Nafziger Economic Development (4th ed)

836Index

induced innovation model, 252 industrialization, 58, 65, 100, 134, 185–186

advanced industrial society, 47 agriculture and, 99–100 China and, 723

consumer goods and, 71 developing countries and, 98 employment and, 314 high-tech, 156

import substitution and, 613 industrial concentration ratios, 727

Industrial Revolution, 128, 186, 371, 401, 405

infant industries, 597 informal sector and, 328 investments in, 70

manufacturing employment, 313 migration and. See migration poverty and, 60

reforms and, 723 rural areas and, 262 small-scale, 328 stages in, 128 takeoff and, 140 turning point in, 140

urbanization and, 311, 317

See also specific topics, countries infant mortality, 34, 42, 194

inflation, 60, 64, 380, 465, 478, 481, 637 accelerated, 478

benefits of, 486 cost–push inflation, 481 costs of, 486

demand–pull inflation, 480, 741 distortions from, 712

dynamics of, 488 exchange rates and, 641 growth and, 488

income distribution and, 487 inflationary expectations, 483 interest rates and, 553 international balance and, 487 monetary inflation, 484 political inflation, 484

prices and, 471 ratchet inflation, 482 since 1970, 478 structural, 482

taxes and, 487 informal sector, 118

formal sectors and, 318 industry and, 328 labor force and, 322

manufacturing and, 102 information

cost of, 368 distorted, 709 sparsity of, 165

technical knowledge, 368

information and communications technology (ICT), 2, 6, 7, 77, 370, 604, 748

computers and, 370 electronics and, 370 expenditures and, 375 GDP and, 2 globalization and, 373 India and, 8

investment and, 361, 371 liberalization and, 7 productivity and, 369–371

infrastructure, 61, 133, 135 innovations, 156

agriculture and, 54 defined, 393 entrepreneurship and, 392 invention and, 368 research and, 368

sharing of, 54 stages in, 395

input–output analysis, 346, 367, 694, 695, 697, 703

insecticides, 281

Institute for International Economics (IIE), 181, 183, 569

Institutional Revolutionary Party (PRI), 116 institutional wage, 140

institutions, 108 basic services, 111

democratization, 717 developing countries, 95 institutional failure, 106, 116 lack of, 714

provision of basic services, 111 rule of law and, 113–114

See also specific institutions, topics integrated approach, 45

integrated pest management (IPT), 289 intellectural property rights (IPRs), 265, 632,

748

Inter-American Development Bank, 578 interest rates, 80, 321–322, 380

capital and, 323 inflation rate and, 553 negative real, 553, 712

intermediate goods, 29 intermediate technology, 46, 378 internal balances, 680, 686 internal instability, 601

International Bank for Reconstruction and Development. See World Bank

International Clearing Union (ICU), 571 International Convention on Climate Change

(ICCC), 447

International Development Association (IDA), 210, 520, 542, 564, 581, 748–749

International Financial Architecture, 571 International Financial Institution Advisory

Commission, 572

International Food Policy Research Institute (IFPRI), 289, 522

International Fund for Agricultural Development, 34, 230

International Fund for Agricultural Development (IFAD), 222

International Labor Organization (ILO), 165, 186 International Monetary Fund (IMF), 149, 152,

542, 571, 678, 749

adjustment programs and, 568, 681 Baker plan, 578

Brandt report, 679 conditionality, 678 debt restructuring, 576 ECA and, 683 financial crises, 573 liberalization and, 544 policy cartel and, 10 Stiglitz on, 570

World Bank, 679

international trade, 104, 503, 591, 730. See specific topics, countries

Internet, 3, 372 intraindustry trade, 599–600 invention, 368

inverted U-shaped curve, 95 investment, 110, 501, 505 accelerator effect, 737

capital formation and, 361 closed economy and, 154 criteria for, 378, 455

factor price distortions, 386 fiscal incentives, 473 foreign investment and, 508 indivisibilities and, 385

information technology and, 361 investment rates and, 130 uncertainty and, 383

invisible hand doctrine, 124, 749 IPR. See intellectual property rights IPT. See integrated pest management Ireland, 76

iron, 321

iron law of wages, 125–126, 749 irrational exuberance, 569 irreversibility, 424

irrigation, 255

ISEW. See index of sustainable economic welfare Islamic banking, 495

Japan, 45, 131, 567

borderless economy, 621, 737 capitalism in, 61

cartels and, 63

economic miracle, 63, 94 foreign aid, 515, 620 foreign trade policy, 62 golden age, 80

growth of, 74–76, 81

infrastructure in, 61 Iron Triangle, 110 Japanese model, 61

keiretsu system, 61–62, 567 Korea and, 66

labor productivity, 141 land reform, 247

late nineteenth century, 91 Lewis-Fei-Ranis model, 141 Meiji era, 61–62

Pakistan and, 593 rapid growth of, 221 Taiwan and, 66 World War I and, 141 yen, 65

zaibatsu, 61–62

Kalahari region, 145 keiretsu system, 61–62, 567 Keynes, J. M., 320, 571

Keynesian theory, 320, 570, 749 Khrushchev, Nikita, 70–71 kleptocracy, 749

knowledge as capital, 334, 364, 368 Kohli, A., 113

Korea

chaebol system, 67 competitiveness of, 65 educational investments, 66 government investment, 64 interest rates, 65

Japan and, 66 literacy index, 66 pollution and, 67

private conglomerates, 64 SOEs in, 64

takeoff and, 137 Korean–Taiwanese model, 63, 91–92 Kremer, M., 137

Kremer O-ring theory, 158 Krueger proposal, 573 Krugman, P., 76, 94 kulaks, 749

Kuznets curve, 187, 218, 749 Kuznets, Simon, 57, 186–187, 334

Kyoto Protocol, 287, 437, 443, 446, 448

labor force agricultural, 97, 262

appropriate technology and, 328 brain drain, 348

dependency ratios, 294 education and, 330, 345 elasticities in, 141

factor price distortions, 321–322 formal sector, 322

globalization and, 606 growth of, 292, 311, 313 informal sector, 322

838Index

labor force (cont.) job rationing, 330

labor aristocracy, 322

labor participation rates, 71 labor standards, 43 learning curve, 366

manual work, 351 marginal workers, 315

maximum labor absorption, 378 middle class, 23–27, 187 monopsonistic markets, 350 population and, 294

productivity and, 314–315, 334, 366 skill level, 242, 605, 606

supply curve, 139, 141, 351 training of, 345 underutilized, 311

unemployment. See unemployment unskilled, 107

urbanization and, 311 wages, 321–322, 328 women in, 312

labor-intensive methods, 321–322, 326, 378 laissez-faire policies, 64–65, 124, 286, 597 land

capital and, 239

Latin America abd, 239–242 natural resources, 414 poverty and, 246

property rights, 249 reform, 246, 247 sharecropping, 248 tenure system, 246 usufruct rights, 249

Laspeyres index, 26, 27 latifundios system, 146, 239–242 Latin America, 176, 239–242, 482 LDCs. See less developed countries

least developed countries (LLDCs), 23, 24, 749–750

Leninism, 69, 123–124, 142 Lenski study, 403

Leontief paradox, 594

less developed countries (LDCs), defined, 123, 529, 750

Lewis–Fei–Ranis model, 123–124, 138, 141, 158, 161, 750

Lewis model, 103, 138, 140, 158, 221, 317 Lewis, W. A., 15–16, 138

liberalization, 59, 151, 689, 717 adjustment and, 700

defined, 591, 750 democracy and, 149 exports, 601 financial, 324, 489

foreign exchange and, 601 growth and, 591–592 IMF and, 544

individual firms and, 491

information technology and, 7 international trade, 152, 591, 592 neoclassical theory and, 151–152 policy and, 733

programs for, 80 Soviet Union and, 717 World Bank and, 544

liberation, 44

LIBOR. See London Interbank Offered Rate

life expectancy, 34, 177–178, 244, 278–279, 280, 296, 324

lifeboat ethic, 458 limited wants theory, 351

limits-to-growth literature, 156, 286, 448 Lincoln, Abraham, 334

linkages, economic, 136 Lipset hypothesis, 114 Lipton, Michael, 243 literacy, 106, 195, 338

education and. See education literacy index, 36, 48 unemployment and, 329 UPE and, 106

Little–Mirrlees model, 381, 387 LLDCs. See least developed countries Lome´ conventions, 625

London Club, 565

London Interbank Offered Rate (LIBOR), 559–560

Lorenz curve, 179

low income countries (LICs), 239, 518, 519, 523, 531

luxury consumption, 603

Maastricht Treaty, 638

MAC. See marginal abatement cost macroeconomic cycles, 524 Maddison, A., 54

Mahalanobis model, 69–70 malaria, 281, 353 Malaysia, 67, 199, 621 male dominance, 191

Malthusian theory, 124, 271, 284, 305, 448 management responsibility system, 723 Mankiw debate, 632

manufacturing sector, 102, 129

Mao Zedong, 44, 69, 71–72, 127, 254, 719 Marcuse, H., 47

marginal damage function, 429 marginal individuals, 403 marginal product model, 349 marginal units, 315

marginal workers, 315 market, 718

market socialism, 71, 663

Marxism, 22, 44, 123, 127, 157, 243 dependency theory and, 158 historical materialism and, 126 neo-Marxist theory, 2, 60, 142

reserve army of the unemployed, 127 Rostow on, 130

unemployment and, 127 mass consumption, 129 materialism, 126

matriculas consulares cards, 526 maturity, drive to, 129 Mauritius, 85, 344

meat, 238

media, 112, 344, 370, 374 medieval period, 54 Meltzer Commission, 572 Mexico, 38, 116, 506, 698 microeconomic studies, 137 microenterprises, 203 middle class, 23–27, 187 Middle East, 176

middle-income countries, 35, 189

MIGA. See Multilateral Investment Guarantee Agency

migration, 206, 308 Harris–Todaro model, 317 Lewis model, 317 macroeconomic cycles and, 524 neoclassical theory and, 155 policies to reduce, 325 remittances and, 523 rural–urban, 243, 316, 331 village reclassification, 316 world rates, 523

military-industrial complex, 716 military spending, 29, 114

Mill, J. S., 112, 124

millennium development goals (MDGs), 16, 237, 622

mineral exports, 116 mixed economies, 405 mobile phones, 374 mobility, 404

modernization, 61, 96, 130, 186, 278–279, 301 monetary policy, 465, 466, 638

monopolies, 171, 368, 385, 599 communism and, 705 enterprise and, 405, 709 India and, 491

MNCs and. See multinational corporations natural, 385–386

profits of, 602 public, 385–386 state and, 705

monopsonistic markets, 66, 350 monotonicity axiom, 179 Montreal Protocol, 287, 447 monuments, 132

Moore’s law, 373 moral hazard, 494

mortality rates, 34, 42, 194, 277, 712 decline in, 278

DRF and, 581

external, 565

modernization and, 278–279 natural resources and, 582, 741 restructuring, 576

service of, 552, 563 Mosley, P., 151

motivation, economic, 350, 399 multi-party systems, 114 multilateral aid, 446, 520, 542

Multilateral Investment Guarantee Agency (MIGA), 531

multinational corporations (MNCs), 147–148, 527, 535, 699

benefits of, 533, 537 costs of, 538 farming and, 228

foreign investment from, 534 globalization and, 228

LDC interests and, 539 technology transfer, 539 Mundell model, 486, 488

Murphy–Shleifer–Vishny model, 134 Myint, H., 132

Myrdal, G., 351

Mystery of Capital (de Soto), 117

NAFTA. See North American Free Trade Association

nation-states, 59, 91

national income model, 452, 504 natural disasters, 214

natural resources, 423 as capital, 450–451

common property, 423 deterioration of, 452 environment and, 413, 414 importance of, 413

land and, 414 pollution and, 426

resource curse, 419–420 negative externalities, 299 Nehru, J., 69–70, 143 neo-Marxism, 2, 60, 142

neoclassical theory, 13, 124, 149, 153, 155, 156–157, 158

critique of, 151 defined, 751

liberalization and, 151–152 Washington consensus, 151

neopatrimonial rulers, 109 net investment, 129

net material product (NMP), 704 net national product (NNP), 129

net primary productivity (NPP), 451, 751–752 net transfers, 564

new growth theory, 155, 156, 161, 171

newly industrializing countries (NICs), 24, 25, 63, 65, 67, 600, 752

Newtonian theory, 124, 128, 130

840Index

NGOs. See nongovernmental organizations Nigeria, 19, 50, 147–148, 196, 197, 224 nineteenth century, 57

Nkrumah, K., 263

NMP. See net material product NNP. See net national product

nomenklatura system, 706, 708, 717, 752 non-cash income, 167

nonconcessional loans, 540

nongovernmental organizations (NGOs), 110, 287, 752

nonrenewable resources, 308–309 nontariff barriers (NTBs), 624 Nordhaus–Boyer model, 445 normal distribution, 182

North Africa, 176

North American family, 4

North American Free Trade Agreement (NAFTA), 645

North, D. C., 108, 152 North Korea, 109

North–South interdependence, 503 Novartis/ADM, 228

NPP. See net primary productivity NTBs. See nontariff barriers nuclear families, 97

numeracy, 338 Nurkse, R., 133

nutrition, 165, 205, 290, 353 Nyerere, J. K., 23

O-ring theory, 137, 752

ODA. See official development assistance OECD. See Organization of Petroleum Exporting

Countries

official development assistance (ODA), 510, 511, 516

oil, 64, 116, 196, 198, 414, 415, 417, 449, 503 oligopolies, 385, 534

on-the-job training, 347 one-party systems, 114

OPEC. See Organization of Petroleum Exporting Countries

Organization for Economic and Cooperation and Development (OECD), 149, 295–296, 374–376, 381, 416, 510, 522, 541, 543–544, 574, 752

Organization of Petroleum Exporting Countries (OPEC), 23, 416, 627, 646, 752

outsourcing, 6, 7, 10, 632 overflow theory, 349, 350 ozone, 438

Paasche index, 26, 27 Pakistan, 85, 199, 593

PAMSCAD. See Program of Action to Mitigate the Social Costs of Adjustment

pandemics, 2

Papua New Guinea, 703

parasitic diseases, 360 parastatal enterprises, 752 Paris Club, 565, 752 partimonialism, 116 Patel, S. J., 79

patent protection, 633 patrimonialism, 19, 113 patron–client systems, 204 Pearson, L., 88

peasant society, 97, 226, 245, 266, 301. See also farming; poverty

Penn model, 31, 33 perestroika, 71, 752 perfect competition, 124 pesticides, 281, 288, 289 petroleum. See oil pharmaceuticals, 633 Philippines, 85, 154

physical quality of life index (PQLI), 34, 752 piquetero movement, 309–316

planning centralized, 661

duration of plans, 691 Fel’dman model, 665 goals of, 690

India and, 659 instruments of, 690 planning models, 692 Soviet model and, 658

Poland, 84, 718, 732 polarization, 503 policy cartel, 10, 586 policymaking state, 655 polio vaccine, 353

political systems, 95, 96, 107, 263. See specific topics, countries

pollution, 67, 420, 426, 438 polygyny, 222

population

age structure, 292, 305 congestion and, 6, 291 births. See birth rate deaths. See mortality rates development and, 271, 284

environmental problems and, 582 food and, 284, 285

iron law of wages, 125 labor force and, 294

mortality rates. See mortality rates policies and, 325

population momentum, 284 population programs, 205 productivity and, 105

rapid growth of, 105 stationary, 284 wages and, 125 world, 271, 273

portfolio investment, 527

Porto Alegre conferences, 10, 753

Index

potato-is-a-potato rule, 31 poverty, 3–4, 11–12, 165, 245

absolute, 171, 179, 194, 195, 737 adjustment programs and, 218 agricultural research and, 254 antipoverty programs, 206 capitalism and, 60

children and, 196 China and, 729 concepts of, 176

cultural relativity of, 171 data on, 166–167 defined, 171, 172, 178 education, 339 education and, 168–169 elasticity of, 17–18, 184

environmental stress and, 420 exchange rate and, 257

Gini index, 19

growth and, 60, 165, 184, 185, 202, 212 headcount approach, 178

income and. See income inequality India and, 6, 173 industrialization and, 60 integrated war on, 208

land distribution and, 246 measures of, 176, 217–218 monotonicity axiom, 179 multidimensional, 167

$1/day poverty, 194, 195, 220 overstating, 16

policies to reduce, 202, 543 poverty index, 179 poverty-weighted index, 40 PRGF and, 543

regional rates, 174, 175 rich/poor gap, 3, 20–21

rural areas, 220, 222, 239, 245 seasonal, 245

target groups, 206–207 technology and, 252 $2/day poverty, 195 vicious circle theory, 131 war, 212

weak transfer axiom, 179 women and, 191

power loom, 125–126

power sources, 143–144, 252 PPP adjustments, 33

PQLI. See physical quality of life index Prebisch–Singer thesis, 608, 609, 753 predatory regimes, 109

preferential trade arrangement, 642

PRI. See Institutional Revolutionary Party prices

comparative advantage and, 593 decontrol, 150

elasticities, 133 exchange rate and, 257

841

farms and, 629 GNP deflator, 25–26 inflation and, 471 Laspeyres index, 26 Paasche index, 26 policies and, 257 price signals, 704 scarcity and, 710 stability of, 471 steel and, 593 textiles and, 593

trigger mechanisms, 625 unemployment and, 471

primary-product export, 104, 611, 626

Principles of Political Economy and Taxation

(Ricardo), 124

privatization, 150, 151, 677, 697, 707–708 benefit–cost calculations, 383 nomenklatura, 707–708

pitfalls of, 698

private sector and, 692, 699, 700 shadow prices and, 387

product cycle model, 595 product differentiation, 599 productivity

agricultural, 224 differences in, 334

ICT and, 369–370, 371 importance of, 361 labor and, 334, 366 population, 105

production function, 153, 308 productivity paradox, 370 technical progress and, 362

professional training, 345

Program of Action to Mitigate the Social Costs of Adjustment (PAMSCAD), 210

progressive income tax structure, 469 progressive tax, 473

proletariat, 127 promarket arguments, 661

property rights, 117, 121, 150–151 farm and, 249–250

IPR and, 632

land distribution and, 249 long-term, 409

secure, 249

protective tariffs, 65, 136, 244, 598–599 Protestant ethic, 58–59, 93–94, 402, 403 protesters, 309–316

public enterprises, 553, 690, 692, 695, 699 public expenditures, 150, 469, 700

public goods, 424, 434, 690 Public Law 480 (U.S.), 521 public monopolies, 386 public works projects, 262

purchasing power, 2, 30, 33, 753

QWERTY keyboard, 603

842Index

ratchet inflation, 482 rationalism, 47, 59 real appreciation, 636

real economic growth, 16

real exchange rate (RER), 258–259, 636 recession, 465

reforms, 677, 707–708 adjustment and, 714 agricultural, 720 capital market and, 689 China and, 723, 727 exchange rate and, 689 industrial, 723

shock therapy, 703–704 SOEs and, 728

Soviet Union and, 704 trade and, 689

regional integration, 642

regional trade organizations (RTOs), 644, 645 Reichel model, 37

reinvestment, 386 relative deprivation, 213 religion, 47, 303 remittances, 508, 523 renewable resources, 414

rent seeking, 113, 115, 121, 122 replacement rate, 284

RER. See real exchange rate rescheduling debt, 585 R&D programs, 369, 604

basic research, 368 development and, 368 growth and, 157

innovation and, 368. See innovation investment in, 157

technology and, 157, 206. See also technology resource allocation theory, 360, 472

returns to scale, 597 revolutions, political, 60

Ricardian model, 124–125, 157, 182 rights, 233

rigid factor proportions, 315 Rio summit, 443, 445

risk, 382, 559 Rodrik, D., 64 Roemer model, 418 rolling plan, 691 Romer, P., 89

Rosenstein-Rodan, P. N., 133

Rostow model, 68, 123, 128, 130, 157, 161, 756 RTOs. See regional trade organization

rules of origin, 643 ruling elites, 213 rural areas, 78

agriculture. See agriculture development, 223 electrification, 85

farms. See farming formal sectors, 318

income in, 190, 239, 245 industry and, 262 informal sector, 318

migration from, 243, 316, 325, 331 peasants. See peasant society population, 220. See population

poverty and, 220, 222, 239, 245. See poverty Rural Credit Program, 198, 223

rural cultivators, 97 rural society, 222

rural–urban differentials, 224 schooling, 242

services in, 259 unemployment and, 325 vulnerability of, 245 women and, 192

See also specific countries, topics

Sachs proposal, 573 Sachs–Warner approach, 591

SADC. See Southern African Development Community

Salam, A., 349 sales tax, 472

San-speaking peoples, 145 sanitation, 42

SARS. See severe acute respiratory syndrome Saudi Arabia, 85

savings, 131, 150, 295, 386, 694 adjusted net, 737

closed economy and, 154, 158, 195 Lewis on, 138–139

neoclassical theory and, 158 personal saving, 132

rates of, 102 sustainability and, 453

scale, returns to, 597 scarcity, and prices, 710 scarcity of resources, 43 schooling. See education Schultz, T. W., 154, 367 Schumacher, E. F., 46, 378

Schumpeter models, 13, 161, 393, 394 scientific method, 47

SDA. See Social Dimensions of Adjustment Projects

SDRs. See special drawing rights second world, 22

sectoral adjustment loans (SECALs), 568 Seers, D., 11, 16

seigniorage, 490 self-assessment, 399 self-reliance, 45, 323 self-sustained growth, 140 self-targeting, 208

Sen, A. K., 45, 176, 233 services sector, 100, 715

severe acute respiratory syndrome (SARS), 72 shadow prices, 387

shantytowns, 117 sharecropping, 248 Shleifer, Andrei, 134 shock therapy, 702, 703 shocks, external, 64 Sierra Leone, 204, 212 Silicon Valley, 7–8, 156 Simon, J., 286 Singapore, 63

skill levels, 242, 605 slavery, 44

small markets, 132

Small-Scale Enterprise Credit Program, 203 Smith, A., 124, 149, 597

social benefit–cost analysis, 379, 383, 387 social capital, 112, 121

social democracy, 22

Social Dimensions of Adjustment Projects (SDA), 210

social goods, 467–468 social origins, 404

social profitability, 136, 366 social security, 329

socialism, 68, 127, 143, 192, 260 Afro-Asia and, 657

China and, 720

market socialism, 71, 663 motivation socialization, 350 ODA countries, 510

Poland and, 718 second world and, 22

socialist economies, 22, 405, 407 socialist governments, 22, 127, 704 worker-managed, 664

socio-cultural dualism, 351 socioeconomic development, 301 SOEs. See state-owned enterprises soft budget constraint, 657, 712–713 soil degradation, 421, 433

Solow model, 153, 154, 155, 370 South Africa, 37, 192

South Commission, 23, 44

South Korea, 63, 183, 247

Southern African Development Community (SADC), 533

Soviet Investment Model, 70 Soviet Union/Russia, 22, 144, 700

China and, 70–71, 260, 704 collapse of trade, 716 communism and, 716 controlling plan, 658–659 decollectivized, 733 decontrol and, 708 development model, 68, 70 Fel’dman–Stalin plan, 69 GDP, real, 702

Gorbachev and, 71 inflation in, 703 Khrushchev and, 70–71

liberalization and, 717 nomenklatura and, 717 perestroika and, 71 planning and, 658 reform, 704

Russian revolution, 144 Soviet collapse, 71

Stalinist model, 68, 69, 755 transitions to the market, 732 Yeltsin and, 71

special drawing rights (SDRs), 633–634, 755 specialization, 128, 603, 632

spinning jenny, 125–126 sports, 368

squatters, 117 Sri Lanka, 201

stabilization, 677, 683

Stages of Economic Growth (Rostow), 128 stagflation, 465

stagnation, 124

Stalinist model, 68, 69, 755 standard deviation, 182, 739 staple theory, 626 Starbucks, 31

state-owned enterprises (SOEs), 742, 756 China and, 720, 728

definition of, 691 importance of, 691

public enterprises and, 691, 699 reform and, 728

stationary economy, 394 statistics, 11–12

steam engine, 125–126 steel, 321

sterilization, 298 Stiglitz, J., 112, 152, 366

Stiglitz–Sachs school, 569 Stolper–Samuelson theorem, 604 structural adjustment, 543, 568, 737 structural economists, 483, 682, 756

sub-Saharan Africa, 171, 195, 204, 211, 686 AIDS and, 280, 355

average food production, 229 effectiveness of aid, 516

food deficits, 230 food output, 266–267 income growth, 355 India and, 230–231

institutional failures, 231 leading debtors from, 566 net transfers, 564

rural poor, 223 urban areas, 356

subjective well-being, 46 subsidies, 206

subsistence farming, 226–227, 266 subsistence levels, 284–285 substitution, 315, 612 suburbanization, 129

844Index

Summers, R., 72 superior–subordinate system, 204 supply side theory, 131

surplus, 60, 125

sustainability, 102, 413, 453, 455

Swedish International Development Agency, 685

Taiwan, 63 interest rates, 65

investment and, 64 Japan and, 66 land reform, 247 pollution and, 67 takeoff and, 137

takeoff, 128, 130, 137, 140, 756 Tanzania, 260

targeting, 207, 208, 691 tariffs, 244, 472, 596, 597, 614 taxes, 713

administrative feasibility, 474 cascade tax, 475

collection of, 475 direct taxes, 469 elastic, 469

goals of, 468 incentives, 244

income and, 469, 472, 477 indirect, 469

inflation and, 487 political constraints, 476 ratios, 467

revenue and, 468 sales tax, 472

value-added tax, 472, 475 Taylor, C., 109

technology, 2, 347, 367 appropriate technology, 737 borrowed, 65, 372, 598

capital investment and, 102, 239 creativity and, 400

Cultural Revolution, 327 endogenous, 156, 751–752 entrepreneurs and, 407 food and, 287

growth and, 171, 362, 364, 751–752 ICT and, 361

inadequate, 102 innovation and, 252 Malthus on, 284–285 natural resources and, 309 poverty and, 252

price weights for, 27 productivity and, 362 progress and, 715 R&D and, 157, 206 skills and, 347

technical knowledge, 309, 367 unsuitability of, 321

See also specific topics, technologies

telecommunications, 2, 7, 372, 376 teleconferencing, 344

terms of trade, 198, 608, 610, 611 TFP. See total factor productivity Thailand, 67, 85–86

theory, defined, 123

Theory of Social Change (Hagen), 400 third world, defined, 22, 756

time lapse, in estimates, 699

total factor productivity (TFP), 71, 361, 370, 757 township and village enterprises (TVEs), 720,

722, 757 Toye, J., 151

tractorization, of farming, 252 trade balances, 415, 689, 738 comparative advantage, 592

deficits and, 415, 508, 554, 619, 738 environment and, 607

exchange rate and, 689 growth and, 591 intra-industry, 599

trade barriers, 25 trade creation, 644 trade diversion, 644 trade in services, 630

trade-related intellectual property (TRIPS), 633 traditional societies, 102, 130

tragedy of the commons, 423, 427, 458 training, 204, 345. See also education transaction costs, 425

transfers, 206

transformation, in agriculture, 220 transitional economies, 23, 407 transparency, 112

Transparency International, 122 transport costs, 256

trigger price mechanisms, 625 Trinidad terms, 584

TRIPs. See trade-related intellectual property tropical climates, 433, 446. See specific countries Trotsky, L., 659

Turnkey projects, 540

TVEs. See township and village enterprises

ujamaa socialism, 260

UN Conference on Trade and Development (UNCTAD), 22, 516–517, 626–627, 686, 757

UN Development Program (UNDP), 35, 39, 52, 96, 149, 168

unbalanced growth, 132–133, 135, 136 uncertainty, 382, 383

unconditional convergence, 91 underdeveloped countries, 145 underutilized labor, 311 unemployment, 205

causes of, 321 disguised, 314, 331 education and, 324, 329

labor force and, 292, 314, 321, 325

policies for reducing, 325 prices and, 471

rural–urban migration and, 325 underemployment, 310

western approaches to, 319 UNICEF, 194

United Kingdom, 55 United States

Bush administration, 299 capital inflows to, 546 China and, 25

Declaration of Independence, 43

dollar, 64, 65, 635, 645, 646. See also specific topics

dollar. See dollar, U.S. electrification and, 371 extension services, 255 foreign aid and, 65, 511 gender and, 407

GNP of, 49 HPI and, 76 IMF and, 544

income differences, 28 incomes in, 90–91, 190 living conditions in, 77–78 as a model, 76

ninteenth century and, 77 North American family, 4 ODA and, 511

OPEC and, 646 Public Law 480, 521 recipients of aid, 514 social mobility, 404 trade agreements, 645 trade deficits, 619

trigger price mechanisms, 625 twentieth century and, 77

See also specific topics, organizations urbanization, 58, 308

congestion and, 291 defined, 243

formal sectors and, 318 forms of, 243

income and, 318 industrialization and, 311, 317 informal sector, 318

labor force and, 138–139, 311 living conditions, 79

policies of, 243 rural areas and, 318 schooling and, 242

Uruguay Round, 624 user rights, 424 Usher model, 32–33 usufruct rights, 249 UV radiation, 438

value-added tax (VAT), 111, 469, 472, 475 variance, 182

variation, coefficient of, 739 Venice, 55

vertical integration, 534

vicious circle theory, 123, 131, 158, 161 villages, 316

Vishny, R., 134 vocational education, 347 von Hayek, L., 149

wages, 606

efficiency wage, 379

income and, 379. See income iron law of, 125

labor and, 321–322, 328 population and, 125 prices and, 322

skill level and, 605 Wagner’s law, 468 Wallerstein, I., 161 war, 117, 132, 212

Washington consensus, 151, 152, 161 water, 42, 194, 255, 420, 428, 429 Watt, J., 370

weak transfer axiom, 179 wealth-sharing, 66

Weber, Max, 59, 93–94, 116, 402, 403 welfare programs, 29

Western economic thought, 2

WHO. See World Health Organization Williamson, J., 31

Wilson, E. O., 436 women, 39

commercialization and, 227 eudcation of, 341 female-headed households, 195 female to male ratio, 192, 193 GDI and, 38–39, 744–745

gender differences, 38–39, 192, 195, 296, 341, 407, 744–745

household, 222 income of, 192, 195

labor force and, 192, 312 life expectancy, 296 “missing” women, 192 poverty and, 191

role of, 303

rural economy and, 192 worker-managed socialism, 664

World Bank, 1, 51, 94, 149, 152, 173, 178, 181, 183, 542, 758–759

adjustment programs, 568, 681 Annan proposal, 586

basic needs and, 42 classification of development, 21 consumption inequality, 183 debt reduction facility, 741

ECA and, 683 educational resources, 344

green national accounts system, 102