Studies in Globalization and Economic Transitions by Keith Griffin (auth.)

By Keith Griffin (auth.)

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1 More commonly, the bundle of commodities is aggregated and specified as a minimum living standard or a minimum level of income. , that level of income which is sufficient to prevent malnutrition. In effect, then, the minimum income standard is anchored to one basic need, namely food, which implicitly is regarded as more fundamental or more important than other basic needs. A second way to view poverty is as a relationship of a person to a set of 'capabilities'. This approach regards commodities or income not as ends in themselves but as means which enable people to function or to exercise their capabilities.

Indeed, were it not for Japan and a few of the smaller donors such as Finland, Denmark and Italy, the aid ratio in 1989 would have been even lower than it was by a substantial margin. 2 gave less aid in 1989 (relative to their GNP) than in 1975-79. Second, there is a danger that as ideological competition subsides with the end of the Cold War, and commercial considerations become even more prominent, the quality of foreign aid may deteriorate. That is, the grant element of aid may decline and the proportion of aid that is untied and freely available for worldwide procurement may also fall.

Increased life expectancy combined with low fertility rates is resulting gradually in an ageing of the population and a rise in the ratio of retired persons to active workers. That is, labour of working age is becoming increasingly scarce relative to the population as a whole. An obvious solution to this problem is to import labour from countries where it is abundant and it is here that liberalizing international labour markets, structural change in developed countries and the ageing of the population intersect.

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