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Development Is A Myth
Development Is A Myth
classes that think that they only have to set in motion the economic and financial policy that
is in fashion, and has been dictated by the great economic powers, the transnational and the
international economic and financial organizations. They do not realize that the technological
revolution is making anachronistic the only two comparative advantages their countries
possess, to wit, abundant unskilled labor and natural resources. Nor do they realize that this
process will gradually intensify their condition as non-viable national economies as quasi
nation-states, frustrated national projects. Positive and negative impacts, the result of
a clean water supply and an efficient transportation system would benefit the majority of the
population. For this, it is urgent to establish a balance between population growth and vital
resources like food, energy, and water.1 These results of development benefit only a minority
of the population and sometimes may even cause more harm than good in the long term.
Sensitive issue, deciding which countries are developed and which countries are not requires
regarded as “underdeveloped” and “backward”. Choices and dilemmas, there are many goals
to development. These goals may include increasing economic growth, improving standard
1
Oswaldo de Rivero B., Oswaldo De Rivero. (2001). The myth of development: non-viable economies of the
21st century. New York: St Martin Press
of living and enhancing quality of life. The definitional difficulties associated with the term
development, it is not surprising that these classifications have raised huge disagreements,
with many criticizing them as being vague and discriminatory. Moreover, it caused much
unhappiness among countries which were labeled as “Third World”. These countries felt that
the term was negative and biased, since it suggested that they occupied third place in the
hierarchy of the three worlds. Due to such problems, a new system of classification was
devised, grouping the countries into “developed” and “developing”. Hence, all countries
previously from the First World and were listed as “developed” while those from the Second
and Third World were grouped together as “developing countries”. Based on a largely
economic criterion, these categories were better received by poorer countries as “developing”
without difficulties as well. The application of the term “developing country” to some of the
countries are not improving their economic situation, but have instead experienced prolonged
periods of economic decline. After many revisions, the most common classification presently
(LDCs).
Factors affecting development, Social and cultural factors refer to factors that affect the
level of education of the population, fertility rate and birth control, work ethics, as well as the
provision and accessibility of healthcare services and medical facilities. Social norms and
cultural beliefs strongly affect people’s attitudes towards birth rate and family size. In the
LDCs, low levels of education and traditional beliefs are often responsible for the high birth
rates and large family sizes. A large population and a high birth rate tend to hinder
development because resources have to be spent on providing health and medical care, food
and education for the youthful population. As a result, fewer resources are channeled to
develop and improve the quality of life of the general population. In general, children living
in the LDCs have fewer opportunities for education as their parents cannot afford to send
them to school. Furthermore, the number of schools may be limited and there may be a lack
of properly trained teachers and facilities in the rural areas. A low literacy rate has negative
impact on the economic development of a country. People with little or no formal education
may have difficulties learning new skills and embracing modern technology. They may be
reluctant to change because they feel safer to do things in the traditional way. This leads to a
shortage of skilled labor and therefore hinders and slows down the development of secondary
and tertiary industries in the country. Environmental factors, natural disasters can strike any
country, regardless of its level of development. Both the DCs and LDCs have experienced
disaster differ greatly. When a natural disaster hits a DC, the country has the resources and
manpower to deal with it and help those whose livelihoods have been affected to recover
quickly. Agriculture, a vital source of food and income for the majority of people in the
LDCs, is often ruined by natural disasters. When compared with the DCs, the damage done
to the economies of the LDCs, is often much greater, as funds which are already limited
would have to be diverted to repair the damage, thus slowing the development process. Man-
made environmental problems can also further hinder development. For example,
overgrazing, deforestation and poor land management can lead to severe soil erosion, loss of
soil fertility and desertification. The loss of arable land for cultivation may require the
construction of expensive irrigation systems and costly chemical fertilizers to restore its
ability to support crops and natural vegetation. Historical factors, many LDCs were once
under colonial rule. While colonial governments did help to develop their colonies by
building basic infrastructure, helping their colonies develop was not the main purpose of
colonization. The colonial powers wanted to obtain natural resources that could be used for
their own industrialization and development. The outflow of resources from their colonies
resulted in these colonies being unable to fully develop their own economies. As a result, the
colonies became dependent on their colonial governments both economically and politically.
Economic factors, many LDCs are rich in natural resources such as oil, iron ore and coal.
However, this natural advantage has not been exploited to benefit the countries. This is
because the mining industries, among others, tend to be controlled by only a few large
companies. While these companies reap the profits, little of the wealth is redistributed to the
rest of the population. The country consequently remains undeveloped with the poor
infrastructure. This situation in the LDCs is unlike what happened in many of the DCs in the
19th century. The wealth from the mining industry was invested to develop the country and
raise the quality of life. Another factor that causes uneven development between countries is
the quality of workforce. In the LDCs, the workforce typically earns low wages. With a large
proportion of their income spent on basic necessities such as food, clothing and housing, they
are left with little or no savings. With little or no money for investment, they are trapped in a
vicious cycle of poverty, unable to raise their standard of living. In short, low income leads to
low investment, which results in a low level of productivity and continued low incomes.
There is, however, a way for LDCs to break out of this vicious cycle of poverty. They can do
so through the cumulative effect of movements of both people and resources to increase
wealth and spur greater economic developments in a region. This is called cumulative
causation. With initial help from the government or external agencies like the World Bank or
Asian Development Bank, the LDCs can develop a core economy through the process of
cumulative causation which benefits and develops the periphery as well. This will gradually
lead to an overall improvement in the standard of living for the population. The process of
development can take place in the following way, firstly, a new industry is introduced or an
existing industry is expanded. Secondly, this creates new or more jobs for the local
population. With employment, the population becomes richer, thus increasing their
purchasing power. Thirdly, with more income and thus savings, the workforce is able to
undertake training to improve them. Fourthly, as the quality of the workforce improves, they
are able to get better paying jobs. With increased income, demand for more goods and
services also increases. This leads to the setting up of retail and food outlets, and
entertainment, education and healthcare services. Fifthly, as the place develops to provide
better jobs and a higher standard of living, it attracts people from other areas to migrate, live
and work there, increasing the local population as a result. Sixthly, with a larger population,
the government is able to collect more taxes. Seventhly, with a larger budget, the government
can further expand the public service. A new phase of construction begins. Eighthly, the
place becomes a growth pole, that is, the catalyst of growth for a region or an area, with a
continued influx of migrants and businesses further stimulating economic growth. Political
factors, the goals of development consist of economic growth as well as how economic
benefits can be more evenly distributed to improve the quality of life of the population. To
achieve these goals, not only must the government be effectively organized, accountable and
promotes justice, there must also be good governance. Good governance is more than good,
political stability. The policies adopted by governments are equally important. All the factor
Lumpur:
Oswaldo de Rivero B., Oswaldo De Rivero. (2001). The myth of development: non-viable