Transcript Notes Session 1 - DCU Moodle 2013

The Politics of Development
Niamh Gaynor
Room: C217c
Tel: 7006048
Email: [email protected]
Course Structure
Session 1:
Introduction and overview
- Modernisation theory
Session 2:
Theories of development (contd)
- Structuralist and dependency theories
- Post-development theories
Session 3:
Strategies of development
- Engendering development
- Participation and development
Session 4:
Contemporary issues
– Governance and development
– The Politics of Aid
Reading list
•
Chari S. and S. Corbridge (eds.) (2008) The Development Reader, Routledge, Oxford and
New York.
•
* Greig, A., D. Hulme and M. Turner (2007) Challenging Global Inequality: Development
Theory and Practice in the 21st Century, Palgrave Macmillan, Basingstoke.
•
Kothari, U. (ed.) (2005) A Radical History of Development Studies, Zed Books, London
and New York.
•
Kothari, U. and M. Minogue (eds.) (2002) Development Theory and Practice: Critical
Perspectives, Palgrave Macmillan, Basingstoke.
•
Payne, A. (2005) The Global Politics of Unequal Development, Palgrave Macmillan,
Basingstoke.
•
Rapley, J. (1996) Understanding Development: Theory and Practice in the Third World,
Lynne Rienner, New York.
•
Schuurman, F. S. (ed.) (1996) Beyond the impasse: New directions in development
theory, Zed Books, London and New York, second edition.
•
Sumner, A. and M. Tribe (2008) International Development Studies: Theories and
Methods in Research and Practice, Sage, London and California.
•
* Willis, K. (2005) Theories and Practices of Development, Routledge, Oxford and New
York.
Assessments
Continuous assessment (100%)
1st essay (2,500 words) – due Friday, November 23rd, 2012, 5pm (40%)
2nd essay (2,500 words) – due Friday, Feb 1st, 2013 (40%)
Hand essays into box next to C205 in Henry Grattan or post to
myself. Electronic copies to be submitted via Turnitin.com on the
Moodle site.
Late penalties apply
Online analysis and interactions on select readings (20%)
PLAGARISM
•
Extremely serious
•
See university guidelines on moodle
1. Take care to cite all sources (both
quoted and referred to)
2. Use your own words and sentences
3. Provide a full bibliography
Referencing
• All direct quotes (“…”) and indirect references to
authors work
• Any statistics, graphs, maps, tables, websites,
images or publications
• Provide a full bibliography of all sources used in
alphabetical order
• See library citing and referencing guide
Online discussion fora (20%)
• An integral part of the course
• Continuing discussions and momentum generated
during weekends
• Learning from each other… ‘moderated’ by myself!
• A pass/fail component (20% or 0%!)
Online discussion fora
October 8th – November 23rd
Hettne, B. (1983) “The Development of Development
Theory”, Acta Sociologica, 26(3/4), pp. 247-266.
Kiely, R. (1999) “The Last Refuge or Noble Savage?: A
Critical Assessment of Post-Development Theory”, The
European Journal of Development Research, 11(1), pp.
31-51.
What is development?
In groups discuss the following:
• How do you define development?
• Following your definition, how can this be
measured?
What is development?
“Development is a concept which is contested both theoretically and
politically”
(Thomas, 2004)
“The vision of the liberation of people and peoples, which animated
development practice in the 1950s and 1960s has thus been replaced by a
vision of the liberation of economies”
(Gore, 2000)
“Post-modern approaches see [poverty and development] as socially
constructed and embedded within certain economic epistemes which values
some assets over others”
(Hickey and Mohan, 2003)
“If development means good change, questions arise about what is good and
what sort of change matters… Any development agenda is value-laden…
Perhaps the right course is for each of us to reflect, articulate and share our
own ideas… accepting them as provisional and fallible”
(Chambers, 2004)
What is development?
Development as
long-term process
of structural societal
transformation
Development as a
short-to-medium
term outcome of
desirable targets
Development as a
dominant
discourse of
western modernity
Sumner and Tribe (2008: 11)
How do we / Can we measure development?
•
Economic conceptions
–
•
Economic and social conceptions
–
•
GNP / GNI (per capita) (World Bank) (or GDP)
HDI (UNDP) (life expectancy, adult literacy, gross enrolment ratio, GDP)
Distributional considerations
–
Gini coefficient (0 = perfect equality; 1=perfect inequality)
•
‘Basic needs’ measures?
•
Empowerment measures
–
•
MDGs
–
•
GEM (UNDP) (Gender equality in politics, business and wages)
8 goals, 18 targets, 47 indicators
Experiential measures? (quotes)
A note on terminology…
The ways different parts of the world (and their peoples) are described
tells us much about who has the power to decide and what is valued
and what is denigrated (revealing biases and assumptions).
•
•
•
•
•
•
•
First world / Third world
Developed / Un/under-developed/least developed (DCs/LDCs)
Developed / Developing
MEDC / LEDC
Global North / Global South
Minority World / Majority World
Post-colonial (historically determinist?)
A brief chronology of development theories
approaches and debates (1950s on…)
1950s
1960s
1970s
1980s
1990s
2000s
Modernisation theories
Structuralist theories – ISI
Modernisation theories
Dependency theories
Dependency theories
Basic needs approach
WID to WAD (development’s effects on women)
Neo-liberalism – market dominance
Participation and grassroots approaches
Sustainable development
GAD
Globalisation and neoliberalism
Post-development (Culture and development)
Globalisation, neo-liberalism and the financial crisis – beyond the MDGs
Climate change
From Washington to Beijing consensus?
Modernisation theories
In groups discuss the following:
Development comprises social, economic,
political and cultural factors – which are
most essential in opening up a space for
development?
Who are the key actors (individuals,
organisations, agencies, institutions) in
bringing about development?
When did development develop?
“For the first time in history humanity possesses the
knowledge and the skill to relieve the suffering of these
people… I believe we that we should make available to
peace-loving peoples the benefits of our store of
technical knowledge in order to help them realize their
aspirations for a better life… Greater production is the
key to prosperity and peace. And the key to greater
production is a wider and more vigorous application of
modern scientific and technical knowledge.”
President Henry Truman (1949) Inaugural speech
YET…
Adam Smith – a world of capitalist production and
exchange that could work for the benefit of all –
specialisation and division of labour
Friedrich List – anti-free trade – protectionism for
‘latercomers’
Karl Marx – processes of capitalist development
inherently violent and dislocating. Rationalist –
secular and scientific world views to replace
superstitious outlooks associated with organised
religion
Social Darwinism – societal typologies – ‘The White
Man’s Burden’
Rooted in ideas of modernisation
•
Emanating from the belief that all societies in the world are converging at
different speeds and from different starting points towards the same end
point – modern industrial society
•
Change in one direction only – from ‘primitive’ (simple, ‘traditional’) to
modern (highly complex, adapted to survival)
•
•
Change = progress
Modernisation = westernisation
•
Set of prescriptions for leaders / similar pattern everywhere = ‘stages of
development’
– Begin with technological innovation
– Industrialisation and accompanying social changes follow
– Division of labour
– More equality of opportunity and social mobility
– Reduced social conflict – moving towards common goal
– Secularisation
Modernisation infusing many areas of
thinking
At an economic level modernisation:
- Is built upon scientific knowledge
- Involves a change from subsistence farming to commercial farming
- Replaces animal and human power with machines
- Entails the spread of urbanisation
- Involves the concentration of the industrial workforce in towns and cities
At a social level modernisation involves:
- The move from tribal systems to ‘democratic’ systems
- The development of education systems to provide training
- A diminished role for religion and traditional beliefs
- A shift from extended family to nuclear family
- Greater social mobility with class position based on achievement
Modernisation infusing many areas of
thinking
At a psychological level – the emergence of a of distinctly ‘modern’ personality
which:
-
Refuses to accept dogmatic (traditional) thinking
Is open to new experiences
Has a conviction that science and reason are superior to emotion
Has high aspirations
Economic development dominating initially…
Adam Smith
An Enquiry into the Nature and Causes of the Wealth
of Nations
‘the progress of England towards opulence and
improvement’ (1776 Vol1:367)
The market the mechanism for maximising efficient
resource use and human well-being
Free trade the key
David Ricardo – theory of ‘comparative advantage’
John Maynard Keynes
The General Theory of Employment, Interest
and Money (1936)
The free market not necessarily a positive force
The key to growth lies in infrastructure
investment creating jobs
A role for the state in promoting growth –
promoting investment either through
monetary policies (e.g. interest rates) and/or
public expenditure
Walt Rostow
The Stages of Economic Growth: A Non-Communist
Manifesto (1960)
Classification of societies - Linear progression
Stage 1: Traditional society
Stage 2: Preconditions for take-off
Stage 3: Take-off
Stage 4: Drive to maturity
Stage 5: Age of mass-high consumption (=
developed)
Post WWII – promoting peace and stability
IMF (1945) – to maintain currency stability
and develop world trade
World Bank Group
- IBRD: 1945: Initially to assist in
rebuilding Europe (Marshall Plan)
Onto the ‘South’ – loans at
concessional rates (infrastructure)
- IDA: 1960: Interest free loans to poorest
nations (80)
GATT (1947)
- To promote free trade among members
(23 in 1947)
- Became WTO in 1995 (124 members)
The ‘aid industry’ begins…
•
Aid = policy response to modernisation theories
•
Poorer countries lagging behind the West
•
The solution? The transfer of large volumes of money, technology and
expertise – external aid combined with national state intervention
•
The 1950s and 1960s – the ‘Golden Age’ of development
- Aid channelled into industrial development and the commercialisation of
agriculture (from subsistence to export-oriented)
- Aid also channelled into large-scale infrastructure projects (a Marshall
Plan for the undeveloped world)
•
Onto MDGs... (see next weekend)
1980s: The return of Smith’s ‘invisible hand’
Neo-liberalism
1970s/80s:
• The problem: State involvement leading to inefficiency and slower rates of
growth – barriers to development internal
•
The solution: Reduce state intervention and leave the market regulate itself
(i.e. set prices, wages, etc…) (Cold War, Thatcherism, Reaganomics)
•
Challenging
– The over-extension of the public sector
– The over-emphasis of economic policies on investment in physical capital rather
than human capital
– The widespread use of protectionist controls (tariffs, subsidies and quotas)
thereby distorting prices
Responding to the Debt Crisis - SAPs
-
1982: Mexico threatens default – debt problem becomes a ‘crisis’
-
Roll-over of commercial debts to IMF
-
Additional lending (to pay existing debts) in return for adoption of structural
adjustment policies
-
Stabilisation (reduce public spending, currency devaluation)
+ Adjustment (FDI, privatisation tax reforms) – the ‘Washington Consensus’
-
1990s: SAPs – PRGF…
Mains characteristics SAPS
Internal reforms – to increase revenue
- Privatisation of state enterprises
- Removal of state subsidies
- Cutting public sector employment
- Tax reforms
- Removal of wage controls (no minimum wage)
External reforms – to increase export earnings ($)
- Currency devaluation (imports expensive, exports cheaper)
- Removal/reduction barriers to trade
- Removal/reduction quotas on inputs
- Removal state control of exports
The results?
Differences across and within countries – however
- Abundant evidence of negative social impacts across the world
- Evidence also of negative economic impacts
Sequencing issues / failure to implement programmes or one size doesn’t fit all?
Malawi case
1964 (independence) - 1970: GDP rose by 5.8%
Exports also up – commercial agriculture
Inequalities increase (1980 Gini at .448)
Late 1970s-80s:
Oil shock, drought, declining terms of trade,
rising interest rates, influx of refugees from
war-torn Mozambique, and declining aid SAPs – 1981
Consequences SAP: ‘71-’70 – GDP growth: 6.1% to 3%
- Inflation: 9.5 to 24.4%
- Food insecurity (prices fertiliser + loss 15% ADMARC)
- Maternal mortality (doubled between ‘96 and 2000)
What about the ‘Asian Miracle’?
NICs: A positive example of modernisation theory and neo-liberal approaches?
- 5-6% increases in GDP from 1960-2000
- Improved living standards
WB (1993) The East Asian Miracle – key factors to success
- Opening up economies to FDI and trade
- Limited state intervention
- Investment in human capital – esp. education
Critics
- No single neo-liberal approach – different approaches, different countries
- High levels state intervention
- Protectionism, not free trade
- Internal inequalities and poverty (regionally and nationally)
- ‘Miracle’ or planned?
‘Crisis’ (’97) – IMF bailouts; China and India now big players (see week 10)