In Pursuit of Development

An increasing number of countries are struggling with rising debt and facing defaults. A recent World Bank report revealed that developing countries paid a record $443.5 billion in 2022 to service their public debts, a situation exacerbated by surging global interest rates and a strong U.S. dollar. This debt servicing cost represents a 5% increase from the previous year, with warnings of more challenges ahead for the world’s poorest nations. Therefore, it is crucial to gain a deeper understanding of which forms of globalized finance are more effective in fostering development. This episode focuses on the prize-winning book Pawned States: State Building in the Era of International Finance, which examines the consequences of early access to external finance for long-term state capacity. In the 19th century, developing countries frequently sought loans from European credit houses to manage their finances and cope with war. While this external financing provided opportunities for growth, it often allowed leaders of these borrower states to skip essential steps in developing institutions and making political systems more inclusive. "Pawned States" illustrates how this reliance on early foreign loans has resulted in persistent fiscal instability and diminished governmental effectiveness in the developing world.Didac Queralt is an assistant professor of political science at Yale University, who studies historical causes of modern-day fiscal institutions. @DidacQueraltKey highlightsIntroduction – 00:24Rising public debt in the Global South – 03:56Conditionality and the international financial architecture – 10:12Access to international finance in the 19th century– 18:22Borrower motives and ability to pay back loans – 24:12Lender strategies – 31:13Success stories: Japan and Chile – 35:08Argentina and Ethiopia – 40:40Lessons for modern states– 44:08 Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

The landscape of development theory, measurement, and policy was transformed in 1990 with the publication of the first Human Development Report by the United Nations Development Program (UNDP). This report also introduced the Human Development Index, which is a summary measure of average achievement in 3 key dimensions of human development: life expectancy at birth, literacy and income. In 1981, Amartya Sen published a paper titled "Public action and the quality of life in developing countries", discussing global advancements in quality-of-life metrics such as longevity and literacy despite rising poverty in some areas. Sen highlighted the significant variance in progress among countries, examining how public policies influenced improvements in these indicators. His research on human capabilities, stressing the need for equitable opportunities and choices for everyone, also significantly contributed to the concept of human development. The noted Pakistani economist Mahbub ul Haq shared Sen’s vision of focusing on human capabilities and well-being and moving beyond GDP in the pursuit of development.Haq also pioneered the practical application of the human development approach by introducing the Human Development Index. Both Sen and Haq were aided in this effort by Meghnad Desai, who taught economics from 1965 to 2003 at the London School of Economics, where he now holds the post of Professor Emeritus. Professor Desai has authored numerous books, the most recent being The Poverty of Political Economy: How Economics Abandoned the Poor (2022). He is also a member of the House of Lords of the United Kingdom. I recently had the pleasure of meeting Meghnad Desai at a conference in New Delhi, titled “Advancing Human Development in the Global South”. In this conversation, he highlights the shift in development metrics from traditional economic indicators to a more holistic approach that includes longevity, education, and income, explaining how this led to a transformative ranking system for countries and influenced international development policy. Our conversation took place outside the conference hall, on a chilly January day, amidst the hustle and bustle of traffic and fellow conference attendees. As I used my phone to record our discussion, you might find the sound quality less than ideal. However, I believe the insights shared by Meghnad Desai about the origins of the human development concept will more than compensate for any audio shortcomings. Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

We explore the idea that the gravest deficits in freedom are intrinsically linked to poverty, impacting individuals and nations worldwide. We also examine the global innovation regime's crucial role in shaping progress and human development. International impact funds encourage and reward innovations based on their social benefits, potentially revolutionizing the current innovation regime. Towards the end of the conversation, we briefly discuss the work of John Rawls and the theory of justice as fairness, which describes a society of free citizens holding equal basic rights and cooperating within an egalitarian economic system.Thomas Pogge is the Leitner Professor of Philosophy and International Affairs at Yale University. He has has authored many influential books on cosmopolitanism, global justice, and extreme poverty. @ThomasPoggeResources:World Poverty and Human RightsJohn Rawls: His Life and Theory of JusticeHealth Impact FundAn Ecological Impact Fund Key highlightsIntroduction – 00:24The poverty-freedom relationship – 03:12Is poverty a violation of human rights? – 06:52The urgency of development finance – 19:19Innovation and impact funds – 27:50Profits, patents, and incentives – 39:42Global justice and solidarity with strangers – 47:00John Rawls and a global theory of justice – 51:52To ensure you never miss an episode of In Pursuit of Development, please make sure to subscribe to our podcast, rate us to support the show, and share this episode within your networks. Your engagement helps us bring more insightful content to you and keeps the conversation going.  Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

Few events have transformed society as profoundly as the Industrial Revolution. The introduction of the factory system not only revolutionized the production landscape but also reshaped the social and economic contours of nations. This transformation was marked by the birth of industries such as textiles, iron, and glass-making, which catapulted productivity and altered every facet of daily life, setting the stage for modern civilization. However, the bastions of industrialization are not impervious to change. Jostein Hauge is a political economist and Assistant Professor in Development Studies at the University of Cambridge, based at the Centre of Development Studies and the Department of Politics and International Studies. In a new book – The Future of the Factory: How Megatrends are Changing Industrialization – he advocates for adaptive, forward-looking industrial strategies that are attuned to the realities of the 21st century. He argues that the current era is characterized by four 'megatrends' or significant shifts in technology, economy, society, and ecology that are collectively redefining the essence and trajectory of industrialization. These trends are challenging the conventional wisdom of manufacturing-led growth and industrial strategies. From the rise of service economies and digital automation to the complex web of global production networks and the pressing imperatives of ecological sustainability, these megatrends demand a reevaluation of the future of factories and the very notion of industrial development. @haugejosteinTo ensure you never miss an episode of In Pursuit of Development, please make sure to subscribe to our podcast, rate us to support the show, and share this episode within your networks. Your engagement helps us bring more insightful content to you and keeps the conversation going. Key highlightsIntroduction – 00:24Industrialization, factories, and wellbeing – 03:56Labor conditions in global production networks – 09:27Devising a good industrial strategy – 14:01The role of manufacturing – 24:14Automation and the fear of mass unemployment – 29:35Global governance and leveling the playing field – 38:03Industrial strategies in an age of ecological breakdown – 41:53 Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

The right to development enables individuals and communities to actively participate in and benefit from various forms of development — economic, social, cultural, and political — while ensuring their human rights and freedoms. It involves a range of responsibilities, including the roles of states, multinational companies, NGOs, businesses, and educational institutions. Central to this right are principles of self-determination, intersectionality, intergenerational equity, and fair distribution, aiming for inclusive, diverse, and sustainable development. The shift towards a rights-based development framework is evident in initiatives like the 2030 Agenda for Sustainable Development and the Bridgetown Initiative. Additionally, the role of businesses in this context is guided by frameworks like the UN Global Compact and the Business and Human Rights Guiding Principles, moving beyond the traditional "do no harm" approach. Despite its significance, the right to development faces challenges and legal critiques regarding its implementation and necessity.Surya Deva is the UN Special Rapporteur on the right to development and a Professor of Law and Director of the Centre for Environmental Law at Macquarie University, Australia. @ProfSuryaDeva @UNSRdevelopmentResources:Declaration on the right to development (1986)Reinvigorating the right to development: A vision for the future (report submitted to the Human Rights Council, August 2023)Role of business in realizing the right to development (July 2023)Key highlightsIntroduction – 00:24The right to development and its added value– 03:46The value of binding conventions versus non-binding declarations– 09:25Why the judiciary often prioritizes civil and political rights – 15:16Legalization of the right and the role of the courts in upholding binding conventions– 26:18Has the definition of the right to development been overly broadened or inflated? – 31:31The Global North perspective and the role of businesses – 40:23  Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

The term "Global South" has seen an exponential rise in both academic discourse and international policy dialogues, having evolved from a mere synonym for the “Third World” to a complex geo-historical concept. In the first part of this episode, we critically analyze the utility and limitations of the term, acknowledging the diverse economic, political, and cultural realities it attempts to encapsulate. In the second section, we unpack how feminist political economy scrutinizes the power relations underlying production and consumption, challenges the fictitious separation of economic realms from the social, political, and cultural spheres, and highlights the gendered nature of economic inequalities. We explore the critical themes of social reproduction, care economies, labor market inequalities, and the household as a site of gendered power dynamics, all while considering the intersectionality of gender, race, and class. Sara Stevano is a Senior Lecturer in Economics at SOAS University of London. Sara’s areas of expertise include the political economy of work, food and nutrition, inequalities and social reproduction. Her recent book with Sara Cantillon and Odile Mackett is Feminist Political Economy. A Global Perspective. @SaraStevano @SOASKey highlightsIntroduction – 00:24The utility and limitations of the term the "Global South"– 03:58The term "Global South" often comes under criticism for several reasons– 10:12The added value of feminist political economy approaches – 16:36The feminization of poverty – 21:06The complex relations between gender, growth, and poverty – 26:46The global care chain and the double burden – 34:20Feminist political economy and climate change – 44:54 Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

China's burgeoning relationship with the African continent has been characterized by significant economic investment, trade, and infrastructure development, with China emerging as Africa's largest trading partner and a major player in the continent's evolving economic landscape. In recent years, we have seen an influx of Chinese involvement in African industries ranging from mining and construction to manufacturing and retail. This has been accompanied by an ambitious drive to develop Africa's infrastructure with projects that span roads, railways, ports, airports, and telecommunications networks. But the ties between China and Africa extend far beyond economics. We're witnessing a dynamic cultural exchange, burgeoning diplomatic activities, and even aid and military support. However, these activities have not been without controversy, igniting debates over so-called debt-trap diplomacy and resource exploitation.Joshua Eisenman is an Associate Professor of Politics in the Keough School of Global Affairs at the University of Notre Dame. His research focuses on the political economy of China’s development and foreign relations with the United States and the Global South —particularly Africa. Together with David Shinn, Josh has recently co-authored a new book entitled: China’s Relations with Africa: A New Era of Strategic Engagement. @Joshua_EisenmanKey highlightsIntroduction – 00:24China and an alternative world order – 03:20The quest for soft power – 10:40Debt burdens and the Belt and Road Initiative (BRI) – 15:10Revamping the BRI – 18:11Why “debt-trap diplomacy” is misleading – 24:10China’s growing relational power - 30:14Increasing the voice of the Global South – 39:57New forms of Chinese multilateralism – 45:53 Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

Established as an independent complaints mechanism in 1993, the Inspection Panel is tasked with bringing transparency and redress to those adversely affected by World Bank-funded initiatives. The Panel is widely recognized as an international pioneer in respect to holding a major multilateral organization to account on social and environmental issues. Over the past three decades, it has registered numerous “Requests for Inspection”, from communities potentially affected by World Bank-financed projects, and has focused on a range of issues, such as environmental assessment, resettlement and the rights of indigenous peoples. Just how effective has the Inspection Panel been in safeguarding the interests of marginalized groups while holding one of the world’s most powerful institutions to account?Ramanie Kunanayagam is the Chairperson of the Inspection Panel. She has a distinguished track record in leadership roles within the realm of sustainability, having served in prominent capacities in the corporate world and on the boards of several non-profit organizations. LinkedinKey highlightsIntroduction – 00:24How does the Inspection operate? - 03:32Shrinking civic space and the Panel’s accessibility - 10:44How the Bank acts upon the Panel’s recommendations  - 16:53Typical complaints - 21:23The puzzling lack of consultation of local residents - 25:29The business and human rights linkages - 38:33Learning from past mistakes - 48:51 Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

Once heralded as a miraculous material, plastic now poses a slow and insidious threat to our waterways, landscapes, and ecosystems. Plastic pollution impacts different regions of the world to varying degrees, and Malawi stands out as a notable example. An estimated 75,000 tons of plastic are manufactured annually in the country, with a minimum of 80% of these plastics being discarded as single-use items. Following pressure from environmental activists, the Government of Malawi took action by implementing a nationwide prohibition on the production, distribution, and importation of thin plastics in 2015. This ban was specifically aimed at plastics with a thickness of 60 microns or less, roughly equivalent to the thickness of plastic bags commonly used for fruits and vegetables in grocery stores. One of the prominent advocates driving the campaign for the prohibition of single-use plastics was Gloria Majiga, a community development officer and dedicated environmental activist. She was awarded the 2021 Goldman Environmental Prize for Africa, acknowledging her remarkable efforts in championing the implementation of the nationwide ban on single-use plastics in Malawi. LinkedinResources:Whatever happened to the Malawian anti-plastic activist inspired by goats? (NPR, August 2022)Malawi’s landscape is clogged with plastic waste that could linger for 100 years. One woman has taken on plastic companies and won (CNN June 2021)Key highlightsIntroduction – 00:24The development-environment tradeoff - 05:03Waste management strategies and practices - 07:47Goats and the plastic ban - 20:27The role of the judiciary and implementation of the ban- 32:12The environmental consequences of investments - 40:58Are leaders the problem? - 47:26 Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com

Development implies not just growth over a significant period of time but also progressive changes in the structure of an economy. Many influential scholars have identified the crucial role of property rights and the importance of constraining the power of the state while others highlight the importance of political settlements, development clusters, and inclusive economic and political institutions.Shiping Tang is Fudan Distinguished Professor and Dr. Seaker Chan Chair Professor at the School of International Relations and Public Affairs at Fudan University, China. In his latest book, The Institutional Foundation of Economic Development: A systemic account of how institutions shape economic development, he argues that institutions play a pivotal role in shaping and influencing economic development through four key factors: possibility, incentive, capability, and opportunity. In addition, his framework encompasses six significant dimensions: political hierarchy, property rights, social mobility, redistribution, innovation protection, and equal opportunity. Sustained economic development, however, necessitates not only a robust institutional foundation but also strong state capacity and well-crafted socioeconomic policies.Key highlightsIntroduction – 00:24What is economic development? - 03:15The development-democracy linkage - 05:19Why established understandings of institutions are incomplete - 11:30The institutional foundations of economic development - 14:45The new development triangle - 21:02Explaining China’s economic success - 25:40Power and influence of local leaders in China - 34:23Achieving sustained economic growth – 44:10  Host:Dan Banik LinkedInX: @danbanik @GlobalDevPod Subscribe:Apple Spotify YouTubehttps://in-pursuit-of-development.simplecast.com