Introduction: What Is Development?

According to the World Bank, almost one-half of the world's 6.5 billion inhabitants live on the equivalent of less than $2 a day, and about 20 percent live on the equivalent of less than $1 a day. Meanwhile, people in the 20-richest countries on average earn 37 times more than people in the poorest 20.

At the same time, the extent of poverty has declined significantly . For example, the World Bank estimates that in 1950, 55 percent of the world's population lived on less than $1 per day (in today's dollars). Furthermore, in the year 1900, 66 percent lived on less than $1 per day (in today's dollars), suggesting that economic prosperity increased much faster in the second half of the 20th Century than in the first half.

These contrasts highlight both the problem and the progress of what is known in the international community as "development." Large numbers of the world's inhabitants are mired in poverty, especially in Africa, while inhabitants of the world's richest countries live in both relative and absolute luxury. But people in poor countries are getting wealthier over time—a process linked to globalization because poorer countries can raise their standards of living by integrating with rich countries.

The term "development" in international parlance therefore encompasses the need and the means by which to provide better lives for people in poor countries. It includes not only economic growth, although that is crucial, but also human development—providing for health, nutrition, education, and a clean environment.

The following Issue Brief is designed to help you:

• understand why some countries are developed and other are not,
• describe the problems development is designed to solve,
• familiarize you with the institutions that are active in development,
• explain the main strategies for fostering development,
• and describe the Millennium Development Goals, the international community's new effort to promote development.