Politics of the Developing World Essay Example | Topics and Well Written Essays - 1250 words

Politics of the Developing World - Essay Example On the other hand, the south comprises of Africa, Asia, and Latin America. Political Economy This is a term used to describe the relationship between the state, the legal system, and the economy. In general, terms it captures the interplay between the three facets in a way that determines the stability of countries and the economic structures. Development refers to the growth of a country in terms of matters of economy, governance, and human development. The term embraces such areas as the growth of GDP, economic growth in relation to the improvement of infrastructure, healthcare, education systems, and other indicators of growth. New International Economic Order The term describes a combination of proposals created by developing countries in the 1970s with the objective of improving their economies. The proposals included the improvement of trade terms through favorable tariffs and enhancing development assistance. Walt Rostow (1916-2003) He was a renowned American economist and an acclaimed political thinker. Rostow was a staunch defender of capitalism and policies of a free enterprise in the twentieth century. Rostow played a significant role in determining US foreign policies particularly with regard to Asia. Raul Prebisch (1901-1986) Prebisch was a renowned economist from Argentina remembered for contributing to the development of structuralist economics. He developed a trade-focused approach on matters of development and recommended preferential treatment for some countries in trading matters. Hans Singer (1910-2006) Singer was a German development economist. He believed that terms of trade generally do not play to the advantage of primary producers. He advocated for the increment of foreign aid to poor countries. Hegemonic Stability Theory The theory was developed for understanding international relations. The leadership of a hegemon in whatever form eventually results in the deployment of its influence on economic systems. The theory is largely attribut ed to Robert Keohane although various theorists who gave it varying interpretations developed it. Joseph Stiglitz (1943-Present) Stiglitz is an American economist well known for his strong support of globalization and the creation of free market economies. Much of his contribution in economics are in the areas of income distribution, international trade, corporate governance, and other areas that relate to modern economies. Section B 1). Different Interpretations of Poverty The United Nations approach to poverty was largely focused on the aspects of unemployment, equality, and poverty. On the other hand, the Bretton woods institutions focussed largely on the aspect of economic development as the key driver of development or the elimination of poverty. The United Nations was cognizant of the fact that economic growth does not necessarily translate into development. The difference between the two systems is mainly focused on the human factor at the core of the developmental initiative s. The IMF and World Bank kind of development was largely hinged on the development of free-market economies, which would spur economic growth and eventually lead to the elimination of poverty. 3). Realism, Institutionalism, and Structuralism The realist view, as understood within the framework of the International Political Economy (IPE) was based on policies that supported the use of tariffs to shield weak and infant economies.