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Prof. Ginandjar Kartasasmita Program Doktor Bidang Ilmu Sosial Universitas Pasundan Bandung 2011
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Development Administration chapter 5 (UNPAS 2012)

Nov 07, 2014

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Page 1: Development Administration chapter 5 (UNPAS 2012)

Prof. Ginandjar Kartasasmita

Program Doktor Bidang Ilmu SosialUniversitas Pasundan

Bandung2011

Page 2: Development Administration chapter 5 (UNPAS 2012)

MORE THAN 75 PERCENT OF THE HUMAN RACE LIVEIN THE DEVELOPING COUNTRIES. ABOUT 35 PERCENTLIVE IN TWO DEVELOPING COUNTRIES: CHINA ANDINDIA.

BY THE END OF WORLD WAR II, FEWER THAN FIFTYCOUNTRIES HAD CLAIMED INDEPENDENCE. THE RESTOF THE WORLD WAS RULED BY COLONIAL STATESWHO ENDEAVOURED TO PROLONG AN OUTMODEDIMPERIALIST ORDER.

TODAY, MORE THAN 180 COUNTRIES CLAIMINDEPENDENCE AND MEMBERSHIP IN THE UNITEDNATIONS.

MORE THAN 75 PERCENT OF THE HUMAN RACE LIVEIN THE DEVELOPING COUNTRIES. ABOUT 35 PERCENTLIVE IN TWO DEVELOPING COUNTRIES: CHINA ANDINDIA.

BY THE END OF WORLD WAR II, FEWER THAN FIFTYCOUNTRIES HAD CLAIMED INDEPENDENCE. THE RESTOF THE WORLD WAS RULED BY COLONIAL STATESWHO ENDEAVOURED TO PROLONG AN OUTMODEDIMPERIALIST ORDER.

TODAY, MORE THAN 180 COUNTRIES CLAIMINDEPENDENCE AND MEMBERSHIP IN THE UNITEDNATIONS.

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THE DEMISE OF COLONIALISM INSTIGATED THEGREATEST STRUCTURAL ADJUSTMENTS OFGOVERNMENTS IN MODERN HISTORY.

ONE AFTER ANOTHER, AS NATIONS DECLAREDTHEMSELVES FREE OF IMPERIAL HEGEMONY, THEY ALSOPROCLAIMED VARIOUS PLANS FOR COMPREHENSIVESOCIETAL CHANGE, EVEN WHEN THEIR LEADERS WEREUNCERTAIN OF THE TYPE OF POLITICAL, ECONOMIC,AND ORGANIZATIONAL STRUCTURES THEY WEREFORGING FOR THEIR SOCIETIES.

THE DEMISE OF COLONIALISM INSTIGATED THEGREATEST STRUCTURAL ADJUSTMENTS OFGOVERNMENTS IN MODERN HISTORY.

ONE AFTER ANOTHER, AS NATIONS DECLAREDTHEMSELVES FREE OF IMPERIAL HEGEMONY, THEY ALSOPROCLAIMED VARIOUS PLANS FOR COMPREHENSIVESOCIETAL CHANGE, EVEN WHEN THEIR LEADERS WEREUNCERTAIN OF THE TYPE OF POLITICAL, ECONOMIC,AND ORGANIZATIONAL STRUCTURES THEY WEREFORGING FOR THEIR SOCIETIES.

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INDEPENDENCE REQUIRED SUBSTANTIVE ADJUSTMENTSIN ALL ASPECTS OF LIFE. IN A SPIRAL, RISINGEXPECTATIONS FED ESCALATING DEMANDS BY CITIZENSFOR IMPROVED STANDARDS OF LIVING. THESEDEMANDS COULD NOT BE MET WITHOUTCONSIDERABLE INVESTMENTS IN NATIONALDEVELOPMENT.

THE STATE WAS THE VEHICLE OF CHOICE FOR INITIATINGAND COORDINATING ALL ELEMENTS OF THECOMPREHENSIVE DEVELOPMENT PLANS. THESE PLANSWERE MOSTLY CONCEIVED AS BLUEPRINTS TO GUIDEACTIVITIES AND MAINTAIN FOCUS AS THE STATEIMPLEMENTED DEVELOPMENTAL POLICIES.

INDEPENDENCE REQUIRED SUBSTANTIVE ADJUSTMENTSIN ALL ASPECTS OF LIFE. IN A SPIRAL, RISINGEXPECTATIONS FED ESCALATING DEMANDS BY CITIZENSFOR IMPROVED STANDARDS OF LIVING. THESEDEMANDS COULD NOT BE MET WITHOUTCONSIDERABLE INVESTMENTS IN NATIONALDEVELOPMENT.

THE STATE WAS THE VEHICLE OF CHOICE FOR INITIATINGAND COORDINATING ALL ELEMENTS OF THECOMPREHENSIVE DEVELOPMENT PLANS. THESE PLANSWERE MOSTLY CONCEIVED AS BLUEPRINTS TO GUIDEACTIVITIES AND MAINTAIN FOCUS AS THE STATEIMPLEMENTED DEVELOPMENTAL POLICIES.

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THERE IS NO CONSENSUS ABOUT THE MEANING OFDEVELOPMENT. IT IS A CONTESTED CONCEPT AND THEREHAVE BEEN A NUMBER OF DEBATES TO CAPTURE ITSMEANING.

UNTIL THE END OF THE 1960s THE MODERNIZATIONPERSPECTIVE ON DEVELOPMENT HELD SWAY. DEVELOPMENTWAS SEEN AS AN EVOLUTIONARY PROCESS IN WHICHCOUNTRIES PROGRESSED THROUGH AN IDENTIFIED SERIESOF STAGES TO BECOME MODERN.

THE FUTURE FOR THE DEVELOPING COUNTRIES WASALREADY IN EXISTENCE AND COULD BE SEEN IN THE FORMOF THE ADVANCED WESTERN SOCIETIES, MOST ESPECIALLYTHE USA (FOR EXAMPLE, MOORE, 1963).

THERE IS NO CONSENSUS ABOUT THE MEANING OFDEVELOPMENT. IT IS A CONTESTED CONCEPT AND THEREHAVE BEEN A NUMBER OF DEBATES TO CAPTURE ITSMEANING.

UNTIL THE END OF THE 1960s THE MODERNIZATIONPERSPECTIVE ON DEVELOPMENT HELD SWAY. DEVELOPMENTWAS SEEN AS AN EVOLUTIONARY PROCESS IN WHICHCOUNTRIES PROGRESSED THROUGH AN IDENTIFIED SERIESOF STAGES TO BECOME MODERN.

THE FUTURE FOR THE DEVELOPING COUNTRIES WASALREADY IN EXISTENCE AND COULD BE SEEN IN THE FORMOF THE ADVANCED WESTERN SOCIETIES, MOST ESPECIALLYTHE USA (FOR EXAMPLE, MOORE, 1963).

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THE BROAD DEVELOPMENTAL INITIATIVES OF THE 1950s AND1960s THAT DOMINATED INTELLECTUAL DEBATES ANDINFLUENCED APPLIED PUBLIC POLICIES WERE OFTEN REFERREDTO AS NATION BUILDING OR MERELY MODERNIZATIONPOLICIES.

THE CONCEPTS OF MODERNIZATION AND NATION BUILDINGHAVE BEEN EQUATED WITH THE APPLICATION OF RATIONALCONTROL OVER PEOPLE'S PHYSICAL AND SOCIALENVIRONMENTS (PYE 1962; BLACK 1967; MYRDAL 1968). TOACHIEVE SUCH CONTROL, THE EFFECTIVE EMPLOYMENT OFADVANCED TECHNOLOGY AND SCIENCE WAS CONSIDEREDESSENTIAL.

THE BROAD DEVELOPMENTAL INITIATIVES OF THE 1950s AND1960s THAT DOMINATED INTELLECTUAL DEBATES ANDINFLUENCED APPLIED PUBLIC POLICIES WERE OFTEN REFERREDTO AS NATION BUILDING OR MERELY MODERNIZATIONPOLICIES.

THE CONCEPTS OF MODERNIZATION AND NATION BUILDINGHAVE BEEN EQUATED WITH THE APPLICATION OF RATIONALCONTROL OVER PEOPLE'S PHYSICAL AND SOCIALENVIRONMENTS (PYE 1962; BLACK 1967; MYRDAL 1968). TOACHIEVE SUCH CONTROL, THE EFFECTIVE EMPLOYMENT OFADVANCED TECHNOLOGY AND SCIENCE WAS CONSIDEREDESSENTIAL.

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THESE PERSPECTIVES ARE PREMISED ON:

1) ACCEPTANCE OF THE NATION-STATE AS THE PRIME UNIT OFTHE POLITY,

2) COMMITMENT TO ECONOMIC GROWTH AND JUSTICE INPUBLIC AFFAIRS, AND

3) RECOGNITION THAT IMPLEMENTATION OF SOCIETAL CHANGEIS MOST EFFECTIVE WHEN ADMINISTERED BY INSTITUTIONSTHAT HAVE THE CAPACITY TO LEARN FROM AND ADAPT TOADVANCEMENTS IN HUMAN KNOWLEDGE.

THESE PERSPECTIVES ARE PREMISED ON:

1) ACCEPTANCE OF THE NATION-STATE AS THE PRIME UNIT OFTHE POLITY,

2) COMMITMENT TO ECONOMIC GROWTH AND JUSTICE INPUBLIC AFFAIRS, AND

3) RECOGNITION THAT IMPLEMENTATION OF SOCIETAL CHANGEIS MOST EFFECTIVE WHEN ADMINISTERED BY INSTITUTIONSTHAT HAVE THE CAPACITY TO LEARN FROM AND ADAPT TOADVANCEMENTS IN HUMAN KNOWLEDGE.

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THIS IDEOLOGY OF DEVELOPMENT WAS AT ONCE OPTIMISTICAND ETHNOCENTRIC. IT WAS OPTIMISTIC IN ASSUMING THAT‘PROBLEMS' OF UNDER­DEVELOPMENT SUCH AS POVERTY,INADEQUATE SOCIAL SERVICES AND LOW LEVELS OFINDUSTRIAL PRODUCTION WERE AMENABLE TO STRAIGHTFORWARD SOLUTION BY THE APPLICATION OF RATIONALMANAGEMENT TECHNIQUES.

IT WAS ETHNOCENTRIC IN THAT MODERNITY WAS PERCEIVEDAS BEING WESTERN AND THAT WESTERN TECHNOLOGY,INSTITUTIONS, MODES OF PRODUCTION AND VALUES WEREBOTH SUPERIOR AND DESIRABLE.

THE APPROACH WAS ALSO HEAVILY ORIENTED TO ECONOMCGROWTH AS THE DRIVING FORCE. CHANGES IN SOIAL ANDPOLITICAL INSTITUTIONS WOULD SIMULTANEOUSLYCONTRIBUTE TO ECONOMIC GROWTH AND BE INEVITABLECOMPANIONS TO AND OUTCOMES OF SUCH GROWTH.

THIS IDEOLOGY OF DEVELOPMENT WAS AT ONCE OPTIMISTICAND ETHNOCENTRIC. IT WAS OPTIMISTIC IN ASSUMING THAT‘PROBLEMS' OF UNDER­DEVELOPMENT SUCH AS POVERTY,INADEQUATE SOCIAL SERVICES AND LOW LEVELS OFINDUSTRIAL PRODUCTION WERE AMENABLE TO STRAIGHTFORWARD SOLUTION BY THE APPLICATION OF RATIONALMANAGEMENT TECHNIQUES.

IT WAS ETHNOCENTRIC IN THAT MODERNITY WAS PERCEIVEDAS BEING WESTERN AND THAT WESTERN TECHNOLOGY,INSTITUTIONS, MODES OF PRODUCTION AND VALUES WEREBOTH SUPERIOR AND DESIRABLE.

THE APPROACH WAS ALSO HEAVILY ORIENTED TO ECONOMCGROWTH AS THE DRIVING FORCE. CHANGES IN SOIAL ANDPOLITICAL INSTITUTIONS WOULD SIMULTANEOUSLYCONTRIBUTE TO ECONOMIC GROWTH AND BE INEVITABLECOMPANIONS TO AND OUTCOMES OF SUCH GROWTH.

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RESULTS DID NOT MATCH EXPECTATIONS. BY THE LATE196Os, THERE WAS INCREASED POVERTY, GROWINGINDEBTEDNESS, POLITICAL REPRESSION, ECONOMICSTAGNATION AND A HOST OF OTHER ILLS.

DEVELOPMENT NEEDED RETHINKING, AND IT CAMEBOTH IN LIBERAL REFORMULATIONS AND IN MOREDRAMATIC FORM THROUGH VARIOUS NEO-MARXISTINTERPRETATIONS.

RESULTS DID NOT MATCH EXPECTATIONS. BY THE LATE196Os, THERE WAS INCREASED POVERTY, GROWINGINDEBTEDNESS, POLITICAL REPRESSION, ECONOMICSTAGNATION AND A HOST OF OTHER ILLS.

DEVELOPMENT NEEDED RETHINKING, AND IT CAMEBOTH IN LIBERAL REFORMULATIONS AND IN MOREDRAMATIC FORM THROUGH VARIOUS NEO-MARXISTINTERPRETATIONS.

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THE LIBERAL REFORMULATIONS QUESTIONED THE MEANINGATTACHED TO DEVELOPMENT AND PROPOSED NEWDEFINITIONS WHICH LESSENED THE ROLE OF ECONOMICGROWTH.

AUTHENTIC DEVELOPMENT WAS SEEN AS PROGRESSTOWARDS A COMPLEX OF WELFARE GOALS SUCH AS THEELIMINATION OF POVERTY, THE PROVISION OFEMPLOYMENT, THE REDUCTION OF INEQUALITY AND THEGUARANTEE OF HUMAN RIGHTS.

THE CHANGED DEFINITION HAD PRACTICAL IMPLICATIONSSUMMED UP IN TERMINOLOGIES SUCH AS ‘REDISTRIBUTIONWITH GROWT‘, IN POLICIES SUCH AS 'THE BASIC NEEDSAPPROACH’ AND IN PLANNING PACKAGES SUCH AS‘INTEGRATED RURAL DEVELOPMENT'.

THE LIBERAL REFORMULATIONS QUESTIONED THE MEANINGATTACHED TO DEVELOPMENT AND PROPOSED NEWDEFINITIONS WHICH LESSENED THE ROLE OF ECONOMICGROWTH.

AUTHENTIC DEVELOPMENT WAS SEEN AS PROGRESSTOWARDS A COMPLEX OF WELFARE GOALS SUCH AS THEELIMINATION OF POVERTY, THE PROVISION OFEMPLOYMENT, THE REDUCTION OF INEQUALITY AND THEGUARANTEE OF HUMAN RIGHTS.

THE CHANGED DEFINITION HAD PRACTICAL IMPLICATIONSSUMMED UP IN TERMINOLOGIES SUCH AS ‘REDISTRIBUTIONWITH GROWT‘, IN POLICIES SUCH AS 'THE BASIC NEEDSAPPROACH’ AND IN PLANNING PACKAGES SUCH AS‘INTEGRATED RURAL DEVELOPMENT'.

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ONE GROUP, CALLED THE DEPENDENCY SCHOOL, ARGUEDTHAT THE GLOBAL ECONOMIC STRUCTURE WAS ANEXPLOITATIVE SYSTEM WHICH GENERATED AND MAINTAINED'THE DEVELOPMENT OF UNDERDEVELOPMENT' IN NATIONSOF THE PERIPHERY (FOR EXAMPLE, FRANK, 1971; SWEEZY,1982; WALLERSTEIN, 1979; AMIN, 1976).

DEVELOPMENT COULD ONLY OCCUR THROUGH RADICALSOLUTIONS WHICH ALTERED RELATIONSHIPS IN THE WORLDECONOMY. SUGGESTED ACTIONS INCLUDED DEVELOPMENTPROGRAMMES WHICH EMPHASIZED SELF-SUFFICIENCY,SUBSTANTIAL EVEN TOTAL DE-LINKING FROM THE WORLDECONOMY AND SOCIALIST REVOLUTION.

ONE GROUP, CALLED THE DEPENDENCY SCHOOL, ARGUEDTHAT THE GLOBAL ECONOMIC STRUCTURE WAS ANEXPLOITATIVE SYSTEM WHICH GENERATED AND MAINTAINED'THE DEVELOPMENT OF UNDERDEVELOPMENT' IN NATIONSOF THE PERIPHERY (FOR EXAMPLE, FRANK, 1971; SWEEZY,1982; WALLERSTEIN, 1979; AMIN, 1976).

DEVELOPMENT COULD ONLY OCCUR THROUGH RADICALSOLUTIONS WHICH ALTERED RELATIONSHIPS IN THE WORLDECONOMY. SUGGESTED ACTIONS INCLUDED DEVELOPMENTPROGRAMMES WHICH EMPHASIZED SELF-SUFFICIENCY,SUBSTANTIAL EVEN TOTAL DE-LINKING FROM THE WORLDECONOMY AND SOCIALIST REVOLUTION.

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DEVELOPMENT STRATEGIES THE CHOICE OF A STRATEGY FOR DEVELOPMENT

IMPLEMENTATION IS BASED ON A SELECTION OF ECONOMICASSUMPTIONS AND PERSPECTIVES, ASSOCIATED WITHCONFRIMED ECONOMIC THINKING UNDER COMPARABLECONDITIONS.

A CREDIBLE STRATEGY SPECIFIES THE DEGREE OF RELIANCE ONINTERNAL OR EXTERNAL RESOURCES, LAYS OUT THE DETAILS OFCOMMITMENT TO LEGITIMATE VALUES OF EQUITY, AND TAKESINTO ACCOUNT EXISTING AND POTENTIAL ADMINISTRATIVECAPACITIES.

DEVELOPMENT STRATEGIES THE CHOICE OF A STRATEGY FOR DEVELOPMENT

IMPLEMENTATION IS BASED ON A SELECTION OF ECONOMICASSUMPTIONS AND PERSPECTIVES, ASSOCIATED WITHCONFRIMED ECONOMIC THINKING UNDER COMPARABLECONDITIONS.

A CREDIBLE STRATEGY SPECIFIES THE DEGREE OF RELIANCE ONINTERNAL OR EXTERNAL RESOURCES, LAYS OUT THE DETAILS OFCOMMITMENT TO LEGITIMATE VALUES OF EQUITY, AND TAKESINTO ACCOUNT EXISTING AND POTENTIAL ADMINISTRATIVECAPACITIES.

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BUT CONCEPTS AND THEORIES OF ECONOMIC GROWTH STILLDIFFER ON WHAT CAUSES GROWTH AND ON WHAT METHODSSHOULD BE USED IN MEASURING ITS RESULTS.

AND THIS REALITY ALONE CONSTITUTES A FORMIDABLEBARRIER TO STRATEGIES OF DEVELOPMENT IMPLEMENTATIONIN DEVELOPING COUNTRIES.

AN ECONOMIC THEORY WITH A SIGNIFICANT IMPACT ONDEVELOPMENT ECONOMICS IS JOHN MAYNARD KEYNES'SGENERAL THEORY OF EMPLOYMENT, INTEREST, AND MONEY(1936).

BUT CONCEPTS AND THEORIES OF ECONOMIC GROWTH STILLDIFFER ON WHAT CAUSES GROWTH AND ON WHAT METHODSSHOULD BE USED IN MEASURING ITS RESULTS.

AND THIS REALITY ALONE CONSTITUTES A FORMIDABLEBARRIER TO STRATEGIES OF DEVELOPMENT IMPLEMENTATIONIN DEVELOPING COUNTRIES.

AN ECONOMIC THEORY WITH A SIGNIFICANT IMPACT ONDEVELOPMENT ECONOMICS IS JOHN MAYNARD KEYNES'SGENERAL THEORY OF EMPLOYMENT, INTEREST, AND MONEY(1936).

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KEYNESIAN ECONOMICS DOMINATED THE CONTEMPORARYSCENE IN MANY COUNTRIES OF THE WEST. KEYNES'S IDEAS,PROVIDED THE INTELLECTUAL BACKBONE OF MANY OF THEPOLICIES THAT BECAME PART OF THE NEW DEAL PROGRAMSOF THE ROOSEVELT ADMINISTRATION.

HIS IDEA OF RELYING ON THE STATE AS THE PRINCIPAL FORCE INACHIEVING ECONOMIC GROWTH (ALONG WITH FULLEMPLOYMENT AND PRICE AND WAGE STABILITY) SERVED AS ITRATIONALE FOR STATE ECONOMIC ACTIVISM.

KEYNESIAN ECONOMICS DOMINATED THE CONTEMPORARYSCENE IN MANY COUNTRIES OF THE WEST. KEYNES'S IDEAS,PROVIDED THE INTELLECTUAL BACKBONE OF MANY OF THEPOLICIES THAT BECAME PART OF THE NEW DEAL PROGRAMSOF THE ROOSEVELT ADMINISTRATION.

HIS IDEA OF RELYING ON THE STATE AS THE PRINCIPAL FORCE INACHIEVING ECONOMIC GROWTH (ALONG WITH FULLEMPLOYMENT AND PRICE AND WAGE STABILITY) SERVED AS ITRATIONALE FOR STATE ECONOMIC ACTIVISM.

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CONSISTENT WITH KEYNESIAN ECONOMICS, GOVERNMENTSOF DEVELOPING COUNTRIES ESTABLISHED THE POLICYFRAMEWORK FOR DEVELOPMENT, ENFORCED INVESTMENTPRIORITIES, REGULATED, OPERATED MAJOR ENTERPRISES,AND PROVIDED A WIDE RANGE OF ESSENTIAL PUBLICSERVICES, FROM EDUCATION TO TRANSPORTATION (ESMAN1991, 7).

CONSISTENT WITH KEYNESIAN ECONOMICS, GOVERNMENTSOF DEVELOPING COUNTRIES ESTABLISHED THE POLICYFRAMEWORK FOR DEVELOPMENT, ENFORCED INVESTMENTPRIORITIES, REGULATED, OPERATED MAJOR ENTERPRISES,AND PROVIDED A WIDE RANGE OF ESSENTIAL PUBLICSERVICES, FROM EDUCATION TO TRANSPORTATION (ESMAN1991, 7).

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DEVELOPMENT THEORIES THE LINEAR-STAGES THEORY

STRUCTURAL-CHANGE MODELS

THE INTERNATIONAL-DEPENDENCE REVOLUTION

THE NEW GROWTH THEORY

THE NEOCLASSICAL COUNTERREVOLUTION

(TODARO, 2000)

DEVELOPMENT THEORIES THE LINEAR-STAGES THEORY

STRUCTURAL-CHANGE MODELS

THE INTERNATIONAL-DEPENDENCE REVOLUTION

THE NEW GROWTH THEORY

THE NEOCLASSICAL COUNTERREVOLUTION

(TODARO, 2000)

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THE LINEAR-STAGES PUBLIC THEORY

1. ROSTOW’S STAGES OF GROWTH1) THE TRADITIONAL SOCIETY2) THE PRE-CONDITION FOR TAKE OFF INTO SELF-SUSTAINING

GROWTH3) THE TAKE OFF4) THE DRIVE TO MATURITY5) THE AGE OF HIGH MASS CONSUMPTION

THE LINEAR-STAGES PUBLIC THEORY

1. ROSTOW’S STAGES OF GROWTH1) THE TRADITIONAL SOCIETY2) THE PRE-CONDITION FOR TAKE OFF INTO SELF-SUSTAINING

GROWTH3) THE TAKE OFF4) THE DRIVE TO MATURITY5) THE AGE OF HIGH MASS CONSUMPTION

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DURING THE 1960s AND EARLY 1970s, AN INFLUENTIALECONOMIC PERSPECTIVE DEFINED DEVELOPMENT IN TERMS OFLINEAR STAGES OF GROWTH (W. W. ROSTOW AND OTHERS),THAT IS, SUCCESSIVE STAGES THROUGH WHICH ALL COUNTRIESMUST PASS.

ACCORDING TO THIS THEORY, COUNTRIES NEEDED ONLY TODISCOVER THE PROPER MIX OF SAVINGS AND INVESTMENT TOENABLE THEM TO "TAKE OFF" TOWARD THEIR CHERISHEDDEVELOPMENTAL GOALS.

THIS MECHANICAL SORT OF "ECONOMIC ENGINEERING" WASTO BE REALIZED THROUGH NATIONAL PLANNING AND CAPITALINVESTMENT.

DURING THE 1960s AND EARLY 1970s, AN INFLUENTIALECONOMIC PERSPECTIVE DEFINED DEVELOPMENT IN TERMS OFLINEAR STAGES OF GROWTH (W. W. ROSTOW AND OTHERS),THAT IS, SUCCESSIVE STAGES THROUGH WHICH ALL COUNTRIESMUST PASS.

ACCORDING TO THIS THEORY, COUNTRIES NEEDED ONLY TODISCOVER THE PROPER MIX OF SAVINGS AND INVESTMENT TOENABLE THEM TO "TAKE OFF" TOWARD THEIR CHERISHEDDEVELOPMENTAL GOALS.

THIS MECHANICAL SORT OF "ECONOMIC ENGINEERING" WASTO BE REALIZED THROUGH NATIONAL PLANNING AND CAPITALINVESTMENT.

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2. THE HARROD-DOMAR GROWTH MODEL

THREE KINDS OF GROWTH:

1) WARRANTED GROWTH (THE RATE OF OUTPUT AT WHICH FIRMSFEEL THEY HAVE THE RIGHT LEVEL OF CAPITAL AND DO NOT WISHTO EXPAND OR DECREASE INVESTMENT)

2) NATURAL RATE OF GROWTH (CORRESPONDING TO GROWTH INTHE LABOR FORCE)

3) ACTUAL GROWTH (RESULTING FROM A CHANGE IN AGGREGATEOUTPUT).

Y/Y = s/k2. THE HARROD-DOMAR GROWTH MODEL

THREE KINDS OF GROWTH:

1) WARRANTED GROWTH (THE RATE OF OUTPUT AT WHICH FIRMSFEEL THEY HAVE THE RIGHT LEVEL OF CAPITAL AND DO NOT WISHTO EXPAND OR DECREASE INVESTMENT)

2) NATURAL RATE OF GROWTH (CORRESPONDING TO GROWTH INTHE LABOR FORCE)

3) ACTUAL GROWTH (RESULTING FROM A CHANGE IN AGGREGATEOUTPUT).

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STRUCTURAL-CHANGE MODELS

THE LEWIS THEORY OF DEVELOPMENT

LEWIS TWO SECTOR MODEL (TRADITIONAL AND MODERN)

STRUCTURAL CHANGE AND PATTERNS OF DEVELOPMENT

AGRICULTURE – INDUSTRY – CONSTRUCTION & SERVICES

STRUCTURAL-CHANGE MODELS

THE LEWIS THEORY OF DEVELOPMENT

LEWIS TWO SECTOR MODEL (TRADITIONAL AND MODERN)

STRUCTURAL CHANGE AND PATTERNS OF DEVELOPMENT

AGRICULTURE – INDUSTRY – CONSTRUCTION & SERVICES

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THE INTERNATIONAL-DEPENDENCE REVOLUTION1. THE NEOCOLONIAL DEPENDENCE MODEL

UNDERDEVELOPMENT IS SEEN AS AN EXTERNALLYINDUCED PHENOMENON

2. THE FALSE-PARADIGM MODELUNDERDEVELOPMENT IS CAUSED BY FAULTY ANDINAPPROPRIATE ADVICE FROM INTERNATIONAL “EXPERT”

3. THE DUALISTIC-DEVELOPMENT THESISTHE EXISTENCE AND PERSISTENCE OF INCREASINGDIVERGENCES BETWEEN RICH AND POOR NATIONS ANDRICH AND POOR PEOPLES ON VARIOUS LEVEL

THE INTERNATIONAL-DEPENDENCE REVOLUTION1. THE NEOCOLONIAL DEPENDENCE MODEL

UNDERDEVELOPMENT IS SEEN AS AN EXTERNALLYINDUCED PHENOMENON

2. THE FALSE-PARADIGM MODELUNDERDEVELOPMENT IS CAUSED BY FAULTY ANDINAPPROPRIATE ADVICE FROM INTERNATIONAL “EXPERT”

3. THE DUALISTIC-DEVELOPMENT THESISTHE EXISTENCE AND PERSISTENCE OF INCREASINGDIVERGENCES BETWEEN RICH AND POOR NATIONS ANDRICH AND POOR PEOPLES ON VARIOUS LEVEL

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THE NEW GROWTH THEORY

ENDOGENOUS GROWTH

SEEK TO EXPLAIN THE FACTORS THAT DETERMINE THESIZE OF µ (THE RATE OF GROWTH OF GDP), THAT IS LEFTUNEXPLAINED AND EXOGENOUSLY DETERMINED IN THESOLOW NEOCLASSICAL GROWTH EQUATION

Y = AeµtKαL1-α Y = AeµtK

THE NEW GROWTH THEORY

ENDOGENOUS GROWTH

SEEK TO EXPLAIN THE FACTORS THAT DETERMINE THESIZE OF µ (THE RATE OF GROWTH OF GDP), THAT IS LEFTUNEXPLAINED AND EXOGENOUSLY DETERMINED IN THESOLOW NEOCLASSICAL GROWTH EQUATION

Y = AeµtKαL1-α Y = AeµtK

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THE NEOCLASSICAL COUNTERREVOLUTIONFREE MARKETS, PUBLIC CHOICE, & MARKETFRIENDLY APPROACHES

PRIVATIZATIONS, GOVERNMENTS CAN DO NOTHING RIGHT,“NONSELECTIVE” INTERVENTIONS

2. TRADITIONAL NEOCLASSICAL GROWTH THEORY

OUTPUT GROWTH RESULTS FROM ONE OR MORE OF THREEFACTORS: INCREASES IN LABOR QUANTITY AND QUALITY, INCREASESIN CAPITAL, AND IMPROVEMENTS IN TECHNOLOGY

Y = AeµtKαL1-α

THE NEOCLASSICAL COUNTERREVOLUTIONFREE MARKETS, PUBLIC CHOICE, & MARKETFRIENDLY APPROACHES

PRIVATIZATIONS, GOVERNMENTS CAN DO NOTHING RIGHT,“NONSELECTIVE” INTERVENTIONS

2. TRADITIONAL NEOCLASSICAL GROWTH THEORY

OUTPUT GROWTH RESULTS FROM ONE OR MORE OF THREEFACTORS: INCREASES IN LABOR QUANTITY AND QUALITY, INCREASESIN CAPITAL, AND IMPROVEMENTS IN TECHNOLOGY

Y = AeµtKαL1-α

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THE NEOCLASSICAL COUNTERMOVEMENT INECONOMIC THINKING, HAS BEEN GAINING SOMEGROUND. IT FEATURES BASIC "STRUCTURALADJUSTMENTS" TO FREE THE MARKET, PRIVATIZEPUBLIC CORPORATIONS, AND DISMANTLE PUBLICOWNERSHIP OF PRODUCTION MEANS ANDPROPERTY. IT REJECTS CENTRAL PLANNING AND THEREGULATION OF ECONOMIC ACTIVITIES (TODARO1989, 82).

THE NEOCLASSICAL COUNTERMOVEMENT INECONOMIC THINKING, HAS BEEN GAINING SOMEGROUND. IT FEATURES BASIC "STRUCTURALADJUSTMENTS" TO FREE THE MARKET, PRIVATIZEPUBLIC CORPORATIONS, AND DISMANTLE PUBLICOWNERSHIP OF PRODUCTION MEANS ANDPROPERTY. IT REJECTS CENTRAL PLANNING AND THEREGULATION OF ECONOMIC ACTIVITIES (TODARO1989, 82).

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IN ESSENCE, THIS ECONOMIC PERSPECTIVE SEEKS TOMINIMIZE THE ROLE OF THE STATE IN THEECONOMY BY DOWNSIZING GOVERNMENT. ALSO, ITADVOCATES DEREGULATION AND THE PRIVATIZINGOF PUBLIC ENTERPRISES AND ALL POSSIBLE STATEFUNCTIONS. ULTIMATE FAITH IS PLACED IN MARKETINCENTIVES, WHICH ARE TRUSTED TO PRODUCEGREATER EFFICIENCIES AND BETTER UTILIZATION OFRESOURCES TO ACHIEVE GROWTH OF THEECONOMY (ESMAN. 1991, 9).

IN ESSENCE, THIS ECONOMIC PERSPECTIVE SEEKS TOMINIMIZE THE ROLE OF THE STATE IN THEECONOMY BY DOWNSIZING GOVERNMENT. ALSO, ITADVOCATES DEREGULATION AND THE PRIVATIZINGOF PUBLIC ENTERPRISES AND ALL POSSIBLE STATEFUNCTIONS. ULTIMATE FAITH IS PLACED IN MARKETINCENTIVES, WHICH ARE TRUSTED TO PRODUCEGREATER EFFICIENCIES AND BETTER UTILIZATION OFRESOURCES TO ACHIEVE GROWTH OF THEECONOMY (ESMAN. 1991, 9).

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THE GROWING ECONOMIC POWERS OF THE WORLDBANK AND THE INTERNATIONAL MONETARY FUND(IMF) ARE MAJOR FORCES BEHIND SUCHMACROECONOMIC POLICIES, SANCTIONED BY LARGEINDUSTRIAL SYSTEMS, MAINLY THE UNITED STATESAND BRITAIN.

THE GROWING ECONOMIC POWERS OF THE WORLDBANK AND THE INTERNATIONAL MONETARY FUND(IMF) ARE MAJOR FORCES BEHIND SUCHMACROECONOMIC POLICIES, SANCTIONED BY LARGEINDUSTRIAL SYSTEMS, MAINLY THE UNITED STATESAND BRITAIN.

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A RENEWED MEANING OF DEVELOPMENT HOWEVER, HISTORY INDICATES THAT ECONOMIC COMPETITION

HAS NEVER BEEN PERFECT OR FAIR AND THAT GOVERNMENTACTION OFTEN OCCURRED EXACTLY AS A RESULT OF "MARKETFAILURES" THAT REQUIRED GOVERNMENT INTERVENTION TOIMPROVE EFFICIENCY (MENDEZ 1992, 13) OR ATTAIN SOCIALJUSTICE

MOREOVER, THE PRIVATE SECTOR IN MANY DEVELOPINGSYSTEMS HAS BEEN ILL PREPARED TO ASSUME ITSRESPONSIBILITIES AS ENVISIONED IN THE RESTRUCTURING ANDPRIVATIZATION SCHEMES.

A RENEWED MEANING OF DEVELOPMENT HOWEVER, HISTORY INDICATES THAT ECONOMIC COMPETITION

HAS NEVER BEEN PERFECT OR FAIR AND THAT GOVERNMENTACTION OFTEN OCCURRED EXACTLY AS A RESULT OF "MARKETFAILURES" THAT REQUIRED GOVERNMENT INTERVENTION TOIMPROVE EFFICIENCY (MENDEZ 1992, 13) OR ATTAIN SOCIALJUSTICE

MOREOVER, THE PRIVATE SECTOR IN MANY DEVELOPINGSYSTEMS HAS BEEN ILL PREPARED TO ASSUME ITSRESPONSIBILITIES AS ENVISIONED IN THE RESTRUCTURING ANDPRIVATIZATION SCHEMES.

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IN THE 1980s, DEVELOPMENT REPLACEDMODERNIZATION AND NATION BUILDING IN THELITERATURE. BUT EVEN WITHOUT A UNIVERSALLYUNDERSTOOD MEANING FOR THE TERMDEVELOPMENT (HEADY 2001), IN MOST CONTEXTS,DEVELOPMENT DID NOT REQUIRE DISCARDING THEOLD OR SEVERING RELATIONS WITH THETRADITIONAL.

IN THE 1980s, DEVELOPMENT REPLACEDMODERNIZATION AND NATION BUILDING IN THELITERATURE. BUT EVEN WITHOUT A UNIVERSALLYUNDERSTOOD MEANING FOR THE TERMDEVELOPMENT (HEADY 2001), IN MOST CONTEXTS,DEVELOPMENT DID NOT REQUIRE DISCARDING THEOLD OR SEVERING RELATIONS WITH THETRADITIONAL.

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THE CHOICE OF A STRATEGY FOR DEVELOPMENTIMPLEMENTATION IS BASED ON A SELECTION OF ECONOMICASSUMPTIONS AND PERSPECTIVES, ASSOCIATED WITHCONFRIMED ECONOMIC THINKING UNDER COMPARABLECONDITIONS.

A CREDIBLE STRATEGY SPECIFIES THE DEGREE OF RELIANCEON INTERNAL OR EXTERNAL RESOURCES, LAYS OUT THEDETAILS OF COMMITMENT TO LEGITIMATE VALUES OFEQUITY, AND TAKES INTO ACCOUNT EXISTING ANDPOTENTIAL ADMINISTRATIVE CAPACITIES.

DEVELOPMENT STRATEGIES

THE CHOICE OF A STRATEGY FOR DEVELOPMENTIMPLEMENTATION IS BASED ON A SELECTION OF ECONOMICASSUMPTIONS AND PERSPECTIVES, ASSOCIATED WITHCONFRIMED ECONOMIC THINKING UNDER COMPARABLECONDITIONS.

A CREDIBLE STRATEGY SPECIFIES THE DEGREE OF RELIANCEON INTERNAL OR EXTERNAL RESOURCES, LAYS OUT THEDETAILS OF COMMITMENT TO LEGITIMATE VALUES OFEQUITY, AND TAKES INTO ACCOUNT EXISTING ANDPOTENTIAL ADMINISTRATIVE CAPACITIES.

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KEYNESIAN ECONOMICS DOMINATED THECONTEMPORARY SCENE IN MANY COUNTRIES OF THEWEST. KEYNES'S IDEAS, PROVIDED THE INTELLECTUALBACKBONE OF MANY OF THE POLICIES THAT BECAMEPART OF THE NEW DEAL PROGRAMS OF THEROOSEVELT ADMINISTRATION.

HIS IDEA OF RELYING ON THE STATE AS THE PRINCIPALFORCE IN ACHIEVING ECONOMIC GROWTH (ALONGWITH FULL EMPLOYMENT AND PRICE AND WAGESTABILITY) SERVED AS IT RATIONALE FOR STATEECONOMIC ACTIVISM.

KEYNESIAN ECONOMICS DOMINATED THECONTEMPORARY SCENE IN MANY COUNTRIES OF THEWEST. KEYNES'S IDEAS, PROVIDED THE INTELLECTUALBACKBONE OF MANY OF THE POLICIES THAT BECAMEPART OF THE NEW DEAL PROGRAMS OF THEROOSEVELT ADMINISTRATION.

HIS IDEA OF RELYING ON THE STATE AS THE PRINCIPALFORCE IN ACHIEVING ECONOMIC GROWTH (ALONGWITH FULL EMPLOYMENT AND PRICE AND WAGESTABILITY) SERVED AS IT RATIONALE FOR STATEECONOMIC ACTIVISM.

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CONSISTENT WITH KEYNESIAN ECONOMICS,GOVERNMENTS OF DEVELOPING COUNTRIESESTABLISHED THE POLICY FRAMEWORK FORDEVELOPMENT, ENFORCED INVESTMENT PRIORITIES,REGULATED, OPERATED MAJOR ENTERPRISES, ANDPROVIDED A WIDE RANGE OF ESSENTIAL PUBLICSERVICES, FROM EDUCATION TO TRANSPORTATION(ESMAN 1991, 7).

CONSISTENT WITH KEYNESIAN ECONOMICS,GOVERNMENTS OF DEVELOPING COUNTRIESESTABLISHED THE POLICY FRAMEWORK FORDEVELOPMENT, ENFORCED INVESTMENT PRIORITIES,REGULATED, OPERATED MAJOR ENTERPRISES, ANDPROVIDED A WIDE RANGE OF ESSENTIAL PUBLICSERVICES, FROM EDUCATION TO TRANSPORTATION(ESMAN 1991, 7).

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IN THE POST-WAR PERIOD THE NEOCLASSICALCOUNTERMOVEMENT IN ECONOMIC THINKING,HAS BEEN GAINING SOME GROUND. IT FEATURESBASIC "STRUCTURAL ADJUSTMENTS" TO FREE THEMARKET, PRIVATIZE PUBLIC CORPORATIONS, ANDDISMANTLE PUBLIC OWNERSHIP OF PRODUCTIONMEANS AND PROPERTY. IT REJECTS CENTRALPLANNING AND THE REGULATION OF ECONOMICACTIVITIES (TODARO 1989, 82).

IN THE POST-WAR PERIOD THE NEOCLASSICALCOUNTERMOVEMENT IN ECONOMIC THINKING,HAS BEEN GAINING SOME GROUND. IT FEATURESBASIC "STRUCTURAL ADJUSTMENTS" TO FREE THEMARKET, PRIVATIZE PUBLIC CORPORATIONS, ANDDISMANTLE PUBLIC OWNERSHIP OF PRODUCTIONMEANS AND PROPERTY. IT REJECTS CENTRALPLANNING AND THE REGULATION OF ECONOMICACTIVITIES (TODARO 1989, 82).

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The Washington Consensus is a phrase initially coined in 1989 by John Williamson todescribe a relatively specific set of ten economic policy prescriptions that constituted a"standard" reform package promoted for crisis-wracked countries by Washington, D.C-basedinstitutions such as the International Monetary Fund (IMF), World Bank and U.S. TreasuryDepartment.[1]

The term "Washington consensus" has acquired a secondary connotation, being used todescribe a less-precisely stipulated gamut of policies, broadly associated with expanding therole of market forces and constraining the role of the state, sometimes also described (almostinvariably pejoratively) as neo-liberalism or market fundamentalism.

The Washington Consensus, especially in this second, broader formulation, has been thetarget of sharp criticism by some individuals and groups who argue that it is a way to open upless developed countries to investments from large Multinational corporations and their wealthyowners in advanced First World economies, which the critics would view as a negativedevelopment.

Critics frequently cite the Argentine economic crisis of 1999-2002 as a case in point of whythey believe that Washington Consensus policies are flawed, as they argue that Argentina hadpreviously implemented most of the Washington Consensus policies as directed. Someeconomists, by contrast, question how closely Argentina had in fact followed the Consensuspolicies.

WASHINGTON CONSENSUS The Washington Consensus is a phrase initially coined in 1989 by John Williamson to

describe a relatively specific set of ten economic policy prescriptions that constituted a"standard" reform package promoted for crisis-wracked countries by Washington, D.C-basedinstitutions such as the International Monetary Fund (IMF), World Bank and U.S. TreasuryDepartment.[1]

The term "Washington consensus" has acquired a secondary connotation, being used todescribe a less-precisely stipulated gamut of policies, broadly associated with expanding therole of market forces and constraining the role of the state, sometimes also described (almostinvariably pejoratively) as neo-liberalism or market fundamentalism.

The Washington Consensus, especially in this second, broader formulation, has been thetarget of sharp criticism by some individuals and groups who argue that it is a way to open upless developed countries to investments from large Multinational corporations and their wealthyowners in advanced First World economies, which the critics would view as a negativedevelopment.

Critics frequently cite the Argentine economic crisis of 1999-2002 as a case in point of whythey believe that Washington Consensus policies are flawed, as they argue that Argentina hadpreviously implemented most of the Washington Consensus policies as directed. Someeconomists, by contrast, question how closely Argentina had in fact followed the Consensuspolicies.

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Fiscal policy discipline; Redirection of public spending from subsidies ("especially indiscriminate

subsidies") toward broad-based provision of key pro-growth, pro-poor serviceslike primary education, primary health care and infrastructure investment; Tax reform – broadening the tax base and adopting moderate marginal tax

rates; Interest rates that are market determined and positive (but moderate) in real

terms; Competitive exchange rates; Trade liberalization – liberalization of imports, with particular emphasis on

elimination of quantitative restrictions (licensing, etc.); any trade protection tobe provided by low and relatively uniform tariffs; Liberalization of inward foreign direct investment; Privatization of state enterprises; Deregulation – abolition of regulations that impede market entry or restrict

competition, except for those justified on safety, environmental and consumerprotection grounds, and prudent oversight of financial institutions; and, Legal security for property rights.

THE CONSENSUS INCLUDED TEN BOARD SETS OF RECOMMENDATION:

Fiscal policy discipline; Redirection of public spending from subsidies ("especially indiscriminate

subsidies") toward broad-based provision of key pro-growth, pro-poor serviceslike primary education, primary health care and infrastructure investment; Tax reform – broadening the tax base and adopting moderate marginal tax

rates; Interest rates that are market determined and positive (but moderate) in real

terms; Competitive exchange rates; Trade liberalization – liberalization of imports, with particular emphasis on

elimination of quantitative restrictions (licensing, etc.); any trade protection tobe provided by low and relatively uniform tariffs; Liberalization of inward foreign direct investment; Privatization of state enterprises; Deregulation – abolition of regulations that impede market entry or restrict

competition, except for those justified on safety, environmental and consumerprotection grounds, and prudent oversight of financial institutions; and, Legal security for property rights.

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DEVELOPMENT = MODERNIZATION

NATION BUILDING

IIWESTERNIZATIONNATION BUILDING WESTERNIZATION

SOCIAL ANDPHYSICALCONTROL OFSOCIETY

SCIENCE ANDTECHNOLOGY

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DEVELOPMENT FAILURES

LIBERAL REFORMULATION DEPENDENCY THEORY

WASHINGTONCONSENSUS

RADICAL SOLUTIONIIII

SELF SUFFICIENCYSELF SUFFICIENCY

SELF RELIENCE

REDISTRIBUTION WITH GROWTHBASIC NEED APPROACHPEOPLE CENTEREDHUMAN DEVELOPMENT

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RICH → RICHER

TRADE GROWTH

WELFARE INCOME

RICH → RICHER

POOR → POORER

GAP

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A RENEWED MEANING OF DEVELOPMENT HOWEVER, HISTORY INDICATES THAT ECONOMIC COMPETITION

HAS NEVER BEEN PERFECT OR FAIR AND THAT GOVERNMENTACTION OFTEN OCCURRED EXACTLY AS A RESULT OF "MARKETFAILURES" THAT REQUIRED GOVERNMENT INTERVENTION TOIMPROVE EFFICIENCY (MENDEZ 1992, 13) OR ATTAIN SOCIALJUSTICE

MOREOVER, THE PRIVATE SECTOR IN MANY DEVELOPINGSYSTEMS HAS BEEN ILL PREPARED TO ASSUME ITSRESPONSIBILITIES AS ENVISIONED IN THE RESTRUCTURING ANDPRIVATIZATION SCHEMES.

A RENEWED MEANING OF DEVELOPMENT HOWEVER, HISTORY INDICATES THAT ECONOMIC COMPETITION

HAS NEVER BEEN PERFECT OR FAIR AND THAT GOVERNMENTACTION OFTEN OCCURRED EXACTLY AS A RESULT OF "MARKETFAILURES" THAT REQUIRED GOVERNMENT INTERVENTION TOIMPROVE EFFICIENCY (MENDEZ 1992, 13) OR ATTAIN SOCIALJUSTICE

MOREOVER, THE PRIVATE SECTOR IN MANY DEVELOPINGSYSTEMS HAS BEEN ILL PREPARED TO ASSUME ITSRESPONSIBILITIES AS ENVISIONED IN THE RESTRUCTURING ANDPRIVATIZATION SCHEMES.

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IN THE 1980s, DEVELOPMENT REPLACEDMODERNIZATION AND NATION BUILDING IN THELITERATURE. BUT EVEN WITHOUT A UNIVERSALLYUNDERSTOOD MEANING FOR THE TERMDEVELOPMENT (HEADY 2001), IN MOST CONTEXTS,DEVELOPMENT DID NOT REQUIRE DISCARDING THEOLD OR SEVERING RELATIONS WITH THETRADITIONAL.

IN THE 1980s, DEVELOPMENT REPLACEDMODERNIZATION AND NATION BUILDING IN THELITERATURE. BUT EVEN WITHOUT A UNIVERSALLYUNDERSTOOD MEANING FOR THE TERMDEVELOPMENT (HEADY 2001), IN MOST CONTEXTS,DEVELOPMENT DID NOT REQUIRE DISCARDING THEOLD OR SEVERING RELATIONS WITH THETRADITIONAL.

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DEVELOPMENT EVOLVED TO DENOTE A PROCESS OFRENEWAL THROUGH REFINEMENT AND REFORM, APROCESS THAT ENCOMPASSED MATERIAL, BEHAVIORAL,AND SYMBOLIC ASSETS OF THE SOCIETY. IT WAS HELD,HOWEVER, THAT IF THIS NATIONAL DEVELOPMENT WASTO ENDURE, IT HAD TO BE SELF-RELIANT, NOTDEPENDENT ON FOREIGN SOURCES FOR SUPPORT ANDSUSTENANCE.

DEVELOPMENT EVOLVED TO DENOTE A PROCESS OFRENEWAL THROUGH REFINEMENT AND REFORM, APROCESS THAT ENCOMPASSED MATERIAL, BEHAVIORAL,AND SYMBOLIC ASSETS OF THE SOCIETY. IT WAS HELD,HOWEVER, THAT IF THIS NATIONAL DEVELOPMENT WASTO ENDURE, IT HAD TO BE SELF-RELIANT, NOTDEPENDENT ON FOREIGN SOURCES FOR SUPPORT ANDSUSTENANCE.

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EVIDENCE CONSISTENTLY INDICATES THAT WHATMATTERS IS HOW DEVELOPMENT IS MANAGED ANDHOW ITS BENEFITS AND OUTCOMES ARE DISTRIBUTEDAMONG PEOPLE (UNDP 1995). TODAY, THE WHAT ANDTHE HOW OF DEVELOPMENT ARE REGULARLYACCOMPANIED BY A QUESTION ABOUT WHOBENEFITS BY IT.

EVIDENCE CONSISTENTLY INDICATES THAT WHATMATTERS IS HOW DEVELOPMENT IS MANAGED ANDHOW ITS BENEFITS AND OUTCOMES ARE DISTRIBUTEDAMONG PEOPLE (UNDP 1995). TODAY, THE WHAT ANDTHE HOW OF DEVELOPMENT ARE REGULARLYACCOMPANIED BY A QUESTION ABOUT WHOBENEFITS BY IT.

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ACCORDING TO STIGLITZ (1998) STRATEGY OFDEVELOPMENT SHOULD INCLUDE:

1. PUBLIC SECTOR DEVELOPMENT2. PRIVATE SECTOR DEVELOPMENT3. COMMUNITY DEVELOPMENT4. FAMILY DEVELOPMENT5. INDIVIDUAL DEVELOPMENT

ACCORDING TO STIGLITZ (1998) STRATEGY OFDEVELOPMENT SHOULD INCLUDE:

1. PUBLIC SECTOR DEVELOPMENT2. PRIVATE SECTOR DEVELOPMENT3. COMMUNITY DEVELOPMENT4. FAMILY DEVELOPMENT5. INDIVIDUAL DEVELOPMENT

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WITH PRIORITY ON:

1. EDUCATION2. HEALTH3. INFRASTRUCTURE4. KNOWLEDGE5. CAPACITY BUILDING

(STIGLITZ,1998)

WITH PRIORITY ON:

1. EDUCATION2. HEALTH3. INFRASTRUCTURE4. KNOWLEDGE5. CAPACITY BUILDING

(STIGLITZ,1998)

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HE SAYS THAT DEVELOPMENT SHOULD:

1. RAISE THE GDP PER CAPITA;

2. RAISE STANDARD OF HEALTH AND LITERACY;

3. REDUCE POVERTY; WHILE

4. SUSTAINING THE ENVIRONMENT.

(STIGLITZ,1998)

HE SAYS THAT DEVELOPMENT SHOULD:

1. RAISE THE GDP PER CAPITA;

2. RAISE STANDARD OF HEALTH AND LITERACY;

3. REDUCE POVERTY; WHILE

4. SUSTAINING THE ENVIRONMENT.

(STIGLITZ,1998)

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FROM ANOTHER PERSPECTIVE MILTON ESMAN (1991) SPECIFIEDFIVE IMPORTANT DIMENSIONS OF DEVELOPMENT:

1) ECONOMIC GROWTH

2) EQUITY

3) CAPACITY (CULTIVATION OF SKILLS, INSTITUTIONS, AND INCENTIVES)

4) AUTHENTICITY (DISTINCTIVE QUALITIES OF EACH SOCIETY ASEXPRESSED IN ITS INSTITUTIONS AND PRACTICES)

5) EMPOWERMENT (EXPANDED OPPORTUNITIES FOR INDIVIDUALS ANDCOLLECTIVITIES TO PARTICIPATE IN ECONOMIC AND POLITICALTRANSACTIONS).

FROM ANOTHER PERSPECTIVE MILTON ESMAN (1991) SPECIFIEDFIVE IMPORTANT DIMENSIONS OF DEVELOPMENT:

1) ECONOMIC GROWTH

2) EQUITY

3) CAPACITY (CULTIVATION OF SKILLS, INSTITUTIONS, AND INCENTIVES)

4) AUTHENTICITY (DISTINCTIVE QUALITIES OF EACH SOCIETY ASEXPRESSED IN ITS INSTITUTIONS AND PRACTICES)

5) EMPOWERMENT (EXPANDED OPPORTUNITIES FOR INDIVIDUALS ANDCOLLECTIVITIES TO PARTICIPATE IN ECONOMIC AND POLITICALTRANSACTIONS).

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JREISAT (2002) IDENTIFIES RENEWED DEVELOPMENTNORMS, AS:1) GENUINE NATIONAL DEVELOPMENT IS BASED NOT ON A PRIORI

ECONOMIC ASSUMPTIONS BUT ON EMPIRICAL UNDERSTANDINGOF LOCAL POLITICAL, ADMINISTRATIVE, AND ECONOMIC REALITIES.

2) NATIONAL DEVELOPMENT IS A COLLECTIVE EFFORT THAT INVOLVESTHE FULL CAPACITIES OF PRIVATE AND PUBLIC INSTITUTIONS, INPARTNERSHIP.

3) SUSTAINABLE DEVELOPMENT IS NOT TOTALLY DEPENDENT ONCAPITAL INFUSION FROM EXTERNAL SOURCES, NOR IS IT LIMITEDTO AN EXPORT-ORIENTED ECONOMY. DEVELOPMENT IS MOREDEPENDENT ON SELF­RELIANCE AND ON EMPLOYING PROCESSESTHAT ADDRESS COMMUNITY NEEDS AND DEMANDS AND EMPLOYRELEVANT TECHNOLOGIES IN CREATIVE WAYS TO CAUSE ANOVERALL IMPROVEMENT OF PRODUCTIVITY.

JREISAT (2002) IDENTIFIES RENEWED DEVELOPMENTNORMS, AS:1) GENUINE NATIONAL DEVELOPMENT IS BASED NOT ON A PRIORI

ECONOMIC ASSUMPTIONS BUT ON EMPIRICAL UNDERSTANDINGOF LOCAL POLITICAL, ADMINISTRATIVE, AND ECONOMIC REALITIES.

2) NATIONAL DEVELOPMENT IS A COLLECTIVE EFFORT THAT INVOLVESTHE FULL CAPACITIES OF PRIVATE AND PUBLIC INSTITUTIONS, INPARTNERSHIP.

3) SUSTAINABLE DEVELOPMENT IS NOT TOTALLY DEPENDENT ONCAPITAL INFUSION FROM EXTERNAL SOURCES, NOR IS IT LIMITEDTO AN EXPORT-ORIENTED ECONOMY. DEVELOPMENT IS MOREDEPENDENT ON SELF­RELIANCE AND ON EMPLOYING PROCESSESTHAT ADDRESS COMMUNITY NEEDS AND DEMANDS AND EMPLOYRELEVANT TECHNOLOGIES IN CREATIVE WAYS TO CAUSE ANOVERALL IMPROVEMENT OF PRODUCTIVITY.

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UNPAS 2008www.ginandjar.com

47

4) THE DEVELOPMENT PROCESS IS QUALITATIVELY ENHANCED WHEN PUBLICDECISIONS ARE TRANSPARENT AND WHEN THE ACCOUNTABILITY OF PUBLICOFFICIALS AND INSTITUTIONS IS AFFIRMED.

5) APPLICATION OF SCIENTIFIC AND TECHNOLOGICAL METHODS TO ACHIEVEGROWTH AND INCREASE PRODUCTION IS UNAVOIDABLE.

6) THE PROCESS OF DEVELOPMENT FACES THE CONTINUING CHALLENGE OFTRANSFORMING INSTITUTIONS AND CULTURES TO EMBODY EFFICIENCY,ORDERLINESS, AND RATIONAL DECISION MAKING.

(JREISAT,2002)

4) THE DEVELOPMENT PROCESS IS QUALITATIVELY ENHANCED WHEN PUBLICDECISIONS ARE TRANSPARENT AND WHEN THE ACCOUNTABILITY OF PUBLICOFFICIALS AND INSTITUTIONS IS AFFIRMED.

5) APPLICATION OF SCIENTIFIC AND TECHNOLOGICAL METHODS TO ACHIEVEGROWTH AND INCREASE PRODUCTION IS UNAVOIDABLE.

6) THE PROCESS OF DEVELOPMENT FACES THE CONTINUING CHALLENGE OFTRANSFORMING INSTITUTIONS AND CULTURES TO EMBODY EFFICIENCY,ORDERLINESS, AND RATIONAL DECISION MAKING.

(JREISAT,2002)

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DEVELOPMENT INDICATORSDEVELOPMENT IS MULTIDIMENSIONAL AND RESISTS

ATTEMPTS TO MEASURE IT THROUGH A SINGLE FACTOR.THE USUAL RELIANCE ON PER CAPITA GROSS DOMESTICPRODUCT (GDP) ALONE IS INSUFFICIENT TO MEASUREECONOMIC DEVELOPMENT FOR MANY REASONS. ASAMARTYA SEN NOTED (IN A “PROFILE” IN THE NEW YORKTIMES OF JANUARY 9, 1994), PER CAPITA GDP “CAN EASILYOVERSTATE OR UNDERSTATE POVERTY AND MISLEADPOLICYMAKERS.”

DEVELOPMENT IS MULTIDIMENSIONAL AND RESISTSATTEMPTS TO MEASURE IT THROUGH A SINGLE FACTOR.THE USUAL RELIANCE ON PER CAPITA GROSS DOMESTICPRODUCT (GDP) ALONE IS INSUFFICIENT TO MEASUREECONOMIC DEVELOPMENT FOR MANY REASONS. ASAMARTYA SEN NOTED (IN A “PROFILE” IN THE NEW YORKTIMES OF JANUARY 9, 1994), PER CAPITA GDP “CAN EASILYOVERSTATE OR UNDERSTATE POVERTY AND MISLEADPOLICYMAKERS.”

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AS A MEASURE, GDP DOES NOT ADJUST FOR THE SOCIALCOSTS OF PRODUCTIVITY, EITHER (CRIME, URBAN SPRAWL,OR SAFETY HAZARDS). ANOTHER IMPORTANT LIMITATIONOF GDP IS THAT IT DOES NOT EVEN ATTEMPT TO ACCOUNTFOR THE ECOLOGICAL COSTS OF DEVELOPMENT, SUCH ASDAMAGE TO THE ENVIRONMENT.

AS A MEASURE, GDP DOES NOT ADJUST FOR THE SOCIALCOSTS OF PRODUCTIVITY, EITHER (CRIME, URBAN SPRAWL,OR SAFETY HAZARDS). ANOTHER IMPORTANT LIMITATIONOF GDP IS THAT IT DOES NOT EVEN ATTEMPT TO ACCOUNTFOR THE ECOLOGICAL COSTS OF DEVELOPMENT, SUCH ASDAMAGE TO THE ENVIRONMENT.

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NONETHELESS, PER CAPITA GDP OR THE MORE RECENTUSAGE OF PPP, CONTINUES TO BE WIDELY USED INCLASSIFYING COUNTRIES INTO CATEGORIES OF HIGH,MEDIUM, OR LOW INCOME, AS IN THE WORLD BANKANNUAL REPORTS. THUS, ALTHOUGH THE MOSTINFLUENTIAL INDICATOR OF ECONOMIC GROWTH ISNARROW—EVEN DEFICIENT—BUT REMAINS THE MOSTPREVALENT FOR MEASURING STANDARDS OF LIVING IN ASOCIETY.

NONETHELESS, PER CAPITA GDP OR THE MORE RECENTUSAGE OF PPP, CONTINUES TO BE WIDELY USED INCLASSIFYING COUNTRIES INTO CATEGORIES OF HIGH,MEDIUM, OR LOW INCOME, AS IN THE WORLD BANKANNUAL REPORTS. THUS, ALTHOUGH THE MOSTINFLUENTIAL INDICATOR OF ECONOMIC GROWTH ISNARROW—EVEN DEFICIENT—BUT REMAINS THE MOSTPREVALENT FOR MEASURING STANDARDS OF LIVING IN ASOCIETY.

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IN ORDER TO OBTAIN A MORE BALANCED ANDCOMPREHENSIVE COVERAGE, AN INDEX THAT COMBINESSEVERAL INDICATORS PROMISES GREATER RELIABILITY. AFULL SET OF INDICATORS THAT MEASURE ECONOMIC,SOCIAL, POLITICAL, AND CULTURAL DIMENSIONS OFDEVELOPMENT HAS PROVED TO BE A USEFULINSTRUMENT, EVEN IF IN PRACTICE USING TOO MANYINDICATORS IS DIFFICULT AND COSTLY TO MANAGE.

IN ORDER TO OBTAIN A MORE BALANCED ANDCOMPREHENSIVE COVERAGE, AN INDEX THAT COMBINESSEVERAL INDICATORS PROMISES GREATER RELIABILITY. AFULL SET OF INDICATORS THAT MEASURE ECONOMIC,SOCIAL, POLITICAL, AND CULTURAL DIMENSIONS OFDEVELOPMENT HAS PROVED TO BE A USEFULINSTRUMENT, EVEN IF IN PRACTICE USING TOO MANYINDICATORS IS DIFFICULT AND COSTLY TO MANAGE.

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THE KEY IS TO GROUP SIGNIFICANT INDICATORSIN AN INDEX SUCH AS THE UNITED NATIONSDEVELOPMENT PROGRAM'S (UNDP‘s) HUMANDEVELOPMENT INDEX (HDI), PRODUCEDANNUALLY SINCE 1990. THIS INDEX COMBINESDATA ON INDICATORS IN EDUCATION (ADULTLITERACY RATE), HEALTH (LIFE EXPECTANCY ATBIRTH), AND PER CAPITA GDP TO DEFINE ANDMEASURE PROGRESS IN HUMAN DEVELOPMENT.

THE KEY IS TO GROUP SIGNIFICANT INDICATORSIN AN INDEX SUCH AS THE UNITED NATIONSDEVELOPMENT PROGRAM'S (UNDP‘s) HUMANDEVELOPMENT INDEX (HDI), PRODUCEDANNUALLY SINCE 1990. THIS INDEX COMBINESDATA ON INDICATORS IN EDUCATION (ADULTLITERACY RATE), HEALTH (LIFE EXPECTANCY ATBIRTH), AND PER CAPITA GDP TO DEFINE ANDMEASURE PROGRESS IN HUMAN DEVELOPMENT.

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DEVELOPMENT INDICATORS

GDP PPP HDIGDP PPP HDI

EDUCATION HEALTHPOVERTYINEQUALITY INCOME

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Defining development today

An economic component dealing with the creation of wealth and improvedconditions of material life, equitably distributed;

A social ingredient measured as well-being in health, education, housing andemployment;

A political dimension including such values as human rights, political freedom,enfranchisement, and some form of democracy;

A cultural dimension in recognition of the fact that cultures confer identity and self-worth to people;

The full-life paradigm, which refers to meaning systems, symbols, and beliefsconcerning the ultimate meaning of life and history; and

A commitment to ecologically sound and sustainable development so that thepresent generation does not undermine the position of future generations.

Source: Modified from Goulet, D. (1992) 'Development: Creator and Destroyer of Values', WorldDevelopment, vol. 20(3), pp. 467-75.

CONCLUSIONDefining development today

An economic component dealing with the creation of wealth and improvedconditions of material life, equitably distributed;

A social ingredient measured as well-being in health, education, housing andemployment;

A political dimension including such values as human rights, political freedom,enfranchisement, and some form of democracy;

A cultural dimension in recognition of the fact that cultures confer identity and self-worth to people;

The full-life paradigm, which refers to meaning systems, symbols, and beliefsconcerning the ultimate meaning of life and history; and

A commitment to ecologically sound and sustainable development so that thepresent generation does not undermine the position of future generations.

Source: Modified from Goulet, D. (1992) 'Development: Creator and Destroyer of Values', WorldDevelopment, vol. 20(3), pp. 467-75.

(TURNER AND HULME, 1997)

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PARADIGM 1:POLITICS/ADMINISTRATION

DICHOTOMY, 1900 – 1926

PARADIGM 2:THE PRINCIPLES OF

ADMINISTRATION, 1926 – 1937

PARADIGM 4:PUBLIC ADMINISTRATION ASMANAGEMENT, 1956 – 1970

PARADIGM 3:PUBLIC ADMINISTRATION AS A

POLITICAL SCIENCE, 1950 – 1970

THE LINEAR-STAGES THEORY

STRUCTURAL-CHANGE MODELS

THE INTERNATIONAL-DEPENDENCEREVOLUTION

PUBLIC ADMINISTRATION DEVELOPMENT

PUBLIC ADMINISTRATION AND DEVELOPMENT CONVERGENCES

PARADIGM 4:PUBLIC ADMINISTRATION ASMANAGEMENT, 1956 – 1970

PARADIGM 5:PUBLIC ADMINISTRATION ASPUBLIC ADMINISTRATION: 1970

PARADIGM 6:FROM GOVERNMENT TOGOVERNANCE: 1990 -

THE FUTURE (?)DIGITAL (e) GOVERNANCE

THE NEW GROWTH THEORY

THE NEOCLASSICALCOUNTERREVOLUTION

HUMAN DEVELOPMENT VALUES

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SAMUEL HUNTINGTON SAID [2000] THAT HE HAPPENED TOCOME ACROSS ECONOMIC DATA ON GHANA AND SOUTHKOREA IN THE EARLY 1960S, AND AMAZED TO FIND HOWSIMILAR THEIR ECONOMIES WERE THEN. THESE TWOCOUNTRIES HAD ROUGHLY COMPARABLE LEVELS OF PERCAPITA GNP; SIMILAR DIVISIONS OF THEIR ECONOMYAMONG PRIMARY PRODUCTS, MANUFACTURING, ANDSERVICES; AND OVERWHELMINGLY PRIMARY PRODUCTEXPORTS. ALSO, THEY WERE RECEIVING COMPARABLELEVELS OF ECONOMIC AID.

SAMUEL HUNTINGTON SAID [2000] THAT HE HAPPENED TOCOME ACROSS ECONOMIC DATA ON GHANA AND SOUTHKOREA IN THE EARLY 1960S, AND AMAZED TO FIND HOWSIMILAR THEIR ECONOMIES WERE THEN. THESE TWOCOUNTRIES HAD ROUGHLY COMPARABLE LEVELS OF PERCAPITA GNP; SIMILAR DIVISIONS OF THEIR ECONOMYAMONG PRIMARY PRODUCTS, MANUFACTURING, ANDSERVICES; AND OVERWHELMINGLY PRIMARY PRODUCTEXPORTS. ALSO, THEY WERE RECEIVING COMPARABLELEVELS OF ECONOMIC AID.

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THIRTY YEARS LATER, SOUTH KOREA HAD BECOME ANINDUSTRIAL GIANT WITH THE FOURTEENTH LARGESTECONOMY IN THE WORLD, MULTINATIONALCORPORATIONS, MAJOR EXPORTS OF AUTOMOBILES,ELECTRONIC EQUIPMENT, AND OTHER SOPHISTICATEDMANUFACTURES, AND A PER CAPITA INCOMEAPPROXIMATING THAT OF GREECE. MOREOVER, IT WAS ONITS WAY TO THE CONSOLIDATION OF DEMOCRATICINSTITUTIONS.

THIRTY YEARS LATER, SOUTH KOREA HAD BECOME ANINDUSTRIAL GIANT WITH THE FOURTEENTH LARGESTECONOMY IN THE WORLD, MULTINATIONALCORPORATIONS, MAJOR EXPORTS OF AUTOMOBILES,ELECTRONIC EQUIPMENT, AND OTHER SOPHISTICATEDMANUFACTURES, AND A PER CAPITA INCOMEAPPROXIMATING THAT OF GREECE. MOREOVER, IT WAS ONITS WAY TO THE CONSOLIDATION OF DEMOCRATICINSTITUTIONS.

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NO SUCH CHANGES HAD OCCURRED IN GHANA, WHOSE PERCAPITA GNP WAS ABOUT ONE-FIFTEENTH THAT OF SOUTHKOREA'S. UNDOUBTEDLY, MANY FACTORS PLAYED A ROLE,BUT HE CONCLUDED THAT CULTURE HAD TO BE A LARGEPART OF THE EXPLANATION. SOUTH KOREANS VALUEDTHRIFT, INVESTMENT, HARD WORK, EDUCATION,ORGANIZATION, AND DISCIPLINE. GHANAIANS HADDIFFERENT VALUES. IN SHORT, CULTURES COUNT.

NO SUCH CHANGES HAD OCCURRED IN GHANA, WHOSE PERCAPITA GNP WAS ABOUT ONE-FIFTEENTH THAT OF SOUTHKOREA'S. UNDOUBTEDLY, MANY FACTORS PLAYED A ROLE,BUT HE CONCLUDED THAT CULTURE HAD TO BE A LARGEPART OF THE EXPLANATION. SOUTH KOREANS VALUEDTHRIFT, INVESTMENT, HARD WORK, EDUCATION,ORGANIZATION, AND DISCIPLINE. GHANAIANS HADDIFFERENT VALUES. IN SHORT, CULTURES COUNT.

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MODERNIZING NATIONS MUST PAINT ANEXAGGERATED PICTURE OF THE GLORIOUSFUTURE IF MAN ARE TO BE INSPIRED TOSACRIFICE FOR GOALS THEY MAY NEVERATTAIN. TO MAKE THE LEAP FROM APREINDUSTRIAL PAST TO AN INDUSTRIALPRESENT REQUIRES A UTOPIAN DREAM.

IT IS FOR THIS THAT MAN WILL MAKE A SUPREMESACRIFICE, WILL POSTPONE OR INHIBIT THEIREXPECTATIONS IN ORDER THAT THEIR CHILDRENMAY LIVE MORE COMFORTABLY AND WITHGREATER DIGNITY.

MODERNIZING NATIONS MUST PAINT ANEXAGGERATED PICTURE OF THE GLORIOUSFUTURE IF MAN ARE TO BE INSPIRED TOSACRIFICE FOR GOALS THEY MAY NEVERATTAIN. TO MAKE THE LEAP FROM APREINDUSTRIAL PAST TO AN INDUSTRIALPRESENT REQUIRES A UTOPIAN DREAM.

IT IS FOR THIS THAT MAN WILL MAKE A SUPREMESACRIFICE, WILL POSTPONE OR INHIBIT THEIREXPECTATIONS IN ORDER THAT THEIR CHILDRENMAY LIVE MORE COMFORTABLY AND WITHGREATER DIGNITY.

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MAN DOES NOT CONSTRUCT AN IDEOLOGY IN AVACUUM. IT IS NO ACCIDENT THAT UTOPIANMODEL-BUILDERS HAVE RELIED UPON THEPAST—JUST AS MARX AND ENGELS LOOKED BACKUPON PRELITERATE SOCIETY AS AN INSPIRATIONFOR THEIR IMAGE OF A CLASSLESS SOCIALORDER.

AS NATIONS STRIVE TO BREAK THEIR TIES WITHTHE PREINDUSTRIAL PAST THEIR MEMBERSCOME TO GLORIFY VARIOUS ELEMENTS (EITHERFACTUAL OR FICTIONALIZED) OF AN EARLIERHERITAGE.

MAN DOES NOT CONSTRUCT AN IDEOLOGY IN AVACUUM. IT IS NO ACCIDENT THAT UTOPIANMODEL-BUILDERS HAVE RELIED UPON THEPAST—JUST AS MARX AND ENGELS LOOKED BACKUPON PRELITERATE SOCIETY AS AN INSPIRATIONFOR THEIR IMAGE OF A CLASSLESS SOCIALORDER.

AS NATIONS STRIVE TO BREAK THEIR TIES WITHTHE PREINDUSTRIAL PAST THEIR MEMBERSCOME TO GLORIFY VARIOUS ELEMENTS (EITHERFACTUAL OR FICTIONALIZED) OF AN EARLIERHERITAGE.

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THE POSITIVE DIMENSION OF THE IDEOLOGY THATDEFINES THE GOALS OF THE FUTURE TENDS TO BEAMORPHOUS: THE GOALS ARE NEVER SET FORTH INDETAIL. THIS VAGUENES HAS CERTAIN ADVANTAGES, FORIT PERMITS THE LEADERSHIP TO ADAPT THE UTOPIANIMAGE TO CHANGING CIRCUMTANCES

IN INDONESIA THE GOALS ARE IMBEDDED IN PANCASILA(THE FIVE GUIDING PRINCIPLES), AND UNDER THE “NEWORDER” GOVERNMENT THE DEVELOPMENT STRATEGYWAS NAMED THE TRILOGY OF DEVELOPMENT:

1. STABILITY2. GROWTH3. EQUITY

THE POSITIVE DIMENSION OF THE IDEOLOGY THATDEFINES THE GOALS OF THE FUTURE TENDS TO BEAMORPHOUS: THE GOALS ARE NEVER SET FORTH INDETAIL. THIS VAGUENES HAS CERTAIN ADVANTAGES, FORIT PERMITS THE LEADERSHIP TO ADAPT THE UTOPIANIMAGE TO CHANGING CIRCUMTANCES

IN INDONESIA THE GOALS ARE IMBEDDED IN PANCASILA(THE FIVE GUIDING PRINCIPLES), AND UNDER THE “NEWORDER” GOVERNMENT THE DEVELOPMENT STRATEGYWAS NAMED THE TRILOGY OF DEVELOPMENT:

1. STABILITY2. GROWTH3. EQUITY

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“WE WILL SPARE NO EFFORTS TO FREE OURFELLOW MEN, WOMAN AND CHILDREN FROM THEOBJECT AND DEHUMANIZING CONDITIONS OFEXTREME POVERTY, TO WHICH MORE THAN ABILLION OF THEM ARE CURRENTLY SUBJECTED. WEARE COMMITTED TO MAKING THE RIGHT TODEVELOPMENT A REALITY FOR EVERYONE AND TOFREEING THE ENTIRE HUMAN RACE FROM WANT.”

(MILLENIUM DECLARATION, 2000)

MDGs: NEW INTERNATIONAL DEVELOPMENTIDEOLOGY “WE WILL SPARE NO EFFORTS TO FREE OUR

FELLOW MEN, WOMAN AND CHILDREN FROM THEOBJECT AND DEHUMANIZING CONDITIONS OFEXTREME POVERTY, TO WHICH MORE THAN ABILLION OF THEM ARE CURRENTLY SUBJECTED. WEARE COMMITTED TO MAKING THE RIGHT TODEVELOPMENT A REALITY FOR EVERYONE AND TOFREEING THE ENTIRE HUMAN RACE FROM WANT.”

(MILLENIUM DECLARATION, 2000)

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THE MILLENNIUM DEVELOPMENT GOALS (MDG)WERE DERIVED FROM THE UNITED NATIONSMILLENNIUM DECLARATION, ADOPTED BY 189NATIONS IN 2000. MOST OF THE GOALS ANDTARGETS WERE SET TO BE ACHIEVED BY THE YEAR2015 ON THE BASIS OF THE GLOBAL SITUATIONDURING THE 1990s.

THE MILLENNIUM DEVELOPMENT GOALS (MDG)WERE DERIVED FROM THE UNITED NATIONSMILLENNIUM DECLARATION, ADOPTED BY 189NATIONS IN 2000. MOST OF THE GOALS ANDTARGETS WERE SET TO BE ACHIEVED BY THE YEAR2015 ON THE BASIS OF THE GLOBAL SITUATIONDURING THE 1990s.

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IT IS COMMONLY RECOGNIZED THAT ADMINISTRATIONTAKES PLACE IN VARIOUS SETTINGS; AND PUBLICADMINISTRATION OPERATES IN A POLITICAL ONE. INSOCIETIES WITH LOW DIFFERENTIATION AMONGLEGITIMATE FUNCTIONS AND RESPONSIBILITIES, THEREIS OFTEN FREE OVERLAPPING, MEDDLING, ANDMUTUAL ACCOMMODATIONS BETWEENADMINISTRATIVE AND POLITICAL STRUCTURES.

IT IS COMMONLY RECOGNIZED THAT ADMINISTRATIONTAKES PLACE IN VARIOUS SETTINGS; AND PUBLICADMINISTRATION OPERATES IN A POLITICAL ONE. INSOCIETIES WITH LOW DIFFERENTIATION AMONGLEGITIMATE FUNCTIONS AND RESPONSIBILITIES, THEREIS OFTEN FREE OVERLAPPING, MEDDLING, ANDMUTUAL ACCOMMODATIONS BETWEENADMINISTRATIVE AND POLITICAL STRUCTURES.

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THUS, DESPITE RECOGNITION OF THE MANYDISTINCTIVE OPERATIONAL COMPONENTS OFPOLITICS AND ADMINISTRATION, THEYREMAIN CLOSELY ASSOCIATED. BY THESAME TOKEN, THEY ARE AS TANGLED IN THEDESIGN AS THEY ARE ACCOUNTABLE FORTHE OUTCOMES OF NATIONALDEVELOPMENT ACTIVITIES.

THUS, DESPITE RECOGNITION OF THE MANYDISTINCTIVE OPERATIONAL COMPONENTS OFPOLITICS AND ADMINISTRATION, THEYREMAIN CLOSELY ASSOCIATED. BY THESAME TOKEN, THEY ARE AS TANGLED IN THEDESIGN AS THEY ARE ACCOUNTABLE FORTHE OUTCOMES OF NATIONALDEVELOPMENT ACTIVITIES.

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THE POLITICAL FEATURES OF THE STATE ALSOGAVE THE ADMINISTRATIVE PROCESS MANY OFITS INFAMOUS ATTRIBUTES: HIGHLYCENTRALIZED, BESET BY NEPOTISM ANDPOLITICAL PATRONAGE, AND BURDENED BY ITSOWN WEIGHT OF SWELLED RANKS OF ILL-TRAINED PUBLIC EMPLOYEES (JREISAT 1997A).UNDER THESE POLITICAL FORMS ANDPROCESSES, PROFESSIONAL MANAGEMENT WITHPOLITICALLY-NEUTRAL COMPETENCE IS HARD TOSUSTAIN.

THE POLITICAL FEATURES OF THE STATE ALSOGAVE THE ADMINISTRATIVE PROCESS MANY OFITS INFAMOUS ATTRIBUTES: HIGHLYCENTRALIZED, BESET BY NEPOTISM ANDPOLITICAL PATRONAGE, AND BURDENED BY ITSOWN WEIGHT OF SWELLED RANKS OF ILL-TRAINED PUBLIC EMPLOYEES (JREISAT 1997A).UNDER THESE POLITICAL FORMS ANDPROCESSES, PROFESSIONAL MANAGEMENT WITHPOLITICALLY-NEUTRAL COMPETENCE IS HARD TOSUSTAIN.

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INESCAPABLY, THEN, ADMINISTRATIVEREFORM HAS BECOME CONTINGENT ON THEATTITUDES OF THE POLITICAL LEADERSHIPAND THE DEGREE OF ITS SUPPORT FORREFORM. ALSO, THE MAGNITUDE OF CHANGEAND ITS OPENNESS TO CITIZENPARTICIPATION ARE CRUCIAL FACTORS FORSUCCESS.

INESCAPABLY, THEN, ADMINISTRATIVEREFORM HAS BECOME CONTINGENT ON THEATTITUDES OF THE POLITICAL LEADERSHIPAND THE DEGREE OF ITS SUPPORT FORREFORM. ALSO, THE MAGNITUDE OF CHANGEAND ITS OPENNESS TO CITIZENPARTICIPATION ARE CRUCIAL FACTORS FORSUCCESS.

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CLOSELY ASSOCIATED WITHPOLITICAL DEVELOPMENT ISPOLITICAL PARTICIPATION.

CLOSELY ASSOCIATED WITHPOLITICAL DEVELOPMENT ISPOLITICAL PARTICIPATION.

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CRUCIAL CHALLENGES REMAIN:

POLITICAL CORRUPTION STRETCHES OUT TOINCLUDE POLITICIANS AND LEGISLATURES, WHOARE VIEWED AS BEING PREOCCUPIED WITHSELF-SERVING, NARROW INTERESTS RATHERTHAN WITH THE GENERAL PUBLIC INTEREST.THE PUBLIC DISTRUSTS THE POLITICALPROCESS.

MANY LEGISLATURES HAVE ONLY A POORABILITY TO UNDERTAKE ANY EFFECTIVEOVERSIGHT OF BUREAUCRACY OR TO INITIATESTRATEGIC PUBLIC POLICIES.

POLITICAL CORRUPTION STRETCHES OUT TOINCLUDE POLITICIANS AND LEGISLATURES, WHOARE VIEWED AS BEING PREOCCUPIED WITHSELF-SERVING, NARROW INTERESTS RATHERTHAN WITH THE GENERAL PUBLIC INTEREST.THE PUBLIC DISTRUSTS THE POLITICALPROCESS.

MANY LEGISLATURES HAVE ONLY A POORABILITY TO UNDERTAKE ANY EFFECTIVEOVERSIGHT OF BUREAUCRACY OR TO INITIATESTRATEGIC PUBLIC POLICIES.

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THUS, IT IS NOT SURPRISING THAT CITIZENS OFMANY DEVELOPING COUNTRIES SEEM TO PLACEPRIMARY BLAME FOR THEIR ECONOMIC ANDSOCIAL PROBLEMS ON THEIR POLITICIANS ANDLEGISLATURES. THEY HAVE CONSISTENTLY SHOWN AHIGH DEGREE OF DISSATISFACTION WITHLEGISLATIVE POLITICS. THEY CONCLUDE THATBUREAUCRATIC INFLUENCE IS LARGELY A RESULT OFPOLITICAL WEAKNESS RATHER THAN A CAUSE OF IT.

HENCE THE IMPORTANCE OF POLITICALDEVELOPMENT OR REFORM

THUS, IT IS NOT SURPRISING THAT CITIZENS OFMANY DEVELOPING COUNTRIES SEEM TO PLACEPRIMARY BLAME FOR THEIR ECONOMIC ANDSOCIAL PROBLEMS ON THEIR POLITICIANS ANDLEGISLATURES. THEY HAVE CONSISTENTLY SHOWN AHIGH DEGREE OF DISSATISFACTION WITHLEGISLATIVE POLITICS. THEY CONCLUDE THATBUREAUCRATIC INFLUENCE IS LARGELY A RESULT OFPOLITICAL WEAKNESS RATHER THAN A CAUSE OF IT.

HENCE THE IMPORTANCE OF POLITICALDEVELOPMENT OR REFORM

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