Showing papers on "Underdevelopment published in 2021"
TL;DR: In this article, the authors propose an explanation of how multinationals can contribute to the enactment of the United Nations' sustainable development goals as part of their ordinary investments by grouping the 17 Sustainable Development Goals into six categories based on whether they increase positive externalities (knowledge, wealth, or health) or reduce negative externalities such as overuse of natural resources, harm to social cohesion, or overconsumption.
Abstract: Building on the concept of externalities, we propose an explanation of how multinationals can contribute to the enactment of the United Nations’ Sustainable Development Goals as part of their ordinary investments. First, we suggest grouping the 17 Sustainable Development Goals into six categories based on whether they increase positive externalities – knowledge, wealth, or health – or reduce negative externalities – the overuse of natural resources, harm to social cohesion, or overconsumption. Second, we propose placing these categories within an extended value chain to facilitate their implementation. Third, we argue that multinationals’ internal investments in host-country subsidiaries to improve their competitiveness contribute to addressing externalities in host-country communities, while external investments in host communities to solve underdevelopment generate competitiveness externalities on host-country subsidiaries.
66 citations
TL;DR: The authors argued that observed environmental racisms are instrumental to the development of white places, and instead of limiting the view of environmental harms to Black communities as spatial viole, they argue that environmental harms are beneficial to white communities.
Abstract: This paper argues that observed environmental racisms are instrumental to the development of white places. Rather than limiting the view of environmental harms to Black communities as spatial viole...
40 citations
30 Jan 2021
TL;DR: Rodrik et al. as mentioned in this paper argue that RCTs are limited to testing cosmetic problems of economic underdevelopment, and that the relationship between personal morality and dynamic efficiency concerns private property and contractual ties.
Abstract: Israel Kirzner lays the foundations of entrepreneurship as the driving force of the market process by referring to alertness, uncertainty, and plan coordination. His approach, following the footsteps of Mises and Hayek, legitimizes entrepreneurial creativity and profit-making as the heart of the dynamic market process. He argues that an accurate insight into the economic system requires exploring how entrepreneurial dynamics work in society. This statement contrasts with the theories and models that govern modern development economics, such as randomized controlled trials (RCTs), in which the zero-intelligence agents replace the flesh-and-blood entrepreneur.
Randomized controlled trials are considered the gold standard in modern development economics to assess treatment intervention efficacy in underdeveloped countries (Rodrik 2009). As a causal inference method, RCTs seek to determine whether a program had the outcome for which it was designed. Experts often utilize purely quantitative and experimental strategies for their guiding insights through trial and error of different interventions. In the ethics domain, experts seek to maximize the cost-benefit of specific interventions subject to a given set of data to rectify the inequalities generated by the market economy in underdeveloped economies. The economist becomes a kind of plumber who designs the creation and distribution of the “social pie,” assigning the respective slices to the specific individuals who participate in the experiments. Consequently, RCTs have justified active government intervention in the market process on behalf of policy advisers.However, Kirzner’s theory of entrepreneurship indicates that modern development economics’s core problem is epistemological and related to using the criterion of static efficiency in applied economics. Although RCTs are considered one of the most rigorous methods to inquire into the effectiveness of development policies, their design lacks interpretative capacity on the essence of economic phenomena. Experts on RCTs do not recognize that economic development is the byproduct of achieving social cooperation and coordination driven by purposeful human action under the division of labor. If the essence of economic phenomena is disregarded, it is impossible to address poverty causes adequately. Accordingly, RCTs are limited to testing cosmetic problems of economic underdevelopment.This article does not seek to offer specific proposals to remedy RCTs’ shortcomings, but it provides a theoretical foundation to guide further theoretical and empirical work. It argues that development economists have overlooked Kirzner’s theory of efficiency, which cannot be omitted without impairing the premise that development theory involves studying the dynamic process of plan coordination. Its relevance lies in the fact that Kirzner’s research can reshape modern development economics, which implies a theoretical advancement in several areas:• Kirzner’s analysis of static efficiency reveals the epistemological and ethical problems of modern development economics.• The framework of Kirzner’s dynamic efficiency clarifies the role of entrepreneurship in understanding how the market works.• Dynamic efficiency recognizes the creative and coordinating potential of entrepreneurship and capital accumulation in economic development.• Kirzner’s economic development theory responds to ethical dilemmas about (in)equality and pure profit within a market economy.• Contemporary research on dynamic efficiency explores new branches, such as the role of psychology, culture, and morality in economic development.Most research on efficiency and underdevelopment is still packaged in mathematical models that reduce the market’s complexity to comparative statics. Fortunately, a growing number of theories have begun to challenge this state of affairs by examining the following: First, psychology’s impact on productivity or the unproductiveness of entrepreneurial profit opportunities. Second, the role of culture in the dynamic process of institutional change and the adaptation of the entrepreneurial performance that ensures or deter economic development. Third, the relationship between personal morality and dynamic efficiency concerns private property and contractual ties. Hence, there are several strands of new literature on dynamic efficiency and development economics. This article focuses on one aspect that concerns both economists and governments in terms of modern thinking and practice: the role of efficiency (static and dynamic) in economic development.
19 citations
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TL;DR: In this paper, the authors investigate the extent to which the quality of institutions helps shape international differences in economic complexity, a novel measure of productive capabilities, and highlight the important role of establishing well-functioning institutions in driving structural transformation towards productive activities.
Abstract: It is well established in the long-term development literature that deeply rooted institutions are the fundamental drivers of comparative prosperity across the world. This study contributes to this line of inquiry by investigating the extent to which the quality of institutions helps shape international differences in economic complexity – a novel measure of productive capabilities. More specifically, economic complexity corresponds to an enhanced capacity to produce and export a diverse range of sophisticated (high-productivity) products, which is highly predictive of future patterns of growth and development. The central hypothesis is that institutions are linked to higher degrees of economic complexity via strengthening incentives for innovative entrepreneurship, fostering human capital accumulation, and directing human resources towards productive activities. Employing data for up to 115 countries, I consistently obtain precise estimates of the positive effects of institutional quality, measured by the Economic Freedom of the World Index, on economic complexity. The findings highlight the important role of establishing well-functioning institutions in driving structural transformation towards productive activities, which contributes to alleviating the persistence of underdevelopment.
17 citations
TL;DR: In this paper, the role of financial institutions in the British Industrial Revolution is discussed, including the use of property as collateral, and the evolution of British financial institutions before 1820.
Abstract: This scoping paper addresses the role of financial institutions in empowering the British Industrial Revolution. Prominent economic historians have argued that investment was largely funded out of savings or profits, or by borrowing from family or friends: hence financial institutions played a minor role. But this claim sits uneasily with later evidence from other countries that effective financial institutions have mattered a great deal for economic development. How can this mismatch be explained? Despite numerous technological innovations, from 1760 to 1820 industrial growth was surprisingly low. Could the underdevelopment of financial institutions have held back growth? There is relatively little data to help evaluate this hypothesis. More research is required on the historical development of institutions that enabled finance to be raised. This would include the use of property as collateral. This paper sketches the evolution of British financial institutions before 1820 and makes suggestions for further empirical research. Research in this direction should enhance our understanding of the British Industrial Revolution and of the preconditions of economic development in other countries.
16 citations
TL;DR: In this article, the authors present a simple model of parties engaged in potential conflict over resources, revealing that economic prosperity is a function of equilibrium conflict prevalence, determined not only by a region's own resources but also by the resources of its neighbors.
16 citations
TL;DR: In this paper, the authors examined how this diagnosis holds up against evidence on specific urban problems systematically collected and forensically analyzed, and found that the population-heavy approach to urban problems in Africa totters badly.
16 citations
01 Jan 2021
TL;DR: This paper revisited the relationship between capitalism and colonialism by examining the case of British India under East India Company rule (1757-1858) and concluded that there was a drain of wealth and its effects on the underdevelopment of former European colonies.
Abstract: This paper revisits the relationship between capitalism and colonialism by examining the case of British India under East India Company rule (1757-1858). The Marxist-nationalist historiography claims that colonialism generated a steady drain of wealth and that this drain was responsible for Indian famines, poverty, inequality, and economic retardation. I use the East India Company budgets to measure the extent of the wealth that was drained through three direct channels: oppressive land taxes, unproductive expenditures on the imperial army and civil administration, and the unrequited export of commodities from India to Britain. I conclude that available figures lend empirical support to the Marxist interpretation. There was a drain of wealth and its effects on the underdevelopment of former European colonies deserve further research.
13 citations
TL;DR: In this article, a systematic review of the findings gathered from the literature on the changing role of the state in governing 3T mining is presented, and the authors argue that in the study areas (i.e. North-Kivu, South-Kvou and Tanganyika), the challenges faced by the state for governing artisanal mining tend to be similar, complex, and rooted in the mining history of eastern DRC.
11 citations
TL;DR: This article found that not only are schools not equipped to provide the quality education as set out in SDG 4, but teachers need additional training to give expression to the ideals of SDGs 4.
Abstract: As we enter the last ten years leading to the realisation of the Sustainable Development Goals in 2030, African countries are still plagued with poverty and underdevelopment. For most children in Africa, the attainment of Sustainable Development Goal (SDG) 4 will remain elusive. Drawing from two interrelated empirical studies, one focusing on citizenship and social cohesion at high school level and the other on the implementation of assessment for learning at primary school level, it was found that not only are schools not equipped to provide the quality education as set out in SDG 4, but teachers need additional training to give expression to the ideals of SDG 4. In order for this to be adequately addressed, all interested stakeholders—government, business, and NGOs—need to be involved.
9 citations
01 Jan 2021
TL;DR: Tausch et al. as mentioned in this paper used standard development accounting to arrive at a synthesis of the performance of Arab countries as they approach the abyss of the impending global economic recession and health crisis, connected with the Corona (Covid-19) pandemic.
Abstract: Our exercise of standard development accounting attempts to arrive at a synthesis of the performance of Arab countries as they approach the abyss of the impending global economic recession and health crisis, connected with the Corona (Covid-19) pandemic. The choice of our indicators was guided by world system (Frank, ReOrient: Global economy in the Asian Age Ewing, University of California Press, 1998) and dependency approaches to development (Bornschier et al., Transnational corporations and underdevelopment. Frederic Praeger, New York, 1985); by later globalization-oriented debates about development (Tausch, Int J Heal Plan Manag 27(1):2–33, 2012a; Tausch, International macroquantitative data. Faculty of Economics, Corvinus University of Budapest. Available at http://www.uni-corvinus.hu/index.php?id=47854t Tausch, Int Soc Sci J 68(227–228):79–99. DOI: 10.1111/issj.12190, 2018); and by indicators featuring internal, “home-made” restrictions on democracy and gender equality. The choice of our indicators was also guided by research on Islamism, and the issues of the way, religion, culture and values are structured in the region (Grinin et al. 2020).
TL;DR: In this article, an influential controversy within the Latin American development school and the possibilities of extrapolating it to Eastern Europe is revisited, examining the relevance of Ernesto Lacl...
Abstract: This paper reconsiders an influential controversy within the Latin American development school and the possibilities of extrapolating it to Eastern Europe. It examines the relevance of Ernesto Lacl...
TL;DR: In this paper, the authors investigate how institutional and economic factors affect economic development in Sub-Saharan African countries from 1990 to 2016 by utilizing second-generation panel data methods and find that democracy, peace, market size, and population growth have a positive and statistically significant effect on economic development, whereas foreign direct investment has a negative one.
Abstract: The Sub-Saharan African region experienced a fluctuated development process, and it is one of the regions facing severe underdevelopment in the modern era. Many studies have been conducted to unveil the factors, which cause the underdevelopment, and there is an ongoing discussion on this topic. The main objective of this study to inquire about how institutional and economic factors affect economic development in Sub-Saharan African countries from 1990 to 2016 by utilizing second-generation panel data methods. Empirical findings are as follows: (i) Democracy, peace, market size, and population growth have a positive and statistically significant effect on economic development, whereas foreign direct investment has a negative one. (ii) Total debt service, investments, and corruption have a negative but statistically insignificant effect on economic development. (iii) Moreover, the effect of urban population on economic development varies based on the estimation methodology. The implications and policy inferences of the empirical findings are discussed in the related sections of the study.
TL;DR: In this paper, a survey was carried out through semi-structured interviews with the presidents and executives of a sample of twenty social cooperatives and social enterprises, which are involved in farming activities with the aim of promoting local development and the regeneration of the territory.
TL;DR: In this article, the authors highlight how both of these programmes emerged in response to what Ford officials understood to be a global urban crisis, caused by the migration of "backward" rural populations into the cities.
Abstract: Between 1958 and 1966 the Ford Foundation embarked on a series of pilot projects of ‘urban community development’ in India and the United States. This article will highlight how both of these programmes emerged in response to what Ford officials understood to be a global urban crisis, caused by the migration of ‘backward’ rural populations into the cities. Rather than modernizing under the pressure of urban living, these newcomers appeared to be pooling into pockets of underdevelopment – ‘ghettos’ in the United States and ‘slums’ in India. Ford sought to tackle the problem by encouraging the participation of these marginalized communities in the process of urban renewal, a strategy intended to engineer the psychological modernization of their residents. In practice, however, Ford struggled to control the channels into which these mobilizations flowed, with poor urban residents utilizing the projects to push for radical changes concerning housing, policing, and tenant–landlord relations.
28 Jan 2021
TL;DR: The aftermath of over 50 years of uninterrupted conflict is not only underdevelopment and casualties, but also the loss of social ties, the mistrust, and the difficulties to build a society where...
Abstract: The aftermath of over 50 years of uninterrupted conflict is not only underdevelopment and casualties. It is also the loss of social ties, the mistrust, and the difficulties to build a society where...
TL;DR: In this paper, the authors argue that the importance of avoiding simplistic dichotomies between good vs bad institutions, a classification that obscures as much as it reveals, needs to be taken more seriously.
TL;DR: In this paper, an explanation for the long-standing disparity in corruption and underdevelopment across the world based on variation in the intensity of ultraviolet radiation (UV-R) was proposed.
Abstract: It has been commonly observed that tropical countries typically suffer from intense corruption and underdevelopment. I offer an explanation for this long-standing disparity across the world based on variation in the intensity of ultraviolet radiation (UV-R). The central idea of this paper holds that UV-R is positively associated with the (historical) prevalence of eye diseases, which significantly shortens work-life expectancy as a skilled worker. This arguably shapes the global pattern of corrupt practices. Interestingly, this finding appears to be strong and insensitive to accounting for different theories explaining differences in corruption levels across the globe. Further analyses using individual-level data taken from the World Values Survey and provincial level data for China lend strong credence to the cross-country evidence.
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31 May 2021TL;DR: In 2019, it marked 10 years since the beginning of the Boko Haram insurgency in Nigeria, a violent conflict that later spilled over to Chad, Cameroon, and Niger, killing over 37000 people and displacing 2,000 people.
Abstract: 2019 marked 10 years since the beginning of the Boko Haram insurgency in Nigeria—a violent conflict that later spilled over to Chad, Cameroon, and Niger, killing over 37000 people and displacing 2....
TL;DR: In this paper, a market-oriented green innovation is receiving increasing attention, due to the dominance of traditional technologies and the underdevelopment of green technology capabilities, the speed at speed at...
Abstract: Market-oriented green innovation is receiving increasing attention. However, due to the dominance of traditional technologies and the underdevelopment of green technology capabilities, the speed at...
TL;DR: In this article, the theoretical aspects of the formation of dialogical speech in preschool children with general speech underdevelopment were investigated. But the authors focused on the theoretical aspect of the dialogic speech and did not consider the practical aspects.
Abstract: This article is devoted to the consideration of the theoretical aspects of the formation of dialogical speech in preschool children with general speech underdevelopment. The article examines the essence of dialogic speech, describes the features of the dialogic speech of preschoolers with general speech underdevelopment, offers ideas of activity based on fairy tales for the formation of dialogic speech among preschoolers with general speech underdevelopment. Ключевые слова: диалогическая речь, общее недоразвитие речи, дошкольники с ОНР, формирование диало-
TL;DR: In this paper, a questionnaire survey regarding perceptions of the Balkans was conducted and the results indicate that the Balkans can be seen as a sort of vernacular anti-region: the kind from which states in or near its boundaries attempt to exclude themselves, while simultaneously trying to include their neighbors to the south and east.
Abstract: The Balkans are still an imprecisely defined and relatively unknown area in southeastern Europe. They are a historical‐political term, often provoking negative associations that are synonymous with underdevelopment, backwardness, and primitiveness. This research is aimed primarily at exploring how the Balkans are perceived by students of geography in Zagreb and Maribor and what associations they provoke. It further seeks to investigate whether the Balkans are primarily a cognitive construct that is spatially determined on an individual level, based on an individual’s own insights, attitudes, values, and other determinants. Therefore, a questionnaire survey regarding perceptions of the Balkans was conducted. The results indicate that the Balkans can be seen as a sort of vernacular anti‐region: the kind from which states in or near its boundaries attempt to exclude themselves, while simultaneously trying to include their neighbors to the south and east.
TL;DR: In this paper, the authors explored the link between innovative food production and food consumption entrepreneurship and underdevelopment based on sustainable development goals (SDGs) and generated a conceptual model designed to bridge the development gap between privileged and marginalised communities in SA.
Abstract: Innovative food production and food consumption entrepreneurship can be viewed as a recipe for delivering sustainable development goals to promote economic, human, and community growth among vulnerable and marginalised communities in South Africa (SA). This study critically analyses the trends and related issues perpetuating the development gap between privileged and marginalised communities in SA. It explores the link between innovative food production and food consumption entrepreneurship and underdevelopment based on sustainable development goals (SDGs). The study also generates a conceptual model designed to bridge the development gap between privileged and marginalised communities in SA. Philosophically, an interpretivism research paradigm based on the socialised interpretation of extant literature is pursued. Consistent with this stance, an inductive approach and qualitative methodological choices are applied using a combination of thematic analysis and grounded theory to generate research data. Grounded theory techniques determine the extent to which the literature review readings are simultaneously pursued, analysed, and conceptualised to generate the conceptual model. Research findings highlight the perpetual inequality in land distribution, economic and employability status, social mobility, gender equity, education, emancipation, empowerment, and quality of life between privileged and marginalised societies in SA. Underdevelopment issues such as poverty, unemployment, hunger, criminal activities, therefore, characterise marginalised communities and are linked to SDGs. Arguably, food production and food consumption entrepreneurship are ideally positioned to address underdevelopment by creating job opportunities, generating income, transforming the economic status, social mobility, and quality of life. Although such entrepreneurship development initiatives in SA are acknowledged, their impact remains insignificant because the interventions are traditionally prescriptive, fragmented, linear, and foreign-driven. A robust, contextualised, integrated, and transformative approach is developed based on the conceptual model designed to create a sustainable, innovative, and digital entrepreneurship development plan that will be executed to yield employment, generate income and address poverty, hunger, gender inequity. To bridge the gap between privileged and marginalised societies. The conceptual model will be used to bridge the perpetual development gap between privileged and marginalised societies. In SA is generated. Recommended future research directions include implementing, testing, and validating the model from a practical perspective through a specific project within selected marginalised communities.
TL;DR: In this paper, the authors analyze the geographical constraints of MENA and the institutions of the region, particularly ones that pertain to land and property rights, and offer a new explanation for the underdevelopment of MENAs.
Abstract: The continuing economic stagnation of the Middle East and North Africa (MENA) has typically been explained in terms of the resource‐curse thesis. Yet, without analyzing the geographical constraints of MENA and the institutions of the region, particularly ones that pertain to land and property rights, this explanation is partial at best. Specifically addressing the structural constraints on using land for economic transformation, we offer a new explanation for the underdevelopment of MENA. We show that transformation in agriculture is inhibited by fuzzy property rights in land that were inherited from colonial and post‐colonial agricultural policies. Political‐economic transformation in MENA could unleash the power of land in the region.
TL;DR: In this paper, the authors discountenances and refutes the hypothesis that ethnicity is responsible for Nigeria's lack of industrialization, but rather places the burden for Nigeria under-industrialization at the doorsteps of vested interests, neo-colonial dependence, and the distorted, dependency worldview of the ruling class responsible for industrial policy formulation.
Abstract: Is Nigeria’s multi-ethnic and multicultural configuration responsible for her low level of industrialisation? Is ethnic pluralism really a significant constraint to Nigeria’s industrial development? What role has Nigeria’s political economy played in foisting industrial underdevelopment on Nigeria? What lessons can be learnt from other industrialised but multi-ethnic countries, as Nigeria strives to industrialise? These were the questions that claimed our attention in this paper. The paper discountenances and refutes the hypothesis that ethnicity is responsible for Nigeria’s lack of industrialization, but rather places the burden for Nigeria’s under-industrialization at the doorsteps of vested interests, neo-colonial dependence, and the distorted, dependency worldview of the ruling class responsible for industrial policy formulation.
29 Jul 2021
TL;DR: The authors discusses three main sources of the prevailing ideology of economic policy in new states: their own political and economic nationalism; the heritage of ideas from the interwar period concerning the nature of the development problem; and the influence of the advanced countries as advisers and sources of foreign aid.
Abstract: This chapter discusses their contributions to the ideology of economic policy in the new states. Nationalism, therefore, involves an ideological preference in economic policy for a number of goals. The chapter concerns three of the main sources of the prevailing ideology of economic policy in new states: their own political and economic nationalism; the heritage of ideas from the interwar period concerning the nature of the development problem; and the influence of the advanced countries as advisers and sources of foreign aid. Many experts in the field of development economics have derived their main experience of development problems from a brief field trip to India at governmental expense and automatically think of India as the type-case of underdevelopment. The notion of the double standard of morality cannot be explored in detail here, but it colors every aspect of the attitudes of new nations toward the advanced countries with which they trade and from which they receive aid.
30 Apr 2021
TL;DR: In this article, the authors proposed a basic concept of special poor areas and used this concept to develop a method to identify them and analyzed their basic quantitative structure and pattern of distribution.
Abstract: Special functional areas and poor areas tend to spatially overlap, and poverty is a common feature of both. Special poor areas, taken as a kind of “policy space,” have attracted the interest of researchers and policymakers around the world. This study proposes a basic concept of special poor areas and uses this concept to develop a method to identify them. Poor counties in China are taken as the basic research unit and overlaps in spatial attributes including old revolutionary bases, borders, ecological degradation, and ethnic minorities, are used to identify special poor areas. The authors then analyze their basic quantitative structure and pattern of distribution to determine the geographical bases’ formation and development. The results show that 304 counties in China, covering a vast territory of 12 contiguous areas that contain a small population, are lagging behind the rest of the country. These areas are characterized by rich energy and resource endowments, important ecological functions, special historical status, and concentrated poverty. They are considered “special poor” for geographical reasons such as a relatively harsh natural geographical environment, remote location, deteriorating ecological environment, and an inadequate infrastructure network and public service system. Some areas suffer from underdevelopment and even lack the infrastructure for basic living. In order to prevent further deterioration of the economic, social, and ecological environments in these areas, targeted policies need to be implemented.
TL;DR: Ayode et al. as discussed by the authors examined the underlying defects in the cross-border legal framework on asset recovery and confiscation and proffers suggestions on how these defects could be remedied.
Abstract: In most developing countries with weak rule of law and fledgling democratic institutions, theft of public assets by public office holders is rampant and has a strong correlation with the excruciating level of poverty and underdevelopment that besiege these countries (Ijewereme, 2013). While a myriad number of reasons may be responsible for this situation, the absence of a mature legal framework as well as the scant availability of sufficiently trained government personnel to trace and recover stolen assets, hidden domestically and abroad, arguably remain contributory factors. Granted that corrupt public office holders are typically enabled by porous (domestic) legal frameworks that provide them wide escape routes for their crimes, contestably however, the laws bordering on confiscation of assets in many foreign countries (safe havens) seem intentionally designed to frustrate any recovery of stolen assets by developing countries. In the aftermath of the COVID-19 pandemic, the rate of stealing public assets by public office holders in developing countries is foreseen to rise astronomically and is likely to deepen their existing levels of poverty and hopelessness (Ayode, 2020). Using Nigeria as an example of a developing country, the paper critically examines the underlying defects in the cross-border legal framework on asset recovery and confiscation and proffers suggestions on how these defects could be remedied. © 2021 The Author.