Allow me to walk you through it. In a nutshell, an interesting diagnosis and a few good new-ish ideas, followed by a pretty thin proposal for anything resembling a cure, while ducking most of the tricky questions. Recognize the pattern? First a good topic: vulnerability and resilience — development fuzzwords that really need examination, clarification etc, in the way the HDR is usually good at.
It is also a matter of how secure these achievements are and whether conditions are sufficient for sustained human development. An account of progress in human development is incomplete without exploring and assessing vulnerability. Some of its useful contributions:. It raises the possibility of some kind of multidimensional approach to inequality, pointing out that inequality in healthcare has fallen, whereas disparities in income has risen, while inequality in access to education has stayed roughly constant in recent years.
It points out that the rate of progress in human development has fallen significantly since see bar chart. It highlights the need to think about vulnerabilities in terms of life cycles. That begins even before birth — babies born to undernourished mothers are less likely to do well in school or later life. Unemployment in youth can derail people for a lifetime. What are you suggesting you do less of?
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Similarly it argues for a return to full employment as an economic policy objective. No discussion of how non state actors can influence states, of how to shift incentives, build coalitions with sympathetic fragments within the state, seize the political opportunities provided by disasters very important in this case. Great, here comes an edgy section on how change happens in real political systems.
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Countries at the top are the ones that consume the most fossil fuels hence jeopardize development for all. GNI is part of the calculation and directly linked to unsustainable energy consumption. Strange then that they are wringing their hands about vulnerability instead of pointing the finger.
These big annual broadsides seem quite antiquated. Some great points, as ever, Duncan. The 0. But then I am no doubt biased! This applies in particular to property rights 3 The importance of strong parliaments for growth has been discussed in a number of pivotal studies on institutions and growth North and Weingast, However, they do not guarantee economic success.
Acemoglu et al. While individual studies disagree to some extent with these statements, they give a good idea about the range of hypotheses that has been discussed regarding institutions and growth. Formal theoretical models tend to provide more deterministic explanations of the relation between institutions and growth than purely historical accounts.
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In endogenous growth models, good or bad policy may indeed permanently affect the growth rate of the economy itself. In the relatively poor areas, there were fewer incentives to plunder, and so to prevent the development of investment-friendly institutions. As a result, the decline or rise of those countries is rooted in a major - exogenous - institutional change linked to colonization. A number of authors have also linked the poor performance of many developing countries with governance issues: corruption, ethnic fragmentation, wars etc. Bloom et al. Easterly and Levine, , Mauro, So far the discussion has focused on institutions that affect growth but that also form a society in a much more general way e.
Taking a narrower focus it is also possible to see the institutional framework as integral part of the innovation process that fuels economic growth. Underlying the concept of intangible investment discussed in section 2. The institutional setup that leads to the success of both technological and non-technological innovation has been in the focus of the systems of innovation literature.
As Soete et al. Because the efficiency of this process observed at the macro level depends on the behaviour of individual actors, and the institutions that govern their interaction, coordination problems arise. It is mainly through comparative historical analysis that scholars began to adopt such a systemic view of innovation. Social interactions over time arise as culture, social movements and social capital. Individuals organize into groups according to historical, environmental, economic, religious and geographic values, which translate into cultural patterns.
Culture is influenced by development and growth - notions that have been widely discussed over the last three decades. The consumer culture is one example. On the one hand, a culture may be dependent on technology. On the other, it may also pursue social restitution of the environment through a vast range of "green" products. This, among many other forms of consumption, has an impact on the dynamics of economic and also on the cultural patterns of the various social groups.
These movements pursue social justice in all its dimensions by means of different channels of knowledge and territories. According to Leff: "[ Social movements are characterized by the integration of actors from the common class as well as scholars  This integration promotes the incorporation of academic knowledge to popular struggles. The result of these intersections is key to opening paths to a better model of development and growth, which may more effectively address issues of social justice by appealing to decision makers and managers of public policy.
The increase in social movements addressing environmental causes, among others, demonstrates that the empowerment of the masses through knowledge can bring to decision makers. Although it has had different interpretations, the element of strengthening social networks is common throughout.
According to the United Nations, social capital efficiently promotes the social development of societies in terms of the following dimensions, which are in constant interrelation: trust within a society, associative capacity, civic consciousness and ethical values. Social capital reflects collective action and its features, such as social movements or the identities of diverse communities.
As such, the adoption of the definition proposed by Bourdieu could be a potential trend that reflects the value of the social assets of a society, and suggests an active relationship between its dimensions.
Thus, culture, social movements and social capital contribute to the strengthening of social justice, as it is proportional to economic growth. Nevertheless, two substantial barriers hinder their effective contribution. Secondly, a lack of systematic planning. If systemic planning were implemented, individuals could participate as community leaders, but could also be direct beneficiaries of political, environmental, economic and cultural achievements and transformations.
If these barriers were to be addressed, comprehensive training focused on regional issues, but with a global perspective, would be required. In this section we consider various normative criteria that can be used to evaluate growth. These normative criteria have been introduced in Chapter Two.
Here we focus on the normative standards specifically as they apply to economic growth. The section is divided into two halves. First, Section 4. There is widespread recognition that analyses of economic growth that assess it simply by appealing to Gross Domestic Product GDP are unsatisfactory since GDP does not in itself matter.
It matters because, and to the extent that, it contributes to other goods Stiglitz, Sen, Fitoussi Once we have an account of what matters, the next question is what is the right rule concerning those benefits. Should economic growth be judged in terms of its contribution to maximizing the good, or ensuring equal amounts of it, or raising people above a threshold, or some other criterion?
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These issues are explored in Section 4. Not all of the goods to be discussed in Section 4.
Some, however, such as benefits like happiness, preference satisfaction or capabilities are, and thus a discussion of what rule should govern the distribution of those goods is required. Many economists, for example, place a great emphasis on revealed preferences. Is it valid to appeal to preference satisfaction to evaluate economic growth? One challenge is posed by Amartya Sen, who argues that preferences formed in unjust social circumstances might reflect this Sen , p.
The appeal of the preference satisfaction approach is lost if the account simply reflects unjust cirumstances set up by the powerful in ways that advantage them. A second concern arises from the phenomenon that J. This takes us far from actual desires to desires formed in rather idealized circumstances Griffin , chapter 1 especially pp. A second criterion that might be used to evaluate economic growth equates the good with happiness, where happiness is defined in terms of pleasant mental states. On happiness more generally see Haybron , Parfit , p.