27 terms

The End of Poverty

Economic possibilities for our time, by Jeffrey D. Sachs.
Ch.1- What are the three types of poverty?
1. Extreme poverty - cannot meet basic needs for survival
2. Moderate poverty - basic needs are just met
3. Relative poverty - household income is below a given proportion of the national average.
Ch.1-What are the economic possibilities for our time? pg. 25
1. To meet the Millennium Developmental Goals by 2015
2. To end extreme poverty by 2025
3. To ensure progress up the ladder of economic development by the worlds poor countries
4. To do this with modest financial help from rich countries, within the bounds of what they have long promised.
Ch.2-What was responsible for the inequality seen today in the world's economies? pg. 32
Technology and the industrial revolution
Ch. 2-Why did the British become the first to industrialize? pg. 33-34
1. British society was open
2.Britain had institutions of political liberty such as parliament
3. Britain was one the leading centers for Europes scientific revolution
4. Britain had several crucial geographical advantages, such as (a) low cost sea trade (b) navigable river ways into the country (c) a good environment for agriculture (d) close proximity to North America (e) Britain remained sovereign because it was an island and therefor did not get invaded (f) Britain had Coal
Ch. 2-What aspects of social mobility have changed due to economic growth? pg. 36-37
1. Gender Roles (women now work just as hard as men)
2. Family structure (Age of marriage, desired number of children)
3. Division of Labor (people are becoming more and more specialized in one particular skill) "a jack of all trades, an expert in none"
Ch. 3-What could lead to an increase in household income per capita? pg. 52-53
1. Saving
2. Trade
3. Technology
4. Resource Boom
Ch. 3-What could lead to a reduction of household income per capita? pg. 54-55
1. Lack of saving
2. Absence of trade
3. Technological Reversal
4. Natural Resource Decline
5. Adverse Productivity Shock
6. Population Growth
Ch. 3-Why have countries failed to achieve economic growth? pg. 56-66
1. The Poverty Trap
2. Physical Geography
3. Fiscal Trap
4. Governance Failures
5. Cultural Barriers
6. Geopolitics
7. Lack of innovation
8. Demographic Trap
Ch. 3-What is the poverty Trap? pg. 56-57
Being unable to save because all of your resources are being used to stay alive.
Ch. 3- What does Physical Geography have to do with poverty? pg. 57-58
Access to low cost sea based trade, natural resources, good soil and ample rainfall, navigable rivers. Diseases like malaria also are physical geography.
Ch. 3-What is the fiscal trap?
Not having enough money to pay off debt, which causes a vicious cycle of debt to increase.
Ch. 3-What are Governance Failures? pg. 59-60
When the government fails to maintain infrastructure, evade corruption or ensure domestic peace.
Ch. 3-What are Cultural Barriers? pg. 60-61
Denying women the right to work or be educated. Reason; it leaves half of your population without any way to support themselves or their families. Same goes for religious or ethnic minorities. Could lead to ethnic cleansing.
Ch. 3-What are examples of Geopolitics? pg. 61
Trade barriers and Sanctions; they only hurt the population.
Ch. 3-Why does lack of innovation in a poor country have such an effect? pg 61-62
Because even if someone in a poor country invents something, what can they do about it?
Ch. 3-What is the Demographic trap? pg. 62
Impoverished families usually choose to have multiple children, but can only educate one, leaving many others dependent on that sole child. That means that income, resources, etc. have to be shared among all of them.
Ch. 8-What are some Important dates in China's economic history? pg. 150-153
1. 1434-China closes off international trade
2. 1839-Start of Opium Wars with Britain. England forces China to open up trade
3. 1898-Attempts to reform China's failing economy are stifled by the Empress, reformers are executed.
4. 1937-Japan invades Chinese Mainland
5. 1949-Communist forces take control of China under the leadership of Mao Zedong
6. 1978-Market reforms begin, economic boom starts.
Ch. 8-Why did China do so well, whereas the Soviet Union faltered? pg. 163-164
1. China had no foreign debt
2. China had a large coastline, resulting in low cost sea trade
3. China had overseas Chinese communities
4. The Soviet Union was experiencing a decline in oil production; China was not
5. China, because they had not yet industrialized, could adapt to western specifications.
Ch. 8-What are China's three greatest challenges? pg. 164-166
1. China must industrialize the North and West, or face economic problems in the coming years.
2. China must decide on the role of the state sector in social and environmental forms.
3. Political Reform
Ch. 9- What are India's four phases of reforms? pg. 180
1. British Raj, 1900-47 (low growth)
2. Nehru's License Raj, 1947-70 (low growth)
3. Green Revolution, 1970-91 (faster growth)
4. Market liberalization, 1991-2000 (sustained high growth)
Ch. 9-What are India's economic challenges? pg. 180-181
1. Extend the Reforms
2. Invest Heavily in basic infrastructure
3. Invest in health and education of its people
4. Find a way to pay for these infrastructure and social investments
Ch. 10-What are some reasons why Africa is stuck in economic poverty? pg. 190-204
2. Malaria
3. Not enough is being done to stop them.
Ch. 10-What did Analytical Deliberation (the process of finding a cooperative approach to complex problems by building a consensus around a shared vision and understanding) identify as the three questions that must be answered to begin to help Africa? pg. 204
1. Is disease a cause of poverty, a result of poverty, or both?
2. Why do poor countries have a life expectancy several decades shorter than rich countries?
3. How much should the rich world help the poor world to invest in healthcare?
Ch. 11-What are the Millennium Development Goals? pg. 211-212
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Ch. 12- According to Sachs, what are the "big five" development interventions that the world should focus on?
1. Agricultural inputs
2. Investments in basic health
3. Investments in education
4. Power, transport and communications services
5. Safe drinking water and sanitation
Ch. 13-What are the six major kinds of capitol that the extreme poor lack? pg. 244-245
1. Human Capitol - health, nutrition, skills needed to be economically productive
2. Business Capitol - machinery, facilities motorized transport
3. Infrastructure - roads, power, water and sanitation, airports and seaports, telecommunications systems.
4. Natural Capitol - arable land, healthy soils, biodiversity, and well-functioning ecosystems
5. Public institutional capitol - commercial law, judicial systems, government services and policing.
6. Knowledge capitol - scientific and technological know-how that raises productivity in business.
Ch. 15-What is in the package of basic needs? pg. 292-93
1. Primary education for all children
2. Nutrition programs for all vulnerable populations
3. Universal access to antimalarial bed nets for all households in regions of malaria transmission
4. Access to safe drinking water and sanitation
5. One half kilometer of paved road for every thousand of population
6. Access to modern cooking fuels