Global economics

Global economics

Prof. Dr. Nelson H. S. Ferreira [email protected] orcid.org/0000-0003-2637-3211

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Unit 11 - Economic Development: Inequality and Sustainability

Poverty, inequality and economic growth in the world

Development policies

Sustainable development, Sustainable Development Goals 2030

The role of the World Bank Group, United Nations

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Poverty, inequality and economic growth in the world

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Source: OECD (2014), "Focus on Inequality and Growth - December 2014”. This document as well as figures and underlying data can be downloaded via www.oecd.org/social/inequality-and-poverty.htm

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Source: OECD (2014), "Focus on Inequality and Growth - December 2014”. This document as well as figures and underlying data can be downloaded via www.oecd.org/social/inequality-and-poverty.htm

u Have a look: https://www.youtube.com/watch?v=0XTBYMfZyrM

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Please, read:

https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-1-no-poverty.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-1-no-poverty.html#targets

Goal 1: No poverty

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Please, read:

https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-2-zero-hunger.html

u hhttps://www.undp.org/content/undp/en/home/sustainable -development-goals/goal-2-zero-hunger.html#targets

Goal 2: Zero hunger

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u Please, read: https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-3-good-health-and-well-being.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-3-good-health-and-well- being.html#targets

Goal 3: Good health and well-being

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-4-quality-education.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-4-quality-education.html#targets

Goal 4: Quality education

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-5-gender-equality.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-5-gender-equality.html#targets

Goal 5: Gender equality

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-6-clean-water-and-sanitation.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-6-clean-water-and- sanitation.html#targets

Goal 6: Clean water and sanitation

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-7-affordable-and-clean-energy.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-7-affordable-and-clean- energy.html#targets

Goal 7: Affordable and clean energy

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-8-decent-work-and-economic- growth.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-8-decent-work-and-economic- growth.html#targets

Goal 8: Decent work and economic growth

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-9-industry-innovation-and- infrastructure.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-9-industry-innovation-and- infrastructure.html#targets

Goal 9: Industrial innovation and infrastructure

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-10-reduced-inequalities.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-10-reduced- inequalities.html#targets

Goal 10: Reduced inequalities

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-11-sustainable-cities-and- communities.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-11-sustainable-cities-and- communities.html#targets

Goal 11: Sustainable cities and communities

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-12-responsible-consumption-and- production.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-12-responsible-consumption-and- production.html#targets

Goal 12: Responsible consumption and production

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-13-climate-action.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-13-climate-action.html#targets

Goal 13: Climate action

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-14-life-below-water.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-14-life-below-water.html#targets

Goal 14: Life below water

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-15-life-on-land.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-15-life-on-land.html#targets

Goal 15: Life on land

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-16-peace-justice-and-strong- institutions.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-16-peace-justice-and-strong- institutions.html

Goal 16: Peace, justice and strong institutions

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Please, read:

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-17-partnerships-for-the-goals.html

u https://www.undp.org/content/undp/en/home/sustainable- development-goals/goal-17-partnerships-for-the- goals.html#targets

Goal 17: Partnerships for the goals

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United Nations Development Programme Human Development Reports

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Please, have a look on: http://hdr.undp.org/en/content/latest-human- development-index-ranking

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Source: UNDP 2021; http://hdr.undp.org/

Cingano, F. (2014), “Trends in Income Inequality and Its Impact on Economic Growth", OECD SEM Working Paper No. 163, www.oecd.org/els/workingpapers.

OECD (2014), "Rising Inequality: Youth and Poor Fall Further Behind - Income Inequality Update - June 2014”.

OECD (2014), "Focus on Top Incomes and Taxation in OECD Countries: Was the Crisis a Game Changer?".

OECD (2011), Divided We Stand: Why Inequality Keeps Rising.

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Further reading

The World Bank is an international financial institution that provides loans to countries for capital programs.

It comprises two institutions:

1. International Bank for Reconstruction and Development (IBRD),

2. International Development Association (IDA).

The World Bank is a component of the World Bank Group, which is part of the United Nations system. In 2016 the funds available were $215 billion (around 1/3 of the IMF).

World Bank

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Official goal is the reduction of poverty.

However, according to its Articles of Agreement, all its decisions

must be guided by a commitment to the promotion of foreign

investment, international trade and to the facilitation of

capital investment.

World Bank

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u 1944-1974: few loans for reconstruction after WW II

u 1974-1980: focus developing world, loan targets expanded from infrastructure into social services and other sectors

u 1980-1989: structural adjustment policies designed to streamline the economies of developing nations (privatizations of public services through FDI).

u 1989-present: in response to harsh criticism from many groups, the bank began including environmental groups and NGOs in its loans to mitigate the past effects of its development policies that had prompted the criticism.

World Bank

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In 2010 voting powers at the World Bank were revised to increase the voice of developing countries, notably China. The countries with most voting power are (same top 5 as IMF):

United States (15.85%),

Japan (6.84%),

China (4.42%),

Germany (4.00%),

United Kingdom (3.75%),

France (3.75%),

India (2.91%), Russia (2.77%), Saudi Arabia (2.77%) and Italy (2.64%).

World Bank

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What Is The International Monetary Fund (IMF)? (3min 32’) https://www.youtube.com/watch?v=MhrC2_Hak08

What Does The World Bank Actually Do? (4min 46’) https://www.youtube.com/watch?v=F59fF-xu-bY

The World Bank (WB) & The International Monetary Fund (IMF) (3min 16’) https://www.youtube.com/watch?v=_xgxCf05Kmw

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World Bank

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World Bank

World Bank

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Which countries are not part of the World Bank?

189 countries are part of the WB out of current 195 UN recognized countries (2018)

6 countries left are:

u Andorra (yes UN)

u Cuba (yes UN)

u Liechtenstein(yes UN)

u Monaco(yes UN)

u North Korea(yes UN)

u Taiwan (UN sees it as part of China)

u Hong Kong (UN sees it as part of China)

u Palestine (UN observer)

u Vatican City (UN observer)

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