What%is%Development

IED$Week$2
 A"multidimensional"process
involving"major"changes"in"social*
structures,*popular*attitudes and"
Development national*institutions,"as"well"as"the"
acceleration"of"economic*growth,"
the"reduction"of"inequality and"
eradication"of"poverty.
 Human&Resources&– Labour 0
Wages
Natural&Resources&– Land&0 Rents
Four%Elements%
of% Capital&0 Rents
Development
Technological&Innovation&0 Profits
 • Development*based*on*natural*
resources
• Colonist*rode*upon*developing*the*
natural*resources*in*the*colonized*
Colonial' country
Development • However,*it*was*development*of*
resources*and*not*people*– the*
aspect*of*welfare*was*missing*in*this*
action*of*so*called*development.
 • Backwardness+Hypothesis+–
Developing+nations+can+draw+upon+
Strategies)of) technology+and+innovations+in+the+
developed+world
Economic) • Industrialisation+vs+Agriculture
Development • State+vs+Markets
• Outward+Orientation
Economic'
Growth'in'
India
 • Low$standard$of$living
• Lower$levels$of$occupational$
specialization$due$to$
underdeveloped$markets
Characteristics*
• Returns$from$growth$are$unevenly$
of**Under0 distributed
development • Does$development$imply$that$
everyone$is$better$off$and$to$the$
same$degree?
• Vicious'circle'of'poverty
 • Asian&Dragons&– Sinagapore,&Taiwan,&South&Korea
• High&investment&rates
• Stable&macroeconomic&parameters
• Outwards&orientation

• China
Asian& • Communist&country&– command&economy
Development& • Setting&up&of&SEZ&to&private&and&foreign&players&to&
operate,&independent&of&government&intervention
Story • Outward&orientation

• Russia
• Socialism&
• Government&ownership&of&all&productive&resources
• Centrally&planned&economy
 • Do#socio'cultural#conditions#determine#
economic#development#or#does#
economic#development#determine#socio'
cultural#conditions?
Non$Economic)
Aspect)of) • Family#structure

Economic) • Decision#making#in#the#family
• Role#of#women
Development • Class#structure
• Religion
• City'country#differences
Basic&Issues&in&
Development Economic'Issues Social'Issues
• Each%of%these%issues%cannot%
be%seen%in%isolation
• Link%between%Economic%and%
Income Infant%Mortality
Social%Issues Unemployment Child%Mortality
• To%have%a%better% Prices Maternal%health
understanding%of%these%
issues%and%inter;linkages% Savings Hunger
between%the%same%we%need%
to%look%at%them%with%an% Capital Social%Exclusion
economic%lens
India&Then&
and&Now
 Income'=='development?

The'‘means’'and'‘end’'of'
Does%growth%lead%to% development

development? Commodities'vs'‘capabilities’

‘Unfreedom’
 • To#eradicate#extreme#poverty#and#hunger
• To#achieve#universal#primary#education
• To#promote#gender#equality#and#empower#
Millennium( women
• To#reduce#child#mortality
Development( • To#improve#maternal#health
Goals( • To#combat#HIV/AIDS,#malaria,#and#other#diseases
• To#ensure#environmental#sustainability
• To#develop#a#global#partnership#for#development