Download - 1 Theory of Development Garry Jacobs & Robert Macfarlane Seminar on Development Theory Chennai 1997
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Theory of DevelopmentTheory of Development
Garry Jacobs & Robert Macfarlane
Seminar on Development Theory
Chennai 1997
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“Thinking on development is the greatest intellectual challenge of the coming years.”
Boutros Boutros-Ghali
Intellectual ChallengeIntellectual Challenge
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ObservationsObservations
Pace of development is accelerating Malthusian projections have not
materialized
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Development ExplosionDevelopment Explosion
12 fold population growth in 200 years Urban pop. grew from 3% to 40%
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““500 yrs Progress in 50 yrs” 500 yrs Progress in 50 yrs” UNDPUNDP
Poverty eradication -- famine, life expectancy, infant mortality, literacy, disease
Since 1950, average global pci has tripled
From 1965-85, real per capita consumption rose 70% in developing countries
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National Per Capita Output National Per Capita Output is Doubling Faster than Ever is Doubling Faster than Ever
UK 58 yrs from 1780 US 47 yrs from 1839 Japan 24 yrs from 1880s After WWII
Indonesia -- 17 yrs S. Korea -- 11 years China -- 10 years
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Real PCI (ppp) Growth 1960-90Real PCI (ppp) Growth 1960-90
12 times in Korea 7 times in Japan 6 in Egypt & Portugal 5 in Indonesia and Thailand.
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Regional Differences in Regional Differences in PCI Growth (1965-90)PCI Growth (1965-90)
East Asia 5.5% South Asia <2% Subsahara <.25%
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Transition Economics Transition Economics Disastrous Results (1990-93) Disastrous Results (1990-93)
GDP declined 10% in Poland GDP declined 45% in Russia GDP declined 75% in Armenia
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Capital alone does not generate Capital alone does not generate developmentdevelopment
Since 1990, Germany invested $1.1 trillion in East,
Unemployment in East Germany has risen above 25%
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Uneven Employment GrowthUneven Employment Growth
US employment rate at historic peak European unemployment still rising
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New EconomicsNew Economics
Best gets cheaper and cheaper Function per $ continuously increasing
New goods & services being created more rapidly than ever
Value related to plentitude, not scarcity Law of increasing returns
Networks grow in value exponentially Getting more out of less material
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Status of Development TheoryStatus of Development Theory
Variety of factors identified Primary focus is economics Specific events & periods explained No theory universally applicable
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Some ConclusionsSome Conclusions
Past achievements have been unconscious
We have experience of development, not knowledge effective everywhere.
The greatest achievements have not produced a generally applicable formula.
Conscious knowledge is a great power for accomplishment
Need for comprehensive theory
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Theory Reveals Potentials Theory Reveals Potentials
Social theory can accelerate growth as medicinal theory improves health.
Fundamental laws are known Role of organs understood Interaction & integration of systems Stages of development Preventative and curative treatments Precise statistical measures for
diagnosis
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PurposePurpose
To develop a comprehensive theory of social development that can be applied to increase the speed and efficacy of development efforts.
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Scope of Project Scope of Project
Phase 1: Theoretical foundations & principles
Phase 2: Historical applications
Phase 3: Current & future applications
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Purpose of this meeting Purpose of this meeting
Phase 1 -- BIG PICTURE Test rationality and consistency Clarify our thinking Challenge the ideas Direct us to relevant ideas & resources
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AgendaAgenda Introduction Opportunities & Barriers Central Thesis Emergence of New Activities Powers of Organization Infrastructure & Resources Three Stages of Development Internet Conclusions & Next Steps
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IssuesIssues
What questions should the theory answer?
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Theory Must Help Us Theory Must Help Us UnderstandUnderstand
What powers have made the already great advances possible?
What more can be accomplished through the use of these powers?
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Current SituationCurrent Situation
There is potential to increase the speed of the social process.
Theory must be able to confirm or deny possibility of acceleration.
Theory should reveal the precise relationship between the factors required to achieve greater results.
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PeacePeace Theory must evaluate impact of internal
and external social stability on progress. War is a destroyer of development. Drains talents and resources. End of Cold War.
Greater International Stability Great reduction in expenses-$400 billion Increase of pace of world development Rapid re-allocation of resources Rapid re-alignment of economies
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DemocracyDemocracy Provides stable & conducive basis for
more rapid social progress. Raises human aspiration Encourages individual initiative for
advancement Release greater energy
Theory must explain the dynamics of the process by which the political and social factors impact on economic performance.
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Social VelocitySocial Velocity
Development is a function of the velocity of social transaction.
Theory must account for speed in the past and how it has shaped history and how the increasing speed will shape the future.
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Technological ApplicationsTechnological Applications
Gap between innovation, diffusion and application.
Wide variation within and between countries.
Significant determinant of social policy. Theory needs to explain variations and
shows how they act as determinants of developments.
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Global Growth EnginesGlobal Growth Engines
Shift from single or a few local centers to multiple centers.
Increase overall momentum of world energy.
Theory can not be limited to national policies.
Must look at development of global society.
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Essential factors are available Essential factors are available for faster growth for faster growth
Education Technology Information Investment Management know-how
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Theory must explainTheory must explain The process by which new potentials
are created & their role in development. How potentials combine and intersect
to determine its speed and direction? Why achievements fall significantly
below the maximum potential? What are the unseen barriers to the
process?
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Barriers to DevelopmentBarriers to Development
Limited Perception Outdated Attitudes Anachronistic Behaviors
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Perceptual Walls Limit Perceptual Walls Limit Further DevelopmentFurther Development
Most common problem is that society is unable to envision its own future.
Tendency to see potentials as unattainable obstacles.
We still have a significant number of perceptual barriers today.
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Outdated attitudes not physical Outdated attitudes not physical barriers are the most persistent barriers are the most persistent obstacles to human obstacles to human development. development.
Distrust of new inventions Distrust of new ideas Today we insist on our privilege
to maintain outdated attitudes
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Anachronistic behaviors also Anachronistic behaviors also
retard developmentretard development
High birth rates Indian Gold UNDP $40 Billion
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The theory must reflect the role The theory must reflect the role of man in both determining and of man in both determining and overcoming self-imposed limits overcoming self-imposed limits on social progress.on social progress.
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Development isDevelopment is
a process, not a program or result the upward directional movement of
society from lesser to greater levels of energy, efficiency, quality, productivity, complexity, comprehension, enjoyment and accomplishment.
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Central ThesisCentral Thesis
Development occurs by the creation of higher levels of organization in the society capable of accomplishing greater acts with more efficient use of social energies.
People’s energy, knowledge, aspiration, skill & attitudes drive development.
Society develops by organizing knowledge, human energies & material resources.
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Universal PrinciplesUniversal Principles
Principles of development are applicable to all fields of social life.
Principles of development are the same for individuals, organizations, nations and global community.
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Three Social ProcessesThree Social Processes
Survival Growth Development
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Types of DevelopmentTypes of Development
Subconscious learning through trial and error experience.
Conscious initiative from knowledge to action.
Natural vs. Planned development
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Green Revolution -- ContextGreen Revolution -- Context
Subsistence agriculture Dependence on imports Threat of severe famine Commitment to self-sufficiency
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Green Revolution -- Strategy 1Green Revolution -- Strategy 1
Induction of advanced production technology
Seed import and replication National demonstration plots Attractive price & assured market for
farmers FCI to distribute surplus production
to food deficit areas
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Green Revolution -- Strategy 2Green Revolution -- Strategy 2
Increased import and domestic production of fertilizers
Expanded warehousing facilities Reorganization of agricultural
research & education under ICAR Higher pay and status for scientists
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Green Revolution -- ResultsGreen Revolution -- Results
FAO projection foodgrain 10% growth by 1970
Actual growth 50% by 1970 Self-sufficiency in five years 100% in 10 years
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GreenGreen Revolution – Conclusions Revolution – Conclusions
Rare instance of conscious development. People’s accomplishment, not just gov’t Technology--valuable input, but not the key Tapped farmers’ preparedness & aspiration Created new organizations to supply missing
links in society Elevated entire social organization of
agriculture in the country
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Some QuestionsSome Questions
Why have so many other planned development initiatives failed?
Under what circumstances can the role of government be taken over by society?
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Emergence of New ActivitiesEmergence of New Activitiesin Societyin Society
What is the process that stimulates the emergence of new organizations?
What are the stages through which its proceeds?
What are the agents that determine its direction?
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Steps in the ProcessSteps in the Process
Social Preparedness Initiative of the Pioneers Social Imitation Multiplier Effect Social Organization Institutionalization Cultural assimilation through family
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Three Conditions Determine Three Conditions Determine Level of Social PreparednessLevel of Social Preparedness
Energy Awareness Aspiration
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EnergyEnergy Existence of surplus energy to support
movement from one level to another. Available when society not fully absorbed
in meeting the challenges at current level. Surplus is a measure of mastery and
accomplishment at the previous level. The generation of new ideas, scientific
experimentation and technical innovation are signs of surplus energy.
Energy is the fuel for growth of individual, organization and societies.
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AwarenessAwareness
Energy creates the circumstance but requires awareness of potentials to produce results.
Awareness can grow naturally or be thrust on a community.
Speed of development increases as awareness spreads.
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AspirationAspiration
Society must have felt need to achieve at a higher level.
Aspiration grows as awareness of external opportunities & internal capabilities increases.
Common problem is lack of aspiration.
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Theory must explain Theory must explain When motivation for development is
released or curtailed? How different classes and communities
respond differently? How perception about the type and
character of goal affects motivation? Rapid spread of aspiration for
development. Alternations between rising urge and
rising satisfaction.
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Initiative of the PioneersInitiative of the Pioneers
Individual pioneer is the instrument of accumulated social energy.
Pioneer sees & acts on opportunities that others do not see.
Pioneer exhibits new understanding, attitudes, skills & behavior.
Pioneer initiates the collective process. Society expresses its intention and
aspiration through the pioneer.
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Initiatives of the Pioneer - 2Initiatives of the Pioneer - 2
Without the pioneer, society lacks the vision to see the next stage of social progress.
The pioneer is not a rare exception. Pioneer shares aspiration, knowledge and
values of society with one new attribute. Pioneer reveals a new opportunity based
on society’s previous accomplishments.
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Social ImitationSocial Imitation
Responses to the pioneer. Premature development of the pioneer
often leads to revolution. Timely development built on social
preparedness leads to smooth evolution. Successful action of pioneer in tune with
social aspiration encourages other dynamic individuals to imitate.
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Multiplier EffectMultiplier Effect
Widespread adoption of the idea unleashes a development movement.
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Social OrganizationSocial Organization
Each significant developmental advance leads to the emergence of a host of new organizations designed to support it
Puts pressure on existing organizations to elevate their functioning to meet higher demands of the new phase.
Each new organization increases range, scope, quality, convenience, productivity and efficiency of the social energies.
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InstitutionalizationInstitutionalization
An organization matures into an institution when the social acceptance becomes total.
Institutions are supported by customs, beliefs and social tradition.
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Cultural Assimilation Cultural Assimilation Through the FamilyThrough the Family
When an activity has matured to the point that the family plays a very active role in its transmission, the activity becomes a part of the culture of the society.
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Types of OrganizationTypes of Organization
Physical Social Mental
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Physical OrganizationsPhysical Organizations
Roads Railways Town Telecom links
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Social OrganizationsSocial Organizations
Family Military Agrarian community Market Money Industy
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Mental OrganizationsMental Organizations
Newspapers & books Technology Education Science Encyclopaedia
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Power of OrganizationPower of Organization
Roman army East India Company Henry’s Crystal Palace
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Characteristics of OrganizationCharacteristics of Organization
Utilizes human energy & capacities more efficiently.
Make every resource more productive. Abridges space. Abridges time. Make possible what is otherwise
impossible. Admit infinite development.
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Organizations are skills of societyOrganizations are skills of society
Skills of pioneer are institutionalized as organization.
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What gives organizations power?What gives organizations power?
Authority Complexity Systems Integration with the society Values
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Power of AuthorityPower of Authority
Personal and impersonal Leadership Laws Policies and rules Systems Standards
Centralized and decentralized
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ComplexityComplexity
Division of labor Specialization of function Coordination of multiple fields of
activities Integration of multiple levels of activity
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SystemsSystems
Create predictable responses Increase efficiency Increase speed Improve quality Limit the need for expertise
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Integration with societyIntegration with society
Organizations acquire life from social integration.
Natural outgrowth of society’s energy, awareness, aspiration, skills & values.
External models often fail. Can be adapted to cultural variations.
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ValuesValues
Internalized social aspirations Focused authority Powerful organizing principle Psychological skills of society Ultimate determinants of development Evolve with society
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Infrastructures are the Infrastructures are the foundations of the society’s foundations of the society’s previous achievements on which previous achievements on which new organizations are built.new organizations are built.
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Types of InfrastructureTypes of Infrastructure
Physical--roads, ports, rivers,railways, electric power.
Social-- laws, systems, administrative, commercial, productive and financial organizations.
Mental--level of education, awareness in society, availability of information.
Psychological--collective social energy, aspirations, attitudes and values.
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Nature of InfrastructureNature of Infrastructure
Each successive level of development requires the establishment of an essential infrastructure to support it.
Each activity requires multiple types of infrastructure to be successful.
The result of a new activity depends on the strength and quality of the underlying infrastructures.
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ImplicationsImplications
Before undertaking any development initiative, essential infrastructures need to be identified and put in place.
Supplying missing links can energize development.
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Resources areResources are
Inputs for carrying out any activity.
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What makes a resource?What makes a resource?
Mind discovering a use for anything.
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Characteristics of ResourcesCharacteristics of Resources
Actual vs. potential Essential and non-essential Four types
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Physical ResourcesPhysical Resources
Land Water Fuels
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Social ResourcesSocial Resources
Organizations Systems Money
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Mental ResourcesMental Resources
Information Technology Knowledge Creativity
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Psychological ResourcesPsychological Resources
Energy Skills & capacities Attitudes
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Nature of ResourcesNature of Resources
There is no such thing as a natural resource.
The mind is the creator of all resources. As society develops, the application of
mind increases the productivity of materials and processes.
The more open and flexible mind is in its outlook, the greater its power.
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Limitless Potential of ResourcesLimitless Potential of Resources
Vast potential to increase the productivity of physical resources.
Vast potential to decrease consumption by improved efficiency.
Application of non-physical resources enhances value of physical ones.
Higher resources are not limited. As society develops non material
resources play increasingly important role.
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The Human ResourceThe Human Resource
All development reduces itself to the development of human beings.
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Restatement of TheoryRestatement of Theory Development is the process of
increasing the scope and complexity of the fabric of social organization and its intricate interrelationships by quantitative expansion qualitative enhancement spatial extension of organized fabric integration of existing and new elements
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Stages of DevelopmentStages of Development
Three overlapping stages on a continuum
Progress is non-linear. Progression from each stage to the
next stimulates exponential increase in productivity.
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Three Stages of DevelopmentThree Stages of Development
Physical Vital Mental
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Characteristics of Physical StageCharacteristics of Physical Stage
Focus on survival, protection & preservation
Feudal agrarian society Land is wealth Physical strength is power Ideas based on tradition & superstition Rights and power physically inherited Human resource is physical labor
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Characteristics of Vital StageCharacteristics of Vital Stage Focus on expansion, enterprise and
conquest Religious reformation Mercantilism replaces feudalism Money is wealth Economic strength is power Merchant class supplants aristocracy Ideas based on practical utility Human resource is social energy
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Characteristics of Mental StageCharacteristics of Mental Stage Focus on power of knowledge Enlightenment & birth of science Political idealism -- human rights Technology applied in industry Information & knowledge is source of
wealth & influence Universal education Information Age Human resource is mental capacity
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Three Overlapping StagesThree Overlapping Stages
0
1000
2000
3000
4000
5000
6000
1500 1550 1600 1650 1700 1750 1800 1850 1900 1950 2000
Year
Physical Vital Mental
l
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Organization in the 3 StagesOrganization in the 3 Stages
Language, agriculture & urbanization Money & commercial institutions Industry, technology, education
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Power of Money -- 1Power of Money -- 1
Exponential impact on development A convention or symbol for value Increases speed, size, efficiency of
transactions like language Convertible into any other resource Store results over time Transport results over distance
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Power of Money -- 2Power of Money -- 2
Its power multiplies with wider usage Increasing velocity increases its
productivity Creates standard for measurement Capacity to evolve new forms Increases freedom of choice Impersonalizes & democratizes
transactions
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Money as an OrganizationMoney as an Organization
Created by surpluses Depends on authority of political and
economic institutions Based on social complex infrastructure Promotes complex transactions Relates & integrates all social activities Based on values of trust & confidence
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Organizations in Each PhaseOrganizations in Each Phase
Physical- Language Social- Money Mental
Schools Universities Libraries Internet
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Conditions for EmergenceConditions for Emergence
Political freedom Global affirmation of human rights Abundant social energy Irrepressible mental inquisitiveness Accumulation & codification of knowledge Universal education Global revolution of rising expectations Explosion of inventiveness Increasing organizational creativity
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The Emerging Social WillThe Emerging Social Will
High levels of political freedom High levels of social expression High levels of individual empowerment Wide spread prosperity Extensive higher education Anticipation and excitement over
scientific discoveries Insatiable thirst for information Rapid assimilation of new technologies
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Infrastructures Supporting the Infrastructures Supporting the Creation of the Internet Creation of the Internet
Physical infrastructure - Convergence of two technologies Computer Telecommunication Incremental improvements in many
technologies Standard languages interface
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Internet Infrastructures - 2Internet Infrastructures - 2
Social infrastructure- Change from isolated specialized use of
computer to creation of vast networks. Creation of a new model of social
organization without centralized authority or hierarchy.
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Internet Infrastructures - 3Internet Infrastructures - 3
Mental infrastructure- Scientific knowledge and technical
capacities. Spread of general education. Computer literacy and skills. New mental energy and capacity to
accept and adapt a new medium.
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Internet Infrastructures - 4Internet Infrastructures - 4
Psychological infrastructure Social leveling Thirst for information Lack of fear of technology. Public enthusiasm and readiness to
adopt
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PreconditionsPreconditions
Huge accumulation of surplus capital Mental energy Leisure time
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Powers of the InternetPowers of the Internet Universal access to information New medium for commercial transactions Levels playing field between companies Medium for financial transactions Medium for distance education Low cost communications Creation of special interest groups Low cost way to publish views and ideas Access to knowledge and expertise Direct access to the democratic process
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Value for Developing CountriesValue for Developing Countries
Commercial & technical information. Access to markets and customers. Access to new products and processes. Access to outside expertise. Access to scientific knowledge. Alternative delivery system for
broadcasting, telephone etc. Support global citizenship & community.
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Impact of InternetImpact of Internet
Increases speed of information exchange. Makes many transactions instantaneous. Increases speed & quality of decisions. Increases access to goods and services. Makes customized and personalized
services affordable and accessible.
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Potentials as Internet DevelopsPotentials as Internet Develops
Releases greater mental energy. Encourages mental creativity. Make results available to wider
community. Drives the growth of a new self directed
society without external compulsion. Creates new skills to increase
productivity of society.
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Potentials - 2Potentials - 2 Creates maximum # of connections
between different fields of activity. Drives the spread of strong values. Empowers the individual with unlimited
access to knowledge. Reduces the limitations placed on
humanity by space and time. Elevates people from physical to mental. Symbolizes collective accomplishment,
shared inheritance and human unity.
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ApplicationsApplications
Not a substitute for economic theories Creates perspective for specific theories Identifies need for other specific
theories Starts with perception of social
aspirations & preparedness
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Summary of Principles -- 1Summary of Principles -- 1
Development is a process, not a program.
Natural process of development is unconscious
Conscious development can be ten-fold faster than unconscious.
Principles are same for individuals, organizations and societies.
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Summary of Principles -- 2Summary of Principles -- 2
Development is the creation of higher levels of organization.
The motive force is human need and aspiration.
Driving force for development is the collective will for higher accomplishment.
Development occurs on basis of surplus energy, awareness of opportunity and aspiration.
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Summary of Principles -- 3Summary of Principles -- 3
Development takes place when society imitates the activities of pioneers and organizes to support those activities.
Organization matures as institutions & culture (values).
Organization admits of infinite development.
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Summary of Principles -- 4Summary of Principles -- 4
Development is founded on four levels of infrastructure.
Four types of resources support development.
Social organization is a single, interconnected fabric of organized activities and relationships.
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Society develops through three overlapping stages -- physical, vital and mental.
Progress from each stage to the next stimulates exponential increase in productivity.
Summary of Principles -- 5Summary of Principles -- 5
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Global population has multiplied 60,000 times since invention of cultivation.
Qualitative development has been proportionate.
Rate of advancement is accelerating. Each advance brings a new set of
limits to overcome.
Overview of Human ProgressOverview of Human Progress
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What are the limits?What are the limits?
The ultimate resource is Mind, the creator of all resources.
No limit to mind’s capacity to create, so resources are endless.
All development is development of human beings.