Wednesday, September 22, 2010

Week 6. The Numbers Don't Lie

Despite reports that claim economies are on the rebound the statistics that we compiled reveal an alarming trend that affects almost every country regardless of economic classification. Budget deficits are on the rise across the board. These widening gaps will only worsen as the effects of population, government expenditures, and lack of economic growth are felt. Politicians from the highly industrialized countries discussed in Adolino and Blake face a unique dilemma as the 65 and older population far outnumbers those 15 and below. Although the birth and death rates are not as extreme as those found in less industrialized countries, more economic strain is placed on public programs that cater to the demands of an aging population.

Quite the opposite is true in the most recent countries added to the spreadsheet. Here, societal factors such as life expectancy and birth/death rates illustrate the problems facing the governments of some of the most populated places in the world. However, the staggering figures for these characteristics point to a need for public programs that address low life expectancies and high death rates despite adult literacy rates being 99%. These figures tell us that although 90% of the population (in most cases) lives above the poverty line and most adults posses the skills to work and or learn trades there are other factors striking these people down at far too young an age.

The high death rates in India, China, South Africa and Indonesia tell us that basic needs are not being met by government monies. In India, it has been an issue of priorities that has led to their depleted food supply and unstable market prices (Antipoverty Programs, http://www.country-data.com/cgi-bin/query/r-6060.html). In China, rapid urban development has waged a war against citizens in the countryside who see less and less government handouts. In South Africa the influence of lobby groups has swayed policy decisions toward business endeavors rather than the people (Cohen, http://www.businessday.co.za/articles/Content.aspx?id=121830). Ultimately, these governments struggle to catch up to the rest of the industrialized world and become players in the world market so they can afford to provide their citizens with the services they deserve. Unfortunately, that comes at the price of spending less money on things like government subsidies and lower food prices in order to fund large urban development projects that will lure foreign investors. What is a politician to do? Is it the faults of industrialized countries or simply a matter of mismanaging funds and bad policies? When it is well known that corruption runs rampant in governments like South Africa or that historically neglectful governments tightly regulate policy like in China, it is tough to make the argument that the industrialized world is to blame. Perhaps these are policy issues that we will never understand.

Cohen, T. (August 23, 2010). Politics of blandness makes space for odd ideas. Retrieved from http://www.businessday.co.za/articles/Content.aspx?id=121830

India. (September 1995). Antipoverty Programs. Retrieved from http://www.country-data.com/cgi-bin/query/r-6060.html

2 comments:

  1. Hi Lindsey,

    Canadian political commentator Mark Steyn warns North Americans, whose birthrates are relatively high, that, regarding their European allies, “These countries are going out of business,” and that while at the end of the 21st century there may “still be a geographical area on the map marked as Italy or the Netherlands,” these will “merely be designations for real estate.”

    Rocco Falivena, Laviano, Italy’s mayor suggests that, “A village that does not have a school is a dead village.” His solution is to pay women to give birth to and rear a child in the village. The “baby bonus,” is structured to root new citizens in the town. However, increasing birth rates among our European allies might be better effected by other sociological restructurings.

    Researchers at the University of Pennsylvania, analysis of recent studies showed that “high fertility was associated with high female labor – force participation. They suggest that countries with greater gender equality have a greater social commitment to institutional support for working women, which gives those women the possibility of having second or third children.

    Adolino and Blake (pg. 296) point out that Japan’s Prime Minister Junichiro Koizumi sought to expand policies supporting family given emphasis being placed on stimulating higher birth rates. The authors note that new and changing demographic dynamics make it necessary for political movements to re – evaluate policy innovations previously ignored on the public agenda.

    The American labor market allows more flexible work hours facilitating departure from and re – entry to the labor force.” Plans in effect today in Europe to improve support for prospective mothers include tax incentives, state – subsidized child care, and both onetime and ongoing payments. As you note, such largesse may be off the table in nations striving to industrialize.

    Thanks,
    Wendell

    Adolino, J. & Blake, C. (2011). Comparing Public Policies: Issues and Choices in Industrialized Countries. Washington, D.C

    No Babies? Retrieved from:
    http://www.nytimes.com/2008/06/29/magazine/29Birth-t.html?pagewanted=all

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  2. If we agree with your argument that government spending on public programs has decreased during and because of the global recession, we are still left with the question of whether the type of government, the size of the country and the level of centralization are relevant factors.

    If governments from Ukraine to Indonesia are reacting in a similar way to economic conditions, what conclusions may we draw about the saliency of types of government in hard economic times? And are economic indicators the only relevant ones when we look at policy changes? Mortality and literacy rates cannot be immediately linked with the economic crisis, especially in more developed countries which have had a stable base of programs before the global economic crisis. It is rather unemployment benefits and entitlement programs that can tell us more about government priorities because they are direct responses to economic hardship.

    As you mention, welcoming foreign investment at the price of worker's rights in order to boost the economy, for example, is a good indicator of a government's priorities. What the global crisis has brought to light is that the style of government seemingly does not help predict what those are. Like you mention, from the Communists in China catering to capitalism and industrialization to the American Congress debating tax cuts, the economic recession has brought out uncharacteristic behavior in policy makers across the globe.

    Nevertheless, to accurately asses the impact of these behaviors on fertility, literacy and labor we must wait for years. The cycles of economy, policy response--including drafting, acceptance by relevant bodies and enforcement-- are a matter of years, especially in highly decentralized countries like the United States and India. The timing of the global economic crisis makes it tempting to see causation where correlation may not even exist. When examining the trends in governmental responses, we should be careful to account for political, social and even natural causes.

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