Meaning of Development

Meaning of Development, different concepts of development -Sustainable development,

Participatory development, Inclusive development, Human development, Growth and
Development- Broad Indicators of Economic Development- Per capita Income - PQLI
- Basic needs approach - Human Development Index - Gender Development Index -
Gender Empowerment Measure - Human Poverty Index.

I. Traditional definition:

a) In the past, development was about the capacity of a national economy to generate and sustain on annual
increase in its gross national product (GNP) or gross domestic product (GDP) or GDP per capita or GNP per
capita.

b) Although many economists will expand the above definitio.ns to real GNP per capita, and real GNP per capita at
PPP(Purchasing power parity) in USO for international comparison.
2. The above are basically definitions of economic growth. We probably want a more holistic definition of
development.
a) Dudley Seers ( 1969) suggested that development is when a country experiences a reduction or elimination of
poverty, inequality and unemployment.
b) Edgar Owens (1987) suggested that development is when there is development of people (human development)
and not development of things.
"Gandhi used the term 'development' in a very broad sense to mean the total development of society" that
include mental, spiritual, and material needs.
c) According to the World Development Report (WDR 1991 ): "The challenge of development ... is to improve
the quality of life ... better education, higher standards of health and nutrition, less poverty, a cleaner
environment, more equality of opportunity, greater individual freedom, and a richer cultural life."

► Meaning of Development, different concepts of development

Development means "improvement in country's economic and social conditions". More specially, it refers to
improvements in way of managing an area's natural and human resources; in order to create wealth and improve
people's standard of living.
Dudley Seers while elaborating on the meaning of development suggests _that while there can be value judgements
on what is development and what is not, it shou_ld be a universally acceptable aim of development to make for
conditions that lead to a realisation of the potentials of human personality. Seers outlined several conditions that can

make for achievement of this aim:

i. The capacity to obtain physical necessities, particularly food;

ii. A job (not necessarily paid employment) except studying, working on a family farm or keeping house;
iii. Equality, which should be considered an objective in its own right;
iv. Participation in government;
v. Belonging to a nation that is truly independent, both economically and politically; and
vi. Adequate educational levels (especially literacy).

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 Mean ing of Deve lopme nt
Development is not purely an econo mic phenomenon but
rather a multi-dimensional process involving reorganizatio
and reorientation of entire econo mic and social system n
.
Todaro's three objectives of development
Development is process of improving the quality of all
human lives with three equally import t
1. Raising peoples ' living levels , i.e. incomes and consu an aspects. These are:
mption levels of food medical services d • h
relevant growth processes , , , e ucat1on t roug h

2. Creating conditions helpful to the growt h of peoples'

self-esteem through the establishment of social, political
and
econo mic systems and institutions which promote human
dignity and respect
3 • Increasing peoples' freedom to choose by enlarging
the range of their choice variables, e.g. varieties of goods
services. and

Three core values of development.

l. Sustenance: The ability to meet basic needs - food, shelte

r, health, and protection. "Absolute underdevelopment"
is when any of these is absent or in critically short supply
. Without sustenance and continuous economic progress,
the realization of human potential will be greatly hinder
ed. According to Human Development Report
(HDR, 1994), "The purpose of development is to create
an environment in which all people can expand their
capabilities, and opportunities can be enlarged for both
present and future generation."
Furthermore, according to the Human Development Repor
t 2007/2008, UNDP:" ... we must see the fight against
poverty and the fight against the effect of climate chang
e as interrelated efforts. "The reason is simple because
clima te change affects the poorest most and makes develo
pment projects more difficult when increase droughts,
extrem e weath er events, tropical storms and sea level rises
will affect a large parts of Africa, many small island
states and coastal zones in our lifetimes. Development
has to be sustainable.
2. Self-Esteem: To be a Person. That is to have a sense
of worth and self-respect, of not being used as tool for others
'
end. Denis Goule t believes that devel opme nt is an impor
tant way of gaining self-esteem. HDR 2000 also appears
to
make this link. The cover ofHD R 2000 proclaims that
"Human rights and human development. Any society
comm itted to improving the lives of its peopl e must also
be committed to full and equal rights for all."
3. Freedom from Servitude: To be able to make politic
al and economic choic e that does not infringe on the others
'
rights . Econo mic growt h allows individual to expand their
range of huma n choice. Take for example, a richer perso
n
can decid e when and where at to take a vacati on but a
poor wage earner may not even have that choice becau
se a day
witho ut work may mean a day witho ut meal.
UNDP: "The goal is huma n freedom. And in pursuing
capabilities and realis ing rights, this freedom is vital. Peopl
e
must be free to exerc ise their choices and to participate
in decision-making that affects their lives."

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Meaning of Development
;... Different concepts of development

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-Economy .- Environment

• Welfare • Economic growth • Consumption of

• Equal opportunity • Efficiency and resources
• Social cohesion competitiveness • Materials and wastes
• International solidarity • Flexibility and stability • Risks
• Maintenance of • Production / • Rate of change
human capital consumption • Natural and cultural
• Employment landscape
• International trade

The tenn sustainable development became fashionable in the 1980s in both the world conservation strategy
and the book entitled "Our Common Future", known as the Brundtland Report, 1987. Sustainable development
has been defined in many ways, but the most frequently quoted definition is from the Brundtland Report:
"Sustainable development is development that meets the needs of the present without compromising the ability
of future generations to meet their own needs."
One can spot two clear issues. Firstly, the 'needs' are not defined. There is a major difference between the
needs of a person living in a Third-World country, as opposed to the needs of a person living in Western Europe.
Secondly, the definition does not offer any type of time frame, as 'generations' can only be vaguely interpreted.
The concept of sustainable development (SD) can be defined as maintenance and sustainable utilisation of the
functions (goods and services) provided by natural ecosystems and biospheric processes. Conversely, in a situation of
unsustainability, where the limits of the biosphere's carrying capacity (CC) are exceeded, not all of the environmental
functions can be fully fulfilled anymore. Let us recall some of the concepts and definitions of SD which integrate
ecological and economic regimentations.
The overall goal of sustainable development (SD) is the long-tenn stability of the economy and environment;
this is only achievable through the integration and acceptance of economic, environmental, and social concerns
throughout the decision making process.
In the application of this definition of sustainable development, one issue concerns the substitutability of
capital. There are several types of capital: social, natural, and man-made. The definition of weak sustainable
development explains that only the aggregate level of capital matters: man-made, or manufactured, capital is an
adequate alternative to natural capital. Strong sustainability, on the other hand, recognizes the unique features of
natural resources that cannot be replaced by manufactured capital. Most ecologists and environmentalists are
proponents of the strong sustainability definition (Stoddart, 2011 ).
The key principle of sustainable development underlying all others is the integration of environmental, social,
and economic concerns into all aspects of decision making. All other principles in the SD framework have integrated
decision making at their core (Dernbach J.C., 2003; Stoddart, 2011). It is this deeply fixed concept of integration that
distinguishes sustainability from other forms of policy.
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 Meaning of Development

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Therefore, sustainable development requires the elimination of fragmentation; that is, environmental,
towards
and economic concerns must be integrated throughout decision making processes in order to move
development that is truly sustainable.
► Participatory development
Participatory development (PD) seeks to engage local populations in development projects.
In this process
general public who
stakeholders can share and influence control over development initiatives. These stakeholders are
and International
are directly or indirectly affected by the project, Government, civil society organisations, donors
s designed for their
financial institutions. Public participation in development seeks "to give the poor a part in initiative
ent work. It is
benefit". This gives spaces for more people into planning, implementation, and evaluation of developm
engaged in the
expected that development projects will be more sustainable and successful if local populations are
development process.
seeks to give
One of the most commonly accepted definitions of PD is as follows : "Participatory development
these projects will
the poor a part in initiatives and projects that are designed by outside organizations in the hopes that
an
be more sustainable and successful by involving local stakeholders in the projects goals." It has become
ions. It is often
increasingly accepted method of development practice and is employed by a variety of organizat
the proper
presented as an alternative to mainstream "top-down" development. There are some questions about
PD are the "Social
definition of PD as it varies depending on the perspective applied. Two perspectives that can define
Movement Perspective" and the "Institutional Perspective".
contributions and
The Institutional Perspective: Development organizations and institutions that want to include the
tory development.
views of communities and stakeholders in a project might use an institutionalized form of participa
project goal that was
The institutional perspective seeks the inputs of communities only to help achieve a pre-de tined
itsel f.
decided by someone (usually an expert from the development world) external from the community
ve,
The institutional perspective of participatory development, also known as the project-based perspecti
industry wherein
foJlows from the he hierarchical system of social organization inherent to the global development
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 ••
Meaning of Devel opme nt
development goals are determined by external actors and in wh ·
. . . . . h th
1c e success of the project is the main, focal point.
Community part1c1pat1on 1s welcomed and actively sought only but
only within th
of the project itself. e someti•mes narrow Jy defined range

The Social Movement Perspective: In opposition to this institutional

perspective, and more in line with our
conception of what true participatory development entails, is the
social movement perspective. From this perspective,
participation is the main priority and a goal in itself. Allowing for
autonomous forms of community organization to
direct and.guide the definition of project goals and the actual implem
entation of the project, or aiding communities in
the process of developing norms and organizations for self-governan
ce, is the overarching purpose that overrides any
specific project objectives.

Full community participation allows communities to participate in

processes that actively abolish hierarchies
of power (sometimes from within the development industry). The
outside NGO rather acts as a partner to self-
governing community organizations that are empowered to make
independent decisions regarding their own
development. On a practical level, this may very well require a certain
level of flexibility in project management to
allow communities to define the direction of certain project.
► Inclusive develo pment
Inclusive growth is defined as 'growth that not only creates new econom
ic opportunities, but also one that ensures
equal access to the opportunities created for all segments of society
, particularly for the poor. Now, let us discuss what
is meant by the word inclusive. Fairly clearly, it refers to the distrib
ution of well-being, however measured. Inclusive
development argues that perverse growth may lead to the exclusion
of some people, the concentration of wealth, and
segmented labour markets. [Segmented labour markets exist becaus
e of barriers which prevent the free movement of
workers between different sections of the labour market. In practice
there is not one labour market but a number of
different and distinct markets for labour. The most obvious barrier
being skills and qualifications, but
candidates might consider others such as location, existence of a closed
shop, discrimination, financial, lack of
information etc.]
In addressing the question of what is meant by inclusive development
, two issues arise: first, the distinction
between growth and development; and second, the import of the term
inclusive. Development broadens the
dimensions of well-being beyond simply income, while inclusive focuse
s attention on the distribution of well-being in
society.
A move from just growth to inclusive development involves two steps
-a move to evaluate the distribution as
well as the average level of well-being along any dimension consid
ered, and a move to include dimensions other than
income in assessing performance. The move from growth to inclusi
ve growth takes only the first step, staying focused
on the income distribution. The move from growth to development
takes only the second step, by bringing in non-
income dimensions but staying focused on average achievements.
Inclusive development as a concept invites and
requires that both steps be taken.
In the main literatures on inclusive development and inclusive growth
-,, , one finds following elements ascribed to the
term 'inclusive' (Gupta2014):
1. A focus on the most marginalized in society (the poor, vulner
able, disadvantaged, women, elderly people) in a
non-discriminatory manner and with the aim of reducing inequalities.

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 Meaning of Development
2. A focus on sectors and areas of exclusion-for example, promoting urbanization hubs in peri-urban [denoting or
located in an area immediately adjacent to a city or urban area] areas that generate jobs or investment in employment
opportunities in rural areas, supported by rural infrastructure.
3. Equal opportunities for participation.
4. Building on local and indigenous while ensuring that modern knowledge can disperse easily through education
processes.
5. Redistributing social benefits including roads, electricity, health care and education.
6. Inspiring the self-help options of the poorest.
We would argue that we should consider four things in assessment and evaluation: (i) economic growth; (ii)
measures of income distribution, including income poverty; (iii) measures of average performance along dimensions
1. other than income, in particular education and health; and (iv) measures of distribution along non-income dimensions
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t! of well-being, including distribution not only across individuals but across salient groups such as gender or ethnicity.
:j In many ways, the Millennium Development Goals approach does this.
i
I

► Human Development
Human development is defined as the process of enlarging people's freedoms and opportunities and improving their
well-being; Human development is about the real freedom ordinary people have to decide about their identity and
;i future. The term refers to an expansion of human capabilities, a widening of choices, an enhancement of freedom, and
,,
:l a fulfilment of human rights. The human development approach, developed by the economist Mah bub UI Haq, is
anchored in Amartya Sen's work on human capabilities, often framed in terms of whether people are able to "be" and
"do" desirable things in life.
How do these ideas come together in the human development approach?
• People: the human development approach focuses on improving the lives people lead rather than assuming that
.! economic growth will lead, automatically, to greater opportunities for all. Income growth is an important means to
! development, rather than an end in itself.
• Opportunities: human development is about giving people more freedom and opportunities to live lives they value.
In effect this means developing people's abilities and giving them a chance to use them. The diagram below looks
at aspects of human development that are foundational (that is they are a fundamental part of human development);
and aspects that are more contextual (that is they help to create the conditions that allow people to flourish). Three
foundations for human development are to live a healthy and creative life, to be knowledgeable, and to have access
to resources needed for a decent standard of living. Many other aspects are important too, especially in helping to
create the right conditions for human development, such as environmental sustainability or gender equality.
• Choices: human development is, fundamentally, about more choice. It is about providing people with opportunities,
not insisting that they make use of them. No one can guarantee human happiness, and the choices people make are
their own concern. The process of development should at least create an environment for people, individually and
collectively, to develop to their full potential and to have a reasonable chance of leading productive and creative
lives that they value.

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 ancfcommunity
i Participation-irf'political life ·
, Environmental sustainability
11rn1.1wmirt1 ,(,·'-d>il~Humansectirity and rights ,i •:· ·• :,·

that: "The basic objective of development is

, The first UNDP Human Development Report published in 1990 stated
y and creative lives." It also defined human
to (Trnte an enabling environment for people to enjoy long, health
hen human capabilities" in a way which
development as "a process of enlarging people 's choices", "and strengt
enables them to lead longer, healthier and fuller lives.
► Economic growth and development
that country's g~~s domestic product, or GDP
A country's economic growth is usually indicated by an increase in
time period in a sustained way. It focuses on
per capita valued at PPP$ ( purchasing power parity$) over a long
measure are
income only and is a pure quantitative measure. Problems with this
i) Purchasing power of US $ is not constant across countries,
economic welfare has increased if the
ii) It ignores the distribution pattern . It cannot definitely be said that
ution of income is equitable.
national and even the per capita income may be rising unless the distrib
with enrichment because the composition of
iii) Expansion ofnational and per capita income cannot be identified
output could be accompanied by a
the total output is also important. For example, an expansion of total
provisions or could consist of merely a
depletion of natural resources or it could compose of only military
greater output of capital goods.
iv) It cannot directly measure well-being.
by population growth, availability and utilization
Economic growth is a complex long-term phenomenon constrained
l roles. Economic growth is obtained by an
of resources and infrastructure, Governmental , institutional and cultura
ties. It occurs with increase in the number of
efficient use of available resources and increasing the production capaci
example, through training and education, there is
people in the workforce or the quality of the workforce improves for
logy. Economic growth is demonstrated by an
an increase in capital and machinery, there is an improvement in techno
y and is a Macroeconomic phenomenon.
outward shift in its Production Possibility Curve (PPC) of an econom
. Development reflects social and economic
Economic development is a broader concept than economic growth
ary condition for development, but it is not a
progress and requires economic growth . Growth is a vital and necess
to Sen, development is about creating freedom for
sufficient condition as it cannot guarantee development. According
enables people to choose their own destiny .
people and removing obstacles to greater freedom. Greater freedom
lack of economic opportunities, corruption. poor
Obstacles to freedom, and hence to development, include poverty,
ic development is a process of change over a long
governance, lack of education and lack of health. Generally, econom
ed by an increase in citizens' quality of life.
period of time. A country's economic development is usually indicat
'Quality of life' is often measured using the Human Development
Index, which is an economic model that considers
as literacy rates, life expectancy and poverty rates.
intrinsic personal factors not considered in economic growth, such

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