IPE WEEK 12

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IPE - WEEK 12

• Development Human Connections
• Berkeley City College

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Two Faces of Development

• Loss of sovereignty
• Political
• Economic
• Loss of cultural heritage
• Exploitation by the rich nations

• Less poverty
• Improved standard of living
• Higher life expectancy
• More political power of a nation

Andre Gunder Frank on Latin America Raul
Prebisch on Latin America
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What Shaped Development (50s-60s)?

• Colonial past
• Resistance to cultural dominance by the West
• The Cold War and proximity to the US, its allies,
  or its enemies
• The Norths success and the use of its model for
  the South

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Institutions and Policies of Change

• Afro-Asian Bandung Conference in Indonesia, 1955
• UNCTAD United Nations Conference on Trade and
  Development, 1964
• New International Economic Order, 1974
• Commodities and prices
• Greater LDC influence in the WB and the IMF
• Better control of natural resources by LDCs

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Strategies of Economic Development
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Washington Consensus

• Consensus IMF WB US Treasury
• Neoliberal policies
• Free trade laissez-faire
• Free capital markets
• Risk of opening market to hot money
• Limited government intervention
• Is this the magic formula for development?

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(No Transcript)
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US Immigration Debate

US national income expanded by US 8B in 1997
because of immigration. The National Research
Council
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Migration

• Driven by economic reasons, also a quest for
  survival from hunger and extreme poverty.
• Of the 175M international migrants today, about
  86M are economically active, including migrants,
  immigrant workers and refugees.
• Remittances
• the portion of an international migrants
  earnings sent back from a host country to the
  migrants country of origin
• Growing dependence of many developing countries
  on the remittances of their migrant workers
  abroad
• The state influences migration through
  immigration policy

3 of the worlds population (192M in 05) 9 of
the developed world (104M) 12 of the US (gt39M)
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Migrant Population
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Inflows and Outflows Emigration vs. Immigration
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Female Migrants
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Foreign Students in Higher Ed
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IPE Views on Migration

• Mercantilists
• Focus on effects of migration on national
  interest
• Loss of jobs for domestic workers
• Migrants as security threat
• Liberals
• Freedom of movement, liberty, and human rights
• Positive economic effects benefits to migrants
  and hosting country
• Structuralists
• Focus only on temporary migrant flows
• Exploitation of the periphery by the core
• Abuse of human rights
• Lack of legal protection
• Brain drain issue

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Remittances

• Official global remittance flows at US93B in
  03, gtUS100B in 04
• Total global remittances - US100B annually
• Remittance flows gt official aid flows flows to
  developing countries
• - comparable to FDIs and world petroleum export
  earnings
• Davesh Kapurs (2003) five interesting features
  of remittances today
• Significant stable source of external
  development finance
• Flow to developing countries of all income levels
• A stable source of financial flows for nations in
  crisis
• The main source of income, in addition to
  tourism, for people in small island economies
• Self-help remedy

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Remittances vs. Foreign Aid
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Remittances as the New Development Mantra

• Remittances and Poverty Reduction
• WB reports in a study of 74 low and middle income
  countries on the average, a 10 increase in the
  number of international migrants in a country's
  population can lead to a 1.6 decline in poverty
  headcount.
• Same WB report also says that a 10 in the share
  of remittances in a countrys GDP can lead to a
  1.2 decline in poverty.
• At community and family level
• Remittances towards basic social spending, e.g.
  nutrition, health care, housing, clothing, and
  education.
• Remittances as investments in community
  development projects and social infrastructures
• Emerging role of NGOs and migrant networks, i.e.
  MSAI Model Migrants Savings for Alternative
  Investments Model

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Remittances to Africa
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Remittances to Latin America
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Remittances to Asia
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Human Networks

• Networks
• Adaptive and volatile structures and functions
• Multiple lines of communications
• Types of networks
• Diasporas
• Jewish
• Chinese
• Ethiopian
• Terrorist networks
• Hawala
• Informal finance network from the Middle Ages
• Hawaladar agent, 5 commission
• International ATM with its password
• Deriving trust from kinship, ethnic relations, or
  personal ties

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Discussion Q

• Globalization is a network of networks.
• (M. Veseth)
• In what way does globalization connect people?
  What are the connecting points?
• In what ways does it disconnect people, thus
  contributing to a paradox about globalization and
  more narrower networks?