The Concept of The Concept of DevelopmentDevelopment

Definitions, Theories and Definitions, Theories and Contemporary PerspectivesContemporary Perspectives

Definitions of DevelopmentDefinitions of Development

For almost every writer a different For almost every writer a different definition of development exists definition of development exists

Important to first distinguish Important to first distinguish between:between: a. Development as a state or a. Development as a state or condition-staticcondition-static

b. Development as a process or b. Development as a process or course of change- dynamiccourse of change- dynamic

Meaning of Development-TodaroMeaning of Development-Todaro

Development is not purely an Development is not purely an economic phenomenon but rather a economic phenomenon but rather a multi-dimensional process involving multi-dimensional process involving reorganization and reorientation of reorganization and reorientation of entire economic entire economic ANDAND social system social system

Development is process of improving Development is process of improving the quality of all human lives with the quality of all human lives with three equally important aspects. three equally important aspects. These are:These are:

Todaro’s Three Objectives of Todaro’s Three Objectives of DevelopmentDevelopment 1. Raising peoples’ living levels, i.e. 1. Raising peoples’ living levels, i.e. incomes and consumption, levels of incomes and consumption, levels of food, medical services, education food, medical services, education through relevant growth processesthrough relevant growth processes

2. Creating conditions conducive to the 2. Creating conditions conducive to the growth of peoples’ growth of peoples’ self-esteemself-esteem through through the establishment of social, political the establishment of social, political and economic systems and institutions and economic systems and institutions which promote human dignity and respectwhich promote human dignity and respect

3. Increasing peoples’ freedom to 3. Increasing peoples’ freedom to choose by enlarging the range of their choose by enlarging the range of their choice variables, e.g. varieties of choice variables, e.g. varieties of goods and servicesgoods and services

Alternative Interpretations of Alternative Interpretations of Development (Mabogunje)Development (Mabogunje)

Development as Economic Growth-Development as Economic Growth- too too often commodity output as opposed to often commodity output as opposed to people is emphasized-measures of people is emphasized-measures of growth in GNP. Note here the growth in GNP. Note here the persistence of a persistence of a dual economydual economy where where the the export sectorexport sector contains small contains small number of workers but draws number of workers but draws technology as opposed to technology as opposed to traditional traditional sectorsector where most people work and is where most people work and is dominated by inefficient technologydominated by inefficient technology

Alternative Interpretations of Alternative Interpretations of DevelopmentDevelopment Development as Modernization-Development as Modernization- emphasizes emphasizes process of social change which is process of social change which is required to produce economic required to produce economic advancement; examines changes in social, advancement; examines changes in social, psychological and political processes;psychological and political processes;

How to develop wealth oriented behavior How to develop wealth oriented behavior and values in individuals; profit and values in individuals; profit seeking rather than subsistence and self seeking rather than subsistence and self sufficiencysufficiency

Shift from commodity to human approach Shift from commodity to human approach with investment in education and skill with investment in education and skill trainingtraining

Alternative Interpretations of Alternative Interpretations of DevelopmentDevelopment Development asDevelopment as Distributive Justice-Distributive Justice- view development as improving basic view development as improving basic needsneeds

Interest in social justice which has Interest in social justice which has raised three issues:raised three issues:

1.Nature of goods and services 1.Nature of goods and services provided by governmentsprovided by governments

2. Matter of access of these public 2. Matter of access of these public goods to different social classesgoods to different social classes

3. How burden of development can be 3. How burden of development can be shared among these classesshared among these classes

Target groups include small farmers, Target groups include small farmers, landless, urban under-employed and landless, urban under-employed and unemployedunemployed

Alternative Interpretations of Alternative Interpretations of DevelopmentDevelopment Development asDevelopment as Distributive Justice-Distributive Justice- view view development as improving basic needsdevelopment as improving basic needs

Interest in social justice which has raised Interest in social justice which has raised three issues:three issues:

1.Nature of goods and services provided by 1.Nature of goods and services provided by governmentsgovernments

2. Matter of access of these public goods to 2. Matter of access of these public goods to different social classesdifferent social classes

3. How burden of development can be shared 3. How burden of development can be shared among these classesamong these classes

Target groups include small farmers, Target groups include small farmers, landless, urban under-employed and landless, urban under-employed and unemployedunemployed

Marxist View of DevelopmentMarxist View of Development Emphasizes Emphasizes Mode of ProductionMode of Production - - elements and activities necessary elements and activities necessary to produce and reproduce real, to produce and reproduce real, material lifematerial life

Capitalist (market economy) mode Capitalist (market economy) mode depends on wage labor whose labor depends on wage labor whose labor power produces a power produces a surplus surplus which is which is accumulated and appropriated by accumulated and appropriated by the employer-result is often class the employer-result is often class conflict in capitalist societiesconflict in capitalist societies

Neocolonial Dependence ModelNeocolonial Dependence Model Outgrowth of Marxist thinking-Dos SantosOutgrowth of Marxist thinking-Dos Santos Existence of underdevelopment due to historical Existence of underdevelopment due to historical evolution of an unequal international capitalist evolution of an unequal international capitalist system of rich country-poor country relations system of rich country-poor country relations

Sets up center (developed countries) versus Sets up center (developed countries) versus periphery (developing countries) contrastperiphery (developing countries) contrast

Attempts to become self-reliant and progressive Attempts to become self-reliant and progressive are surpressed by this relationshipare surpressed by this relationship

Moreover certain elites in the developing world Moreover certain elites in the developing world (e.g landlords, entrepreneurs, merchants) enjoy (e.g landlords, entrepreneurs, merchants) enjoy high incomes, social status and political power high incomes, social status and political power and thus perpetuate inequality and conformity and and thus perpetuate inequality and conformity and are rewardedare rewarded

They serve international power groups such as They serve international power groups such as multi-national firms, assistance agencies (World multi-national firms, assistance agencies (World Bank) and other agents Bank) and other agents

Sustainable DevelopmentSustainable Development Defined as development that is likely to achieve Defined as development that is likely to achieve lasting satisfaction of human needs and lasting satisfaction of human needs and improvement of the quality of life and improvement of the quality of life and encompasses:encompasses:

Help for the very poorest who are left with no Help for the very poorest who are left with no option but to destroy their environment to surviveoption but to destroy their environment to survive

Idea of self-reliant development with natural Idea of self-reliant development with natural resource constraintsresource constraints

Cost effective development using different Cost effective development using different economic criteria to the traditional –i.e. economic criteria to the traditional –i.e. development should not degrade environmentdevelopment should not degrade environment

Important issues of health control, appropriate Important issues of health control, appropriate technologies, food self-reliance, clean water and technologies, food self-reliance, clean water and shelter for allshelter for all

People centered activities are necessary- human People centered activities are necessary- human beings are the resources in the conceptbeings are the resources in the concept

Theories of DevelopmentTheories of Development 1940-50s- 1940-50s- Keynesian growth theoryKeynesian growth theory - -process of capital of formation is process of capital of formation is determined by savings and investmentdetermined by savings and investment

Domestic savings are chanelled to Domestic savings are chanelled to productive investments such as productive investments such as manufacturing which result –usually-manufacturing which result –usually-in high productivityin high productivity

Growth is market driven as income Growth is market driven as income levels rise, savings rises and frees levels rise, savings rises and frees capital for alternative investmentcapital for alternative investment

Theories of DevelopmentTheories of Development Modernization TheoryModernization Theory -as noted -as noted previously this theory suggests that previously this theory suggests that economic dimension alone is economic dimension alone is insufficient and adds theories on insufficient and adds theories on institutional and social changeinstitutional and social change

Incorporates non-economic elements such Incorporates non-economic elements such as social practices, beliefs, values as social practices, beliefs, values and customs (McClelland, and customs (McClelland, Achieving SocietyAchieving Society) )

Diffusion and speed of change is Diffusion and speed of change is critical as is removal of various critical as is removal of various cultural and social barrierscultural and social barriers

Backward internal structures-rather Backward internal structures-rather than external factors-cause than external factors-cause underdevelopmentunderdevelopment

Theories of DevelopmentTheories of Development NeoLiberal Development Theory-NeoLiberal Development Theory- grew grew in the 1970s and designed to in the 1970s and designed to counteract impact of Keynesianism counteract impact of Keynesianism

New emphasis on supply side factors in New emphasis on supply side factors in development- private initiatives and development- private initiatives and market led growthmarket led growth

Move away from demand stimulation Move away from demand stimulation (interest rate manipulation), import (interest rate manipulation), import substitution, state intervention and substitution, state intervention and centralized planningcentralized planning

Gradual industrialization with Gradual industrialization with ‘trickle down’ of benefits to all ‘trickle down’ of benefits to all social classessocial classes

Theories of DevelopmentTheories of Development Popular Development- Popular Development- what is it?what is it? Avoids ‘grand theories’ and emphasizes solutions Avoids ‘grand theories’ and emphasizes solutions viewed in context of development which is part of viewed in context of development which is part of historical processhistorical process

Context of development is constantly changing in Context of development is constantly changing in scale and timescale and time

Accommodates geographical and historical Accommodates geographical and historical diversitydiversity

Theory of little use to practitioners of Theory of little use to practitioners of developmentdevelopment

Stresses local diversity, human creativity, Stresses local diversity, human creativity, process of social change through pragmatism, process of social change through pragmatism, flexibility and contextflexibility and context

Not extent of state intervention but comparative Not extent of state intervention but comparative advantages of public and private sectors and advantages of public and private sectors and their complementaritytheir complementarity

Popular Development and Popular Development and EnvironmentEnvironment Recognizes high “opportunity costs” Recognizes high “opportunity costs” associated with irreversible environmental associated with irreversible environmental damagedamage

Dealing with environmental problems requires Dealing with environmental problems requires solutions sensitive to local social and solutions sensitive to local social and ecological conditionsecological conditions

Society and nature relations are affected by Society and nature relations are affected by variations in class, gender and ethnicityvariations in class, gender and ethnicity

““Reproductive squeeze” forces peasants to Reproductive squeeze” forces peasants to intensify production in fragile environmentsintensify production in fragile environments

Popular Development, Space and Popular Development, Space and PlacePlace

Bottom up approaches (as opposed to Bottom up approaches (as opposed to top-down) to peoples’ participation top-down) to peoples’ participation are important in this vieware important in this view

How are various social groups and How are various social groups and classes affected by rural-urban, core-classes affected by rural-urban, core-periphery and other spatial periphery and other spatial interactions?interactions?

Growing importance of Growing importance of “decentralization” of decision-making “decentralization” of decision-making and authority from center to periphery and authority from center to periphery

Popular Development and PowerPopular Development and Power How does the power structure affect How does the power structure affect development?development?

Examine sources of empowerment, Examine sources of empowerment, inequality and discriminationinequality and discrimination

Need to devise more people centered Need to devise more people centered approaches which stress empowerment and approaches which stress empowerment and participationparticipation

Empowerment as participatory development Empowerment as participatory development seeks to engender self-help and self-seeks to engender self-help and self-reliance but also effective collective reliance but also effective collective decision-makingdecision-making

What causes underdevelopment?What causes underdevelopment?

Very easy to focus on characteristics Very easy to focus on characteristics of developmentof development

For example we know that For example we know that underdevelopment is usually underdevelopment is usually characterized by: low per capita characterized by: low per capita incomes, low literacy and educational incomes, low literacy and educational attainment, lack of basic services- attainment, lack of basic services- water and powerwater and power

But how do we EXPLAIN But how do we EXPLAIN underdevelopment?underdevelopment?

Some Common ‘Theories”Some Common ‘Theories”

Old view that absence of development Old view that absence of development caused by certain physical caused by certain physical environments, particular cultural environments, particular cultural traditions and value systems-traditions and value systems-environmental and cultural determinismenvironmental and cultural determinism

Lack of natural resources certainly Lack of natural resources certainly impediment to development but not impediment to development but not impossible- example of Japanimpossible- example of Japan

Why has Japan succeeded? Why has Japan succeeded?

Reasons for Japanese SuccessReasons for Japanese Success

Strong cooperation between government Strong cooperation between government and businessand business

Able to adapt to spatial-physical Able to adapt to spatial-physical situation and acquire a maritime situation and acquire a maritime prowessprowess

Early development (Meiji restoration) Early development (Meiji restoration) of transport and banking systemsof transport and banking systems

Highly literate populationHighly literate population Niche development- technology drivenNiche development- technology driven

Other Common Explanations of Other Common Explanations of UnderdevelopmentUnderdevelopment

Instability and other adverse internal Instability and other adverse internal situations- political factorssituations- political factors

Some truth to this as extended periods Some truth to this as extended periods of turbulence are not conducive to of turbulence are not conducive to development- central African nations development- central African nations with tribal rivalries and ethnic with tribal rivalries and ethnic cleansingcleansing

Poor physical environment- lack of Poor physical environment- lack of rainfall, poor soils also may pose rainfall, poor soils also may pose barriers to development barriers to development

Vicious Circles- Gunnar MyrdalVicious Circles- Gunnar Myrdal Complex web of interlocking vicious Complex web of interlocking vicious circles each of which constitutes a circles each of which constitutes a chain of cause and effect chain of cause and effect relationships where one unfavorable relationships where one unfavorable circumstance leads to another and circumstance leads to another and produces downward spiralproduces downward spiral

High Birth Rate> Large Families>Low High Birth Rate> Large Families>Low PCI> Poverty> Low Output Per Worker>PCI> Poverty> Low Output Per Worker>

Low PCI> Low Productivity> Poor Low PCI> Low Productivity> Poor Health>Inadequate HousingHealth>Inadequate Housing

Remedy > Downward spiral not Remedy > Downward spiral not reversible without massive aidreversible without massive aid

Remedy for Vicious CircleRemedy for Vicious Circle

Aid would stimulate growth in Aid would stimulate growth in modern sector and reduce size of modern sector and reduce size of ‘informal’ or traditional sector‘informal’ or traditional sector

Thus eliminate dualism and the Thus eliminate dualism and the major causes of unequal major causes of unequal distribution of wealthdistribution of wealth

Foreign aid would allow countries Foreign aid would allow countries to increase low levels of to increase low levels of productivityproductivity

Another Common ExplanationAnother Common Explanation Colonialism As ScapegoatColonialism As Scapegoat Attacking vicious circle Attacking vicious circle proponents-do not explain how these proponents-do not explain how these magic circles come into existencemagic circles come into existence

Need to view development in Need to view development in historical perspective as sequence historical perspective as sequence of dynamic events-explore rootsof dynamic events-explore roots

Colonialism viewed as the cause of Colonialism viewed as the cause of disintegration and decline- how?disintegration and decline- how?

Colonialism as ScapegoatColonialism as Scapegoat Indigenous population exploitedIndigenous population exploited Traditional way of life and self Traditional way of life and self sufficient mode of production have been sufficient mode of production have been destroyeddestroyed

Forced to pay taxes and conscripted labor Forced to pay taxes and conscripted labor practicespractices

Social differentiation increased- Social differentiation increased- disintegrating forcedisintegrating force

Fatal effects on secondary (manufacturing) Fatal effects on secondary (manufacturing) and tertiary (service) sectors- import of and tertiary (service) sectors- import of cheap goods forced indigenous artisans out cheap goods forced indigenous artisans out of workof work

Discouraged modern industrializationDiscouraged modern industrialization

Colonialism as Scapegoat cont’dColonialism as Scapegoat cont’d Thus what occurred in these situations Thus what occurred in these situations was dependent not autonomous was dependent not autonomous developmentdevelopment

Colonial powers extracted wealth for Colonial powers extracted wealth for home country-Netherlands, France, Great home country-Netherlands, France, Great BritainBritain

International division of labor (IDL) International division of labor (IDL) and western dominated trading structure and western dominated trading structure was created to take advantage of was created to take advantage of colonial authoritycolonial authority

IDL=allocation of tasks among laborers IDL=allocation of tasks among laborers such that each one engages in tasks such that each one engages in tasks that he performs most efficiently and that he performs most efficiently and this promotes worker specialization and this promotes worker specialization and productivityproductivity

What to Do With Development What to Do With Development Theory ?Theory ? Several theories have been advanced Several theories have been advanced have been criticized and some also have been criticized and some also discredited—to be replaced by other discredited—to be replaced by other theoriestheories

Third World is very heterogeneous-Third World is very heterogeneous-dissimilar in terms of population, dissimilar in terms of population, resources, climates, culture , resources, climates, culture , economic structure and locationeconomic structure and location

Unlikely that one theory will be Unlikely that one theory will be powerful enough to explain powerful enough to explain underdevelopment everywhere underdevelopment everywhere

What to Say About Development What to Say About Development Theory ?Theory ?

Underdevelopment must be seen as a Underdevelopment must be seen as a product of an array of complex and product of an array of complex and continuously changing interactions continuously changing interactions between:between:

1. Past and Present1. Past and Present 2. Natural and Human Environments2. Natural and Human Environments 3. External and Internal Conditions 3. External and Internal Conditions Multitude of obstacles to development Multitude of obstacles to development vary with place and timevary with place and time

Critical to remember that the above Critical to remember that the above theoretical ideas aid us in asking theoretical ideas aid us in asking pertinent questionspertinent questions