Living on one dollar Questions or comments After watching this film why do you think that Chino Rosa and Anthony are still living in extreme poverty What do you think are some of the things holding them back ID: 1045703
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1. Approaches to Improving Economic Development
2. Living on one dollarQuestions or comments?After watching this film, why do you think that Chino, Rosa, and Anthony are still living in extreme poverty? What do you think are some of the things holding them back?Need-based development focuses on helping people secure immediate needs like food, clothing, and shelter. Asset-based development tries to help people gain the skills, education, and resources to bring themselves out of poverty. Which type of development do you believe is more effective overall and why?
3. Improving economic developmentWhy should MDCs care if LDCs improve their economic development?
4. Self-Sufficiency ApproachPopular in early 20th centuryExample: IndiaPushes LDCs to provide for their own people, independent of foreign economiesRural areas must develop along with urban areas, and poverty must be reduced across the entire countryFavors a closed economic state with heavy import tariffs to impede foreign competitionCritics say the lack of foreign competition hinders efficiency and innovation
5. International Trade ApproachPromoted by Rostow in the 1960sPushes LDCs to identify its unique economic assetsDevelop just those distinctive local industriesDirect investment toward that industryWill get a comparative advantage over other countries in producing that particular good or serviceExamples:Japan: comparative advantage in electronicsFour “Asian Tigers”South Korea, Singapore, Hong Kong, TaiwanFocus on manufactured goods, esp. electronicsArabian Peninsula statesSaudi Arabia, Kuwait, Bahrain, Oman, UAEPetroleumCritics say increases dependence on MDCs
6. Structural Adjustment LoansA type of foreign direct investment (FDI)IMF and World Bank provide loans to LDCs with strings attachedStrings = LDCs must make certain economic changes in order to use the loanSpend what it can affordInvest more on health & education, less on militaryIncrease privatizationE.g., African countries required to sell water systems to private companiesWater used to be free when operated by government
7. Non-Governmental Organizations (NGOs)Organizations run by charities and private organizationsProvide supplies, resources, and money to local businesses and causes that promote developmentRed CrossDoctors Without BordersGreenpeaceGrameen
8. MicrofinanceProviding loans and financial services to people and small businesses in LDCs who wouldn’t be able to get them from commercial banksGrameen Bank, BangladeshFounder won Nobel Peace Prize, 2006Why focus on women?