Copyright © 2000 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved First printing October 2000 The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly. Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use, is granted by the World Bank, provided that the appropriate fee is paid directly to Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, U.S.A., telephone 978-750-8400, fax 978-750-4470. Please contact the Copyright Clearance Center before photocopying items. For permission to reprint individual articles or chapters, please fax your request with complete information to the Republication Department, Copyright Clearance Center, fax 978-750-4470. All other queries on rights and licenses should be addressed to the World Bank at the address above or faxed to 202-522-2422. For more information and classroom materials on issues of sustainable development, visit our web sites at www.worldbank.org/depweb and www.worldbank.org/html/schools. Please send comments to dep@worldbank.org. Tatyana P. Soubbotina is an education specialist at the World Bank Institute. Katherine A. Sheram is manager of the Development Education Program at the World Bank Institute. Cover and chapter opener design by Gennadiy O. Velte. Inside design and typesetting by Communications Development Inc. The printing of the book was managed by the St. Petersburg Institute, School of Economics (Russia).
Library of Congress Cataloging-in-Publication Data Soubbotina, Tatyana P., 1957Beyond economic growth : meeting the challenges of global development / Tatyana P. Soubbotina with Katherine A. Sheram. p. cm. — (WBI learning resources series) Includes bibliographical references. ISBN 0-8213-4853-1 1. Economic development. 2. International economic relations. I. Sheram, Katherine, 1947- II. Title. III. Series. HD75 .S684 2000 338.9’27—dc21
00-043965
Contents Acknowledgments
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Introduction 1 Difficult Questions, Different Answers Data and Development 1 About This Book 2 How to Use The Book 3 1.
2.
3.
What Is Development? 7 Goals and Means of Development Sustainable Development 9
1
7
Comparing Levels of Development 11 Gross Domestic Product and Gross National Product Grouping Countries by Their Level of Development World Population Growth 16 Global Trends in Natural Population Increase 16 Demographic Changes in Transition Countries of Europe
4.
Economic Growth Rates
5.
Income Inequality 27 Cross-country Comparisons of Income Inequality Lorenz Curves and Gini Indexes 28 Costs and Benefits of Income Inequality 29 Poverty 31 The Geography of Poverty 31 The Vicious Circle of Poverty 32
7.
Education 35 Education and Human Capital 35 Primary Education and Literacy 38 Issues in Secondary and Tertiary Education Health and Longevity Global Trends 43 Population Age Structures Future Challenges 47
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8.
11 13
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43 45 i
9.
Growth of the Service Sector 50 Industrialization and Postindustrialization 50 Service Sector Growth and Development Sustainability Challenges for Transition Economies 53
10.
Urbanization and Urban Air Pollution Particulate Air Pollution 56 Airborne Lead Pollution 59
11.
Public and Private Enterprises: Finding the Right Mix The Dilemma of Public-Private Ownership 61 Is There a Trend toward Privatization? 64
12.
Globalization and International Trade Costs and Benefits of Free Trade 66 Geography and Composition of Global Trade Trade Issues in Transition Countries 71
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66 69
13.
Foreign Aid and Foreign Investment Official Development Assistance 73 Private Capital Flows 75
14.
Economic Development and the Risk of Global Climate Change
15.
Composite Indicators of Development Development “Diamonds� 83 Human Development Index 84
16.
Indicators of Development Sustainability 86 Composition of National Wealth 86 Accumulation of National Wealth as an Indicator of Sustainable Development
17.
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Annex 1 Classification of Economies by Income and Region Annex 2 Data Tables
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Some Additional Issues: In Search of a Comprehensive Development Strategy Social Capital and Social Cohesion 90 The Role of Government Policies 91 Choices and Challenges 92
Glossary
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52
109
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Acknowledgments
The preparation of this book benefited greatly from the support and valuable contributions of many colleagues in the World Bank Institute and in other departments of the World Bank. The authors express their sincere appreciation to those World Bank experts who provided extremely useful comments, suggestions, and inputs during the drafting of this book: Vinod Thomas, John Middleton, Philip Karp, Carl Dahlman, Simon Commander, John Oxenham, Dusan Vujovic, Peter Miovic, Vladimir Kreacic, Kirk Hamilton, Ksenia Lvovsky, Magda Lovei, Tim Heleniak, Joanne Epp, and William Prince. Special thanks go to Development Education Program (DEP) team members for their warm support and close collaboration and to
John Didier for his dedicated editing of the final text of the book. The authors are also grateful to the Russian DEP project team, Vladimir Avtonomov, Andrei Mitskevitch, Sergei Ravichev, and Alexandre Kuznetsov, who provided their valuable advice while working on the national adaptation of this book published in Russian as The World and Russia. The editing and the pre-press production of this book was done by Communications Development Incorporated. The printing of the book was managed by our valued Russian partner, the St. Petersburg Institute, School of Economics.
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