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Economic Development with Insight into the Amish Community
Transcript of Economic Development with Insight into the Amish Community
ECON 240 - Economic Development of Third World Countries
Economic Development with insight tothe Amish communityThe factors impacting the development of third world countries in reflection with the Amish way of living Prerna Tarika Diwaker
Dr. Lindy Backeus
Econ 240 Integrative paper
About 4,892 words
5/4/2012
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Economic Development with insight to the Amish community
Introduction
The term ‘Development’ has often been used to depict a
progressive change from a worse situation to a better situation.
Our readings; primarily dealing with authors like Aro Klamer, Tom
Sine, Donald N. Mc.Closkey, Gustavo Esteva, Richard Peet and many
others; primarily deal with the different aspects of Economic
Development. My integrated paper aims to focus on three factors
impacting the development of third world countries (namely
population growth, agriculture and food production) in reflection
with the Amish way of living. I also give insight on the reality
of the distinguishing between developed and under-developed
countries, Chrematistics and Oikonomia and biblical view on the
destructive development prevalent. Finally, I hope to conclude
with a hope to achieve development in a more productive way by
taking into consideration adapting a few values of the Amish way
of life.
What exactly is development?
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Many great philosophers and economists have often misinterpreted
Development as “material progress” of a nation. While some of our
readings focused on the “desperate need of reinvention of the
prescribed ideologies of Development” others focused on the
Environmental repercussions related with Development. H. W Arndt
also confirms this notion by stating that “Material progress was
the expression almost invariably used by mainstream economist
from Adam Smith until World War II when they referred to what we
would now call the economic development of the West during those
two centuries.”1
However, I personally don’t agree with the ideology that
Development is only material progress from a worse situation to a
better situation. My question is; although a country has been
branded as one of the pioneers of technology by the World Bank,
yet it has many hungry and homeless people on its streets. Can
this country be classified as a developed country? I was happy to
find my answer in a reading which stated that “The country that
is more developed industrially only shows, to the less developed
1 H. W. Arndt, Economic Development : A Semantic History, Australian National University, (p. 457)
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the image of its own future.”2 Karl Marx described the essence of
development in its true senses; where in his later writings
dealing with the conclusion phase of the Second Congress of
Communist International 1920, he clearly distinguished between
the “oppressor” and the “oppressed” and the “advanced” and
“backward” countries.
Mahatma Gandhi, the father of my nation – India, once said,
“Economics that hurt the moral well-being of an individual or a
nation are immoral and therefore sinful”. In my opinion, an
Economy ought to be left alone to develop by itself. It is
similar to that of a human (Esteva might agree if it is compared
to an animal or pant in this case) and the intransitive process
of nature cannot be forced on to it. It has to be transitively
offered resources and then left alone to let the process take its
own course of action. I would also like to add that economic
development is not something of transitive nature wherein the
government can induce progress; it is of an intransitive nature,
similar to the development of a child, wherein the process of
development should take its own course of time.
2 Karl Marx and Frederick Engels, Selected Works in Three Volumes (Moscow: Progress Publishers, 1969), 2:87.
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The difference - Chrematistics and Oikonomia
Aristotle once made a very important distinction between
chrematistics and Oikonomia. Oikonomia is the root word from
which “Economics” is derived from. Chrematistics can be defined
as that branch of political economy that is related to the
manipulation of property and wealth. In contrast, Oikonomia is
the management of the household so as to increase its use value
to all members of the household over the long run. In the modern
age, the usage of the discipline of economics is much closer to
chrematistics rather than to Oikonomia. Oikonomia differs from
chrematistics by it pertaining to the long-run view, it considers
costs and benefits collectively and it focuses on the abstract
change of value and its drive towards unlimited accumulation.
Since time immemorial, many economists have been trying to
distinguish “economic development” from “economic growth”. Arndt;
in his article; suggests that the best way to achieve this is to
“breathe into "development" some of the Hegelian connotations
that had got lost on the way.”3 The Hegelian connotations in the
3 H.W. Arndt, Economic Development : A Semantic History, National Australian University, (p. 466)
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Doctrine of development state that the first and most wide-
reaching consideration of the process of spirit, God, or the
idea, reveals to us the truth that the idea must be studied (1)
in itself; this is the subject of logic or metaphysics; (2) out
of itself, in nature; this is the subject of the philosophy
of nature; and (3) in and for itself, as mind; this is the
subject of the philosophy of mind (Geistesphilosophie).
The classification of the developed and the underdeveloped
How do we come about to classifying things as underdeveloped and
developed? Gustavo Esteva offers insight into this problem of
mine by stating that “In order for someone to conceive the
possibility of escaping from a particular condition, it is
necessary first to feel that one has fallen into that condition.
For those who make up two-thirds of the world’s population today,
to think of development – any kind of development – requires
first the perception of themselves as underdeveloped, with the
whole burden of connotations that this carries”4. The statement
“development describes a process through which the potentialities
4 Gustavo Esteva, Development, (p. 7)
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of an object or organism are released until it reaches its
natural and complete full-fledged form”5 according to me,
represents the real ideology behind development and what it
should represent. Throughout the chapter, it is evident that
dictums proposing the evident difference between economic growth
and development; like that of Lewis’ dictum which stated that
“first it should be noted that our subject matter is growth, and
not distribution”; only reiterate the fact that our correlation
of economic growth with development is far from being right.
Until and unless we get our basics and base right, it is doubtful
that any country is going to achieve “Development” in its true
senses.
In their book For the Common Good, Cobb & Daly also address
this line of reasoning. Their statements of how the GNP is not
the ultimate measurement of development of an economy. Although
the GNP can be used to determine as to where an individual would
find the best method as to satisfy his personal motives of where
he can increase his standard of living, it does not silo down
5 Gustavo Esteva, Development, (p. 8)
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countries into “healthy” and “unhealthy” economies. Esteva also
states that –
“The problem of underdeveloped countries is not just growth,
but development… Development is growth plus change, [it
added]. Change, in turn, is social and cultural as well as
economic, and qualitative as well as quantitative… The key
concept must be improved quality of people’s life.”6
Thus, this clearly states as to how we should approach the idea
of Development not only in materialistic terms but also in
qualitative terms.
I also agree with the statement of Cobb & Daly’s in their
book For the Common Good which states that “the tendency to
forget that GNP measures only some aspects of welfare and to
treat it as a general index of national well-being is a typical
instance of the fallacy of misplaced concreteness.”7 In my opinion
of the Fallacy of Misplaced Concreteness, I believe that indeed
this is something which we as a community cannot altogether avoid
it but we can try as much as to reduce it. To reduce the
abstraction and to probably broaden the horizon by which the
6 United Nations, The UN Development Decade: Proposals for Action, New York: UN, 1962.7 Cobb & Daly, For the Common Good, Massachusetts: Boston, (p.63)
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authorities think would take a long time and a big change of
attitude. Since “instinctive conviction” is often connected with
the mathematical sophistication of things rather than what really
is going on, the government often comes a point wherein they
realize that the models which they apply for controlling and
regulating the economy do not really deliver the expected
results. This is aptly described in the book as “any pretense of
applying precise formulae is a sham and a waste of time”8 I
believe that this rightly describes the outlook to which
Governments should be approaching development. The degree of
abstraction away from reality is what we need to watch out for.
The Net National Welfare is one such outlook to things. Instead
of looking at the growth of GNP of the nation, the government
should look at factors like the decrease in the numbers of
homeless people, decrease in the rate of deaths in the country
etc to gauge the development of that country.
Agriculture and world food production
8 Cobb & Daly, For the Common Good, Massachusetts : Boston, (p. 31)
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Agriculture has popularly been defined as the ‘backbone of an
economy’. In today’s scenario it could be defined as the balance
between modern science & technology and traditional farming
practices to procure maximum yield. Roland Bunch, in his book Two
Ears of Corn: Chapter 7 – Limit the Technology, talks about the various
methods that could probably be used by the heads of villages to
help increase the production of crop by simultaneously limiting
the technology. If development is looked as the growth of a
community, it would obviously be primarily concerned with a self-
sufficient production of food. This is because a healthy
community is a self-sufficient community. A community’s
dependence on other communities for its survival is not a good
sign, especially in matters pertaining to production of food.
Without food survival becomes very difficult. I agree when Cobb
and Daly state that “Hence, how and where food is grown is
foundational to an economics for community9”.
Although, India is regarded as an upcoming Information
Technology and Software Programming giant, it is primarily an
9 Cobb & Daly, For the Common Good: Chapter 14 - Agriculture. (p.268)
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Agrarian economy with 60% of its GDP from its primary sector.
Despite Sen pointing out in his text that “Not only is there no
real decline in world food production per head, but also the
largest per capita increases have come in China, India and the
rest of Asia10”, other prominent economists point out that there
is clearly an alarming upward trend in the possibility of a world
food production crisis. We need to make note that the rise in
world food production has taken place despite the declining trend
in world food prices in real terms. This entails a decline of
economic incentives to produce more food in many areas of
commercial food production.
Nevertheless, world food output has continued to grow ahead
of the growth in population. It is shocking to note that because
like other economic activities, commercial production of food is
influenced by the interplay of the markets and prices; the world
food production is being kept in check by the lack of demand and
falling food prices. This ultimately reflects the appalling
poverty prevalent around the world. In light of this, Cobb and
10 Sen, Amartya. Population, Food and Freedom. (p. 205)
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Daly advocate that “The region, like the nation, should aim at
relative self-sufficiency. If it can meet its own specific needs,
then it can trade to its own advantage with other countries. It
can maintain itself as a viable community.11” They further imply
that this would result in reduced dependence on market prices of
commodities, interest rates on loans and also that the total
economy would be more stable if its units were more independent
and its supply lines shorter.
In their book Economics of Development, Perkins, Radelet &
Lindauer also state that “Farmers in developing countries must
produce enough to feed themselves as well as the urban
population. Hence, as the population rises the productivity of
the farmers must also rise. If productivity does not rise, the
terms of trade will sharply turn against the industrial sector,
cut into profits and eventually bring growth to a halt.12” This
brings us to the problem we face today – the ever increasing
trend of population growth and the decreasing world food
11 Cobb & Daly. For the Common Good: Chapter 14 – Agriculture. (p. 269) 12 Perkins, Radelet & Lindauer. Economics of Development: Chapter 16 – Agriculture. (p.609)
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production crisis that was mentioned earlier. Statistics
mentioned in the Population, Food & Freedom text by Amartya Sen state
that “The number of people on earth grew by about 923 million in
1980-1990’s alone and that increase was close enough to the size
of the total population of the entire world in the Malthusian
era!13” It is understood that if this magnitude of growth were to
continue then the earth would be tremendously crowded by the end
of the twentieth century with the threat of the food production
crisis looming large (if not already prevalent!). Degradation of
the world environment, income inequality and the potential for
conflict exist today because of over-consumption and over-
population.
Population
Population explosion is one of the major factors behind the
adverse situation of agriculture and food production in today’s
world. The issue of the growth in human population around the
world affects all people through its impact on the economy and
environment. There being many solutions to this highly divisive
13 Sen, Amartya. Population, Food & Freedom. (p. 210)
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subject of the need to control population growth, economists
favor a coercive solution to this problem; like the ones that are
practically implemented in China today. While Sen talks about the
acceptability of coercion in this issue and the results of
population growth (positive or negative) with the implementing of
these coercive measures; Cobb and Daly talks about the “The
transferable birth quota plan” which “proposes that scale and
distribution of the rights to bear children be determined by the
community at large, but that these rights then be traded in the
free market14.” This brilliant theory, of an arrangement to
ensure that there are no unwanted births, works around a system
wherein 10 birth issuing rights certificates would be required
for the legitimate birth of one child. These rights are also
freely transferable by sale or gift.
Cobb and Daly say that “A further and most important effect
would be to raise the probability of a child’s being born to a
couple that wants and can afford the responsibility of nurturing
a new human being. From the point of view of the child, this is
14 Cobb & Daly. For the Common Good: Chapter 12 – Population. (p. 244)
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certainly an advantage and also, the child’s welfare is at
issue!15” The divisibility of the certificates into tenths
permits a gradual change over China’s one-child policy – the
Chinese policy implied the absence of brothers, sisters, cousins,
uncles and aunts. Also, the certificate scheme did not involve
buying and selling of children, but only the right to reproduce.
Cobb and Daly also offer other ways to control the
population growth, like preventing the birth of children to young
adolescent mothers by providing Sex Education, greater
empowerment opportunities for the women, family planning services
and Medicaid funding made accessible for abortions. They also
suggest that older people should have the right to die on their
own terms. In other words they propagate the idea of making
Euthanasia a choice. These policies offered by Daly and Cobb are
as non-coercive as possible since they advocate life of those for
as long as they need and also prevent unwanted births. But,
although Amartya Sen does advocate the idea of empowering women
through education, giving them more freedom and better job
opportunities for them to help in controlling the population
15 Cobb & Daly. For the Common Good: Chapter 12 – Population. (p. 245)
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growth; he writes about how Jeremy Bentham and John Stuart Mill
being Utilitarians looked at the idea of coercion in the light of
the “greater good”.
Development in light of a sustainable approach
Sustainable development is another aspect which is given a lot of
importance in relation with the global scenario today. With the
depletion in the earth’s resources, there is an increasing need
to figure out alternative sources of energy and methods to
preserve the resources for the future generations to come. The
idea of the Index of Sustainable Economic Welfare which covers
qualitative aspects like that of Natural Resource Depletion,
Environmental Damage etc is something that I really liked in the
Cobb & Daly book.
Moreover, Tom Sine’s article about the uncertain future of
development also stresses that “Every indicator seems to suggest
that the final two decades of the 20th century are going to be
filled with dramatic changes that will have its greatest impact
on the planetary poor.”16 The article talks about how combined
economic & population growth will seriously threaten the carrying16 Tom Sine, Evangelicals and Development, (p.81)
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capacity of our finite planet through massive pollution of air
and water, how the pressures of the environmental system will
contribute to a double digit inflation world-wide and how
technology transfers by MNC's alter the job structure in many
poor countries. It suggests that, as remedies to fight these
threats, we anticipate new areas of human deprivation and crisis
before they occur, use resources available to satisfy needs and
anticipate alternate plan of actions, draft a biblical theory of
development that will help us respond passionately & aggressively
to all the challenges and (most importantly) redefine
“Development” economically, spiritually, culturally, physically
and multi-nationally.
Quoting Tom Sine, I agree with the fact that -
“The growing conservatism of the west, the double digit
inflation and the erosion of the discretionary income among
contributors in western nations are likely to combine to
reduce the amount of money available for development. If
Christian organizations don’t design international systems
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of co-operation, we are likely to see a decade of increasing
competition for a shrinking financial resource”17.
The Biblical Perspective on development
In our attempt to find answers to this destructive development,
we need to note that the challenge of assessing the world’s
socioeconomic predicament s not a new one. It would be only
foolish to ignore the fact that the Christian church has been
wrestling with this assessment of socioeconomic life throughout
the ages. The New Testament states that in order to be a radical
Christian we need to sacrifice all our materialistic possessions
including monetary possessions for the poor and not accept
anything but the bare necessities of life. The New Testament
advices that we be content with just enough possessions to be
able to thrive. The basic assessment of economic life, according
to the church of reformation, was neither negation nor
sanctification but vocation. Moreover, the goal of economic life
was not Christian solidarity but the realization of human self-
interest.
17 Tom Sine, Evangelicals and Development, (p.87)
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It is also crucial to note that the basic difficulty lies in the
fact that the direction of modern society is in need of a
religious direction and this is clear when we observe the effect
of the biblical laws that Goudzward stresses upon in his text of
Our Gods have Failed Us. A Christian must know that such a fundamental
problem of destructive development does not originate from a
wrong societal structure but from the hearts of the men who
fashioned that structure. Talking about transformation in his
article From Development to Transformation, Bragg says that
“transformation is a process of taking what is and turning it
into what it could and should be18.” We understand from this that
transformation and development are different although interlinked
with each other. Transformation is that part of god’s continuing
action to restore all of his creation to its rightful purposes
and relationships.
Today’s ‘developed’ and modernized world needs transformation to
free itself from its materialistic condition marked by broken
relationships, violence, economic subjugation and devastation of
18 Bragg, Wayne G. ‘From Development to Transformation’ in The Church in Response toHuman Need.
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nature; whereas the ‘underdeveloped’ world needs transformation
from the subhuman condition of poverty, premature death, hunger,
exposure, oppression, disease and fear. The gospel guides that we
develop in a sustainable way wherein we provide adequate life-
sustaining goods and services to the members of the society, aim
for a qualitative trend of change, favor a kind of development
for the masses, redress unjust relationships and practices, seek
self-reliance of the masses and liberate the masses from unjust
international and national powers. In other words, the
transformation that the Bible calls us forth to do is a
transformation of both individual and social structures that
allows us to move towards increasing harmony with God, with our
fellow brothers, with the environment and with ourselves.
Personal Reaction
There is a need for individuals to wake up and take notice of
that fact that the time to act is now and unless we cease this
moment for all its worth, we could find ourselves stuck
perennially in a state of ruin. "What we are doing to the forests
of the world is but a mirror reflection of what we are doing to
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ourselves and to one another” said Mahatma Gandhi; the Father of
my Nation – India; emphasizing on the fact that we need to watch
and reflect what repercussions our actions (even if they are in
the name of “development”) have on the environment around us. The
following section on the way of life of the Amish community
residing in Lancaster, PA breathe the kind of life what we would
see in the light of “developed” – having real wealth in terms of
religion, faith, family and just enough wealth to thrive.
Development the right way – the Amish way of life
The families, farmers and craftsmen of the Amish community follow
a deeply religious, family-centered lifestyle that has maintained
this tradition through a simple way of life that has not adopted
the mainstream culture, yet has adapted in many necessary ways
throughout the last 300 years. Forgoing "outside world" luxuries,
Amish who live in small towns and farmlands present a fascinating
and authentic horse-and-buggy contrast to the hustle and bustle
of the 21st century. There is no single governing body for the
entire Old Order Amish population; rather, each church district
decides for itself what it will and will not accept. However, all
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districts base their regulations on a literal interpretation of
the Bible and an unwritten set of rules called the ‘Ordnung’ and
the population as a whole stresses humility, family, community
and separation from the modern world.
Tradition and culture
The Amish believe that community harmony is threatened by secular
values such as individualism and pride, which permeate the modern
world. Humility is the hallmark of Amish beliefs. Mild and modest
personalities are esteemed, while patience and yielding to others
are considered the marks of maturity. Obedience, conformity to
goals and community activities are encouraged. Thus, the Amish
curb interaction with outsiders and insulate themselves from
modern technology and mass media. They also prohibit habits that
feed individualism and greed, as displayed through their plain
dress style and prohibition of personal photographs. Personal
Bible study and devotions are discouraged because individual
interpretations may challenge traditional doctrine. To preserve
the Amish identity and maintain spiritual harmony, members are
encouraged to surrender their personal aspirations for the sake
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of community purity. These ideals are maintained by keeping all
work, play, worship, commerce and friendship within the Amish
orbit.
Population
The family is the most important social unit among the Amish.
Those with seven to ten children are not uncommon. This high
birth rate feeds the growth of the community of Amish, as does
the fact that four out of five children choose to become baptized
and remain in the church. Jobs, friendships and business
opportunities provide incentives to stay. Health care practices
vary considerably across Amish communities and from family to
family.
Amish and Technology
Although the Amish resist cultural influences, they are willing
to strike compromises with the modern world, tapping its benefits
while still preserving the Amish identity. They are willing to
use modern technology to live, work and communicate - as long as
they do not disrupt family and community stability. According to
the Amish, "progress" is not assumed to mean "something better in
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terms of wealth." Hence, the Amish do not fully accept the modern
conveniences that their non-Amish neighbors take for granted. It
is acceptable within Amish communities to use some limited forms
of electricity (such as battery power for the lights on their
buggies), and some machinery (such as tractors without rubber
tires). However, most elements from mainstream society - such as
electricity generated by public power lines, TVs, computers and
modern tractors - are considered to be tempting elements from an
"outside world" that could lead the Amish away from their close-
knit community or weaken the family structure. But they do use
telephones for their means of communication for business
purposes. The technology should not be an intrusion into the
home, but rather serve the social purposes and goals of the
group. With that in mind, the Amish often re-purpose the
technology, in a sense, to align with their community beliefs.
Education
The Amish build and maintain their own church-funded, one-room
schoolhouses, where children study a curriculum that emphasizes
basic skills - reading, writing, spelling, geography and
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practical math, plus both English and German. Each school houses
an average of 30 students, which are within walking distance of
their homes. Teachers are typically single Amish women who are
chosen by a local school board of parents for their academic
ability and commitment to religious values and Amish views.
Formal Amish education only lasts through the eighth grade. There
is no option to attend modern public school, nor a higher
education institution. The Amish believe that either of these
options would pull children away from their community's families
and church traditions, threatening their values with
individualism, competition, rational thinking and secularism.
Labor and Work
On an Amish farm, an individual's work and responsibilities
directly affect the family. Each person is less an individual and
more a member of the family, with responsibilities that
contribute. A "paycheck" comes daily in the form of food,
clothing, shelter and affection. Men usually work on the farm,
with women helping from time to time, if needed. Men are also
mainly in charge of financial matters, while women do the
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cooking, washing, cleaning, etc. Men and women accept these roles
as given to them by God, with the mindset being that women are
not inferior to men, but subordinate.
Industry
A large number of the Amish earn a living in non-farming
occupations. In the transition from ploughing to profits, the
Amish community has been forced into business in order to
preserve their horse farming. Amish shops sell everything from
quilts to gazebos dot the countryside. They produce an amazing
variety of products and services. Woodworking trades comprise the
largest cluster of enterprises - furniture building, cabinet
making and storage barn and gazebo construction, as well as more
general woodworking activity. Smaller wood products, such as
doghouses, birdhouses, cupolas, picnic tables, and lawn furniture
also flow from Amish shops.
Conclusion
The case study on the Amish community has helped us practically
understand as to how they live their lives developing without any
measure of the growth, gaining education in true meaning and
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preserving family values and unity. Although, many would argue
that the Amish way of life is applicable to only small
communities, we would never know if it isn’t applicable unless we
tried to implement their practices in our daily lives. We need to
find that common ground wherein we can find the right balance
between technology and preserving our values in life.
In conclusion I would like to say that; with personal experience
and coming from a Developing economy; I regard the value and
morals associated with sustainability more in comparison to the
actual phenomenon of Development that is taking place in my
country. It pains me to see that with the advancing in technology
and lifestyle of the people there is an increasing deterioration
in the family & moral values and social & environmental
responsibility that the people used to have. These drastic
changes set my mind thinking of whether these are the changes
that actually mirror what development is all about. As per my
perspective, this is the consensus which we need to reach to
determine in the phenomenon of development. Moreover, no matter
whether the idea of how population growth needs to be controlled
is a controversial issue (with respect to the idea of abortion),
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it nevertheless needs to be put into effect with immediacy.
Continued growth at the world’s rate of increase 1.2 percent
would bring the population to over 12 billion by 2050 and 24
billion by 2100. Hence, there is no time better like the present
to act and help curtail population explosion. This is the first
step which we can take as a community to save ourselves from the
prophesized food production crisis.
References
Amish at Lancaster County. Retrieved fromhttp://www.padutchcountry.com/towns-and-heritage/amish-country/amish-education-and-work.asp
Arndt, H.W, Economic Development: A Semantic History. EconomicDevelopment and Cultural Change 29(3): 457-466.
Bragg, Wayne G. ‘From Development to Transformation’ in The Churchin Response to Human Need.
Bunch, Roland. Two Ears of Corn : Chapter 7- Limit the Technology. Two Earsof Corn. Oklahoma City, Oklahoma: World Neighbors. Pp. 82-96.
Daly, Herman. E., & Cobb, John. For the Common Good,Massachusetts: Boston.
Esteva, Gustavo. (1993.) Development. The Development Dictionary- AGuide to Knowledge as Power. Wolfgang Sachs, editor. London: ZedBooks, Ltd. Pp. 6-25.
Goudzwaard, Bob. ‘Our Gods have Failed Us’ in Aid for theOverdeveloped West – chapter 2 (pp. 9-21)
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Peet, Richard. & Hartwick, Elaine. Theories of Development.
Perkins, Dwight H., Radelet, Steven. & Lindauer, David A.Economics of Development, New York: NY.
Sen, Amartya. Population, Food and Freedom. Development as Freedom.New York: Anchor Books. Pp. 204-226.
Sine, Tom. Evangelicals and Development. Evangelicals and DevelopmentTowards a Theology of Social Change. Ronald J. Sider, Editor.Philadelphia: Westminster Press. Pp 71-86.
United Nations, The UN Development Decade: Proposals for Action, New York:UN