Economics Lectures

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Flashcards on Economics Lectures, created by connornierynck on 18/12/2014.
connornierynck
Flashcards by connornierynck, updated more than 1 year ago
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TFR (Total Fertility Rate) the number of children to be born to a woman if she were to live to the end of her childbearing years. (births per woman)
TFR in the MENA In the 1950's, MENA had the second highest TFR in the world. However, in the 1990's and onward, this trend reversed and MENA enjoyed the world's fastest decline in TFR
TFR in Iran 1965: Shah of Iran institutes family Planning 1979: After the Revolution, Khomeini associates this with the West - Contraceptives remain permitted - Generous benefits for large family 1988: Policy Change; reduce TFR to 4.0 - legalised sterilisation men and women - Subsidies to large families are withdrawn - effect: massive decline in TFR
Consequences of Demographic change (6) 1. Pressure on education systems 2. Rapid increase of job seekers 3. Environmental stress 4. Rapid Urban growth 5. Stress on administrative capacity 6. Stress on Food Supply
Demographic Divident a period (mostly about 20-30years) when fertility rates have fallen, the labour force outgrows the dependent population, freeing up resources for investment in economic development. -Theoretically, period of high growth-
Problem with Economic Dividend in MENA? In the MENA Region, the decline of TFR has not led to increased economic growth, but to a demographic burden in which there is a massive body of the population which is economically frustrated
Human Capital the stock of competencies, knowledge, and skills, experience, etc. embodied in the ability to perform labour as to perform economic value
MENA countries with highest (and lowest!) percentage of urban population + 90% Bahrain Israel Qatar Kuwait - 50 % Egypt, Yemen, Sudan
Problems of rapid urbanisation (4) - Acute Housing shortages - Political violence - Water, Power, and sewage problems - Insecure employment
first stream of labour migration in the MENA Stream 1: to the EU - Oldest flow - Turkish, Moroccan, Algerian labourers to EU - Main motivation: WAGE GAPS
Second stream (where to? + 4 phases) TO THE GULF Phase 1 : 1970s Oil boom also driven by wage gap Phase 2: Mid 80s, oil price slump and decline of migration Phase 3: 1990s Desert storm shift from arab to cheaper asian labour Phase 4: 2000s oil boom and maturity (anyone knows what this last one means?)
'Impacts'. of arab migration on sending countries (3) 1. remittances 2. Emigration: Skilled vs Unskilled (brain drain) 3. Return Migration
'Impacts' on receiving countries (4) 1. Labour growth and development 2. Increased national security and labour control 3. Perceived cultural threat 4. Local youth unemployment
Agricultural decline in MENA the history of MENA agriculture is a sad one, the region underwent a change from a agricultural wealthy and self sufficient region to THE most food import-dependent region in the world
first stage that led to Agricultural Decline (history) 1. Colonial rule - most small domestic farmers work small plots - European Settlers and large domestic landowners controlled large portions of arable land
Second Stage which led to Agricultural Decline Decolonisation & land reform - newly independent governments faced with legacy of sharp inequalities in land ownership - land of large european and domestic landowners was seized as state property - redistribution (think of Nasser!) - ceilings on landownership
Last stage of Agricultural decline World Bank interferes/ reversal of land reforms - wants to shift agricultural activities towards forms of private ownership that are tightly linked to the world market - SAP's
What did these SAP's prescribe? (4) - Privatise collective and state owned land - Strengthen Individual property rights - remove rent ceilings - liberalise agricultural markets basically, neoliberalize the region ...bastards
Consequences of SAP's - More powerful farmers benefit - total number of farmers decline in the process of economic growth - because the smaller farmers saw severe detoriation of rural standards of living - millions compelled to leave countryside (urbanisation) - Patterns of agricultural change become ever more structured and vulnerable to the needs of European Market
Food security vs Food Self-sufficiency Food security: adequate & sufficient food regardless of point of origin. Food self-sufficiency: locally-grown food to meet need.
The Food Gap (when, what?) - following the 1970s Oil boom extreme demand for food due to the 1970's oil boom. It brought into consideration issue of food security vs self sufficiency
Water Problems (5) 1. Water quantity (scarcity) 2. Water quality 3. Agriculture as residual user 4. Financial & managerial constraints 5. International hydropolitics
MENA share on worlds oil reserves? (percentage) 65 slamming percent
Creation of OPEC (when, founding members?) Created Sept 1960 at the Baghdad Conference by Iraq, Kuwait, Iran, Saudi Arabia, & Venezuela.
GCC members Bahrain • Kuwait • Oman • Saudi Arabia • Qatar • United Arab Emirates
Economic Rent Income derived from the gift of nature
Rentier State definition A state is rentier when its primary source of income is derived from the “rent” it receives from external sources for the use/production of its resource.
Natural resource dependency vs Rentierism Rentierism % rent in government revenue Natural resource dependency % of natural resource exports to GDP
Characteristics of Rentierism - rent goes directly to the state - rent comes from global sources - Political orders derives from historical factors (monarchies) - weak civil society - weak institutions - excessive military spending - generous benefits to population
Early challenges to Rentier States - Human capital development (need for skilled experienced workers) - labour shortages
Belgians A beer-loving community which is currently having its own Intifada due to Neoliberalist policies introduced by the new government, which would severely undermine the very principles our country stands for
Major current challenges - heavy dependence on single resource (oil) - dependence on foreign labour
The Dubai Model - Government led development - flexible labour force - creation of investment opportunities - Diversification !! (creation of service, financial, ... sectors)
The Upstream Sector exploration / extraction
The Downstream sector petrochemicals, plastics, fertilizers
SWF Sovereign Wealth Fund Investment fund controlled by a government & invested (partly or wholly) in foreign assets.
Shift in Gulf Investments? 1. From investments to US financial sector to corporate sector (real number can not be found since they often do it through a third party) 2. More investment to Asia and ME (lebanon in particular)
Why the rise of Islamism? - Resistance to Western colonialism - Rejection of “Zionist project” - Against Neoliberal policies by the West
Islamic Banking (principles) Idea: interest rates foster injustice & inequality Ideally: all contracts based on profit-and-loss sharing (equity contracts
Murabaha contract 'Halal' contracts Compatible with modern banking system. Murabaha accused of not being significantly different from mainstream banking practices
Liberalism's Gender Paradox + Increases in female labour force participation, expansion of global norms, policies, networks calling for gender equality & human rights BUT - Rising unemployment, growing inequalities, decline in capacity of welfare & developmental state, increased casualization of labour
Citizenship in the gulf Citizens vs Noncitizens Citizenship restricted to minority of population Migrant workers form lower ranks of TWO-TIER system while nationals enjoy cheap housing , and generous social services "Allows ruling families to wield a powerful system of control over the majority of resident population while ensuring citizen allegiance to this highly unequal status quo" Hanieh 126
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