Development Gap - Causes

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This report is based on a master set of data that has been compiled by an Inter-Agency and Expert Group on MDG Indicators led by the Department of Economic and Social Affairs of the United Nations Secretariat, in response to the wishes of the General Assembly for periodic assessment of progress towards the MDGs. The Group comprises representatives of the international organizations whose activities include the preparation of one or more of the series of statistical indicators that were identified as appropriate for monitoring progress towards the MDGs, as reflected in the list below. A number of national statisticians and outside expert advisers also contributed.

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First 4 Readings of Locating Oneself in Global Learning! I suggest to do all of the readings from the class reading selection list on it'slearning. Here is just a reference so you do not have to open 4 different links in order to remember the content. Will add more as class progresses. We will have a great time learning together. These words are not my own and taken directly from the designated readings.

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DESA News is an insider's look at the United Nations in the area of economic and social development policy. The newsletter is produced by the Communications and Information Management Service of the United Nations Department of Economic and Social Affairs in collaboration with DESA Divisions. DESA News is issued every month. For more information: http://www.un.org/en/development/desa/newsletter/desanews/index.html

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On first hearing the phrase ‘informal economy’ (IE), most people think of illegal activities, such as trading in drugs or prostitution, paying bribes or avoiding taxes. As such, it is often regarded as something that should be eliminated in pursuit of a formal economy (FE). Without much analysis, one can even assume that the IE is a transitional route to formality as economies grow and regulation becomes stronger. Yet, reality seems to confound these expectations, at least in the short- to medium-term. The IE currently accounts for over half of global employment and as much as 90 per cent of employment in some of the poorer developing countries. Due to its flexible nature, the IE is in some ways better able to adapt to difficulties such as the current global recession, providing some measure of support to those most in need. Since it provides employment and income for the most impoverished particularly women it is a key route to achieving the millennium development goals (MDGs) of eradicating extreme poverty and hunger, promoting gender equality and empowering women. As such, some governments are beginning to become more aware of the vital role the IE plays, especially for the most vulnerable. Because of this awareness, some now look to policies that support the IE to © Muyeye Chambwera become more productive, provide a better voice in governance and a better quality of life for those dependent on it. Failure to fully grasp the nature, dynamics and drivers of the IE presents a dilemma for the sustainable development agenda. Some of the questions may include: (1) Does development entail eliminating the IE or working with it? (2) Should it be suppressed or promoted, given its predominance? While this paper does not seek to answer these questions directly, it highlights key features and realities of the IE, providing a context for planning and pursuing sustainable development initiatives. Indeed the delivery and outcomes of ideals (such as the MDGs, poverty reduction, climate change adaptation, low carbon development, the green The informal economy currently accounts for over half of global employment and as much as 90 per cent of employment in some of the poorer developing countries. economy, housing for all and agricultural development) depend on the assumptions society makes today about the future economic scenarios which shape rural-urban dynamics, the use of natural resources, and the way in which product and labour markets operate, among other things. The IE can hardly be measured directly. Even though some individual countries have attempted comprehensive studies, there is little global analysis. The most recent analysis, including World Bank studies, use International Labour Organization (ILO) estimates from 1994 to 2000 and Schneider’s estimates for 110 countries over the period 1999 to 2004, to provide a global cross-section of data.

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j u l y / a u g u s t 2 o o 2 Volume 81 • Number 4 The Corporate Key Using Big Business to Fight Global Poverty George C. Lodge In recent months, world leaders—including President George W. Bush and un Secretary-General Kofi Annan—have proclaimed their determination to reduce global poverty. Such promises, however, have been made before, and past eªorts to follow through on them have been dis- appointing. Success this time will require a new institution that can harness the capa- bilities of global corporations and, helped by loans from development agencies, directly attack the root causes of poverty. The need for corporate involvement in the fight against poverty stems from several factors. To begin with, many of the world’s poor live in countries where governments lack either the will or the ability to raise living standards on their own. Financial assistance to such governments, therefore, has often not helped their neediest citizens. In fact, in spite of the roughly $1 trillion that has been spent on grants and loans to fight poverty around the globe since the end of World War II, nearly half the world’s six billion people still live on less than $2 a day; a fifth get by on less than $1. At times, foreign aid has even worsened the plight of the poor, by sustaining the corrupt or otherwise ine⁄cient governments that caused their misery in the first place. In such mismanaged countries—which number close to 70—a way must be found to change the basic system. Globalization—seen by many today as a sort of cure-all—will certainly not eradicate poverty on its own. True, international trade and investment have increased vastly over the last decade, making many people richer. But the problem is that the process has not really been global enough. In fact, some two billion people today live in countries that are actually becoming less globalized: trade is diminishing in relation to national income, economic growth has stagnated, and poverty is on the rise. Most people in Latin America, the Middle East, and Central Asia are poorer today than they were ten years ago, and most Africans were better oª forty years ago. The average per capita income of Muslim countries, from Morocco to Bangladesh and Indonesia to [ 1 3 ] The Corporate Key Using Big Business to Fight Global Poverty George C. Lodge George C. Lodge is the Jaime and Josefina Chua Tiampo Professor of Business Administration, Emeritus, at Harvard Business School. His most recent book is Managing Globalization in the Age of Interdependence. the Philippines, is now just half the world average. Poverty is not, of course, a new phenom- enon. But during the Cold War, economic misery abroad did not matter to Washing- ton; the United States and its allies were concerned with sustaining anti-Soviet regimes, not raising living standards. Today, however, a new determination has emerged to deal with what one un panel has called the “pre-eminent moral and humanitarian challenge of our ...

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Despite the attainment of the famous Millennium Development Goals (MDGs) of reducing the number of poor people across the globe a significant number still live below the poverty line. The problem of poverty is more endemic in developing countries like Nigeria. Several intervention efforts have been in place to address the poverty question which persists partly due to serious financial exclusion and unethical activities of informal finance providers.

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1/7/2019 Realizeit ContentDelivery https://apus.realizeithome.com/RealizeitApp/ContentDelivery.aspx?Token=%2bsMFLZSXaJhmeXwREbE%2bGmTZYbwg0rvqrhY3cYTtFuJXpr1mlyU… 1/6 LESSON 6: NEW FORCES Introduction In this lesson we will look at opportunities and challenges to development. We will gain a different understanding and perspective of this topic based on experts’ views. The assigned readings will provide further explanation and you will come to understand how different their views on development are. New Forces in Development How do bad leaders, corruption, bad institutions and policies, and even rich nations exacerbate problems through high barriers to trade? What are possible solutions? Some solutions might include forgiving debt (but we should recognize that this is not the complete solution), as well as removing barriers to global integration, encouraging local regional trade, eliminating tariffs and quotas for highly indebted nations, and fostering economic freedom /reforms. The Global Policy Forum website summarizes many of these factors, and posts articles that focus on many important issues in development, as summarized in the image below. Please click on the link in the Reading and Resources folder to access the Global Policy Forum website section on Poverty and Development in Africa in preparation for our discussion this week. back to top Finish and record javascript:void(0) 1/7/2019 Realizeit ContentDelivery https://apus.realizeithome.com/RealizeitApp/ContentDelivery.aspx?Token=%2bsMFLZSXaJhmeXwREbE%2bGmTZYbwg0rvqrhY3cYTtFuJXpr1mlyU… 2/6 In making our assessment of economics and the international system, we must also recognize the impact of culture on economic performance. Culture includes the peculiarities of local history, social structure, psychology, religion, norms, and politics. While the apostles of globalization contend that market forces overwhelm everything else, others such as Paul Krugman and Jeffrey Sachs powerfully counter-argue that geography is itself a limit to globalization. Just think of what it means to be a landlocked country, and how much extra it costs to bring goods to ports for trade in an open, competitive system. Add to these complications of physical geography other factors such as climate, tropical location, local traditions, and the picture becomes complicated quickly. If we include the dynamics of culture and geography, we begin to understand why traditional macro-economic measures may have less of an impact than many previously assumed they would in the international system. What are the effects of economic globalization on poor countries? Since the backlash demonstrations against globalization at the ministerial meetings in Seattle and Genoa in the late 1990s, this question has entered public debate. Neither globalization nor protests, however, are new. Indeed, throughout the history of development economics, attention to the implications of international integration has been of prime in.

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