Concept of Development

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 existsdefinition of development exists

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

staticstatic b. Development as a process or course b. Development as a process or course

of change- dynamicof change- dynamic

Meaning of Development-Meaning of Development-TodaroTodaro

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

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

Todaro’s Three Objectives of Todaro’s Three Objectives of DevelopmentDevelopment 1. Raising peoples’ living levels, i.e. incomes 1. Raising peoples’ living levels, i.e. incomes

and consumption, levels of food, medical and consumption, levels of food, medical services, education through relevant growth services, education through relevant growth processesprocesses

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

3. Increasing peoples’ freedom to choose by 3. Increasing peoples’ freedom to choose by enlarging the range of their choice variables, enlarging the range of their choice variables, e.g. varieties of goods and servicese.g. varieties of goods 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 growth in people is emphasized-measures of growth in GNP. Note here the persistence of a GNP. Note here the persistence of a dual dual economyeconomy where the where the export sectorexport sector contains contains small number of workers but draws small number of workers but draws technology as opposed to technology as opposed to traditional sectortraditional sector where most people work and is dominated by where most people work and is dominated by inefficient technologyinefficient technology

Alternative Interpretations of Alternative Interpretations of DevelopmentDevelopment Development as Modernization-Development as Modernization-

emphasizes process of social change which emphasizes process of social change which is required to produce economic is 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 seeking and values in individuals; profit seeking rather than subsistence and self sufficiencyrather than subsistence and self sufficiency

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

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 three issues:Interest in social justice which has raised three issues: 1.Nature1.Nature of goods and services provided by of goods and services provided by

governmentsgovernments 2. Matter of access of these public goods to different 2. Matter of access of these public goods to different

social classessocial classes 3. How burden of development can be shared among 3. How burden of development can be shared among

these classesthese classes Target groups include small farmers, landless, urban Target groups include small farmers, landless, urban

under-employed and unemployedunder-employed and unemployed

Marxist View of DevelopmentMarxist View of Development Emphasizes Emphasizes Mode of ProductionMode of Production - -

elements and activities necessary to elements and activities necessary to produce and reproduce real, material lifeproduce and reproduce real, material 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 the accumulated and appropriated by the employer-result is often class conflict in employer-result is often class conflict in capitalist societiescapitalist societies

Neocolonial Dependence ModelNeocolonial Dependence Model Outgrowth of Marxist thinking-Dos SantosOutgrowth of Marxist thinking-Dos Santos Existence of underdevelopment due to historical evolution of Existence of underdevelopment due to historical evolution of

an unequal international capitalist system of rich country-poor an unequal international capitalist system of rich country-poor country relations country relations

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

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

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

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

Sustainable DevelopmentSustainable Development Defined as development that is likely to achieve lasting Defined as development that is likely to achieve lasting

satisfaction of human needs and improvement of the quality satisfaction of human needs and improvement of the quality of life and encompasses:of life and encompasses:

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

Idea of self-reliant development with natural resource Idea of self-reliant development with natural resource constraintsconstraints

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

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

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

Theories of DevelopmentTheories of Development 1940-50s- 1940-50s- Keynesian growth theoryKeynesian growth theory - -

process of capital of formation is determined process of capital of formation is determined by savings and investmentby savings and investment

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

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

Theories of DevelopmentTheories of Development Modernization TheoryModernization Theory -as noted previously -as noted previously

this theory suggests that economic dimension this theory suggests that economic dimension alone is insufficient and adds theories on alone is insufficient and adds theories on institutional and social changeinstitutional and social change

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

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

Backward internal structures-rather than Backward internal structures-rather than external factors-cause underdevelopmentexternal factors-cause underdevelopment

Theories of DevelopmentTheories of Development NeoLiberal Development Theory-NeoLiberal Development Theory- grew in grew in

the 1970s and designed to counteract impact the 1970s and designed to counteract impact of Keynesianism of Keynesianism

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

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

Gradual industrialization with ‘trickle down’ of Gradual industrialization with ‘trickle down’ of benefits to all social classesbenefits to all social 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 scale Context of development is constantly changing in scale and timeand time

Accommodates geographical and historical diversityAccommodates geographical and historical diversity Theory of little use to practitioners of developmentTheory of little use to practitioners of development Stresses local diversity, human creativity, process of Stresses local diversity, human creativity, process of

social change through pragmatism, flexibility and contextsocial change through pragmatism, flexibility and context Not extent of state intervention but comparative Not extent of state intervention but comparative

advantages of public and private sectors and their advantages of public and private sectors and their complementaritycomplementarity

Popular Development and Popular Development and EnvironmentEnvironment Recognizes high “opportunity costs” associated Recognizes high “opportunity costs” associated

with irreversible environmental damagewith irreversible environmental damage Dealing with environmental problems requires Dealing with environmental problems requires

solutions sensitive to local social and ecological solutions sensitive to local social and ecological conditionsconditions

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

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

Growing importance of “decentralization” of Growing importance of “decentralization” of decision-making and authority from center to decision-making and authority from center to periphery 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, inequality and Examine sources of empowerment, inequality and

discriminationdiscrimination Need to devise more people centered approaches Need to devise more people centered approaches

which stress empowerment and participationwhich stress empowerment and participation Empowerment as participatory development Empowerment as participatory development

seeks to engender self-help and self-reliance but seeks to engender self-help and self-reliance but also effective collective decision-makingalso effective collective decision-making

What causes What causes underdevelopment?underdevelopment?

Very easy to focus on characteristics of Very easy to focus on characteristics of developmentdevelopment

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

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

Some Common ‘Theories”Some Common ‘Theories”

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

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

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 situation Able to adapt to spatial-physical situation and acquire a maritime prowessand acquire a maritime prowess

Early development (Meiji restoration) of Early development (Meiji restoration) of transport and banking systemstransport 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 situations- Instability and other adverse internal situations- political factorspolitical factors

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

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

Vicious Circles- Gunnar MyrdalVicious Circles- Gunnar Myrdal Complex web of interlocking vicious circles Complex web of interlocking vicious circles

each of which constitutes a chain of cause and each of which constitutes a chain of cause and effect relationships where one unfavorable effect relationships where one unfavorable circumstance leads to another and produces circumstance leads to another and produces downward spiraldownward spiral

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

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

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

Remedy for Vicious CircleRemedy for Vicious Circle

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

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

Foreign aid would allow countries to Foreign aid would allow countries to increase low levels of productivityincrease low levels of productivity

Another Common ExplanationAnother Common Explanation Colonialism As ScapegoatColonialism As Scapegoat Attacking vicious circle proponents-do not Attacking vicious circle proponents-do not

explain how these magic circles come into explain how these magic circles come into existenceexistence

Need to view development in historical Need to view development in historical perspective as sequence of dynamic perspective as sequence of dynamic events-explore rootsevents-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 sufficient mode of Traditional way of life and self sufficient mode of

production have been destroyedproduction have been destroyed Forced to pay taxes and conscripted labor Forced to pay taxes and conscripted labor

practicespractices Social differentiation increased- disintegrating Social differentiation increased- disintegrating

forceforce Fatal effects on secondary (manufacturing) and Fatal effects on secondary (manufacturing) and

tertiary (service) sectors- import of cheap goods tertiary (service) sectors- import of cheap goods forced indigenous artisans out of workforced indigenous artisans out of work

Discouraged modern industrializationDiscouraged modern industrialization

Colonialism as Scapegoat cont’dColonialism as Scapegoat cont’d Thus what occurred in these situations was Thus what occurred in these situations was

dependent not autonomous developmentdependent not autonomous development Colonial powers extracted wealth for home Colonial powers extracted wealth for home

country-Netherlands, France, Great Britaincountry-Netherlands, France, Great Britain International division of labor (IDL) and International division of labor (IDL) and

western dominated trading structure was western dominated trading structure was created to take advantage of colonial created to take advantage of colonial authorityauthority

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

What to Do With Development What to Do With Development Theory ?Theory ? Several theories have been advanced have Several theories have been advanced have

been criticized and some also discredited—to been criticized and some also discredited—to be replaced by other theoriesbe replaced by other theories

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

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

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

Underdevelopment must be seen as a product Underdevelopment must be seen as a product of an array of complex and continuously of an array of complex and continuously changing interactions between:changing interactions 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 vary Multitude of obstacles to development vary

with place and timewith place and time Critical to remember that the above theoretical Critical to remember that the above theoretical

ideas aid us in asking pertinent questionsideas aid us in asking pertinent questions