POL SCI 3LL3 Development and Public Policy

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POL SCI 3LL3Development and Public Policy

• Models of Development

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Model

• Small-scale and simplified representation of some
  aspect of the real world
• Indicate how different parts constitute the whole
• Actual or physical representation, e.g., a model
  airplane or tabletop buildings
• A diagram, e.g., a road map or flow chart

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Models of Development

• Inform about the process of development
• Help understand the process
• Assist with preparing plans for countries to
  develop
• Governments can pick and choose strategies and
  learn what should or should not be done

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Models and Theories

• Stages of Development
• Modernization
• Dependency
• Neo-Marxist
• Market-Based

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Stages of Development W.W. Rostow

• 1. Traditional Society
• 2. Pre-Conditions
• 3. Take-off
• 4. Drive to Maturity
• ALSO, mass consumption and post-mass consumption
  stages

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Stages of Growth Rostow

• A country can be placed in one of five categories
  in terms of its stage of growth
• Traditional Society
• economy is at subsistence level
• there is a system of barter
• highly dependent on agriculture

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Stages of Growth Rostow

• 2. Pre-conditions
• development of basic industries
• increased use of capital in agriculture
• external funding required and sought
• small degree of growth in savings and investment

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Stages of Growth Rostow

• 3. Take off
• increasing industrialisation
• continued growth in savings and investment
• number of people employed in agriculture declines

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Stages of Growth Rostow

• 4. Drive to Maturity
• growth becomes self-sustaining
• wealth generation contributes to further
  investment in industry
• industrial diversification takes place
• there is increase in levels of technology utilised

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Observations on Rostows Model

• The model takes a simplistic approach all
  societies may not follow a similar linear path to
  development
• The model does not recognize the importance of
  financial infrastructure that can channel savings
  to investment

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Observations on Rostows Model

• The model neglects the role of other
  infrastructure (human resources, roads, rail,
  communications networks) in development
• There is no discussion of directing investment
  toward productive use
• Rostows argument that countries would learn from
  one another is open to question

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Modernization Theories(Assumptions)

• Derives from ideas of evolution
• Believes in international division of labour
  high and low value activities
• Development occurs with changes in a certain
  direction

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Modernization Theories(Assumptions)

• Inhabitants of tropics had to be led, educated
  and administered
• Inhabitants of temperate zones led because they
  were presumed to be industrious, creative, and
  culturally superior (B. Kidd 1898)
• Democratic countries of the West have attained
  high levels of civilization and the rest of the
  countries must emulate them

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Other Elements of Development

• Civic culture embodying democratic ideals (G.
  Almond and S. Verba)
• Modern personality embrace science, democracy,
  and laissez-faire capitalism (D. Lerner)

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An Example Colombo Plan

• Effort for co-operation to promote economic and
  social development in the Asia-Pacific region
• The objective was to raise the standard of living
  of the people in the region
• Governments in the region were to work in
  collaboration to achieve development

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Colombo Plan

• Strategy of massive infusion of capital (grants,
  aid, direct investment) to revitalize free
  enterprise
• This was to be achieved by rebuilding rural and
  agrarian infrastructure of Asian economy
• RESULT CONDITIONS HAVE NOT IMPROVED

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Modernization Theories Observations

• Suggests that all societies follow a linear path
  to the same level of development
• Believes that development is primarily a function
  of external factors
• Views the state as a reflection of a
  community-wide consensus

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Modernization Theories Observations

• Tends to ignore processes that lead to conflicts
  of interests
• May alienate a large segment of the population
  from the political system
• Often contributes to the rise of revolutionary
  movements
• COMMENT FACILITATES INTERNATIONAL DEPENDENCE

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International Dependence

• International division of labour from colonial
  past
• Political decisions dominated by wealthy and
  powerful groups who prefer to maintain the status
  quo
• These groups have considerable influence over
  international organizations dominant in the field
  of development, e.g., World Bank, International
  Monetary Fund, United Nations, World Trade
  Organisation

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Dependency Theories

• Core (developed) nations exploited periphery
  (developing) nations
• Unequal terms of trade
• Periphery is a source of raw materials and cheap
  labour

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Dependency Theories

• Core is an exporter of manufactured goods
• Periphery is a vast market for capitalist
  products
• Core controls periphery through aid, trade and
  investment
• Periphery doomed to remain in their agricultural
  and pre-industrial state

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Dependency Theories Observations

• Problems related to past history
• Disparity in wealth between rich and poor
  countries perpetuated by rich countries
• Conditions of international trade further widens
  the disparity

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Dependency Theories Observations

• International debt crisis contributes to the
  problem
• International agencies are unable to help
• Needs of developing countries are not understood
• Developing countries received poor advice on
  borrowing conditions, use of aid and investment

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Dependency Theories Observations

• Developing countries were unable to solve the
  debt crisis
• Protectionist policies and practices affect
  development of poorest countries
• COMMENT DEPENDENCY THEORIES IDENTIFY CAUSES,
  BUT OFFER NO SOLUTION

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Neo-Marxist Views

• Self-serving interests of core countries are the
  obstacles to development
• Some believe revolutionary movements are the most
  effective instruments for change
• Others prefer to adapt socialist movements and
  parties within a pluralist political framework

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Market Based Theories

• The market should be allowed to operate free from
  interference
• Prices are determined on the basis of demand and
  supply
• Development depends on the extent to which the
  market is able to function independent of the
  state

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Market Based Theories

• Government should
• encourage enterprise
• reduce regulation and inefficiencies
• establish ownership of property rights
• adopt a minimal role

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Market Based Theories Observations

• Risk of market failure externalities, monopoly
  power, nature of public goods
• Absence of infrastructure education and health
  facilities, public transport, legal system

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Market Based Theories Observations

• Problems of equity in allocation distribution of
  wealth, income, and benefits
• COMMENT MARKET AND PRIVATE SECTOR ARE NOT
  ADEQUATELY DEVELOPED IN MANY COUNTRIES

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Summary

• Development perceived in different ways
• There are several models and approaches, and each
  has its strengths and weaknesses
• History, social, economic and political
  conditions vary across countries
• Goals and strategies of development need to take
  them into consideration
• An integrated approach and international
  collaboration is necessary

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• Thank You