Showing papers on "Underdevelopment published in 2000"

Geography and development

Abstract: The most striking fact about the economic geography of the world is the uneven spatial distribution of economic activity, including the coexistence of economic development and underdevelopment. High-income regions are almost entirely concentrated in a few temperate zones, half of the world's GDP is produced by 15 percent of the world's population, and 54 percent of the world's GDP is produced by countries occupying just 10 percent of the world's land area. The poorest half of the world's population produces only 14 percent of the world's GDP, and 17 of the poorest 20 nations are in tropical Africa. The unevenness is also manifest within countries and within metropolitan concentrations of activity. Why are these spatial differences in land rents and wages not bid away by firms and individuals in search of low-cost or high-income locations? Why does economic activity cluster in centers of activity? And what are the consequences of remoteness from existing centers? The authors argue that understanding these issues is central for understanding many aspects of economic development and underdevelopment at the international, national, and subcontinental levels. They review the theoretical and empirical work that illuminates how the spatial relationship between economic units changes and conclude that geography matters for development, but that economic growth is not governed by a geographic determinism. New economic centers can develop, and the costs of remoteness can be reduced. Many explicit policy instruments have been used to influence location decisions. But none has been systematically successful, and many have been very costly-in part because they were based on inappropriate expectations. Moreover, many ostensibly nonspatial policies that benefit specific sectors and households have spatial consequences since the targeted sectors and households are not distributed uniformly across space. These nonspatial policies can sometimes dominate explicitly spatial policies. Further work is needed to better understand these dynamics in developing countries.

States of Development: On the Primacy of Politics in Development

Abstract: Acknowledgements. Chapter 1: The Argument: The Primacy of Politics in Development. Chapter 2: Progress, Growth and Modernization: Antecedents of the Development Idea. Chapter 3: Meanings of Development: Postwar Developments. Chapter 4: States of Underdevelopment. Chapter 5: Governance and Development: Leaving Politics Out. Chapter 6: The Politics of Democratic Governance in the Third World. Chapter 7: Developmental States: Bringing Politics Back In. Chapter 8: Democracy and the Development State: Democratic Practices and Development Capacity. Chapter 9: Conclusion. References. Index

The Indonesian Economy

Abstract: The Indonesian Economy (2nd edition) By Hal Hill Cambridge: Cambridge University Press, 2000 Pp 366 Hal Hill's latest work is a second edition of his original 1996 volume entitled The Indonesian Economy Since 1966: Southeast Asia's Emerging Giant Of the original work he could legitimately claim to fill a gap in the literature and provide a "big picture" account of the Indonesian economy under the Soeharto regime This volume remains a superb account of Indonesia's economy by a leading authority on the subject The second addition of The Indonesian Economy differs from the first in only one substantial regard There is an extra chapter on the financial crisis at the end Hill states in his new preface that "[t]his is not a complete re-write of the entire text - that will have to wait for another day, when the dust has settled" Thus Hill's book, like quite a number of post-Soeharto books on Indonesia, is a text written in Soeharto's time with an updating section at the end to give some salience to the work Therefore the first twelve chapters, out of thirteen, cast the reader back to 1996 (the original publication date), which means one must suspend all knowledge of events after that date Much of what appears in these chapters, written in present tense, is in fact past tense, while the numerous references to former President Habibie as the current Minister for Research and Technology are the most striking given that he had not held this position for 16 months when Hill penned the second preface in May 1999 Furthermore, the original conclusion, which looks forward from 1996, remains in this volume - yet seems well overtaken by events That said, one can understand the tack Hill has taken here Either leave the work as it is, or rewrite it entirely when a detailed analysis of the turbulent aftermath of Soeharto's rule may not yet be opportune However, the chronology of events at the end draws to a close in December 1993 - this at least could have been extended Soeharto, upon assuming the mantle of leadership from Sukarno, reversed the founding president's destructive socialist policies Indonesia went from being a "basket case" (p 1) in the 1960s to be officially listed as a middle income country by the World Bank in 1980 From 1966 hyperinflation was brought under control, the debt burden was eased, while export-driven economic growth matched the other emerging Asian economies in most years prior to the 1997 financial crisis The overall structure of the Indonesian economy also changed towards manufacturing and services Hill's account gives the reader an insight into the success of Indonesia's economic policies in overcoming some of the challenges of underdevelopment The strength of this volume is that it avoids the extremes of platitudinous praise for New Order policies (as exhibited by some journalists and economists prior to the crash) and the complete condemnation offered by others Hill gives credit where it is due, but equally he also does not hesitate to point out the major flaws of the Soeharto era The volume is rich in detail, including a monumental compilation of socioeconomic data into tables and graphs, while engaging in sophisticated analysis Overall the reader is reminded of the terrible shambles of the Sukarno period and the tremendous achievements of the Soeharto regime in terms of economic and social development - albeit partly undermined by the financial crisis and the growing corruption of the first family Hill gives the reader the picture of an economy with some underlying problems includes slipshod record keeping, uneven tax collection, capricious decision-making, an out of control financial system, and a weak legal structure While the Soeharto government publicly maintained a balanced budget principle, in reality a small budget deficit was incurred in most years due to "off budget expenditure" - chiefly for large industrial projects and military funding (pp …

Development and quality of life: a critique of Amartya Sen's Development as freedom.

Abstract: Presented here is a critical analysis of some of the major theses of Amartya Sen, as presented in his seminal work Development As Freedom. The author suggests that Sen's work, while representing a major break with the dominant neoliberal position reproduced in most national and international development agencies, is insufficient to explain the key relationship between freedom and development. The absence of an analysis of the power relations that cause and reproduce underdevelopment through national and international political institutions leaves Sen's work wanting. The author shows how Sen's interpretation of events and the conclusions derived from them, such as an explanation of famine in Bangladesh, are insufficient--when not faulty. The author also critically analyzes the United Nations Development Program reports, which, while documenting the nature and consequences of underdevelopment, barely touch on the political context in which underdevelopment occurs.

Development Studies and Comparative Education: context, content, comparison and contributors

Abstract: This article reviews Comparative Education over the past 20 years, explores the parallel literature of development studies, and identifies future directions and challenges for comparative education Using Parkyn (1977) as a benchmark, an analysis of articles published between 1977 and 1998 suggests that only a small proportion appear to meet his criteria for comparative education Parkyn's purpose for comparative education, to increase our understanding of the relationship between education and the development of human society, is shared by development studies Educational writings within development studies have explored the meanings of development and underdevelopment and have raised important questions about the unit of analysis for comparative education Several reasons are advanced to explain the separate development of these literatures The contemporary challenge of globalisation presents fresh opportunities and challenges for both literatures A shared commitment to understanding the role of education in the globalisation process and the reasoned response to it could form the heart of a shared effort in the future Globalisation also highlights the need for more effective dialogue between comparative educators in different corners of the globe

From modernization to globalization : perspectives on development and social change

Abstract: Preface. Acknowledgments. Introduction: J. Timmons Roberts and Amy Hite. Part I: Formative Ideas on the Transition to Modern Society:. 1. "Manifesto of the Communist Party" and "Alienated Labor": Karl Marx and Friedrich Engels. 2. Selections from The Division of Labor in Society: Emile Durkheim. 3. The Protestant Ethic and the Spirit of Capitalism: Max Weber. Part II: How does Development Change People? Modernization Theories and the Intellectual Roots of the Development Project:. 4. Evolutionary Universals in Society: Talcott Parsons. 5. The Five Stages--of--Growth -- A Summary: W. W. Rostow. 6. From A Study of Slum Culture: Backgrounds for LA VIDA: Oscar Lewis. 7. Excerpts from The Passing of Traditional Society: Daniel Lerner. 8. Making Men Modern: On the Causes of Individual Change in Six Developing Countries: Alex Inkeles. 9. From The Change to Change: Modernization, Development, and Politics, and Political Order in Changing Societies: Samuel Huntington. Part III: Blaming The Victims? Dependency and World--Systems Theories Respond: . 10. The Development of Underdevelopment: Andre Gunder Frank. 11. Dependency and Development in Latin America: Fernando Henrique Cardoso and Enzo Faletto. 12. The Dynamics of Rural Poverty in Latin America: Alain de Janvry and Carlos Garramon. 13. The Rise and Future Demise of the World Capitalist System: Concepts for Comparative Analysis: Immanuel Wallerstein. 14. The Effects of International Economic Dependence on Development and Inequality: A Cross--National Study: Christopher Chase--Dunn. 15. Rethinking Development Theory: Insights from East Asia and Latin America: Gary Gereffi. Part IV: Attempts to Understand Globalization and its Social Effects:. 16. The New International Division of Labor in the World Economy: Folker Frobel, Jurgen Heinrichs, and Otto Kreye. 17. Globalization: Myths and Realities: Philip McMichael. 18. Capitalism: The Factory of Fragmentation: David Harvey. 19. Introduction from Has Globalization Gone Too Far?: Dani Rodrik. 20. Gender Industrialization, Transnational Corporations and Development: An Overview of Trends and Patterns: Kathryn B. Ward and Jean Larson Pyle. 21. Development after Ecology: Bob Sutcliffe. 22. Social Movements and Global Capitalism: Leslie Sklair. 23. Neoliberalism and the Sociology of Development: Emerging Trends and Unanticipated Facts: Alejandro Portes. Index.

Understanding Underdevelopment: Challenges for Institutional Economics from the Point of View of Poor Countries

Abstract: In this paper we focus on a few broad analytical themes that have not been paid enough attention in the theoretical institutional economics literature: in particular, (a) the process of persistence of dysfunctional institutions in poor countries, (b) institutional impediments as strategic outcomes of distributive conflicts, (c) the collective action problems these conflicts exacerbate, and (d) in view of the critical need for coordination, a more complex and nuanced role of the state, which many (though not all) states fail to perform.

Geography and Development

Abstract: Why are spatial differences in land rents and wages not bid away by firms and individuals in search of low-cost or high-income locations? Why does economic activity cluster in centers of activity? And what are the consequences of remoteness from existing centers? The most striking fact about the economic geography of the world is the uneven spatial distribution of economic activity, including the coexistence of economic development and underdevelopment. High-income regions are almost entirely concentrated in a few temperate zones, half of the world's GDP is produced by 15 percent of the world's population, and 54 percent of the world's GDP is produced by countries occupying just 10 percent of the world's land area. The poorest half of the world's population produces only 14 percent of the world's GDP, and 17 of the poorest 20 nations are in tropical Africa. The unevenness is also manifest within countries and within metropolitan concentrations of activity. Why are these spatial differences in land rents and wages not bid away by firms and individuals in search of low-cost or high-income locations? Why does economic activity cluster in centers of activity? And what are the consequences of remoteness from existing centers? Henderson, Shalizi, and Venables argue that understanding these issues is central for understanding many aspects of economic development and underdevelopment at the international, national, and subcontinental levels. They review the theoretical and empirical work that illuminates how the spatial relationship between economic units changes and conclude that geography matters for development, but that economic growth is not governed by a geographic determinism. New economic centers can develop, and the costs of remoteness can be reduced. Many explicit policy instruments have been used to influence location decisions. But none has been systematically successful, and many have been very costly - in part because they were based on inappropriate expectations. Moreover, many ostensibly nonspatial policies that benefit specific sectors and households have spatial consequences since the targeted sectors and households are not distributed uniformly across space. These nonspatial policies can sometimes dominate explicitly spatial policies. Further work is needed to better understand these dynamics in developing countries. This paper - a product of Infrastructure and Environment, Development Research Group - is part of a larger effort in the group to analyze the role of economic geography and urbanization in the development process. Zmarak Shalizi may be contacted at zshalizi@worldbank.org.

The Development of Modern Spain: An Economic History of the Nineteenth and Twentieth Centuries

Abstract: Preface Abbreviations 1. Introduction: An Overview 2. The Nineteenth Century: Politics, Population, and Human Capital 3. Agriculture: Persistent Underdevelopment 4. Industry: A Long Infancy 5. Transportation and Commerce 6. Money and Banking 7. The Role of the State 8. The Entrepreneurial Factor 9. The Twentieth Century 10. Demographic Modernization 11. Agricultural Transformation: From Underdevelopment to Backwardness 12. Industrial Takeoff 13. The Foreign Sector 14. The Evolution of Money and Banking 15. The Changing Role of the State 16. Conclusions Chronology Notes Works Cited Index

Beyond Rosenstein-Rodan: the modern theory of underdevelopment traps

Abstract: The theme of this article is the importance – and the many causes – of lowlevel equilibrium “traps.” Rosenstein-Rodan pointed out that spillovers may cause the return to an activity to increase with the number of others who undertake that activity. If spillovers are strong enough, both lowand high-level equilibria are possible, with no tendency of market forces to lead from the worse to the better state of affairs. This article shows how modern economic theory broadened our view of the sources of spillovers that could lead to "traps" with low innovation and inefficient institutions. Evidence from China is consistent with local underdevelopment traps. The article argues for an “ecological” perspective on development, where the influences from others in one’s environment are a critical determinant of outcomes. This perspective provides the basis for the distinction between "deep" interventions, which change underlying forces, and "shallow" interventions, which do not. Karla Hoff is a research economist at the World Bank. This article draws on Hoff and Stiglitz (forthcoming). The author would like to thank Irma Adelman for helpful comments, and Abhijit Banerjee, Arnold Harberger, Gustav Ranis, Debraj Ray, and Joseph Stiglitz for discussions of the issues raised in this article. OUTLINE 1. The place of coordination failures in modern economic theory Neoclassical theory and the Coase theorem Institutional economics outside the 'straitjacket' of neoclassical economics Path dependence A radically broadened view of externalities and public goods "Ecological economics" 2. Examples of underdevelopment traps A low R&D trap Self-sustaining institutions Big Push theories of industrialization 3. An econometric test: Local poverty traps in rural China 4. Perspectives on policy Coordinating good equilibria Sequencing of policy reforms A word of caution: Deep versus shallow interventions 5. Conclusion Mathematical appendix Table and Figures Table 1. Old and new views of externalities and public goods Table 2 Taxonomy of models with complementarities. Figure 1. Multiple equilibria (with corner solutions) in the level of enforcement Figure 2. Multiple equilibria in a model with symmetric agents Figure 3. Multiple equilibria in the fraction of homeowners Figure 4. Different individual capital stocks may have the same marginal productivity Figure 5. Minimum levels of county wealth in China to assure rising household consumption given household wealth Paul Rosenstein-Rodan (1943) famously argued that at an early stage of development, the investments of industrializing firms in one sector may increase the profitability of other sectors throughout the economy. Simultaneous industrialization of many sectors of the economy could be profitable for them all, even though no sector would be profitable industrializing alone. As a result, an underdevelopment trap was possible. Even the market mechanism need not succeed in coordinating the activities needed to ensure development. In modern terms, there could be a coordination failure, where individuals' inability to coordinate their choices leads to a state of affairs that is worse for everyone than some alternative state of affairs that is also an equilibrium. The obstacle to achieving the better state of affairs is not a matter of technological opportunities (or even knowledge of those opportunities), nor resources or preferences, but only of coordination. In the 1950s, the possibility of underdevelopment traps or “vicious circles of poverty” was elaborated on by many others (including Nurkse 1953 and Leibenstein 1957). But individuals are rarely convinced by those who do not address their concerns. Without a well-developed theory of the sources of externalities (spillover effects), the idea of an equilibrium trap had little influence on neoclassical economists of that period. They continued to use their models to argue that the market mechanism could coordinate

Down And Out

Abstract: Poverty is the dominant feature of the working lives portrayed in this book. But the misery of these men, women, and children in India has little to do with the underdevelopment of the past. The poverty here is caused by development and is concentrated mainly in what is referred to as the informal sector of the economy, which is what four-fifths of India's population depends on for its livelihood. It concerns the type of work that requires little or no capital investment or education and is small-scale by nature. The wages earned from these enterprises are not only low but are also characterized by strong work fluctuations per day, month, or season. Two other factors characterize this type of work: the absence of governmental monitoring and also, the absence of organizations, namely unions, which traditionally represented the concerns of the working class.The choice for India emerges from the research of Jan Breman, performed over a 30-year period in an area located on India's west coast, the site of enormous economic growth. He has now returned to this location with photographer, Ravi Agarwal, to present a portrait of the working classes of this particular area. Together with Arvind Das, a well-known journalist and commentator on business matters in India, Jan Breman has written the text which accompanies the photographs.

The Modern Theory of Coordination Problems in Development

Abstract: The theme of this article is the importance - and the many causes - of coordination problems in development. Rosenstein-Rodan pointed out that spillovers may cause the return to an activity to increase with the number of others who undertake the same or complementary activities. If such spillovers are strong enough, multiple equilibrium outcomes may exist, some of which are better for every person than the alternatives, but with no tendency for market forces to lead from the worse to the better state of affairs. This article shows how modern economic theory broadened our view of the sources of spillovers that could lead to underdevelopment as an equilibrium. It argues for an "ecological" perspective on development, where the influences from others in one's environment are a critical determinant of outcomes, and many interaction effects are not mediated by markets. This perspective provides the basis for the distinction between "deep" interventions, which change underlying forces, and "shallow" interventions, which do not and may actually make things worse.

Globalization, Neoliberalism, and the State of Underdevelopment in the New Periphery

Abstract: This study provides an analytical sketch of the context, culture, structures, processes, and consequences of neoliberalism. It examines the subject from two fundamental and complementary perspectives. The first involves an appraisal of the history and evolution of neoliberalism as a socio-political phenomenon from its origins to the present. The second perspective provides a systematic analysis of the theory and practice of neoliberalism, its circumstances and effects, with special reference to the issue of globalization and its impact upon the weaker sectors of society. The authors conclude that neoliberal globalization has contributed to the emergence of a new centre and periphery, no longer based on distinct geographical regions, but on different political and economic strata in both the North and South.

Out of one, many Africas : reconstructing the study and meaning of Africa

Abstract: Even as symbols of Africa permeate Western culture in the 1990s, centers for the academic study of Africa suffer from a steady erosion of institutional support and intellectual legitimacy. "Out of One, Many Africas" assesses the rising tide of discontent that has destabilized the conceptions, institutions, and communities dedicated to African studies. In vibrant detail, contributors from Africa, Europe, and North America lay out the multiple, contending histories and perspectives that inform African studies. They assess the reaction against the white-dominated consensus that has marked African studies since its inception in the 1950s and note the emergence of alternative approaches, energized in part by feminist and cultural studies. They examine African scholars' struggle against paradigms that have justified and covered up colonialism, militarism, and underdevelopment. They also consider such issues as how to bring black scholars on the continent and in the diaspora closer together on questions of intellectual freedom, accountability, and the democratization of information and knowledge production. By surveying the present predicament and the current grassroots impulse toward reconsidering the meaning of the continent, "Out of One, Many Africas" gives shape and momentum to a crucial dialogue aimed at transforming the study of Africa.

A Critical-Holistic Paradigm for an Interdependent World

Abstract: The health-disease continuum and the current health paradigm neglect the fundamental descriptors of community welfare, including nutrition or malnutrition, equity or poverty, and sustainable development or underdevelopment. Current practices have a patient-obey-physician approach that assigns a passive role to patients and inhibits dialogue with community leaders. An alternative critical-holistic perspective can help universities overcome the limits of individual disciplines and current practices. The critical-holistic health, nutrition, and development promotion model offers a productive alternative paradigm for university-community partnerships on health, nutrition, and development issues. The model has been used successfully in education, research, and practice in Brazil and the United States and enhances the linkages among individual, societal, and institutional responsibilities. It is especially valuable in communities where social aspects such as low incomes and contaminated water supplies call for ...

Volume 1: The Economic and Social Consequences of Conflict

Abstract: Wars, especially civil wars, are among the most serious causes of human suffering and underdevelopment. Yet economic analysis of developing countries at war is relatively rare. These volumes aim to reverse this neglect, tracing the economic and social consequences of conflict both theoretically and through empirical investigations, including seven country case studies. A major objective is to identify policies which may reduce the heavy human and economic costs. Volume One provides a general framework for the analysis, examines the political economy of countries at war, and provides an empirical overview of the costs of war for the poor countries worst affected by conflict. The approach is multidisciplinary: political and sociological analysis is needed in order to understand motivations and behaviour during conflict; while economic analysis is necessary to evaluate how poor people are affected. The analysis includes an investigation of how the international system, including food aid, affects the war economies, and identifies international as well as domestic policies which may reduce the human and economic costs of conflict. The subject is particularly important in view of the high incidence of wars in poor countries. Between 1950 and 1990, around 15 million deaths were caused (directly or indirectly) by war in developing countries. The end of the Cold War led to a transition to peace in many of the areas in which conflict had been fuelled by East-West antagonism, but new wars erupted. From 1989 to 1995, between 34 and 51 armed conflicts were waged each year, the great majority in poor developing countries. These volumes investigate economic and social consequences at macro-, meso- and micro- levels, aiming to identify the indirect costs (e.g. via inflation and reduced entitlements) as well as direct costs of military operations. The in-depth country case studies published in Volume Two (Afghanistan, Mozambique, Nicaragua, Sierra Leone, Sri Lanka, Sudan and Uganda) are summarized in Volume One. These explore the main economic mechanisms operating during war and the policy responses of governments and international actors, showing how each can enlarge the costs and further fuel the conflicts. The large variations in this response and in the consequent costs point to domestic and international policies which can reduce the human and economic costs even before peace is restored. Contributors to this volume - Frances Stewart Valpy Fitzgerald David Keen Cindy Huang Michael Wang Eric Greitens Emma Samman

The Race Against Underdevelopment: A Mirage or Reality

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The Underlying Constraints On Corporate Bond Market Development in Southeast Asia

Abstract: There has been little analysis on the underlying institutional constraints to corporate bond market development in Thailand, Malaysia and Indonesia. Research so far has concentrated on weaknesses in market infrastructure. This paper illustrates the interlocking relationships between corporations, banks and governments to have dissuaded bond issuance by companies and also contributed to the underdevelopment of the demand side of the market. The implication of this research is that, in addition to the oft-recommended measures to strengthen the market infrastructure, corporate bond market development in these countries is also contingent upon deep-set institutional change.

Changing the Culture of Underdevelopment and Unsustainability

Abstract: Complex relationships exist between human nature and needs, cultural evolution and ecological dynamics. The purpose of this paper is to present a working hypothesis that explores how we may reverse worsening underdevelopment, poverty and unsustainability trends world-wide. Empirical evidence from cultural history and contemporary project experience are used to suggest a development process that combines three critical dimensions: ethics, productive social interaction and knowledge integration. Logic dictates that the process should be applied in any given country to mobilize investment in supplies of natural, human and economic capital, principally biodiversity, soil and water conservation, education and public health. A sociopolitical theory of underdevelopment is presented to suggest that unethical virtual cartels control social interaction, knowledge integration and resource mobilization, precipitating negative feedback effects on human development, ecological stability and, ultimately, cultural evolut...

Structural Volatility in Argentina: A Policy Report

Abstract: The author identifies sources of volatility in Argentina that include weak international financial links, a recurrent credit crunch and financial underdevelopment problem, a fragile fiscal situation, and a pervasive profit and collateral squeeze mechanism brought about by a rigid labor market and exchange rate system. The paper`s policy recommendations include improving external financial links, continuing and accelerating the path of domestic financial deepening, giving very high priority to the reduction of the public debt burden problem, and addressing the fundamental incompatibility between labor market rigidities and a highly inflexible exchange rate system.

From Manpower Supply to Economic Revival: Governance and Financing of Chinese Higher Education

Abstract: With an introduction to the overall underdevelopment of higher education in China compared with the American counterpart, this article briefly examines the main trends of over two decades of development of the governance and financing systems of China's higher education sector. This article analyzes the resource allocation from governments and revenue generation in institutions under the reform policies of administrative decentralization and financing diversification. The new "Great Leap Forward" in higher education in 1999 and beyond, i.e., the radical and, to a certain extent, desperate mass higher education policy and practice of expanding enrollments in order to spur domestic consumption, is critically analyzed. By examining the ongoing institutional merging and "co-building" and the most recent enrollment expansion, the writer points out the economic significance for higher education of overcoming diseconomies of scale and inefficiencies.

Geography and development

Abstract: The most striking fact about the economic geography of the world is the uneven spatial distribution of economic activity, including the coexistence of economic development and underdevelopment. High-income regions are almost entirely concentrated in a few temperate zones, half of the world's GDP is produced by 15 percent of the world's population, and 54 percent of the world's GDP is produced by countries occupying just 10 percent of the world's land area. The poorest half of the world's population produces only 14 percent of the world's GDP, and 17 of the poorest 20 nations are in tropical Africa. The unevenness is also manifest within countries and within metropolitan concentrations of activity. Why are these spatial differences in land rents and wages not bid away by firms and individuals in search of low-cost or high-income locations? Why does economic activity cluster in centers of activity? And what are the consequences of remoteness from existing centers? The authors argue that understanding these issues is central for understanding many aspects of economic development and underdevelopment at the international, national, and subcontinental levels. They review the theoretical and empirical work that illuminates how the spatial relationship between economic units changes and conclude that geography matters for development, but that economic growth is not governed by a geographic determinism. New economic centers can develop, and the costs of remoteness can be reduced. Many explicit policy instruments have been used to influence location decisions. But none has been systematically successful, and many have been very costly-in part because they were based on inappropriate expectations. Moreover, many ostensibly nonspatial policies that benefit specific sectors and households have spatial consequences since the targeted sectors and households are not distributed uniformly across space. These nonspatial policies can sometimes dominate explicitly spatial policies. Further work is needed to better understand these dynamics in developing countries.

Underdevelopment in Jamaica: An Institutionalist Perspective

Abstract: Despite constant postwar efforts to decipher the development process, it appears that little practical progress has been made. Many theories have been proposed (some leading directly to policy), but very few countries have succeeded in breaking the bonds of underdevelopment. This characterization fits Latin American and Caribbean (LAC) countries especially well. In LAC countries, the prescription most aggressively pursued has been industrialization. The assumption underlying this approach is that a declining sectoral share of agriculture and agricultural employment will lead to rising per capita income. For the most part, significant structural transformation was achieved, and today it is not uncommon to find LAC nations exhibiting high degrees of industrialization and a labor force that is divorced from the agricultural sector. In Jamaica, for example, between 1930 and 1990, the share of agricultural employment fell from an average of 60 percent to 11 percent, a decline that proceeded over 125 years in many of the currently developed nations. Yet, the expectation of consequent high wages and full employment has proved unfulfilled. Two kinds of explanations have emerged from this frustration: those based on free market principles and those focused on specific social, historical, or political phenomena as the culprit. Using Jamaica as our subject, we take a somewhat different approach. Our argument is that the island's lack of development is a reflection of powerful institutional forces acting to shift economic activity away from democratic problem solving and toward invidious distinction and conspicuous consump-

Cuba and the Latin American Terms of Trade: Old Theories, New Evidence

Abstract: There is little historical evidence to support the thesis that deteriorating terms of trade hindered Cuban and Latin American economic growth, at precisely the time when large international disparities in income began to emerge (1820s to 1870s). For Cuba at least, it was resurgent Spanish imperialism in the form of new tariffs, taxes, and outright prohibitions that distorted patterns of trade, particularly with the United States. Likewise for Mexico, Brazil, Argentina, and Peru, the terms of trade do not appear to have contributed significantly, if at all, to underdevelopment.

Information technology and the dialectics of poverty in Africa

Abstract: Developments in computer and telecommunications technology have pushed information into the forefront of business. Information is now considered the most important factor of production in a world economy that is gradually becoming globalised. These developments are also the principal pillars upon which the change from an industrial age to an information society hinges. This paper spells out the role of information in the new “information society” and how it affects the fortunes of a nation. A historical approach to underdevelopment and poverty is undertaken and applied, by analogy, to the call for African countries to use electronic formats to solve the continent’s myriad problems. A gradual approach to implementing IT is suggested.

The Social Origins of Balkan Politics: Nationalism, Underdevelopment, and the Nation-State in Greece, Serbia, and Bulgaria, 1880-1920

Abstract: What is the relationship between nationalism and modernization in Balkan political culture? Any complete answer must take into account the broader debate over whether the Balkan states’ pursuit of irredentism in the nineteenth and early twentieth centuries was detrimental to their modernization efforts. While in this essay I make the case for a common pattern of historical development in Greece, Serbia, and Bulgaria, I caution against interpretations that call for a Balkan exceptionalism. The factors present in the Balkan nationstates in the nineteenth and early twentieth century were also present in other European states. My analysis attempts to situate the Balkan experience in the broader European context while simultaneously arguing in favor of regional specificity. These two features are not mutually exclusive but complementary. The Balkan nation-states have strived for a long time to imitate Western European currents and social patterns, frequently with considerable success, but this effort should not be viewed as having eroded their peculiarities.

The Mediterranean: A firm priority of Spanish foreign policy?

Abstract: Spanish foreign policy pays special attention to the Mediterranean, basing itself on a model established in the mid‐1980s. The model is focused excessively on the Maghreb. While the period that led to the Euro‐Mediterranean Conference at Barcelona in 1995 was characterized by creative activism in both the bilateral and the multilateral sphere, the period since then has seen the Mediterranean lose prominence on Spain's foreign policy agenda. The challenges to be found in the area, most importantly underdevelopment, Islam and emigration, require a change of attitudes and instruments from those currently involved in Madrid's policy.