Key Formulas & Frameworks
HDI = โ(Life Expectancy Index ร Education Index ร Income Index)
Ranges 0โ1; composite measure of health, education, and income
A = area between Lorenz curve and equality line. 0 = perfect equality, 1 = perfect inequality
Core Concepts
Latin American school (Prebisch, Frank, Dos Santos): underdevelopment is caused by exploitation of the periphery by the center. Colonialism created structural dependence through unequal exchange, not just "backwardness."
Mahbub ul Haq and Amartya Sen: development is about expanding people's capabilities and freedoms โ not just GDP. Capability approach: what people can do and be, not just what they earn.
Brundtland Commission (1987): "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." Three pillars: economic, social, environmental.
Chambers (1990s): local people should be active participants in their development, not passive beneficiaries. PRA (Participatory Rural Appraisal): mapping, ranking, diagramming with communities.
Muhammad Yunus (Grameen Bank): small loans to poor entrepreneurs without collateral. Empowers women, builds social capital. Criticized for commercialization and over-indebtedness in some contexts.
Core Definitions
Worked Examples
Country X: Life expectancy 70 (min 20, max 85) โ index 0.769. Education: mean 12 yrs, expected 14 โ 0.857. Income: GNI $10,000 โ 0.778.
HDI = โ(0.769 ร 0.857 ร 0.778) = โ(0.513) = 0.800 (very high development)
Prebisch-Singer thesis: terms of trade for commodity exporters decline over time. Coffee prices stagnate while manufactured goods become relatively more expensive. Solution: industrialization (ISI), diversification, or fair trade certification.
Grameen Bank lends $150 to a woman in Bangladesh to buy a sewing machine. She earns $5/day, repays over 12 months, saves $200 in 3 years, sends children to school, and employs 2 others. Social return compounds financial return.
Practice Problems
Answer: Economic viability, social equity, and environmental protection. All three must be present simultaneously for development to be truly sustainable.
Answer: (1) Traditional society, (2) Preconditions for take-off, (3) Take-off, (4) Drive to maturity, (5) Age of mass consumption. All nations pass through these stages sequentially.
Answer: GDP measures total economic output per person. HDI combines health, education, and income โ a broader measure of human wellbeing beyond economic production.
Answer: Ethnocentric (Western model as universal), ignores inequality (growth doesn't trickle down), environmental costs, cultural imperialism, and historical exploitation ignored.
Answer: Local communities actively identify problems, design solutions, and manage projects. More sustainable, culturally appropriate, and empowering than top-down approaches. PRA and PLA methods.