Globalisation and development

National Law School of India University, Bangalore.

“GLOBALISATION”


Concept of Development and Globalisation

KUMAR SALVA RAGHUVANSHILL.M (BUSINESS LAWS)-730


Outline of discussion

Basic concepts. Theories. Dimensions of development. Role of Institutions. MDG to SDG. Conclusion.


Part-IMeaning in general:

• Improvement in country’s economic and social conditions.

• The capacity of a state to increase its human resource with the aim of achieving higher outcome of production for the satisfaction of the basic needs of majority of its citizens and empowering them to make demands on the government.

• In economic sense, the developmental State is one that acts authoritatively, credibly and legitimately in promoting industrialisation, economic growth and expansion of human capabilities.

• New dimensions of globalization have increased both opportunities and risks for the nations to achieve development for their citizens.


Dudley Seers theory of Development:

The questions to ask about a country’s development are three: 1. What has been happening to poverty? 2. What has been happening to unemployment

? 3. What has been happening to inequality?

If all three of these have declined from high levels, then beyond doubt this has been a period of development for the country concerned.´


Theory of Development:The Modernization Theory:

This perspective saw development as an evolutionary process in which countries, specifically those from the third world, progressed through a known series of stages to be modern.

Members of the third world were seen to be traditional and are characterized by their emotional, superstitious, and fatalistic approach to the world. There approach therefore requires an approach in mind in order to ensure a change in attitude.

One explanation given for the underdevelopment of the third world is their approach to and use of time. Therefore for these societies to achieve the level of economic development that the first world has achieved there is the need for them to follow the path that has seen the western advanced countries achieve high economic output.

The modern societies are seen to have their own values but they are however not enslaved by them, their kinship ties are weakened, and finally they are not fatalistic but forward looking.


Theory of Development:The Dependency Theory:

This school of thought argued that the global economic structure was an exploitative system which generated and maintained the development of underdevelopment in nations of the periphery.

This exploitation is clearly seen in accounts of merchant capitalism, colonialism, and neo-colonialism.

Andre Gunder Frank also explained the dependency theory in another way which differs from that offered by classical Marxism. To him the growth of capitalism and industry led to the underdevelopment of the countries whose economic surplus was exploited by the West.


2 Dimensions of Development:1. Economic: ▪ Some scholars have seen development in terms of economic

progress especially the two decades right after the independence of many third world countries.

▪ They believe industrialization and productivity as prerequisites for development. The reasoning was that the poorest peoples living in rural areas were a potential and badly needed labour force.

▪ One proponent for this dimension of development is Dzorbo who defined economic development as the quantitative expansion of goods and services, or wealth of society which is often measured by the Gross National Product (GNP) and the Gross Domestic Product (GDP).

▪ Even the UN believed that economic progress was synonymous with development in general. As a result, between 1960 and 1970 was declared The Decade of Development.


2 Dimensions of Development:2. Social/Humanistic:

Criticism against Economic dimension. Gandhi said “the realization of the human potential´

is the way toward development.” It looks at development through improvements in the

lifestyles of people, health, education, empowerment, mortality rate and a host of other indicators.

concern of this dimension is to bring about visible and significant change in peoples circumstances.

According to HDR, 1996 published by UNDP, human development is the end, economic growth is a means.


Part-II: Role of Institutions

Role of UNDP:1. UNDP works in nearly 170 countries and territories,

helping to achieve the eradication of poverty, and the reduction of inequalities and exclusion. It help countries to develop policies, leadership skills, partnering abilities, institutional capabilities and build resilience in order to sustain development results.

2. UNDP is working to strengthen new frameworks for development, disaster risk reduction and climate change.

3. UNDP focuses on helping countries build and share solutions in three main areas:▪ Sustainable development▪ Democratic governance and peacebuilding▪ Climate and disaster resilience

N a t i o n a l L a w S c h o o l o f I n d i a U n i v e r s i t y , B a n g a l o r e .

http://www.undp.org/content/undp/en/home/ourwork/sustainable-development.html

http://www.undp.org/content/undp/en/home/ourwork/democratic-governance-and-peacebuilding.html

http://www.undp.org/content/undp/en/home/ourwork/climate-and-disaster-resilience/


UNDP’s HDR, 1996:

“Economic gains have benefitted greatly a few countries, at the expense of many….The global gap between the rich and poor is widening everyday….The world has more economically polarized, both between countries and within countries….If present trend continue, economic disparities between industrial and developing nations will move from inequitable to inhuman”.

Resolutions of UNGA: The right to development was proclaimed in the

Declaration to Right to Development, adopted in 1986 by UNGA in its resolution 41/128.

Also recognized and re-affirmed in: African Charter on Human and people’s rights Arab Charter on Human Rights 1992 Rio Declaration on Environment and Development, 1993 Vienna Declaration and Programme of Action, Millennium Declaration, 2002 Monterrey Consensus, 2005 World summit outcome document 2007 Declaration on the Rights of indigenous peoples.

N a t i o n a l L a w S c h o o l o f I n d i a U n i v e r s i t y , B a n g a l o r e .


Analysis of ‘resolution 41/128’ 1. Article 1: The right to development is an inalienable

human right by virtue of which every human person and all peoples are entitled to participate in, contribute to, and enjoy economic, social, cultural and political development, in which all human rights and fundamental freedoms can be fully realized.

2. Article 2: The human person is the central subject of development and should be the active participant and beneficiary of the right to development.▪ States have the right and the duty to formulate appropriate national

development policies that aim at the constant improvement of the well-being of the entire population and of all individual

3. Article 3: States have the primary responsibility for the creation of national and international conditions favourable to the realization of the right to development.

4. Article 4: States have the duty to take steps, individually and collectively, to formulate international development policies with a view to facilitating the full realization of the right to development.


DEVELOPMENT


Washington consensus: Williamson originally coined the phrase in

1990 “to refer to the lowest common denominator of policy advice being addressed by the Washington-based institutions to Latin American countries as of 1989.”

Set of 10 economic policy prescriptions considered to constitute the “standard” reform package prompted for crisis wracked developing countries by Washington D.C based institutions such as IMF, World Bank and US Treasury Dept.


10 Principle of consensus:

Fiscal discipline A redirection of public expenditure priorities toward fields

offering both high economic returns and the potential to improve income distribution, such as primary health care, primary education, and infrastructure

Tax reform (to lower marginal rates and broaden the tax base)

Interest rate liberalization A competitive exchange rate Trade liberalization Liberalization of inflows of foreign direct investment Privatization Deregulation (to abolish barriers to entry and exit) Secure property rights


Williamson defends against Neo-Liberals: ”I of course never intended my term

to imply policies like capital account liberalization...monetarism, supply-side economics, or a minimal state (getting the state out of welfare provision and income redistribution), which I think of as the quintessentially neoliberal ideas”.


Three Issues:

1. Not an ideology, need also to avoid crisis.

2. Incomplete or Neglected: need to fully address things continuously first and second generation.

3. Too narrow: need to concentrate more on poverty reduction and distribution & less on just higher GDP.


Consensus 2.0???

Dani Rodrik argues that there noe exists an “Augmented” Washington consensus, which in addition to WC-1, adds:

1. Corporate governance2. Anti-corruption3. Flexible labor markets4. WTO agreements5. Financial codes and standards6. “Prudent” capital-account opening7. Non-intermediate exchange rate regimes8. Independent central banks/inflation targeting9. Social safety nets10. Targeted poverty reduction


Millennium Development Goals: 2000-2015 At the Millennium Summit in September 2000 adopted UN

Millennium Declaration, towards new global partnership to reduce extreme poverty and setting out a series of time-bound targets, with a deadline of 2015.

The MDGs are the world's time-bound and quantified targets for addressing extreme poverty, hunger, disease, lack of adequate shelter, and exclusion-while promoting gender equality, education, and environmental sustainability.

Sub-Saharan Africa is the epicentre of crisis, with continuing food insecurity, a rise of extreme poverty, stunningly high child and maternal mortality, and large numbers of people living in slums, and a widespread shortfall for most of the MDGs.

Asia is the region with the fastest progress, but even there hundreds of millions of people remain in extreme poverty, and even fast-growing countries fail to achieve some of the non-income Goals.

Other regions have mixed records, notably Latin America, the transition economies, and the Middle East and North Africa, often with slow or no progress on some of the Goals and persistent inequalities undermining progress on others.


MDG:

1. To eradicate extreme poverty and hunger:2. To achieve universal primary education3. To promote gender equality and empower

women4. To reduce child mortality5. To improve maternal health.6. To combat HIV/AIDS, malaria, and other

diseases.7. To ensure environmental sustainability8. To develop a global partnership for

development


Key MDG achievements: MDG 1: The number of people living on less than $1.25 a day has been reduced

from 1.9 billion in 1990 to 836 million in 2015, although the target of halving the proportion of people suffering from hunger was narrowly missed.

MDG 2: Primary school enrolment figures have shown an impressive rise, but the goal of achieving universal primary education has just been missed, with the net enrolment rate increasing from 83% in 2000 to 91% this year.

MDG 3: About two-thirds of developing countries have achieved gender parity in primary education.

MDG 4: The child mortality rate has reduced by more than half over the past 25 years – falling from 90 to 43 deaths per 1,000 live births – but it has failed to meet the MDG target of a drop of two-thirds.

MDG 5: The global maternal mortality ratio has fallen by nearly half – short of the two-thirds reduction the MDGs aimed for.

MDG 6: The target of halting and beginning to reverse the spread of HIV/Aids by 2015 has not been met, although the number of new HIV infections fell by around 40% between 2000 and 2013.

MDG 7: Some 2.6 billion people have gained access to improved drinking water since 1990, so the target of halving the proportion of people without access to improved sources of water was achieved in 2010 – five years ahead of schedule. However, 663 million people across the world still do not have access to improved drinking water.

MDG 8: Between 2000 and 2014, overseas development assistance from rich nations to developing countries increased by 66% in real terms, and in 2013 reached the record figure of $134.8bn (£80.3bn).


Goal-1: Eradicate Poverty & Hunger: India’s report, 2015. Target 1: Halve, between 1990 and 2015, the proportion of

people whose income is less than one dollar a day.1. The all India Poverty Head Count Ratio (PHCR) estimate

was 47.8% in 1990. In order to meet the target the PHCR level has to be 23.9% by 2015. In 2011-12, the PHCR at all India level is 21.9%, which shows that, India has already achieved the target well ahead of time.

2. During 2004-05 to 2011-12, the Poverty Gap Ratio reduced both in rural and urban areas. While the rural PGR declined from 9.64 in 2004-05 to 5.05 in 2011-12 in the urban areas it declined from 6.08 to 2.70 during the same period. A nearly 50% decline in PGR both in rural and urban areas during 2004-05 to 2011-12 reflects that the conditions of poor have improved both in urban and rural areas.

3. At all India level, the share of the poorest quintile in the total consumption is lower in the urban areas than in rural areas. During 1993-94 to 2011-12, in urban areas, the indicator (URP methodology) showed a decline from 8.0% in 1993-94 to 6.97% in 2009-10, and then showed a slight improvement 7.1% in 2011-12. In rural areas, the share of poorest quintile steadily declined from 9.6% in 1993-94 to 9.1% in 2011-12.


Goal-1: Eradicate Poverty & Hunger: India’s report, 2015. Target 2: Halve, between 1990 and 2015, the

proportion of people who suffer from hunger.It is estimated that in 1990, the proportion of underweight children below 3 years as 52%. In order to meet the target, the proportion of under-weight children should decrease to 26% by 2015. The National Family Health Survey shows that, the proportion of under-weight children below 3 year declined from 43% in 1998-99 to 40% in 2005-06. At this rate of decline the proportion of underweight children below 3 years is expected to reduce to 33% by 2015, which indicates India is falling short of the target.


Goal 5: Improve Maternal Health: India’s report, 2015. Target 6: Reduce by three quarters between 1990 and

2015, the Maternal Morality Ratio. 1. In 1990, the estimated MMR was 437 per 1,00,000 live births.

In order to meet the MDG target, the MMR should be reduced to 109 per 1,00,000 live births by 2015. As per the latest estimates, the MMR status at all India level is at 167 in 2011-13. As per the historical trend, MMR is likely to reach the level of 140 maternal deaths by 2015,

2. The Coverage Evaluation Survey conducted by Government of India and UNICEF in 2009 shows that 76.2% percentage of births were attended by skilled health personnel in 2009. The latest results of Sample Registration System (SRS) 2013, reveal that, the percentage of live births attended by skilled health personnel (Government hospitals, Private hospital, qualified professional) is 87.1% in 2013, which indicates a better status.


Goal 6: Combat HIV/AIDS, Malaria and other Diseases: India’s report, 2015. TARGET 7: Have halted by 2015 and begun to reverse the

spread of HIV/AIDS.1. The prevalence of HIV among Pregnant women aged 15-24

years is showing a declining trend from 0.89 % in 2005 to 0.32% in 2012-13.

2. The Annual Parasite Incidence (API) rate – Malaria has consistently come down from 2.12 per thousand in 2001 to 0.72 per thousand in 2013, but slightly increased to 0.88 in 2014 (P) but confirmed deaths due to malaria in 2013 was 440 and in 2014 (P), 578 malaria deaths have been registered.

3. In India, Tuberculosis prevalence per lakh population has reduced from 465 in year 1990 to 211 in 2013. TB Incidence per lakh population has reduced from 216 in year 1990 to 171 in 2013. Tuberculosis mortality per lakh population has reduced from 38 in year 1990 to 19 in 2013.


WIPO Development Agenda, 2007. Member States of the World Intellectual Property

Organization (WIPO) adopted the decision that formally established the “Development Agenda of WIPO”.

The aim was placing development at the heart of the Organization’s work.

It brought set of 45 Development Agenda recommendations and the establishment of a Committee on Development and Intellectual Property (CDIP).

The 45 recommendations are grouped into six clusters reflecting the main areas of focus of the Development Agenda.

The adoption of the Development Agenda was an important milestone for the Organization and its effective implementation has become a key priority.


Cluster of 45 DA: Cluster A: Technical Assistance and Capacity

Building Cluster B: Norm-setting, flexibilities, public

policy and public domain Cluster C: Technology Transfer, Information and

Communication Technologies (ICT) and Access to Knowledge

Cluster D: Assessment, Evaluation and Impact Studies

Cluster E: Institutional Matters including Mandate and Governance

Cluster F: Other Issues


The WHO Development Agenda: WHO operates in an increasingly complex and rapidly

changing landscape. The boundaries of public health action have become blurred, extending into other sectors that influence health opportunities and outcomes.

WHO responds to these challenges using a six-point agenda. The six points address two health objectives, two strategic needs, and two operational approaches.

The overall performance of WHO will be measured by the impact of its work on women’s health and health in Africa.

6 Points agenda are:1. Promoting development2. Fostering health security3. Strengthening health systems4. Harnessing research, information and evidence5. Enhancing partnerships6. Improving performance


WHO DA-1:Promoting development:

During the past decade, health has achieved unprecedented prominence as a key driver of socioeconomic progress, and more resources than ever are being invested in health.

Yet poverty continues to contribute to poor health, and poor health anchors large populations in poverty. Health development is directed by the ethical principle of equity: Access to life-saving or health-promoting interventions should not be denied for unfair reasons, including those with economic or social roots (Compulsory licensing of pharmaceutical drugs)

Commitment to this principle ensures that WHO activities aimed at health development give priority to health outcomes in poor, disadvantaged or vulnerable groups.

Attainment of the health-related Millennium Development Goals, preventing and treating chronic diseases and addressing the neglected tropical diseases are the cornerstones of the health and development agenda.


DEVIL-OPMENT


Sustainable Development Goals: 2015-2030.

On September 25th 2015, countries adopted a set of goals to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda.

Each goal has specific targets to be achieved over the next 15 years.

These 17 Goals build on the successes of the Millennium Development Goals, while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities. The goals are interconnected – often the key to success on one will involve tackling issues more commonly associated with another.


SDG:1. No poverty .2. Zero hunger.3. Good health and wel l being.4. Qual i ty educat ion.5. Gender equal i ty.6. Clean water and sanitat ion.7. Affordable and c lean energy.8. Decent work and economic growth.9. Industry, innovat ion and

infrastructure.10. Reduced inequal i t ies .11. Sustainable c i t ies and communit ies.12. Responsible consumption and

product ion.13. Cl imate act ion.14. Li fe below water.15. Li fe on land.16. Peace, just ice and strong inst i tut ions.17. Partnersh ips for the goals .


Goal-1, SDG: Facts and Figures. 836 million people still live in extreme poverty About one in five persons in developing regions

lives on less than $1.25 per day The overwhelming majority of people living on

less than $1.25 a day belong to two regions: Southern Asia and sub-Saharan Africa

High poverty rates are often found in small, fragile and conflict-affected countries

One in four children under age five in the world has inadequate height for his or her age

Every day in 2014, 42,000 people had to abandon their homes to seek protection due to conflict


Goal-3, SDG: Facts and Figures.Child Health: 17,000 fewer children die each day than in 1990, but more than

six million children still die before their fifth birthday each year. Children born into poverty are almost twice as likely to die before

the age of five as those from wealthier families.Maternal Health: Maternal mortality ratio – the proportion of mothers that do not

survive childbirth compared to those who do – in developing regions is still 14 times higher than in the developed regions.

Only half of women in developing regions receive the recommended amount of health care they need

HIV/AIDS, malaria and other diseases: At the end of 2013, there were an estimated 35 million people

living with HIV At the end of 2013, 240 000 children were newly infected with HIV Over 6.2 million malaria deaths have been averted between 2000

and 2015, primarily of children under five years of age in sub-Saharan Africa.

Between 2000 and 2013, tuberculosis prevention, diagnosis and treatment interventions saved an estimated 37 million lives.


CONCLUSION