Dev't Theories & Strategies

UNIT ONE: Concepts of Development
Meaning of Development
There is no single definition for almost every
writer a different definition of development
exist
It is a complicated and multi - faceted concept
The idea of development was invented in the
post II world war, to describe the process by
which backward countries would catch up
with the industrialized world with the help of
bilateral and multilateral aid and assistance
12/2/16
By Amanuel Kussia
Meaning of Development contd

Definition of development in 1950s: development
is the capacity of a nation to generate and sustain
an increase in its GNP of 5% or more
During 1950s development was synonymous for
economic growth which is quantity based concept
Michael P. Todaro
Development is not purely an economic
phenomena but rather a multidimensional process
involving reorganization and reorientation of entire
economic & social system.
12/2/16
By Amanuel Kussia
Todaro
Development is the process of improving
quality of human
lives - this process
involves:
1. Raising peoples living level
2. Creating conducive conditions to the growth
of peoples self-esteem and
3. Increasing peoples freedom to choose
12/2/16
By Amanuel Kussia
According Todaro, development must, therefore,

be conceived of as a multidimensional process
involving major changes in social structure,
popular attitudes and national institutions, as
well as the acceleration of economic growth, the
reduction of inequality and the eradication of
poverty.
Likewise Skeldon (1997) defines development as
a process of acquiring sustained growth of a
systems capability to cope with new, continuous
changes toward the achievement of progressive
political, economic, social and environmental
changes.
12/2/16
By Amanuel Kussia
4
Aspects of Development
I. Economic development: a sustainable increase
in living standards that implies increased per
capita income, better education and health as
well as environmental protection.
II. Social development: a process which results in
the transformation of social structures in a
manner which improves the capacity of the
society to fulfill its aspirations.
III. Political Development: the process of adjusting
a political system, at any historical stage of
the overall development, to the functions
required by this system as they arise from the
economic, cultural,
social.
12/2/16
By Amanuel Kussia
5
Aspects of Development contd
IV. Sustainable development: development that

meets the needs of the present without
compromising the ability of future generations to
meet their own needs.
Sustainable development involves:
. Helping the very poorest who are left with no
option but to destroy their environment to survive
. The idea of self-reliant development with natural
resource constraints
. People centered activities- human beings are key
in the concept
. Development that does not degrade environment,
etc
12/2/16
By Amanuel Kussia
View of Development
Traditional View
1950s and 60s

Development was considered as
purely an economic phenomena
Only focused on quantitative
change
A common alternative economic
index - rates of growth of
income per capita
Development - planned
alteration of the structure of
production and employment
Development strategies focused
on rapid industrialization, often
at the expense of agriculture
and rural development
The problems of poverty,
unemployment, and inequality,
etc are of secondary importance
to getting the development job
done
Contemporary View
1970s and then

Dethronement of GNP in the
1970s and increasing
emphasis on redistribution
from growth
Increasing emphasis on noneconomic social indicators
Development redefined in
terms of the reduction or
elimination o f poverty,
inequality and unemployment
within the context of a
growing economy
And so, development is
considered as the process of
improving the quality of all
human lives
Growth vs. Development

Growth
Development
Involves only
quantitative change
Narrow concept than
development
concerned with small
changes in the economy
Entails an increase in a
countrys total output of
goods and services
(increase in GNP per
capital)
Measured by GDP or
GNP or GDP/GNP per
capital
A direct measure of
change in the size of
the economy
Involves both
quantitative and
qualitative change
Wider concept
concerned with whole
changes in the economy
Economic growth +
structural change
Entails a higher
standard of living
Measured by HDI, HPI,
GEM, Gini coefficient,
transport and
communication per
person, etc
Measure quality of life
Objectives of Development
Development is both a physical reality and a state of mind
for attaining a better life
Three basic core values are a practical guideline for
understanding development and its objectives . These
value include:
1. Sustenance - the ability to meet basic needs

2. Self esteem - to be a person
3. Freedom - to be able to choose
Three objectives of development

4. Increasing availability and distribution of basic goods
5. Raising levels of living
6. Expanding range of social and economical choices
available to individuals
The Millennium Development Goals (MDGs)
The UN acknowledges the multi-dimensional nature of

development and poverty alleviation and developed
eighty goals which universally called MDGs.
The eight MDGs are:
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child morality
5. Improve maternal health
6. Combat HIV/AIDS, malaria and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Indicators of Development
Traditional measures/indicators of development

Growth
Indicators of Development contd
Traditional measures/indicators of
development
Using measures of economic performance in terms of
the value of income, expenditure and output
GDP Gross Domestic Product
The value of output produced within a country during
a time period
GNP Gross National Product
The value of output produced by permanent
residents of a country in a given pried of time
GDP/GNP per head/per capita
Takes account of the size of the population
Real GDP/GNP
Using the growth of GDP or per Capita Income (PCI)

alone to measure development is misleading because
of the following reasons:
a) It excludes some non-market and non-productive
transactions
For example,
) things produced at home by women and children
) Things that are resold or reused
) Rental income of all houses , etc
b) It ignores income distribution
c) Does not well capture quality of products
d) Rough measure of employment
e) The necessary data are often incomplete, unreliable or
not available
f) Does not consider depreciation of the capital stock
Realizing the problem of GNP or PCI as an

indicator/measure of economic development,
most researchers used the quality of life to be
regarded as an important index of development
Factors involved in the measurement of quality
i. Education and literacy rates
ii. Life expectancy
iii. The level of nutrition as measured by calorie
supply per head
iv. Consumption of energy per head
v. Consumption of consumer durable per Capita
vi. The proportion of infant mortality per thousand
of live population, etc
Development
Alternative measure of Development

The most commonly used alternative
measure of development is the Human
Development Index (HDI) encompassing
Sens thinking on capabilities.

contd
HDI
Initiated in 1990 and undertaken by UNDP in its

usual series of HDRs.
Is a summary measure of human development
Is a socio-economic measure
It measures average achievements in a country in
three basic dimensions of human development: a
long and healthy life, knowledge, and a decent
standard of living
Ranks countries into three group on a scale of 0 to
1: low, medium, and high human development
but it does not measure absolute levels of
human development

contd
HDI
Focuses on three dimensions of human
welfare:
1. Longevity as measured by life
expectancy at birth
2. Knowledge as measured by adult
literacy rate
3. A decent standard of living as
measured by real GDP per capita-log
scale: Purchasing Power Parity (PPP in
US$)

contd
Criticisms of HDI
It assumes that it is possible to measure
development in simple quantitative ways
It ignores both the situation within countries and
global power inequalities
It also neglects a host of other issues such as
gender, ecology and sustainability
Not adequate for short term impact of policy
changes
Hampered by lack of relevant data, etc
Thus, it is a crude measure of development (it is not
a comprehensive measure of human development)
that must be complemented by others
Complementary indices
Human Poverty Index (HPI) captures the level
of human poverty
Gender-related Development Index (GDI) the
HDI adjusted for gender inequality
Gender Empowerment Measure (GEM)
measures gender equality in economic and
political participation and decision making
Although aggregate indices omit a lot of what
development really means, they are still useful
Particularly, when HDI is complemented by
other measures such as HPI, GEM, and GDI make more sense
Challenges of development in Africa
1. The Vicious Circle of Poverty
Poverty
1. Income poverty - inability to attain a minimum
standard of living
2. Human poverty - a denial of choices and
opportunities for living a tolerable
Lowlife
Low
Productivity
Income
Low
Demand
Capital
Dependency
Low
Investment
Low
Saving
Challenges of development in Africa contd
2. Population growth
Limits the allocation of resources to other economic
and social sectors
Increases dependency ratio
Increases unemployment rate (due to the mismatch
between rate of job creation and the rate of supply of
the labor force)
Results in:
widespread poverty (both income and human poverty);
low labor productivity;
environmental degradation;
the growing demand for food;
slow industrialization; etc
3. The HIV/Aids pandemic

. HIV/AIDS is one of major challenges of development in Africa
. Sub-Saharan Africa alone accounted for an estimated 69% of all
people living with HIV in the world and 70% of all AIDS deaths in
2011.
. HIV/AIDS has caused massive human suffering in the continent
illness and death
. It badly affects health sector, households, schools, workplaces,
economies, etc
. People with HIV related diseases occupy more than half of all
hospital beds, large number of health professionals are being
directly affected
. AIDS causes households to dissolve as parents die, erode familys
assets and income earnings, further impoverishing the poor
. The pandemic exacerbates the problem of food insecurity, as
agriculture work is either neglected or abandoned due to
household illness
. Upon the family member(s) becoming ill, the role of women as
The HIV/Aids pandemic contd
The pandemic increases the illness and death of

teachers
It damages businesses by constricting productivity,
boosting costs, diverting productive resources,
depleting skills, leading to fall in market demand
It is hitting adults in their most economically
productive age and removing the people who could
play key role in the development
Deeping poverty
Reversing human development
Worsening gender inequality
Eroding the capacity of the government to provide
essential services
Reducing labor productivity and impeding pro-poor
4. Natural disasters and climate

change
Climate change results in:
.
Frequent droughts or floods
.
Lessening the capacity of the poor to adapt to a
changing climate
.
Reduction in the availability of water
.
Diseases, declining crop yields and natural
disasters, etc
.
The worlds poorest countries are the least
responsible for climate change but suffering a lot
.
The big challenge is to find ways of bridging the
gap between national policy responses and local
5.
The International Economic System
Most African countries are unfavorably placed in the

world economic system
Individually, they are powerless to influence
international economic relations and processes
The approaches followed by IMF, the World Bank and
Western governments in African countries have
proved flawed e.g. SAP
A key challenge - to come together and make a
collective demand for the reform of the international
economic system
A key challenge - to reassert developmental role organized development force with clear vision and
operational development program
.
.
6. Poor governance in Africa

Manifested in the form of:
. Corruption sands the wheels of
development in Africa
. Dictatorial leaders
. Lack of democracy
. Non-free media
. Administrative inefficiency, etc
. A key challenge is to transform public sector
into a more effective and democratic unit
that has the ability to respond to citizens
needs in a timely manner without favor
7.
.
.
.
.
.
The dominance of agriculture and petty

services
Economies dominated by agriculture and
petty service activities
Vast subsistence farmers, tenant farmers,
landless laborers
Very low commercial agriculture
Very low manufacturing industry
all these exacerbate the problem of poverty
and intensify the vicious circle of poverty
8.
Low lever of capital accumulation
low level of capital accumulation-both physical and

human
It is a cause of low productivity and poverty
It is also a function of poverty
The process of development can be described as a
generalized process of capital accumulation, but the
levels and rates of capital accumulation in Africa are
low
.
.
.
9. Export dominated by primary

commodities
. Trade is dominated by the export of primary
commodities and the import of manufactured
10.The curse of natural resources

.
Africa is endowed with abundant natural

resources but these resources result in deadly
conflict rather than facilitating development
Studies show that natural resource abundant
countries neglect investment and education
and they are more corrupt
Reasons: natural resource abundance may
crowd-out other activities; the rents from
natural resource may be misused by
politicians and bureaucrats
The dynamics of development
Development is a function of continuous,

dynamic, multidimensional, and highly
integrated progress in all aspects of human
living
Therefore, a single sector/actor can not bring
overall development and achieve
improvements in all aspects of human live
Poverty (one of the challenges of
development) does not affect one aspect of
human beings rather it affects the entire
facets of human beings and the environment
within which they live
And so, one-dimensional development efforts
The dynamics of development contd
Development should be a holistic

human
oriented
approach/all
encompassing approach - able to
address the diverse dimensions of
poverty
Collaboration and integration among
different actors of development and
effective coordination of different
development programs and projects is
imperative to address the dynamics of
poverty and development
Rural Urban dynamics

Strengthening linkages between urban centers and
rural areas is necessary to ensure that the two
remain mutually reinforcing
Rural-urban dynamics can help to ensure that
investments in services, facilities, infrastructure
and productive activities are located strategically in
towns to serve a wide area
Yet many policies particularly in developing
countries have ignored rural-urban dynamisms and
continue to focus exclusively on rural (rural bias) or
urban areas (urban bias) and fail to address the
connections between the two
An exclusive focus on rural areas would result in an
under-investment in urban areas and vice versa
Rural Urban dynamics contd
Therefore, a holistic approach is vital to

enhance the vibrant linkages between
urban and rural areas
This
approach
should
focus
on
enhancing backward and forward
linkages
between
agricultural
production and industry and services
The continuing integration of rural and
urban areas requires more than simply
coordination and cooperation, it needs
planning that incorporates rural and
urban development
Unit Two: Theories of Development

I.
Modernization Theories (1950s, early 1960's)
. Modernization here refers to the transition from the

traditional society of the past to modern society as it is found
today in the West
. It was the first attempt to articulate the problem of
development in terms of the need to transform the backward
"traditional" nature of third world economies into modern
Western economies
. The less developed countries should follow the industrialized
West to transform their economic, political, social, and
cultural institutions, values, and practices, expecting the
potential of the free market economy to raise living
standards in poor countries and to modernize their states
. All societies eventually develop through a linear and
progressive series of complex social processes as they move
from industrialization to urbanization, and, finally, to
modernization
.
Modernization Theories contd

Measures such as modernization of the
production apparatus, capital aid, transfer of
know-how, are vital to reach the stage of
industrialized countries
Major features of modernization theories:
Development = modernization
Path to development is only through capitalism and
industrialization
Development is essentially an irreversible process
(linear process)
Development process involves stage by stage
Development can be stimulated either by internal
dynamics or external forces
Economic growth is both the means and end in this
Modernization Theories contd

Critics of Modernization theory
It is ethnocentric only advocates the values of
Western and undermines that of developing
countries
Tradition simply becomes a residual
characteristic (not seriously analysed)
It oversimplifies view of social change
It ignores the structures of the global economy
It fails to consider the poor as the centerpiece
in poverty reduction initiative
Modernization mainly impoverished Africa
through colonialism and imperialism by the
West, etc
Linear Stages of Growth Model
Linear Stages of Growth Model contd

Criticism of the Rostow Model
Rostow is historical
Rostow is mechanical
His model assumes the inevitable adoption of
Neoliberal trade policies
Rostows Model does not apply to the Asian and
the African countries
The stages are not identifiable properly
The models assumes that growth becomes
automatic by the time it reaches the maturity
stage
There are two unrelated theories of take off
Structural-change model: The Lewis model

Surplus Labor
Structural-change model: The Lewis model

contd
Criticisms of the Lewis model
Capital flight instead of investment
Model assumes steady labor costs but wages
may rise lowering profits and further
investment
Surplus labor exists in the rural areas while
there is full employment in the urban areas- this
un supported by empirical literature and is
generally not valid
Evidence suggests that increasing returns
prevail in the modern sector instead of
diminishing returns
Technology replaces labor and spare capacity in
The International-DependenceRevolution
1. Structuralism theory
Focuses on structural aspects which hamper the

economic growth of developing countries
The essence of this theory is that developing
countries should focus on their development efforts
within themselves by mobilizing their internal
potentials and resources
Prevailing orthodox and neoclassical theories

of development had little or nothing to
contribute to the understanding of the peculiar
development problems of poor countries
Argues that the only way poor countries can
develop is through action by their state
Radical Theories of Development

2. The dependency theory
. Dependence is a conditioning situation in
which the economies of one group of countries
are conditioned by the development and
expansion of others
. In use during 1970s
. Came to existence due to the discontentment
with the modernization theory
. In developing countries, there are institutional,
political and economic rigidities that create
obstacles to growth
. Stressing external factors dependence and
dominance relationship with rich countries
Radical Theories of Development contd

2. The dependency theory contd
The main dependency models:
i. The neocolonial dependence model
ii. The false-paradigm model
iii. The dualistic-development thesis
i. The neocolonial dependence model
Based on Marxist views
Underdevelopment is due to the historical development of
an international capitalist system
Unequal power relationships between the center (the
developed countries) and the periphery (the least
developed countries).
Economic inequalities are preserved or increased by the
workings of the system.
Solution? Restucture the world capitalist system!

ii. The False-Paradigm Model
. Attributes underdevelopment to faulty and
inappropriate advice provided by well-meaning
but often uninformed, biased, and ethnocentric
international expert advisors
. The policy prescriptions serve the vested
interests of existing power groups, both
domestic and international
. Overemphasising the economic development
role played by the main growth-generating
policies that are applied in rich, industrialised
countries with well-functioning market systems

iii. The Dualistic-Development Thesis
Dualism represents the existence and persistence of

increasing divergences between rich and poor nations
and rich and poor peoples at all levels.
The concept embraces four key arguments:
a) Superior and inferior conditions can coexist in a
given space at given time
b) The coexistence is chronic and not transitional
c) The degrees of the conditions have an inherent
tendency to increase
d) Superior conditions serve to develop under
development
) Economic growth may not trickle down to those
worst off in society/the global economy

3. World Systems Theory
.
.
.
.
The world system was developed from 16th Century

in Western Europe
It gradually expanded to the global scale through
incorporating the rest of the world into its
economic and political system
We need to study the entire global economy as a
world system
We cant understand the fate of a single country
without understanding how it fits into the overall
system
Countries arent poor because of their own specific
history or internal characteristics, rather they are
poor because of their position relative to others in
the global capitalist system

3. World Systems Theory contd
Classification of economies in world system theory:

core, semi-periphery and periphery
Countries at core: called the rich, developed,
west, metropolitan countries; determine their
terms of trade with countries at periphery
Countries at periphery: called poor, dependent,
underdeveloped, satellites nations; provide raw
materials to and purchase imported goods and
technology know-how from the core countries
these countries are exploited by the core
Countries at semi-periphery: called semiindustrialized nations and serve as buffers
between the core and the periphery

4. Developmental State Theory
Chalmers Johnson in 1980s introduced a new perspective
a.
b.
c.
capitalist developmental state

He is the first person who conceptualized developmental state
Focused on Japans very rapid and highly successful post war
reconstruction and industrialization process from 1925 to 1975
The evolution of this model was closely connected to efforts aimed
at coping with an international order dominated by the
Western developed countries
Johnson advances three main arguments with regard to the
developmental state in Japan:
Markets do not exist in isolation but that they are a creation
of the state and politics
The creation of a developmental state comes first before
development priorities are put in place
The most crucial element of the developmental state is not its
economic policy, but its ability to mobilize the nation
around economic development within a capitalist system

4. Developmental State Theory contd
Two differing orientations toward private economic

activities
Regulatory
e.g. USA
Developmental
e.g. Japan
A regulatory state governs the economy mainly through

regulatory agencies
A developmental state intervenes more directly in
the economy
In other words, developmental states can pursue
industrial policies, while regulatory states
generally can not.
Johnson defines a developmental or plan rational
state as one that is determined to influence the
direction and pace of economic development by

As a pioneer in this scope, Johnson is followed by many

scholars.
For example, Evans underlines the point that the
bureaucratic elements of the state may be one of the
most important factors
Likewise, Adrian Leftwich introduced both a theory and
model of the developmental state that is centrally premised
on political considerations
Leftwich emphasizes politics as the dominant variable
which determines the concept of the developmental
state
Leftwichs model of a developmental state is largely based
on the experiences of a set of countries drawn principally
from East and South East Asia, but also includes two
African countries, Botswana and Mauritius
He concludes that it seems unlikely that it is possible
in the modern world for any society to make a speedy
and successful transition from poverty without a state
that in some respects corresponds to this model of a

Furthermore, Ha Joon Chang argues that economic
development requires a state which can create and

regulate the economic and political relationships
that can support sustained industrialization or, in
short, a developmental state
Chang defines a developmental state as one that

pursues
policies
focused
on
coordinating
investment plans; has a national development
vision; engages in institutional building to
promote growth and development; and plays a
critical role in resolving the conflicts that arise
out of reactions and counteractions to the
development trajectory between winners and
losers
Developmental state is a government with sufficient
organizations
and
power
to
archive
its

Characteristics of developmental state model
Development Oriented Political Leadership- Economic growth

is the top priority of the national interest
Autonomous and Effective Bureaucracy - bureaucracies and
the surrounding social structure strongly is the key to the
effectiveness of developmental state
Production Oriented Private Sector- Delivering high economic
performance with necessary speed and flexibility
Performance Oriented Governance - the ruling elites in these
countries demonstrated high levels of commitment to poverty
reduction, address equity concerns from the early stages of the
transformation process, political elites largely depended on
delivering growth with equity as a means of strengthening their
legitimacy and support base
A strong and active central government
Protection of fledging domestic industries
Focus on foreign technology transfer
Development Planning
Promote macroeconomic stability
Emphasis on technical education, etc
The neoclassic counterrevolution/Neoliberalism
Highly influential in the 1980s

Governing the policy agenda of the
World Bank and the International
Monetary Fund (IMF).
argue that the Third World is underdeveloped because of the heavy hand of
the state in the economy, corruption,
inefficiency, and lack of economic
incentives
Main objective: To liberalise markets and
reduce state intervention
The neoclassic counterrevolution/Neoliberalism contd
Four component approaches :

1. Free-market analysis- based on the view that
markets alone are efficient
2. Public-choice theory- based on the view that
everybody acts in their own self-interest, and

so governments can do nothing right
3. Market- friendly approach- governments have

a key role to play in facilitating operations of
markets through nonselective interventions
4. New institutionalism- success or failure of
developmental efforts depend upon the nature,
existence, and functioning of a countrys
fundamental institutions
Human Development Approach
i.
ii.
iii.
iv.
Arose in part as a result of growing criticism to

the leading development approach of the 1980s
It is an alternative development model
recognized by eminent economists due to many
factors, including:
Inability of the trickle down power of market
forces in spreading economic benefits and
ending poverty;
The human costs of Structural Adjustment
Programs became more apparent;
Social ills were still spreading even in cases of
strong and consistent economic growth;
A wave of democratization in the early 90s
raised hopes for people-centered models
Human Development Approach contd
The work of Amartya Sen and others can be

mentioned
The human development approach focuses on:
enlarging peoples choices and enhancing
human capabilities and freedoms
enabling people to live a long and healthy life,
Enabling people to have access to knowledge
and a decent standard of living, and
participate in the life of their community and
decisions affecting their lives
Improving peoples well-being
Argues that development is ultimately best
measured by its impact on individual lives
Alternative Development Approaches

1. Environment and Development
. The two are inseparable, why???
. Recall the meaning of development
. Environment can be defined from different
perspectives: economical, biological, etc.
. From economic perspective, it is a set of all factors
with which a living subject interacts, and of all
surroundings which encompass it
. From biological view, it is the surroundings of an
organism or a species, eventually the ecosystem in
which an organism or a species lives
. In general, environment is a system which provides
natural surroundings for the existence of organisms
(including humans) and which is a prerequisite for
their further evolution.

1. Environment and Development contd
.
Humans and the environment shape each
other, how??
. If we regard development narrowly only as
economic growth, the quality of environment
in general is not quite so important
. If we understand development more broadly,
the quality of environment and its sustainable
condition will become one of key priorities
. The implementation of development programs
or projects can have negative or positive
impacts on environment, how??

2. Gender and Development
. Gender refers to the different roles that men and
women play in a society, and the relative power
they exercise
. Gender and Development (GAD) concept
emerged in the 1980s out of the criticisms of the
earlier Women in Development (WID) concept
. The GAD concept shifted the discussions in
women and development discourse from 'women'
to 'gender
. This new gender focus put an emphasis on power
relations between women and men, and
. Their relative positions in socio-economic and
political structures

2. Gender and Development contd
. In general, the GAD concept urged an
institutional change within socio-economic and
political structures in order to eliminate the
gender inequalities, and to strengthen the
position of women
. In order to realize this structural change, the
GAD concept introduced the instrument of
gender mainstreaming
. And so, gender concerns are seen as important
to all aspects of development; for all sectors
and areas of activity, and a fundamental part
of the planning process

3. Population and Development
. Development is linked in various ways to population
.
.
.
.
change, how??
At this time, the argument between positive and negative
sides of population growth has reached its climax
Supporters of population growth argue that population
growth enlarges labor force and, therefore, increases
economic growth
On the other hand, challengers of population growth argue
that population growth is much more than a food problem
According to them, a high rate of population growth not
only has an adverse impact on improvement in food
supplies, but also intensifies the constraints on
development of savings, foreign exchange, and human
resources
UNIT THREE: THE STATE AND DEVELOPMENT
1. The Role of the State and Bureaucracy in

Development
.The people in developing societies suffer from a

number of problems: poverty, unemployment, shocking
health problems, illiteracy, corruption, etc
. The state is considered to be the main agency for
dealing with these, or in bringing about development
The government intervention may be necessary for the
following reasons:
i) promoting the right incentives to encourage efficient
private production;
ii) ensuring that the public goods are supplied;
iii) correcting market failures;
iv) reducing inequality, etc.
. The state function through the government, and the
government, in turn depends to a large extent upon
the bureaucracy - the role of bureaucracy keeps

Development contd
. The bureaucracy has a very important new
role, namely that of functioning as the agent of
economic development
. Bureaucracy refers to a body of employees in
authority relationship within an organization
.In the government, there are civil and military
bureaucracies
.It is notable that the bureaucracy does not
include elected politicians
.Bureaucracy consists only of appointed
employees (economists, statisticians, trained

Development contd
A. The Role of State and Bureaucracy in the
Welfare State
B. The State and Bureaucracy as Agents of
Political Development
C. The state role in enhancing social
security programs
D. The State as policy maker and
implementer
i. Bureaucracy as a Channel of
Communication
ii. The Bureaucracy as a Repository of

Development contd
F.
i.
ii.
iii.
iv.
State Enhances bureaucratic capability

Personnel development
Organizational development
Procedural Development
Development of the society
Problems of Bureaucratization
. emphasis on routine and detail - red tape
. Unresponsive
. Excessive power (in developing countries)
. Lack of transparency accountability
. Corruption, etc
New Public Management (NPM)

NPM is a management technique and practice
drawn mainly from the private sector
It shifts emphasis from traditional public
administration to public management
This shift increases the tension on traditional
state bureaucracies and public administration
to become more responsive to citizens
It seeks to enhance the efficiency of the public
sector and the control that government has
over it
The idea is to make the public service delivery
system function more and more like the
New Public Management (NPM) contd

The NPM approach advocates the governments
that
treat citizens as clients,

result-oriented,
competitive,
a mission driven anticipatory,
market-oriented,
democratic and innovative
Guiding principles of the NPM
Autonomy of the civil service and its various departments

More accountability for performance of agreed tasks
Customer orientation
Market orientation
Corporate culture
Combating corruption
Public Enterprise & Development

What is public enterprise?
There is no single definition (glimpse your reader page

62)
A public enterprise is, an organization, wholly or by a
majority publicly owned, set up to achieve commercial
and social goals; engaged in economic activities
within the sphere of agriculture, industry, commerce,
or service involving investment and returns, and the
sale of goods or services, and whose affairs are
capable of being stated in terms of balance sheets
and profit and loss accounts
The main focus is that in public enterprise, the price is
charged for goods and services
Such price may cover the entire cost or not but the
Public Enterprise & Development contd

Two main characteristics of public enterprises
1. The public dimension which involves:
I.
II.
III.
IV.
V.
Public
Public
Public
Public
Public
purpose
ownership
control
management
accountability
2. The enterprise dimension which involves:

I.
II.
III.
IV.
V.
The concept of entrepreneurship

Engaged in activity of an economic nature
Marketing output
The concept of investment and return
The concept of commercial accounting
Both dimensions should exist together

Classification of Public enterprises
Classification based on control of state
a. Public enterprise as a department
b. Public enterprise as a corporation
c. Public enterprise as a company
. Classification based on functions

a. Commercial and industrial corporations
/enterprise
b. Development corporations/enterprise
c. Finance corporations /enterprises
d. Public utility corporation /enterprise
e. Applied Research Agencies/ Universities
Roles of Public enterprise

Economic
Political
Promotional
Infrastructural
Regulatory
Service rendition
Employment generation
Entrepreneurial
Major management problems of public

enterprises
Lack of initiative and operational autonomy
Problem of low productivity
Problem of overstaffing
Lack of skilled managers and problem of
training
Low morale of managers and employees
Chronic brain drain or flight of scarce talent
Bad labor union tradition
Weak overseeing(supervising) capacity
Solutions to Management Problems
Radical change in management approach in the public

enterprises
Clear demarcation of authorities of the three main actors
in the state owned enterprises operation
Holding managers accountable
Basic wages of employees should be linked with
productivity
Institutionalization of training programs
Encouraging mobility of management personnel
between public enterprises
Avoiding political interference in industrial disputes and
the leadership of trade unions
Public enterprise reform, etc
Local Government and Local Economic Development

What is local government?
There is no single definition
It is a form of public administration which in a majority

of contexts, exists as the lowest tier of administration
within a given state
Local government vs. local governance
Local governance is a broader concept and is defined as

the formulation and execution of collective action at the
local level
Local government is one of the several actors of local

governance
Local governance encompasses the direct and indirect

roles of formal institutions of local government and
government hierarchies, the roles of informal norms,
networks, community organizations, and neighborhood

contd
Perspectives on models of government and the roles
and responsibilities of local government:
(a)
(b)
(c)
(d)
(e)
traditional fiscal federalism,

new public management (NPM),
public choice,
new institutional economics (NIE), and
network forms of local governance
What is Local Economic Development (LED)?

()
()
()
It is a process that requires active participation of all local actors

in improving the lives of local community
It is a process where the local actors shape and share the future
of their territory
It is a participatory process that encourages and facilitates
partnership between the local stakeholders, enabling the joint
design and implementation of strategies, mainly based on the
competitive use of the local resources, with the final aim of

contd
It is the process by which public, business and
nongovernmental
sector
partners
work
collectively to create better conditions for
economic growth and employment generation
In general, the LED approach focuses on

development from below and advocates the need
for promoting economic development in all areas
The aim of LED is to improve the quality of life for
all
While national institutions are often too remote to
be able to respond effectively to the rapidly
changing local and regional needs, local
institutions can be much more flexible and can
UNIT FOUR: THE PRIVATE SECTOR AND

DEVELOPMENT
Private sector - engine of growth
What is the meaning of private sector? - there is no
clear definition
There has been a heated debate among economists
on what comprises "private enterprises"
In general, private sector can be defined as the part
of the economy that is not state controlled, and is run
by individuals and companies for profit
In other words, it is a part of the economy which is run
by private individuals or groups, usually as a means of
enterprise for profit, and is not controlled by thestate
Actors in private sector three types of

actors:
1. Multi national companies (MNCs)
2. Small and Medium Enterprises (SMEs)

DEVELOPMENT
Role and contribution of private sector in
development
The private sector can contribute to development
through direct and indirect channels
Indirect contribution:
A. Contribution of MNCs
Direct contribution:
Employment and
Income
Infrastructure and
essential services
Goods and
services
Enhance local
economies
Increase tax
revenue
Policy and
governance
The environment

DEVELOPMENT
Role and contribution of private sector in
development contd
B. Contribution of SMEs
Direct contribution:
Indirect contribution:
Employment and
Enhance local
Income
Goods and
services
economies
Increase tax revenue
Policy and
governance
The environment

DEVELOPMENT
C. Contribution of micro enterprises

. Informal sector
. They are one of the most important
parts of the private sector through which
the poorest communities can work their
way out of poverty. How??
. They act as a crucial safety net scheme
. They have high capacity to create jobs
and enhance the income of the poor
. They serve as an instrument in bringing
about economic transition

DEVELOPMENT
Major constraints in the development of

private sector (mainly in developing
countries)
I. Market and Government Failures
II. Scale of Firms, Informality, and Poverty
III. Capital Constraints on Private Sector Growth
IV. Lack of competitive pressure on larger companies
V. Weak inter-firm linkages
VI. Lack of innovation capabilities

DEVELOPMENT
Measures to promote private sector/PSD

strategies
a) Improving the Business Environment: Reducing the Cost of
Doing Business
) Improvement of investment climate
) Reforms to ease business registration and the acquisition of
licenses
b) Building the capacity of market support institutions and
promoting good governance
c) Improve access, availability and quality of basic
infrastructure services to facilitate investment and trade
d) Improve access to requisite resources needed for private
sector development
e) Improving access, availability and quality of support
services is vital to building firms capacity to compete
nationally, regionally and internationally

DEVELOPMENT
The issue of privatization
In industrial countries, privatizations are usually introduced

in the context of New Public Management (NPM) reforms
In developing countries, they were fostered under the
World Banks Structural Adjustment Programs (SAP), and
now within the Poverty Reduction Strategies Papers
(PRSP)
What is privatization? It is defined in several ways
depending on the form it takes (study page 88 of the
reader)
In its narrow sense, privatization is defined as the transfer
of public enterprise to the private sector,
whereas in a broad concept, it stands for policies to
reduce the role of the state while assigning larger role for
the private sector by allowing market based economic
decisions

DEVELOPMENT
Justifications for privatization
There is intense debate on the issue of privatization
In general, proponents of privatization support

privatization for the following reasons:
Performance
Increased efficiency
Corruption
Accountability
Goal
Capital
Political influence

DEVELOPMENT
Challenges of Privatization in developing

countries
The absence of supporting policies and an
inappropriate time for implementation have
The existence of a variety of interest groups favoring
the status quo
The absence of a viable private sector and private
capital
absence of a well-developed market
Enduring government controls, such as restrictions on
exports, requirements to maintain the existing line of
business, restrictions on the sales of assets, etc
Inadequate legal and economic information, etc
UNIT FIVE: NGOs and Development

What is Non-Governmental Organization
(NGO)? - Difficulty to define and classify
In general, it refers to an organization that is not a

part of government and is not conventionally for profit
businesses
Classification of NGOs
1. Evolutionary Classification four generation of
NGOs
a. First generation - NGOs focus on relief and
welfare, and delivers relief services directly to
beneficiaries
b. Second generation NGOs are oriented towards
small-scale, self-reliant local development
c. Third generation NGOs focus on sustainable
systems development

2.
a.
b.
c.
d.
3.
a.
b.
c.
d.
Functional classification
Specialized NGOs
Welfare NGOs
Developmental NGOs
Advocacy NGOs
Geographical classification
International NGOs
Regional NGOs
National NGOs
Local NGOs

Purposes on NGOs: variety of purposes - usually
to further the political or economical or social

goals of society in general and of their
members in particular
E.g.
Improving the state of the natural
environment,
Encouraging the observance of human rights,
Improving the welfare of the disadvantaged,
Representing a corporate agenda
Poverty alleviation
Capacity building, etc

The Relationship between NGOs and
Government
Complementing the state: NGO

participates with the state in providing
the services which the state itself would
not be able to provide.
Opposing the state: NGO can oppose
the state directly or through various
pressure groups with regard to policies
that will adversely affect the NGO and
community.
Reforming the state: NGOs working at

Cooperatives and Development
A cooperative is a business organization owned and
operated by group of individuals for their mutual
benefits
Objectives of Co-operatives
To provide goods and services of high quality at low prices;
To Eliminate the middleman (unnecessary profits in trade
and commerce );
To Prevent the exploitation of the weaker members of society
(e.g. by money lenders);
To Protect the rights of the people, both as producers and
consumers;
To Promote education and mutual understanding among their
members, and
To Promote social and economic well-being of their members,

Cooperatives and Development contd
Principles of Cooperatives
A. Voluntary & Open Membership
B. Democratic Member Control
C. Member Economic Participation
D. Autonomy & Independence
E. Education, Training & Information
F. Cooperation among Cooperatives
G. Concern for Community

Cooperatives and Development contd
Benefits of Cooperatives
Access to quality supplies and
services at reasonable cost
Increased influence in the
marketplace
Share in the earnings
Political action
Local economy enhanced and
protected

Civil Society Organizations (CSOs) and
Development
Civil society organization is a wide array of non-governmental

and not for profit organizations that have a presence in public
life, expressing the interests and values of their members or
others, based on ethnical, cultural, political, scientific, religious or
philanthropic considerations
Civil society is a broader concept encompassing all organizations
and associations that exist outside the state and the market
Civil society should not be equated to non-government
organizations (NGOs) - NGOs are a part of civil society
Civil society organization can be formal or informal
Characteristics of CSOs
separation from the state and the market;

formed by people who have common needs, interests and values
like tolerance, inclusion, cooperation and equality;
development through a fundamentally endogenous and

Development contd
Classification of CSOs
i. Mass based democratic organizations
ii. Welfare/relief organizations
iii. Professional associations
iv. Traditional community based organizations
v. Faith- based organizations
vi. Interest based associations
vii. Advocacy organizations
viii. Media groups
ix. Political parties
x. Sports clubs
xi. Community Social movement/ Neighborhood

Development contd
Role of Civil Society Organizations
Promote good governance
Involve local communities in the identification and
resolution of development problems
Foster and support grassroot organizations to become
more numerous, sizable, resourceful, and self-reliant
Improve the local business investment climate;
Encourage new enterprises and livelihood programs;
Deliver social services,
Provide training and capacity building programs; and
Contribute to relief and rehabilitation, etc

Community Development and Empowerment
Community development is a process of organizing or
supporting community groups in identifying their
priority development issues, planning and acting upon
their strategies for social action and change, thereby
gaining increased self-reliance and decision-making
power as a result of their experiences
Community development aims to bring about a
change in the balance of power and create structures
which facilitate more local control.
In general, community development is a process of
participatory democracy.
This process can focus on a wide range of issues;
empowerment,
employment,
community
care,
housing, youth work etc

contd
One of the concepts related to community

development is community engagement
Community engagement - the ability to establish a
meaningful contact, conversation or discussion with
individuals and groups with the aim of maximizing
their participation and decision-making in issues that
are of concern to them
Engagement
involves
strategies
that
assist
communities to understand and use their strengths as
the basis for change
Engagement forms the critical initial steps towards
effective community development and empowerment
Both community development and community

contd
Community empowerment is thus a process whereby
individuals and/or groups of people become stronger and
more confident in controlling or exerting influence over the
issues affecting their lives.
It involves the ability of people to assert and claim their
legitimate rights in any given situation and their capacity to
accept and willingly discharge responsibilities towards
oneself, others and society
Empowerment is the ability of people, in particular the least
privileged, to:
(a) have access to productive resources that enable them to
increase their earnings and obtain the goods and services
they need; and
(b) participate in the development process and the decisions that
affect them.

Values of Community Development
Learning
Equality
Participation
Cooperation
Social justice
Dimensions of community
empowerment
Confident
Inclusive
Organized
Cooperative
Influential
UNIT SIX: GLOBALIZATION AND

SUSTAINABLE DEVELOPMENT
Meaning of Globalization
the transfer of technology, trade, finance, communication,

social systems, culture and patterns of living to another
country
the flow of trade, money, ideology, capital and direct foreign
investment across the national border
the process of integration across frontiers of liberalizing
market economies, at a time of rapidly falling costs of
transport and communications
The implications of the globalization concept can be

expressed as:
International interdependence or international integration is

growing
Trade, global financial flows, technology, international
convergence of real wages are the main aspects of
globalization
Globalization involves free trade agreements
The beneficial aspects and harmful aspects (opportunity or

Dimensions of Globalization
i. Economic globalization - economic
interrelations around the globe
ii. Political globalization - intensification and
expansion of political interrelations around
the globe
iii. Cultural globalization - the intensification
and expansion of cultural flows across the
globe
iv. Ecological globalization - global
environmental issues
v. Ideological globalization - way of looking
at the world in specific terms

Genesis of Globalization: The waves of
globalization
The first wave

spanning the period 1870-1914
triggered a massive increase in the flows of goods, capital and
labor
Exports relative to world income nearly doubled
Foreign capital more than trebled relative to income in the
colonies and developing countries
migration boomed
The second wave

The period after the Second World War - roughly spanning 1950 to
1970
It is also known as the Golden Age of economic development
the term Third World
promoted economic integration of Europe, North America, and

globalization
The second wave contd

The countries belonging to the Organization of
Economic Cooperation and Development (OECD)
economically converged
the gap between rich and poor countries continued to
increase
development assistance was introduced - in the form of
a continuation of former colonial relationships
Aid was used by the superpowers as an instrument to
gain Third World support in the fight against
communism or capitalism
The third wave


globalization
The third wave contd

It was encouraged by a lowering of tariffs, technological
advance in transport and communication technologies
It was also stimulated by the choice of large developing
countries, notably China and India, to improve their
investment climates and to open up to foreign trade
and investment
For the first time, poor countries were able to use the
potential of their abundant labor to break into global
markets for manufactured goods and for services
The more globalized developing countries have

increased their per capita growth rate
Third wave is not being accompanied by massive

Debates on Globalization
Three scenarios can be envisaged by

giving emphasis for African countries
1.
.
.
.
.
.
.
The pessimistic scenario
African states are unable to progress from guarding the

gate
This situation will continue for generations to be weakened
by internal conflicts and inter-state wars
External pressure on Africas resources will increase,
primarily from China, India and Japan, in competition with
Western firms
As a result, huge assets are taken from the continent
without any positive spillover
the new superpower China will have a negative political
influence
Globalization continues while Africa and other developing

Debates on Globalization contd
2. The moderately optimistic scenario

.
.
.
.
.
.
.
New opportunities for African to overcome old-aged

communication problems
Exports of raw materials at higher prices provide growing
and relatively stable government revenues
Open access to Western markets for export
Security for investors is increased through more effective
rule of law, financial reforms and stronger anti-corruption
measures
The regional organizations, the Economic Community of
West African States (ECOWAS), the Southern African
Development Community (SADEC) and the East African
Union gain strength
China could have a positive influence; Chinese demand
and investments are beneficial and create new
opportunities for African states
International development assistance is maintained at a

Debates on Globalization contd

3. The radically optimistic scenario
.
.
.
.
.
.
.
.
Represents a new vision, a new approach to Africas problems

Globalization has brought the countries of the world closer
together;
Countries are more dependent on each other, and
consequently are in greater need of collective action
Reformed globalization is needed, where international
measures are used to strengthen common goods
Key concepts in this context are global identity, global
social contract and global justice.
Global identity we are like all other people, I am the citizen
of the world
Global social contract rich and poor countries bind each
other to commitments in the interest of the common global
good (aid, investment, trade, migration, climate change, etc)
Global justice narrowing the gap between poor and rich;
reducing the vulnerability poor to diverse shocks; ending

Opportunities/benefits/advantages and
Threats/costs/disadvantages of globalization
assignment
reading
The Role of Global Institutions in

Development: Global Frameworks for
Development
Todays globalization era necessitates thinking globally

even though we need to act locally
So far, four important global conferences have produced
resolutions, agreements and commitments
1. The Global Compact

. Formed in 1999
. By UN and business leaders
. Focused on advancing the contribution of corporations to
development action
. Focused on corporate social responsibility (CSR)

3.
.

Development contd
The Monterrey conference
Held in 2002
brought together governments, civil society organizations,
the business community and institutional stakeholders on
global economic issues
Committed to the question how can development be
financed? - particularly in relation to MDGs
Focused on increasing donor allocations to development
budgets and less on reducing the debt of developing
countries
USA & EU increased their commitment
The Doha Meeting on Trade and Development
The Doha Ministerial meeting was intended to be a
development round that would pay explicit attention to

Development contd
3. The Doha Meeting on Trade and Development
contd
.
.
.
.
Generally accepted that appropriate reform in trade

conditions is needed
Focused on strengthening the development role of opening
up global trade
Paid attention to the concern of developing countries
Developing countries demanded for Special and
Differential Treatment (S&D)
4.
The Johannesburg Summit on Sustainable

Development (JSSD)
.
.
.
Held in 2002
Focused global attention on ends, rather than means
Was meant to assess progress since the 1992 meeting in

Development contd
4. The Johannesburg Summit on Sustainable
Development (JSSD) contd
. UN launched a WEHAB initiative focusing on five
thematic areas: water, energy, health agricultural
productivity and biodiversity
. Focused on how to align and apply economic and
social development with environmental protection
Development policies in Africa

. In the case of Africa, there are two areas of policy
. The New Partnership for African Development
(NEPAD) and the Africa Growth and Opportunity Act
(AGOA)

Development policies in Africa contd
a) Africa Growth and Opportunity Act (AGOA)
. Is a legislation that has been approved by the USA
congress in May, 2000
. The purpose of this legislation is to assist the
economy of Sub-Saharan Africa and to improve
economic relationship the USA and the region
. The legislation authorized the President of US to
determine which Sub-Saharan African countries would
be eligible for AGOA on annual basis
. AGOA extended market access to textile and apparel
goods into the US though many other goods are also
included
. Offers tangible incentives for African countries to
continue their efforts to open their economies and
build free market

Development policies in Africa contd
b) New Partnership for African
Development (NEPAD)
.
.
.
.
is a vision and a socio-economic development framework for

Africa
African leaders acknowledged the urgent need to place their
countries, independently and collectively, on a path of
sustained economic growth and development,
and simultaneously benefit from globalization
This has necessitated the transformation of the Organization
of African unity (OAU) into the African Union (AU) and
adoption of the New Partnership for Africas Development
(NEPAD)
The New Partnership for African Development (NEPAD) is a
pan-Africa statement about the strategy that the continent
should adopt to address development problems and defines

Sustainable Development what is it?
Sustainable development is Development that meets

the needs of the present without compromising the
ability of future generations to meet their own needs
(Brundtland Report (1987)
Sustainable Development (SD) implies economic
growth together with the protection of environmental
quality, each reinforcing the other
Sustainable Development is maintaining a balance
between the human needs to improve lifestyles and
feeling of well-being on one hand, and preserving
natural resources and ecosystems, on which we and
future generations depend
Improving the quality of life while living within the
carrying capacity of ecosystems

Sustainable Development contd
All definitions of sustainable development require

that we see the world as a systema system that
connects space; and a system that connects time
Sustainable development is not just about
environmental
protection,
although
this
is
important; it is also concerned with:
the quality of life,
the range of distribution of resources and benefits,
the
interactions
between
environment
and
development, and
provision for the future
The need to strike an appropriate balance
between development and conservation is at
the heart of sustainable development

Dimensions of sustainable development - the 3-pillar
model
SOCIAL
SOCI AL
ECONOMI C
Equity &
Efficiency
WELFARE
DEVELOPMENT
Sustainability
Habitability &
Accessibility
Carrying
capacity
ECOLOGI CAL
I NTEGRI TY
ENVIRONMENTAL
ECONOMIC

Promoting Sustainable Development at
Grass roots
In recent years it has been increasingly apparent

that top-down approaches can be, and perhaps
must be, effectively complemented by grass-roots,
local initiatives
For example,
The
Rio
Declaration
on
Environment
and
Development,
the UN Framework Convention on Climate Change
and subsequently the Kyoto Protocol, the
Convention on Biological Diversity, the Convention
on Desertification,
the Johannesburg Declaration or Agenda 21
are among some key global policies that focus on

Grass roots
Sustainable development depends on

concerted efforts at every level of government
and society to change behavior and
consumption patterns which deplete natural
resources and exceed the carrying capacity of
the environment
For example, Agenda 21 recommended that
local authorities should develop a consensus
on a local Agenda for their communities
Local Agenda 21 is part of the process of
defining
and
articulating
sustainable
development
considerations
at
a

Grass roots
Local government, because of its position in
society, has a major role in promoting and
working towards sustainable development
Information and awareness are essential
catalysts in motivating people to take action,
individually or collectively, to protect and
enhance the environment
So local authorities have many opportunities
to provide information, and can do so in the
light of their environment and development
responsibilities
Empowering communities with formal skill

Grass roots
Activities which are largely controlled at local
level, for example in regard to land use, waste
disposal and water services, have a major
impact on the environment.
The planning of these activities and services,
and their subsequent administration, therefore,
has a critical role in securing balanced
environmental protection and socio-economic
development
Sustainable development calls for human
beings to be placed at the centre of the stage;
and
appropriately constituted local governments are
UNIT SEVEN: DEVELOPMENT POLICIES, STRATEGIES,

PLANNING AND PROJECTS
Development Policy: What is it?
It is the general priorities and decisions set by a state or by

development agencies to achieve economic, political, and
social goals
It is a broad statement of goals, objectives, strategies and
actions designed to improve economical, social, political, and
environmental state of a particular region, nation, and /or
community
Development policy includes:
1.
Economic policy - actions that governments take in the

economic field
There are three methods/functions through which a government
typically seeks to control the economy:
Allocative,
Stabilization, and
Distributive functions.
While all three functions are always used collaboratively, their
emphasis may change with each new government, era, and
.
i.
ii.
iii.
.

1. Economic policy contd
. One of the major economic polices is macroeconomic
policy
. Macroeconomic
policy
addresses
the
overall
aggregates of the economy: prices, output,
employment, investment and savings, government
balances, and balances on the external account
. The goals of macro economy include the following:
. creating conditions for sustained growth;
. price stabilization or inflation control;
. reducing unemployment;
. smoothing economic cycles and volatility in output and
employment;
. correcting aggregate and sectoral imbalances;
. reducing poverty, and
. providing greater equity for all, especially the

1. Economic policy contd
. There are three major policy instruments to manage
these macroeconomic aggregates, namely:
A. fiscal policy;
B. monetary policy, and
C. exchange rate policy
. Other types of economic policy include: investment
and technology policy, trade policy, finance policy, etc
2. Social Policy
. Social policy is about bringing people into the centre of
policy-making, not by providing residual welfare, but by
mainstreaming their needs and voice across sectors,
generating stability and social cohesion
. It is an instrument that governments use it pragmatically
to secure the political support of citizens, and to promote
positive economic outcomes by enhancing human capital

2. Social Policy contd
. Social policies can create a virtuous circle

linking human and economic development
that, in the long run, will benefit everybody by
boosting domestic demand and creating
stable cohesive societies
. Social policy includes the following:
. Social services such as education, health,
employment, and social security
. Redistribution, protection and social justice
. Which policy (economic or social or both)
do you think would be the primary
objective of developing countries? Why?

3. Environmental policy
. Is practices, rules, strategies, or plans in
government,
private
sector
organizations and groups, or individuals
that guide human activities with a view
to the goals of preventing, reducing or
mitigating harmful effects on nature and
natural resources, and ensuring that
human-made
changes
to
the
environment do not have harmful
effects on humans

Global Framework for Development
Recall issues discussed in chapter six
International Development Programs

A.
B.
C.
D.
Millennium Development Goals (MGDs) eight goals

Poverty Reduction Strategies Papers (PRSPs)
Sector Wide Approaches (SWAps)
Results-Based Management (RBM)
Development Planning
. Development planning comprehensively involves
predetermining a nations visions, missions,
policies and programs in all facets of life such as
social,
human,
political,
environmental,
technological factors etc. and the means of
achieving them

Development Planning contd
It is a deliberate governmental attempt to coordinate

economic decision making over the long run and to
influence, direct, and in some cases even control the
level and growth of a nations principal economic
variables
(income,
consumption,
employment,
investment, saving, exports, imports, etc.) to achieve a
predetermined set of development objectives
Development planning becomes a necessary tool used
by many governments and organizations to set their
visions, missions, goals, and effective means of realizing
development through effective direction and control
Elements of Development planning

i. To plan means to choose
ii. Planning as a means of allocation resource
iii. Planning as a means of achieving goals

Development project management

reading assignment (public sector project
management module)
Development policies, plans and Strategies
in Ethiopia
1) Sustainable Development and Poverty
Reduction Program (SDPRP) - (20022005)
Pillars (Building Blocks) of SDPRP:
Agricultural Development Led Industrialization(ADLI)
and food security,
Justice System and Civil Service Reform,
Decentralization and Empowerment, and
Capacity Building in Public and Private sectors

1) Sustainable
Development
and
Poverty
Reduction Program (SDPRP) - (2002-2005)
contd
The policies and strategies
) Focus on agricultural sector with belief that it can be a
potential source to generate primary surplus to fuel the
growth of other sectors of the economy;
) Strengthening the private sector growth;
) Rapid export growth through production of high value
agricultural products;
) Major investment in education and capacity building;
) Strengthen the decentralization process to shift decision
making closer to grass root population;
) Improvements in governance;
) Agricultural research, water harvesting, and small scale
irrigation; and
) Focus on increased water resource utilization to ensure food

2) Plan
for
Accelerated
and
Sustainable
Development to End Poverty PASDEP (2005/06
2009/10
Strategic Pillars of the Plan

) A comprehensive capacity building
) Ensuring broad-based accelerated, and sustainable
economic development
) Balancing population growth and economic growth
) Creating conducive environment to unleash women
capacity
) Strengthening infrastructure
) Sustainable human resource development
) Halting the adverse impact of vulnerability and
disaster on development
) Creating job opportunity

3) Five Year Growth and Transformation

Plan ( GTP) ( 2011-2015)
The Strategic Pillars of GTP
) Registering accelerated, sustainable, and fair
economic growth.
) The agricultural sector will continue as an engine of
growth.
) Ensuring the industry sector to play a key role in
economy.
) Expand and improve the quality of infrastructure
facilities.
) Fostering social development and ensuring its
quality.
) Develop capacity and enhance good governance.
)

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UNIT ONE: Concepts of Development

Meaning of Development contd

Meaning of Development contd

Meaning of Development contd

According Todaro, development must, therefore,

Aspects of Development contd

IV. Sustainable development: development that

1950s and 60s

1970s and then

Growth vs. Development

1. Sustenance - the ability to meet basic needs

Three objectives of development

The Millennium Development Goals (MDGs)

The UN acknowledges the multi-dimensional nature of

Traditional measures/indicators of development

Indicators of Development contd

Indicators of Development contd

Using the growth of GDP or per Capita Income (PCI)

Indicators of Development contd

Realizing the problem of GNP or PCI as an

Indicators of Development contd

Alternative measure of Development

Alternative measure of Development

Initiated in 1990 and undertaken by UNDP in its

Alternative measure of Development

Alternative measure of Development

Challenges of development in Africa

1. The Vicious Circle of Poverty

Challenges of development in Africa contd

Challenges of development in Africa contd

3. The HIV/Aids pandemic

Challenges of development in Africa contd

The HIV/Aids pandemic contd

The pandemic increases the illness and death of

Challenges of development in Africa contd

4. Natural disasters and climate

Challenges of development in Africa contd

The International Economic System

Most African countries are unfavorably placed in the

Challenges of development in Africa contd

6. Poor governance in Africa

Challenges of development in Africa contd

The dominance of agriculture and petty

Challenges of development in Africa contd

Low lever of capital accumulation

low level of capital accumulation-both physical and

9. Export dominated by primary

Challenges of development in Africa contd

10.The curse of natural resources

Africa is endowed with abundant natural

The dynamics of development

Development is a function of continuous,

The dynamics of development contd

Development should be a holistic

Rural Urban dynamics

Rural Urban dynamics contd

Therefore, a holistic approach is vital to

Unit Two: Theories of Development

Modernization Theories (1950s, early 1960's)

. Modernization here refers to the transition from the

Modernization Theories contd

Modernization Theories contd

Linear Stages of Growth Model