Abstract
Gary A. Dymski argues that the twin ideas of social exclusion and inclusion should be incorporated as central elements in development thinking of practitioners and theorists. The failure of economists to make analytical room for these twin notions has caused them to miss or misinterpret significant aspects of the development process, and of development crisis. Indeed, the 2007–2008 subprime crisis provides apt evidence of the significance of social inclusion in development; for its roots lie in the historical evolution of financial exclusion in the United States.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
This definition does not differentiate between ‘Global North’ and ‘Global South’; all societies should be seen as developing.
This is demonstrably false (see evidence cited in Dymski, 2010a).
References
Aalbers, Manuel B. (2009) ‘Symposium: The sociology and geography of mortgage markets: Reflections on the financial crisis’, International Journal of Urban and Regional Research 33 (2): 281–290.
Benabou, Roland (1993) ‘Workings of a City: Location, education, and production’, Quarterly Journal of Economics 58: 619–652.
Bradford, Calvin (2002) Risk or Race? Racial Disparities and the Subprime Refinance Market, Washington, DC: Center for Community Change.
Brooks, Rick and Constance Mitchell Ford (2007) ‘The United States of Subprime’, Wall Street Journal, 11 October: A1.
Brooks, Rick and Ruth Simon (2007) ‘As Housing Boomed, Industry Pushed Loans to a Broader Market’, Wall Street Journal, 3 December: A1.
California Reinvestment Coalition (2010) From Foreclosure to Re-redlining: How America's largest financial institutions devastated California communities, San Francisco: California Reinvestment Coalition, February.
California Reinvestment Coalition, Community Reinvestment Association of North Carolina, Empire Justice Center, Massachusetts Affordable Housing Alliance, Neighborhood Economic Development Advocacy Project, Ohio Fair Lending Coalition, Woodstock Institute (2010) Paying More for the American Dream IV: The decline of prime mortgage lending in communities of color – A joint report, San Francisco: California Reinvestment Coalition, May.
Calomiris, Charles (2008) ‘The Subprime Turmoil: What’s old, what’s new, and what’s next’, working paper, American Enterprise Institute, 1 October.
Crump, Jeff, Kathe Newman, Eric S. Belsky, Phil Ashton, David H. Kaplan, Daniel J. Hammel and Elvin Wyly (2008) ‘Cities Destroyed (Again) for Cash: Forum on the US foreclosure crisis’, Urban Geography 29 (8): 745–784.
Durlauf, Steven N. (1994) ‘Spillovers, Stratification, and Inequality’, European Economic Review 38: 836–845.
Dymski, Gary A. (1998) ‘Disembodied Risk or the Social Construction of Creditworthiness?’, in Roy Rotheim (ed.) New Keynesian Economics/Post Keynesian Alternatives, pp 241–261, New York: Routledge.
Dymski, Gary A. (2010a) ‘From Financial Exploitation to Global Instability: Two overlooked roots of the subprime crisis’, in Martijn Konings (ed.) Beyond the Subprime Headlines: Critical perspectives on the financial crisis, Forthcoming, London: Verso Press.
Dymski, Gary A. (2010b) ‘The Global Crisis and the Management of Power in Finance’, in Philip Arestis, Rogério Sobreira and José Luis Oreiro (eds.) The 2008 Financial Crisis, Financial Regulation, and Global Impact, London: Palgrave.
Garau, Pietro, Elliott D. Sclar and Gabriella Y. Carolini (2005) A Home in the City. Task Force on Improving the Lives of Slum Dwellers, UN Millenium Project, London: Earthscan.
Herbert, Bob (2007) ‘A Swarm of Swindlers’, New York Times, 20 November.
Krugman, Paul (2007) ‘Henry Paulson's Priorities’, New York Times, 10 December.
Krugman, Paul (2009) ‘How Did Economists Get It So Wrong?’ New York Times, 10 December.
Leyshon, Andrew and Nigel Thrift (1996) ‘Financial Exclusion and the Shifting Boundaries of the Financial System’, Environment and Planning A 28 (7): 1150–1156.
Morris, Charles (2008) Trillion-dollar Meltdown, Jackson, TN: PublicAffairs.
Quigley, John M. (2008) ‘Compensation and Incentives in the Mortgage Business’, Economists’ Voice, October.
Palmade, Vincent and Andrea Anayiotos (2005) ‘Rising Informality’, Public Policy for the Private Sector Note Number 298. Washington, DC: The World Bank, August.
Reinhart, Carmen M. and Kenneth Rogoff (2009) This Time is Different, Princeton: Princeton University Press.
Sen, Amartya (1999) Development as Freedom, London: Oxford University Press.
Shiller, Robert J. (2008) The Subprime Solution, Princeton: Princeton University Press.
Stiglitz, Joseph E. (2003) Globalization and Its Discontents, New York: W.W. Norton.
US Department of Housing and Urban Development (2000) Unequal Burden: Income and racial disparities in subprime lending in America, Washington, DC: US Department of Housing and Urban Development, April.
Wallison, Peter J. (2009) ‘The True Origins of This Financial Crisis’, American Spectator, February.
Whitehouse, Mark (2007) ‘Subprime’ Aftermath: Losing the family home: Mortgages bolstered Detroit's middle class – Until money ran out’, Wall Street Journal, 30 May: A1.
World Bank (2005) Brazil: Access to financial services, Coordinator, Anjali Kumar, Washington, DC: World Bank.
Wyly, Elvin K., Mona Atia, Holly Foxcroft, Daniel J. Hammel and Kelly Phillips-Watts (2006) ‘American Home: Predatory mortgage capital and neighborhood spaces of race and class exploitation in the United States’, Geographical Annals 88B (1): 105–132.
Additional information
Shows how the twin ideas of social exclusion and inclusion need to become key elements in economic policy
Rights and permissions
About this article
Cite this article
Dymski, G. Development as Social Inclusion: Reflections on the US subprime crisis. Development 53, 368–375 (2010). https://doi.org/10.1057/dev.2010.48
Published:
Issue Date:
DOI: https://doi.org/10.1057/dev.2010.48