This sixteenth edition of ANNUAL EDITIONS: DEVELOPING WORLD provides convenient, inexpensive access to current articles selected from the best of the public press. Organizational features include: an annotated listing of selected World Wide Web sites; an annotated table of contents; a topic guide; a general introduction; brief overviews for each section; a topical index; and an instructor’s resource guide with testing materials. USING ANNUAL EDITIONS IN THE CLASSROOM is offered as a practical guide for instructors. ANNUAL EDITIONS titles are supported by our student website, www.dushkin.com/online.
UNIT 1. Understanding the Developing World
1. More or Less Equal?, The Economist, March 13, 2004
The common assumption that the gap between rich and poor countries continues to grow is called into question by new studies that show less economic inequality. Depending on how the data is measured and interpreted, the proportion of those living on less than a dollar a day has fallen more rapidly than critics of globalization admit. These findings seem to argue in favor of globalization but some regions continue to lag behind.
2. The Development Challenge, Jeffrey D. Sachs, Foreign Affairs, March/April 2005
Although the United States advocates development and is quick to respond to natural disasters like the recent tsunami, U.S. assistance to the developing world is inadequate to the task of assisting poor nations. Without substantially more U.S. aid, poor countries will have difficulty meeting the Millenium Development Goals, U.S. commitment to development will be suspect, and the accompanying increase in tension and instability will pose a greater threat to international security.
3. Strengthening Governance: Ranking Countries Would Help, Robert I. Rotberg, The Washington Quarterly, Winter 2004/2005
Poorly governed countries are associated with poor economic performance and insecurity. Good governance has become an important component of assessing a country’s eligibility for aid and debt relief. Robert Rotberg advocates the development of governance index to rank countries on their performance. Relevant data for this index is available from a variety of sources but requires the establishment of appropriate indicators and a method of ranking.
4. Institutions Matter, but Not for Everything, Jeffrey D. Sachs, Finance & Development, June 2003
The West has placed increasing emphasis on the importance of institutions to development. Economist Jeffrey Sachs argues that while institutions matter, other factors play a role in generating economic development. Focusing on fighting disease, enhancing agriculture, and building infrastructure in poor countries would have a bigger impact on reducing poverty than institutions and governance.
5. Development as Poison, Stephen A. Marglin, Harvard International Review, Spring 2003
The West’s conception of development emphasizes markets and assumes that following its lead will result in development. In reality, Western culture undermines indigenous culture, especially that of community. The West should realize that the values underlying its culture are not necessarily universal.
6. Selling to the Poor, Allen L. Hammond and C.K. Prahalad, Foreign Policy, May/June 2004
The world’s poor have largely been ignored by consumer-oriented multinational corporations, but poor people represent a huge untapped market. To take advantage of this market, companies wishing to sell their products have to tailor their marketing approach. Marketing to the developing world brings the poor greater choice, incorporates them into the international economy, and brings the benefits of globalization.
7. The Challenge of Worldwide Migration, Michael W. Doyle, Journal of International Affairs, Spring 2004
International migration is increasing as people move to take advantage of economic opportunity associated with globalization. The birthrate crisis in the industrialized world is likely to increase this migratory pattern. Migration is also a product of conflict and persecution. To accommodate the interests of both countries of origins and destination, greater international cooperation will be required to resolve inevitable problems.
UNIT 2. Political Economy and the Developing World
8. International Trade, Arvind Panagariya, Foreign Policy, November/December 2003
Controversy over international trade was highlighted by the collapse of the 2003 Cancun WTO talks. Economist Arvind Panagariya examines several assertions about trade and concludes that the common wisdom obscures some inconvenient facts regarding protectionism, agricultural subsidies, and the WTO.
9. Trade Secrets, Lori Wallach, Foreign Policy, January/February 2004
Interpretations differ regarding the effects of the collapse of the Cancun WTO talks, but Lori Wallach argues that the controversy over the cause of the collapse overshadows the reality that it is no longer business as usual at the WTO. The inability of the powerful countries to dictate the agenda at Cancun signals either a change in the way that the rules governing international trade are formulated or the inevitable collapse of the current system of negotiation.
10. Why Prospects for Trade Talks are Not Bright, Aaditya Matto and Arvind Subramanian, Finance & Development, March 2005
According to a World Bank economist and an IMF official, the prospects for the successful conclusion of the Doha Round of international trade talks are not promising. Neither industrial nor developing countries seem inclined to make the required concessions to complete the Doha Round. Regional trade blocs may also be undermining agreements concluded under WTO auspices. In the end, participants may be left with merely the illusion of a successful round of negotiations.
11. Why Developing Countries Need a Stronger Voice, Cyrus Rustomjee, Finance & Development, September 2004
The IMF began efforts to combat poverty and encourage growth in poor countries in 1999. The success of the Fund’s policy decisions are dependant on a redesign of the approach to economic stabilization, adequate debt relief, an altering of trade patterns to address poor countries’ disadvantages, and an increase in capacity building. To increase program effectiveness, developing countries need more input into the Fund’s decisions.
12. Why Should Small Developing Countries Engage in the Global Trading System?, Rubens Ricupero, Faizel Ismail, and Sok Siphana, Finance & Development, March 2005
Globalization has emphasized the importance of participation in the global trade system. While some larger developing countries have successfully integrated into the system, many smaller developing countries remain concerned about the consequences of engaging in global trade. The former head of UNCTAD, South Africa’s WTO delegate, and Cambodia’s Secretary of State for Commerce discuss the advantages for smaller countries and offer suggestions for successful integration of small developing countries.
13. Without Consent: Global Capital Mobility and Democracy, Jeff Faux, Dissent, Winter 2004
Writing the rules to govern the global trading system pits the interests of the world’s elite against those of the poor. Neoliberalism, advocated by the wealthy countries and exemplified in NAFTA, has produced less than satisfactory results from the standpoint of developing countries. Efforts must be made to bring together those who advocate social justice and strengthen their negotiating position to advocate more effectively for the interests of the poor.
14. Making the WTO More Supportive of Development, Bernard Hoekman, Finance & Development, March 2005
Developing countries may benefit from special and differential treatment currently allowed under WTO rules. For these arrangements to work, the WTO should support agreements to remove barriers to products from poor countries, lower domestic barriers to spur price reductions and consumption, and support the establishment of regulations and institutions to support development. Greater flexibility to deal with problems on a country-by-country basis would enhance the WTO’s contribution to development.
15. How to Run the International Monetary Fund, Jeffrey D. Sachs, Foreign Policy, July/August 2004
Economist Jeffrey Sachs calls upon new IMF Managing Director Rodrigo Rato to restore the credibility and legitimacy of the organization. Sachs notes the dominance of the rich countries and says that the organization’s policies reflect the priorities and interests of those countries. He calls upon the IMF to encourage rich countries to increase aid and reduce debt. The U.S. must also improve its fiscal situation to avoid threats to the global economy.
16. A Regime Changes, The Economist, June 4, 2005
The selection of Paul Wolfowitz as the new head of the World Bank was controversial His knowledge of finance and development is limited and he is closely associated with the push for regime change in Iraq. His views will have an impact at the Bank as it becomes more deeply involved in promoting good governance, increasing capacity building, and other political issues.
17. Ranking the Rich 2004, Foreign Policy, May/June 2004
The second annual Commitment to Development Index ranks rich countries according to how their policies help or hinder development . There have been revisions to the index and as a result there are significant changes in the rankings. The data clearly shows that rich countries could make substantially greater contributions to development.
