Development
Communication
Unit-I
Development
1. Concept,
Definition of Development
Development
Development - means a progression from a
simpler or lower to a more advanced, mature, or complex form or stage. It is also defined as the gradual
advancement or growth
through a series
of progressive changes.
Development is a process, not a level.
It is a path to achieve certain
goals.
Definition of Development
The act of developing or disclosing that which is unknown; a gradual unfolding
process by which anything is developed, as a plan or method, or an image upon a photographic plate; gradual advancement or growth through a series of progressive changes;
also, the result of developing, or a
developed state.
In
the broadest sense development can be defined as an upward directional movement
of society from lesser to greater
levels of energy,
efficiency, quality, productivity, complexity, comprehension, creativity, enjoyment and accomplishment.
Let's be clear about what we actually mean
by "development." Development can be distinguished from a closely related term,
"growth." Just like development, growth is a form of progress, yet development is of a higher order. Think of
growth as an expansion of more of the
same, whereas development is an expansion at a higher level. Whereas growth is an expansion
at the current level, development is an expansion at a new,
unprecedented level. For example, in business we might think of growth
as a duplication of a retail store model into dozens of franchise operations; whereas development
was the actual development of the franchise concept in the first place.
Development is more of
a movement to a higher qualitative level, whereas growth is a quantitative
movement.
Meaning of Development
Development
is a process, not a level. It is a path to achieve certain goals. There is no
consensus among economists as to what
constitute economic development.
Economists who looked at development from structural change
angle defind economic
development as economic
growth with structural change in favour of non-agricultural activities.
Some economists emphasized the need for institutional changes to bring about structural transformation. By institutional changes they ment facilitating institutions like appropriate policies,
systems of governence, markets, attitudinal changes.
etc. In this angle economic
development is economic growth plus something.
Process of development
Development occurs slowly over time.
It is mostly an unconscious phenomenon that occurs
on an irregular basis, with zigs and zags, with forward motions and
setbacks. On the other hand, if one were
to discover the process of how development occurs, and utilize this process in
developing policies, strategies, and action plans for society and nation,
we could eliminate
the irregularities
and meanderings of development, eliminate
the negatives that block its path, and more
positively control its ever accelerating course.
At
the outset it is necessary to introduce the concept of development.
Traditionally, economics had focused on increase in income as the main source
of well being of individuals and hence
the sole index of development. This continued till the 1980’s, when Amartya Sen
showed us that there are a wide range of deprivations of individuals and hence
of nations in health, education and living standards, which cannot be captured
by income alone.
Prof.
Amartya Sen has pointed out that there cannot be any doubt, given other things,
an increase in the supply of food, clothing, housing, medical services,
betterment of educational facilities etc make a contribution to the well-being
of the people. It was therefore quite
natural that the early writings on Development, when it emerged as a subject after the World War
II, concentrated to a great extent on the ways of achieving an increase in
income and employment.
This
brings us to the distinction between economic growth and economic development.
The increase in income, mostly measured by an increase in gross national
product (GNP) of a country falls within the domain of economic growth.
GNP
is an estimate of the total value of all the final products and services
produced in a given period of time by the means of production owned by a
country’s residents. GNP (normally denoted by Y) is commonly calculated by
summing up the personal consumption expenditure (C), private domestic
Investment (I), Government Expenditure (G), Net Exports (Exports minus Imports
or X-M) and Net Earnings from Abroad (Earnings from Overseas economic
activities by Indians minus Income Earned within the Domestic Economy by
Foreign Residents or F). This can be denoted by a simple equation:
Y= C+I+G+(X-M)+F
GNP
and GDP both reflect the national income of an economy. The main difference is
that GNP (Gross National Product) takes into account net income receipts from
abroad.
·
GDP (Gross Domestic
Product) is a measure of National Income (i.e., the identity national income = national output
= national expenditure produced in a particular country.
·
GNP = GDP + net income
from abroad. This net income from abroad includes dividends, interest and
profit.
·
GNP includes the value of
all goods and services produced by nationals – whether in the country or not.
GNP
of a country is a criterion for quantifying economic growth. The process of
economic development cannot ignore the increase in food, clothing and so on. But there are many other variables that influence
living conditions of the people, expand their
life expectancy and overall
well-being. These other variables bring us into the wider
arena of development, which among other things is concerned about the
distribution of these improvements in the society, not just their simple
quantification or measurement. That is the reason why development consists of
more than just improvements in the well-being of the citizens, but conveys
something about the capacity of economic, political and social systems to facilitate the sustainability of such
well-being on a long term basis. Sen’s view is that development must be judged
by its impact on people, not only by changes in their incomes, but more
generally in terms of their choices, capabilities and freedoms to achieve their
goals or ends. Here Sen points out that even when difficulties in distribution
and other problems are overcome, development has to be measured by the actual
achievements themselves, and not just by a quantification of the means of such
achievement.
Concept of Development
Development is about respecting very
fundamental human values and finding the means to extend the fruits of these
values to the greatest majority of the world population. According to Prof.
James M. Cypher, these human values include:
·
The opportunity for meaningful employment,
under honorable conditions, and the possibility to provide for one’s self and
family;
·
Employment under conditions that comply
with the following four core labour standards of the International Labour
Organization (ILO): (1) freedom of
association and the effective recognition of the right to collective
bargaining, that is the right to form trade unions; (2) elimination of all
forms of forced or compulsory labor; (3) effective abolition of child labor;
(4) elimination of discrimination in respect of employment and occupation;
·
Sufficient food, shelter, and other amenities
for a decent and meaningful life above the poverty line;
·
The opportunity to pursue education
of one’s own choice and the increased quality of life it promises;
·
A reasonable level
of health care;
·
Social security for old age;
·
Democracy
and political participation in the life of the community and society;
·
Equal treatment under the law and in the economy,
regardless of race, gender, class, ethnicity, religion,
nationality, or other differences; and
·
Respect
for individual dignity.
In a nutshell, however, the need for
development is summarized by Amartya Sen. According to Amartya Sen, economic
development is needed mainly for two reasons:
(1) The removal
of poverty through
enhancement of human capabilities
(2) Enjoyment of freedoms.
For
the removal of poverty, capabilities of the poor should be enhanced so that
they should be able to meet their minimum basic needs which include getting
adequate food, clothing and shelter, health and education. Therefore, for
removal of poverty, direct anti-poverty measures such as generation of enough
employment opportunities are taken by the government.
Secondly,
as emphasized by Amartya Sen, development is needed so that people should enjoy
freedom and a life of valued functioning. To quote Amartya Sen, “The valued
functioning may vary from elementary ones, such
as being adequately nourished and being free from avoidable diseases to very
complex activities such as being able to take part in the life of the community
and having self-respect”. Thus, according to Amartya Sen, freedom of choice,
and control of one’s own life are central aspects of well- being for which true
development is needed.
To
achieve all these, economic growth is a necessary but not sufficient condition
and herein lies the importance of development.
Concept and Definitions of Development
Social
and economic development as processes is inherent to a society right from its
inception. However, the emergence of the concept of development is a recent one dating back to the early nineteen
fifties. The post Second World War period and
the period of decolonization witnessed the emergence and the
dominance of the concept of “Development” in academic literature. The
declaration of 1960s as the Development decade by the United Nations led to a burgeoning of literature on the concept.
Initially development was conceived as an exclusive economic term referring to
“growth”, “increase in per capita income” etc. But soon it was felt,
development cannot be thought of in a one- dimensional way having economic
implications. It should affect the
other dimensions of the society. Since then development became a sociological
lexicon. Simply speaking
development came to be interpreted
as a process that is for
the benefit of the society and only economic growth minus societal progress
cannot be termed as development. Development thus stands for improvement in
quality of life and conditions of living.
In
general terms, “development” means an “event constituting a new stage or a
changing situation”. “Development” is implicitly intended as something positive
or desirable. When referring to a society or to a socio-economic system,
“development” usually means improvement, either in the general situation of the
system, or in some of its constituent elements.
The
concept of development though was not explicitly used, finds its essence in
August Comte’s ‘Law of Three Stages”, in Herbert Spencer’s evolutionary theory,
in Emile Durkheim’s ideas on the
progress of society from mechanical to organic
solidarity, in Karl Marx’s ideas on the progress of societies through
different epochs and Max Weber’s ideas on the growth of modern capitalism.
But
it was in the post Second World War
period and the subsequent process of decolonization, the concept of “Development”
got a momentum. During this period, the pro active role of the International
agencies in assisting the war affected nations to rebuild their economies, the
nation building process initiated by the newly liberalized countries gave a boost to the concept of development.
The
word “develop “has come from an Italian word “voluper” meaning to unwrap or
unfold. The definition of ‘development’ has been always controversial over
time. As Thomas argues, development as a concept is ‘contested, complex, and
ambiguous’.
“Although development has been a constant concern of governments,
policymakers, economists and other social scientists – and has touched the lives
of more people
than ever before
– there has been little
agreement on what constitutes development, how it is best measured and how it is best achieved. One reason for this lack of
agreement is that dissatisfaction with the pace and character of economic and social change has instilled
a desire to redefine the aims and measures of
development.”(UNDP 1990, 104) Development can be defined as the process of economic
and social transformation that is based on complex cultural
and environmental factors and their
interactions.
Thomas (2000) explains
three ways the word ‘development’ is used.
·
Development
as a vision: a vision or description of how a
desirable society should be.
·
Development
as a historical process: social change
that takes place over long periods of time due to
inevitable processes. Here development refers
to the unavoidable results of progress like agricultural to industrial society.
·
Development
as action: deliberate efforts to change things
for the better and to ensure a better standard of living like providing food,
education, health services etc.
To
Prof. Yogindra Singh “Development is a strategy of planned social change which
is considered desirable by the members of a society.”
1.0.1. Characteristics of Development
The following are the important
characteristics of development.
1. Development is a continuous process
The process of development continues from the moment
of inception of the society. The society always marches forward. Sometimes the process of
development
is faster and under some situations it slows down. However, it witnesses no
complete halting point. It is ongoing in nature.
2. Development follows a pattern
Development
occurs in an orderly manner and follows a certain sequence. Thus, primitive,
medieval and modern are the
different phases of development of the society. The society cannot skip one
stage to reach at the other in the process of development. The pattern is
always maintained.
3. Development has a direction
It
runs as corollary from the above said feature that the process of development
follows a definite direction. The direction is always forward and never
backward. August Comte’s “Law of Three Stages”, Herbert Spencer’s proposition
that the society moves from a simple to the complex one, Ferdinand Tonnies’s
idea that the society transits from community to association, Emile Durkheim’s
proposition that the society makes a shift from mechanical to organic
solidarity and Karl Marx’s idea that the society progresses from a class to a
class less society amply justify the directionality involved in the
process of development. It also
impresses that in the process of development, the society progresses towards maturity.
4. Development can be evolutionary or revolutionary in nature
Development
when occurs in a slow and gradual manner it is said to be evolutionary in
character. Evolutionary development takes its natural course, time and in not
very spectacular in nature. In the long run the impacts of development become
visible. On the other hand, revolutionary development refers to the abrupt and
rapid change in the society. Revolutionary development is triggered by some
factors like education, migration in large scale, introduction of policies etc.
Revolutionary development is marked in a quick span and is vividly visible in
nature. For example, transition of a society from pre modern to modern is
evolutionary development, but transition of a society from monarchy to
democracy due to some revolution is revolutionary in nature. Even the
developments taking in India in the post globalization period can said to be
revolutionary.
5. Development is multidimensional
The
conventional notion of development always insisted upon the uni dimensionality
of the concept of development focussing on economic growth. However, later on
it was felt economic growth is a parameter of development, but not the sole or
whole of it. At this moment the social scientists and development practitioners
felt that development has to be multidimensional touching various
aspects of the society. So that it can become better yielding in nature.
It should not confine itself
to the economic dimension, but should
have its political, cultural and social dimensions too. Its political dimension
is expressed through the process of democratization, distributive justice;
increased consciousness for human rights, equity, liberty etc. The cultural
dimensions of development is manifested through the growth of secular culture,
increased consumerism etc. The social dimensions of development include
increased participation of people in societal affairs, development of self reliance, better human development
and environmental sustainability, etc.
6. Development is universal, but not uniform
Development
is a common process witnessed by every society however primitive or modern it
is. Every society witnesses the process of development in some form or the
other. Time and space cannot arrest it. Right from the beginning of the society
development process is initiated. The rich and the poor societies, the most developed and the most under developed
societies too experience it. In some societies it is faster while in some societies
it is slow. In some societies the yields of development are more remarkable
than other societies. So, the process is universal, but the outcome is not
uniform.
7. Development insists upon adaptability
Development
as process is driven by human needs. Human needs change with the changing time
and situations. The process of development demands the existing institutions to change and adapt to the upcoming demands to fulfil the emerging needs of the individuals.
For example: with the process of industrialization there was increased
migration which required the institution of joint family to disintegrate
structurally.
8. Development stands for dynamism
Development
necessarily entails change. It brings changes in the status quo of a society. No development process can be
imagined without bringing subsequent changes. Thus, the concept
of development is against the notion of static.
9. Development is irreversible
Development
as a process is always forward looking and has no look back. There may be
temporary stalemates but once a society is into the process of development, it
will never revert back to its original state. So development is always
progressive.
10. Development is diffusive
Development
never remains concentrated in the place of its origin. It has a natural
tendency to spread beyond its place of origin. The best example of it is that
when a new technology is innovated, very soon, it spreads to other areas beyond
the place of its origin.
11. Development always has positive
yields
The
outcomes of development are always positive. It is for the betterment of the
society. Development thus is progressive. But sometimes when development
outcomes are used by human beings in a negative way its consequences become
disastrous. For e.g. Development of technology necessarily improves human
quality of life. But when men blindly use it for destructive purpose the
outcomes become sorrowful.
12. Development has got its qualitative and quantitative connotations
Development
as a process can be judged through the qualitative improvement human conditions
of living. For example when there is a reduction of house hold drudgery for the
women we find a qualitative change in their living conditions and term it as
development of women. Similarly when there is a quantum lift or there is an
increase in number of some institution, then also we feel the impact of development. For example the increase in
the number of
educational
institutions is also described as development.
Thus the qualitative aspects of development are felt while the
quantitative aspects of development are observed.
2. Measurement
of Development
How to Measure Development?
There's no single perfect way to measure development. Different
approaches use various indicators depending on the focus (economic, social,
etc.). Here's a breakdown of some common methods:
- Economic
Indicators:
- Gross Domestic Product (GDP) per capita: This
is a widely used measure of economic output per person. However, it
doesn't consider income distribution or quality of life.
- Other economic indicators: These
can include unemployment rates, infrastructure development, and openness
to international trade.
- Human
Development Index (HDI): This is a comprehensive index created by
the UN Development Programme (UNDP). It considers three key aspects:
- Life expectancy at birth: Reflects
health standards.
- Mean years of schooling and expected
years of schooling: Measures educational attainment.
- Gross National Income (GNI) per capita
(PPP): Represents standard of living,
adjusted for purchasing power.
Beyond the Numbers:
While indexes like HDI provide a valuable starting point, development is
multifaceted. Some factors not easily captured in numbers include:
- Environmental
Sustainability: Preserving natural resources for
future generations.
- Gender
Equality: Equal opportunities and rights for
women and men.
- Political
Stability and Security: A peaceful environment fosters
development.
3. Characteristics
of Developing and Developed Countries
Characteristics of developed and developing countries:
Developed Countries
- High
GDP per capita: Developed nations have a strong and
stable economy, with a high Gross Domestic Product (GDP) per capita. This
means citizens generally have a high income level.
- Strong
infrastructure: Developed countries have
well-developed infrastructure, including transportation networks (roads,
bridges, railways), communication systems (telephone, internet), and
reliable utilities (electricity, water).
- Advanced
technological development and innovation: These countries
are at the forefront of technological advancement and invest heavily in
research and development.
- Highly
educated population: A well-educated workforce is
crucial for a developed economy. Developed countries typically have high
literacy rates and strong education systems.
- Diversified
economy with a strong service sector: The economies of
developed countries are not reliant on a single industry. They tend to
have a mix of industries, with a significant portion focused on the
service sector (finance, healthcare, education, etc.).
- Stable
political and social systems: Developed countries generally have
stable political systems and low levels of crime. This creates a
predictable environment for businesses and individuals.
- High
standard of living and quality of life: People in
developed countries tend to enjoy a high standard of living, with access
to quality healthcare, education, and other necessities. There's also a
focus on environmental regulations and protections.
Developing Countries
- Lower
GDP per capita: Developing countries have a lower
GDP per capita compared to developed nations. This reflects a lower
average income level for citizens.
- Less
developed infrastructure: Infrastructure in developing
countries may be limited or less reliable. Transportation, communication,
and utility networks may be underdeveloped.
- Limited
technological advancement: These countries may have limited
resources to invest in cutting-edge technologies and research.
- Lower
education levels: Literacy rates and educational
attainment may be lower in developing countries.
- Economy
reliant on agriculture or primary industries: The economies of
developing countries often rely heavily on agriculture or primary
industries (mining, logging) for exports.
- Political
instability or social unrest: Some developing countries may face
political instability or social unrest, which can hinder development
efforts.
- Lower
standard of living and quality of life: People in
developing countries may have limited access to healthcare, education, and
other basic necessities. Environmental regulations may also be less
stringent.
4. Theories
and Paradigms of Development
Theories and paradigms of
development – unilinear and non-unilinear Unilinear World View of Development
The
unilinear world view of development simply means that underdevelopment is a
condition preceding development. All
developed countries are late comers to the process of development, which had already taken place in the
developed West. The Western developed countries followed some kinds of processes, and, they have achieved a kind of standard of living. The people of these countries enjoy certain consumer
items, which are not easily
available for the common men living in other parts of the world, at an affordable
cost. Because of their tremendous influence on the world bodies and international scene, the Western countries have
become models of development for the underdeveloped or developing countries. It suggests, therefore, that development is becoming more like the West or like the already developed
countries. For becoming
like the West, there
are certain institutional or economic hurdles, whose removal will initiate the
development process in the underdeveloped countries. Institutional or economic hurdles
could be dictatorships, monarchy, and a closed type of economy
like that of Burma, India, and China, to some extent. On the
contrary, the "non-unilinear world-view of development" suggests that
development is not becoming like the
West. Under the changed historical conditions, it may not be possible for the less developed countries to become like
the already developed countries. These less-developed countries shall have to find an alternative path of
development.
Types of Unilinear Theories
Theories
falling under the unilinear world-view may be divided into two broad
categories. First, there are those theories, which consider development as harmonies and non-contentious processes. The development process
benefits all rich as well as poor people, and rich as well as poor countries. There is more harmony between different groups of people and
different countries. The second category
of theories consider
development essentially as a conflicting process. These theories
refer to the rich
exploiting the poor as
much as the rich countries exploiting the poor.
Mainstream Paradigm
Theories
under category which suggest development to be a harmonies process, lead to two paradigms: one which advocates state
intervention or active role of the Government run an essential requirement for development. Most of the modem
theories of development that have emerged during the post-we
years come under this paradigm.
This may be called as the 'Mainstream Paradigm'.
Counter-revolution Paradigm
The
other paradigm, which emphasizes non-intervention by the state or
non-involvement of the government, and advocates the efficiency of the market (the forces
that determine demand,
supply, and the cost, pricing,
and production of goods, commodities and services) in promoting development, which favours "free market" for developments, is called as the 'counter-
revolutionary" paradigm.
The Structuralist Paradigm
Similarly, within the category
of theories, which consider development essentially as a contentious and conflict-ridden process, we find two
paradigms. The structuralist paradigm suggests that underdevelopment is a consequence of the internal
as well as the international structure (system of production).
Internally, the less developed countries are totally dependent on the
production and export of primary products
(raw materials, like oil, sugar, tea, rubber,
iron and other minerals etc.).
On the international front, the developed countries
(capitalist West) produce
and export "manufactured" goods. Now, the'
low level of technology and industrialization, the low elasticity of demand and adverse terms of trade
(the West protecting its manufactured goods through trade tariffs, and buying the primary products
of the less developed countries at low prices, has had to the exploitation of the less-developed
countries by the developed countries. Therefore, these theories suggest that if the less developed
countries want development, they are required
to change the structure (system)
of production increasingly in favour of manufactured goods through capital
based technology and industrialization. Once the 'underdeveloped'
countries do this, they too can developed like the
West.
The Orthodox
Marxist Paradigm
On
the other hand, the Orthodox Marxist Paradigm considers that conflict and
contradictions in the development of
capitalism are inevitable, and that these can only be resolved through a revolution, which will then usher in the
next phase of development.
Types of non-unilinear theories
If
we turn to the theories under the "non-unilinear world view", here
too we can subgroup the theories into
two paradigms: one, the populist paradigm and the other the neo-Marxist
paradigm. Thus, we can broadly
classify two "World-views of development", the unilinear and the non- unilinear, in six paradigms, viz., the mainstream paradigm, the counterrevolution, the Structuralist, the Orthodox Marxist, all the four
belonging to a Unilinear World View. The populist and Neo- Marxist
are the two paradigms of "non-Unilinear world View".
Unilinear World-view of Development
We
shall discuss, briefly, the important features of the theories of development
under each paradigm and their implications for the strategy
of development in the Third
World countries. We shall
discuss the main features of each and every
paradigm of the unilinear world-view of development. Let us start with the mainstream paradigm.
i)
Mainstream
Paradigm: Of those paradigms, which project
development as becoming more like the
West and developing countries as late-comers to the process, with certain initial conditions, which should be
overcome to experience transition to development, the more familiar is what could be described as the 'Mainstream
paradigm'. It includes most of the
familiar development theories like the "big-push' ' or "balanced
growth" theory of Rosenstun
Rodan, the "vicious circle" theory of Ragnar Nurks, the
"unbalanced growth theory of Alber Hirsheman, the "dulasim" theory of Arthur Lewis, the "stage theory" of
W.W. Rostow and the "neo-Malthusian" theory
of Harvey Leibenstin. (For an ‘explanation of some of these
theories, see Glossary).
In
spite of differences in the framework, point of emphasis etc., there are
certain aspects, which are common in
these theories, the most important resource for development is savings
or accumulation of capital. The transition from underdevelopment to development is essentially a process of moving from low savings
ratio of about
5% of the GNP to a high
savings ratio of about 12% or more. "Development is a process of
transforming an economy, which is
predominantly agriculture-based and other related primary activities, towards
predominance of industry
and non-primary activities."
Therefore,
these theories describe the initial conditions or barriers responsible for the
low savings, and suggest strategies to overcome those hurdles, which would put the underdeveloped countries on the path of development like the West.
The persistence of the low savings is due to the vicious
circle of poverty:
low income, low savings, low investment, low productivity, and low income.
There
is also the vicious circle on the demand side like the low inducement to invest because
of the low level of
productivity due to low level of investment.
Once
this low savings syndrome is overcome, then aid or foreign investments help in
a sustained development, either through
balanced investment or investment in the unbalanced sectors that would
set up inducements and pressures.
In
the process of mobilizing savings and channeling the same for development, the mainstream theories consider state
intervention, either through
the governmental planning
or state programmes, as essential. Most of the newly independent countries have embarked
upon the development strategies, which were inspired by the theories of
the mainstream paradigm.
ii)
Counter-revolution
Paradigm: In contrast, the Counter-revolution
paradigm considers the state
intervention as the cause of inefficiency and distortions in the resouxe use. According
to this paradigm, the state intervention through? Licensing and regulation leads
to 'directly unproductive profit seeking', corruption, and red tape.
Minimizing the state's role, and
allowing the market to play the role in allocation of resources, would improve efficiency, competitiveness, and rapid
growth. This paradigm has gained some popularity only in the 1980s, by which time there was widespread disenchantment with the interventionist policies. In recent years,
this paradigm is at the basis of the package of liberalization that is recommended by the World Bank and the
International Monetary Fund. The Structural paradigm: The origins of the structuralist paradigm could be traced to the writings
based on the Latin American
experience. There are two variants
of the structuralist paradigm, one refemng to the distortions internal structure,
and the other pointing to the global
or international structure, It is the 'international structuralism' of the Rural
Prebisch that is more familiar. According to the paradigm, the world is divided
into the developed capitalist countries
forming the core of 'the Centre', and the underdeveloped countries forming the theory over the years, there emerged a
division of labour with the Centre
producing and exporting manufactured goods and the Periphery depending on the production and export of the
primary products. While the income elasticity of demand for high
technology and high
Productivity-based
manufactures is high, it is low for the primary products. As a result, while the demand for the manufactured
goods increased faster, ensuring higher prices for their exports, the demand for the primary
products increased slowly,
and the export prices did not keep pace with the rise in the
prices of imported manufactured goods. There was, in the long-run, deterioration in the terms of trade of the
primary exports from the less- developed
countries. All the benefits, technical progress and productivity flowed to the developed
center, keeping the periphery in a continued state of underdevelopment.
To break
this structural distortion and to initiate
the development process
in the periphery, it is
necessary to pursue a policy of protection to the manufacturing sector from the developed countries. The strategy directly
flowing from the structuralist paradigm is Import Substitution Industrialization (ISI). Though
it has caused sufficient problems
later, the IS1 was a very popular
strategy of development, particularly in Latin America.
iii)
Orthodox Marxist
Paradigm:
The familiar Marxist
concept of development is associated with the five epochs or stages: (i)
Primitive Communism, (ii) Ancient Slave State, (iii) Feudalism, (iv) Capitalism, and (v) Socialism. Each of these
epochs is marked by a corresponding
mode of production. Development, in this framework, may be viewed as one of
transitions from feudalism to capitalism.
The
Orthodox Marxist theory also visualized the future of the underdeveloped
countries, entirely in terms of the
developed capitalist countries. Karl Marx wrote that "the country that is more developed, industrially, only shows to the less developed the image of its own future."
It is such an image of development that led Marx and Engels to believe that the capitalist colonial expansion would result
in the spread of development of capitalism in
the countries.
Contrary to such expectations, as capitalism spread all over the world,
a greater part of the world
has experienced only its disintegrating effects, without benefiting from its
creative side. Moreover, the united
industrialisation of the West was possible only at the expense of the so-called underdeveloped world,
which was doomed to stagnation and regression.
The classical Marxist writings, by concentrating on the European
experience, anticipated the spread of development and not underdevelopment. They did not have much to say on
the
process of underdevelopment. There appears to be not much analysis of the
historical experience .of the
colonial countries in Asia and Africa. Hence the criticism that Marx's writings were Europe-centric, denying all the
history and experience of the colonial countries.
Non-Unilinear World-view of Development
So
far, we have discussed how the developing countries could attain the status of
the developed countries. We have said that the process
adopted by many Third World countries is unilinear moving from one
step to another logically. Now, here, we shall
discuss some paradigms which are not unilinear. Their nature is not that
systematic. So, let us move
ahead.
a)
Populist
Paradigm: The term “popu " is used here in
the absence of any other term that is adequate to describe this approach. Tine theories under
the "Populist" approach
question
Either the need or possibility of the less-developed counties developing on the lines
of the Concept of Development
already developed capitalist countries. The Gandhian thinking on the appropriate development for countries like India, and some contributions from someone like E.F. Schumacher, who wrote Small is Beautiful, may be considered as part of the "populist" paradigm.
Gandhi
thought that the Western type of development had nothing to commend to societies like India. His contention was
that the Western industrialization had brought
along with it immortality, crime,
and cultural degeneration. "Development in a country like India should make the village as the centre,
and provide employment and livelihood through a network of cottage and village industries. 'Gram Swaraj' or 'village united development' would not only ensure
against the evils of industrialization and urbanization,
but also absorb millions of people without uprooting them from their appropriate village industries.
The
contribution of Schumacher is also inspired by the Gandhian thinking. It is
well- known through his book, small
is Beautiful. The two severe problems of the less developed countries, according to him, were mass unemployment
and mass migration to the urban
areas. Much of the Western type of industrialization initiated in the less developed countries helped only a fraction
of the population living in the urban areas,
while the mass of population living in rural areas were bypassed. Thus,
in the less developed countries,
there emerged what is known as "dual economics" of urban and rural areas, each within different
patterns of living, widely separated from each other, living as two different
worlds. That the rural masses
would be absorbed
by the Western type of industrialization is utterly unrealistic. What is needed
is creation of appropriate technology that would promote
employment opportunities through a
network of small
production
units, a primary condition for such a development involves education, organization, and development.
Populist
paradigm is discussed as an alternative strategy by not housed by any less- developed
country. This is partly because
of the dominance of the mainstream paradigm in the initial stages of
independence, and the creation of an impression among the people
that development means becoming like the West.
After raising such false
hopes, any attempt to adopt a Gandhian or "populist" alternative
strategy, it is feared, would not be liked by the people,
Most of the less developed
countries hold on to the "mainstream" paradigm, its failures notwithstanding.
b)
Neo-Marxist Paradigm: A serious challenge
to the unilinear world-view of development did not arise until the emergence of the neo-Marxist paradigm. There are quite
a few economists who can be called neo-Marxist, but here, we are concerned with the writings
of Paul Baran,
A.G. Frank, and the related6'dependency theory". An attempt is made
here to capture the neo-Marxist paradigm, as far as possible, in terms of the original writings. The essence of
the paradigm lies in the fact that, at present, the less developed
countries cannot develop
like the West. It stresses
the interconnectedness of development and underdevelopment, of traditional and modem, and indeed many other social, political
and economic factors. It seems many conflicts
and clashes of interest in the development process occur, both between
nations and between social classes within the underdeveloped countries. It emphasizes the historical
factors, especially, the active process of how underdevelopment has come into being in the
various Third World countries.
Paul Baran declared that underdevelopment of most of the world
was a direct result of the
dynamics of monopoly capitalism, which had mocked the primary accumulation of capital in the underdeveloped regions,
and smothered their novice industries. He sums
up his thesis as follows: 'thus the people, who came into the orbit of Western capitalist expansion, found themselves, in the light of feudalism and capitalism, enduring the worst features of both
worlds. Their exploitation was multiplied, yet its fruits were not to increase their productive wealth; they wen!
Abroad or served to support a parasitic bourgeoisie at home. They lived in abysmal misery,
yet they had no prospect
of a better tomorrow. They existed under capitalism, yet there was
no accumulation of capital.
They lost their time-honored means of livelihood, their arts and crafts, yet there was no modern
industry to provide new ones in their place. They were thrusted into extensive contact with the advanced science
of the West, yet remained
in a state of the darkest
backwardness."
Referring
to India as a case in point, Baran observes, "India, if left to herself,
might have found in the course of
time a shorter and surely less tortuous mid towards a bettecand rich& society. It would have been, however, an entirely different India (and an entirely
different world), had she been allowed as some more fortunate countries
were,
to realize her destiny in her own way, to employ her resources for her own benefit, and to harness her energies and
abilities for the advancement of her own people."
The
most forceful presentation of the neo-Marxist thesis is found in Andre Gunder Frank: "Under development is not just
the lack of development. Before there was development, there was no underdevelopment. This relation between
development and underdevelopment is not just a comparative one, in the sense that some places are more
developed) and yet there
is underdevelopment".
A.G.
Frank contents that underdevelopment as we know it today, and economic development as well, are the simultaneous and related products
of development on a world wide scale,
and over a history of more than four centuries, at least, of a single integrated economic system: Capitalism.
Though integrated in the sense that its far-
flung parts are interrelated,
and in the sense that it internally
generates its own transformation, the capitalist system is also wrought by contradiction. One part exploits another, though it also
diffuses back some of the fruits of the economic and cultural development
based on that exploitation.
5. Problems
of Underdevelopment.
1. Low Per Capita
Income
The
average per capita income of these countries is extremely low, compared to the
developed nations The World Bank has
classified various nations as low, lower-middle, upper-middle and high per
capita income countries. Low per capita income is one of the most defining
characteristics of developing economies. They suffer from low per capita income
level, which results in low savings and low investments. It means the average
person doesn’t earn enough money to invest or save money. They spend whatever
they earn.
New limits
are determined at the start
of the World Bank’s fiscal year in July and that remains fixed for 12 months
regarding per capita income for classifying countries according to per capita income. As of July 1, 2019,
the new thresholds for classification by per capita income per year are:
|
Threshold
|
July
2019 ($)
|
|
Low Income
|
<1025
|
|
Lower-Middle Income
|
1026-3995
|
|
Upper-Middle Income
|
3996-12375
|
|
High Income
|
>12375
|
2. High population growth
rate/size
The
developing nations either have high population growth rates or large
populations. Very often this is because of lack of family planning options, and the belief that more
children could result in a higher labor force for the family to earn income. Therise in population in recent decades is also because of
higher birth rates and reduced death rates through improved health care.
3. High Unemployment Rate
Large-scale
unemployment is a major factor perpetuating underdevelopment in these countries. Moreover, in rural
areas, unemployment suffers from large seasonal
variations and this results in wide spread rural-urban migration in
agricultural off- seasons in search of jobs.
4. Excessive Dependence on
the Primary Sector for Employment Traditionally
almost 75% of the population of low-income countries is rurally based.
As income levels rise, the structure of demand
changes, which leads to a rise in the importance of the manufacturing sector and then the
services sector.
5.
Vicious Cycle of Poverty
Low
per capita income, high rate of population growth and high unemployment creates
a vicious cycle of poverty that most of the population struggles to escape. The
percentage of people in absolute poverty (below the minimum income
level, defined by poverty line)
is high in developing countries. It is a consumption of Rs 27 a day per
person for rural areas and Rs 30 a day for urban areas.
6. Disproportionate Dependence on Exports of Primary goods
A
significant portion of output in developing countries originates from the
primary sector, that is, agriculture, mining and allied activities. As a
result, a large portion of exports is also from the primary sector.
7.
Excessive Dependence on Foreign Debt
The
governments of these countries borrow heavily from foreign countries to run
their expenses and debt servicing becomes a heavy burden.
8. Unfavorable Institutional Structure
Many
of the customs,traditions and culture of these countries pave the way for
uneconomic spending and perpetuate underdevelopment. Very often unstable
governments and political corruption add fuel to the fire of underdevelopment.
