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UNIT 7: THEORIES OF SOCIAL JUSTICE & EFFICIENCY

UNIT 7: THEORIES OF SOCIAL JUSTICE & EFFICIENCY. THEORIES OF SOCIAL JUSTICE. Meaning and Relevance of ‘Social Justice’ in Planning. What is Social Justice?

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UNIT 7: THEORIES OF SOCIAL JUSTICE & EFFICIENCY

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  1. UNIT 7: THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  2. THEORIES OF SOCIAL JUSTICE THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  3. Meaning and Relevance of ‘Social Justice’ in Planning What is Social Justice? • Often associated with creating an egalitarian society that understands and values human rights, and recognizes the dignity of every human beings. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  4. Meaning and Relevance of ‘Social Justice’ in Planning What is Social Justice? • Based on the concepts of human rights and equality and involves a greater degree of economic egalitarianism through, for example: •  progressive taxation, • income redistribution, or • property redistribution. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  5. Meaning and Relevance of ‘Social Justice’ in Planning What is the Relevance of Social Justice in the Theory and Practice of Planning? • Deals with ethics in planning—i.e. moral issues regarding what is right or wrong • Relevant because planning implicitly deals with distribution of societal resources THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  6. Conceptions of Social Justice What are the Different Conceptions of Social Justice? • Social Justice has been conceptualized based on different societal values, e.g. • Rights (i.e. human rights) • Needs • Equity/Equality • Merit THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  7. Conceptions of Social Justice What are the Different Conceptions of Social Justice? • Based on one or the other of the above-listed values, the ff notions can be identified: • Utilitarian Conceptions of Social Justice • Nozick’s Conception of Social Justice • Rawl’s Conception of Social Justice • Macpherson’s Conception of Social Justice THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  8. Utilitarian Conceptions of Social Justice What is Utilitarianism as a Conception of Social Justice? • Utilitarian Value was developed by various philosophers (e.g. Chadwick, Durkheim) to inform planning in Western Europe in the 19th century • When the utilitarian is faced with various choices, he goes in for “that which brings the greatest happiness to the greatest number” THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  9. Utilitarian Conceptions of Social Justice What is Utilitarianism as a Conception of Social Justice? • That is, a planning decision is justified by its ability to “bring the greatest happiness to the greatest number”. • Such a decision is judged by the Balance of General Happiness THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  10. Utilitarian Conceptions of Social Justice Karl Popper’s Critique of Utilitarianism: Negative Utilitarianism • Utilitarianism neglects the Minority. • Karl Popper came out with Negative Utilitarianism as an alternative to Balance of General Happiness THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  11. Utilitarian Conceptions of Social Justice Karl Popper’s Critique of Utilitarianism: Negative Utilitarianism • Negative Utilitarianism encourages decision makers to make policies that minimize suffering rather than maximize happiness. • Thus, while Utilitarians focus on increasing for happiness the ‘Majority’, Negative Utilitarianism emphasizes reducing the suffering of the ‘Minority’ THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  12. Utilitarian Conceptions of Social Justice Application of Utilitarianism • Planning decisions in 19th century and early 20th century based on either Balance of General Happiness or Negative Utilitarianism • However, most were based on Balance of General Happiness. Why? THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  13. Utilitarian Conceptions of Social Justice Application of Utilitarianism • Popper failed to provide a concise comparative judgment definition of ‘suffering’ • Examples of planning decisions based on Utilitarianism: urban renewals, demolition exercises etc. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  14. John Rawls’ Conception of Social Justice What are Rawls’ Main Ideas about Soc. Justice? • Rawls (1971) attempted to solve the problem of distributive justice. • His conception, known as "Justice as Fairness", is based on two principles:  a) the liberty principle b) the difference principle. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  15. John Rawls’ Conception of Social Justice What are Rawls’ Main Ideas about Soc. Justice? • The Liberty Principle (First principle): each person is to have an equal right to the most extensive basic liberty compatible with a similar liberty for others • The Difference Principle (Second Principle): Distribution should give the greatest benefit to the most disadvantaged. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  16. John Rawls’ Conception of Social Justice What are Rawls’ Main Ideas about Soc. Justice? • Rawls also introduced ‘Just Savings’: • each generation’s use of resources not to adversely affect future generations • Just Savings = Inter-generational Equity THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  17. John Rawls’ Conception of Social Justice Critique of Rawls’ Conception of Social Justice • Left (Socialists or Marxist): those who own means of production will not allow it. If they do, it would be for their “enlightened interest” • Right (Capitalists): Too much of intervention in the market • Assumes too much consensus in society—that the rich will agree to distribution against them THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  18. Robert  Nozick’s Conception of Social Justice What are Nozick’s Ideas about Soc. Justice? • He emphasizes individual liberties as opposed to state interference • A distribution is just if it results from free exchange among consenting adults and from a just starting position  • The sacrosanctity of life makes property rights non-negotiable  THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  19. Robert  Nozick’s Conception of Social Justice Critique of Nozick’s Conception of Social Justice • Too conservative and market-oriented • Does not favour the poor, minorities and the disadvantaged THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  20. Macpherson’s Conception of Social Justice What are Macpherson’s Ideas about Soc. Justice? • He sees individuals as members of society and NOT disassociated individuals with market maximizing behaviour. • Goes beyond abstract human rights and focuses on economic and material well-being THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  21. Macpherson’s Conception of Social Justice What are Macpherson’s Ideas about Soc. Justice? • Economic Justice demands state intervention to minimise market distortions • 2 aspects of Macpherson’s Economic Justice: • Commutative Justice • Distributive Justice THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  22. Macpherson’s Conception of Social Justice i. Commutative Justice: • Justice in all exchanges thru just price • Otherwise, govt should intervene ii. Distributive Justice: • Every hh to have income necessary for a decent life • Distribution to be done on merit, not what the market dictates THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  23. Macpherson’s Conception of Social Justice Application • Influenced govt interventions to bring those below poverty line above the line • Consistent with calls for WTO’s intervention to ensure fair international trade • State policies in Scandinavian countries that frown on allowing people to remain below poverty line THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  24. THE CONCEPT OF EFFICIENCY THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  25. Meaning of Efficiency What is Efficiency? • Often used to describe the extent to which we are able to maximize ‘output’ and/or minimize effort through the use of a machine, method, strategy, process, etc THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  26. Meaning of Efficiency What is Efficiency? • Example: • In physics, ratio of useful work performed by a machine to total energy used • In agric, e.g. # of Mt of rice produced per unit of land, labour, etc using a given farming method THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  27. Meaning of Efficiency What is Efficiency? • More complicated when used to evaluate public-sector decisions • 2 popular conceptions: • Pareto Optimality • Kaldor-Hicks Criterion, and. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  28. Pareto Optimality Vilfredo Pareto’s Conception of Efficiency • Used concept in to study economic efficiency and income distribution (1800s) • A resource-allocation decision is superior if it makes at least one person better off without making anyone worse off • Also includes situation in which gainers compensate losers such that no-one is made worse off THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  29. Pareto Optimality Some Key Terms 1. “better off” = "put in a preferred position" 2. Pareto Improvement: Process/act of making at least one individual better off without making any individual worse off THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  30. Pareto Optimality Some Key Terms 3. Pareto Optimality (Pareto Efficiency): further Pareto improvement impossible 4. Pareto Optimal (Pareto Efficient): (adj.) describes allocation that leads to the point where further Pareto improvement is impossible. THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  31. Pareto Optimality Some Key Terms 5. Pareto Inefficient: (adj.) describes situation in which Pareto Improvement is possible 6. Strong Pareto Optimum (SPO): (noun) allocation (decision) that leads to the point of Pareto Optimality THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  32. Pareto Optimality Critique of Pareto Optimality • Does not necessarily result in a socially desirable allocation since it makes no provision for equity or overall well-being of society • Highly idealistic—it hardly happens in the real world THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  33. Kaldor-Hicks Criterion What is Kaldor-Hicks Criterion (a.k.a. Potential Pareto Optimality)? • Proposed by Nicholas Kaldor and John Hicks (working independently) as alternative to Pareto Optimality • Efficient allocation results in gains that exceed any associated losses THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  34. Kaldor-Hicks Criterion What is Kaldor-Hicks Criterion (a.k.a. Potential Pareto Optimality)? • Gainers should only be in a position to compensate losers but do not need to actually do so • That is, it’s OK if there are net gains for society as a whole, regardless of distribution THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  35. Kaldor-Hicks Criterion What is Kaldor-Hicks Criterion (a.k.a. Potential Pareto Optimality)? • The foregoing implies: • Every Pareto Improvement is a Kaldor-Hicks Improvement BUT NOT all Kaldor-Hicks Improvements constitute Pareto Improvements THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  36. Kaldor-Hicks Criterion Critique of Kaldor-Hicks Criterion • Allows for some people to be disadvantaged while others are advantaged THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  37. Kaldor-Hicks Criterion Real-World Application • Implied in use of efficiency to evaluate alternative decisions or do ex-post evaluation of programmes, projects, etc • Cost-Benefit Analysis (NPV, CBR, BCR, IRR) as a classic example—comparison b/n discounted social benefits and costs THEORIES OF SOCIAL JUSTICE & EFFICIENCY

  38. Discussion Questions: Equity vs. Efficiency • Would you consider Equity and Efficiency as social values in public sector planning? • Do you see a conflict between Equity and Efficiency? • Which of the two should be planners’ main concern, Equity or Efficiency? • Should there be trade-offs between Equity and Efficiency? THEORIES OF SOCIAL JUSTICE & EFFICIENCY

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