ZCAS UNIVERSITY

BACHELOR OF ECONOMICS AND FINANCE

COURSE CODE: BEF 121

COURSE TITLE: INTRODUCTION TO DEVELOPMENT STUDIES

Dr Austin Mutepuka Mwange

Lusaka, November, 2017

 ©Copyright
ALL RIGHTS RESERVED
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
form or by any means, electronic or mechanical, including photocopying, recording or otherwise
without the permission of ZCAS University.
Table of Contents
Overview of the course – Development Studies...................................................................................... 11
Module Aim............................................................................................................................................. 11
Objectives ............................................................................................................................................... 11
Assessment Details ................................................................................................................................. 12
Required Readings .................................................................................................................................. 12
Time Frame ............................................................................................................................................. 12
Study Skills .............................................................................................................................................. 12
Need Help?.............................................................................................................................................. 12
1.0 UNIT ONE: UNDERSTANDING DEVELOPMENT STUDIES ................................................................. 14
1.1 INTRODUCTION ................................................................................................................................. 14
1.2 AIM .................................................................................................................................................... 14
1.3 OBJECTIVES ....................................................................................................................................... 14
1.4 TIME REQUIRED ................................................................................................................................ 15
1.5 REFLECTION....................................................................................................................................... 15
1.6 Introduction to Development Studies .............................................................................................. 15
1.7 Scope of Development Economics.................................................................................................... 15
2.7.1. Understanding Development Economics and Development Studies ....................................... 16
1.7.2 Breaking Down 'Development Economics' ................................................................................ 16
1.7.3. Defining Development .............................................................................................................. 18
1.8 Goals of Economic Development ...................................................................................................... 18
1.9 Measurement of Development......................................................................................................... 19
1.10 Comparing Levels of Development ................................................................................................. 19
1.11 Sustainable Development ............................................................................................................... 20
1.12 ACTIVITIES ....................................................................................................................................... 20
1.11 SUMMARY ....................................................................................................................................... 21
UNIT TWO: CONCEPTS OF DEVELOPMENT AND UNDERDEVELOPMENT ................................................... 22
2.1 INTRODUCTION ................................................................................................................................. 22
2.2 AIM .................................................................................................................................................... 23
2.3 OBJECTIVES ....................................................................................................................................... 23
2.4 TIME REQUIRED ................................................................................................................................ 23
2.5 REFLECTION....................................................................................................................................... 23
2.6 ECONOMICS OF DEVELOPMENT: CONCEPTS AND APPROACHES ..................................................... 23
 2.10 ACTIVITIES ....................................................................................................................................... 35
2.8 SUMMARY ......................................................................................................................................... 35
UNIT THREE: CLASSICAL THEORIES OF ECONOMIC GROWTH AND DEVELOPMENT .................................. 36
3.1 INTRODUCTION ................................................................................................................................. 36
3.2 AIM .................................................................................................................................................... 36
3.3 OBJECTIVES ....................................................................................................................................... 36
3.4 TIME REQUIRED ................................................................................................................................ 36
3.5 REFLECTION....................................................................................................................................... 37
3.6 CLASSICAL THEORIES OF ECONOMIC GROWTH AND DEVELOPMENT .............................................. 37
3.10 ACTIVITIES ....................................................................................................................................... 44
Taking Zambia as your case study, describe theories that explain Zambia’s development process...... 44
3.11 SUMMARY ....................................................................................................................................... 44
UNIT FOUR: POVERTY, INCOME INEQUALITY AND ECONOMIC DEVELOPMENT ........................................ 46
4.1 INTRODUCTION ................................................................................................................................. 46
4.2 AIM .................................................................................................................................................... 46
4.3 OBJECTIVES ....................................................................................................................................... 46
4.4 TIME REQUIRED ................................................................................................................................ 46
4.6 THE NATURE OF POVERTY .......................................................................................................... 47
4.6.1 Meaning of Poverty........................................................................................................................ 47
4.11ACTIVITIES ........................................................................................................................................ 51
4.12 SUMMARY ....................................................................................................................................... 51
UNIT 5: POPULATION GROWTH AND ECONOMIC DEVELOPMENT ............................................................ 54
5.1 INTRODUCTION ................................................................................................................................. 54
5.2 AIM .................................................................................................................................................... 54
5.3 OBJECTIVES ....................................................................................................................................... 54
5.4 TIME REQUIRED ................................................................................................................................ 55
5.5 REFLECTION....................................................................................................................................... 55
5.6 Population Growth and Quality of Life ....................................................................................... 56
5.7 ACTIVITIES ......................................................................................................................................... 57
5.8 SUMMARY ......................................................................................................................................... 57
UNIT 6: HUMAN CAPITAL: EDUCATION AND DEVELOPMENT .................................................................... 59
6.1 INTRODUCTION ................................................................................................................................. 59
6.2 AIM .................................................................................................................................................... 59
 6.3 OBJECTIVES ....................................................................................................................................... 59
6.4 TIME REQUIRED ................................................................................................................................ 60
6.5 REFLECTION....................................................................................................................................... 60
6.6 HUMAN CAPITAL: EDUCATION AND ECONOMIC DEVELOPMENT .................................................... 60
6.7 ACTIVITIES ......................................................................................................................................... 64
6.8 SUMMARY ......................................................................................................................................... 64
UNIT SEVEN: HUMAN CAPITAL: HEALTH IN ECONOMIC DEVELOPMENT ................................................... 65
7.1 INTRODUCTION ................................................................................................................................. 65
7.2 AIM .................................................................................................................................................... 65
7.3 OBJECTIVES ....................................................................................................................................... 65
7.4 TIME REQUIRED ................................................................................................................................ 66
7.5 REFLECTION....................................................................................................................................... 66
7.6 Health System and Development ..................................................................................................... 67
7.7 The Burden of Infectious Diseases .................................................................................................... 67
7.8 Health System Policy ......................................................................................................................... 68
7.9 ACTIVITIES ......................................................................................................................................... 68
7.10 SUMMARY ....................................................................................................................................... 68
UNIT EIGHT: GENDER AND DEVELOPMENT ................................................................................................ 70
8.1 INTRODUCTION ................................................................................................................................. 70
8.2 AIM .................................................................................................................................................... 70
8.3 OBJECTIVES ....................................................................................................................................... 70
8.4 TIME REQUIRED ................................................................................................................................ 71
8.5 REFLECTION....................................................................................................................................... 71
8.6 GENDER AND DEVELOPMENT: PRINCIPLES AND PRACTICES AND THEORIES ................................... 71
8.7 ACTIVITIES ......................................................................................................................................... 89
8.8 SUMMARY ......................................................................................................................................... 89
9.1 INTRODUCTION ................................................................................................................................. 90
9.2 AIM .................................................................................................................................................... 90
9.3 OBJECTIVES ....................................................................................................................................... 90
9.4 TIME REQUIRED ................................................................................................................................ 90
9.5 REFLECTION....................................................................................................................................... 91
9.6 Agricultural Progress and Rural Development.................................................................................. 91
9.7 The Structure of Agrarian System in the Developing Countries ....................................................... 91
 9.8 The Important Role of Women in Agricultural Production............................................................... 92
9.9 Towards a Strategy of Agricultural and Rural Development ............................................................ 93
9.10 ACTIVITIES ....................................................................................................................................... 93
9.11 SUMMARY ....................................................................................................................................... 93
UNIT TEN: INDUSTRIALISATION STRATEGIES FOR ECONOMIC DEVELOPMENT ......................................... 95
10.1 INTRODUCTION ............................................................................................................................... 95
10.2 AIM .................................................................................................................................................. 95
10.3 OBJECTIVES ..................................................................................................................................... 95
10.4 TIME REQUIRED .............................................................................................................................. 95
10.5 REFLECTION..................................................................................................................................... 96
10.6 Major Structural Shifts ................................................................................................................ 96
10.7 Economic Rationale /Industrialization and Post Industrialization .............................................. 96
10.8 Knowledge Revolution .................................................................................................................... 97
10.9 ACTIVITIES ....................................................................................................................................... 98
10.11 SUMMARY ..................................................................................................................................... 98
11.0 UNIT ELEVEN GLOBALIZATION: INTERNATIONAL TRADE AND DEVELOPMENT................................ 100
11.1 INTRODUCTION ............................................................................................................................. 100
11.2 AIM ................................................................................................................................................ 100
11.3 OBJECTIVES ................................................................................................................................... 100
11.4 TIME REQUIRED ............................................................................................................................ 101
11.5 REFLECTION................................................................................................................................... 101
11.6 Waves of Modern Globalization ................................................................................................... 101
11.7 Trade Strategies of Development ............................................................................................. 102
11.7.1 Export Promotion ................................................................................................................... 102
11.7.2 Import Substitution (IS) .......................................................................................................... 103
11.8 Costs and Benefits of Free Trade .............................................................................................. 104
11.9 Changing Roles of Developing Countries in Global Trade......................................................... 104
11.10 International Migration............................................................................................................... 105
11.11 ACTIVITIES ................................................................................................................................... 106
11.12 SUMMARY ................................................................................................................................... 106
UNIT 11: THE IMPACT OF GLOBALISATION ON DEVELOPING COUNTRIES ............................................... 107
11.1 INTRODUCTION ............................................................................................................................. 107
11.2 AIM ................................................................................................................................................ 107
11.3 OBJECTIVES ................................................................................................................................... 107
11.4 TIME REQUIRED ............................................................................................................................ 107
11.5 REFLECTION................................................................................................................................... 108
11.6 GLOBALISATION AND ITS IMPACT ON DEVELOPING COUNTRIES ................................................. 108
11.6.1 Economic and Trade Process ..................................................................................................... 108
11.6.2 Education and Health Systems............................................................................................... 110
11.7 ACTIVITIES ..................................................................................................................................... 112
11.9 SUMMARY ..................................................................................................................................... 112
12.1 INTRODUCTION ............................................................................................................................. 113
12.2 AIM ................................................................................................................................................ 113
12.3 OBJECTIVES ................................................................................................................................... 113
12.4 TIME REQUIRED ............................................................................................................................ 113
12.5 REFLECTION................................................................................................................................... 114
12.6 DEVELOPMENT INDICATORS ......................................................................................................... 114
12.6.1 Development Diamonds ........................................................................................................ 114
12.6.2 Human Development Index .............................................................................................. 115
12.6.3 Constructing the Human Development Index (HDI) .............................................................. 115
12.7 The New Human Development Index ........................................................................................... 117
12.7.1 Human Development Index (HDI) .......................................................................................... 117
12.7.2 Changes occurred in new Human Development Index (HDI) ................................................ 117
12.7.3 Changes occurred in Life Expectancy Index (LEI) in new HDI calculation .............................. 117
12.7.4 Changes occurred in Education Index (EI) in new HDI calculation ........................................ 118
12.7.5 Changes occurred in Income Index (II) in new HDI calculation ............................................. 118
12.7.6 Changes occurred in new HDI calculation ............................................................................. 118
12.7.7 Change in Human Development Index (HDI) ......................................................................... 119
12.7.8 What is the new method of calculation of Human Development Index (HDI)? .................... 119
12.7.9 Life Expectancy Index assessment as per new HDI calculation method................................ 119
12.7.11 Education Index assessment as per new HDI calculation method ...................................... 119
12.7.12 How to calculate Mean Years of Schooling Index (MYSI) as per new HDI calculation? ....... 120
12.7.13 How to calculate Mean Expected Years of Schooling Index (EYSI) as per new HDI
calculation? ....................................................................................................................................... 120
12.7.14 How to calculate Education Index? ...................................................................................... 120
12.7.15 How to calculate Income Index as per new HDI calculation? .............................................. 120
 12.7.16 How to calculate Human Development Index as per new method? ................................... 121
12.8 Relationship between Economic Growth and Human Development ....................................... 121
12.9 ACTIVITIES ..................................................................................................................................... 121
12.10 SUMMARY ................................................................................................................................... 122
UNIT 13: DEVELOPMENT GOALS AND STRATEGIES .................................................................................. 123
13.1 INTRODUCTION ............................................................................................................................. 123
13.2 AIM ................................................................................................................................................ 123
13.3 OBJECTIVES ................................................................................................................................... 123
13.4 TIME REQUIRED ............................................................................................................................ 123
13.5 REFLECTION................................................................................................................................... 124
13.6 MILLENIUM DEVELOPMENT GOALS.............................................................................................. 124
13.7 SUSTAINABLE DEVELOPMENT GOALS ........................................................................................... 125
13.7.1. Introduction .......................................................................................................................... 125
13.7.2 Background ............................................................................................................................ 126
13.7.3 Official logos for each of the Millennium Development Goals. ............................................. 127
13.8 The 17 SUSTAINABLE DEVELOPMENT GOALS (SDGs) ................................................................... 128
13.8.1 Goal 1: No Poverty ................................................................................................................. 129
13.8.2 Goal 2: Zero Hunger ............................................................................................................... 129
13.8.3 Goal 3: Good Health and Well-being. .................................................................................... 131
13.8.4 Goal 4: Quality Education ...................................................................................................... 132
13.8.5 Goal 5: Gender Equality ......................................................................................................... 132
13.8.6 Goal 6: Clean Water and Sanitation ....................................................................................... 133
13.8.7 Goal 7: Affordable and Clean Energy ..................................................................................... 133
13.8.8 Goal 8: Decent Work and Economic Growth ......................................................................... 134
13.8.9 Goal 9: Industry, Innovation and Infrastructure .................................................................... 136
13.8.10 Goal 10: Reduced Inequalities ............................................................................................. 136
13.8.11 Goal 11: Sustainable Cities and Communities ..................................................................... 136
13.8.12 Goal 12: Responsible Consumption and Production ........................................................... 136
13.8.13 Goal 13: Climate Action ....................................................................................................... 136
13.8.14 Goal 14: Life Below Water ................................................................................................... 136
13.8.15 Goal 15: Life on Land............................................................................................................ 137
13.8.16 Goal 16: Peace, Justice and Strong Institutions ................................................................... 137
13.8.17 Goal 17: Partnerships for the Goals ..................................................................................... 137
 13.9 The process (for arriving at the Post-2015 development agenda) ............................................... 137
13.10 Critique of SDGs .......................................................................................................................... 138
13.11 Implementation of SDGs ............................................................................................................. 139
13.12 The Need for National Sustainable Development Strategy ........................................................ 140
13.13 ACTIVITIES ................................................................................................................................... 141
13.14 SUMMARY ................................................................................................................................... 142
UNIT 14 DEVELOPMENT PLANNING ......................................................................................................... 143
14.1 INTRODUCTION ............................................................................................................................. 143
14.2 AIM ................................................................................................................................................ 143
14.3 OBJECTIVES ................................................................................................................................... 143
14.4 TIME REQUIRED ............................................................................................................................ 144
14.5 REFLECTION................................................................................................................................... 144
4.6 The Nature of Development Planning ............................................................................................ 144
14.7 Objectives of Development Plans ................................................................................................. 146
14.8 The Rationale for Development Planning ..................................................................................... 146
14.8.1 Market Failure ........................................................................................................................ 146
14.8.2 Resource Mobilization and Allocation ................................................................................... 147
14.8.3 Attitudinal or Psychological Impact ....................................................................................... 147
14.8.4 Foreign Aid ............................................................................................................................. 147
14.9 The Planning Process ................................................................................................................ 148
14.10 ACTIVITIES ................................................................................................................................... 148
2.11 SUMMARY ..................................................................................................................................... 149
UNIT 15 CIVIL SOCIETY AND DEVELOPMENT ............................................................................................ 150
15.1 INTRODUCTION ............................................................................................................................. 150
15.2 AIM ................................................................................................................................................ 150
15.3 OBJECTIVES ................................................................................................................................... 150
15.4 TIME REQUIRED ............................................................................................................................ 150
15.5 REFLECTION................................................................................................................................... 150
15.6 THE ROLE OF CIVIL SOCIETY ORGANISATIONS IN DEVELOPMENT................................................ 151
15.6.1 Is sovereignty of any country affected by the demands of civil society? .............................. 151
15.6.2 Definition of Civil Society ....................................................................................................... 152
15.6.3 Formation of Civil Society ...................................................................................................... 152
15.6.3 The Impacts of Civil Society ................................................................................................... 153
 15.6.4 Before Modernity................................................................................................................... 153
15.6.5 Civil society is social relations area and government is political relations area .................... 153
15.6.6 Development and Influence of Civil Society on it .................................................................. 154
15.7 ACTIVITIES ..................................................................................................................................... 155
15.8 SUMMARY ..................................................................................................................................... 155
16 REFERENCES ............................................................................................................................................. 1
Overview of the course – Development Studies
Welcome to the Introduction to Development Studies course. There is no better way of giving
an overview of the course, Introduction to Development studies than that given by the
University of Melbourne’s School of Social and Political Sciences, “Development Studies is a
dynamic field concerned with processes of social, economic, political and cultural change in
the global South. This course provides students the opportunity to critically examine
processes of managed change in the developing world, as well as a skills set to intervene in
such processes. Through this course, students will better understand the nature of policies and
relationships at local, national and international levels that have shaped poverty, inequality
and insecurity in the contemporary world. The course examines themes such as debt and
global poverty, environmental sustainability, the relationship between citizens and the state,
culture and human rights, globalisation, national sovereignty, gender inequity, social
exclusion, health, education and migration.”

In a nutshell, introduction to development studies introduces development theories and

ideologies, colonisation, industrialisation, globalisation, dependency, rural development,
urbanization, migration, gender, health, education, children, indigenous peoples and
environment.

Module Aim
The aim of this module is to introduce students to the development theories, ideologies and
practices that are essential in promoting economic growth and development in developing
countries.

Objectives
On completion of this module, students are expected to be able to:

1. engage critically with processes of social, economic, political and cultural change in the
global South;
2. communicate knowledge effectively about the challenges and processes of processes of
social, economic, political and cultural change in the global South;
3. demonstrate a broad knowledge of the field of development studies;
4. demonstrate an awareness of the historical and contemporary relationship between developed
and developing societies;
5. acquire critical insights into the key themes such as debt and global poverty, environmental
sustainability, the relationship between citizens and the state;
6. develop skills in analysis of policies, institutions and approaches to development; and
7. be prepared for becoming good global citizens;
8. work with independence, self-reflection and creativity to meet goals and challenges in the
workplace and personal life; and
9. work effectively in groups to meet a shared goal with people whose disciplinary and cultural
backgrounds differ from their own.
Assessment Details

Continuous Assessment – 50 marks broken down as follows:

2 individual assignments (10 marks each); and 2 tests (15 marks each); and Final Exam – 50
marks

Required Readings
Todaro M.P and Smith S.C. (2011). Economic Development. New York: Addison Wesley.
The Elgar Companion to Development Studies.

Time Frame
You will be required to spend up to 120 hours to learn, complete tasks and assignments and the
final continuous assessment.

Study Skills

Please study through each unit and complete the tutorials and tasks on the portal; participate in
forum discussions; chat with the lecturer via social media on the university portal to seek
individual attention.

Need Help?
If you need any help do not hesitate to contact the course tutor:
Email: [email protected]
ZCAS/ ZCAS University
Dedan Kimathi Road, P.O. Box 35243
Lusaka, Zambia
Tel: + 260 211 232093/5
Fax +260 211 22253
13 | P a g e
1.0 UNIT ONE: UNDERSTANDING DEVELOPMENT STUDIES

1.1 INTRODUCTION
According to Clark (2005), “Development studies is a vast and rapidly expanding
field of inquiry, which brings together contributions from many different
disciplines and perspectives. As it has expanded, it has been divided into sub-disciplines
(such as economic growth, social development, governance and development ethics), which
are typically shared with single disciplinary subjects such as economics,
sociology/anthropology, politics and philosophy. This module and particularly this unit
provides an overview of key topics in development from a variety of different perspectives. It
also attempts to reflect on the nature, scope and state of development studies’ contribution to
solving economic challenges of developing countries.” The origins of development studies
are often traced back to the advent of development economics in the post war era. The late
1940s and early 1950s witnessed a rapid expansion in development economics, as the
concepts, methods and tools of mainstream economics were applied to the problems of post-
war reconstruction and development in Europe. The same methods and tools were quickly
transferred to the study of poor countries in Africa, Asia and Latin America following the
first wave of political independence and a vast new industry was born.

1.2 AIM
The aim of this unit is describe the overview of development studies and
understand the comparison or relationship between development studies and
development economics.

1.3 OBJECTIVES

At the end of this unit students should be able to do the following

 Appreciate the emergency of development studies as a field of study and

the role it plays in economic development.

 Give an account of the evolution of development economics; and

 Define development

14 | P a g e
1.4 TIME REQUIRED

You are required to spend a minimum of 21 hours reading this unit and its
references and performing activities.

1.5 REFLECTION

Development can only be understood and appreciated if it is defined in

only one way. Discuss.

1.6 Introduction to Development Studies

Development studies sets out to understand and analyse the processes that are transforming
people’s lives around the world. You will study key development issues and ideas, and
develop skills to help solve development problems.

In the past, development studies focused on the world’s poorer countries and how Western
solutions could be applied to their problems. We now recognise that the impact of global
economic, political and social forces are universal—and embrace and connect us all. Our
different cultures, environments and resources, however, inevitably lead to different
outcomes for people.

Development solutions need to recognise local cultural, social and environmental differences,
and that Western science and technology must work with and learn from indigenous
knowledge systems.

1.7 Scope of Development Economics

Traditional economics which comprises classical and neoclassical economics is concerned
with how scarce productive resources are efficiently allocated with growth over time in order
to produce an over expanding range of goods and services. However, development has an
even greater scope. In addition, it must be concerned with the economic, social, political and
institutional transformation of entire societies necessary to bring about rapid and large scale
improvement in the levels of living of the masses of poverty stricken malnourished and
illiterate peoples of Africa, Asia and Latin America. Development should therefore be

15 | P a g e
associated with increase in GDP per capital, structural changes and appropriate measures for
the disaggregated indices of development.

The focus of traditional economics mainly on growth in the discussion of development may
be an inappropriate approach. We need to put distribution process at the centre of
development conceptualization. Closely related to distribution is the issue of employment.
Empirical evidence shows that there is a high rate of unemployment in developing countries
which are conducive to political instability. There is also the issue of manpower development
objective. A developing country is one whose human resources are developed and effectively
utilized. Therefore, the focus should be on human resource, viz-a-viz utilization rather than
focus on GNP per capital. A critical factor in the development process is the non-economic
dimensions of development problems. As economists are concerned with economic
explanation of low income levels, how employment" can be increased, they came to realize
that without clear understanding of other non economic aspects of development, the concept
of development cannot be meaningfully resolved. Today, there is a whole field of study
called sociology of development and a new field of study in political science known as
politics of development

2.7.1. Understanding Development Economics and Development Studies

What is 'Development Economics'

According to Investopedia, “Development economics is a branch of economics that focuses

on improving the economies of developing countries. Development economics considers how
to promote economic growth by improving factors such as health, education, working
conditions, domestic and international policies, and market conditions in developing
countries. It examines both macroeconomic and microeconomic factors relating to the
structure of a developing economy and how that economy can create effective domestic and
international growth.”

1.7.2 Breaking Down 'Development Economics'

Development economics seeks to determine how poor countries can be transformed into
prosperous ones. Strategies for transforming a developing economy tend to be unique
because the social and political background of countries can vary dramatically. Some
prominent development economists include Jeffrey Sachs, Hernando de Soto Polar, and
Nobel Laureates Simon Kuznets, Amartya Sen and Joseph Stiglitz. In development
economics, students and professionals create theories and methods that guide practitioners in

16 | P a g e
determining practices and policies that can be used and implemented on the domestic and/or
international level.

Mercantilism

Mercantilism was a dominant economic theory practiced in Europe during the 16th to the
18th century. It promoted augmenting state power by lowering exposure to rival national
powers. Much like political absolutism and absolute monarchies, mercantilism promoted
governmental regulation by not allowing colonies to transact with other nations. It
monopolized markets with staple ports, banned gold and silver exports, did not allow the use
of foreign ships for trade and optimized the use of domestic resources.

Economic Nationalism

Economic nationalism covers policies that focus on domestic control of capital formation, the
economy and labor with the acceptance of the use of tariffs and other limits, and restrictions
on the movement of capital, goods and labor. To an extent, economic nationalists do not
agree with the benefits of globalization and unlimited free trade. As such, economic
nationalism may adhere to import substitution and protectionism.

Linear Stages of Growth Model

The linear stages of growth model was used to revitalize the European economy after the
second world war. It states that economic growth can only stem from industrialization. It also
agrees that local institutions and social attitudes can restrict growth, specifically if these
influence people's savings rates and investments. The liner stages of growth model portrays
an appropriately designed addition of capital partnered with public intervention. This
injection of capital and restrictions from the public sector lead to economic development and
industrialization.

Other notable theories include the structural change theory, the international dependence
theory and the neoclassical theory.

Development Economics, a subject that studies the economics of the developing world, has
made excellent use of economic theory, econometric methods, sociology, anthropology,
political science, biology and demography and has burgeoned into one of the liveliest areas of
research in all the social sciences. My limited approach in this brief article is one of
deliberate selection of a few conceptual points that I consider to be central to our thinking
about the subject. The reader interested in a more comprehensive overview is advised to look

17 | P a g e
elsewhere (for example, at Dasgupta (1993), Hoff, Braverman and Stiglitz (1993), Ray
(1998), Bardhan and Udry (1999), Mookherjee and Ray (2001), and Sen (1999)

1.7.3. Defining Development

What is development? How do we determine which countries are more developed and less
developed? These questions are readily answered as follows. The increase in gross national
product per capital usually connotes economic growth. Development is really much more
than simply economic growth, it goes far beyond the objective of increased average income
to include factors like education or elimination of poverty, inequality and unemployment
within the context of growing economy. Development has been conceived as a multi
dimensional process involving economic as well as social and environmental changes. We
shall attempt to explain in the course of this unit, some complex relationships among various
aspects of development including population growth, economic growth, education and health
etc. Modern concept of development sees development as substantial improvement in
people's quality of life; access to education and health care, employment opportunities,
availability of clean air and safe drinking water, the threat to crime etc.

1.8 Goals of Economic Development

Different countries have different priorities in their development policies. The questions to
ask are: Is the development goal to increase national wealth or improving the well-being of
the majority of the population or ensuring peoples freedom? Or increasing their economic
security?

The recent United Nations (UN) documents emphasize “human development” measured by
life expectancy, adult literacy, access to all three levels of education as well as people's
average income which determines their freedom of choice. In a broader sense, human
development can be conceptualized to incorporate all aspects of individuals well-being from
their health status to their economic and political freedom.

It is true that traditional economics which is concerned with economic growth by increasing a
nation’s total wealth can enhance its potential for reducing poverty. However, examples
abound where economic growth was not matched by progress in human development.

Economic goals must be constantly nourished by fruits of human development which

enabling conditions include -health services, education services, employment opportunities
democracy, environmental protection, etc. Conversely, slow human development can put an
end to fast economic growth which enabling conditions are qualified labour, technological

18 | P a g e
innovation and sound management. “Human development is the end -economic growth a
means.”

1.9 Measurement of Development

In strict economic sense, GNP per capita is an index of economic growth. In practice,
economists use gross national product (GNP) per capita or gross domestic product (GDP) per
capita for the same purpose. These statistical indicators provide a rough measure of relative
productivity with which countries use their resources.

GDP is calculated as the value of the total final output of all goods and services produced in a
given year within the country's boundaries. GNP is GDP plus net income from abroad which
is made up of the difference between incomes received by residents from abroad and incomes
received by non- residents.

GNP may be much less than GDP if much of the income from a country's production flows to
foreign persons or firms GDP and GNP can serve as indicators of the scale of a country
economy. However, to judge a country's level of economic development, these indicators
have to be divided by the country's population. GDP per capita and GNP per capita show the
approximate amounts of goods and services that each person in a country would be able to
buy in a year if incomes were divided equally. Although, this measure reflect the average
income in a country GNP per capita and GDP per capita have numerous limitations when it
comes to measuring peoples actual well being. They do not show how equitably a country's
income is distributed; they do not account for pollution, environmental degradations and
resource depletion. A more popular, though apparently more disputable approach involves
dividing all countries into ‘developing’ and ‘developed’. This classification does not however
work well in all cases. For example a group of high income developing countries that
includes Israel, Kuwait, Singapore and the United Arab Emirate (UAE) are considered
developing because of their economic structure, although their incomes formally place them
among developed countries.

1.10 Comparing Levels of Development

The endowment of countries with natural resources is unequal. While some countries benefit
from fertile agricultural soils others put a lot of effort into artificial soil amelioration. Some
countries like Nigeria, Iraq, Iran have rich oil and gas deposits within their territories, while
others have to import fossil fuels. However, a wealth of natural resources is not the most
important determinant of development success rather, the productivity with which countries

19 | P a g e
use their productive resources physical capital, human capital and natural capital -is widely
recognized as the main indicator of their level of economic development.

Economists calculate how productively countries use their capital, but such calculating are
challenging because of the difficulty of putting values on elements of natural and human
capital. In practice economists use GNP per capita or GDP per capital as we have earlier
discussed.

1.11 Sustainable Development

The term sustainable development is widely used by politicians all over the world. Even
though, the notion is still rather new and lacks uniform interpretation. According to the
United Nations World Commission on Environment and Development (1987) development is
sustainable if it “meets the needs of the present without compromising the ability of future
generations to meet their own needs. Sustainable development could also be called equitable
and balanced development in as it concerns the interests of different groups of people within
the same generation and among generations and do so simultaneously in three major
interrelated areas -economic, social and environmental. .The economic objectives include
growth, efficiency and disability. The social objectives are full employment, equity, security,
education, health, participation and cultural identity. The environmental objectives relate to
healthy environment for humans, rational use of renewable natural resources and
conservation of non-renewable natural resources.

Arguably, the most critical problem of sustainable development in each country as well as
globally, is eradication of extreme poverty. War as well as poverty is inherently destructive
of all economic as well as social and environmental goals of development.

The Rio Declaration (1992) puts it this way “Human beings are at the centre of concern for
sustainable development. They are entitled to a healthy and productive life in harmony with
nature”.

1.12 ACTIVITIES

How different are Sustainable Development Goals from the Millennium

Development Goals in addressing development challenges of the South.

20 | P a g e
1.11 SUMMARY

In this unit, we started out by looking at the general scope of development

economics including the non-economic dimensions of development. We went
ahead to discuss the meaning of development which is a new dimension to the
earlier held view of traditional economists. We then looked at the several goals and means of
development. We further discussed the GNP per capita and GDP per capita as a measure of
relative productivity.

In comparing levels of development, we looked at the productive resources of a country -

physical capital human capital and natural capital as the main indicators of the country's level
of economic development.

Lastly, we discussed the concept of sustainable development and concluded that in the final
analysis sustainable development is about long-term conditions for humanity’s
multidimensional well-being.

This first unit of the course is concerned with the bird’s eye view of development. Thus, it
looks at the concept and scope of development, the goals of development and more
importantly, the yardsticks for measuring development. The unit further describes how levels
of development are compared among developing countries. We brought the unit to an end
with a discussion on the conditions for sustainable development. This unit forms the
background of our discussion in the second unit which deals with the classical theories of
development.

21 | P a g e
UNIT TWO: CONCEPTS OF DEVELOPMENT AND UNDERDEVELOPMENT

2.1 INTRODUCTION

In economic terms, development has been understood as achieving sustainable

rates of growth of income pa capita to enable the nation to expand its output faster
than the population (Todaro and Smith 2011). This definition fails to take into consideration
problems of poverty, discrimination, unemployment and income distribution; the assumption
being that increased output or economic growth would deal with these issues.

In sociological terms, the term ‘development’ is used ( often by Western sociologists) to

mean industrialization, economic growth and the living standards associated with prosperity,
such as increased life expectancy, health-care, free education, etc. Those countries that have
not yet achieved these objectives are said to be ‘undeveloped’ and are often termed ‘less-
developed countries’ (LDCs).

This definition of development is both loaded and ethnocentric – it reflects the view that
Westernisation is the only worthwhile and desirable direction development should take. Not
all sociologists agree with this definition of development. For example, some regard
liberation from oppression as more important to progress than industrialisation. Others regard
industrial development as a problem if it means increasing social and economic divisions
within a country.

The views on development above think of development as material or social change in the
material world. However, others (Myers 1999) providing a religious view on development
consider it as a positive change in the whole of human life materially, socially and spiritually.
Myers calls this transformational development. Todaroand Smith (2011) sum up development
and underdevelopment using 3 key questions asked by Duddley Seers;

 What has been happening to poverty?

 What has been happening to unemployment?
 What has been happening with inequality?

22 | P a g e
They conclude that if the three of these have declined from higher levels, then beyond doubt,
this has been a period of development. If one or more of these problems have been growing
worse, especially if all the three have, then that would be a period of ‘underdevelopment.

2.2 AIM

The aim of this unit is to introduce students to concepts of development and

underdevelopment, so than sharpen their engagement in the development
challenges discourse.

2.3 OBJECTIVES

At the end of this unit you should be able to do the following

 define the key concepts of development and under-development;

 discuss why some countries develop and others remain poor?

 understand the sources of development and how do we measure development?

2.4 TIME REQUIRED

To get a deeper understanding and appreciation of this unit, you are required to
spend a minimum of 20 hours on this unit

2.5 REFLECTION

Zambia is said to be a construction site as you can see infrastructure such

as roads, schools, hospitals, shopping malls, airports, and so on being
built. This said to be development. Do you agree with this statement?

2.6 ECONOMICS OF DEVELOPMENT: CONCEPTS AND APPROACHES

23 | P a g e
Economics of development refers to the problems of economic development of
underdeveloped countries. In the early days, the focus was on problems that were statistic in
nature and largely related to a Western European framework of social and cultural
institutions. However, after the Second World War economists started devoting attention
towards analyzing the problems of underdeveloped countries and formulating theories and
models of development and growth. The interest in economics of development was further
stimulated by the wave of political resurgence that swept across Asia and Africa which
gained independence after the world war. After the Second World War, the poverty and
backwardness of some of the world countries became extremely conspicuous. Many reasons,
including colonial exploitation, devastation by war, war-induced inflation and the like, could
possibly be said to be responsible for such a sad state of affairs in many countries. It is
precisely at this time that the subject of development economics came into being to study the
problems of backwardness and underdevelopment of these nations.

Development economics (DE) was basically designed to theorize on economic backwardness

of the less developed countries (LDCs) and apply the theoretical knowledge to the analysis of
particular problems of underdevelopment, low income and poverty, and to find ways and
means to solve these problems. DE is indeed a blend of many types of issues and questions,
including the analysis of causation and its perpetuation, and policies towards solution of a
host of problems relating to underdevelopment. The purpose of DE has been

24 | P a g e
mainly to study the phenomenology of underdevelopment, and to prescribe appropriate
policies to eradicate it. Theories developed by development economists have encompassed
the theoretical underpinnings of empirical facts drawn across the board from socio-
economic-political realms of life of many poor countries.

2.7 Economic growth Versus Economic development

Economists often tend to use the two terms economic development and economic growth
interchangeably, as they appear to be synonymous with each other. The economic
development of a country is defined as the development of the economic wealth of the
country. Economic development is aimed at the overall well-being of the citizens of a
country, as they are the ultimate beneficiaries of the development of the economy of their
country.

Economic development is a sustainable boost in the standards of living of the people of a

country. It implies an increase in the per capita income of every citizen. It also leads to the
creation of more opportunities in the sectors of education, healthcare, employment and the
conservation of the environment.

Economic growth on the other hand, is a narrower concept than economic development. It is
defined as the increase in the value of goods and services produced by every sector of the
economy. It is usually expressed in terms of the gross domestic product or GDP of the
country.

2.8 Measurement of economic development

Economic development is measured in four ways:-
1. Gross National Product (GNP):

2. GNP per capita

3. Welfare

25 | P a g e
4. Social Indicators

2.8.1 Gross National Product

GNP is the total value of all final goods and services produced within a nation in a particular

26 | P a g e
year, plus income earned by its citizens (including income of those located abroad), minus
income of non-residents located in that country. Basically, GNP measures the value of goods
and services that the country's citizens produced regardless of their location. GNP is one
measure of the economic condition of a country, under the assumption that a higher GNP
leads to a higher quality of living, all other things being equal. Closely related to GNP is
Gross Domestic Product (GDP):- which is the total market value of all final goods and
services produced in a country in a given year, equal to total consumer, investment and
government spending, plus the value of exports, minus the value of imports.

One common way of measuring development is the increase in the economy’s real national
income over a long period of time. GNP as a measure of national development is faced with
several challenges including:

i. It fails to take into consideration changes in growth of population. If a rise in real

national income is accompanied by a faster growth in population, there will be no economic
growth but retardation.

ii. The GNP figure does not reveal the costs to society of environmental pollution. It
considers natural resources to be free.

iii. It tells nothing about the distribution of income in the economy.

iv. GNP is always measured in money terms, but there are a number of goods and
services which are difficult to measure in terms of money e.g. taking care of the children by
the mother.

v. Double counting which arises from the failure to distinguish properly between final
and intermediate products.

GNP as an index of economic development has not been successful in reducing poverty,
unemployment, inequality nor has it helped raise standards of living in developing countries.
Therefore, on its own GNP cannot be regarded as a satisfactory measure of economic
development.

27 | P a g e
2.8.2 GNP per capita

This relates to increase in the per capita real income of the economy over the long period.
This indicator of economic growth emphasizes that for economic development the rate of
increase in real per capita income should be higher than the growth rate of population.
However, several difficulties still remain:-

28 | P a g e
i. An increase in per capita income may not raise real standard of living of the masses.

ii. There is possibility that the masses remain poor despite an increase in the real GNP
per capita if the increased income goes only to the few rich instead of going to the many
poor.

iii. International comparisons of the real GNP per capita are inaccurate due to exchange
rate conversion of different currencies into a common currency.

iv. The real GNP per capita fails to take into account problems associated with basic
needs like nutrition, health, sanitation, housing, water and education.The

improvement in living standards by providing basic needs cannot be measured by

increase in GNP per capita.

Despite these limitations, the real GNP per capita is the most widely used measure of
economic development

2.8.3 Welfare

Economic development is often measured from a welfare point of view. From this
perspective, economic development is regarded as a process whereby there is an increase in
the consumption of goods and services by individuals. From a welfare perspective, economic
development is defined as a sustained improvement in material well-being, which is reflected
in an increasing flow of goods and services. Welfare as a measure of economic development
has its own limitations:-

i. The first limitation arises with regard to the weights to be attached to the consumption
of individuals. Consumption of goods and services depend on the taste and preferences of
individuals. It is therefore not correct to have the same weights in preparing the welfare index
of individuals.

ii. Caution should be exercised with regard to the composition of the total output that is
giving rise to an increase in per capita consumption, and how the output is valued. The

29 | P a g e
increased total output may be composed of capital goods. It may be at the cost of a reduced
output of consumer goods.

iii. From the welfare point of view, we must also consider not only what is produced but
how it is produced. The expansion of real national output might have resulted from long
hours of labour and deterioration of working conditions of the labour force.
iv. Increase in welfare might be accompanied by increased inequality in distribution of

income i.e. the rich might have become richer and the poor poorer.

30 | P a g e
2.8.4 Social Indicators

Due to dissatisfaction with GNP/GNP per capita as measures of economic development,

certain economists have tried to measure it in terms of social indicators. Some indicators are
‘inputs’ e.g. nutrition standards or number of hospital beds or doctors per head of population
while others are outputs e.g. infant mortality rates, sickness rates etc. Social indicators are
normally referred to as basic needs of development. The direct provision of basic needs such
as health, education, food, water, sanitation and housing affects poverty in a shorter period
and with fewer monetary resources than GNP/GNP per capita strategy which aims at
increasing productivity and incomes of the poor automatically over the long run. The
limitations of social indicators as measures of economic development include:-

i. There no unanimity among economist as to the number and type of items to be

included in such an index.

ii. There is the problem of assigning weights to the various items which may depend
upon the social, economic and political set-up of the country.

iii. Majority of indicators are ‘inputs’ and not ‘outputs’ such as education, health etc

iv. They involve ‘value judgements’ hence they are not popular.

2.8.5 Economic growth and income distribution: The Kuznets hypothesis

There has been much controversy among economists over the issue of whether economic
growth increases or decreases income distribution. Prof. Simon Kuznets was the first
economist to study this problem empirically. He observed that in the early stages of economic
development relative income inequality increases, stabilizes for a time and then declines in
later stages (forming Kuznets curve as in the figure below)

31 | P a g e
Causes of increase in inequality with development

There are many factors that tend to increase relative income inequality in the early stages of

32 | P a g e
development of poor countries.

Poor countries are characterized by geographic, social, financial and technological dualism.
When the process of transition from a traditional agricultural society to modern industrial
economy begins, it increases inequalities in income distribution. There are structural changes
which lead to increasing employment opportunities, exploitation of new resources and
improvements in technology. All these lead to increase in per capita income in the industrial
sector. The incomes of workers, managers, entrepreneurs etc in urban areas increase more
rapidly. But income per capita of workers engaged in agricultural and non-agricultural
occupations in rural areas does not rise due to subsistence agriculture, defective land tenure
system and rural backwardness.

The industrial sector uses capital-intensive techniques which absorbs only educated, skilled
and trained workers. Workers in this sector have high incomes and employers earn large
profits. Thus the modern industrial sector grows faster than the rural subsistence sector. As a
result, the relative share of income and profit in national income of this sector rises, more
than in the rural sector.

The migration of rural population to urban areas does not provide gainful employment
opportunities to the uneducated and unskilled people in towns and cities. The majority of
them take up low skilled jobs e.g. vegetable and fruit vendors, car washers, domestic servants
etc. All such persons are underemployed and have low incomes. With technological advance
and increase in financial facilities in urban areas, new class of entrepreneurs emerges which
leads to diversification in manufacturing, trade and business. Consequently, incomes and
profits of persons engaged in them increase. There is also urban bias in the allocation of
financial resources for development on part of government with the result that the rural
economy remains backward with disguised unemployment and low per capita income. Above
all, higher growth rate of population among the masses in LDCs increases the absolute
number of people and hence relative inequality.

2.9 Causes of reduction in inequality with development

33 | P a g e
Kuznets gives two reasons for the decrease in inequality of income distribution when the
country reaches high income levels in the later stages of development. First, the per capita
7

34 | P a g e
income of the highest income groups falls because their share of income from property
decreases. Second the per capita income of the lowest income groups rises when government
takes legislative decision with respect to education And health services, inheritance and
income taxation, social security, full employment and economic relief either to whole groups
or individuals.

As development proceeds, it sets in motion a chain of cumulative expansion in the industrial

sector, thereby leading to higher per capita income. This in turn increases the demand for
farm products and other products and backward areas which raises the per capita income of
the people of these areas. In development economics literature, this is called “trickling down
effects” or ‘spreads effect’ of development. Besides the incomes of rural areas, also increase
from urban remittances and or/foreign remittances. People belonging to rural areas but
working in urban areas and or living in foreign countries remit large sums to their dependants

2.10 ACTIVITIES

Define development according to Dudley Seers (1920 – 1983) a British economist

specialized in development

2.8 SUMMARY

This unit looked the problematic nature of defining development. It looked

that the causes of underdevelopment. Some common measurements of
development where also highlighted. The next unit looks at classical theories
of development

35 | P a g e
UNIT THREE: CLASSICAL THEORIES OF ECONOMIC GROWTH AND
DEVELOPMENT
3.1 INTRODUCTION
This unit introduced classical theories of development. These theories include: the
linear stages of growth model; theories and patterns of structural change; the
international –dependence revolution; and the neo-classical, free- market counterrevolution.
Although there is no consensus of opinion, out of these theories we might be able to get what
these theories are about and form what policies..

3.2 AIM

The aim of this unit is to provide students with various theories that explain
development.

3.3 OBJECTIVES

At the end of this unit you should be able to do the following

 analyse the different classic theories of economic development;

 explain the limitations to the theories;

 explain the ideological, theoretical and empirical differences of the theories; and

 explain how such differences would be reconciled.

3.4 TIME REQUIRED

You are required to spend a minimum of 20 hours on this unit to gain a deeper
appreciation of classical theories that explain development.

36 | P a g e
3.5 REFLECTION

Do you think there is need to understand the theoretical explanation of

development? Is there one theory that give a clear explain the
development process?

3.6 CLASSICAL THEORIES OF ECONOMIC GROWTH AND DEVELOPMENT

After the World War II literatures on economic development has been dominated by four
major and sometimes competing schools of thought. These theories attempt to explain various
aspects of development.

These theories include (i) the linear stages of growth model (ii) theories and patterns of
structural change (iii) the international –dependence revolution and (iv) the neo-classical,
free- market counterrevolution. Although there is no consensus of opinion, out of these
theories we might be able to get what these theories are about and form what policies. We
shall start our theoretical analysis by looking at the classical theory of the linear stages of
growth model.

3.7 Development as Linear-Stages of Growth

The evolution of stage theories of economic development is essentially the contribution of

economic historians who have studied the economic experience of developed countries and
have tried to systematize that experience into several stages. The implication of stage theories
is that for development to occur, countries have to go through different stages that have been
identified in a sense replicating some countries that have developed in the past. However,
there are some limitations.

3.7.1 Rostow’s Stages of Growth

Wait. W. Rostow in the late 1950s published a book called “The Stages of Economic
Growth”. It made a lot of impact on the economic development scene and generated a lot of
controversies. Rostow postulated that “it is possible to identify all societies, in their economic
dimensions, as lying within one of five categories: the traditional society, the pre-conditions

37 | P a g e
for take-off into self-sustaining growth, the take-off, the drive to maturity, and A the stage of
high mass consumption.

The traditional stage simply describes the characteristics of most traditional stages, ie,
economy operating largely at a subsistence level. In it, the economic well-being is very much
circumscribed in which there economic well-being is very much circumscribe there is very
little centralization of authority -fragmentation of political authority. There is relatively little
economic growth with savings rate being very low. The traditional stage gives way to the pre-
condition stage as a result of some changes in the traditional socio-economic system.

In the precondition for take-off into self-sustaining growth stage, there is the emergence of an
elite group that is committed to the modernizing of the economy, i.e., introducing a modern
economy such acts usually involves the establishment of central political authority, the
elimination of trade barriers that previously existed in the system which resulted from
amalgamation of politico-economic system or by the creation of appropriate transport and
communication facilities to bring various systems together. There is also the establishment of
social overhead capital. Such infrastructures include transport, communication, education,
health facilities etc. There is significant expansion of agricultural production. It is evident that
in the pre-condition stage, you begin to have the improvement in agriculture and the positive
growth in income. However, the precondition stage is marked by the existence of the
traditional stage.

The self-sustained stage is the most important stage because it presents the demarcation line
between a traditional economy and a modem self-sustained economy.

The features of this stage include the emergence of a leading sector which grows at such a
rapid stage and it is so interlinked with other sectors of the economy. For the leading sector to
contribute to economic sustenance, it has to have backward and forward linkage. The leading
sector will be able to purchase its input from other sectors (backward linkage). The forward
linkage represents the sales of its output to other sectors for use as inputs thus providing
additional stimulus to these other sectors. The drive to maturity stage is a situation in which
traditional methods of production are almost completely eliminated while modem technology
is applied to almost all aspects of production it takes up to fifty years or so before it is
complete. At this time, the economic system has acquired the technological capability to
produce almost all commodities.

38 | P a g e
The stage of high mass consumption is characterized by the existence of relatively high
income per capital and the ability for the income to engage in wide range of consumer
durables -cars, refrigerators, stereo sets, air conditioners. It is associated with relatively large
amount of leisure for working masses. It was argued that advanced countries had all passed
the stage of "take-off into self sustaining growth and the underdeveloped countries that were
still in either the traditional society or the pre conditions stage had only to follow a certain set
of rules of development to take off in their turn into self -sustaining economic growth.

A major critique of Rostows model is that there is always an overlap between one stage and
the other, thus his classification of five stages of growth (development) do not constitute a
valid theory of economic development as such.

3.7.2 The Harrod -Domar Growth Model (H -D Model)

The H – D growth model ascribes the economic mechanism by which more investment leads
to more growth. This model is based on the premise that every economy must save a certain
proportion of its national income, if only to replace worn out capital goods (buildings,
equipments, materials). However in order to grow, new investments representing net additions
to the capital stock are necessary. This is related to the equation below.

Y S (1
)
......... .........
Y K

Where s = national savings ratio; k = capital output ratio

DY N = rate of growth of GNP:

Equation 1 is a simplified version of the famous equation in the Harrod– Domar theory of
economic growth.

39 | P a g e
It states simply that the rate of growth of GNP is determined jointly by the national savings
ratio(s), and the capital – out put ratio(k). The economic logic is that in order to grow,
economies must save and invest a certain proportion of their GNP.

3.8 Structural -Change Models

The structural change theory has as its main focus, the means by which underdeveloped
economic transform subsistence agriculture to a most modern, more urbanized and more
industrially diverse manufacturing and service economy. It utilizes a combination of
neoclassical price and resource allocation theory and modern economics to describe how this
transformation process takes place.

3.8.1 The Lewis Theory of Development

W. Arthur Lewis in the mid -1950s formulated one of the best known theoretical models of
development that focused on the structural transformation of a subsistence economy. The
model is based on the 1954 article from the Journal of the Manchester school of Economics.
Basically, he conceptualized the economy in terms of the sectors, ie what he calls the
capitalist sector and the traditional sector. The capitalist sector in his model provides the
engine for growth of the economy and as the capitalist sector expands, economic growth and
development expand. Initially, the traditional sector represents the large sector and the
capitalist sector, the small one. This according to Lewis explains how the capitalist sector gets
to grow large in size at the expense of the traditional sector. Lewis looked at development as
a process of the transformation of the traditional economy into a modern capitalist sector.

Lewis Makes Three Assumptions

First, there is the existence of unlimited supply of labour at subsistence wages in the
economic system. He identifies these sources as the agricultural sector and the urban sector.

40 | P a g e
Secondly, employment expands in the capitalist sector as far as capital formation expands.
Third, it is only the capitalists that save in the system. The presumption is that for most wage
earners, savings is very little out of their wages. If there were to be capital formation, it was
to be from the savings of the capitalistic; savings from wages and salaries if they exist will be
minimal.

For Arthur Lewis, the increase in the share of savings is very vital for the development
process. The expansion of the capitalist sector becomes a very critical process. The process of
expansion can be kept going if the productivity of workers in the subsistence sector is
improved. Labour is then released to the capitalist modem sector. In the extreme case, a
situation will exist when the productivity of labour in the urban modem sector is increased to
the level that the productivity will be the same as that in the traditional sector, i.e, the
marginal productivity will be the same in a situation like that, dualism must have been
eliminated.

Lewis shows how the size of the traditional sector is reduced and the modem sector increased
while transforming the economy.

The criticisms of the Lewis model are as follows:

(a) A point of departure is the extent to which unlimited supply of labour is

available.

(b) Based on Japanese development experience, the assumption of constant

real wages in the traditional sector is not valid.

3.8 The International Dependence Model

The International Dependence models gained increasing support especially among

intellectuals of the developing countries in the 1970s. This followed the growing
disenchantment with the stages and structural change models. The model believes that
developing countries are plagued by institutional political and economic bottlenecks at both

41 | P a g e
domestic and international levels so much so that they depend on, and are dominated by rich
countries. The international dependence model has three schools of thoughts. These include
neocolonial dependence model; the false paradigm model.

3.8.1 Neocolonial dependence Model

Neocolonial dependence model is an indirect off shoot of the Marxist thinking in it, the
existence and continuance of underdevelopment are attributable to the historical evolution of
the unequal relationship between the international capitalist system or rich countries and the
poor countries. The neocolonial view of underdevelopment is that the developing world’s
continuing and worsening poverty are due largely to the existence and policies of the
industrial capitalist countries of the northern hemisphere and their extension of small, but
powerful elite in the developing countries. The model therefore suggests a revolutionary
struggle or at least major restructuring of the world's capitalist system so as to free the
dependent developing nations from the direct and indirect economic control of their
developed world and domestic oppressors.

3.8.2 The false parading model

The false parading model attributes under development to faulty and inappropriate advice
provided by well-meaning but often uninformed and biased international “expert” advisers
from developed countries and multinational donor organization. The stock in trade of these
experts is to offer sophisticated concepts, elegant theoretical structures and complex
econometric models of development the often lead to in-appropriate or incorrect policies. In
addition, leading university intellectuals trade unionists, high level government economists
and other civil servants all get their training in developed country, institutions where they are
servedan unhealthy dose of alien concepts and elegant but inapplicable theoretical models.
The result is that desirable institution and structural in focus are neglected or at least paid
scant attention.

42 | P a g e
3.8.3 The Dualistic -Development Thesis.

This thesis is about the notionof a world of dual societies of rich nations and poor nations.
The concept of dualism embraces the following four key arguments:

i. Different sets of conditions -superior and inferior can coexist in a given space. An
example is the Lewis's notion of the coexistence of modern and traditional methods of
production in urban and rural sectors;

ii. The coexistence is chronic. In other words, the international coexistence of wealth and
poverty is simply not a historical phenomenon that can be rectified in time;

iii. The degrees of superiority or inferiority not only fail to show any signs of diminishing
but even have an inherent tendency to increase; and

iv. The interrelations between the superior and inferior elements are such that the
existence of the superior elements does little or nothing to pull up the inferior
elements rather may actually serve to push it down (i.e. to develop its under
development).

3.9The Neoclassical Counter Revolution-Market Fundamentalism

The neoclassical counterrevolution in economic theory and policy in the 1980's was brought
about by the political ascendancy of conservative governments in the United States, Canada,
Britain and West Germany. The central argument is that underdevelopment results from poor
resource allocation due to inappropriate pricing policies and state intervention by overly
active developing nations. It is their contention that what is needed is promoting free markets
and laissez- fair economics within the context of permissive governments that allow the
“magic of the marketplace” and the invisible hand of markets prices to guide resource
allocation and stimulate economic development.

43 | P a g e
The neoclassical challenge to the prevailing development orthodoxy can be divided into three
approaches:

(i) The free market approach

(ii) Public choice theory

(iii) Market friendly approach.

The free market analysis argues that markets alone are efficient, i.e, product markets provide
the best signals for investment in new activities. Free market development economists have
tended to assume that developing world markets are efficient and that whatever imperfections
exist are of little consequence.

The public choice theory goes beyond the above argument to state that governments can do
nothing right because public choice theory assumes that politicians, bureaucrats, citizens and
state, act solely for self interest using their power and authority of government for their own
selfish interest. The net result is not only a misallocation of resources, but also a general
reduction in individual freedoms. The conclusion is that minimal government is the best
government. The market friendly approach is the most recent variant on the neoclassical
counterrevolution. This approach recognizes that there are many imperfections in LDC
product and factor market. They contended that governments do have a key role to play in
facilitating the operations of the market through “non-selective” intervention

3.10 ACTIVITIES

Taking Zambia as your case study, describe theories that explain Zambia’s development
process.
3.11 SUMMARY

44 | P a g e
 This unit looks at the four classic theories of development. These theories
offer explanations to the historical developments in the economics of the
developing countries. The linear stage growth as the first classic theory
identified the five stages of growth of societies in their quest for economic development. The
second classic theory discusses the structural change model whereby societies transit
economically from the traditional sector to a capitalist sector.

Following the growing disenchantment with these earlier two classic growth theories, the
intellectuals of the 1970’s focused in the international dependence model. Their thesis was
that the existence and continuance of underdevelopment was due largely to unequal
relationship between international capitalist system (rich countries) and the poor countries. In
the fourth and last classical theory, we looked at the neoclassical counterrevolution -market
fundamentalism. The advocates of this model contended that promoting free markets and
laissez-faire economics will enable the invisible hand of market prices guide resource
allocation and stimulate economic development.

Having looked at the historical trend, via classic theories of development we are not set to
explore the different dimensions of development economics. In the next study unit, you will
be taken through poverty, income inequality and development.

45 | P a g e
UNIT FOUR: POVERTY, INCOME INEQUALITY AND ECONOMIC
DEVELOPMENT
4.1 INTRODUCTION
This unit will attempt to show the linkage between poverty, income inequality and
economic development. The debate on the relationship between poverty, inequality
and economic growth is characterized by confusion and strong, polarized positions. Some
consider economic growth to be the key for the reduction of poverty, while others argue that
it tends to lead to marginalization and greater inequality and poverty. These positions reflect
two major historical stands in the discussion about the causes of poverty. First, the
‘developmentalist position’, which explains poverty in terms of lack of economic
advancement, normally equated with insufficient economic growth. Second, ‘class-based’
(and Marxist inspired) theories, which view poverty as a result of uneven development and
exploitation, resulting in skewed asset and income distribution. According to the first view,
the income poverty problem is solved by making the ‘cake’ (total income or Gross Domestic
Product – GDP) bigger, while the second argues the problem should be addressed by giving
the poor a bigger share of the cake.

4.2 AIM
The aim of this unit is to introduce you to the relationship among the concepts of
poverty, income inequality and development.

4.3 OBJECTIVES

At the end of this unit you should be able to do the following:

 explain the nature of poverty and the vicious circle of poverty;

 describe the Lorenz curves and Gini indices;

 explain income inequality and how it affects poverty and the quality of life; and

 measure inequality and explain the cost and benefits of income inequality

4.4 TIME REQUIRED

You are required to spend a minimum of 21 hours per week on this unit.

46 | P a g e
4.5 REFLECTION

Do you think poverty can be eliminated? Justify your answer

4.6 THE NATURE OF POVERTY

4.6.1 Meaning of Poverty

Meaning of poverty simply put, is pronounced deprivation of well-being. At the core of all
development problems is the elimination of wide spread poverty and growing income
inequality. Although our main focus is on economic poverty and inequalities in the
distribution of incomes and assets, it is important to keep in mind that this is only a small part
of the broader inequality problem in the developing world. Of greater importance are
inequalities of power, prestige, status, gender job satisfaction, conditions of work, freedom of
choice and many other dimensions of the development problem (Todaro, 2010).

In the traditional setting, poverty was understood as material deprivations, as living with low
income and low consumption which manifests by way of poor nutrition and poor living
conditions. However, income poverty does not exist alone rather it is often times associated
with so-called human poverty -low health and education levels. It has been argued that this
phenomenon is the direct consequence or the cause of low income. In addition, income and
human poverty tend to be accompanied by some social deprivations which include
vulnerability to disease, voicelessness in key society's institutions, inability to improve one's
living condition. It is important to observe that poverty is a multidimensional phenomenon
that requires a more comprehensive policy aimed at its induction.

4.6.2 The Vicious Circle of Poverty

This is a term used to describe a self-reinforcing situation in which factors tend to perpetuate
poverty.To explain this undesirable phenomenon, let us use the following diagram.

Low income
↓

Low Productivity Low Consumption Low Saving

Low Investment

47 | P a g e
Fig 4.1 The vicious circle of poverty

From Fig. 4.1, it can be seen that low incomes in poor countries lead to low savings resulting
from most incomes being spent to meet current (often urgent) needs. Lower saving rates
account for a much smaller pool of savings available for desperately needed domestic
investment in both physical capital and human capital. But without new investment, an
economy's productivity cannot be increased and incomes cannot be raised. The low labour
productivity eventually leads to persistence of poverty. That closes the vicious circle of
poverty. The question that arises from this undesirable condition is due poor countries
doomed to remain Poor? This question can be readily answered by using the available data in
saving and investment in East Asia in the past two decades which suggest that the answer is
no.

4.7 Growth and Poverty

The issue under consideration here is the relationship between growth and poverty. The
relevant question to ask is -does there exist a conflict between reduction of poverty and the
acceleration of growth? Or are they complementary? Experts in the field of development
economics have argued that there are plausible reasons why policies focused toward reducing
poverty levels need not lead to a slower rate of growth. Although traditionally, a body of
opinion held that rapid growth is bad for the poor because they would be bypassed and
marginalized by the structural changes of modem growth. There has also been considerable
concern in policy circles that the public expenditures required for the reduction of poverty,
would entail a reduction in the rate of growth. However, the review of country experience
suggests that with appropriate policies, the poor can participate in growth.

4.8 Income Inequality

Income inequality is a term used to refer to the existence of disproportionate distribution of

total national income among households. In it the share going to rich persons in a country is
far greater than that going to poorer persons. This situation is common to most less developed

48 | P a g e
countries (LDCs). This is due largely to differences in the amount of income derived from
ownership of property and to a leaser extent the result of differences in earned income.

4.8.1 Growth and Inequality

To study the relationship between inequality and economic growth, the percentage growth
rates of incomes and gross material product of 13 developing countries were considered.
Long run data covering the periods of the 1960's and the mid -1990's were used. During those
periods per capita growth in East Asia averaged 5.5% while that of Africa declined by 0.2%
yet both Gini coefficient. {an aggregate numerical measure of income inequality ranging
from 0(perfect equality) to 1 (perfect inequality)} remained unchanged. The overall data
suggest that it is the character of economic growth that determines the degree to which it
attains growth, as or is not reflected in improved living standards for the very poor. It is not
the mere fact of rapid growth alone that determines the nature of its distributional benefits.

4.8.2 Measuring Inequality and Poverty

To measure income inequality in a country and compare this phenomenon among countries
more accurately, economists use Lorenz curves and Gini indices. Lorenz curve shows the
actual quantitative relationship between the percentage of income recipients and the
percentage of the total income they did infact receive during a given period say a given year.
How is the curve constructed? First, economists rank all the individuals or households in a
country by their income level from the poorest to the richest. Then all these individuals or
households are divided into 5 groups i.e. 20 percent in each (or 10 groups, 10 persons in
each).

Next, the income in each group is calculated and expressed as a percentage of GDP. The
shares of GDP received by these groups (cumulatively) are plotted. e.g., the income share of
the poorest quintile is plotted against 20 percent of the population and so on until the
aggregate share of all five quintiles (which equals 100 percent) is plotted against 100 percent

49 | P a g e
of the population. After connecting all the points on the chart starting with O percent share of
income received by O percent of the population, we get the Lorenz curve for the country. The
more the Lorenz line curves away from the diagonal (perfect equality) the greater the degree
of inequality.

A Gini index is even more convenient than a Lorenz curve when the task is to compare
income inequality among many countries. The index is calculated as the area between a
Lorenz curve and the line of absolute equality expressed as percentage of the triangle under
the line as shown in fig 3.2 above ie the ratio of the shaded area to the total area of the triangle
BCD. Gini coefficients are aggregate inequality measures and can vary anywhere from 0
(perfect equality to l(perfect inequality) Gini coefficient for countries with highly unequal
income distributions typically lies between 0.50 and 0.70 while for countries with relatively
equitable distribution, it is in the order of 0.20 to 0.35.

Measures of income poverty vary in different countries. Speaking in general terms, the richer
a country is the higher in its national poverty line. To allow for international comparisons the
World Bank has established an international poverty line of $1 a day per person in 1985
purchasing power parity (PPP) prices. This is equivalent to $1.08 a day per person in 1993
prices. For middle income countries on international poverty line of $2 a day, ie $2.15 in 1993
PPP prices is closer to a practical minimum. Of the 6 billion people living on earth as the end
of the 20th century, almost half-about 2.8 billion -lived or less than $2 a day and about one
fifth (1.2billion) lived on less than $1.

4.9 Cost and Benefits of Income Inequality

Economists have often argued that mitigating the effects of inequality by increasing the
burden of government tends to discourage investment, slows economic growth and
undermines a country's international competitiveness. One the other hand, excessive
inequality adversely affects people’s quality of life leading to a higher incidence of poverty, A
impeding progress in health and education and contributing to crime. In addition high
inequality does the following:
i. reduces the pool of people with access to the resources;
ii. threatens a country’s stability;

50 | P a g e
 iii. may discourage certain basic norms of behaviour of the economic agents such as trust
and commitment; and
iv. limits the use of important market instruments such as prices and fines.

However experts globally recommend decreasing income inequality in developing countries

to help accelerate economic and human development.

4.10Policy Options

Developing country governments have identifiable four broad areas of possible policy
intervention. These include:

i. altering the functional distribution in the returns to labour, land and capital as
determined by factor prices utilization levels, and the consequent shares of national
income that accrue to the owners of each factor;

ii. mitigating the size distribution;

iii. reducing the size distribution of the upper levels through progressive taxation of
personal income and wealth; and

iv. increasing the size distribution of the lower levels through public expenditures of tax
revenues to raise the incomes of the poor either directly or indirectly.

4.11ACTIVITIES
You are required to read annual Human Development Reports and identifythe key
indicators of development and well-being. As Zambia being making progress on
the HDI

4.12 SUMMARY

51 | P a g e
 We commenced the discussion on this third unit by looking at the nature of
poverty as well as the vicious circle of poverty. In it we saw poverty as a
multidimensional manifest by way of disease, economic crises, voicelessness
in most society's institution and inability to improve ones living circumstances. We then
looked at the relationship between poverty and growth. We also focused on inequality and the
extent of relative inequality in developing countries and how it is related to the extent of
absolute poverty. Data from 13 developing countries in respect of the growth of their GNPs
suggest that it is the character of economic growth that determines the extent to which that
growth is or is not reflected in improved living standard. We also looked at the measurement
of inequality by using the internationally acclaimed Lorenz curve and Gini coefficient. We
further discussed the cost and benefits of income inequality. The discussion on poverty,
income inequality and development came to a close with an analysis on viable policy option
available to developing countries towards mitigating poverty and income inequality, such
policy option include evolving strategies that will put in place appropriate agricultural
development policies for attacking poverty through helping the poor develop their micro-
enterprises on which a large fraction of the non-agricultural poor depend for their survival.

All in all, Economic growth remains the key vehicle for the reduction of income poverty in
poor countries. Most of the world’s poor live in South Asia and Sub-Saharan Africa. These
countries are characterized by generalized poverty, where the cake is simply too small to
make redistribution – even if it was politically feasible – have any major impact on the
poverty rates. However, the income (and asset) distribution aspect is of great importance for
the magnitude of the poverty reducing effect of economic growth. Thus in regions with high
degrees of inequality, like Latin America and the Middle East, the poverty reducing effect of
economic growth is much smaller and may, in a few cases, be negligible. The bad news is
that inequality in a historical perspective has been hard to reduce, with much larger variation
between countries than over time within individual countries. Again, the exception to this are
some of the Southeast Asian “tigers” (Taiwan, South Korea) that combined early land
reforms with sustained labour-intensive growth, thus significantly reducing initial inequality
levels without an intermediate “Kuznets type” rise. The good news is that policymakers, by
promoting pro-poor types of growth, can still combine growth with a more equal income
distribution. In this task, education, rural focus and labour intensive technologies are key
issues.

52 | P a g e
The next chapter focuses on population growth and economic development.

53 | P a g e
UNIT 5: POPULATION GROWTH AND ECONOMIC DEVELOPMENT
5.1 INTRODUCTION

<In the last unit, which is on poverty, income inequality and development we
looked into the issues of independent poverty and growing income inequality which
are at the core of all development problems. We had as our main focus, economic poverty and
inequalities in the distribution of incomes and assets noting that a package of complementary
and supportive policies should pursued by developing countries aimed at mitigating the
problems of poverty and inequality in development.

In this unit, we shall be looking at the issue of population growth and economic development:
the causes, consequences and controversies. Our main focus will be on the rapid population
growth which is more pronounced in developing countries and its serious consequences for
the well-being of all of humanity. We shall also be looking at the relationship between
development and population growth. Finally, we shall discuss the issue of what developing
countries can do and how developed countries can assist developing countries with their
population problems.

Population growth has a substantial impact on economic development. There are two schools
of thought regarding this issue. Some researchers maintain that population has a negative
impact on economic development while others are convinced that the effect is positive.

5.2 AIM

The aim of this unit is explore the linkages between population growth and
economic growth.

5.3 OBJECTIVES

At the end of this unit you should be able to do the following:

 explain why the world population is growing faster than ever before;

 describe the structure of world population;

54 | P a g e
  explain the causes and consequences of high fertility in developing countries; and

 analyse the concept of demographic transition.

5.4 TIME REQUIRED

You are required to spend a minimum of 21 hours per week on this unit.

5.5 REFLECTION

What is better for Zambia’s economic growth – a higher population

growth rate or a lower population growth rate.

Explain the reasons why world population is growing faster than ever
before.

5.6 THE HISTORY OF WORLD POPULATION GROWTH

In the past 50 years, the world has experienced an unprecedented increase in population.
Population growth rate today is primarily the result of a rapid transaction from a long
historical era characterized by high birth rates and death rates to one in which death rates
have fallen sharply but birthrates especially in developing countries are only just beginning to
fall from their historically high levels. A natural population increase occurs when birth rate is
higher than the death rate. However, a country population growth rate depends on the natural
Increase and on migration, global population growth is determined exclusively by natural
increase.

Around the world, death rates gradually decreased in the late 19th and the 20th countries with
death rates in developing countries falling rapidly after World War II due largely to spread of
modern medicine. Since the 1960’s birth rates have also been declining rapidly in most
developing countries except those in sub-Saharan Africa and the Middle East. Today’s low
income countries still have the world’s highest birth rates.

5.7 Structure of World's Population

55 | P a g e
The world's population is very unevenly distributed in the areas of geographic, region,
fertility and mortality levels, and structures.

In terms of geographic region, more than three – quarters of the world’s people live in
developing countries compared to person In four lives in an economically developed nation.
Given current population growth rates in different parts of the world, which is significantly
higher in the LDCS, the regional distribution of the world’s population will inevitably change
by 2050. By that time, it is likely that there will be almost 6.5 billion more people on the earth
than in 1950 and about 3 billion morethan in 2000. In fertility and mortality trends, natural
increase simply measures the excess of births over deaths or in more technical terms, the
difference between fertility and mortality. The difference between developing and developed
nations in terms of rates of population growth can be explained simply the facts that birth
rates (fertility) in developing countries are generally much higher than in the rich nations.
LDC death rates (mortality) are also higher. The major source of difference in population
growth rates between the less developed and the more developed countries is the sizeable
difference in their birth rates (Todaro, 2010).

In the area of age structure and dependency burdens, world population today is very youthful
particularly in the developing world. Children under the age of 15, constitute almost 40% of
the total population of developing countries, but less than 20% of the population of developed
nations. For example 46% of Nigeria's population and 48% of Ethiopia's was under 15 in
1997. The economic implication of this phenomenon is that in countries with such an age
structure, the youth dependency ratio - the proportion of youths (under age 15) to
economically active adults (ages 15 to 64) is very high. Thus, the workforce in developing
countries must support almost twice as many children as it does in wealthier countries.

5.6 Population Growth and Quality of Life

Latest empirical research has shown that there exist some potential negative consequences of
population growth on poverty and inequality. The negative consequences of rapid population
growth fall most heavily on the poor because they are the ones who are made landless, suffer
first from cuts in government health and education programmes. They are the main victims of
job cuts due to slower growth of the economy. Poor women once again bear the greatest
burden of government austerity programs; large families perpetuate poverty and also
exacerbate inequality. Further, large family size and low incomes restrict the opportunities of
parents to educate all their children. High fertility harms the health of mothers and children.
Feeding the world's population is made more difficult by rapid population growth.

56 | P a g e
5.7 ACTIVITIES

To what extent does rapid population increase make it more difficult to provide essential
social services, including housing, transport, sanitation and security?

Why do fertility and population growth rates vary from one country to another?

5.8 SUMMARY

In this unit, we looked at population growth and economic development. Our

major focus was on the causes and consequences of the rapidly growing
population of developing countries on economic growth. This is moreso that
rapid population growth can have serious consequences for the well-being of
all of humanity. Areas covered in respect of this phenomenon include the
history and structure of world population; the effect of population growth on
quality of life, the concept of demographic transition. We wrapped up the unit
by looking at the consequences of high fertility in developing countries and
policy options available to developing countries towards receiving high
fertility rate. In the next unit, we shall look at education as part of human
capital in economic development.

The next two units, 6 & 7 looks at social issues relating to human capital –
education and health. Unit 6 focuses on education and economic development.

57 | P a g e
58 | P a g e
UNIT 6: HUMAN CAPITAL: EDUCATION AND DEVELOPMENT

6.1 INTRODUCTION

In the last unit we discussed the issues of population growth and its effect on
economic development with particular reference to developing countries. We
looked at the consequences of a rapidly growing population for the well-being of all of
humanity. We concluded that the developed countries need to play vital roles in providing
expanded development assistance aimed at greatly reducing the incidence of poverty which
remains the biggest cause of fertility.

In this unit, we shall be looking at education as a vital component of human capital in

economic development. Our main focus shall be on education as a basic objective of
development. We shall also examine, the role of education in economic development,
especially that recent decades have witnessed on historically unprecedented extension of
literacy and other basic education to a majority of people in the developing world. Arguments
have been advanced that most human capital is built up through education or training that
increases a persons economic productivity and thus “arming a higher income. Education
therefore can be seen as a vital component of growth and development.

6.2 AIM

The aim of this unit is to describe the relationship between education and
economic growth and development.

6.3 OBJECTIVES

At the end of this unit you should be able to do the following:

 explain the role of education in economic development;

 analyse the best ways to build a country's human capital;

59 | P a g e
  explain the main obstacles to universal primary education in low income countries;

 explain how a country's economic position affects it education need; and

 describe the educational gender gap in all developing countries.

6.4 TIME REQUIRED

You should spend a minimum of 20 hours on this unit. This time should be
spent on reading contents of this unit, prescribed readings as well as answering
revision question

6.5 REFLECTION

Do educated people without jobs contribute to economic development?

6.6 HUMAN CAPITAL: EDUCATION AND ECONOMIC DEVELOPMENT

6.6.1 The Central Role of Education

The role of education in economic development cannot be overemphasized. Most

governments are playing an increasingly active role in providing education. Differences in
public spending on education across countries reflect differences in government efforts to
increase the national stocks of human capital. Governments of developing countries devote a
larger share of their GDP to education today than they did in 1950 but this share is still
smaller than that of the developed countries; 3.3 parent of GDP in low – income countries
and 4.8 percent in middle income countries compared with 5.4 percent in high income
countries. This gap is an important manifestation of the vicious circle of poverty described in
unit 3. It is important to note that education is essential for a satisfying and rewarding life. It
is fundamental to the broader notion of expanded human capabilities that lie at the heart of
the meaning of development. At the same time, education plays a key role in the ability of a
developing country to absorb modem technology and to develop the capacity for self-
sustaining growth and development.

60 | P a g e
6.6.2 Investing in Education the Human Capital Approach

Human capital is the term economists often use for education, health and other human
capacities that can raise productivity when increased. Most human capital is built up though
education or training that increases a person economic productivity i.e enables him to
produce more valuable goods and services and thus earn higher incomes. Governments,
workers, and employers invest in human capital by devoting money and time to education
and training.

Like any other investment this investment in human capital requires sacrifices. People agree
to make these sacrifices if they expect to be rewarded with additional income in the future.
Governments spend public funds on education because they believe that a better educated
population will contribute to faster and more sustainable development. Educated and skilled
people are usually able to deliver more output that is more valuable in the market place and
their employers tend to recognize that fact with higher wages.

The impact of human capital investment in developing countries can be quite substantial. The
national stock of human capital and its rate of increase are critical to a country's level and rate
of economic development. This is because these are important determinants of a country’s
ability to produce and adopt technological innovations.

Nevertheless, investing in human capital, although extremely important, is not sufficient for
rapid economics growth. Such investment must be accompanied by the right development
strategy. It is important to note that economic returns to education are not always the same.
However, returns to education may be lower if:

i. the quality of education is low or knowledge and skills acquired at school do not
match market demand; and
ii. there is insufficient demand for human capital because of slow economic growth
iii. workers with lower and higher education and skills are deliberately paid similar
wages to preserve a relative equality in earnings -as used to happen in centrally
planned economy.

6.6.3 The Gender Gap: Women and Education

In almost every developing country, young females receive considerably less education than
young males. In 66 out of 108 countries, women’s enrollment in primary and secondary

61 | P a g e
education is lower than that of men by at least 10 percentage points. The educational gender
gap is the greatest in the poorest countries. For all developing countries taken together, the
female literacy rate was 29% lower than male literacy. The relevant to be higher for primary
education than for other levels of study, most government are committed to providing free
access to primary school to all children. We note that primary school enrollments are
generally lower for girls than for boys. This gender gap is widest in South Asia, sub-Saharan
Africa and the Middle East. However, Latin America and the Caribbean have already
managed to do away with the gender gap in primary and even secondary education.
Narrowing the gender gap requires supportive national policies, such as reducing the direct
and indirect costs of girls; schooling for their parents and building more schools for girls in
education systems that are segregated by sex.

6.6.4 Educational Systems and Development

Harbison F.H in his 1971 book -Human Resources as the Wealth of Nations argued that
human beings are the centre of developmental process. They organize, plan and produce the
capital equipment. According to him “clearly, a country which is unable to develop the skills
and knowledge of its people and to utilize them effectively in the national economy will be
unable to develop anything else.”We can also be argue that the principal institutional
mechanism for developing human skills and knowledge is the formal educational systems.

6.6.5 Primary Education and Literacy

Attending primary school enables children acquire basic literacy and numeracy as well as the
knowledge and skill needed for their future education. In low income countries, primary
education in itself often improves the welfare of the poor by making them more productive
workers. Despite rapid growth in the number of children of primary school age, since 1970,
developing countries have succeeded in considerably increasing the percentage of children
enrolled in primary school. However, the universal primary education, a goal pursued by
most governments of developing countries is still far from being achieved in many of them.

6.6.6 Issues in Secondary and Tertiary Education

Enrolment in secondary schools is much lower than in primary schools in most developing
countries. On the average, less than 60 percent of children of secondary school age in low and
middle income countries are enrolled while in high-income countries, secondary education

62 | P a g e
has become almost universal. Child labour remains the most formidable obstacle to education
for children in low-income countries.

The gap between developed and developing countries is particularly wide in tertiary
education. We note that neither the number of students enrolled at a level of study nor the
amount of resources invested in education can indicate the quality of education and thus
provides only a rough idea of a country's educational achievement. However, vast
opportunities for improving the quality of education in the lagging developing countries are
offered by modem information and communication technology. Given the high cost of
limited availability of computers and internet connectivity in low- and middle income
countries their benefits can be maximized by installing computers first in schools, libraries
and community centres.

6.7 Policies for Education and Income Generation

In order to generate economic returns, education and training have to meet the ever-changing
demands of the labour market ie they have to equip graduates with the knowledge and skills
reached at each stage of a country's economic development. For example, countries moving
from planned to market economies usually need more people trained in economics and
business management to work in emerging private sectors as well as in reformed public
sectors. Investing in education is not only an important way to build a country's human
capital and move it closer to the knowledge economy, thus improving in prospects for
economic growth and higher living standard. For every individual, education also has a value
in its own right because education broadens people's horizons and helps them to live
healthier, more financially secure and more fulfilling question to ask here is why is female
education important? The answer is that there now exists ample empirical evidence that
educational discrimination against women hinders economic development in addition to
reinforcing social inequality. The point to note in this discussion is that closing the
educational gender gap by expanding educational opportunities for women in economically
desirable for the following reasons at the rate of return on women's education is higher than
that in men's in most developing countries (ii) increasing women's education not only
increases their productivity on the farm and in the factory but also results in greater labour
participation (iii) improved child health and nutrition and more educated mothers bad to
multiplier effects on the quality of a nation’s human resources for many generations to come.
(iv) because women carry a disproportionate burden of poverty and landlessness that

63 | P a g e
permeates developing societies, any significant improvements in their role and status in
education can have an important impact on breaking the vicious cycle of poverty and
inadequate schooling.

6.7 ACTIVITIES
Discuss the role of education in human capital development.

6.8 SUMMARY

In this unit, you have been taken through topical areas such as investment in
education towards human capital development, the gender gap in the area of
human and education, educational system and economic development, and
castly the policies needed for trooping up education and income generation in any economy.

64 | P a g e
UNIT SEVEN: HUMAN CAPITAL: HEALTH IN ECONOMIC DEVELOPMENT

7.1 INTRODUCTION

In this unit, we shall be looking at the role health plays in a country’s economic
development. Health is fundamental to the broader notion of expanded human
capabilities that are the heart of the meaning of development. It can be seen as a vital
component of growth and development in that, it constitutes an input into the aggregate
production function. The role as both input and output gives education its central importance
in economic development.

7.2 AIM

The aim of this unit is to describe the role that health as a component of human
capital plays in economic development

7.3 OBJECTIVES

At the end of this unit you should be able to do the following:

 explain the central role health plays in economic development

 analyse the factors that account for most of the health improvements in the 20th
Century.

 explain how major health risks are changing for different groups of countries

 explain how developing countries are tackling the spread of HIV pandemic

 explain the life style challenges confronting the developing countries.

65 | P a g e
7.4 TIME REQUIRED

You are required to spend a minimum of 21 hours per week on this unit.

7.5 REFLECTION
Does economic development contribute to good health or is it health that
contributes to economic development? Which one comes first?

7.6 The Central Role of Health: Global Trends

Health like education is a basic objective of development. It is an important end in itself

being central to well-being and essential for a satisfying and rewarding life. It is important to
appreciate the improvements in world health over the past half -century. There are two
statistical indicators utilized in monitoring the health of a country's population. They include
life expectancy at birth and the under -5 mortality rate. These indications are also cited
among broader measures of a population's quality of life. This is so because they indirectly
reflect many aspects of people's welfare including their levels of income and nutrition, the
quality of their cnviroilll1ent, and that access to health care, sate water and sanitation. Life
expectancy at birth indicates the number of years a newborn baby would live if health
conditions prevailing at the time of its birth were to stay the same throughout its life. This
indicator does not predict how long a baby will actually live both rather reflects the overall
health conditions characteristic of this particular year. The under -5 mortality rate indicates
the number of new born babies who are likely to die before watching age 5 per 1,000 live
births. Due to the act that infants and children are more vulnerable to malnutrition and poor
hygienic living conditions they account for the largest portion of deaths in most developing
countries. The second half of the 20th century witnessed a global improvement in health
conditions more than in all previous human history.

Average life expectancy at birth in low -and middle -income countries increased from 40
years in 1950 to 65 years in 1998 over the same period, the average under -5 mortality rate

66 | P a g e
for this group of countries fell from 280 to 79 per 1,000. However, these achievements are
still considerably below those in high income countries where average life expectancy at birth
is 78 years and the average under -5 mortality rate is 6 per 1,000. However, governments of
developing countries are investing in improving public health measures (safe drinking water,
sanitation, mass immunization), training medical personnel and building clinics and hospitals.

7.6 Health System and Development

As we noted earlier in our discussion, the health of a country's population is measured by the
under -5 mortality rate and life expectancy. The latter measure has the advantage that it is
available for most countries, at least as an estimate, though it can be very misleading. The
extension of life expectancy can provide extended years of vitality while providing only
additional years of extremely poor health and suffering in another. The infant survival rate is
a better measure, but clearly omits consideration of the general health status of the population
beyond only childhood. The World Health Organization (WHO) defines health as “a state of
complete physical mental and social well-being and not merely the absence of disease and
infirmity” Using a “disability – adjusted life year (DALYs) measure, a World Development
report Study in 1993 calculated that about one-quarter of the global burden of disease was
represented by diarrhea, childhood diseases including measlesrespiratory infections, parasitic
worm infections and malaria, all major health problems of developing countries.

7.7 The Burden of Infectious Diseases

It has been estimated that developing countries face a much more crippling disease burden
than developed countries especially regarding infectious diseases. About half of all infectious
disease mortality in developing countries -more than 5 million deaths a year -can be
attributed to three diseases: HIV/AIDS, Tuberculosis (TB) and malaria. None of these three
diseases has an effective vaccine, but there are proven and cost-effective ways to prevent
these diseases.Prevention, however, is complicated by the fact that infections occur primarily
in the poorest countries and among the poorest people.

67 | P a g e
7.8 Health System Policy
The World Health Organisation defines a health system as “all activities whose primary
purpose is to promote, restore or maintain health. Health system includes the components of
public health departments, hospitals, and clinics and offices of doctors and paramedics.
Outside this formal system is an informal network utilized by many poorer citizens, which
includes traditional healers, who may practice with the use of somewhat effective herbal
remedies or other methods that provide some medical benefits, such as acupuncture, but who
also may practice techniques for which there is no evidence of effectiveness. public health
measures have played a very important role in developing countries. Ministries of health,
sometimes complemented by the services of non-governmental organizations have played
vital roles in extending vaccines to rural areas. Basic health is also an effective means to
achieve goals of poverty reduction.

An effective government role in health systems is critical for the following reasons (i) health
is central to poverty alleviation, because people are often uninformed about health, a situation
compounded by poverty (ii) households spend too little on health because they may neglect
externalities. (iii) The market would invest too little in health infrastructure and research and
development. Government has different roles in different countries. As WHO “puts it, “the
health of people is always a national priority; government responsibility for it is continuous
and permanent”.

7.9 ACTIVITIES

1. What are the most pressing health challenges today?

2. What makes them so difficult to solve?

7.10 SUMMARY

The discussion in this unit centered on the role of health in a country's

economic development. We started out with the central role of health with
emphasis on global trends -that is how the low and middle income countries
fared in respect of the two yardsticks for measuring the health of a country's ,population -life
expectancy and under -5 mortality rate. Next, we looked at health and population age
structure -more specifically the social and economic challenges that result from different
population age structures.

68 | P a g e
We noted that developing countries have higher age dependency ratio than developed
countries. The burdens of infectious diseases were also discussed. In it the three major killer
diseases HIV/AIDS, Tuberculosis and malaria were treated. We noted sadly that none of
these three killer diseases has an effective vaccine. This phenomenon is further exacerbated
by the fact that infections occur primarily in the poorest countries and among the poorest
people thus perpetuating their poverty even further. The discussion in this unit came to an end
with health system, policy option available to government to address the health problems of
its citizens.

The role of health, as a form of human capital, in economic development was the issues of
discussion in this unit. In it, we noted that developing nations continue to face great
challenges as they seek to continue to improve the health of their citizens as the most
important root cause of poor health in developing countries is poverty itself.

69 | P a g e
UNIT EIGHT: GENDER AND DEVELOPMENT
8.1 INTRODUCTION
Gender equality is central to economic and human development. Removing gender
inequalities gives society a better chance to develop. A report given by the World Bank to the
Ministry of Trade and Industry in 2007 (see Ellis, Amanda et al pg xxi-xxiii) shows that
addressing gender inequalities and especially the link between gender and economic growth
can lead to: reducing poverty levels, elimination of inequalities hence increase opportunities
for both genders and more generally the attainment of the Gender equality is necessary for
meeting all of the MDG Goals (World Bank 2003b).

Gender mainstreaming continues to be a challenge even at the international level where 70%
of world’s poor are women and children, 1% of the world’s land is owned by women, 66% of
the world’s work is done by women for 33% of earned income, 80% of the world’s refugees
of Internally Displaced People are women and children and the majority of primary careers in
the home are women. These alarming statistics are evidence of acute gender inequality and
discrimination against women, a situation which cannot be ignored by any nation or
institution if the global goal for economic growth and poverty reduction is to be realized.

8.2 AIM
The aim of this unit is to analyse the role of gender issues in economic
development

8.3 OBJECTIVES

At the end of this unit you should be able to do the following

 Understand why gender perspective is important in development initiatives

 Recognize the variety of Development perspectives that address gender issues

70 | P a g e
8.4 TIME REQUIRED

You are expected to spend a minimum of 21 hours on this unit and reading
related materials.

8.5 REFLECTION

Is gender equal to women? Is there a difference between gender in

development and women in development?

8.6 GENDER AND DEVELOPMENT: PRINCIPLES AND PRACTICES AND

THEORIES

8.6.1 Definition of Gender

Gender is a social and cultural construction. It refers to ways in which a particular
societyconstructs or makes differences between men and women, masculinities and
femininities. According to Mosse (1993:2) “Gender is a set of roles which, like costumes or
masks in the theatre, communicate to other people that we are feminine or masculine.” These
masks include dress, attitudes, personalities, work both within and outside the house, family
commitments etc.

71 | P a g e
Thus, in the ideology of gender construction men are feminized when they assume a
subordinate status, including when they are abused sexually by other men e.g. when they are
shamed through rape. Gender construction takes place right from birth. Different
communities have different ways of welcoming a baby girl and a baby boy. Among the
Turkana people of the Northern Kenya for example, the cord of a baby boy is cut with a spear
and four goats are slaughtered for the woman to have a feast. When the woman goes out for
the first time four days after delivery, the spear is taken out first. It is used to kill a bull,
which both the husband and the wife eat to signify that the boy will help the father with the
care of the animals. In the case of a baby girl, a knife is used to cut the cord and only one
goat is slaughtered. There is no celebration Mosse (1993:1). This act of welcoming babies is
in itself a gender construction in which the babies are welcomed into their roles right from
birth.

Gender roles differ from one culture to another and also change over time. They are also
influenced by social class, age and ethnic background. Citing an example of the 19th century,
Mosse (2003:4) for example observes that it was considered unwomanly for a woman to
work for pay outside the home, but this only applied to women of middle and upper class.
Working class women were expected to work for those women as their servants. It was also
considered ‘unnatural’ for women to strive for higher education in the 19th century Britain
and even predicted that their reproductive organs would be destroyed in the process (Mosse
1993:6).

8.6.2 Core Gender Concepts

Gender concepts are key ideas and issues in gender and development and their implications
for policy making. In other words they are underlying principles on which a programme
vision and commitment can be built. Some of the core gender concepts are: (see Mayoux,
Linda, 2006. Organizational Gender Training for Aga Khan Foundations, January 2006).

i. Gender is a social construct-Biological differences are very few and are

unimportantin terms of determining gender equality.

ii. Gender inequalities can therefore be changed- Since gender inequalities are
sociallydetermined, they can therefore be changed.

72 | P a g e
 iii. Gender means both men and women-Discrimination against men and women
affectsboth men and women adversely. Addressing issues of gender discrimination
therefore calls both to be involved in challenging existing attitudes, privilege and
practice.

iv. But Gender also means prioritizing the interests of the currently most
disadvantaged sex i.e. women-In the current situation, gender affects women
moreadversely than men. This justifies prioritizing attention to those inequalities
which affect women whether this is inform of strategies targeting women or targeting
men to help men to change and promote gender equality.

Besides these concepts, however, there are also misconceptions about women’s
empowerment. One of the misconceptions is that many men and some women see women’s
empowerment as the reverse of the current gender inequality practices in which case then
women will be empowered to have power over men and to practice violence against them.
This is a misconception. As Mayoux (2006) rightly argues, “All Power Over is bad”. In this
case of the contrary, empowerment of women means “transforming all power relations
through giving both women and men the skills, resources and confidence to change gender
inequalities (power to and power within) so that together they have power with to work
together in the interests of themselves, each other and also children, elderly people and others
in their communities and wider society” (Mayoux 2006).

8.7 THEORIES OF GENDER AND DEVELOPMENT

8.7.1 Why is Development a gender issue (Modernization approach to development)

Since the Second World War, as the former colonies continued to gain independence and
joined the world’s economic system of planned economy, banking, and credit, “development
was seen as a process of industrialization and economic growth, encapsulated in what has
come to be termed ‘modernization’” (italics added Mosse 1993:10). The basic idea to
development in modernization approach was that development was conceived as a natural,
linear process devoid of traditional social and economic practices which were regarded as
hindrances to development in favour of western-style economy.

73 | P a g e
Newly emerging nations therefore patterned their development approach after capitalistic1
North, with an emphasis on industrialization, in order to alleviate poverty. The emphasis was
on building infrastructure and institutions- schools, hotels, airports and hospitals. The North
provided financial aid as well as the technical assistance up to a level where independent
countries would be able to sustain themselves economically. The principal actors in
development in the 1950s and 1960s were the Northern Governments, the World Bank and
the United Nations. They were then joined by smaller NGOs, such as Oxfam who financed
schools, wells, clinics, and agricultural projects (Mosse 1993:10).

Unfortunately, not all developing nations were receiving this support and hence a gap
developed between those receiving the aid and those that were not, in the 1970s. Mosse
(1993:10) also observes that modernization was planted in societies where there were already
existing hierarchies of social disparity. Since its emphasis was industrialization (economic
development), it did not tackle human development i.e. social inequalities. For example the
introduction of high-yielding varieties in ‘green revolution’ farming resulted in massive food
production but unfortunately land was controlled by a small group of landlords. The result
was that the benefits did not trickle to the majority who actually produced the food. An
example of a country that has successfully developed a modern capitalist industrial enclave
that benefits a minority urban elite while the majority rural live impoverished lives is India
(Mosse 1993:10).

The modernization theory works under various assumptions (Connelly et al). Economic
growth will benefit all members of society through trickle down effects and other “spread”
(indirect, multiplier) effects.

i. Access to cash and markets will improve conditions for people;

ii. Modern technology policies are gender neutral and benefit all of society; and
iii. Modern technology is superior to traditional technologies (nonmarket processes tend
to be ignored in the economic analysis).

A critical analysis of this development model shows that it is wanting because it lacks the
‘social’ dimension of development. People continue to be passive recipients of development
which they do not participate in planning. As Mosse (1993:11) puts it, they are seen “as

74 | P a g e
iv. Capitalism is “an economic system in which a country’s business and industry are
controlled and run for profit by private owners rather than by the government” (Oxford
Advanced Learner’s Dictionary. 7thedition). Thus, this model of development failed to
perceive people as men and women with individual needs, neglected the poor and added to
their poverty. How have women from various societies been affected by this approach to
development and how have they responded?

8.7.2 Voices of women from around the world.

Women activists, scholars, grassroots workers and journalists especially from Africa, India,
and Latin America have critiqued the modernization model of development, which transfers
resources out of their countries, destroys the environment, and creates disparities of class
within Southern countries as well as creating poverty and injustice.

African women for example have attributed the crisis on African peoples and countries not
somuch to natural disasters that aggravate drought but much more to “external domination
and misplaced priorities of existing development strategies resulting in internal
mismanagement” (Association of African Women for Research and Development-
AAWORD in Mosse 1993:12-13). This NGO continues to observe that the process of
colonization, neo-colonization and development strategies which depend on external finance,
technology and advise have resulted in economic and social crises in Africa. These crises
include “food crises, unemployment, massive displacement of populations, political and
religious fundamentalism and very damaging adjustment policies as a result of loan
conditionality clauses…”

The consequences of agricultural and food crises such as food, water and fuel affect women
directly because of their traditional role of nurturing the family. AAWORD (in Mosse
2003:13) attributes agricultural and food crisis to “both colonial and post-colonial export-
oriented agricultural policies which failed to address the issue of national and regional food
sufficiency. A concrete result of this policy is the total neglect of local methods of
productionand food crops that are mostly produced by women….”

The modernization approach to development has therefore impoverished Africans and

particularly women, making development a gender issues since it has a direct impact on
women’s lives. Economic change equals gender empowerment.

75 | P a g e
Other reasons why development is a gender issue as observed by Mosse (1993:29) is that the
idea that women are as crucial in the development process as men is relatively new. Funding

76 | P a g e
agencies have not always allowed women to set their own agenda but rather have been
consulted on an already set development agenda for men (e.g. a main men’s project can be
set and ten sewing machines donated for training women in embroidery to show that the
project is gender sensitive). Some funding agencies such as UNICEF, World Bank and NGOs
have however begun to consider women’s setting of their own agenda as an appropriate way
of facilitating development in the projects they fund.

According to Linda Mayoux (1997, 2004, 2005) “Targeting women became a major plank of
donor poverty alleviation and gender strategies in the 1990s. This was the result of a number
of factors:

i. Women's human rights: official commitments to gender equity and gender

mainstreaming on the part of most governments, donor agencies, NGOs and the
Microcredit Summit Campaign itself.
ii. Poverty reduction: increasing evidence that not only are women overrepresented
amongst the poorest people, but are also more likely than men to spend their incomes
on the welfare of children and dependents. Therefore poverty reduction programmes
which target women are likely to be more effective.
iii. Financial sustainability: increasing evidence in micro-finance of much higher
repayment and savings discipline among women than men.

Not only reaching, but also empowering women, is the second stated goal of the Microcredit
Summit Campaign. Literature prepared for the international and regional Micro-credit
Summits from 1997, many donor statements on credit and NGO funding proposals present an
extremely attractive vision of increasing numbers of expanding, financially self-sustainable
micro-finance programmes reaching large numbers of poor women borrowers.”

8.7.3 Gender Theories

When did you first learn that you are different from your brother/sister people of the
opposite sex? How did you learn or who told you?

77 | P a g e
How do people learn about gender from childhood? Three theories have been put across to
explain gender socialization. These are:

(i)
Psychoanalytic
(ii)
Social learning
(iii)
Cognitive developmental

Psychoanalytic Theory
The psychoanalytic theory was invented by Sigmund Freud.2 He argues that our knowledge
of gendered identity does not primarily consist of consciousness i.e. the thinking or rational
dimension of who we are (or rather what is knowable through language). Rather, we know
who we are through consciousness and also through unconscious or hidden aspects of identity
which influence our actions in life (i.e. a hidden wordless unconsciousness).

For Freud, our gendered identity is unconsciously constructed through what we make
imaginatively of bodily drives. It is unconsciously constructed in early childhood for example
through children’s observation of their genitals (e.g. castration anxiety, penis envy). For
Freud, a small boy has a supposed perception of a girl’s lack of a penis. He therefore
develops a fear of the terrifying idea that girls are different because they have been castrated
and so he may also fall victim of castration. This fear of castration persuades the boy to give
up his mother until a point at which he becomes an adult and finds a woman of his choice as
a substitute. Meanwhile, he identifies with the father who is both loved and feared. In his
psyche, his father exists “as the superego, as an internal representative of the external laws of
culture and moral authority” (Alsop et al 2002:43). The boy’s fear of castration may lead to
his fear of women or a desire to control them.

On the other hand, the girl as a child sees herself in a position of lacking of a penis as
compared to the boy “and angrily rejects the mother for failure to give her a penis which she
desires in someone else” (Alsop et al 2002:44). Freud refers to this as ‘penis envy’. It makes
the girl to cross over from her homosexual love for the mother to her heterosexual desire for
the father and eventually for other men.
For more details, see Alsop et al (2002:39-63)

78 | P a g e
Freud’s view has not found much empirical (experimental or pragmatic) support.
Furthermore, Freud’s view supposes that femininity is a position of loss and castration. A girl
is in an inferior position compared to the boy for lack of a penis. The mother is in an inferior
position as compared to the father whose possession of a penis positions him as the superego.
Thus Freud is critiqued by feminists for this form of gender construction which privileges the
male gender, thus creating inherent gender inequality. Feminists regard women’s position of
powerlessness and subordination as a result of social construction rather than a result of
unconscious phantasies centred on human anatomy.

Social learning theories

These are behavioralist theories that rely on reinforcement and modeling explanations of
behaviour i.e. the way in which the environment makes people do things.

The social role theory also known as sex role theory for example states that “men andwomen
become masculine and feminine through social conditioning, and we learn the gender role
that relates to our biological sex through our interaction with social structures such families,
school, the media and so on” (Alsop et al 2002:66). (1)This theory has been
foundinadequate because it does not account for the different forms of femininity and
masculinity, (2) it does not account for the changes that occur with time within lives of
men and women, (3)it does not explain the process that is involved in taking gender
roles on board, and (4)neither does it explain why resistance occurs through such
movements as feminism (see arguments by French materialistic writers, such as Delphy
andWittig in Alsop et al 2002:67-68.)

Materialist feminism
Materialistic feminism is a modern scholarship which shows that there is social
constructionist not only of gender but also of sex i.e. biological division into two sexes which
creates a social hierarchy is socially determined. Human anatomical differences devoid of
social differences do not create gendered social practices. Thus, “without social divisions the
biological differences would be of no significance.” Social structures are systems of power
and control which produce sets of social relations in which women are treated as inferior and
subordinates. Gender division of labour therefore exploits women and oppresses them.
These gender inequalities can be deconstructed since they are socially constructed. AsAlsop
et al (2002: 68) observes, “If women and men become women and men by their social

79 | P a g e
relationships, by changing these relations we can also modify gender identities and their
current inequalities.”
Cognitive Developmental Theories

According to these theorists “children learn gender (and gender stereotypes) through
their mental efforts to organize their mental world.

An example of the cognitive developmental theory is the social constructionist theory by

Bem and Coltrane.Bem has identified three lenses or hidden assumptions about gender:

i. Gender polarization- men and women are different and these differences account
forthe organization of the social life

ii. Androcentrism- The view that male are superior to female and that male
experienceis the normative standard

iii. Biological essentialism-The first two lenses result from the biological differences
between men and women.
Children learn gender from the way the society is organized in terms of gender; “children
learn culturally appropriate ways of thinking and being as they follow routing rituals and
respond to everyday demands of the world in which they live…(T)o be considered competent
members of the society, they must learn how to fit in as appropriately gendered individuals”
(Coltrane p.114). Thus, “gender socialization turns children into social natives.” They learn
gender without realizing that there are other realities (Internet source
www.public.iastate.edu/f2004.soc327/childhood(sep27).pdf

Louann Brizendine wrote in her 2006 book, The Female Brain, “A woman uses about 20,000
words per day while a man uses about 7000". This view was heavily critiqued in the science
journal, Nature for lack of scientific accuracy and balance. She admitted that it was not a
scientific finding but a view from other people and promised to remove it from her future
editions.

80 | P a g e
8.8 THEORETICAL FRAMEWORKS ON GENDER AND DEVELOPMENT

Gender development policies have been influenced by Feminist theoretical frameworks and
development frameworks. It is therefore important to trace the historical origins,
developments and aims of these feminist frameworks, how they differ or influence one
another and how they change. This section seeks to introduce and trace the evolution of WID,
WAD and GAD theoretical frameworks. It will also examine how existing frameworks are
being affected by debates and critiques of globalization, to create new ones.

(i) Definition of Theoretical Framework

According to Patricia Connelly et al, “A framework is a system of ideas or conceptual

structures that help us “see” the social world, understand it, explain it, and change it. A
framework guides our thinking, research, and action. It provides us with a systematic way of
examining social issues and providing recommendations for change… Each framework
provides a set of categories or concepts to be used in clarifying a problem or issue.”

Each of the feminist frameworks for example relies on a unique assumption about the
basisfor women’s subordination as we shall see. Each then raises unique questions and
providesunique concepts for examining women’s inequality; and each suggests quite unique
strategies for change. Frameworks do compete with each other, and some become dominant
over time while others become obsolete.

(ii) Events which heightened Women’s Issues

In the 1940s, 1950s and 1960s, within development policies and programmes, women were
only viewed as mothers and housewives. Their economic activities and contributions were
ignored and not valued. Development theorists and planners saw men as the agents and actors
of development. Men were seen to be the bread winners of their families and women were
invisible. Development assistance in form of financial aid for economic growth targeted men.

81 | P a g e
The welfare approach however targeted women. It nevertheless had a particular perception
that the most important role of women was motherhood and child rearing, and that women
were passive recepients of development. The interventions made therefore focused on
‘welfare’ including mother-child health programs, feeding schemes, family planning services,
food aid, etc (Mosse 1993:153). Such welfare development projects did not contribute to
women’s independence and self-reliance but encouraged dependency. Thus, by the 1970s, it
was becoming evident that the modernization approach was ineffective to eliminate poverty
from the South.

In 1970s, it was argued that if women’s traditional work was not recognized as part of the
national economy, then they needed to be integrated into development or at least be
integrated into the market economy, where they would engage themselves in producing
goods and services, thus enabling them to earn an income for themselves and also contribute
to the development process which would be measurable by GNP. Education, vocational and
technical training were regarded as essential in this process, (but it was soon to be found that
this approach was to benefit only a small number of women). Women were therefore to be
integrated into the existing system of development, which would enable them have equal
opportunities with men. However, as Mosse (1993:154) observes, not many people stopped
to ask whether the system into which they would be integrated was the right one. Thus, in
1975, the UN launched its International Women’s year, followed by the International Decade
for Women (1976-1985) under the theme of ‘equality’, ‘development’ and ‘peace’ as we
shall see further below.

Further events which heightened women’s issues were feminist movements. Feminist
movements in various parts of the world in both developing and developed countries
advocated for the elimination of all kinds of gender discrimination. Women in the North
lobbied for change in the legal and administrative structures to ensure that women would be
better integrated into economic systems.

The “Women In Development (WID) Approach

Women in development(WID) is an approach to development projects that emerged in
the1970s, from the first UN conference for women (1975-1985) and Boresup’s book. It was
coined by the women’s Committee for the Washington DC Chapter of the Society for
International Development. It is based on a recognition of the importance of the roles and

82 | P a g e
status of women in development process. It is meant to give special attention to the women's
role in extending development. It therefore calls for treatment of women's issues in
development projects and argues that they should have the opportunities to participate
positively as important players in development process. Such enlargement of opportunities
will also pave the way for the enhancement of women's status:
WID represents a merging of modernization and liberal-feminist theories.
i. Proponents of WID assume that development is to be measured by the adoption of
Western technologies, institutions, and values. These technologies would ease
women’s workloads.
ii. They argue that women are ignored and excluded from the development programmes.

iii. It focuses on strategies for ‘integration of women into development’

iv. In this approach, it is believed that development is not obtainable in the absence of
women’s integration into development.
v. Women were seen as underutilized resource for development and now they are found
and could be a valuable resource.
What kind of development are women to be integrated into?

Proponents of WID see that the results of development will be successful if only women are
fully integrated into the Development process. It was aimed at integrating women into the
existing development scheme in order to measure women’s lived experiences and
improvement of women’s access to education, training, property, and credit and for more and
better employment. However, Ester Boserup’s book, Women’s Role in Economic
Development addresses the consequences of economic development on women.

This approach contradicts the modern approach that the benefit from Development will
trickle down to women.

Solving Women’s Marginalization

The WID approach advocated for the implementation of ‘separate’ or ‘integrated’ projects for
women. The belief was that women had spare time available to undertake these projects.
Separate or women only projects were seen as the right solution to address women’s
marginalization

83 | P a g e
WID assumed that if women are provided access to resources such as skill training, credits,
small-scale income generating activities and home economics, then they will improve their
situation and women will become full economic partners with men. Measures for the
Effective Implementation of Official Development Assistance
(adopted From http://www.mofa.go.jp/policy/oda/category/wid/what.html)

84 | P a g e
 (i) Problems with WID

(ii) WID put more emphasis on what women could contribute to development (sometimes
making exaggerated claims) while the agenda of gender equality in development
became secondary

(iii) It over-emphasizes the productive side of women’s work and labour especially
income generation at the expense of reproductive side.

(iv) WID seems to categorize women as separate and homogeneous entities while in fact,
they are diverse groups (Class, ethnicity, history and culture are ignored).

(v) It did not question existing structures and their effects on gender equality. It did not
examine the root causes of women’s subordination and oppression.

(vi) This (anti-poverty) approach marginalized women further and treated them identically
with men.

iii) The Women and Development (WAD) Approach

Proponents of this approach are mainly activists and theorists from the South and few from
the North who saw the limitations of WID and argued that women would never get their
equal share of development benefits unless patriarchy and global inequality are addressed.

It offers a more critical view of women’s position than WID. Like WID WAD’s perspective
assumes that women’s position will improve if and when international structures become
more equitable. How these could change was not explained clearly.

WAD argues that dominant development approach lacks women’s perspective (viewpoints)
and the perspectives of developed countries.

They see that overcoming poverty and addressing the effects of colonialism are also as
important as promoting gender equality in the development process. Out of this grew the
Development Alternatives with Women for New Era Network (DAWN), based in the South,
and which aimed to make the view of developing countries known and influential.

85 | P a g e
According to this perspective women were not a neglected resource but overburdened and
undervalued. What is needed is a re-evaluation of women’s considerable contribution to the
development process and a redistribution of the benefits and burdens of development between
men and women.

iv) Gender and Development (GAD) Approach

(i) Emerged in the 1980s as an alternative to WID and WAD

(ii) Proposes more emphasis on gender relations rather than seeing women's issues in
isolation.
(iii)Argues that women are affected by the nature of patriarchal power in their societies
(iv) In contrast to WID, GAD regards cultural and social constructions of gender as the
basis of marginalization of women.
(v) The unequal gender power relations prevent women from accessing resources.
(vi) It emphasizes the need to challenge these existing gender roles and relations.
(vii) It is not advocating for WID’s “adding women” in to the development process,
but about rethinking development concepts and practice as a whole through a gender
lens.
(viii) Women’s inequality exists not because they are bypassed or marginalized by
development planners but because women are not part of the power structuring.
(ix) Gender relations impact on how development programs are planned and implemented
and inevitably leads to favouring one gender (men).
(x) Unequal gender relations deny women from accessing or obtaining credit, education,
technology and agricultural extension.
(xi) Unlike WID, GAD is critical of the economic growth model of development.
(xii) Values women’s reproductive roles (bearing and caring roles). Women’s
double day (paid and unpaid works). Benefit both capital and domestic spheres.
(xiii) Unlike WID, GAD views women as already integrated into development
process and are central to it as they provide unpaid family labour.
(xiv) GAD sees women belonging to diverse categories (age, class, marital status,
ethnicity, race, religion) rather than a homogenous ‘women’.
(xv) In the era of economic restructuring/ globalization, proponents of GAD have
provided critical gender analysis on the effects of SAPs policies on women.
(xvi) They criticized the effects of the international division of labour on social,
economic and political spheres in both developed and developing countries.

86 | P a g e
 (xvii) It is aimed at ensuring equal distribution of opportunities, resources, and
benefits to different population groups served by a particular intervention.
(xviii) Applying this approach can help project planners to identify important
differences in female and male roles and responsibilities and use this information to
plan more effective policies, programs, and projects.
(xix) Although GAD goes further than WID in challenging patriarchal structures, it
also assures men that GAD does not totally exclude their interests in the development
agenda despite the excessive focus on women, hence the use of a more inclusive term
‘gender.’

GAD approach is based on Harvard Analytical Framework, one of the first gender analysis
models. GAD uses this model to explore and analyse the differences between the kinds of
work performed by women and men in particular social, cultural and economic
circumstances. In order to identify differences between female and male roles,
responsibilities, opportunities and rewards, the approach requires that three important
questions are asked, explicitly and implicitly, at all stages of designing, planning,
implementing, monitoring and evaluating an intervention.

Three questions have to be considered here, which include– Who does what, with
whatresources? Who has access to the resources, benefits, and opportunities? Who controls
the resources, benefits, and opportunities?

Who does what: This question identifies the different activities performed by the men
andwomen in the target population. For example, a rural development project aimed at cash-
cropping might result in the female population assuming the major burden of the agricultural
work, because in that society women do most of the agricultural labour. Asking the question
“Who does what?” can alert project designers to the possibility that such a project could
increase the women’s work.

Who Has Access (Ability to Use)?

This question asks how much each population group can use existing resources, benefits, and
opportunities or those, which will be generated by the intervention. These include land,
money, credit, and education.

87 | P a g e
Who Controls (Determines the Outcome of the Resources)?
This question asks to what extent different groups of women and men in the population can
decide how to use the available resources. Some groups may have access to resources but
may not be able to use them.

If these three questions are not asked, the kinds of interventions, which are developed, may
be based on incomplete and incorrect assumptions and perceptions of the way things work in
a particular society. For example, planners may incorrectly assume that in a given setting the
men are heads of households and chief decision-makers, even though women play this role.
This assumption may lead them to design ineffective and inappropriate interventions.
Analysis of the information provided by these questions enables planners to find out how an
intervention would impact different groups. If needed, corrective measures can then be put in
place to ensure that the project will meet the needs of all identified groups equally.

The Empowerment Approach or Post-modernist Approach

The ways in which development is planned and implemented can either empower or
disempower people.

Empowerment approach can positively change the discourse and practice of development
Women/men need to be looked at as active agents of change, not passive recipients of the
development process.

The Importance of WID, WAD, GAD and Empowerment Approaches

i. They provide gender analysis on development policies of states international

development and financial institutions as IMF, WB, and the UN

ii. They criticize the measures of economic development such as GNP which ignore the
contribution of women to social and economic production

iii. They advocate for the creation of gender sensitive development programs.

88 | P a g e
Why Gender Analysis is Important

Gender analysis provides a transformational approach to problems faced by women as

opposed to the problem solving approach.

It can also make development planners and other decision makers to become aware of
women’s issues.

8.7 ACTIVITIES

Critically analyse the effectiveness of gender affirmative actions being applied in Zambia
in fostering economic growth and development.

8.8 SUMMARY

This unit focused on gender and development. Theories of gender and

development where discussed. The next unit will look at agriculture and rural
development.

89 | P a g e
UNIT 9: AGRICULTURAL TRANSFORMATION AND RURAL DEVELOPMENT

9.1 INTRODUCTION
In this unit, we shall be looking at the correlation between agricultural
transformation and rural development. In it we shall discuss extensively agricultural
progress and rural development bearing in mind the structure of agrarian system in the
developing countries. We shall also beam our searchlight on the role of women in agriculture.
We shall conclude the unit by looking critically at the strategy of agricultural and rural
development.

9.2 AIM

The aim of this unit is to describe the link between agricultural transformation and
economic development.

9.3 OBJECTIVES

At the end of this unit you should be able to do the following

 explain how total agricultural output and productivity per capital can be substantially
increased to benefit the average small former;

 analyse the process by which traditional low -productivity peasant farms are
transformed into high -productivity commercial enterprise;

 explain agricultural productivity can be raised to improve rural life; and

 explain institutional and structural changes in rural farming systems.

9.4 TIME REQUIRED

You are required to spend a minimum of 21 hours per week

90 | P a g e
9.5 REFLECTION
Zambia needs to diversify the economy and agriculture is considered as
one areas of this economic diversification. Do you think it is possible to do
have meaningful diversification through agriculture in Zambia.

9.6 Agricultural Progress and Rural Development

Recent statistics show that over 2.5 billion people in the developing world chum out a meager
and often inadequate living in agricultural pursuits. Furthermore, over 3 billion people lived in
rural areas in 2001. In Africa most countries are having rural dwellers in excess of three
quarters of the total population. Of greater importance is the fact that over two-thirds of the
worlds poorest people are also located in rural areas and engaged primarily in subsistence
agriculture. Traditionally, the role of agriculture in economic development has been viewed as
passive and supportive.

On the account of historical experience of western countries, economic development was seen
as requiring a rapid structural transformation of the economy from one predominantly focused
in agricultural activities to a more modem industrial and services society. The thinking was
that agricultures role was that of providing sufficient low-priced food and manpower to the
expanding industrial economy. The industrial economy was seen as the dynamic loading
sector. The Lewi’s two-sector model we discussed in unit 2, is an outstanding example that
places heavy emphasis on rapid industrial growth with an agricultural sector fueling the
industrial expansion via cheap food and surplus labour.

9.7 The Structure of Agrarian System in the Developing Countries

There exists two kinds of world agriculture - (i) the highly efficient agriculture of the
developed countries where substantial productive capacity and high output per worker which
permits a very number of farmers to feed the entire nation and (ii) the inefficient and low-
productivity agriculture of developing countries where in many instances, the agricultural
sector can barely sustain the form population let alone the burgeoning urban population even at
a minimum level of subsistence. The gap between the two kinds of agriculture is immense. In
Latin America and parts of the Asian subcontinent, there is a concentration of large areas of
land in the hands of a small class of powerful landowners.

91 | P a g e
In Africa, historical circumstances and the availability of relatively more unused land resulted
in a different structure of agricultural activity. In terms of level of farm productivity, there is
little to distinguish among the three regions. Both the Latin America and Asian peasant is a
rural cultivator whose prime concern is survival. Subsistence defines his concept of survival.
As in Asia and Latin America, subsistence farming on small plots of land is the way of life for
the vast majority of African people just as we have in Zambia.

However, the organization and structure of African agricultural systems differ markedly from
those found in contemporary Asia or Latin America which have agrarian structures. Even
though, the small African farmer once had more room in which to manouvre than his typical
Asian or Latin American counterpart, the rapid growth of rural populations throughout sub-
Saharan Africa has led to a similar fragmentation of smallholder agriculture? It is important to
note that unless lower productivity peasant agriculture can be transformed rapidly into higher
productivity farming in Asia and Latin America and Africa, the hundreds of millions of
impoverished and increasingly landless rural dwellers face an even more precarious existence
in the years immediately ahead.

9.8 The Important Role of Women in Agricultural Production

The crucial role played by women ill agricultural production is often overlooked, as a feature
of LDC agrarian system. In Africa, where subsistence farming is predominant, and shifting
cultivation remains important, newly all tasks associated with subsistence food production are
perfof1ned by women. In her pioneering work on women and development, Esther Boserup
examined many studies on African women's participation in agriculture and found that in
nearly all cases record, women did most of the agricultural work and were fund to do around
70% of the total work.

The truth of the matter is that women provide an important source of labour for cash crop,
cultivate food for household consumption, raise and market livestock, generate additional
income though cottage industries collect firewood and water, and perform household chores,
including the processing and cooking of foods. It has become evident that since women
produce a large share of agricultural output, successful agricultural reform will require raising
women's productivity.

92 | P a g e
9.9 Towards a Strategy of Agricultural and Rural Development

As a major objective of agricultural and rural development in developing countries, there

should be a progressive improvement in rural levels of living achieved primarily through
increases in small farm incomes, output and productivity.

To do this, certain basic conditions essential to its achievement identifiable. These include (i)
to chorological change and innovation (ii) appropriate government economic policies and (iii)
supportive social institutions. In respect of general rural advancement, the following conditions
are desirable

i. modernizing farm structures to meet rising food demands;

ii. creating an effective supporting system; and
iii. changing the rural environment to improve levels of living.

9.10 ACTIVITIES
What were the principal reasons for the relative stagnation of developing country
agriculture during the so-called development decades of the 1960s and 1990s?
Explain your answer.

9.11 SUMMARY

The topic of discussion in this unit is agricultural transformation and rural

development. We started out by looking at the imperative of agricultural
progress and rural development, we noted that although traditional African
communal systems differ markedly from agrarian structures prevalent throughout much of
Asia and Latin America, the contemporary economic status of the small farmer is not very
different among the three regions.

We went further to look at the agrarian system in developing countries noting that subsistence,
mixed and specialized commercial types coexist in almost all LDCs at any given time. The
important role of women in agricultural production was looked into, we saw that apart from
processing and cooking food women provide on important source of labour for cash crop
production as well as cultivate food for household consumption. Women also raise and market
livestock, generate additional income through cottage industries.

93 | P a g e
Finally, we discussed the strategy of agricultural and rural development which includes land
reforms, supportive polices to provide the necessary incentives and economic opportunities,
and integrated development objectives.

94 | P a g e
UNIT TEN: INDUSTRIALISATION STRATEGIES FOR ECONOMIC
DEVELOPMENT

10.1 INTRODUCTION

In this unit, we shall focus our attention on industrialization and post

industrialization as they affect developing countries. Also, we shall be discussing
the major structural shifts in various economics with special reference to developing
countries; the economic rationale for industrialization, knowledge revolution and finally the
implications of this phenomenon for development sustainability.

10.2 AIM

The main aim of this unit is to explore industrialization strategies for economic
development.

10.3 OBJECTIVES

At the end of this unit you should be able to do the following

 explain the concept of industrialization and post industrialization

 explain the reasons behind industrialization and post industrialization

 describe the stages of economic development

 explain the implications of the knowledge revolution for development sustainability.

10.4 TIME REQUIRED

You are required to spend a minimum of 21 hours per week.

95 | P a g e
10.5 REFLECTION

Do you think Zambia needs to industrialise to attain economic prosperity?

10.6 Major Structural Shifts

Agrarian economy changes the proportions and interrelations among its basic sectors -
agriculture, industry and services and between other sectors -rural and urban; public and
private, domestic and export - oriented. One way to look at the structure of an economy, is to
compare the shares of its three major sectors -agriculture, industry and services in the countries
total output and employment.

Initially, agriculture is a developing economics most important sector for example, in the
1960s, agriculture was the mainstay of Nigeria's economy. However as income per capital
rises, agriculture loses primacy giving way first to a rise in the industrial sector, then to a rise
in the service sector. These two consecutive shifts are called industrialization and post
industrialization. It is important to note that all growing economics are likely to go through
these stages which can be explained by structural changes in consumer demand and the
relative labour productivity of the three major economic sectors.

10.7 Economic Rationale /Industrialization and Post Industrialization

All growing economies pass through stages during which their structures change in the areas
of consumer demand and labour productivity. In terms of industrialization, what happens is
that as people's incomes increase, their demand for food which is the main product of
agriculture -meets its natural limit and they begin to demand relatively more industrial goods.
With the introduction of new farm techniques and machinery labours productivity in
agriculture increases faster than in industry thus making agricultural products relatively less
expensive and diminishing their share in gross domestic product (GDP). This increase in
labour productivity in turn diminishes the need for agricultural workers while employment
opportunities grow in the industries. This results in industries larger share of the GDP than
agriculture.

96 | P a g e
In post industrialization, as incomes continue to rise, consumers demand become less material
and more of services such as health, education, information, entertainment, tourism and many
other area. However, labour productivity in services does not grow as fast as it does in
agriculture and industry due largely to the fact that most jobs in the services sector cannot be
filled by machines. As a result, services become more expensive relative to agricultural and
industrial goods. Also lower mechanization explains the continuing in employment in the
services sector as against the decline in employment growth in industry and agriculture.

Eventually, the services sector replaces the industrial sector as the leading sector of the
economy. The major issue of relevance here is that while most high-income and middle-
income countries are today post industrializing, low-income countries are still industrializing
i.e becoming more reliant on industry. It is to be noted that even in countries still
industrializing, the service sector is growing relative to the economy taken as a whole. By the
end of the 1990s services made up almost two thirds of world GDP where as they had only
about half of worlds GDP in the early 1980s.

10.8 Knowledge Revolution

Knowledge and information related services such as education, research and development
(RED), modem communication (telephones and internet) and business services constitute the
fastest growing part of the service sector. This is the result of the so-called knowledge
revolution that commenced by the second half of the 20th century. This term is used to refer
to “a radical speeding up of scientific advances and their economic application in the form of
new technologies as well as new consume product.

Technological innovation rather than investment per se became the mall source of increased
productivity, the major tool of economic competitiveness in the world market and the most
important driver of economic growth. However, majority of developing countries face
considerable difficulties joining the global knowledge revolution. Their incapacity to tap the
internationally available flows of knowledge and adapt them for their specific needs is
consequent upon their relatively small member of scientists and engineers working in these
countries. It has been advocated that the international community should help developing
countries bridge the widest knowledge and information gaps by increasing official
development aid and private capital flows as well as by directly facilitating the transfer of
modem technology from developed countries.

97 | P a g e
7.9 Implications for Development Sustainability

Having surveyed the structural shifts in global growing economics leading to industrialization
and post industrialization as well as the knowledge revolution that goes with this
phenomenon, we shall now look at their implications for sustainable development. We know
that the sector produce, “intangible” goods such as health and education services, as well as
modem communication, information and business services. This form of production requires
less natural capital and more human capital.

The implication of this is that the demand for human capital is bound to increase hence the
growing demand for more educated workers thus prompting countries to invest more in
education. Also a growing service sector that uses less natural resources puts less pressure on
the local, regional and global environment. The consequence is that national and global
development becomes more environmentally and socially sustainable.

It is important to note that this fact does not diminish the need to need the material needs of
the fast growing population of developing countries through agricultural and industrial
growth. On a final note, it is important that if people's needs across the world are met, by
making greater use of knowledge in better educated workers, more productions more socially
and environmentally appropriate technology, rather than using more machines, equipment and
processes, the damage to the natural environment and the potential for social conflict can be
lessened.

10.9 ACTIVITIES

What are the economic reasons behind industrialization and post industrialization?

10.11 SUMMARY

In this unit, we discussed the issue of industrialization strategies for economic

development. All issues leading to industrialization and post industrialization
attracted our attention. The result is that we focused on the following -major
structural shifts which leads to industrialization and post industrialization; the knowledge
revolution which resulted from the growth of the service sector.

98 | P a g e
This phenomenon of knowledge revolution brought about more emphasis in human capital
development to keep pace with the fast growing service sector in the area of education and
information and communications technology (ICT). It also brought about the awareness that
developing countries striking to improve their economic prospects today should aim at
investing not only in their physical capital, but also directly in their “knowledge base”.

The implications of the knowledge revolution for sustainable Development are that
conserving natural capital and building up human capital may likely help national and global
development become more environmentally and socially sustainable. In the next unit, we
shall look at international trade and development.

99 | P a g e
11.0 UNIT ELEVEN GLOBALIZATION: INTERNATIONAL TRADE AND
DEVELOPMENT

11.1 INTRODUCTION
In this unit, we shall be looking at globalization as it affects international trade. We
shall discuss the trade strategies for development, costs and benefits of free trade.
We shall rap-up the unit by discussing the charging roles of developing countries in global
trade.

11.2 AIM

<The aim of this unit is to discuss the prospects and challenges of international
trade and development in respect of developing countries.

11.3 OBJECTIVES

At the end of this unit you should be able to do the following:

 explain the waves of globalization

 analyze the costs and benefits of free trade

 explain the trade strategies of development

 explain the changing roles of developing countries in global trade

100 | P a g e
11.4 TIME REQUIRED

You are required to spend a minimum of 21 hours per week reading and
answering practice questions.

11.5 REFLECTION

Can globalization serve the interests of sustainable development of the

countries in the south?

11.6 Waves of Modern Globalization

Globalization is one of the most frequently used words in discussions relating to

development, trade and international political economy. Globalization is a process by which
the economies of the world become increasingly integrated, leading to a global economy, and
increasingly, global economic policy making. Put differently, globalization refers to the
growing interdependence of countries resulting form their increased economic integration via
trade, foreign investment, foreign aid and international migration of people and ideas.

For some, the term globalization suggests exciting business opportunities, more rapid growth
of knowledge and innovation. In terms of development the question to ask are is globalization
an inevitable phenomenon of human history?

Or does it bring about new forms of inequality and exploitation? Globalization is not
altogether new. Researches point out three waves of modern globalization. The first started
more than 100 years ago, (1870-1914). Over this period, exports doubled relative to the GDP
of developing countries of Africa Asia and Latin America. The second wave of globalization
lasted from the 1950s to the 1980s and involved mostly developed countries where trade and
investment flows were growing. At the same time, most developing countries were stuck in
the role of primary goods exporters. The third current wave of globalization started in the
1980s and continues today driven by two factors.

101 | P a g e
One involves technological advances that have radically lowered the costs of transportation,
communication and computation. The other factor is the increasing liberalization of trade and
capital markets. It is important to note that a number of international institutions such as
World Bank; International Monetary Fund (IMF), World Trade Organization (WTO) and
General Agreement ,on Tariffs and Trade (GATT) play an important role in promoting global
free trade in place of protectionism.

In the past two decade, some 24 developing countries have approximately doubled their ratio
of trade to GDP but much of the rest of the developing world, including most of the sub-
Saharan Africa failed to participate in globalization processes and failed negative income
growth rates. For countries that are actively engaged in globalization, the benefits come with
new risks and challenges.

11.7 Trade Strategies of Development

11.7.1 Export Promotion

Export promotion is the term used to refer to 'government' efforts to expand the volume of a
country's exports through export incentives and other means in order to generate more foreign
exchange and improve the current account of its balance of payments." The promotion of
LDC primary or secondary exports has long been considered a major ingredient in any viable
long – run development strategy. Many low income LDCs still rely on primary products for
most of their export earnings. With the exception of petroleum exports and a few needed
minerals, primary products export has grown more slowly than total world trade.

Moreover, the LDC share of these exports has been falling over the past few decades. There is
the tendency for the concentration on one or few commodities for exports by the LDCs e.g.
Ghana on cowa, Gambia and Senegal on groundnut. Colombia and Brazil largely on coffee.
The question now is -what is the implication of LDCs dependence on primary commodities
for economic growth and development. The answer is that the prospects for export earning
will depend on two major factors (i) the demand prospect (ii) the prospect for supply of these
commodities. On the demand prospect, the income elasticity of demand for primary
commodities is low- 0.3 to 0.5 in sugar, cocoa, tea, coffee and bananas. The reason for this is
related to Engle’s law.

102 | P a g e
Apart from the above, there are factors lending to reduce growth as a r s It of substitution of
synthetic products for natural primary commodities of LDCs e.g. synthetic rubber for natural
rubber. There is also substitute for wool e.g. nylon. Saccharine is a substitute for sugar. There
are also technological changes that result m the re-use of raw materials called recycling. On
the supply side, two major forces are at work. These include impact of technological change
on supply and the effect of weather changes. Even when weather condition are favourable for
effective farming, technological changes have been known to increase production e.g. the use
of pesticide, to kill pests in maize and cotton production in developing countries like Zambia.

The implications of fluctuation on the supply side results in inability to earn sufficient foreign
exchange which in turn results in fluctuations in income, reductions in government revenue
and expenditure and difficulty in implementing growth projects.

11.7.2 Import Substitution (IS)

Many LDCs adopted import substitution as the dominant strategy of industrialization. It

entails a programme of replacement of previously imported goods in intermediate goods and
machinery and assembling this to meet the domestic need. It is industrialization from top to
bottom. It is not only rationalization in term of the usual industrialization objective and
balance of payment rationale but in terms of protection argument. Chenery has shown that the
rise of industrialization through import replacement was due largely to changes in the supply
side and not much from composition of demand side.

Also, experience and studies of import substitution m LDCs have shown at:

i. import substitution industrialization does not lead initially to a reduction in the

imported commodity but that there has been a shift of import from imported raw
materials to manufactured goods;

ii. the IS industrialization has been established as a result of a very high protection of
these industries; and
iii. The objective of expanding employment outside agriculture.

The merits of import substitution strategy include:

103 | P a g e
 i. infant industry argument where the industry needs protection m order to enable it
lower its cost as a means of competing favourably with foreign goods; and

ii. foreign investment argument in which protection may induce a multinational to

establish a branch behind the tariff wall. The policy of IS is difficult to sustain beyond
the consumer goods. If it fails, it brings about higher prices of domestic product,
inferior brands, underutilized capacity and drain on the foreign exchange.

11.8 Costs and Benefits of Free Trade

Participating countries in free foreign trade benefit immensely from such

activities. These include:

i. increased access to international markets with the attendants opportunity to benefit

from international division of labour. In it trading countries are able to move their
resources to the most productive uses by specializing in producing and exporting what
they can produce best, while importing all the rest.

ii. an actively trading country benefits from the new technologies that "spillover" to it
from its trading partner via knowledge embedded in imported production equipment.
This gives developing countries a chance to catch up more quickly with the
developing countries in terms of productivity.

These benefits notwithstanding, countries opening to international trade, also face

considerable risks associated with the strong competition in international markets. While
international competition creates the necessary pressure to prevent economic and
technological stagnation to stimulate domestic producers to produce better goods; and to
lower costs of production, there is a high risk that many enterprises and even entire industries
will be forced out of business. Closing of enterprises and higher unemployment impoverish
people and slow national economic growth. Free global trade is still more of an ideal to be
reached than a present-day reality.

11.9 Changing Roles of Developing Countries in Global Trade

The growing role of international trade in most developing countries’ economics has not yet
resulted in a considerably increased share of developing countries in total global trade as

104 | P a g e
compared to what this share was in the 1980’s. Developing countries still trade mostly among
themselves. In most of them, terms of trade deteriorated in the 1980s and 1990s because
primary goods have fallen relative to prices of manufactured goods. Developing countries that
depend on these exports have already suffered heavy economic losses. In response to this ugly
development in their terms of trade, many developing countries are increasing the share
manufactured goods in their exports.

11.10 International Migration

An important aspect of globalization is the increased international mobility of people. Over
60 percent of the worlds migrants moved from developing to developed countries and this
South-North migration is expected to grow in the future owing to economic as well as
demographic reasons. However concerns are growing about the damage done to the
development aspirations of the poorer countries by emigration of the most qualified
professionals – the so-called “brain drain” Developing countries are advised to develop
mechanisms for encouraging retention and return migration of their qualified workers as this
will bring back foreign knowledge and experience, i.e converting "brain drain" into "brain
circulation”.

105 | P a g e
11.11 ACTIVITIES

Explain whether all countries should be equally open to foreign

trade. Give reasons for your answer.
11.12 SUMMARY

In this unit, our discussion centred on international trade and development as

an integral part of globalization. We looked at the various perspectives of
international trade as they relate to globalization. The current wave of modem
globalization formed the backdrop to other topics of discussion which include trade strategies
of development-export promotion and import substitution. We further looked at the costs and
benefits of free trade. We ended the discussion with a discussion on the changing roles of
developing countries in Global trade as well as international migration.

The conclusion drawn from the discussion in this unit is that there is need for developing
nations to make every efforts to reduce their individual and joint economic vulnerabilities and
one method of achieving this goal is to pursue policies of greater collective self - reliance
within the context of mutual economic cooperation. In the next unit, we shall discuss the
impact of globalisation on developing countries.

106 | P a g e
UNIT 11: THE IMPACT OF GLOBALISATION ON DEVELOPING COUNTRIES

11.1 INTRODUCTION

This unit is to discuss the benefits and drawbacks from the point of view that
globalization made in the developing countries in the three important fields such as
economic and trade processes, education and health systems and culture effects

11.2 AIM

The aim of this unit is to evaluate the positive and negative impact of
globalization on developing nations.

11.3 OBJECTIVES

At the end of this unit you should be able to evaluate the positive and negative
impact of globalization on developing countries in the following areas:

 economic and trade processes field;

 education and health systems; and

 cultural effects

11.4 TIME REQUIRED

You are expected to spend a minimum of 21 hours per week on this unit.

107 | P a g e
11.5 REFLECTION

Globalisation has brought more harm than good to developing nations.

Discuss.

11.6 GLOBALISATION AND ITS IMPACT ON DEVELOPING COUNTRIES

Globalization is a process of global economic, political and cultural integration. It has made
the world become a small village; the borders have been broken down between countries.
''The history of globalization goes back to the second half of the twentieth century, the
development of transport and communication technology led to situation where national
borders appeared to be too limiting for economic activity'' (Economic Globalization in
Developing Countries, 2002). Globalization is playing an increasingly important role in the
developing countries. It can be seen that, globalization has certain advantages such as
economic processes, technological developments, political influences, health systems, social
and natural environment factors. It has a lot of benefit on our daily life.

Globalization has created a new opportunities for developing countries. Such as, technology
transfer hold out promise, greater opportunities to access developed countries markets,
growth and improved productivity and living standards. However, it is not true that all effects
of this phenomenon are positive. Because, globalization has also brought up new challenges
such as, environmental deteriorations, instability in commercial and financial markets,
increase inequity across and within nations. This paper evaluates the positive and negative
impact of globalization on developing nations in the following proportions:

i. Economic and Trade Processes Field

ii. Education and Health Systems
iii. Culture Effects

11.6.1 Economic and Trade Process

Globalization helps developing countries to deal with rest of the world increase their
economic growth, solving the poverty problems in their country. In the past, developing
countries were not able to tap on the world economy due to trade barriers. They cannot share

108 | P a g e
the same economic growth that developed countries had. However, with globalization the
World Bank and International Management encourage developing countries to go through
market reforms and radical changes through large loans. Many developing nations began to
take steps to open their markets by removing tariffs and free up their economies. The
developed countries were able to invest in the developing nations, creating job opportunities
for the poor people. For example, rapid growth in India and China has caused world poverty
to decrease (blogspot.com.2009). It is clear to see that globalization has made the
relationships between developed countries and developing nations stronger, it made each
country depend on another country.

According to Thirlwall (2003:13) " Developing countries depend on developed countries for
resource flows and technology, but developed countries depend heavily on developing
countries for raw materials, food and oil, and as markets for industrial goods". One the most
important advantages of globalization are goods and people are transported easier and faster
as a result free trade between countries has increased, and it decreased the possibility of war
between countries. Furthermore, the growth in the communication between the individuals
and companies in the world helped to raise free trade between countries and this led to growth
economy. However, globalization has many economy and trade advantages in the developing
countries, we must also note the many disadvantages that globalization has created for the
poor countries. One reason globalization increases the inequality between the rich and poor,
the benefits globalization is not universal; the richer are getting rich and the poor are
becoming poorer.

Many developing countries do benefit from globalization but then again, many of such
nations do lag behind." In the past two decades, China and India have grown faster than the
already rich nations. However, countries like Africa still have the highest poverty rates, in
fact, the rural areas of China which do not tap on global markets also suffer greatly from such
high poverty (blogspot.com.2009). On the other hand, developed countries set up their
companies and industries to the developing nations to take advantages of low wages and this
causing pollution in countries with poor regulation of pollution. Furthermore, setting up
companies and factories in the developing nations by developed countries affect badly to the
economy of the developed countries and increase unemployment.

109 | P a g e
11.6.2 Education and Health Systems
Globalization contributed to develop the health and education systems in the developing
countries. We can clearly see that education has increased in recent years, because
globalization has a catalyst to the jobs that require higher skills set. This demand allowed
people to gain higher education. Health and education are basic objectives to improve any
nations, and there are strong relationships between economic growth and health and
education systems. Through growth in economic, living standards and life expectancy for the
developing nations certainly get better. With more fortunes poor nations are able to supply
good health care services and sanitation to their people. In addition, the government of
developing countries can provide more money for health and education to the poor, which led
to decrease the rates of illiteracy. This is seen in many developing countries whose illiteracy
rate fell down recently. It is truth that, living standards and life expectancy of developing
countries increase through economic gains from globalization.

According to the World Bank (2004) " With globalization, more than 85 percent of the
world's population can expect to live for at least sixty years and this is actually twice as long
as the average life expectancy 100 years ago". In addition, globalization helped doctors and
scientists to contribute to discover many diseases, which spread by human, animals and birds,
and it helped them to created appropriate medicines to fight these deadly diseases. For
example, HIV/ADIS, swine flu and birds' flu whole world know about these diseases and
they know how to avoid it.

By globalization, there are many international organizations, such as, Non-governmental

Organization (NGO), World Health Organization (WHO) and UNESCO, trying to eliminate
illiteracy and deadly diseases in the world and save the life. In spite of these positive effects
of globalization to the education and health fields in the developing countries. However,
globalization could have negative impacts also in these fields; globalization facilitates the
spread of new diseases in developing nations by travelers between countries. Due to increased
trade and travel, many diseases like HIV/ADIS, Swine Flu, Bird Flu and many plant diseases,
are facilitated across borders, from developed nations to the developing ones. This influences
badly to the living standards and life expectancy these countries.

According to the World Bank (2004) "The AIDS crisis has reduced life expectancy in some
parts of Africa to less than 33 years and delay in addressing the problems caused by

110 | P a g e
economic". Another drawback of globalization is, globalized competition has forced many
minds skilled workers where highly educated and qualified professionals, such as scientists,
doctors, engineers and IT specialists, migrate to developed countries to benefit from the
higher wages and greater lifestyle prospects for themselves and their children. This leads to
decrease skills labour in the developing countries.

11.6.3 Culture Effects

Globalization has many benefits and detriment to the culture in the developing countries.
Many developing countries cultures has been changed through globalization, and became
imitate others cultures such as, America and European countries. Before globalization it
would not have been possible to know about other countries and their cultures. Due to
important tools of globalization like television, radio, satellite and internet, it is possible today
to know what is happening in any countries such as, America, Japan and Australia. Moreover,
people worldwide can know each other better through globalization. For example, it is easy to
see more and more Hollywood stars shows the cultures different from America. In addition,
today we can see clearly a heavily effect that caused by globalization to the young people in
the different poor nations, it is very common to see teenagers wearing Nike T-Shirts and
Adidas footwear, playing Hip-Hop music, using Apple ipad and iphone and eating at
MacDonald, KFC and Domino's Pizza . It is look like you can only distinguish them by their
language.

One the other hand, many developing countries are concerned about the rise of globalization
because it might lead to destroy their own culture, traditional, identity, customs and their
language. Many African countries such as Zambia, Kenya, Libya and Ghana, as developing
countries have been affected negatively in some areas, their cultures, customs and traditions
have been changed. They wear and behave like developed nations, a few people are wearing
their traditional cloths that the used to. Furthermore, globalization leads to disappearing of
many words and expressions from local language because many people use English and
French words. In addition, great changes have taken place in the family life, young people
trying to leave their families and live alone when they get 18 years old, and the extended
family tends to become smaller than before (Kurdishglobe, 2010).

111 | P a g e
11.7 ACTIVITIES

Critically analyse how developing countries can benefit more from globalization
than suffering its detriments

11.9 SUMMARY

In conclusion, as we can see, the process of globalization has involved all the
countries around the world. Developing countries such as India, China, Africa,
Iraq, Syria, Lebanon and Jordan have been affected by globalization, and
whether negatively or positively, the economies of these countries have improved under the
influence of globalization. The size of direct foreign investment has increased and a lot of bad
habits and traditions erased, but also globalization has brought many drawbacks to these
countries as well. Many customs and cultures are disappeared such as traditions clothes and
some language and expressions have changed. In addition, the violence and drugs abuse are
increased and a lot of deadly diseases have spread under the influence of globalization.
However, although globalization has many disadvantages, we believe that globalization has
brought the developing countries many more benefits than the detriments. For example, we
can see there is more and a biggest opportunity for people in both developed countries and
developing countries to sell as many goods to as many people as right now, so we can say this
is the golden age for business, commerce and trade.

The next unit will look at indicators of development.

112 | P a g e
UNIT 12COMPOSITE INDICATORS OF DEVELOPMENT

12.1 INTRODUCTION

In this unit we shall look at development diamonds and human development index
as they affect developing countries.

12.2 AIM

The aim of this unit is to describe human development indicators.

12.3 OBJECTIVES

At the end of this unit you should be able to do the following

 explain what is meant by development diamond;

 explain how countries can use their wealth more effectively for the benefit of their
people;

 explain what constitutes human development index; and

 differentiate between rankings by GNP per capital and by the human development
index.

12.4 TIME REQUIRED

You are expected to spend a minimum of 14 hours on this unit.

113 | P a g e
12.5 REFLECTION

Economic indicators of development are not a true reflection of

development. Discuss.

12.6 DEVELOPMENT INDICATORS

12.6.1 Development Diamonds

Development is the process of improving the quality of all human lives. The three equally
important aspects of development are:

i. raising people's living levels;

ii. creating conditions conducive to the growth of people's self-esteem;
and
iii. increasing people's freedom of choice by increasing varieties of
consumer goods and services.

Comparing countries GNP (or GDP) per capita is the most common approach to assessing
their level of development. However, higher per capita income in a country does not always
mean that its people are better off than those in a country with lower income because there are
many aspects of human well- being that those indicators do not capture.

Development diamonds is a term used by the World Bank to portray relationships among four
socioeconomic indicators for a given country relative to the averages for that country's
income group. Life expectancy at birth, gross primary or secondary enrollment, access to safe
water and GNP per capita are presented, one on each axis, then connected with bold lines to
form a polygon. The shapes of this “diamond” can easily be compared to the reference

114 | P a g e
diamond. However, this approach makes it impossible to usually compare the development
achievements of these two pairs.
12.6.2 Human Development Index

According to United Nations experts, the human development index is used as a measure of a
country's development. This composite index is a simple average of three indices reflecting a
country's achievement in health and longevity (as measured by life expectancy at birth)
education (measured by adult literacy and combined primary, secondary and tertiary
enrollments) and living standard (measured by GDP per capita in purchasing power parity).

The goals are achieved by: life expectancy of 85 years, adult literacy and enrollments of 100
per cent, and real GDP per capita of $40,000 in purchasing power parity terms. Although,
highly desirable, these goals have not yet been fully attained by any country.

Human development is a broad and comprehensive concept. It is as much concerned with

economic growth as with its distribution, as with basic human needs as with variety of human
aspirations and as with the human deprivation of the poor.

12.6.3 Constructing the Human Development Index (HDI)

The HDI is based on thre1 indicators: longevity, educational attainment and standard of
living; and for the construction of the index, fixed minimum and maximum values have been
set for each of these indicators:

 Life expectancy at birth: 25 years and 85 years for calculating the life
 expectancy index.
 Adult literacy: 0% and 100% for calculating the education index.
 Combined gross enrolment ratio (0% and 100%)
 Real GDP per capita (PP $). $100 AND $40,000 (ppp us $) for calculating GDP
index.

115 | P a g e
For any component of the HDI, individual indices can be computed by applying the formula:

Dimension index= Actual Value -Minimum Value

Maximum Value -Minimum Value

From the above, the HDI is a simple average of the life expectancy index, education index
and adjusted GDP per capita (PP $) index.

The advantage of the human development index relative to the development diamond method
is that it allows countries to be ranked in order of their achievements in human development.
The disadvantage of the human development index is that, as any aggregate index, it does not
allow us to see the relative importance of its different components or to understand why a
country index changes over time -whether, for example, it happens because of a change in
GNP per capita or because of a change in adult literacy.

The HDI ranking of some countries differs significantly from their ranking by real GNP (or
GDP) per capita. For example, Sweden ranks only 28m in real GNP per capita, but 6th in
human development – a difference of 22 points. The difference between a country's human
development ranking and its per capita income ranking shows how successful it is (or is not),
compared with other countries in translating the (benefits of economic growth into quality of
life for its population.

A positive difference means that a country is doing relatively better in terms of human
development than in terms of per capita income. This outcome is often seen in former
socialist countries and in the developed countries of Europe. A negative difference means the
opposite.

116 | P a g e
12.7 The New Human Development Index

12.7.1 Human Development Index (HDI)

Human development assessment cannot be an easy task as it is multi-dimensional rather than

single issue. To assess human development, one index cannot be the solution. Countries
utilised Gross Domestic Product as human development which can show only economic
sphere excluding all other elements. In order to assess better than GDP and other calculations
used by different countries United National Development Programme began to report it
through multi-dimensional method known as Human Development Index. It is upgraded all
the time to show better results and changed recently to have better result. In 2010 HDI report,
this change was used to declare various nations' HDI.

12.7.2 Changes occurred in new Human Development Index (HDI)

The differences between old and new HDIs are given in below explanation.
The basic differences in old and new HDIs are as follows
1. There is a change of goalposts in three indices of HDI.
2. Geometric mean is taken for assessment of HDI.

There are three indices used in Human Development Index. Those are Life Expectancy Index,
Education Index and Income Index. This article gives the comparison of old and new HDIs.

12.7.3 Changes occurred in Life Expectancy Index (LEI) in new HDI calculation

As per old HDI, the minimum life expectancy was 25 years. In new HDI, the minimum life
expectancy is reduced to 20 years. As per old HDI, the maximum life expectancy was 85
years. In new HDI, the maximum life expectancy is reduced to 83.5 years. The formula to
calculate the LEI is same given in old HDI.

117 | P a g e
12.7.4 Changes occurred in Education Index (EI) in new HDI calculation

As per old HDI, there were two indices named Adult Literacy Index (ALI) and Gross
Enrolment Index (GEI). As per new HDI, these are replaced by Minimum Years of School
Index (MYSI) and Expected Years of Schooling Index (EYSI). MYSI is given minimum
value as zero and maximum value as 13.2 and EYSI is given minimum value of zero and
maximum value as 20.6. For total education index minimum value is set as zero and
maximum value is set as 0.951. The formula is changed for calculation of new Education
Index, which you can gain from below link about new HDI.

12.7.5 Changes occurred in Income Index (II) in new HDI calculation

As per old HDI, the minimum income was $100 and maximum was $40, 000. As per new
HDI, the minimum income is $163 and maximum income is $108, 211. In old HDI, Gross
Domestic Product was taken and in new HDI, Gross national Income was taken. The formula
to calculation of new Income Index remained the same.

12.7.6 Changes occurred in new HDI calculation

There used to be taking of average mean of three indices to determine old HDI, but as per new
HDI, the geometric value of three indices is taken as HDI.

Human Development Index is even though is not ultimate index to calculate and assess
human development, it is better than other indices which are being used by various countries.
Now, there can be assessment as per the new HDI which can better assess than old HDI.

Birth of Human Development Index (HDI)

United Nations Development Programme reports consist of these human development reports.
Pakistani economist MahbubulHaq prepared it with the help of various economists. Nobel
Laureate AmartyaSen of India had also prominent role in preparing of Human Development
Index (HDI). These reports are seen from 1990 in UNDP reports.

118 | P a g e
12.7.7 Change in Human Development Index (HDI)

As the time goes on, there are changes in HDI in order to improve the assessment. The recent
change in HDI occurred in 2010 report. Changes are necessary in order to maintain the
quality. The new methodology of Human Development Index (HDI) calculation is to be
discussed here.

12.7.8 What is the new method of calculation of Human Development Index (HDI)?

Human Development Index (HDI) consists of three parameters to assess the quality of life
which is referred as human development and well-being. These are:
1. Life expectancy;
2. Education or Knowledge availability; and
3. Per capita income of the concerned people of a country.

12.7.9 Life Expectancy Index assessment as per new HDI calculation method
New Life Index calculation has come out with changing its goalposts (minimum and
maximum of the life expectancy). For life expectancy, it has taken 1980-2010 as years which
are considered to form these values. Minimum value for life expectancy is fixed at 20 years in
new calculation. Maximum value for life index is kept at 83.2 years.

12.7.10 How to calculate Life Expectancy Index (LEI) as per new HDI calculation?
Formula to calculate Life Expectancy Index (LEI) = Life Expectancy of a country -20/ 83.2-
20

12.7.11 Education Index assessment as per new HDI calculation method

Education Index (EI) assessment is composite of two indices. These are

1. Mean Years of Schooling Index (MYSI)
2. Expected Years of Schooling Index (EYSI)

119 | P a g e
12.7.12 How to calculate Mean Years of Schooling Index (MYSI) as per new HDI
calculation?

Mean Years of Schooling means the spent years by a 25 years or older person in school. The
low value was fixed at 0 and the maximum value for mean years of schooling is fixed at 13.2.
These values are taken after observation of various countries in the time of 1980-2010.
Formula to calculate Mean Years of Schooling Index (MYSI) = Mean years of schooling - 0/
13.2 - 0

12.7.13 How to calculate Mean Expected Years of Schooling Index (EYSI) as per new
HDI calculation?

Expected Years of Schooling means years that is to be spent by a 5 year old boy in school in a
particular country. This assessment of goal posts (Minimum and maximum values) for
expected years of schooling is also based on 1980 – 2010 in various countries. Low value for
expected years of schooling is fixed at 0 and high value is fixed at 20.6.
Formula to calculate Expected Years of Schooling Index (EYSI) = Expected Years of
Schooling – 0/ 20.6 – 0

12.7.14 How to calculate Education Index?

Formula to calculate Education Index = (MYSI X EYSI) 1/2 – 0/ 0.951 - 0
Income Index assessment as per new HDI calculation method
To calculate this index, goal posts are set as per observations during 1980 – 2010 in various
countries. Gross National Income per capita is taken as measure to calculate new Income
Index in new HDI. Minimum income is set as $163 and maximum income is set as $108,211.

12.7.15 How to calculate Income Index as per new HDI calculation?

Formula to calculate Income Index = Log (Country's GNIpc) – Log ($163) / Log ($108,211) –
Log ($163)

120 | P a g e
12.7.16 How to calculate Human Development Index as per new method?

Formula to calculate Human Development Index (HDI) = (Life Expectancy Index X

Education Index X Income Index) 1/3
New Human Development Index (HDI) is geometric mean of Life Expectancy Index (LEI),
Education Index (EI) and Income Index (II).

After this calculation total value will be between 0 and 1. As per the values gained, countries
will be placed in the list of division of countries. They are divided into very high human
development, high human development, medium high human development and low high
human development countries.

12.8 Relationship between Economic Growth and Human Development

We need to emphasize here that there is no automatic link between these two variables.
Economic growth is important because no society has been able to sustain the well-being of
its people without continuous growth; so economic growth is essential for human
development. But human development is equally important because it is healthy and educated
people who contribute more to economic growth through productive employment and
increase in income.

Thus human development and economic growth are closely connected. II~ reality, economic
growth is a means to an end, and the end is human development. Policy makers should
therefore pay more attention to the quality of growth so as to support all-round human
development.

12.9 ACTIVITIES

Critically give a critique of the New HDI.

121 | P a g e
12.10 SUMMARY

Our discussion in this unit centred on the composite indicators of

development. At the outset, attempts were made to define development.
Having done that, we looked at the development diamond enunciated by
exports at the World Bank. It relates to the relationship among four socio economic indicators
for a given country relative to the averages for that country's income group. Next, we
discussed the human development index which experts at the UN prefer as a measure of a
country's development. An addition to this is the method for constructing the human
development index.

Finally, we looked at the relationship between economic growth and human development. We
conclude that the weaknesses of the Development diamond and the human development
index notwithstanding, the HDI present a better approximation of the state of a country’s
development than its income alone. In the next unit we shall discuss the indicators of
sustainable development.

122 | P a g e
UNIT 13: DEVELOPMENT GOALS AND STRATEGIES

13.1 INTRODUCTION

In this unit, we shall be looking at development goals and strategies. "In it, we shall
take a closer look at millennium development goals, the role of national
development policies and the need for national sustainable development policy
13.2 AIM

The aim of this unit is to critically analyse development strategies and goals that
are developed with the purpose of promoting sustainable development.

13.3 OBJECTIVES

At the end of this unit you should be able to do the following

 explain the millennium development goals;

 describe the role of national development policies;

 explain the need for national sustainable development strategy; and

 explain the difficult choices facing every country in dealing with its development
issues.

13.4 TIME REQUIRED

You are required to spend 21 hours per week on this unit.

123 | P a g e
13.5 REFLECTION

From the MDGs experience, do you think the SDGs are viable and will be
attained?

13.6 MILLENIUM DEVELOPMENT GOALS

The Millennium Development Goals (MDGs) are eight goals which were created by 189
participating states of the United Nations at the beginning of the year 2000. The participating
states have agreed to try to achieve these goals by the year 2015. The goals expected to be
achieved are: to eradicate extreme poverty and hunger, achieve universal primary education,
promote gender equality and empower women, reduce child mortality, improve maternal
health, combat HIV/AIDS malaria and other diseases, ensure environmental sustainability
and finally to develop a global partnership for development. These 189 states and the member
organizations of the United Nations will be the key contributors to allocate the resources need
to achieve these eight goals. The Millennium Development Goals and their elated targets
calledfor the achievement of the following outcomes by 2015.

1. Decreasing by half the proportion of people living in extreme poverty (on less than
US $1 a day) and suffering from hunger;
2. Achieving universal primary education;
3. Eliminating gender disparity at all levels of education;
4. Reducing the under -five mortality rate by two –thirds;
5. Reducing the material mortality ratio by three quarters;
6. Halting and beginning to reverse the spread of HIV/AIDS, Malaria and other diseases;
7. Ensuring improved environmental sustainability (by integrating sustainable
development into country's policies, reversing the loss of environmental resource and

124 | P a g e
 halving the proportion of people without access to potable water and basic sanitation);
and

8. Building a Global Partnership for Development.

The eighth goal was added in 2001 and its specific targets and indicators continue to be
actively discussed and formulated under the leadership of the main international development
agencies. As of early 2002, wide agreement seemed to have been achieved on the following
targets.

i. Further develop open and nondiscriminatory trading and financial systems which
would include an increased level of official development assistance.

ii. Address the special needs of the least developed countries and those of the landlocked
and small island developing countries.

iii. Deal comprehensively with the problem of the unsustainable foreign debt of
developing countries.

iv. Develop and implement strategies for reducing youth unemployment. Provide access
to affordable essential drugs in developing countries.

v. Spread more widely the benefits of new technologies, especially information and
communication technologies (ICT)

13.7 SUSTAINABLE DEVELOPMENT GOALS

13.7.1. Introduction
The Sustainable Development Goals (SDGs), officially known as Transforming our world:
the 2030 Agenda for Sustainable Development is a set of 17 "Global Goals" with 169 targets
between them. Spearheaded by the United Nations through a deliberative process involving
its 193 Member States, as well as global civil society, the goals are contained in paragraph 54
United Nations Resolution A/RES/70/1 of 25 September 2015. The Resolution is a broader

125 | P a g e
intergovernmental agreement that acts as the Post 2015 Development Agenda (successor to
the Millennium Development Goals). The SDGs build on the Principles agreed upon under
Resolution A/RES/66/288, popularly known as The Future We Want.[2] It is a non-binding
document released as a result of Rio+20 Conference held in 2012 in Rio de Janeiro, in Brazil.

The SDGs were in large measure informed by the perspective reflected in the often quoted
assertion by Ban Ki-moon, the United Nations Secretary-General from 2007 to 2016, that "we
don’t have plan B because there is no planet B".

On 19 July 2014, the UN General Assembly's Open Working Group (OWG) on Sustainable
Development Goals (SDGs) forwarded a proposal for the SDGs to the Assembly. The
proposal contained 17 goals with 169 targets covering a broad range of sustainable
development issues. These included ending poverty and hunger, improving health and
education, making cities more sustainable, combating climate change, and protecting oceans
and forests.[4] On 5 December 2014, the UN General Assembly accepted the Secretary-
General's Synthesis Report which stated that the agenda for the post-2015 SDG process
would be based on the OWG proposals.

The Intergovernmental Negotiations on the Post 2015 Development Agenda (IGN) began in
January 2015 and ended in August 2015. Following the negotiations, a final document was
adopted at the UN Sustainable Development Summit September 25–27, 2015 in New York,
USA. The title of the agenda is Transforming our world: the 2030 Agenda for Sustainable
Development.

13.7.2 Background

The history of the SDGs can be traced to 1972 when governments met in Stockholm,
Sweden, for the United Nations Conference on the Human Environment, to consider the
rights of the human family to a healthy and productive environment.[9] It was not until 1983
that the United Nations decided to create the World Commission on Environment and
Development which defined sustainable development as "meeting the needs of the present
without compromising the ability of future generations to meet their own needs". In 1992 the

126 | P a g e
first United Nations Conference on Environment and Development was held in Rio. The first
agenda for Environment and Development, also known as Agenda 21, was developed and
adopted in Rio.

The history of the SDGs can be traced to 1972 when governments met in Stockholm,
Sweden, for the United Nations Conference on the Human Environment, to consider the
rights of the human family to a healthy and productive environment.[9] It was not until 1983
that the United Nations decided to create the World Commission on Environment and
Development which defined sustainable development as "meeting the needs of the present
without compromising the ability of future generations to meet their own needs". In 1992 the
first United Nations Conference on Environment and Development was held in Rio. The first
agenda for Environment and Development, also known as Agenda 21, was developed and
adopted in Rio.

13.7.3 Official logos for each of the Millennium Development Goals.

In preparation for the Rio+20 Conference, Indonesia held a July 2011 government retreat in
Solo, Indonesia. At this event, Colombia proposed the idea of the SDGs. This was picked up
by the United nations Department of Public Information 64th NGO Conference in September
2011 in Bonn where the outcome document proposed 17 sustainable development goals and
associated targets. In the run-up to Rio+20 there was much discussion about the idea of
SDGs. At the Rio+20 Conference, a resolution, known as The Future We Wantwas reached
by member states. Among the key themes agreed on were poverty eradication, energy, water
and sanitation, health, and human settlement.

Paragraph 246 of the Future We Want outcome document forms the link between the Rio+20
agreement and the Millennium Development Goals: "We recognize that the development of
goals could also be useful for pursuing focused and coherent action on sustainable
development. The goals should address and incorporate in a balanced way all three
dimensions of sustainable development (environment, economics, and society) and their
interlinkages. The development of these goals should not divert focus or effort from the
achievement of the Millennium Development Goals". Paragraph 249 states that "the process
needs to be coordinated and coherent with the processes to consider the post-2015
development agenda".

127 | P a g e
Taken together, paragraph 246 and 249 paved the way for the Millennium Development
Goals (MDGs). The MDGs were officially established following the Millennium Summit of
the United Nations in 2000 and the agreement in the Future We Want outcome document.
The Rio+20 summit also agreed that the process of designing sustainable development goals,
should be "action-oriented, concise and easy to communicate, limited in number, aspirational,
global in nature and universally applicable to all countries while taking into account different
national realities, capacities and levels of development and respecting national policies and
priorities".

Because the MDGs were to be achieved by 2015, a further process was needed. Discussion of
the post-2015 framework for international development began well in advance, with the
United Nations System Task Team on Post 2015 Development Agenda releasing the first
report known as Realizing The Future We Want. The Report was the first attempt to achieve
the requirements under paragraph 246 and 249 of the Future We Want document. It identified
four dimensions as part of a global vision for sustainable development: Inclusive Social
Development, Environmental Sustainability, Inclusive Economic Development, and Peace
and Security. Other processes included the UN Secretary General's High Level Panel on the
Post 2015 Development Agenda, whose report was submitted to the Secretary General in
2013.

13.8 The 17 SUSTAINABLE DEVELOPMENT GOALS (SDGs)

On 25 September 2015, the 194 countries of the UN General Assembly adopted the 2030
Development Agenda titled Transforming our world: the 2030 Agenda for Sustainable
Development. Following the adoption, UN agencies under the umbrella of the United Nations
Development Group, decided to support an independent campaign to help communicate the
agreed Sustainable Development Goals to a wider constituency. Known as Project Everyone,
the independent campaign introduced the term Global Goals and was supported by corporate
institutions and other International Organizations. Because this decision was made without
the approval of the member states, it met resistance. In addition, several sections of civil
society and governments felt the UNDG ignored "sustainability," even though it was the most
important aspect of the agreement. That the term "Global Goals" also refers to several other
processes not related to the United Nations was another concern.

128 | P a g e
The Official Agenda for Sustainable adopted on 25 September 2015 has 92 paragraphs.
Paragraph 51 outlines the 17 Sustainable Development Goals and the associated 169 targets.
The 17 SDGs are listed below, together with some of their key facts and figures:

13.8.1 Goal 1: No Poverty

No Poverty - End poverty in all its forms everywhere.

Extreme poverty has been cut by more than half since 1990- however, more than 1 in 5
people live on less than $1.25 a day

Poverty is more than lack of income or resources- it includes lack of basic services, such as
education, hunger, social discrimination and exclusion, and lack of participation in decision
making.

Gender inequality plays a large role in the perpetuation of poverty and its risks; They then
face potentially life-threatening risks from early pregnancy, and often lost hopes for an
education and a better income.

Age groups are affected differently when struck with poverty; its most devastating effects are
on children, to whom it poses a great threat. It affects their education, health, nutrition, and
security. It also negatively affects the emotional and spiritual development of children
through the environment it creates.

13.8.2 Goal 2: Zero Hunger

Zero Hunger - End hunger, achieve food security and improved nutrition and promote
sustainable agriculture

Globally, 1 in 9 people are undernourished, the vast majority of these people live in
developing countries

Agriculture is the single largest employer in the world, providing livelihoods for 40 per cent
of today’s global population. It is the largest source of income and jobs for poor rural
households. Women comprise on average 43 per cent of the agricultural labor force in
developing countries, and over 50 per cent in parts of Asia and Africa, yet they only own
20% of the land.

129 | P a g e
Poor nutrition causes nearly half (45 per cent) of deaths in children under five – 3.1 million
children each year.

Goal 2 Targets :

By 2030, end hunger and ensure access by all people, in particular the poor and people in
vulnerable situations, including infants, to safe, nutritious and sufficient food all year round

By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally
agreed targets on stunting and wasting in children under 5 years of age, and address the
nutritional needs of adolescent girls, pregnant and lactating women and older persons

By 2030, double the agricultural productivity and incomes of small-scale food producers, in
particular women, indigenous peoples, family farmers, pastoralists and fishers, including
through secure and equal access to land, other productive resources and inputs, knowledge,
financial services, markets and opportunities for value addition and non-farm employment

By 2030, ensure sustainable food production systems and implement resilient agricultural
practices that increase productivity and production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and
other disasters and that progressively improve land and soil quality

By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and
domesticated animals and their related wild species, including through soundly managed and
diversified seed and plant banks at the national, regional and international levels, and promote
access to and fair and equitable sharing of benefits arising from the utilization of genetic
resources and associated traditional knowledge, as internationally agreed

Increase investment, including through enhanced international cooperation, in rural

infrastructure, agricultural research and extension services, technology development and plant
and livestock gene banks in order to enhance agricultural productive capacity in developing
countries, in particular least developed countries

Correct and prevent trade restrictions and distortions in world agricultural markets, including
through the parallel elimination of all forms of agricultural export subsidies and all export

130 | P a g e
measures with equivalent effect, in accordance with the mandate of the Doha Development
Round

Adopt measures to ensure the proper functioning of food commodity markets and their
derivatives and facilitate timely access to market information, including on food reserves, in
order to help limit extreme food price volatility

13.8.3 Goal 3: Good Health and Well-being.

Good Health and Well-being - Ensure healthy lives and promote well-being for all at all ages.

Significant strides have been made in increasing life expectancy and reducing some of the
common killers associated with child and maternal mortality, and major progress has been
made on increasing access to clean water and sanitation, reducing malaria, tuberculosis, polio
and the spread of HIV/AIDS.

However, only half of women in developing countries have received the health care they
need, and the need for family planning is increasing exponentially, while the need met is
growing slowly - more than 225 million women have an unmet need for contraception.

An important target is to substantially reduce the number of deaths and illnesses from
pollution-related diseases:

1. By 2030, reduce the global maternal mortality ratio to less than 70 per 100,000 live
births.
2. By 2030, end preventable deaths of newborns and children under 5 years of age, with
all countries aiming to reduce neonatal mortality to at least as low as 12 per 1,000 live
births and under-5 mortality to at least as low as 25 per 1,000 live births.
3. By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical
diseases and combat hepatitis, water-borne diseases and other communicable diseases.
4. By 2030, reduce by one third premature mortality from non-communicable diseases
through prevention and treatment and promote mental health and well-being.
5. Strengthen the prevention and treatment of substance abuse, including narcotic drug
abuse and harmful use of alcohol.
6. By 2020, halve the number of global deaths and injuries from road traffic accidents.

131 | P a g e
 7. By 2030, ensure universal access to sexual and reproductive health-care services,
including for family planning, information and education, and the integration of
reproductive health into national strategies and programmes.
8. Achieve universal health coverage, including financial risk protection, access to
quality essential health-care services and access to safe, effective, quality and
affordable essential medicines and vaccines for all.
9. By 2030, substantially reduce the number of deaths and illnesses from hazardous
chemicals and air, water and soil pollution and contamination.

13.8.4 Goal 4: Quality Education

Quality Education - Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all.

Major progress has been made for education access, specifically at the primary school level,
for both boys and girls. However, access does not always mean quality of education, or
completion of primary school. Currently, 103 million youth worldwide still lack basic literacy
skills, and more than 60 per cent of them are women

Target 1 "By 2030, ensure that all girls and boys complete free, equitable and quality primary
and secondary education leading to relevant and Goal-4 effective learning outcomes"- shows
the commitment to non-discriminatory education outcomes

13.8.5 Goal 5: Gender Equality

Gender Equality - Achieve gender equality and empower all women and girls.

Providing women and girls with equal access to education, health care, decent work, and
representation in political and economic decision-making processes will fuel sustainable
economies and benefit societies and humanity at large

While a record 143 countries guaranteed equality between men and women in their
Constitutions by 2014, another 52 had not taken this step. In many nations, gender
discrimination is still woven through legal and social norms

Though goal 5 is the gender equality stand-alone goal, the SDG's can only be successful if
women are completely integrated into each and every goal

132 | P a g e
13.8.6 Goal 6: Clean Water and Sanitation
Clean Water and Sanitation - Ensure availability and sustainable management of water and
sanitation for all.

The first three out of eight targets include:

1. "By 2030, achieve universal and equitable access to safe and affordable drinking
water for all."
2. "By 2030, achieve access to adequate and equitable sanitation and hygiene for all and
end open defecation, paying special attention to the needs of women and girls and
those in vulnerable situations."
3. "By 2030, improve water quality by reducing pollution, eliminating dumping and
minimizing release of hazardous chemicals and materials, halving the proportion of
untreated wastewater and substantially increasing recycling and safe reuse globally."

WASH experts have stated that without progress on Goal 6, the other goals and targets cannot
be achieved. Safe drinking water and hygienic toilets protect people from disease and enable
societies to be productive. Attending school and work without disruption is a precursor to
education and employment, both of which are the foundation of alleviating poverty. A study
from 2016 showed how sanitation, when done with a resource recovery and reuse focus can
contribute towards achieving at least fourteen of the SDGs, especially in an urban context.
Recovering the resources embedded in excreta and wastewater like nutrients, water and
energy contributes towards achieving Goal 12 (sustainable consumption and production) and
Goal 2 (zero hunger) while ensuring adequate sanitation and wastewater management along
the entire value chain in cities contributes to Goal 11 (sustainable cities and communities),
Goal 1 (no poverty) and Goal 8 (decent work and economic growth).

13.8.7 Goal 7: Affordable and Clean Energy

Affordable and Clean Energy - Ensure access to affordable, reliable, sustainable and modern
energy for all.

133 | P a g e
Goal 7 targets:

1. By 2030, ensure universal access to affordable, reliable and modern energy services
2. By 2030, increase substantially the share of renewable energy in the global energy
mix
3. By 2030, double the global rate of improvement in energy efficiency
4. By 2030, enhance international cooperation to facilitate access to clean energy
research and technology, including renewable energy, energy efficiency and advanced
and cleaner fossil-fuel technology, and promote investment in energy infrastructure
and clean energy technology
5. By 2030, expand infrastructure and upgrade technology for supplying modern and
sustainable energy services for all in developing countries, in particular least
developed countries, small island developing States, and land-locked developing
countries, in accordance with their respective programmes of support

13.8.8 Goal 8: Decent Work and Economic Growth

Decent Work and Economic Growth - Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent work for all.

World Pensions Council (WPC) development economists have argued that the twin
considerations of long-term economic growth and infrastructure investment weren’t
prioritized enough: "More worryingly, ‘Work and Economic Growth’ and ‘Technological
Innovation and Infrastructure Investment’ joined the [SDGs] priority list at number 8 and
number 9 respectively, a rather mediocre ranking which defies economic common sense".

Goal 8 Targets:

1. Sustain per capita economic growth in accordance with national circumstances and, in
particular, at least 7 per cent gross domestic product growth per annum in the least
developed countries.
2. Achieve higher levels of economic productivity through diversification, technological
upgrading and innovation, including through a focus on high-value added and labour-
intensive sectors
3. Promote development-oriented policies that support productive activities, decent job
creation, entrepreneurship, creativity and innovation, and encourage the formalization

134 | P a g e
 and growth of micro-, small- and medium-sized enterprises, including through access
to financial services
4. Improve progressively, through 2030, global resource efficiency in consumption and
production and endeavour to decouple economic growth from environmental
degradation, in accordance with the 10-year framework of programmes on sustainable
consumption and production, with developed countries taking the lead.
5. By 2030, achieve full and productive employment and decent work for all women and
men, including for young people and persons with disabilities, and equal pay for work
of equal value
6. By 2020, substantially reduce the proportion of youth not in employment, education
or training
7. Take immediate and effective measures to eradicate forced labour, end modern
slavery and human trafficking and secure the prohibition and elimination of the worst
forms of child labour, including recruitment and use of child soldiers, and by 2025
end child labour in all its forms
8. Protect labour rights and promote safe and secure working environments for all
workers, including migrant workers, in particular women migrants, and those in
precarious employment
9. By 2030, devise and implement policies to promote sustainable tourism that creates
jobs and promotes local culture and products
10. Strengthen the capacity of domestic financial institutions to encourage and expand
access to banking, insurance and financial services for all
11. Increase Aid for Trade support for developing countries, in particular least developed
countries, including through the Enhanced Integrated Framework for Trade-Related
Technical Assistance to Least Developed Countries
12. By 2020, develop and operationalize a global strategy for youth employment and
implement the Global Jobs Pact of the International Labour Organization

135 | P a g e
13.8.9 Goal 9: Industry, Innovation and Infrastructure
Industry, Innovation and Infrastructure - Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation.

13.8.10 Goal 10: Reduced Inequalities

Reduced Inequalities - Reduce income inequality within and among countries.

13.8.11 Goal 11: Sustainable Cities and Communities

Sustainable Cities and Communities - Make cities and human settlements inclusive, safe,
resilient and sustainable.

13.8.12 Goal 12: Responsible Consumption and Production

Responsible Consumption and Production - Ensure sustainable consumption and production
patterns.

13.8.13 Goal 13: Climate Action

Climate Action - Take urgent action to combat climate change and its impacts by regulating
emissions and promoting developments in renewable energy.

Nations and other parties negotiating at the UN have highlighted the links between the post-
2015 SDG process, the Financing for Development process to be concluded in Addis Ababa
in July 2015, and the COP 21 Climate Change conference in Paris in December 2015.

In May 2015, a report concluded that only a very ambitious climate deal in Paris in 2015 will
enable countries to reach the sustainable development goals and targets.[40] The report also
states that tackling climate change will only be possible if the SDGs are met. Further,
development and climate are inextricably linked, particularly around poverty, gender
equality, and energy. The UN encourages the public sector to take initiative in this effort to
minimize negative impacts on the environment.

This renewed emphasis on climate change mitigation was made possible by the partial Sino-
American convergence that developed in 2015-2016, notably at the UN COP21 summit
(Paris) and ensuing G20 conference (Hangzhou).

13.8.14 Goal 14: Life Below Water

Life Below Water - Conserve and sustainably use the oceans, seas and marine resources for
sustainable development.

136 | P a g e
The United Nations Ocean Conference of 2017 sought to find ways and call for the
implementation of Sustainable Development Goal 14.

13.8.15 Goal 15: Life on Land

Life on Land - Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land degradation and
halt biodiversity loss.

13.8.16 Goal 16: Peace, Justice and Strong Institutions

Peace, Justice and Strong Institutions - Promote peaceful and inclusive societies for
sustainable development, provide access to justice for all and build effective, accountable and
inclusive institutions at all levels.

13.8.17 Goal 17: Partnerships for the Goals

Partnerships for the Goals - Strengthen the means of implementation and revitalize the global
partnership for sustainable development.

Targets and indicators

As of August 2015, there were 169 proposed targets for these goals and 304 proposed
indicators to show compliance.

13.9 The process (for arriving at the Post-2015 development agenda)

Since Rio+20 - the Earth Summit of 2012 - did not elaborate specific goals, a 30-member
Open Working Group (OWG) was established on 22 January 2013 by the decision of the UN
General Assembly. The OWG was tasked with preparing a proposal on the SDGs for
consideration during the 68th session of the General Assembly, September 2013 – September
2014.

The OWG used a constituency-based system of representation: most of the seats in the
working group are shared by several countries. After 13 sessions, the OWG submitted their
proposal of 17 SDGs and 169 targets to the 68th session of the UN General Assembly in
September, 2014.

The Rio+20 outcome document mentioned, “at the outset, the OWG will decide on its
methods of work, including developing modalities to ensure the full involvement of relevant

137 | P a g e
stakeholders and expertise from civil society, the scientific community and the United
Nations system in its work, in order to provide a diversity of perspectives and experience”.

13.10 Critique of SDGs

A report by the International Food Policy Research Institute (IFPRI) of 2013 criticized the
SDGs for not being ambitious enough. They cite evidence from the report "An Ambitious
Development Goal: Ending Hunger and Under-nutrition by 2025" to suggest the emphasis
should not be on an end to poverty by 2030, but on eliminating hunger and under-nutrition by
2025. The assertion is based on an analysis of experiences in China, Vietnam, Brazil and
Thailand. The report identifies 3 pathways to achieving the goal by 2025. 1) agriculture-led;
2) social protection- and nutrition intervention-led; or 3) a combination of both of these
approaches.

The SDGs have been criticized for being contradictory, because in seeking high levels of
global GDP growth, they will undermine their own ecological objectives. It has also been
noted that, in relation to the headline goal of eliminating extreme poverty, "a growing number
of scholars are pointing out that $1.25 is actually not adequate for human subsistence", and
the poverty line should be revised to as high as $5.

A commentary in The Economist argued that 169 targets for the SDGs is too many. The
article used descriptors like "sprawling", "misconceived", and "a mess" compared to the
Millennium Development Goals. Another criticsm is that the goals ignore local context and
promote "cookie-cutter development policies". That all other sustainable development goals
are contingent on achieving SDG 1, ending poverty. The Economist estimated that alleviating
poverty and achieving the other sustainable development goals will require about $2-$3
trillion USD per annum for the next 15 years. Critics do not see this as being feasible. The
reduction in the number of people living in abject poverty can be attributed to the growth of
China, while the MDGs have been mistakenly credited for this drop.[53] The SDGs have also
been criticized due to the inherent shortcomings in the very concept of sustainable
development and the inability of the latter to either stabilize rising carbon dioxide
concentration or ensure environmental harmony.

Another view is more positive. The SDGs were the first outcome from a UN conference that
was not criticized by any major Non-Governmental Organization (NGO). Instead, there was
broad support from NGOs. This is in stark contrast to the MDGs which were heavily

138 | P a g e
criticized by NGOs. The MDGs dealt with the problems, the SDGs deal with the causes of the
problems. The MDGs were about development while the SDGs are about sustainable
development. Finally, the MDGs used a silo approach to problem, while the SDGs take into
account the inter-linkages.

Nearly all stakeholders engaged in negotiations to develop the SDGs agreed that 17 goals
were justified because the agenda they address is all encompassing.

13.11 Implementation of SDGs

Implementation of the SDGs has started worldwide. It is no easy task however, fortunately
many people, universities, governments, organisations but also citizens work on several
topics at the same time everywhere. In each country, governments must translate the goals
into national legislation, develop a plan of action, allocate a budget, be open and search for
partners. Poor countries need the support of rich countries, and coordination at the
international level is crucial.

The Agenda is very ambitious; here are some of the obstacles and how they are being
addressed:

Communicating the Goals. A team of communication specialists did a wonderful job in

transforming the pages the diplomats drafted at UN level in which the Sustainable
Development Goals and the whole endeavour are described - quite boring - into a way these
goals could be marketed. Following a process, lead by JakobTrollbäck, icons were developed
for every goal, the title was shortened to its essence from "The 17 Sustainable Development
Goals" to "Global Goals", dedicated workshops and conferences developed on the topic of
communicating the #GlobalGoals -s.a. the Global Festival of Ideas for Sustainable
Development at the UNO headquarters in Bonn in march 2017; the endeavour was opened up
so everybody could participate, etc.

Goal 1 to eradicate poverty is hampered by growing inequality, increasingly fragile statehood

and the impacts of climate change.

For dealing with the complexity and often interlinking of the goals with each other, several
techniques and methodologies are used, e.g. at the Global Festival of Ideas for Sustainable
Development at the UNO headquarters in Bonn in march 2017, the 2030 Hive Mind game
was used: "The SDGs are highly interdependent – objectives overlap; policies compete and

139 | P a g e
complement; countries have to set priorities, sequence their efforts and manage trade-offs.
The game simulates some of these complexities to spark inventive solutions and build
alliances. This was not a modelling exercise, although the game was built on empirical
evidence. Nor was it prescriptive. The game was designed to help people, regardless of their
backgrounds, engage in a complex decision-making process.

13.12 The Need for National Sustainable Development Strategy

Arising from our discussion in (3.1) concerning the millennium development goals, the need
for a nation sustainable development strategy especially by the developing country has
become imperative.

Such strategies are in the following areas:

1. sustainable development’s and environmental accounting -Due to the rapid

destruction of many of the world’s resources, it is clear that meeting the needs of the
growing world population will require radical and early changes in consumption and
production patterns;

2. to meet expanding LDC needs, environmental devastation must be hated and the
productivity of existing resources stretched further so as to benefit more people;

3. insecure land tenure, lack of credit and inputs and absence of information often
prevent the poor from making resource – augmenting investments that would help
preserve the environmental assets from which they derive their livelihood hence
preventing environmental degradation is more often a matter of providing institutional
support to the poor than fighting an inevitable process of decay;

4. the increased accessibility of agricultural inputs to small farmers and the introduction
of sustainable methods of farming will help create attractive alternatives to current
environmentally destructive patterns of resource use;

140 | P a g e
 5. policies should be geared towards reducing congestion, vehicular and industrial
emissions and poorly ventilated house stoves which inflate the tremendously high
environmental costs of urban crowding; and

6. as the income and consumption levels of everyone else in the economy also rise, there
is likely to be a net increase in environmental destruction. There is the need, on the
part of government, to meet the increasing consumption demand while keeping
environmental degradation at a minimum.

13.13 ACTIVITIES

Please assess the performance of SDGs so far in respect of Zambia.

141 | P a g e
13.14 SUMMARY

We began this unit by looking at development goals and strategies. The issue
of Millennium Development Goals was the first to be discussed. In it, we
enumerated the eight major goals.

Seven of such goals are formulated for reaching improvements in some of the most important
indicators of development; followed by concrete targets to be achieved by 2015 in comparison
with the figures in 1990. The eight goals specifies some of the main means of achieving the
first seven goals in the portion of the work that requires joint effort by international
development partners -the governments of developed and developing countries as well as the
private sector. Next, we discussed the roles of development planning policies and finally the
strategies for a national sustainable development

142 | P a g e
UNIT 14 DEVELOPMENT PLANNING

14.1 INTRODUCTION

In this unit, we shall be looking at development planning especially as it affects

developing countries. In it, we shall discuss the nature of development planning;
the national for development planning; the planning process and finally the problems
associated with plan implementation and why plans fail.

14.2 AIM

The aim of this unit is to explore the development planning strategies used in
developing countries.

14.3 OBJECTIVES

At the end of this unit you should be able to do the following

 explain the concept of development planning;

 explain the rationale for planning;

 describe the planning process;

 explain the problems of plan implementation in developing countries such as Zambia;

and

 evaluate development planning in developing countries like Zambia

143 | P a g e
14.4 TIME REQUIRED

You are required to spend 21 hours per week on this unit.

14.5 REFLECTION

Government should not be involved in development planning, but leave

that to free markets. Discuss.

4.6 The Nature of Development Planning

Development planning involves the deliberate efforts on the part of government to speed up
the process of social and economic envelopment. In some countries such as the first union,
these efforts may be all-pervading with the government intervening directly and extensively
in the lives of the people. In others, like the mixed economics of the advanced countries and
many developing countries, the interventionist role of the government is relatively small with
emphasis on the provision of a policy framework within which the economic and other factors
operate.

The need for development planning arises largely from the fact productive resources are
scarce relative to the demand for them. Had resources been unlimited, there would have been
no need for development planning. One of the principal objectives for planning in developing
countries is to increase the rate of economic development. Development planning is
particularly popular in developing countries because it is regarded as the best strategy for
transforming that economics and for narrowing the gap between them and the advanced
industrial countries. The planning for development is indispensable for removing the poverty
of nation, for raising national and per capita income.

144 | P a g e
145 | P a g e
14.7 Objectives of Development Plans

The five principal objectives of the national development plan:

(i) To secure a united, stable and self-reliant nation.

(ii) To have a great and dynamic economy
(iii) To create a just and egalitarian society
(iv) To have a land of bright and full opportunity for all citizens
(v) To create a free and democratic society.

The short term objectives are:

(a) increase in per capita income

(b) move even distribution of income
(c) reduction in the level of unemployment
(d) increase in the supply of high level manpower
(e) diversification of the economy
(f) balanced development and indigenization of economic activity.

14.8 The Rationale for Development Planning

The widespread acceptance of planning as a development tool rested on a number of

fundamental economic and institutional arguments. Of these, we can single out four as the
most often put forward.
14.8.1 Market Failure

In developing countries, markets are under developed and in some sectors even nonexistent.
Even in well - established market economics, there are five basic situations called market
failures

1. underproduction of public goods e.g. defense, law and order, roads etc;

146 | P a g e
 2. under production of goods and services with positive externalities, for example
public health and education;
3. over pricing and underproduction by natural monopolies e.g. by electric and wider
utilities;
4. insufficient supply of social services such as pensions or medical and unemployment
insurance; and
5. insufficient information available to some parties affected by market processes e.g.
information about quality of food products and medicines available to consumers
whose health is at risk. These five situation call for some kind of government
intervention by way of development planning.

14.8.2 Resource Mobilization and Allocation

Developing economics cannot afford to waste their very limited financial and skilled human
resources on unproductive ventures skilled workers must be employed where their
contributions will be most widely felt. Economic planning is assumed to help modify the
restraining influence of limited resources by recognizing the existence of particular
constraints and by choosing and coordinating investment projects so as to channel these
scarce factors into their most productive outlets.

14.8.3 Attitudinal or Psychological Impact

It is often assumed that a detailed statement of national economic and social objectives in the
form of a specific development plan can have an important attitudinal or psychological
impact on a diverse and often fragmented population.

14.8.4 Foreign Aid

The formulation of detailed development plans has often been necessary condition for the
receipt of bilateral or multilateral foreign aid. With a dropping list of projects, governments
are better equipped to solicit foreign assistance and persuade donors that their money will be
used as an essential ingredient in a well-conceived and internally consistent plan of action.

147 | P a g e
The agricultural and industrial sectors cannot, however develop in the absence of economic
and social overheads. The building of canals, roads, rail ways, power stations etc is
indispensable for agricultural and industrial development. So are the training and educational
institution, public health and housing for providing a regular flow of trained and skilled
personnel. But private enterprise in underdeveloped countries is not interested in developing
the social and economic overheads due to their unprofitability.

14.9 The Planning Process

The strategy of planning is essentially to direct the economy in a given direction, assign
specific priorities to be followed and mobilize the resources of a nation in a deliberate attempt
to achieve rapid economic development. This gives use to the need for machinery to
formulate the plans and implement them. Part of the machinery is the setting up of a planning
commission which should be organized in a proper.

In Zambia, there is in place, Ministry of National Planning. It is broken down into a number
of divisions and sub divisions under such experts as economists, statisticians, engineers etc
dealing with the various aspects of the economy. The planning process involves some basic
models. It is this ministry that is coordinated the development of the 7th National
Development Plan 2017 – 2021 that departs from sectoral-based planning to an integrated
(multi-sectoral) development approach under the theme – “Accelerating development efforts
towards the Vision 2030 without leaving anyone behind”.

14.10 ACTIVITIES

Discuss the prospects and challenges of implementing the Seventh Development

Plan for Zambia.

148 | P a g e
2.11 SUMMARY

This unit starts off with a discussion on the nature and objectives of
development planning. We noted that planning has been seen by development
economists as a deliberate and conscious efforts on the part of developing
countries to move their nations forward in respect of social and economic development. We
further made the point that part of the rationale for planning is to correct market failures. The
process of planning was equally discussed.

149 | P a g e
UNIT 15 CIVIL SOCIETY AND DEVELOPMENT
15.1 INTRODUCTION

In this unit, we shall be looking at the role of Civil Society Organisations (CSOs) in
promoting economic development and good governance..

15.2 AIM

The aim of this unit is to analyse the roles played by CSOs in promoting
economic development

15.3 OBJECTIVES

At the end of this unit you should be able to do the following

 Define CSOs;

 Describe roles of CSOs in promoting economic development;

 describe the changing roles of CSOs;

15.4 TIME REQUIRED

You are required to spend 21 hours per week on this unit.

15.5 REFLECTION

Are CSO independent? Why should CSOs be independent in all aspects?.

150 | P a g e
15.6 THE ROLE OF CIVIL SOCIETY ORGANISATIONS IN DEVELOPMENT
Development is one of the most important pillars of country’s development. So it is important
that development is examining. Economic, political, cultural and comprehensive development
needs comprehensive planning. In comprehensive development, based on observed
experience countries with the largest coordination to the community bodies, civil society have
been successful. Because civil society is direct supervisory power of the people on the rulers
and authority’s performance and gain their power by people’s integration and movement.
That is why the civil society moved toward organizing and distribution. Guilds, parties,
media, trade unions and any group of people who are engaged in giving service, turned in to
intervening group in government’s performance and decisions. So that if decision is harmful,
they do something like: demonstration, strike and which are civil activities and express their
demands avoid conflict and remain on their positions as far as being convinced. This process
is more powerful than controlling the different sings such as: parliamentary oversight,
inspection organizations and involve society to the participation in political and social affairs.
In countries were the position of people and civil society have been respected in the
constitution in the framework of maintaining the legal freedoms and people’s fundamental
rights, the rate of development and reducing corruption is more obvious than the countries
were constitution hasn’t been respected. This guarantees one of the most basic foundations of
development.

Theories:

1. Civil society raises the awareness in the country.

2. Civil society has an essential role in harnessing the power.
3. Civil society promotes the development in the country.

15.6.1 Is sovereignty of any country affected by the demands of civil society?

In conducted researches someone like “NiraChandok” professor of Delhi University, India in
book of: civil society and government discussed somewhat interaction of these two roles
which of course talked about civil society partially. Some books and researches are provided
by Dr. “Tohidfam” [1], “Boshruyeh” and “Son EricsLidman” in this field but the vital role of
civil society is less important. The necessity of discussion and investigation in this case, end
of controlling the powers should be evaluated in all of the world as long as armed forces are
government’s vains and minimal use of violent force can be taken from the power and

151 | P a g e
governments follow a certain framework in this area. That public demand of civil social can
be achieved.

15.6.2 Definition of Civil Society

Some people consider the civil society as a presence of people out of private sphere means
their home and entering to the community and its functions.

Some people believes that, a set of civil society is included active presence of people in
different communities in society which impact the society any way.

Some people consider civil society as public institutions and organizations trade union etc.,
that each of human includes a number of individuals in the general population and have a
corporate, political, social and cultural aspects of the society.

Another definition of civil society, consists of people who makes groups and associations
based on their will and chose and independent of the government and purpose of
establishment of such groups is improving the favorites and interests of the members (civil
society, GhasemKarbasian).

Eighteen century can be considered as an important period in the event of democratic

governments and civil society. In this period universality of human rights was presented
which moved into the realm of civility at the same time with French revolution and concept
of citizenship (rights and responsibilities associated with it) was particularly important.

15.6.3 Formation of Civil Society

In the second half of eighteen century was made in civil society and government which was
customary at that time and civil society was introduced as an independent sphere from
government and was erupted in “Tom Piene” – “Adam Smith” (1723 -1790) and “Adam
Fergusson” –“John Lock” (1635-1704) and a new concept in detail of civil society was
described by: Hegel (1770 -1831). The concept of civil society was revived by: “Anthonio
Gramsci” in the early twentieth century while it was superseded in the second half of
nineteenth century and in 70s and 80s as well as developments of Central and Eastern Europe,
a new life was breathed into the concept of civil society and it was emerged as a reaction
against “totalitarianism” especially socialist totalitarian regimes. “Thomas Hobbes” (1588-
1679) and “Karl Marks (1818-1883) can be noted as the other experts who have commented
about social society.

152 | P a g e
15.6.3 The Impacts of Civil Society
Regarding of civil society in western thoughts can be classified into two groups: before
modernity and after modernity.

15.6.4 Before Modernity

Not only it doesn’t recognized in opposed to the government, but also consistency of civil
society was based on the state and state was its inevitable part. This meaning is obvious in
“Lock”, “Rousseau” and “Immanuel Kant’s” researches (1724-1804).

In Hegel’s view civil society is against the states and includes all of the areas which are
reminded after determining and analyzing of the state’s area. Civil society in contrast to the
state refers to the social relations areas which are free from interference of political powers
and includes a group of institutions and organizations, and pressure groups considering
private and civil (non-private) aspects.

15.6.5 Civil society is social relations area and government is political relations area
Civil society in this concept, is in order to prove the utility of realm, freedom of individual
rights and some limitations for government (a definition which is referred by author of the
research). Government is trying to control or limit process or political actions by drawing
political boundaries but civil society seeks an accountable government which respects the
citizen’s rights. Don’t limit the freedom and law is dominant in society. Based on that, civil
society is one of the characteristics of democratic societies. Values such as political
participation, government accountability and political generalizing are followed by civil
society without the support of expression freedom rights which is recognized and
enforceable, freedom of assembly, freedom of idea and thought public opinions of civil
society will gradually disappear.

Non-civil status doesn’t only depend on to the government’s induced policies, but also the
people who aren’t still extended to the citizens, accept it and tolerate.

As popular culture can be healthy or unhealthy, political culture can also be based on
political, mutual respect and trust, participation and rational dealing with the others political
opinions and impressions in this situation it can be called as a healthy political culture or
intolerance, disrespect to the others political opinions and tendencies, intimate and destructive
encounters in political spheres or in the other words, it is called unhealthy political culture

153 | P a g e
15.6.6 Development and Influence of Civil Society on it
As it is proposed in development, in the past development was considered unidimensional
with a look on economy, politics and culture but today it is considered as an all-round thing [.

Close relationship and proximity among countries and cultures and moving toward
globalization, the impact of a country’s lack of development becomes more obvious and more
visible on the other countries. If development consider with assumption of growth in
economy, which is included increased percapita income and GDP and make policies such as:
pluralism, tolerance of, freedom of expression, culture of development and consolidation of
cultural principles and opening the cultural atmosphere in cinema, music, writing by posing
this question that: if the practical ways of the countries which have been achieved to these
assumptions can be repeated? The answer is no but most of these ways are applicable in any
country provided that some changes are made in accordance with cultural, social, economical
and political conditions of those countries.

When the development of civil society in any country is depended on that country’s law and
constitution, allowance of civil society’s entrance (involvement) and applying for optimizing
the executive procedures and planning by that needs stabilize and development of civil
society. Out of this preconditions, supposing that the conditions are prepare for civil society
activities. What is the impact of this supposing in development as a result of relying on public
opinion and abdication of power to those who are state’s symbols –judiciary power- on behalf
of society, a two –pronged approach is acceptable that means on one hand society gives
enough authority to the executive forces in order to enforce the laws which are legislated in
accordance to public demands, advance the country and all-round development and on the
other hand, executive power relying on civil society, evaluate its deviance and its
performance which are conflict with public demand and reform it in favor of public demand.
In this stage, civil society plays its very important role and prevent from deviating and
challenging the interests of the society and puts it on the truck. Civil society is receptive the
representative of its nation public and correct by lateral and multilateral talks and settle the
problems through rational way and aside obstacles the developments in every field.

154 | P a g e
15.7 ACTIVITIES

Discuss the role of CSOs in promoting development in developing countries.

15.8 SUMMARY

Dynamics of the civil society in countries which have civil society and legal
support and let the countries and authorities take over the administration
temporarily and in its way, laws and executive procedures and do anything out
of interests of society or country. Timely response of the civil society includes parties and
press prevent from growing the corruption and improve the country’s movement toward all-
round development. If the development is not based on national interests or its trend
jeopardize the national interests, independent civil society will prevent it by taking actions.

155 | P a g e
16 REFERENCES

Afshin K (2013) Civil society history theories and comparative, Translator. National and
cultural publish.

Azghadi A (2013) Introduction to the sociology of Iran.Ghos publishers.

Bahmani J (2015) State in the modern Era. New Delhi: Sokhanvaran Publishers.

Boshruyeh H (2000) Sociology. New Delhi: Ney Publishers.

Chanderk N (2002). Civil Society and government.

Kotilainen, M &Kaitila, V. (3/2002)."Economic Globalization in Developing

Countries", The journal of Economic in Developing Countries, pp 70.

Maley, W. (2012) .Challenges of political development Afghanistan: Mass, Elite and

Institutional Dimensions.

Mohammad, T. (2002) State and democracy in the age of globalization

Myers, B. (1999). Walking with the Poor: Principles and Practices of Transformational
Development. New York: Orbis Books:New York.

Takyana P. Soubbtina. (2004). Beyond Economic Growth: An Introduction to

Sustainable Development. 2nd ed. Washington DC: The World Bank.

Todaro M.P and Smith S.C, (2011). Economic Development. New York: Addison
Wesley.

Willis, K. (2011).Theories and Practices of development. London: Routledge.

Thirlwall. A. P. (2003), "Growth & Development with special reference to

developing economies", (7th ed). Palgrave Macmillan: New York.

Todaro M & Smith S. (2003).Economic Development. New Delhi: Pearson.

1|Page
2|Page