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Development ideas 1. Background The debate on economic development is in one way an old one dating back to the 18th century and the so called ” enlightenment ” era. It is related to different set of problems but refers to a given starting-point :
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Development ideas 1 • Background • The debate on economicdevelopment is in oneway an oldonedating back to the 18th century and the so called ”enlightenment” era. • It is related to different set of problems butrefers to a given starting-point: • Howdowe get rid of poverty and what is progress for societies?
Development ideas 1 • From anotherpoint of view it is a fairly new debate and it becamewidesperead after the second world war. • The reasons for this new popularitymay be due to three different conditionsrelated to new political agendas in the post-war era.
Development ideas 1 • 1 Post-warreconstruction • After the war in Western Europe therewas a questionabout the sustainability of capitalism. The volatile socio-economicconditionsduring the inter-waryearswereblamed for creating the pre-conditions for the war. Ifcapitalismshouldsurvive it has to becomemorestable and guaranteecontinual progress for the population. The hopestood to keynesianmacro-economic policy and variousmethods of planning of economicactivities.
Development ideas 1 • 2 De-colonialization • De-colonizationwhichfollowed the world warraised the questionconcerningwhichway the new independantstatesshouldchoose in order to developtheircountries and reducepoverty. This new independancyalsoraised the question of relations betweenrich and poorcountries, former colonies and former colonialpowers.
Development ideas 1 • 3 Challenge from russian revolution • The influence of the Soviet Union hadincreasedconsiderably in the yearsbetween 1945 and 1950. At the time therewas a growinginterest for the Sovietgrowthmodelbased on a planned investment-driven economy. In the comingdecadestherewas a lot of discussion on the ”competitionbetween the two system” and Soviet Union economyseemed to growvery fast and challenged US economic and technologicalleadership.
Development ideas 1 • The key concept in this discussionwas on economicgrowth. Evenifeverybodydidn´trestrict the problem of development to economicgrowth, it became the focalpoint of discussion: economicgrowthwas the key to economic and social development. • W.W. Rostowsbook ”Stages of economicgrowth: a non-communistmanifesto” waspublished in 1960.
Development ideas 1 • Rostowwas an americaneconomist and advisor to president John F Kennedy. • Heargued that in a capitalist regulatedeconomy all countriesshouldsooner or later come to a ”take-off” for economicgrowthiftheymade the institutional and economic preparations. Every country could not ”take-off” at the same time because the world economyhad not economicspace for everybody att the same time. Just as at an airplane all the plane can´ttake-offsimultaneously.
Development ideas 1 • Western economicgrowth and itscritics • Rostowdefinitelyfavoured an US-led global growthstrategy. • His opponents wereboth ”dependancy”-economists, ”structural” economists and marxists. In variouswaysthesecriticsunderlined the conflictinginterests in the world economy. Dependancyeconomistsfavoured ”de-linking” from the richcountries and marxists stressed the exploitiverelationshipsbetween imperialist firms and states on the one hand and poorcountries on the other. Theyadvocatedmostlyindependacy and central planning.
Development ideas 1 • It was not until the 1970-ties economicgrowthbecamemoreuniversallyquestioned as the key for economic and social development. • The Rom-report ”Limits to growth” stressed the ecologicalcosts of ongoing universal growth. • Amongcritics the britisheconomist F. Hirschs book ”Social limits to growth”(1977) argued that economicgrowth just solve a limited part of development problems and actuallyleads to waste of time and resources. This is becausewebecomeaccustomed to standard rises and webeomeoccupied by a uselesscompetition on ”positional” goods and utilitieswhich is actuallu a zero-sum game.
Development ideas 1 • Development as freedom • Amartya Sens bookargues in a different way. • His background is that as an growtheconomist • During the seventies his interestscame to includeprojectevaluationmethods and the more general problems of poverty. • Healsostudied moral philosophy.
Development ideas 1 • The general idea of the book is included in the openingsentences • ”Development can be seen … as a process of expanding the real freedoms that peopleenjoy. Focusing on human freedoms contrasts with narrowerviews of development, such as identifyingdevelopment with the growth of gross national product, or with the rise of personal incomes, or with industrialization, or with technologicaladvance, or with social modernization.”
Development ideas 1 • The radical break with equalisingeconomicgrowth with development is to note that growth or things are just means for wellbeing. • The developmentshouldrather be understood as the peoplespossibilities to live the livestheyesteem to live. • And the focus of action is to remove the obstacles for this goal.
Development ideas 1 • Key concepts: • Agency • Capabilities • Functionings • Enjoy your readings
