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Why are some countries rich and others poor? An ensuing 21st-century paradox Europe Supported by Africa and America William Blake (1796) Jelte Harnmeijer Schishuney / ‘fishing place with a pole’ / Waldron Island 10 July MMX “For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath.” - Matthew XXV:29, King James Edition Outline 1. What are Poverty and Inequality? 2. What patterns exist in the distribution of 3. Why are some countries rich and others poor? 4. Neocolonial explanations for persistent 21st–century poverty 5. The link with Sustainability income? 1. What are Poverty and Inequality? Mohotlong, Lesotho Guandong, Chinese-occupied Tibet Maputo, Mozambique New York, USA Kaokoveld, Namibia U.S. of A. Nepal Money & Happiness What do people think makes them happy? Concern Personal economic Family Health Values and character Job or work situation International-world situation Social Political Maintain status quo or no fears Relative Importance Rank % mentioning Mean Range Mean Range 1.0 1-1 77 60-95 2.2 2-3 50 27-76 3.4 2-6 34 4-48 4.4 4-6 22 9-42 4.4 3-6 20 8-42 6.7 5-8 6 1-14 7.3 4-9 4 0-15 7.7 5-9 2 0-11 7.9 5-9 3 0-15 After: Cantril (1965) What do people think makes them happy? Concern % mentioning Family and home life 23 General contentment 19 Money and prices 18 Living standards, consumption 17 Social values 16 Personal beliefs, religion 11 Social relationships 10 Housing 10 Health 10 Work 9 Freedom of all kinds 7 Leisure, holidays, travel 6 Natural environment 4 Education and culture 4 Comparison with past and other countries4 Possession of consumer goods 3 Pressures of life 3 Worries, mental health 2 Negative statements 2 Altrusitic statements 2 Equality and justice 2 Other 3 Don't know 10 What is well-being? After: British Social Science Research Council (1975) In: Douthwaite (1999) Income & happiness Income & happiness Reported life satisfaction increases with income to US$10,000 – 15,000, then levels off at higher levels The case for greater equality Income inequality correlates with ... social capital (4) Inequality Income inequality correlates with ... infant mortality (4) Inequality Income inequality correlates with ... mental illness (4) Inequality Income inequality correlates with ... drug abuse (4) Inequality Income inequality correlates with ... high-school drop out rates (4) Inequality Income inequality correlates with ... incarceration rates (4) Inequality Income inequality correlates with ... obesity (4) Inequality Income inequality correlates with ... trust in fellow humans (4) Inequality Income inequality correlates with ... homicide rates (4) Inequality Income inequality correlates with ... teenage pregnancy rates (4) Inequality Income inequality correlates with ... child well-being (4) Inequality Income inequality correlates with ... national altruism (4) Inequality Income inequality correlates with ... recycling 2. What patterns exist in the distribution of income? What patterns exist in the distribution of income? (4) Inequality What patterns exist in the distribution of income? Compiled from 2003 World Bank country dataset What patterns exist in the distribution of income? Per-capita income for white and black Brazilians. Source: IBGE Census 2000. What patterns exist in the distribution of income? Where are the people? 100 1000 10000 Income (US$, PPP) 100000 (AFR=Africa; EAP=East Asia; ECE=East- and Central Europe; LAC=Latin America; OECD=Organisation for Economic Co-operation and Development; SAS=South Asia) Source: Dikhanov, Y. and Ward, M. (2003) What patterns exist in the distribution of income? Where is the dough? 100 Income (US$, PPP) 1000 10000 100000 (AFR=Africa; EAP=East Asia; ECE=East- and Central Europe; LAC=Latin America; OECD=Organisation for Economic Co-operation and Development; SAS=South Asia) Source: Dikhanov, Y. and Ward, M. (2003) 3. Why are some countries rich and others poor? “Why are some countries rich and others poor?” Continent Africa Asia Country Mozambique Namibia South Africa Bangladesh Cambodia India Myanmar (Burma) Nepal Month(s), Number of year(s) Interviews May-03 10 Jul-04 14 Jul-04 5 Jun-02 3 Jul-02 3 Jun 2002; 11 Jul-02 Jun-02 7 Jan 2002- Jun-02 Thailand Jul-02 Tibet (China) Feb-02 Turkey Mar-06 Sep-02 Europe Belgium Bulgaria Mar-06 Denmark Aug 2002; Aug-06 France Dec 2004; Jul-05 Germany Aug-06 Hungary Mar-06 Netherlands, the Aug-04 Norway Jul-06 Romania Mar-06 Sweden Jul-06 Continent Country North Canada America Greenland Mexico United States Oceania Australia 19 2 6 8 1 1 3 New Zealand Month(s), Number of year(s) Interviews Sep 2002Jun-06 Aug 2002; Aug-06 Jun-04 Sep 2002Jun-06 Aug 2003; Aug-Sep 2004; Aug-05 Aug-05 3 8 4 108 28 4 2 6 2 3 5 1 1 Summary of interviews conducted between February 2002 and June 2006. Categories of responses Categories of responses Categories of responses (i) Evolutionary explanations “… because some people are clever and others are stupid.” - Anonymous white South African of Boer ancestry, Hazyview, South Africa, July 2004. “The idea that some populations are more energetic than others […] perhaps deserves some consideration.” - J.P. Cole (1979), The Development Gap, page 111. Categories of responses Categories of responses (ii) Cultural/societal explanations “... the explanations offered for the contrasting records in growth have most often focused on institutions and highlighted the variation across societies in conditions relevant to growth such as the security of property rights, prevalence of corruption, structures of the financial sector, investment in public infrastructure and social capital, and the inclination to work hard or be entrepreneurial.” - Sokoloff & Engerman (2000), page 218. GDP/capita relative to US in selected New World economies, 1700-1997 Source: Sokoloff and Engermann (2000) Categories of responses (iii) Environmental explanations “These areas were settled because the climate was similar to that of Europe.” - Prof. Wolfram Latsch, personal communication, April 2004. “I think that tropical diseases are largely to blame.” - Prof. Roger Buick, North Pole, Australia, August 2004. Koppen classification climatic zones (iv) Historical explanations “European countries have been around for a long time. We are young. We just simply need time to catch up.” - Nxobo Masika, Johannesburg, South Africa, March 2004. Dates of recent independence of developing countries. Date 19-Jul-49 8-Aug-49 24-Dec-51 9-Nov-53 1-Jan-56 2-Mar-56 20-Mar-56 6-Mar-57 31-Aug-57 2-Oct-58 1-Jan-60 4-Apr-60 27-Apr-60 26-Jun-60 26-Jun-60 30-Jun-60 1-Jul-60 1-Aug-60 3-Aug-60 5-Aug-60 7-Aug-60 11-Aug-60 13-Aug-60 15-Aug-60 17-Aug-60 22-Sep-60 1-Oct-60 28-Nov-60 27-Apr-61 19-Jun-61 1-Jan-62 1-Jul-62 1-Jul-62 5-Jul-62 6-Aug-62 31-Aug-62 9-Oct-62 12-Dec-63 26-Apr-64 6-Jul-64 21-Sep-64 24-Oct-64 18-Feb-65 26-Jul-65 9-Aug-65 Country Laos Bhutan Libya Cambodia Sudan Morocco Tunisia Ghana Malaysia Guinea Cameroon Senegal Togo Madagascar Somalia Democratic Republic of the Congo Somalia Benin Niger Burkina Faso Côte d'Ivoire Chad Central African Republic Republic of the Congo Gabon Mali Nigeria Mauritania Sierra Leone Kuwait Samoa Burundi Rwanda Algeria Jamaica Trinidad and Tobago Uganda Kenya Tanzania Malawi Malta Zambia The Gambia Maldives Singapore Notes from France from India from Italy from France from Egypt and UK from France and Spain from France from UK from UK from France from French-administered UN trusteeship from France from French-administered UN trusteeship from France from the UK from Belgium from the Italian-administered UN trusteeship from France from France from France from France from France from France from France from France from France from UK from France from UK from UK from New Zealand-administered UN trusteeship from UN trusteeship under Belgian administration from Belgium-administered UN trusteeship from France from UK from UK from UK from UK from UK-administered UN trusteeship from UK from UK from UK from UK from UK from Malaysian Federation Date 26-May-66 30-Sep-66 4-Oct-66 30-Nov-66 30-Nov-67 31-Jan-68 12-Mar-68 6-Sep-68 12-Oct-68 4-Jun-70 10-Oct-70 15-Aug-71 3-Sep-71 2-Dec-71 16-Dec-71 10-Jul-73 24-Sep-73 7-Feb-74 19-Oct-74 25-Jun-75 5-Jul-75 6-Jul-75 12-Jul-75 16-Sep-75 11-Nov-75 25-Nov-75 27-Feb-76 29-Jun-76 27-Jun-77 7-Jul-78 1-Oct-78 3-Nov-78 22-Feb-79 12-Jul-79 27-Oct-79 18-Apr-80 30-Jul-80 21-Sep-81 1-Nov-81 19-Sep-83 1-Jan-84 21-Oct-86 3-Nov-86 21-Mar-90 24-May-93 1-Oct-94 Country Guyana Botswana Lesotho Barbados South Yemen Nauru Mauritius Swaziland Equatorial Guinea Tonga Fiji Bahrain Qatar United Arab Emirates Bangladesh The Bahamas Guinea-Bissau Grenada Niue Mozambique Cape Verde Comoros São Tomé and Principe Papua New Guinea Angola Suriname Western Sahara Seychelles Djibouti Solomon Islands Tuvalu Dominica Saint Lucia Kiribati Saint Vincent and the Grenadines Zimbabwe Vanuatu Belize Antigua and Barbuda Saint Kitts and Nevis Brunei Marshall Islands Federated States of Micronesia Namibia Eritrea Palau Notes from UK from UK from UK from UK from UK from Australia-/NZ-/UK-administered UN trusteeship from UK from UK from Spain from UK protectorate from UK from UK from UK from UK from Pakistan from UK declared independence from Portugal from UK in free association with New Zealand from Portugal from Portugal from France from Portugal from the Australian-administered UN trusteeship from Portugal from Netherlands from Spain from UK from France from UK from UK from UK from UK from UK from UK from UK from France and UK from UK from UK from UK from UK from the US-administered UN trusteeship from the US-administered UN trusteeship from South Africa from Ethiopia from the US-administered UN trusteeship Early dates of independence of South American countries Date 1 January 1804 25 May 1810 20 July 1810 16 September 1810 18 September 1810 14 May 1811 5 July 1811 28 July 1821 15 September 1821 15 September 1821 15 September 1821 15 September 1821 15 September 1821 28 November 1821 24 May 1822 7 September 1822 6 August 1825 25 August 1825 Country Haiti Argentina Colombia Mexico Chile Paraguay Venezuela Peru Costa Rica El Salvador Guatemala Honduras Nicaragua Panama Ecuador Brazil Bolivia Uruguay Notes from France from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Spain from Portugal from Spain from Brazil (v) Inept-leadership explanations “African leaders themselves have also failed the resource-rich continent. They continue to unscrupulously harp on historical injustices to cover up for their political and economic mess that are [sic] a sad manifestation of their suppression of democratic governance. Corrupt and inefficient management of economies, greed, power hunger, disrespect for human rights, cronyism, among other vices, have contributed to the underdevelopment of Africa today.” - Charles Mangongera, ‘Should We Continue to Blame Colonialism?’, Financial Gazette (Harare, Zimbabwe), September 19, 2002. “A district our size should have a much better soccer field, but the money was pocketed. There is corruption at all levels. It’s a topdown problem.” - Unemployed 27-yr-old Sidhinhyo, Morongulos, Mozambique, April 2004. Evolution of Corruption by Regions of the World, 1984-1999 Source: Lederman, D, Loayza, N. and Soares, R.R. (2001) “Who has the most to gain from corruption? (or the most to lose from ending it?)” (vi) Psychological explanations “There exists among us a strong feeling of inferiority [… which] comes from our awareness of past [white/European] oppression.” - Anonymous fisherman, northern Mozambique, April 2004. (vii) Neocolonial explanations “We were told, and accepted, that our poverty was caused by our poverty in the now famous theory of the ‘vicious circle of poverty’ and we went round in circles seeking ways and means of breaking that circle. Had we asked the [right] questions we would not have exposed our economies to the ruthless plunder brought about by ‘foreign investments’ which the exponents of the vicious circle theory urged us to do. For, it is clear, foreign investment is the cause, and not a solution, to our economic backwardness.” - Former Tanzanian minister A.M. Babu, In: Walter Rodney (1965), How Europe underdeveloped Africa, page 312. Economies are like fires ... 5. The link with Sustainability Neocolonial explanations for persistent 21st-century poverty Earth’s ecologically productive surface ≈ 21.42·109 hectares Per-capita surface required to support American lifestyle ≈ 9.57 hectares Global population on July 10th, 2010 ≈ 6 795 329 623 Acreage required to support worldwide American standards of living ≈ 3 Earths Fact: Present American standards of living for the entire global populace are a physical impossibility. (a) (b) Cartograms illustrating (a) country-level wood and paper imports (by volume) for the year 2000; (b) country-level net forest loss between 1990 and 2000. Flows of raw material and fuel the case for greater global equality: almost everyone stands to gain http://www.realfuture.org the tide is on Our side