Chapter 9 Development and Environment (Week 10)

9.1 Discussion questions

  • How can we end poverty? What have you learned from Birdsall et al. (2005)?

  • What are the different ways to address climate change? Which one is most promising?

  • What do you think are the biggest challenges to the future of global order? (*)

Can extreme poverty ever be eradicated? | The Economist

A Counterintuitive Solution to Poverty: Stop Trying to Eradicate It | Efosa Ojomo | TEDxBYU

Protecting climate change aid in Nepal | Global Ideas

China’s New Carbon Trading Market: Impact On Consumers and Investors | Money Mind | ETS

9.2 Development

  • More or less trade liberalization? Many people argue that agriculture trade liberalization is a great way to help less developed countries. The U.S., for instance, subsidizes its cotton farmers (about 25000) around $2 billion per year. Japan, for another example, also spends a lot to support its own farmers.

  • Is foreign (development) aid counterproductive? The paper points out “Aid is only as good as the ability of a recipient’s economy and government to use it prudently and productively” (p.143). But Angus Deaton argues: “Aid undermines what poor people need most: an effective government that works with them for today and tomorrow.”

9.3 Environment

Public goods, such as clean air and clean water, are often undersupplied. Although individuals all have an interest in environmental protection and cooperation, no one has the incentive to take the initiative to conserve and protect. This is sometimes referred to as the tragedy of the commons. Let us consider a couple of questions concerning climate change.

  • What would be a fair bargain for countries across the world in addressing climate change? Should developing countries that have not emitted much carbon historically be allowed to emit more? Or should large developing countries restrict their emission given they are likely to pollute more?