MILLENIUM DEVELOPMENT GOALS (MDGs) A global agenda for development Lecture 10

1. MILLENIUM DEVELOPMENT GOALS (MDGs)A global agenda for developmentLecture 10

2. MDG FRAMEWORK • COMMITS INTERNATIONAL COMMUNITY TO AN EXPANDED VISION OF DEVELOPMENT • PROMOTES HUMAN DEVELOPMENT AS KEY TO SOCIAL AND ECONOMIC PROGRESS • CREATES GLOBAL PARTNERSHIP FOR DEVELOPMENT • CONSOLIDATES TARGETS ESTABLISHED BY INTERNATIONAL CONFERENCES INTO EIGTH ESSENTIAL GOALS • FIRST SEVEN MUTUALLY REINFORCING, AIMED AT REDUCING POVERTY IN ALL FORMS • EIGTH GOAL – GLOBAL PARTNERSHIP FOR DEVELOPMENT – IS ABOUT MEANS TO ACHIEVE FIRST SEVEN – “A GRAND BARGAIN”

3. The Millennium Development Goals [i] For monitoring country poverty trends, indicators based on national poverty lines should be used, where available. 3

4. The Millennium Development Goals(cont.) 4

5. The Millennium Development Goals(cont.) 5

6. The Millennium Development Goals(cont.) 6

7. The Millennium Development Goals(cont.) [i] The actual proportion of people living in slums is measured by a proxy, represented by the urban population living in households with at least one of the four characteristics: (a) lack of access to improved water supply; (b) lack of access to improved sanitation; (c) overcrowding (3 or more persons per room); and (d) dwellings made of non-durable material. 7

8. The Millennium Development Goals(cont.) • Net ODA, total and to the least developed countries, as percentage of OECD/DAC donors’ gross national income • Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation) • Proportion of bilateral official development assistance of OECD/DAC donors that is untied • ODA received in landlocked developing countries as a proportion of their gross national incomes • ODA received in small island developing States as a proportion of their gross national incomes 8

9. The Millennium Development Goals(cont.) • Proportion of total developed country imports (by value and excluding arms) from developing countries and least developed countries, admitted free of duty • Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries • Agricultural support estimate for OECD countries as a percentage of their gross domestic product • Proportion of ODA provided to help build trade capacity) Debt sustainability • Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative) • Debt relief committed under HIPC and MDRI Initiatives • Debt service as a percentage of exports of goods and services 9

10. The Millennium Development Goals(cont.) 10

11. PROGRESS ACHIEVED • HALVING EXTREME POVERTY REMAINS (ED) WITHIN REACH LARGELY DUE TO EXTRAORDINARY SUCCESS IN MOST OF ASIA. BUT SOME IN SOUTH ASIA AND SUBSAHARIAN AFRICA REMAINS OFF TARGETS • GLOBAL ECONOMIC CRISIS COULD ENDANGER GAINS

12. PROGRESS ACHIEVED (CONT.) • OTHER SOCIAL GOALS – SOME PROMISE • PRIMARY SCHOOL ENROLMENT • 90% REACHED IN EIGTH OUT OF TEN REGION • GENDER PARITY 95% IN SCHOOL IN SIX OF TEN REGIONS • DEATH FROM MEASLES CUT ONE THIRD 2000-2006 • VACCINATION RATE 80% FOR CHILDREN IN DEVELOPING WORLD • 1.5 BILLION PEOPLE GAINED ACCESS TO CLEAN DRINKING WATER • ACCESS TO MEDICINES SPREADING • THANKS TO DEBT WRITE OFFS AND REDUCED DEBT SERVICE, SOCIAL SERVICES SPENDING UP

13. CONTINUING CHALLENGES • SOCIAL GOALS REMAIN IN JEOPARDY • MATERNAL MORTALITY STILL WAY HIGH (1/2 MILLION MOTHERS DIE EVERY YEAR AT CHILD BIRTH) • ONE QUARTER OF CHILDREN IN DEVELOPING COUNTRIES UNDERNOURISHED • HALF DEVELOPING WORLD POPULATION STILL LACK IMPROVED SANITATION • OVER ONE THIRD LIVE IN URBAN SLUMS AND ON AND ON

14. Theories of Economic Development - 1

15. Nurkse's Model of Vicious Circle of Poverty (VCP) and Economic Development

16. Definition and Explanation According to Prof. Nurkse: "It is the vicious circle of poverty (VCP) which is responsible for backwardness of UDCs". Vicious circle of poverty: "Implies a circular constellation of forces tending to act and react in such a way as to keep a country in the state of poverty".

17. In such state of affairs the process of capital formation remains obstructed and restricted. This VCP is presented as: • We start with low real income which results in a meager savings which in turn will check investment. Low level of investment would create deficiency of capital which in second round leads to low productivity. This again results in low income. Here, the circle perpetuates the low level of development. • From the supply side, there is low income, low savings, low investment, capital deficiency and low productivity. • On the demand side, low income, low demand for goods, limited home market and low investment.

19. Breaking VCP According to Nurkse, a break through on demand side can be brought about by dashing initiatives on the part of entrepreneurs. On the supply side the disguised unemployment ranging between 20% to 30% of total agri. labor force can be mobilized for financing capital formation. And the parents of such disguised unemployed will go on feeding them. It means that in Nurkse's model the hidden food surplus will finance the process of economic growth.

20. Shortcomings/Flaws of the Model • Entrepreneurs Responsible For Breakthrough: According to Nurkse to break the VCP entrepreneurs will play an important role. But he does not suggest the means for such funds. As in poor countries the savings are low, hence for the supply of funds the credit creation will have to be restored. But Nurkse rejects it. • Disguised Unemployment: According to Nurkse, the disguised unemployment will finance for growth. But the domestic resources are not sufficient, they can partially meet the requirements of growth. • Raw Material And Machines: Nurkse's theory fails to answer the question from where the machines and raw material will be provided to the labor which will be utilized for capital formation. Moreover, why the parents will continue providing food to their disguised unemployed offspring's once they get employment. 

21. Utilization Of Disguised is Not a New Idea: Nurkse says that the labor of Indo-Pak have much more leisure. But it is not true. The labor perform so many works like repair of houses, digging of canals, construction of small roads and cutting of forests etc. Therefore, it is not possible to withdraw these people from lands. • Misleading and Over Simplified: According to Bauer the idea of VCP is misleading and over-simplified because the developed countries never passed through such situation when they where UDCs.