The History of Development Where it is today and how we got there Nick Renshaw & Mike Scott

1. The History of Development Where it is today and how we got there Nick Renshaw & Mike Scott

2. The Origins of DevelopmentEVENTS • The end of WWII – economic reconstruction in Europe. • Infrastructure destroyed yet Social Capital remained intact • Politically motivated to hat spread of communism. • The Marshall Plan and Bretton Woods Institutions. • Independence for Colonies

3. The Origins of DevelopmentTHEORY • Prebische – colonialism not good for economic development. • Core – Periphery Relationship. • Terms of trade pessimism - countries will not develop through trade in primary products • Import Substitution Policies (inefficient, poorly managed and spread of corruption)

4. The Origins of DevelopmentACTIONS • Large scale projects – World Bank funded • Infrastructure – dams • Trickle Down Theory • Eurocentric and Technocratic approaches ERA OF THE ENGINEERS

5. Mid 1970’s – Late 1980’sEVENTS • 1970’s oil price hike – global recessions - countries cannot repay loans – debt crisis and conditionality • Commodity prices plummet • End of fixed Exchange Rates and financial liberalisation • South East Asian Miracle and growth of FDI.

6. Mid 1970’s – Late 1980’sTHEORY • Neoclassical thought – Milton Friedman, Political Project – Thatcher/Regan/Chile • Markets will clear in the long run • Need to make market prices stable – inflation • Distrust of government and rolling back the state

7. Mid 1970’s – Late 1980’sACTIONS • Structural Adjustment Loans – driven by the IMF and World Bank – Washington Consensus • Problem with the economy is excessive domestic demand (reduces availability for exports and increases reliance on imports) • Reform • Reduction in state activity • Revalue the Exchange Rates • Remove Subsidies and focus on Export led growth ERA OF THE ECONOMISTS

8. Late 1980’s – TodayEVENTS • Widespread disillusionment with Structural Adjustment Policies • Growth not happening – FDI not happening • Widespread Inequality • Debt is unsustainable • Civil Society main vehicle for aid interventions • Collapse of the Soviet Union – domination of market forces

9. Late 1980’s – TodayTHEORY • Pro-Poor Growth and placing Poverty onto the international agenda • Postmodernism – social analysis and the need to include the voice of the poor into development interventions • Development of institutions as the agent for change • Human Capital – education and healthcare

10. Late 1980’s – TodayACTIONS • Millennium Development Goals – halving poverty by 2015. Breaking the business as usual framework. % not absolute measurement • Poverty Reduction Strategy Papers (PRSP) • Participatory Poverty Assessments • Consultation and Partnership • Country ownership • Link with the MDG’s – measurable ERA OF THE SOCIAL SCIENTISTS

11. ODA’s Place in all of this No delusions of grandeur. Trying to interpret the situation as well as possible and act accordingly with whatever resources we can provide. i) The Projects • Community owned – identification and implementation • Small scale, sensitive to the local social context, and immediate impacts • Monitoring and critical evaluation.

12. ODA’s Place in all of this ii) Raising Awareness • Despite widespread media attention, most people do not engage with the issues • Students have a great opportunity to make an impact • Big thinking, getting involved and changing attitudes.