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Shaping the Development of Developing Countries Focused On JIŘÍ NOVOSÁK ROBERT STOJANOV JIŘÍ NVOSÁK JIŘÍ ROBERT STOJANOV ROBERT SHAPING THE DEVELOPMENT OF DEVELOPING COUNTRIES FOCUSED ON CHINA AND INDIA CHINA AND INDIA AND INDIA CHINA NTRIES FOCUSED ON FOCUSED NTRIES OPMENT OPMENT ISBN 978-80-7368-443-3 SHAPING THE DEVEL THE SHAPING COU OF DEVELOPING 1 SHAPING THE DEVELOPMENT OF DEVELOPING COUNTRIES FOCUSED ON CHINA AND INDIA JIŘÍ NOVOSÁK, ROBERT STOJANOV OSTRAVA 2008 ISBN 978-80-7368-443-3 2 3 SHAPING THE DEVELOPMENT OF DEVELOPING COUNTRIES FOCUSED ON CHINA AND INDIA JIŘÍ NOVOSÁK, ROBERT STOJANOV This book represents an output of the project CZ.04.1.03/3.2.15.3/0439 titled Innovation and Internationalization of Selected Study Programmes at the University of Ostrava which was supported by the European Social Fund and the state budged of the Czech Republic. 4 SHAPING THE DEVELOPMENT OF DEVELOPING COUNTRIES. FOCUSED ON CHINA AND INDIA. JIŘÍ NOVOSÁK, ROBERT STOJANOV PUBLISHED BY: © 2008 University of Ostrava Department of Human Geography and Regional Development First edition © 2008 Jiří Novosák, Robert Stojanov Reviewed by: Assoc. Prof. Alois Hynek Martin Kovář, M.Sc. Printed by OPTYS, spol. s r. o. ISBN: 978-80-7368-443-3 5 TABLE OF CONTENTS 1. Development – Concepts and Theories ...............................................................9 2. Development Strategies .....................................................................................48 3. Causes of Migration – Focused on Development ..............................................85 4. International Migration and Development: Analysis of Selected Linkages and Consequences in Bangladesh, India and China ........................................108 5. Development Models of China and India ........................................................135 6. Environmental Limits of Economic Growth in India and China .....................161 6 7 PREFACE Sometimes, one may ask “Why was I born just in the Czech Republic?” If I had been born only several hundred kilometres westwards I would have been a citizen of one of the most developed countries in the world with all benefi ts implying from this. However, the question may be extended: “What do the people think who were born in a country on the lowest level of development?” Each day, it is possible to see the sad destinies of hungry children, of the people living under the pressure of an autocratic regime, or of the homeless people waiting for some form of humanitarian aid. Perhaps everybody thinks whether there is a chance to help these people. How to spark the development of these countries? The prime aim of this book is to sketch out the opportunities how to shape the development of developing countries. These opportunities are rather well-known and they include such various topics as a broader incorporation of developing countries into the international trade structures, a broader attraction of foreign direct investments, a sound macroeconomic policy, a larger infl ow of offi cial development assistance, and various migration-development aspects. With all these facets of development, the book deals with, pointing not only at fundamental terms, but also at pros and cons of these development strategies and especially at broader economic, social, political, and environmental relations. The book is structured in a rather straightforward way. The fi rst chapter deals with the basic concepts and indicators of development. Furthermore, spatial differences in development are introduced and explained. Finally, a brief review of fundamental development theories is a part of the fi rst chapter. The second chapter supplements the fi rst chapter by an assessment of the most relevant development strategies – international trade, foreign direct investments, offi cial development assistance, and macroeconomic policies. The third chapter of the book analyzes causes of international migration from the theoretical point of view and with respect to the relationship between causes of migration and development. The fourth chapter of the book adds the most important developmental aspects of migration, notably remittances and skilled migration and moreover it documents selected fi ndings from the previous parts using international migration fl ows in Bangladesh, India and China as examples. The last two chapters are focused on economic, social, political, and environmental aspects of development. China and India are used as two case studies in this way. Note that the choice of these countries was a bit naturally given by their increasing economic, political and environmental importance in the contemporary world. This book represents an output of the project CZ.04.1.03/3.2.15.3/0439 titled Innovation and Internationalization of Selected Study Programmes at the University of Ostrava which was supported by the European Social Fund. This support is warmly acknowledged by the authors. Because of this background, the book was primarily written for all participants in the project. However, the authors hope that the book will be of a much broader interest. Now, it remains only to wish you a pleasant reading. Authors 8 9 CHAPTER ONE DEVELOPMENT – CONCEPTS AND THEORIES After the Second World War, the concept of development became to be perceived as a desirable way for a better future of mankind. Originally, the development efforts were focused on industrialized countries in war-damaged Europe, with the Marshall Plan as the best-known policy of this kind. After the European recovery, the attention was shifted to the problems of economically less advanced countries, development of which was perceived as benefi cial also for their more developed counterparts. However, no consensus was found what development is or should be and how to measure it (MARTINUSSEN 1997). Since this time, several approaches were proposed not only how to defi ne and measure development but also how to shape the development of developing countries. Based on the successes of Japan or Asian Tigers on one hand and the failures of many African countries on the other one, a number of economists, politicians, and other development scientists tried to extract a correct mix of ingredients which were necessary to spark the development trajectories. Nevertheless, the most important conclusion from these efforts is that there is no easy remedy for the development illnesses of developing countries. The introductory two chapters of this book summarize the most important concepts, indicators, theories (Chapter 1) and strategies (Chapter 2) with respect to the development of developing countries. Note that concluding remarks are given jointly for the both chapters. Development Concepts In the early years of development studies, economic growth was regarded as the main feature of development. The fundamental idea of the development concept based on economic growth claims that economic growth will result not only in an increasing personal income but also in a higher quality of life. However, the correlation between economic growth and improvements in living standards of a large part of population appears to be inconclusive and thus the application of economic growth as a proxy of development unjustifi able (KAMBHAMPATI 2004). This fact is caused especially by an uneven distribution of gains from economic growth when already rich people are becoming even richer while poor even poorer. The problems of the defi nition based on economic growth led to an extended defi nition of development. The goals to eradicate poverty and to reduce social inequalities were added. However, also the enlarged concept of development appears to be not suffi cient 10 Chapter One to consider all nuances of the term. There is a widespread idea now that to speak about development it is necessary to improve a whole set of factors which infl uence quality of life. Therefore, human beings and not income are positioned in the centre of the term development. On this basis, a broad concept of development emerged represented especially by the Basic-Needs Approach , the Human Development concept and the Millennium Development Goals (see Box 1-1). Box 1-1: The Basic-Needs Approach, Human Development, and the Millennium Development Goals The main idea of the Basic-Needs Approach claims that the development efforts should be oriented especially towards the poor part of population which is not capable to grasp benefi ts from economic growth. Development is understood as the satisfaction of basic needs, ideally of the whole population. The basic needs include food, education, health, sanitation, water supply and housing. The Human Development concept is defi ned as a process of enlarging people’s choices, which include the opportunity to live a long and healthy life, to be educated, to have an access to the resources necessary for a decent standard of living, and furthermore political freedom, human rights, gender equality, and environmental sustainability. The Millennium Development Goals (the MDGs hereafter) represent a set of ambitious goals formulated at the United Nations Millennium Summit in 2000. With the state-of-the-art in 1990 as the benchmark, the MDGs aspire by the year 20151: • To eradicate the extreme poverty and hunger, with the specifi c targets to halve the proportion of people living on less than a dollar a day and suffering from hunger, measured by the proportion of children under age fi ve who are underweight The number of people living on less than a dollar a day decreased substantially from 1.25 billion (31.6 % share of the population in developing countries) in 1990 to 980 million (19.2
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