Exchange rate policies, patterns of specialization and economic development: theory and evidence in developing countries

The objectives of this paper are twofold. First, it intends to provide theoretical elements to analyze the relation between real exchange rates and economic development. Our main hypothesis is very much in line with the Dutch disease literature, and states that competitive currencies contribute to the existence and maintenance of the anufacturing sector in the economy. This, in turn, brings about higher growth rates in the long run, given the existence of increasing returns in the industrial sector, and its importance in generating echnological change and increasing productivity in the overall economy. The second objective of this paper is empirical. It intends to analyze examples of successful exchange rate policies, such as Chile and Indonesia in the eighties, as a benchmark for comparison with countries where currency overvaluation has taken place, such as Brazil. In the latter case, the local currency is being inflated by large capital inflows, due to high domestic interest rates and to a boom in demand and prices of commodities in the international markets. It will be argued that the industrial sector bears most of the burden when the currency appreciates, and that Brazil risks at deindustrialization if there are no changes in the exchange rate regime

Financial constraints on economic development: Theory and policy for developing countries

This article contains a theoretical and policy analysis of the financial constraints on economic development in developing countries. Following a Keynesian interpretation, it concludes that financial policies are needed to relieve these constraints, given the natural tendency of financial systems to operate in ways that are dysfunctional to economic development. It then proposes three lines of policy that take account of the special characteristics of developing countries: resource allocation policies targeted at segments of strategic importance for economic and financial development; policies to control financial and external fragility; and compensatory policies of a more interventionist cast, in particular directed credit programmes for both public- and private-sector lending to complement resource allocation policies, and countercyclical regulatory barriers so that fragility can be better controlled.

A Mixed-Method Study of Educator Knowledge and Practice Related to Student Socio-moral Development

The purpose of this study was to explore elementary educators’ knowledge of moral development, how this knowledge relates to their beliefs and sense of efficacy pertaining to character education practices and the socio-moral reasoning of their students. It was hypothesized that educators’ beliefs and practices related to character education would reflect their pedagogy rather than knowledge of moral development theory. It was further hypothesized that there would be differences in student socio-moral reasoning specifically the beliefs and desires that guide actions would differ based on grade and gender. This mixed-method study employing self-report questionnaires, open response vignettes, and semi-structured educator interviews yielded quantitative and qualitative data. Findings indicated socio-moral reasoning of students differed according to grade (age) and gender. Knowledge of moral development theory was found to vary among participants however some practices employed by educators did align with a social cognitive approach to moral development. Significant variables identified consistently among educator and student participants included, autonomy, social competence, sense of school community, and supportiveness. These variables, in conjunction with a sense of fairness, have been identified elsewhere as foundational to moral development (Nucci, 2009), and intrinsic motivation (Ryan & Deci, 2000) and are relevant to educators working to develop student socio-moral reasoning as an aspect of character.

Introduction: Working in Development Ethics – a tribute to Denis Goulet

Denis Goulet (1931-2006) was probably the main founder of work on ‘development ethics’ as a self-conscious field that treats the ethical and value questions posed by development theory, planning and practice. This overview of a selection of papers presented at a conference of the International Development Ethics Association (Uganda, 2006) surveys Goulet’s work and compares it with issues and approaches in the selected papers. Ideas raised by Goulet provide a framework for discussing the set of papers, which especially consider corruption, professional ethics and the rights to water and essential drugs. The papers in turn provide a basis for comparing Goulet’s ideas with actual directions of work on development ethics. Rather than as a separate sub-discipline, development ethics takes shape as an interdisciplinary meeting place, aided though by the profile and intellectual space that Goulet strikingly strove to build for it.

Post-Sustainable Development

The past 15 years have witnessed the rise of post-development theory as a means of understanding the development discourse since the 1940s. Post-development argues that intentional development (as distinct from immanent development - what people are doing anyway) is a construct of Western hegemony. Sustainable development, they argue, is no different and indeed is perhaps worse, given that most of the global environmental degradation has been driven by consumerism and industrialization in the West. Critics of post-development counter by stating that it only provides destruction by tearing apart what is currently practiced in 'development' without providing an alternative. When post-developmentalists do offer an alternative it typically amouints to little more than a call for more grassroots involvement in development and disengagement from a Western agenda. Post-sustainable development analysis and counter-analysis has received remarkably little attention within the sustainable development literature, yet this paper argues that it can make a positive contributrion by calling for an analysis of discourse rather than a hiding of power differentials and an assumption that consensus must exist within a community. A case is made for a post-sustainable development that acknowledges that diversity will exist and consensus may not be achievable, but at the same time participation can help with learning. The role of the expert within sustainable development is also discussed. Copyright (C) 2008 John Wiley & Sons, Ltd and ERP Environment.

Post-(sustainable)-development?

This paper critically reviews the application of a post-development analysis to sustainable development by employing a defined target for post-development analysis – the Environmental Kuznets Curve (EKC). Data from the 2005 Environmental Sustainability Index (ESI) for 146 countries are used to generate statistically significant EKC models, and the approach is deconstructed by employing post-development theory. While an ESI derived EKC is an easy target for post-development critique, there are foundations upon which both rest, and are not easily dismissed. Neither is the typical post-development 'alternative' of encouraging 'endogenous discourse' and grassroots movements at odds with sustainable development. As a result, this paper argues that sustainable development theory already incorporates much of the critique and alternatives raised by post-developmentalists. Indeed, what is more disconcerting is that sustainable development readily encompasses such apparently divergent ideas represented by the ESI, EKC and post-developmental critique and solutions.

The private sector, poverty reduction and international development

The private sector, after shifting fortunes in development theory and practice over the years, is now widely recognised as the key to economic growth, which itself is indispensable for poverty reduction. The Development Studies Association (DSA) Annual Conference in 2006 brought together academics, private sector actors, NGOs and policy makers to share insights and experiences on how this vital contribution to growth, development and poverty reduction can be realised. This paper summarises the main themes and discussions of the conference and introduces the papers selected for inclusion in this conference issue.

Things Fall Apart: Dictatorships, Development, and Democracy in Africa

Recent events in Africa provide evidence of the failure of dictatorships to meet the needs of citizens and serve to debunk a number of development theory assumptions: that democratization is culturally determined, that democratization will follow economic development, and that dictatorships tend to produce durable, stable development. Therefore, the attempt to achieve development without democratization is risky and potentially very costly. We argue that dictatorship in Africa serves a function akin to Myrdal's backwash effects, thwarting economic progress in a cumulative and circular way, and that democratization must become a necessary criterion of engagement with African countries.

Territorial approaches for rural development in Latin America : a case study in Chile

Una reciente transición en el campo del desarrollo rural es el movimiento desde un enfoque reducido del sector agrícola hasta uno que adopta una visión territorial más amplia. Este pasaje intenta interpretar las interacciones entre los mundos urbano y rural de una manera más comprensiva. Esta perspectiva teórica relativamente nueva interesa particularmente a los académicos y los políticos en los países latinoamericanos donde, a partir de la mitad de los años noventa, el concepto de una nueva ruralidad se ha visto como la fuente de un nuevo enfoque para el desarrollo rural. Por lo tanto, el propósito teórico de esta investigación es explicitar los indicadores analíticos del nuevo enfoque de la ruralidad en América Latina e identificar las diferencias entre los acercamientos sectoriales y territoriales, considerando los aspectos socio-económicos, institucionales y medioambientales involucrados. La transición del enfoque sectorial a uno territorial significa también, desde un punto de vista operativo, el reconocimiento de la existencia de áreas homogéneas a partir de las cuales pueden proponerse estrategias de desarrollo rural. El propósito operativo de esta investigación consiste en proponer una metodología para identificar estas áreas con una aplicación a la Región del Maule en Chile. La conclusión subraya algunos elementos críticos que se deben considerar en la definición de estrategias del desarrollo rural territorial.

Regional competitiveness, economic growth and stages of development

This paper positions the concept of regional competitiveness within theories concerning regional economic growth and stages of economic development. It examines the sources of regional competitiveness encompassing an analysis based on the particular stage of economic development that the nations within which regions are situated have reached. As a means to achieve this, the paper undertakes an empirical analysis of data stemming from the World Competitiveness Index of Regions, and identifies regional competitiveness as a dual concept that explains relative differences in rates of economic development across regions, as well as an understanding of the future economic growth trajectories of regions at a similar stage of economic development. As with endogenous growth and development theory, the notion of regional competitiveness presented here places knowledge, innovation and entrepreneurship at the forefront of conceptualisations of regional economic differentiation.

A magyar átalakulás és fejlődés néhány általánosítható elméleti tanulsága = Some generalizable theoretical lessons of the Hungarian transformation and development

A világgazdasági válság óta eltelt nyolc évtizedben Magyarországon számos rendszerváltozás ment végbe a gazdaságban és a politikában. Sokak szerint a szabadpiactól a szabadpiacig vezető kör bezárult, és ismét rendszerválság előtt állunk. Míg a jövő természetesen bizonytalanságokkal terhes, és így értelemszerűen nem kiszámítható, a múlt egyértelmű tanulsága az, hogy a közéletet végig formáló felzárkózási törekvés egészében sikertelennek bizonyult. Ennek alapja elemzésünk központi rejtélye egy régi fejlődéselméleti feladvány: miért van az, hogy Argentínához vagy újabban Olaszországhoz és Portugáliához hasonlóan a jó politika rossz eredményekkel jár(t), és fordítva? Miért szakadt el végletesen és történetileg is a gazdasági és a politikai ésszerűség egymástól? __________________ Hungary has undergone several changes of economic and political system in the eighty years since the Great Depression. According to many, the circle from market economy to market economy has closed and we face another systemic crisis. Although the future is naturally full of uncertainties and is not by its very nature predictable, the clear lesson from the past is that the effort to catch up, which shaped public life throughout, has been unsuccessful on the whole. The basis for this and the central riddle in this analysis is an old puzzle in development theory: how is it that good policies had bad results and vice versa, as was the case in Argentina, and recently in Italy and Portugal? Why did economic and political rationality part company for good, even in historical terms?