chapter 1 patterns of development. what is development?

Chapter 1

Patterns ofDevelopment

What is Development?What is Development?


““Development” … al Biology?Development” … al Biology?– A natural, desirable, inescapable process of A natural, desirable, inescapable process of

improvement/maturation/fulfillment.improvement/maturation/fulfillment.

““Development” as in “Fundraising”?Development” as in “Fundraising”?– A planned process of intervention to achieve A planned process of intervention to achieve

certain goals for the benefit of something else.certain goals for the benefit of something else.


Historical and ahistorical definitions.Historical and ahistorical definitions.– Evaluative, a-historical definitions are the focus of DE.Evaluative, a-historical definitions are the focus of DE.

PositivePositive (i.e., neutral) versus (i.e., neutral) versus normativenormative (i.e., (i.e., evaluative) meanings.evaluative) meanings.– Positive and evaluative meanings are intertwined.Positive and evaluative meanings are intertwined.– Although the line is blurry, but either we identify our Although the line is blurry, but either we identify our

values, or we adopt hidden values (or someone else’s values, or we adopt hidden values (or someone else’s values).values).


Definitions: achievement a particular Definitions: achievement a particular goal or the opportunity to achieve your goal or the opportunity to achieve your own goals?own goals?– Is having means but no clear ends Is having means but no clear ends

developmentdevelopment??– Being or having? How do we define these Being or having? How do we define these

terms and make them concrete?terms and make them concrete?

Are the criteria for development Are the criteria for development universal or are they relative to universal or are they relative to particular contexts?particular contexts?

A-Historical DefinitionsA-Historical Definitions

Elaboration, improvement, evolution;Elaboration, improvement, evolution;

Unveiling and fulfillment of potential.Unveiling and fulfillment of potential.

A.A. Neutral usages of Neutral usages of developmentdevelopment::1.1. Structural changeStructural change

2.2. Intervention, action.Intervention, action.

B.B. Evaluative usages:Evaluative usages:1.1. Improvement, good changeImprovement, good change

2.2. Pre-conditions for improvementPre-conditions for improvement


A.A. Neutral usages of Neutral usages of developmentdevelopment::1.1. Structural changeStructural change– ““To develop” as an intransitive verb. An To develop” as an intransitive verb. An

endogenous processendogenous process– Economic growth, GDP per capita.Economic growth, GDP per capita.– Modernization (industrialization, Modernization (industrialization,

urbanization, globalization, transformation urbanization, globalization, transformation of relations of production).of relations of production).

– Marxism; Rostow’s Marxism; Rostow’s Stages of Economic Stages of Economic GrowthGrowth..


A.A. Neutral usages of Neutral usages of developmentdevelopment::2.2. Intervention, action.Intervention, action.– ““To develop” as a transitive verb.To develop” as a transitive verb.– A group (the government, the NGOs, the A group (the government, the NGOs, the

UN, the IFIs, the universities) UN, the IFIs, the universities) understands the means of understands the means of developmentdevelopment and and modernizationmodernization better; it knows the better; it knows the ends are desirable. ends are desirable.

– It plans the development process and It plans the development process and imposes it onto society or encourages imposes it onto society or encourages society to follow it.society to follow it.


A.A. Evaluative usages:Evaluative usages:1.1. Improvement, good changeImprovement, good change– DesirableDesirable growth and modernization; fulfillment growth and modernization; fulfillment

of of goodgood potentials, especially that of increased potentials, especially that of increased material welfare in the South.material welfare in the South.

Keeping the end in sight prevents turning the means Keeping the end in sight prevents turning the means (growth, modernization) into ends.(growth, modernization) into ends.

– ““The people are the only deciders of what is The people are the only deciders of what is development”development”

But how did the people come to this decision?But how did the people come to this decision?

Are there any universal preconditions for self-Are there any universal preconditions for self-determination?determination?


A.A. Evaluative usages:Evaluative usages:2.2. Pre-conditions for improvementPre-conditions for improvement– Goulet: D is what leads to improvement.Goulet: D is what leads to improvement.

So D depends on So D depends on valuesvalues (what is improvement?) (what is improvement?) and and theorytheory (what causes improvement?) (what causes improvement?)

Being able to self-define D is also an Being able to self-define D is also an improvement, maybe also part of D.improvement, maybe also part of D.

So D is the change; D is the opportunity change So D is the change; D is the opportunity change creates; and D is the actual improvement.creates; and D is the actual improvement.

Or D is what automatically creates improvement.Or D is what automatically creates improvement.

Definitions of DevelopmentDefinitions of Development

NeutralNeutral EvaluativeEvaluative

A-HistoricalA-Historical Rise in GDP per Rise in GDP per capitacapita

Increase in Increase in universally universally specified specified capabilitiescapabilities

HistoricalHistorical

Expansion of Expansion of Western Civ; Western Civ; copying of copying of Northern modelsNorthern models

Fulfillment of a Fulfillment of a group’s preferences group’s preferences at a particular time.at a particular time.

Historical Meanings of Historical Meanings of DevelopmentDevelopment

““Fourth, we must embark on a bold new program for making the Fourth, we must embark on a bold new program for making the benefits of our scientific advances and industrial progress benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped available for the improvement and growth of underdeveloped areas.areas.More than half the people of the world are living in conditions More than half the people of the world are living in conditions approaching misery. Their food is inadequate. They are victims approaching misery. Their food is inadequate. They are victims of disease. Their economic life is primitive and stagnant. Their of disease. Their economic life is primitive and stagnant. Their poverty is a handicap and a threat both to them and to more poverty is a handicap and a threat both to them and to more prosperous areas.prosperous areas.Greater production is the key to prosperity and peace. And the Greater production is the key to prosperity and peace. And the key to greater production is a wider and more vigorous key to greater production is a wider and more vigorous application of modern scientific and technical knowledge. application of modern scientific and technical knowledge. Only by helping the least fortunate of its members to help Only by helping the least fortunate of its members to help themselves can the human family achieve the decent, satisfying themselves can the human family achieve the decent, satisfying life that is the right of all people.”life that is the right of all people.”– Harry Truman, 1949 Inaugural AddressHarry Truman, 1949 Inaugural Address

Historical Meanings of DHistorical Meanings of D

The idea of development became popular The idea of development became popular after WWII,after WWII,– Fostered by USA (and Europe) and USSR.Fostered by USA (and Europe) and USSR.

But it had started in the early XIXc:But it had started in the early XIXc:– Saint-Simon, Comte: change can be Saint-Simon, Comte: change can be

destructive, but guided change can lead to destructive, but guided change can lead to improvement or to the opportunity for improvement or to the opportunity for improvement.improvement.

History of DevelopmentHistory of Development

Rise of Europe:Rise of Europe:– XVI to XVIIIc, globalization, markets, Kist XVI to XVIIIc, globalization, markets, Kist

institutions;institutions;– XIX to mid-XX, technology in production, XIX to mid-XX, technology in production,

social management.social management.Liberalism and utilitarianism arose to justify/foster Liberalism and utilitarianism arose to justify/foster the ordering of a commercial society.the ordering of a commercial society.

History of DevelopmentHistory of Development

Post-WWIIPost-WWII– Post-colonialismPost-colonialism– Awareness of tech and income gap;Awareness of tech and income gap;– West versus USSRWest versus USSR

Imposed their models as “conscious major state-led Imposed their models as “conscious major state-led intervention for national economic advance.”intervention for national economic advance.”

– Societal improvement and (or?) catching up.Societal improvement and (or?) catching up.– Globalization, inter- and intra-country polarization.Globalization, inter- and intra-country polarization.

How ought a society to exist and How ought a society to exist and move into the future?move into the future?

Is social improvement the same for Is social improvement the same for everyone or should it be defined case by everyone or should it be defined case by case?case?– Many societies may agree on some values;Many societies may agree on some values;– Development is to increase the range of Development is to increase the range of

opportunities for doing what one chooses; the opportunities for doing what one chooses; the preconditions for this may be universal.preconditions for this may be universal.

Opportunities to be or to have?Opportunities to be or to have?


GDP per capitaGDP per capita… … plus manufacturing share and literacyplus manufacturing share and literacyHuman Development IndexHuman Development Index– It’s objective, so it’s comparable across countries and It’s objective, so it’s comparable across countries and

time.time.– ““A process of change in social structures, physical A process of change in social structures, physical

infrastructure, technology and skills, culture and moral infrastructure, technology and skills, culture and moral and spiritual values which creates conditions and an and spiritual values which creates conditions and an environment for a happier and more contented environment for a happier and more contented humanity.” Nkomo, qtd. p. 37.humanity.” Nkomo, qtd. p. 37.


Development as enlarging people’s choices Development as enlarging people’s choices (Arthur Lewis and Amartya Sen)(Arthur Lewis and Amartya Sen)– Valuable options are what matter, not just a large Valuable options are what matter, not just a large

number of options.number of options.No choices may even be better than a thousand distractions.No choices may even be better than a thousand distractions.People prefer to know they are acting independently.People prefer to know they are acting independently.

Being is better than having; and outcomes as Being is better than having; and outcomes as better than opportunities.better than opportunities.– But, given the lack of data, a “having” measure such But, given the lack of data, a “having” measure such

as GDP can become a proxy for the “opportunity to as GDP can become a proxy for the “opportunity to be” and for “being.”be” and for “being.”

GDP / GNPGDP / GNP

GNP is a better measure of welfare than GDP: it focuses GNP is a better measure of welfare than GDP: it focuses on the country’s people. However,on the country’s people. However,– GNP includes activities such as waste disposal, pollution GNP includes activities such as waste disposal, pollution

abatement, etc.; investment.abatement, etc.; investment.– GNP excludes non-market goods, such as housework or leisure.GNP excludes non-market goods, such as housework or leisure.– GNP gives more weight to luxury goods and less weight to the GNP gives more weight to luxury goods and less weight to the

goals of the moneyless.goals of the moneyless.– GNP doesn’t account for the use of capital; NNP doesn’t include GNP doesn’t account for the use of capital; NNP doesn’t include

the use of environmental capital.the use of environmental capital.

But it measures both achievement and opportunity, and But it measures both achievement and opportunity, and is both universal and contextual.is both universal and contextual.

GDP / GNPGDP / GNP

GNP is objective: it’s the same measure GNP is objective: it’s the same measure everywhere.everywhere.It’s contextual: it reflects what people in that It’s contextual: it reflects what people in that country wanted to produce.country wanted to produce.– Often, what is produced is what foreigners/the Often, what is produced is what foreigners/the

wealthy want: this may reflect wealthy want: this may reflect military/political/economic pressure or mutual self-military/political/economic pressure or mutual self-interest.interest.

– Compare this with Relativist measures that insist that Compare this with Relativist measures that insist that development is “whatever people define as development is “whatever people define as development.”development.”

GDP / GNPGDP / GNP

Measures of Measures of Well BeingWell Being

UniversalistUniversalist RelativistRelativist

Objectivist Objectivist (non-feeling (non-feeling functionings)functionings)

Life ExpectancyLife Expectancy Body weight, if Body weight, if people think it’s people think it’s

importantimportant

Subjectivist Subjectivist (feeling-based)(feeling-based)

GDP per capitaGDP per capita Fulfillment of Fulfillment of duty, if people duty, if people

think sothink so

CommonalityCommonality

Universal aspirations:Universal aspirations:– Freedom from poverty, violence, and Freedom from poverty, violence, and

servitude; Being loved and belonging; Control servitude; Being loved and belonging; Control over one’s life, its details and its direction over one’s life, its details and its direction (Edwards).(Edwards).

– Life, Knowledge, Play, Aesthetic Experience, Life, Knowledge, Play, Aesthetic Experience, Friendship, Self-determination; Religion Friendship, Self-determination; Religion (Finnis – check for basic values).(Finnis – check for basic values).

Growth and DevelopmentGrowth and Development

Low Low incomeincome

Lower middle Lower middle incomeincome

Upper middle Upper middle incomeincome

High High incomeincome

GNI per capita, Atlas method GNI per capita, Atlas method (current US$)(current US$) 584.2584.2 1778.01778.0 5053.35053.3 34962.034962.0

GNI per capita, PPP (current GNI per capita, PPP (current international $)international $) 2463.22463.2 6274.16274.1 9978.09978.0 32839.832839.8

Rural population (% of total Rural population (% of total population)population) 70.070.0 53.553.5 25.325.3 22.622.6

Energy use (kg of oil equivalent Energy use (kg of oil equivalent per capita) 2004per capita) 2004 510.4510.4 1159.31159.3 2221.42221.4 5502.45502.4

Life expectancy at birth, total Life expectancy at birth, total (years)(years) 59.059.0 70.670.6 70.070.0 79.079.0

Literacy rate, adult total (% of Literacy rate, adult total (% of people ages 15 and above)people ages 15 and above) 60.860.8 88.988.9 93.193.1 98.798.7

Literacy rate, youth total (% of Literacy rate, youth total (% of people ages 15-24)people ages 15-24) 73.473.4 96.296.2 97.697.6 99.399.3

How do we draw these graphs?How do we draw these graphs?

http://mysite.avemaria.edu/gmartinez/http://mysite.avemaria.edu/gmartinez/Courses/ECON320/table1-1.xlsCourses/ECON320/table1-1.xls– Select the data you want to plot.Select the data you want to plot.– Insert | Chart …Insert | Chart …– Scatter plotScatter plot– Double-click on axes. Change them to Double-click on axes. Change them to

logarithmic scale.logarithmic scale.– Double-click on chart area. Erase Double-click on chart area. Erase

background and borders.background and borders.

How do we draw these graphs?How do we draw these graphs?

http://mysite.avemaria.edu/gmartinez/http://mysite.avemaria.edu/gmartinez/Courses/ECON320/table1-1.xlsCourses/ECON320/table1-1.xls– Copy the data onto the Stata Data EditorCopy the data onto the Stata Data Editor

Delete row 3 first (what happens when you don’t?) Delete row 3 first (what happens when you don’t?)

– Use dialog box, or typeUse dialog box, or typetwoway (scatter energy gnippp, sort twoway (scatter energy gnippp, sort mlabel(countryname)) (lfit energy mlabel(countryname)) (lfit energy gnippp), yscale(log) xscale(log) gnippp), yscale(log) xscale(log) title(Energy Use compared to GNI per title(Energy Use compared to GNI per capita PPP)capita PPP)

http://upload.wikimedia.org/wikipedia/en/2/2a/ColonialAfrica.png

1914

http://www.assumption.edu/users/mcclymer/His130/P-H/burden/asia1914.gif

http://websupport1.citytech.cuny.edu/Faculty/pcatapano/lectures_wc2/triangulartrade.jpg

DifferencesDifferencesLong emphasis on Long emphasis on education, highly education, highly educated eliteeducated elite

Nearly universal illiteracyNearly universal illiteracy

Highly developed Highly developed institutions (commerce, institutions (commerce, finance, transport) run by finance, transport) run by localslocals

Controlled by immigrant Controlled by immigrant from colonizing powerfrom colonizing power

Common language, Common language, culture, identityculture, identity

Diversity with little Diversity with little national identitynational identity

DifferencesDifferencesTradition of self-Tradition of self-governmentgovernment

No experience of self-No experience of self-governmentgovernment

Favorable geographyFavorable geography Landlocked, isolated Landlocked, isolated from major markets, from major markets, desert, poor agricultural desert, poor agricultural soil, adverse climate, soil, adverse climate, endemic diseaseendemic disease

https://publications.worldbank.org/subscriptions/WDI/

https://publications.worldbank.org/subscriptions/WDI/

Poverty gap at $1 a day (PPP) (%)Albania 0.50 Ukraine 0.50 China 2.10 Paraguay 6.50

Armenia 0.50 Uruguay 0.50 Mongolia 2.23 Burkina Faso 7.26

Belarus 0.50 Uzbekistan 0.50 Brazil 2.40 Mauritania 7.56

Chile 0.50 Dominican Rep 0.51 Philippines 2.94 India 7.88

Croatia 0.50 Bulgaria 0.55 Pakistan 3.06 Benin 8.23

Egypt 0.50 Romania 0.55 Colombia 3.07 El Salvador 8.94

Estonia 0.50 Azerbaijan 0.63 Moldova 3.09 Bangladesh 10.30

Hungary 0.50 Turkey 0.65 Senegal 3.62 Mozambique 11.61

Jamaica 0.50 Sri Lanka 0.84 Cameroon 4.09 Mali 12.24

Jordan 0.50Russian Federation 0.85 Guatemala 4.10 Bolivia 13.55

Kazakhstan 0.50 Costa Rica 0.92 Cote d'Ivoire 4.14 Nicaragua 16.74

Kyrgyz Republic 0.50 Indonesia 0.97 Honduras 4.39 Tanzania 20.71

Latvia 0.50 Mexico 1.29 Malawi 4.71 Rwanda 25.57

Lithuania 0.50 Tajikistan 1.33 Ethiopia 4.80 Haiti 26.59

Macedonia 0.50 Argentina 1.36 Nepal 5.43 Cambodia 27.24

Poland 0.50 Georgia 1.54 Peru 5.46 Madagascar 27.90

Thailand 0.50 South Africa 1.74 Venezuela 5.78 Zambia 34.48

Tunisia 0.50 Panama 1.95 Lao PDR 6.07 Nigeria 34.52

Poverty gap at $2 a day (PPP) (%)Belarus 0.50 Jamaica 3.45 South Africa 12.59 Nepal 26.79

Croatia 0.50 Romania 4.07 Guatemala 12.74 Mauritania 26.80

Hungary 0.50 Turkey 4.09 Tajikistan 13.01 Ethiopia 29.60

Macedonia 0.50 Dominican Rep. 4.20 Peru 14.63 Lao PDR 30.20

Poland 0.50 Kyrgyz Republic 5.13 Venezuela 14.76 Burkina Faso 30.35

Uzbekistan 0.57 Russian Federation 5.54 Moldova 14.93 Benin 31.70

Ukraine 0.94 Mexico 6.23 Paraguay 14.99 Mali 34.21

Uruguay 1.17 Georgia 6.61 Honduras 15.08 Mozambique 34.90

Latvia 1.24 Argentina 6.73 Mongolia 15.08 India 35.02

Tunisia 1.33 Armenia 7.08 Indonesia 16.03 Bangladesh 38.30

Jordan 1.46 Panama 7.18 Philippines 17.07 Nicaragua 41.17

Lithuania 1.61 Thailand 7.60 El Salvador 18.16 Haiti 47.35

Albania 1.83 Colombia 7.70 Cote d'Ivoire 18.40 Tanzania 49.33

Estonia 1.89 Brazil 8.52 Cameroon 19.35 Rwanda 51.55

Chile 1.92 Azerbaijan 9.11 Senegal 20.85 Madagascar 51.75

Kazakhstan 2.57 Egypt, Arab Rep. 11.33 Bolivia 23.24 Cambodia 54.16

Bulgaria 2.83 Sri Lanka 11.92 Malawi 24.29 Zambia 58.74

Costa Rica 3.14 China 12.51 Pakistan 26.09 Nigeria 59.54

SubstitutesSubstitutes

There usually are way around, or There usually are way around, or substitutes, for any single barrier or substitutes, for any single barrier or prerequisite.prerequisite.

But the existence of many of these But the existence of many of these barriers or the absence of a wide variety of barriers or the absence of a wide variety of desirable preconditions make economic desirable preconditions make economic development more difficult.development more difficult.

Doubling timeDoubling time

If a country’s income today is X and it If a country’s income today is X and it grows at a rate of grows at a rate of rr%, it will reach an %, it will reach an income of 2X in income of 2X in tt =70/(r*100) years. years.

Doubling Time

r Approximate

0.10% 700

1% 70

2% 35

4% 18

9% 8

Doubling timeDoubling time

If a country’s income today is X and it If a country’s income today is X and it grows at a rate of grows at a rate of rr%, it will reach an %, it will reach an income of 2X in income of 2X in tt =70/(r*100) years. years.

tr

rt

r

r

rXX

t

t

t

1log

2log

1log2log

1log2log

12

12Doubling Time

r Exact Approximate

0.10% 693.5 700

1% 69.7 70

2% 35.0 35

4% 17.7 18

9% 8.0 8

RecordRecord

Improvement inImprovement in– Life expectancyLife expectancy– LiteracyLiteracy

Changes and challengesChanges and challenges– Information revolutionInformation revolution– Disease Disease – Environmental degradationEnvironmental degradation– Demographic transition and agingDemographic transition and aging

InstitutionsInstitutions

How does one create the institutions How does one create the institutions (governmental, financial, commercial) that (governmental, financial, commercial) that facilitate development?facilitate development?– Can we create efficient markets or should the Can we create efficient markets or should the

state take over?state take over?– Is a fully developed financial system Is a fully developed financial system

indispensable?indispensable?– Land reform?Land reform?– Legal reform?Legal reform?

chapter 1 patterns of development. what is development?

Documents

development process

means of development

patterns of development

development universal

neutral usages of development

actual improvement

clear ends development

evaluative usages