Development III

Dr. E.R. Ojha / 8 Dec 2013

The role of values in development
Values in this context refer to value
judgement, which is an opinion as to what
course of action should be taken. Thus it is
a matter of ethics rather than economics.

Development III
Dr. E.R. Ojha / 8 Dec 2013
Economic development is about improving the
living conditions of people who live in societies.

People have to organize themselves in order to
meet their various needs:

material: food, shelter, and clothing;

nonmaterial: education, health, spiritual
satisfaction, justice/ liberty.

Development III
Dr. E.R. Ojha / 8 Dec 2013
Similarly, economists are social scientists
who have to deal with matters related to
human societies in which they themselves
live.

Although there are numerous theories,
models, and formulae used in economics
they cannot always be applicable in the
ordinary life of people.

Development III
Dr. E.R. Ojha / 8 Dec 2013
Also, unlike physical sciences, such as physics
and chemistry, the science of economics
cannot fully follow either the scientific laws
nor the universal truths.

Economic measurements and decision rules
are mostly based on general tendencies that too
vary among countries and cultures.

Development III
Dr. E.R. Ojha / 8 Dec 2013

Moreover, most economic models are based
on general assumptions about human
circumstances and behaviour and economic
relationships that may have little or no
relevance with the contexts/conditions in
developing countries/societies.

The above is true especially when one has
to deal with the human problems associated
with poverty, hunger, and epidemic
prevailing in large part of the world.
Development III
Dr. E.R. Ojha / 8 Dec 2013
Therefore, ethical or normative (what ought
to be done and what not) aspects are very
important in economics in general and
development economics (for economic
development) in particular.

These aspects are especially essential for
fully developing the human potential.

Development III
Dr. E.R. Ojha / 8 Dec 2013
Value judgements (about what is desirable and
good and what is not) play important roles
specifically in achieving the following goals:

economic and social equality;
poverty alleviation/elimination;
universal education;
rising standards of living;
national independence;

Development III
Dr. E.R. Ojha / 8 Dec 2013
institutional modernization;
political and economic participation;
grassroots democracy;
self-reliance; and
personal fulfillment/satisfaction.
Development III
Dr. E.R. Ojha / 8 Dec 2013
Similarly, value judgements play vital roles
also in deciding whether the following are
desirable and good:
the sanctity of private property, no matter
how it is acquired;
the right of an individual to accumulate
unlimited amount of wealth;
Development III
Dr. E.R. Ojha / 8 Dec 2013
the preservation of traditional hierarchical
social institutions, and rigid and in-
egalitarian class structures; and
supposed natural right of some to lead
while others follow.

Development III
Dr. E.R. Ojha / 8 Dec 2013
Other major development related issues that
are affected, and can be ameliorated, through
use of fair value judgements are:
poverty;
inequality;
unemployment;
population growth;
rural stagnation; and
environmental degradation/decay.
Development III
Dr. E.R. Ojha / 8 Dec 2013
Value premises are therefore an integral
component of economic analysis and
economic policy.

So the validity of an economic analysis or
the correctness/appropriateness of an
economic prescription should be always
evaluated in light of related value
judgements.
Development III
Dr. E.R. Ojha / 8 Dec 2013
When there are conflicts among a nations
decision-makers with regard to value
judgements the success of the agreed upon
goals and policies will be substantially
reduced.

Therefore, the value premises (the reasons to
value) should always be made clear before the
application/implementation of any economic
measures.

Development III
Dr. E.R. Ojha / 8 Dec 2013
For further reading:

Todaro, M.P. and S.C. Smith, 2010, Economic
Development, Pearson, New Delhi.