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3rd World Farmer

Lecture post simulation

Cristian Selman

on 19 June 2012

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Transcript of 3rd World Farmer

What is the relation between the game and the real-world economics? In the model of Acemoglu and Robinson, the structure of institutions are explained by historical factors which eventually determine the relation of power and the distribution of resources among the members or groups within of a society. The political and economical differences produced in some historic moment in favor of some group over anothers can allow to those privilegied to build an institutional system able to keep the control of resources, which in turn help them to reinforce the political control (De facto political power) even beyond of De jure political system (The discrimination of the black minority in USA decades after abolition of slavery or the persistence of inequality in latin american societies across last centuries are goods examples of it). The background behind of the events occurred in the game, such as civil wars, corruption, pillage acts, and in general, facts concerned with political and social instability, are closely related with the weakness of institutions under which a society organizes itself. 3rd World Farmer
Lecture post simulation 1. Microcredit and microfinance II. The impact of Communications Technologies in the 3rd World 3. Population dynamics When events as droughts, flood or pillage acts left the farmers without money, then, how is it possible keep the farm and survive? The importance of a accesible financial system. Case studie: Grameen Bank Bank created for poor people in Bangladesh by Proffesor Muhamad Yunus in 1976.
The bank is owned by poor borrowers.
More than 8.000.000 of borrowers (97% of the are women).
More than 80.000 villages covered along 38 countries
More than US $ 10 billion disbursed in loans
Grammen Bank and Muhammad Yunus, were laureate in 2006 with the Nobel Prize of Peace Examples of real world ICT and microfinance: ICT helps to improve production NMRiceMobile, a project developed by IRRI ( International Rice Research Institute) enables farmers in the Philippines to:

Call a toll-free number from their mobile phone
Answer questions by pressing the numbers on the phone's keypad as prompted by a recorded voice
And then receive a text message with a fertilizer recommendation for their field For rice producers is important to know how many fertilizer is required in order to optimize resources. To use little fertilizer than the necessary means lower yields and lower profits. To use too much fertilizer than recommended wastes money and causes pollution. But because every farmer's field is different, figuring out exactly how much to use is complicated. ICT reduces Asymmetric Information Photo: International Rice Research Institute Mobile Phones reduces asymmetric information helping to rural producers to obtain better bargains when negotiating with traders. This because mobile phones allow them to contact relatives or anothers trades to check information about market prices.
(Photo credit: Krishnendu Halder/Reuters) In each turn in the game, you must to decide if have a baby. From this decision raises several strategies of survival, one of which is to have many children with the idea to dispose in the middle and long term of labor enough to work the farm.
But what if this strategy is adopted by many families in a country becoming a common practice? In many zones of 3rd World, the growth of population has been high for decades, due to cultural factors, or the absence family planning methods.
Photo: Engineering Students Without Borders (ESWB) Then, which can be the consequences of overpopulation? Image: New York Times When the population grows out of control given and under an environment of scarcity, then it is possible to expect serious problems. 4. The role of Institutions Although the genocide involved the killing of Tutsi minorie by the Hutu majority, there is studies that points out that as Tutsies as Hutus was killed due to disputes for land, which were becoming more scarce, give the historical high rates of fertility. The institutions, according to Douglas North (Nobel Prize of Economics) are the rules of game that defines restrictions and spaces within which the agents of a society can interact. When institutions are weak, that is, when they do not provide check and balance against arbitrary government so that there is not guarantee of justice, security or peaceful resolution of conflicts in the same way for all members or groups of the society, then the possibility of conflict is open and the individuals, as exposed to uncertainty, are unlikely to invest time and money in productive activities that could be subject to pillage or usurpation, which do not ocurr in stable societies where entrepreneurship and its results are respected. Thus, under weak institutions, increases the informal economy, the state loses tax revenue, weakenig itself still more and accentuating its arbitrareness, so that incentives for corruption and crime are so high that both became regular activities. Political and economic institutions are related in a complex way Map marking village burned in the Darfour Crisis, Sudan, a civil war between arab and no arab people, which have killed thousand of people Image: The Center for Systemic Peace Image: The Worldwide Governance Indicators (WGI) project Image: The Worldwide Governance Indicators (WGI) project The genocide in Rwanda In 1994, under political and economics tensions, Rwanda was the stage of most terrible massacre of the last age. Only in a few months, between 500.000 and 1.000.000 were killed. The massacre was named genocide because groups belong to the ethnic majority Hutu instigated the killing of ethnic minoritie Tutsi. The Grameen Bank According to Microcredit Summit Campaign, at least 100.000.000 world's poorest families have been reached through of loans.
Microcredit have become a topic trend, not only because many institutions have been created for that purpose but also because academic studies and political debates are emerging about the true effectiveness and importance that these tools could have for development. For to win the game is necessary to complete projects. Among them, the acquisition of a communnications system.Then, what about the impact of ICT on poor people?
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