Development Theories PDF

DEVELOPMENT THEORIES HUME 111: Human Ecological Perspectives in Development Prepared by: AGB Lumbres | DCERP-CHE THEORIES Classical Economic Theory Classical Marxism Malthusian Theory 1800s Mono-disciplinary Human...

DEVELOPMENT THEORIES HUME 111: Human Ecological Perspectives in Development Prepared by: AGB Lumbres | DCERP-CHE THEORIES Classical Economic Theory Classical Marxism Malthusian Theory 1800s Mono-disciplinary Human Ecology 1900s Keynesianism 1930s Modernization Theory 1950s Structural Approaches Dependency Theories 1960s Multi-disciplinary Human Ecology Neo-Malthusian Theories 1970s Basic Need Approaches Women and Development Sustainable Development EthnoDevelopment Gender and Development 1980s Neo-liberalism 1990s Post-Development Inter-disciplinary Human Ecology 2000s SOURCES: Katie Willis. 2011. Theories and Practices of Development HUME 101 LUMBRES Lecture Notes HUME 101 SANDALO Lecture Notes Background 1800s CLASSICAL ECONOMIC THEORY FREE MARKET aka Laissez-Faire (Market-Centered Approach) ▪ Main Actor: Private Sector (Market) ▪ Focus on market forces as the most efficient way of organizing economies. ▪ The prices of goods and services are determined by the market forces of demand and supply without the intervention of the government. In a free market, a majority of companies and properties are owned by individuals or entities in the private sector instead of the state. Proponents 1800s CLASSICAL ECONOMIC THEORY FREE MARKET aka Laissez-Faire (Market-Centered Approach) ▪ Father of Capitalism ▪ Greater attention to be paid to production, rather than trade in economic development ▪ Division of labor would help improve the skill thus productivity – leading to economic growth and wealth creation ADAM SMITH 1723 - 1790 Scottish economist Proponents Examples 1800s CLASSICAL ECONOMIC THEORY FREE MARKET aka Laissez-Faire (Market-Centered Approach) United States: allow the firms to set their prices. It allows businesses to seek new growth opportunities, providing them with an incentive to realize a higher profit. As a result, the competition gets more intense, and firms are competing in a perfect competition setting. NOTE: Economists insist that there is no free market in the real world. The free market system is more a theoretical concept as, governments always put some type constraints in the allocation of resources and the exchange of goods and services. http://www.thebalance.com https://www.myaccountingcourse.com/accounting-dictionary/free-market-system Background 1800s CLASSICAL ECONOMIC THEORY Comparative Advantage Theory ▪ Main Actor: Private Sector (Market) ▪ Countries should concentrate on producing and selling the goods that they had an advantage in producing because of their assets, such as land, mineral resource, labor etc. thus leading to efficiency in production. ▪ This approach results in global division of labor. Proponents 1800s CLASSICAL ECONOMIC THEORY Comparative Advantage Theory On the Principles of Political Economy and Taxation (1817), Ricardo uses the example of England and Portugal to show that even if England were better than Portugal at producing both cloth and wine, Portugal can still have a comparative advantage in other goods. DAVID RICARDO 1772 - 1823 British economist Proponents Examples 1800s CLASSICAL ECONOMIC THEORY Comparative Advantage Theory Philippines: The One Town, One Product (OTOP-Philippines) is a priority program of the government to promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and municipality take the lead in identifying, developing, and promoting a specific product or service, which has a comparative advantage. Photo: AGBLumbres.2016 DTI-OTOP Background 1800s CLASSICAL MARXISM ▪ Main Actor: Public Sector (Government) ▪ State as the key actor in organizing resource distribution and use ▪ Social classes are the cause of struggle. Society should have no classes in order to create a fair society. PROLETARIATS BOURGEOISIE Own the means of Labor force production Wage-earners Ruling class in capitalist Limited political power society Background 1800s CLASSICAL MARXISM Ancient/primitive communism– ancient tribal societies; communal ownership of land tools and other basic economic resources Feudalism– found in “Western societies”; based on agricultural production organized large estates; land ownership by a few, but tenants able to keep their produce after having paid the landlord Asiatic – found in “Eastern” societies, eg. China, Turkey, Persia; different classes dominated the economy and the state apparatus; needed to ensure centralized control of important technologies such as irrigation system. Capitalism– society divided into those who own the means of production and those who do not; those who do not have, earn a living by selling their labor; key role of the market in allocating resources Socialism– communal ownership of means of production by state or the people; industrialization means that people no longer have to struggle for a living and individual needs can be met by the distribution systems of the collective. Proponents 1800s CLASSICAL MARXISM Known for The Communist Manifesto The struggle between social classes, specifically between the bourgeoisie, or capitalists, and the proletariat, or workers, defines the development of the state, and the bourgeoisie seek to gain control of the factors of production from the "masses.“ KARL MARX FRIEDRICH ENGELS 1818 - 1883 1820 - 1895 German philosopher German Philosopher http:/www.britannica.com Proponents Examples 1800s CLASSICAL MARXISM Democratic People’s Republic of Korea (North Korea) CRITICISMS North Korea is possible the only truly Communist regime ▪ The class structure today is left in the world (Richard Cosgrove, 2014) more complex than Bourgeois-Proletariat ▪ Less alienation in modern companies ▪ Communist Revolutions do not always succeed https://revisesociology.com/2016/04/11/eight-criticisms-of-the-traditional-marxist-view-of-society/ https://www.ibtimes.co.uk/life-north-korea-last-home-communists-1480419 Background 1800s MALTHUSIAN THEORY Also known as Malthusian theory of population growth ▪ Food would grow arithmetically while humans would reproduce geometrically, and technology could not do anything about this. Two types of 'checks' that can reduce a population's growth rate: 1. Positive checks: voluntary actions people can take to avoid contributing to the population (famine, diseases, war) 2. Preventive checks: things that may shorten the average lifespan (birth control, abstinence, contraception, abortion, moral restraint or celibacy) Malthusian catastrophe (also sometimes called a Malthusian crisis): a forced return of a population to basic survival http://study.com/academy/lesson/malthusian-theory-of-population-growth Proponents 1800s MALTHUSIAN THEORY Also known as Malthusian theory of population growth An Essay on the Principle of Population In his 1798 work, Malthus examined the relationship between population growth and resources. He became infamous when he introduced the proposition that poverty is the natural consequence of population growth, thus poverty is blamed on the poor themselves. Thomas Robert Malthus 1766 - 1834 English scholar http://study.com/academy/lesson/malthusian-theory-of-population-growth Proponents Examples 1800s MALTHUSIAN THEORY Also known as Malthusian theory of population growth The Irish potato famine of the 19th century has been considered a classic example of a Malthusian catastrophe. In addition to dealing with political and economic relations with England and fragmentation of their land, the rapidly growing Irish population was running out of food. http://study.com/academy/lesson/malthusian-theory-of-population-growth http://dochara.com Proponents 1900s MONO-DISCIPLINARY HUMAN ECOLOGY Sociological human ecology Many of the then popular ecological concepts of competition, succession, and interdependence were introduced to the study of human community structure and urban ecology. Ernest Burgess Robert Park American sociologist American sociologist http://lib.uchicago.edu http://infoamerica.org Proponents 1900s MONO-DISCIPLINARY HUMAN ECOLOGY Geography as Human Ecology President of the Association of American Geographers In 1923, launched human ecology in his Presidential Address and used geography as human ecology Harlan Barrows American geographer http://lib.uchicago.edu Proponents 1900s MONO-DISCIPLINARY HUMAN ECOLOGY ▪ “...never uttered or written ‘human ecology’ by that man who many of us deem to be the real founder of our discipline ▪ Laid both the theoretical and practical foundations of the discipline ▪ Led by his two medical slogans: diagnosis before treatment and conservative surgery.” Diagnosis Before Treatment: survey before plan Conservative Surgery: rehabilitation rather than removal Patrick Geddes British scientist and town planner Torsten Malmberg, 1990 Proponents 1900s MONO-DISCIPLINARY HUMAN ECOLOGY Home economics In 1892 she used Haeckel’s term ecology to mean the science of the conditions of the health and well-being of everyday human life, elaborated as human ecology in 1907 But the biological scientists resisted extending the concept of ecology to include social dimensions Ellen Swallow Richards The term home economics was adopted in its place American, Home economist Torsten Malmberg, 1990 Background 1930s KEYNESIANISM ▪ Main Actor: State and Market ▪ State intervention in the economy is necessary to help regions that are disadvantaged of market failure. ▪ The driving force of economy is not aggregate supply, but aggregate demand. ▪ Contrary to the Classical Economics, during economic depression there was a severe economic collapse and no policies were able to jumpstart the respective economies worldwide. Proponents 1930s KEYNESIANISM General Theory of Employment, Interest, and Money The key to growth was real investment (new rather than replacement investment) which would have positive effect on job creation and the further generation of wealth through the multiplier effect. The state could intervene to promote investment either through monetary policies such as changing interest rates or government expenditures rather than letting the market operate alone. John Meynard Keynes British Economist Proponents Examples 1930s KEYNESIANISM GLOBAL FINANCIAL CRISIS IN 2007 The American Recovery and Reinvestment Act Economic Stimulus Act Obamacare GREAT DEPRESSION IN 1930 Job creation programs Social Security U. S. Minimum Wage Laws for Child Labor HUME 111 2019 Reports Background 1950s MODERNIZATION THEORIES ▪ Main Actor: State and Market ▪ Eurocentric assumptions that all countries should follow the path of Northern nations. ▪ Modernization theory makes the claim that Western capitalist values and practices are the basis for “modernizing” third world countries and helping them become self-sustaining. Background 1950s MODERNIZATION THEORIES Linear Stages Theory (A Non-Communistic Manifesto) 2 3 Take-off Stage 1 The Traditional Society at this stage revolutionary changes is mostly a backward society with no occur in both agriculture and industry access to science and technology where to attain a self-sustaining economic most of its resources are dedicated to growth. agricultural use. 4 Drive to Maturity 5 Stage of Mass Consumption The population involved in agriculture at this stage a country’s demand shifts from declines while industry becomes more food, clothing and other basic necessities to diverse. Overall income per capita increases. demand for luxuries. Gerald Ogoko HUME 111 2019 Reports Proponents 1950s MODERNIZATION THEORIES Linear Stages Theory (A Non-Communistic Manifesto) Development was to take place is a capitalist context rather than a communist one. Development was defined in relation to modernity, and to a move from agricultural societies with traditional cultural practices to a rational, industrial and service-focused economy. Walt Whitman Rostow American Economist http://armstrongeconomics.com Proponents Examples 1950s MODERNIZATION THEORIES Linear Stages Theory (A Non-Communistic Manifesto) CRITICISMS ▪ More savings and investment are not necessary condition for accelerated growth; no sufficient condition ▪ Third world nations are part of a highly integrated and complex international system in which the best and most intelligent development strategies can be nullified by external forces beyond the nation’s control http://researchgate.net Background 1950s MODERNIZATION THEORIES Dualistic Economy Traditional, 2 1 Overpopulated Rural Subsistence Sector ▪ Low Profitability ▪ Low income elasticity of demand. ▪ Low growth opportunities ▪ Subsistence farming Gerald Ogoko HUME 111 2019 Reports Proponents 1950s MODERNIZATION THEORIES Dualistic Economy Development took place as a surplus labor moved from non-profit traditional (agricultural) sector to capitalist modern structure. If there is much rural surplus labor, wages in the modern sector would not increase until all surplus labor has been absorbed. He also advocated for foreign investment. W. Arthur Lewis American Economist http://thefamouspeople.com Proponents Examples 1950s MODERNIZATION THEORIES Dualistic Economy CRITICISMS Green Revolution (1950s -1960s) – Scientific principles were applied to agricultural Model implicitly assumes that the processes to improve yields in the South. rate of labor transfer and employment creation in the modern sector is proportional to the rate of modern sector capital accumulation. Questionable assumption of the model is the notion that surplus labor exists in rural areas while there is full employment in the urban areas http://developmentnews.in Proponents 1950s MODERNIZATION THEORIES Theory of Unbalanced Growth ▪ Emphasis on Spatial Dimension ▪ Spatially unbalance growth was a desirable part of development (in this case economic development/industrialization to be spatially concentrated). ▪ Growth poles act as foci for development and over time, benefits would spread out and degree of Albert Hirschman polarization would reduce. German Economist http://nytimes.com Proponents 1950s MODERNIZATION THEORIES Cummulative Causation ▪ Emphasis on Spatial Dimension ▪ Cummulative Causation: Spiral of advantages that occur in a specific geographic location (core) ▪ Used to explain regional disparities in the global and country contexts BACKWASH EFFECTS - Negative effect of core’s growth to the periphery Gunnar Myrdal SPREAD EFFECTS Swedish Economist - Positive effect of core’s growth to the periphery http://thefamouspeople.com Gunnar Myrdal Rich land Poor land 1957 Background 1960s STRUCTURAL APPROACHES Structural Functionalism ▪ Main Actor: State ▪ National governments need to protect domestic production from global markets and competition because of global economic inequalities. By limiting Southern countries’ interaction with the global economies, domestic economic growth is given opportunity Proponents 1960s STRUCTURAL APPROACHES Structural Functionalism “Over time, societies adapted and evolved to become complex triggered whether by external influence introducing new technologies or cultural forms internally.” Talcott Parsons American Sociologist http://peoples.ru Background 1960s DEPENDENCY THEORIES World Systems Theory ▪ Main Actor: State ▪ The capitalist world economy can be divided into core states, semi- peripheral, and peripheral areas. The peripheral areas are least developed exploited by the core for their cheap labor, raw materials, and agricultural production. Proponents 1960s DEPENDENCY THEORIES World Systems Theory Stresses the importance of considering national economic development within the global context rather than just concentrating on individual countries. Immanuel Wallerstein American Sociologist http://iwallerstein.com Background 1960s DEPENDENCY THEORIES International Dependence Revolution ▪ Main Actor: State ▪ Economic disadvantage in the global periphery is a result of exploitation from the North (core industrialized countries); need to withdraw from global economic system. Southern countries were poor because of the exploitation by the Northern countries. Background 1960s DEPENDENCY THEORIES International Dependence Revolution THREE STREAMS OF THOUGHTS: (1) Neocolonial dependence model: Third World underdevelopment is due to historical evolution of highly unequal international capitalist system of rich country-poor relationships. Small elite ruling class in developing nations (1) False paradigm: Third World underdevelopment is due to faulty and inappropriate advice provided by biased and ethnocentric international “expert” advisers from developed country assistance agencies and multinational donor organizations and locals trained abroad. (2) Dualistic-development thesis: It represents the existence and persistence of increasing divergence between rich and poor nations and rich and poor people on various levels. Background 1970s MULTI-DISCIPLINARY HUMAN ECOLOGY The term ‘ecosystem’ coined by Tansley in 1935 introduced a holistic, systems based understanding of interrelationships and process Humans are embedded in ecosystems and are ultimately dependent on these ecological processes for their health and well- being http://gfdl.noaa.gov Proponents 1970s NEO-MALTHUSIAN THEORIES Need to control economic growth, resource use and population growth to avoid economic and ecological disaster Tragedy of the Commons: Depletion of a shared resource according to one's self-interests Population Bomb/Explosion: When a population exceeds the Garret Hardin carrying capacity of its ecological niche Paul Ehrlich German Scientist American Ecologist http://garrethardinsociety.org http://Britannica.com Background 1970s BASIC NEEDS APPROACH Focus of government and aid policies should be on providing for the basic needs of the world’s poorest people The minimum requirements for a decent life – health, nutrition and literacy – and the goods and services, such as shelter, sanitation, food, health services, safe water, primary education, housing and related infrastructures Proponents 1970s BASIC NEEDS APPROACH The idea of basic needs development strategy was created by International Labour Organization. Also used by Worldbank. Abraham Maslow American Psychologist http://thefamouspeople.com, Proponents Examples 1970s BASIC NEEDS APPROACH Pantawid Pamilyang Pilipino Program (4 P’s) - a human development program of the national government that invests in the health and education of poor households, particularly of children aged 0-18 years old. Philippines’ Ministry of Human Settlements: 11 Basic Needs DSWD Background 1970s WOMEN AND DEVELOPMENT Recognition of the ways in which development has differential effects on women and men WOMEN IN DEVELOPMENT ▪ First introduced by “American liberal feminists” and focuses on egalitarianism ▪ Integration of women into the global economies by improving their status and assisting in total development ▪ Women were excluded from the benefits of social programs http://agnesarnold-foster.com Background 1970s WOMEN AND DEVELOPMENT WOMEN AND DEVELOPMENT ▪ First World Conference on Women in Mexico City in 1975, organized by the UN ▪ Interaction between women and development processes ▪ Saw both women and men as not benefiting from the global economic structures because of disadvantages due to class and the way wealth is distributed Background 1980s SUSTAINABLE DEVELOPMENT Main Actors: Depends on perspective Diversity of approaches to sustainable development; some are very market-led and involve pricing nature, while others involve putting environmental protection at the heart of policy and reducing consumption. This approach emphasizes on the need to balance needs of current generation against environmental and other concerns of future population Background 1980s SUSTAINABLE DEVELOPMENT Two Approaches: Light Green/Technocentric – focus is on humankind and the improvement in human standards of living and quality of life Dark Green/Ecocentric – It is the earth which is more important than ideas about human progress and economic growth http://un.org.au Background 1980s ETHNO DEVELOPMENT Main Actor: State and ethnic groups ▪ Development decisions balance the requirements of different ethnic groups ▪ Takes into account the need to maintain ethnic diversity as development takes place http://impakter.com Background 1980s ETHNO DEVELOPMENT Four main aspects: 1. Territorialism: the spatial concentration of ethnic groups 2. Internal self-determination: the ability of a particular group to control collectively its destiny within a context of a nation-state 3. Cultural pluralism: the existence of and mutual respect for a number of cultures within one society 4. Ecological sustainability: development should progress with no significant destruction of the natural environment which would threaten future livelihoods Examples 1980s ETHNO DEVELOPMENT Indigenous People’s Rights Act An act to recognize, protect and promote the rights of indigenous cultural communities/indigenous peoples, creating a national commission on indigenous peoples, establishing implementing mechanisms, appropriating funds therefor, and for other purposes http://seattletimes.com Background 1980s GENDER AND DEVELOPMENT Main Actor: Depends on perspective ▪ Greater awareness of the ways in which gender is implicated in development (i.e. equity, empowerment, etc.). ▪ This is strengthened by implementing policies which would involve women to a greater degree in development. ▪ Concerned with the way in which a society assigns roles, responsibilities and expectations for both women and men http://gfdl.noaa.gov Examples Examples 1980s GENDER AND DEVELOPMENT Mandatory provision of at least 5% of the total budget be allotted to the Gender and Development (GAD) initiatives in the Philippines http:dole.gov.ph http://adb.org Background 1980s NEO LIBERALISM 2000s Main Actor: Private sector, NGOs, and individuals ▪ State involvement regarded as being detrimental to development. State should provide regulatory framework within which companies can operate. Government should retreat from direct involvement ▪ Market Focused ▪ Involves policies associated with free trade, privatisation, price deregulation, a reduced size of government and flexible labour markets Background 1980s NEO LIBERALISM 2000s Supply-Side Economics aka Reaganomics Argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and services, such as lowering income tax and capital gains tax rates, and by allowing greater flexibility by reducing regulation http://foreignpolicyjournal.com Background 1980s NEO LIBERALISM 2000s Free Market Approach ▪ Markets alone are efficient ▪ Product markets provide the best signals for investments in new activities ▪ Labor markets respond to these new industries in appropriate ways ▪ Producers knew best what to produce and how to produce it efficiently ▪ Product and factor prices reflect accurate scarcity values of goods ▪ and resources now and in the future http://gfdl.noaa.gov Background 1980s NEO LIBERALISM 2000s Public Choice Approach ▪ aka New Political Economy Approach ▪ Governments can do nothing right – Minimal government is best government ▪ Assumption: politicians, bureaucrats, citizens, act solely from a self- interested perspective – using their power and the authority of government for their own selfish needs ▪ Citizens use political influence to obtain special benefits (called “rents”) from government policies (e.g. import licenses) that restrict access to resources http://gfdl.noaa.gov Background 1980s NEO LIBERALISM 2000s Market Friendly Approach ▪ Most recent variation, associated with WB and their economists ▪ Governments do have a key role to play in facilitating the operation of markets thru “nonselective” (market friendly) interventions, i.e. ▪ physical and social infrastructures ▪ health care facilities, educational institutions, and ▪ providing suitable climate for enterprise http://gfdl.noaa.gov Background Examples 1980s NEO LIBERALISM 2000s Structural Adjustment Programmes (SAPs) (started in late 70s): encompasses a series of government-led policies which are aimed at reducing the role of the state in the running of the national economy. Asian Miracle: East Asian nations (South Korea, Taiwan, Singapore) being able to achieve economic and social development by following a few key neo-liberal tenets by opening up the economy to foreign investment and trade, limited role of the state in the national economy and investment in human capital (education) http://gfdl.noaa.gov Background Criticisms 1980s NEO LIBERALISM 2000s CRITICISMS: 1. Policies which may work in one country doesn’t necessarily work in all countries. 2. Neo-liberal policies tend to increase inequality. 3. It introduces monopoly and monopsony power on the private sector. 4. Health and education are misplaced because by nature these are public service. https://www.economicshelp.org http://huffingtonpost.co.uk Background 1990s POST DEVELOPMENT 2000s Grassroots Development Main Actor: Grassroots organizations and individuals ▪ Ideas of “development” represent a form of colonialism and Eurocentrism, which is challenged from the grassroots. ▪ Focus on grassroots participation Bottom-up approach: importance of considering local context and indigenous knowledge Sama samang Nagkakaisang Pamayanan ng Silonay. A local people organization in Silonay, Calapan, Mindoro SNPS at Silonay Ecopark.2016. Background 1990s POST DEVELOPMENT 2000s Culture and Development Increased awareness of how different social and cultural groups were affected by development processes. http://culture360.asef.org Background 1990s POST DEVELOPMENT 2000s TRENDS Globalization: The increasing interconnectedness of different parts of the world, such that physical distance becomes less of a barrier to exchange and movements of ideas, goods, people and money. Regional cooperation: Rationale is to try and expand the markets for domestically produced goods. http://gfdl.noaa.gov Background Proponents 1990s INTER-DISCIPLINARY HUMAN ECOLOGY 2000s Amos Hawley (1986) and Gerald Young (1989) called for an intellectual framework that will enable a coherent ‘blending’ of knowledge, and the emergence of new understanding that distinguishes the particular approach to complex human-ecological interactions conducted in thename of ‘human ecology’ http://goodread.com Background Proponents 1990s INTER-DISCIPLINARY HUMAN ECOLOGY 2000s Robert Dyball, Richard Borden, and Serbser (2007): ▪ TO DATE, NO SUCH UNIFIED APPROACH HAS YET BEEN ADOPTED ▪ There remains a wide range of perspectives that call themselves ‘human ecology’, each informed by THEIR OWN LOCAL AND INSTITUTIONAL CONTEXTS AND HISTORY http://goodread.com