity too taxing. By the same token, a country that commits to a float may choose to intervene in the foreign exchange market to dampen exchange rate fluctuations. The regime of choice depends critically on the situation of each country at a given point in time as much as on the evolution of the global environment. Because both the ERP debate and real-life choices incorporate national and time-specific aspects that tend to evolve over time, so does the changing focus of the debate. In the post-World War II years, under the Bretton Woods agreement, most countries pegged their currencies to the U.S. dollar, which in turn was kept convertible to gold. In the post-Bretton Woods years, after August 1971 when the United States abandoned unilaterally the convertibility of the dollar, thus bringing the Bretton Woods system to an end, the individual choices of ERP were intimately related to the global and local historical contexts, according to whether policy prioritized the use of the exchange rate as a nominal anchor (in favor of pegged or superfixed exchange rates, with dollarization or the launch of the euro as two extreme examples), as a tool to enhance price competitiveness (as in export-oriented developing countries like China in the 2000s) or as a countercyclical buffer (in favor of floating regimes with limited intervention, the prevalent view in the developed world). Similarly, the declining degree of financial dollarization, combined with the improved quality of monetary institutions, explain the growing popularity of inflation targeting with floating exchange rates in emerging economies. Finally, a prudential leaning-against-the-wind intervention to counter mean reverting global financial cycles and exchange rate swings motivates a more active—and increasingly mainstream—ERP in the late 2000s. The fact that most medium and large developing economies (and virtually all industrial ones) revealed in the 2000s a preference for exchange rate flexibility simply reflects this evolution. Is the combination of inflation targeting (IT) and countercyclical exchange rate intervention a new paradigm? It is still too early to judge. On the one hand, pegs still represent more than half of the IMF reporting countries—particularly, small ones—indicating that exchange rate anchors are still favored by small open economies that give priority to the trade dividend of stable exchange rates and find the conduct of an autonomous monetary policy too costly, due to lack of human capital, scale, or an important non-tradable sector. On the other hand, the work and the empirical evidence on the subject, particularly after the recession of 2008–2009, highlight a number of developments in the way advanced and emerging economies think of the impossible trinity that, in a context of deepening financial integration, casts doubt on the IT paradigm, places the dilemma between nominal and real stability back on the forefront, and postulates an IT 2.0, which includes selective exchange rate interventions as a workable compromise. At any rate, the exchange rate debate is still alive and open.

Article

The multifaceted nature of decentralization, democracy, and development renders relationships among them ambivalent and conditional. It is certainly possible to decentralize in ways that foster local democracy and improvements in socioeconomic well-being. The empirical record, however, is mixed, and not only because the phenomena of interest have multiple dimensions and are open to interpretation. Whatever its form, decentralization is inherently political. In the African context, the extent and form of decentralization has been influenced by international support, the challenges of extending state authority in relatively young multi-ethnic states, and, increasingly, electoral considerations. By the 1980s, the broad consensus in the constructive developmental role of a strong central state that had characterized the immediate postwar period gave way to a growing perception of statist approaches as impeding democracy and, especially, development. For some, decentralization implied an expansion of popular participation that promised greater sensitivity to local knowledge and more responsiveness to local concerns. Others saw decentralization as part of a broader agenda of scaling back the central state, reducing its role, its size, and its costs. Yet others saw decentralization as part of a strategy of achieving sustainable natural resource management or political stability in post-conflict societies. By the early 1990s, a wide variety of international organizations were promoting decentralization and providing both financial and technical support for decentralization reforms. In the African context, political decisions about whether and how to decentralize reflect the continued salience of ethno-regional identities and non-state authorities, especially traditional or customary leaders. Incumbents may decentralize because they hope to consolidate their political position by crowding out or co-opting rivals, depoliticizing conflicts, or deflecting blame to subnational actors. Indeed, reforms made in the name of decentralization often strengthen the political center, at least over the short to medium term. Whether it attempts to co-opt or sideline them, decentralization interacts with and may reinforce the salience of ethno-regional identities and traditional authorities. To the extent that democracy presumes the equality of all citizens, regardless of ascribed status or identity, the reinforcement of ethno-regional identities and unelected authorities threatens democracy. The international spread of decentralization reforms coincided with the increasing prevalence of multiparty elections. In countries that hold elections, electoral considerations inevitably influence political interests in decentralization. Central government incumbents may view decentralization as a way to keep voters happy by improving access to and the quality of public services, as a form of political insurance, or as strengthening rivals. Whether incumbents and challengers view decentralization as a threat or an opportunity depends on not only the form of decentralization under consideration, but also their estimations of their competitiveness in elections at various levels (national, regional, local) and the interaction between the spatial distribution of electoral support and the electoral system. Electoral dynamics and considerations also influence the implementation and consequences of decentralization, perhaps especially when political rivals control different levels of government. Whether decentralization promotes democracy and development hinges on not only the form of decentralization, but also how broader political dynamics condition decentralization in practice.

Article

William Biebuyck and Judith Meltzer

Cultural political economy (CPE) is an approach to political economy that focuses on how economic systems, and their component parts, are products of specific human, technical, and natural relations. Notwithstanding longer historical roots, CPE emerged as part of the “cultural turn” within the social sciences. Although it is often seen as countering material determinism and the neglect of culture in conventional approaches in political economy, the cultural turn was less about “adding culture” than about challenging positivist epistemologies in social research. For some, cultural political economy continues to be defined by an orientation toward cultural or “lifeworld” variables such as identity, gender, discourse, and so on, in contrast to conventional political economy’s focus on the material or “systems” dimensions. However, this revalorization of the nonmaterial dimensions of political economic life reinforces a sharp distinction between the cultural and the material, an issue which can be traced to the concept of “(dis)embedding” the economy and subordinating society. A more noticeable development, however, is the increasing orientation of critical (CPE) analyses of global development toward the “economization” of the cultural in the context of mutating forms of neoliberalism. Concomitant to the economization of the cultural in narratives of global development is the “culturalization” of the economic. Here attention is paid not just to the growth of cultural industries but to the multiple ways in which culture has been normalized in discourses of global and corporate development.

Article

Deforestation in Brazilian Amazonia destroys environmental services that are important for the whole world, and especially for Brazil itself. These services include maintaining biodiversity, avoiding global warming, and recycling water that provides rainfall to Amazonia, to other parts of Brazil, such as São Paulo, and to neighboring countries, such as Argentina. The forest also maintains the human populations and cultures that depend on it. Deforestation rates have gone up and down over the years with major economic cycles. A peak of 27,772 km2/year was reached in 2004, followed by a major decline to 4571 km2/year in 2012, after which the rate trended upward, reaching 7989 km2/year in 2016 (equivalent to about 1.5 hectares per minute). Most (70%) of the decline occurred by 2007, and the slowing in this period is almost entirely explained by declining prices of export commodities such as soy and beef. Government repression measures explain the continued decline from 2008 to 2012, but an important part of the effect of the repression program hinges on a fragile base: a 2008 decision that makes the absence of pending fines a prerequisite for obtaining credit for agriculture and ranching. This could be reversed at the stroke of a pen, and this is a priority for the powerful “ruralist” voting bloc in the National Congress. Massive plans for highways, dams, and other infrastructure in Amazonia, if carried out, will add to forces in the direction of increased deforestation. Deforestation occurs for a wide variety of reasons that vary in different historical periods, in different locations, and in different phases of the process at any given location. Economic cycles, such as recessions and the ups and downs of commodity markets, are one influence. The traditional economic logic, where people deforest to make a profit by producing products from agriculture and ranching, is important but only a part of the story. Ulterior motives also drive deforestation. Land speculation is critical in many circumstances, where the increase in land values (bid up, for example, as a safe haven to protect money from hyperinflation) can yield much higher returns than anything produced by the land. Even without the hyperinflation that came under control in 1994, highway projects can yield speculative fortunes to those who are lucky or shrewd enough to have holdings along the highway route. The practical way to secure land holdings is to deforest for cattle pasture. This is also critical to obtaining and defending legal title to the land. In the past, it has also been the key to large ranches gaining generous fiscal incentives from the government. Money laundering also makes deforestation attractive, allowing funds from drug trafficking, tax evasion, and corruption to be converted to “legal” money. Deforestation receives impulses from logging, mining, and, especially, road construction. Soybeans and cattle ranching are the main replacements for forest, and recently expanded export markets are giving strength to these drivers. Population growth and household dynamics are important for areas dominated by small farmers. Extreme degradation, where tree mortality from logging and successive droughts and forest fires replace forest with open nonforest vegetation, is increasing as a kind of deforestation, and is likely to increase much more in the future. Controlling deforestation requires addressing its multiple causes. Repression through fines and other command-and-control measures is essential to avoid a presumption of impunity, but these controls must be part of a broader program that addresses underlying causes. The many forms of government subsidies for deforestation must be removed or redirected, and the various ulterior motives must be combated. Industry agreements restricting commodity purchases from properties with illegal deforestation (or from areas cleared after a specified cutoff) have a place in efforts to contain forest loss, despite some problems. A “soy moratorium” has been in effect since 2006, and a “cattle agreement” since 2009. Creation and defense of protected areas is an important part of deforestation control, including both indigenous lands and a variety of kinds of “conservation units.” Containing infrastructure projects is essential if deforestation is to be held in check: once roads are built, much of what happens is outside the government’s control. The notion that the 2005–2012 deforestation slowdown means that the process is under control and that infrastructure projects can be built at will is extremely dangerous. One must also abandon myths that divert efforts to contain deforestation; these include “sustainable logging” and the use of “green” funds for expensive programs to reforest degraded lands rather than retain areas of remaining natural forests. Finally, one must provide alternatives to support the rural population of small farmers. Large investors, on the other hand, can fend for themselves. Tapping the value of the environmental services of the forest has been proposed as an alternative basis for sustaining both the rural population and the forest. Despite some progress, a variety of challenges remain. One thing is clear: most of Brazil’s Amazonian deforestation is not “development.” Trading the forest for a vast expanse of extensive cattle pasture does little to secure the well-being of the region’s rural population, is not sustainable, and sacrifices Amazonia’s most valuable resources.

Article

Robert M. Bosco

The study of religion and development focuses on how the moral and ethical resources of the world’s major faith traditions such as Christianity, Judaism, Islam, Hinduism, and Buddhism might tame the worst excesses of market civilization. Whereas states, corporations, and international development institutions often define “development” as economic growth and all of the adjustments required to achieve it, religious approaches consider the consequences of this conception of development and recommend that the achievement of material gain be tempered by compassion, conscience, a greater concern for social equity, and a responsible application of science and technology to both the social and natural worlds. The origins of the field of religion and development can be traced back to Max Weber's seminal investigations into the elective affinities between Protestantism and the spirit of capitalism. In the 1980s, the majority of scholarly literature grappled with the meaning and significance of Weber’s basic ideas in various contexts and locales as scholars examined whether, when, and how religious traditions enhance or inhibit development at the international, regional, national, or community levels of analysis. After a period of hibernation, the study of religion and development was reenergized in the late 1990s as religious leaders and faith-based organizations played a central role in challenging the policies and practices of international development institutions, especially the World Bank.

Article

David Arase

As a policy tool, aid has not been confined to the roles that foreign and economic policy theorists have prescribed for it. Foreign aid attracts controversy because it structures how global poverty will be addressed. Aid’s proponents believe that it can eradicate absolute poverty and close the income gap between rich and poor countries, but its critics believe it holds out only false hope and obscures the real nature of the problem. The unrequited transfer of wealth from a weak nation to a stronger one is an ancient tradition, but the notion that it would be powerful nations transferring wealth to advance the economic development of weaker ones was virtually unheard of until the post-World War II era, particularly during the highly polarized Cold War climate. During this time, aid was used as a means of competition between the United States and the Soviet Union for influence over Third World countries. Aid also became a tool for opening up the markets of the developing world and integrating them into the global economy. The fact that foreign aid has come to mean development assistance since has raised a series of questions debated in the scholarly literature. Moreover, it is universally acknowledged that donors use aid to achieve objectives other than development and poverty reduction.

Article

M. Leann Brown

Sustainable development (SD) is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” This definition is articulated in Our Common Future, a political manifesto published in 1987 by the United Nations’ World Commission on Environment and Development (WCED). SD promises to resolve in a positive-sum manner the most daunting economic, environmental, political, and social challenges the world is currently facing. However, it has also become a much contested concept, mainly due to the comprehensiveness, ambiguity, and optimism inherent in its underlying assumptions. Ongoing debates within the literature deal with how to define, operationalize, and measure SD; how economic development and environmental protection are conceptualized as mutually supportive; how “nature” is treated in the literature; equity and overconsumption challenges to SD; and the governance, social learning, and normative transformations required to achieve SD. Reaching some consensus on definitions and operationalization of the multiple aspects of SD will lead to standards by which to assess development and environmental policies. Among the most urgent issues that must be addressed in future research are the roles and influence of the relatively new participants in governance, such as intergovernmental/nongovernmental organizations and corporations; the new modes of governance including public-private and private-private partnerships and network governance; and the impacts of implementing compatible and contradictory policies on the various levels and across policy areas.

Article

Scientific advance and innovation are major sources of economic growth and are crucial for making development socially and environmentally sustainable. A critical question is: Will private enterprises invest sufficiently in research technological development and innovation and, if not, to what degree and how should governments engage in the support of science, technology, and innovation? While neoclassical economists point to market failure as the main rationale for innovation policy, evolutionary economists point to the role of government in building stronger innovation systems and creating wider opportunities for innovation. Research shows that the transmission mechanisms between scientific advance and innovation are complex and indirect. There are other equally important sources of innovation including experience-based learning. Innovation is increasingly seen as a systemic process, where the feedback from users needs to be taken into account when designing public policy. Science and innovation policy may aim at accelerating knowledge production along well-established trajectories, or it may aim at giving new direction to the production and use of knowledge. It may be focused exclusively on economic growth, or it may give attention to impact on social inclusion and the natural environment. An emerging topic is to what extent national perspectives continue to be relevant in a globalizing learning economy facing multiple global complex challenges, including the issue of climate change. Scholars point to a movement toward transformative innovation policy and global knowledge sharing as a response to current challenges.

Article

Philip Martin

There are three factors that persuade a migrant to cross borders: demand-pull in destination areas, supply-push in origin areas, and network factors that connect them. On the basis of this demand-pull, supply-push, and network framework, a distinction can be made between economic migrants who are encouraged to migrate because of a demand for their labor abroad and noneconomic migrants who cross national borders to seek refuge or to join family members living abroad. Many economists argue that trade and migration have similar effects on sending and receiving countries. However, there is no solid evidence showing that more migration accelerates economic development in migrant-sending countries. The effects of international migration on development are often grouped in the 3-R channels of recruitment, remittances, and returns, each of which can operate in ways that speed up or slow down economic development. Recruitment refers to who goes abroad, remittances are the amount of the money earned by migrants abroad that is sent home, and returns focus on what migrants do after a period of employment abroad. Majority of industrial countries have national laws that require all workers to receive minimum wages and migrants to receive the same wages and benefits as local workers. From the point of view of some developing countries, minimum and equal wages are a form of protectionism aimed at limiting the number of migrant service providers. A major challenge of the twenty-first century is how to resolve this trade-off between migrant numbers and migrant rights.