DEVELOPMENT STUDIES HAND BOOK 2019

DEVELOPMENT OF THE LATE COMMERS

Prepared

by

Dr. Tresphory Mgeni ,

The Institute of Finance Management

Shaaban Robert Street. P.o.box 3918 Dar es salaam, Tanzania

tresphorymgeni@gmail.com/tresphoory.mgeni@ifm.ac.tz/johnsontressy@gmail.com

All rights reserved. No part of this text material may be reproduced or translated in any form or
by any means, electronic or mechanical, including photocopying, recording, or any information
storage or retrieval system, without prior permission in writing from the publishers

@ 2019
ACKNOWLEDGEMENTS
It has not been easy to complete the preparation of this study, except through hard working and
commitments. Many people have contributed into the success of this work thus it would be
worthwhile recognizing their contributions. However, due to space limitations I mention only a
few on behalf of others.

The contribution made by Professor Ekra Miezan and Professor Jaeho Hwang the chairman of
the graduate school of international and area studies at Hankuk University of the Hankuk
University of Foreign studies in South Korea, for their support to make this study a success.

I wish to thank my co academicians and the whole community of the Institute of Finance
Management for their Constructive criticisms and contributions that formed an integral part of
this work

I finally recognize the contributions made by my family and friends who offered moral and
material support that would otherwise make this work too demanding to be completed on time. I
hope readers of this work will find appreciative reading this work.

Dr. Mgeni, T.
TABLE OF CONTET
ACKNOWLEDGEEMENT……………………………………………………………………………………
…………………………………3

CHAPTER ONE: THE SUBJECT MATTER OF DEVELOPMENT

STUDIES…………………………………………………5-95

CHAPTER TWO: GLOBALIZATION AND

DEVELOPMENT……………………………………………………………..96-117

CHAPTER THREE: SCIENCE AND TECHNOLOGY IN GROWTH AND

DEVELOPMENT………………….….118-136

CHAPTER FOUR: POVERTY AND

DEVELOPEMNT……………………………………………………………………..137—176

CHAPTER FIVE: ENVIRONMENTAL ISSUES AND SUSTAINABLE

DEVELOPMENT…………………………..177-215

CHAPTER SIX: GENDER AND

DEVELOPMENT………………………………………………………………….………….216-237
CHAPTER ONE: THE SUBJECT MATTER OF DEVELOPMENT STUDIES

1.0. What is Development Studies?

As Development Studies, like all academic disciplines, is primarily defined by its subject, it
seems worth reflecting on the precise meaning of this subject. Possibly underestimating the
complexities of, for example, art history’s central concern, we argue that development is an
extraordinarily contested matter. Some of the most common definitions may even be well off the
mark, as they tend to mistake the almost routinely proclaimed goals of development for the
process or practice of development itself (see Cowen/Shenton 1995: 28).

This confusion and uncertainty may partly be put down to the fact that the proto-discipline (if we
see it as such) of Development Studies has had a comparatively short academic history and that
the institutional arrangements which hold together such diverse disciplines as geography and
history have not yet been realized. In these disciplines the divergent views of what constitutes the
subject matter have been resolved by establishing and finally canonizing sub disciplines (thus
even combining social and natural sciences under one disciplinary roof, as in the case of
geography). Development Studies since its inception has been striving for the academic
recognition necessary to become a discipline in its own right and thus to be able to formally
integrate those areas of research that relate to its subject matter (development economics, for
instance, is still regarded rather as development economics than as development economics).
But, first of all, the subject matter itself has to be delineated in a way that convincingly lays the
groundwork for any further exploration.

(2) What and who has influenced you as a researcher?

Several motives lay behind this almost indiscreet inquiry: on the one hand sheer curiosity; on
the other hand we were hoping that the personal trajectories might reveal common patterns
(decisive intellectual inspirations, moves across disciplinary confines or returns from tumultuous
inter-disciplinarily into safe disciplinary harbors, political motives, momentous encounters with
the development business, etc.) as well as a diversity of routes by which to travel into
Development Studies. Moreover, individual experiences might have corresponded to broader
trends in intellectual and political history and thus add some autobiographical color to an
otherwise potentially highly abstract account.

3) What do you consider as the main purpose of development research?

It is a truism that no academic discipline operates in a way that is completely detached from
economic and political interests. And yet, there are significant differences between the
disciplines with regard to how they define their role and their responsibility. Unlike, let us again
say, art history, Development Studies makes particularly strong claims to produce
applicable knowledge geared towards specific aims which can, and in the view of many Scholars
should, be promoted by political and economic actors. This probably also holds true for
development-related research within natural sciences such as tropical medicine and agronomy.
One of the main issues at stake is the relationship between development research and d
evelopment practice. Is it a relationship in which Development Studies is reduced to an ancillary
role or is Development Studies capable of setting its own research agenda and framing its
subject(s) in ways that may even be at odds with the powers that be? Who are the actors to be
equipped with the knowledge necessary to achieve the set goals? And what are these goals?

Perhaps there is also another way of conceiving the role of development research, one that
focuses on the analysis of social transformations but abstains from drawing practical
conclusions. But would that still be development research?

(4) How would you characterize your approach to development research?

What do you regard as the strengths and weaknesses of this approach?

These last two questions were meant to provoke some theoretical and methodological reflection
on how to carry out development research. To think about development research not only
touches upon the question of disciplinarily versus multi- or interdisciplinary, but also on the
appropriate level of analysis. Should we focus our research on the micro or macro level, on local,
regional, national or global processes and structures? Apart from general epistemological
considerations we were interested in the actual research being done and in the level of self-
reflexivity our authors were prepared to disclose. In this respect, we hoped to get a better
understanding of the prevailing mood in which they ply their respective trades. Do they display a
sense of skepticism and insecurity or are they self-assured, sharing the enthusiasm expressed in a
recent book on development research which praises its ‘exciting opportunities’?
(Holland/Cambell 2005: 1)

Having outlined the directions we would have liked our contributors to take, let us have a brief
look at the results. Most of the articles tried to circumvent the ‘confessional mode’, as Henry
Bernstein called our attempts at probing intellectual biographies. Probably this is due to one of
the deeply ingrained habits of academia, the decontextualisation of one’s own research, a sort of
scholarly ‘anxiety of influence’ (Bloom 1973).

Evidently, the authors felt more at ease sketching out the subject matter of development research,
which they link to issues of inequality and poverty in distant parts of the world. At the same time
they stress the problematic nature of the concept, inter alia its Eurocentric implications. But
whereas Aram Ziai underlines the discursive construction of ‘development’, avoids putting
forward a positive definition and suggests bidding farewell to the term, both Bernstein and
Schuurman in similar ways delineate what development is about: ‘the structural causes of the
lack of emancipation of people in the South as well as in transitional economies elsewhere and
the strategies which are employed to solve this lack of emancipation.’ (Schu-urman,2019)
Most of our authors agree that the combination of analysis and strategic intervention towards
normative goals is a central tenet of Development Studies, though they disagree on how to
assess this fact. Their views range from Ziai’s skepticism, which regards traditional development
research

as inextricably enmeshed in relations of power, as thus being a vehicle of domination, to

Lawo’s and Colberg’s optimism about the possibilities of improving development practice by
fostering the links between researchers and practitioners.

A recurring theme is the question of the appropriate disciplinary approaches and how to
combine them. There is almost unanimity that Development Studies does not constitute a
discipline but rather a ‘Field’

(Bernstein) or a closely related, interdisciplinary set of approaches which provides more

cognitive value than the sum of its parts (Schuurman). But Schuurman goes on to argue that the
integration of various disciplines is becoming increasingly precarious, because the role of the
nation state as the common denominator of the main disciplines involved (economics,
sociology, political science) has diminished (or at least has substantially changed). Within
the ‘field’ of Development Studies it is economics which is seen as particularly influential, all
the more so since the ‘economics impech is still western-based (Olukoshi/Nyamnjoh) and that
it (re)produces rigid dichotomies between the ‘West and the rest’, between ‘here’ and ‘over
there’ (Kothari).

The critical stance which characterizes most of the articles in this issue is a rare thing in today’s
Development Studies, as a cursory check of several leading academic journals in the field
reveals. Self-reflection or even self-doubt quite obviously are not the order of the day. On the
rare occasions when methodological questions stand at the forefront, it is participatory research
and context sensitivity which are presented as remedies against the shortcomings of more
structurally-oriented approaches (see, for example, Journal of Development Studies 42/7).
But, in general, the research community seems to have firmly brushed aside the challenges
posed by post-development ideas and is back to normal, instead producing papers on poverty,
on security, failed states and migration, but also on environmental, educational and various
economic topics, from foreign direct investment to information technologies. Even
industrialization has made a comeback (Development and Change 36/6). Indeed, in the case of
many Asian development journals, it has never ceased to be a central issue. Here, development is
still widely equated with raising productivity.

This is not the only instance where it seems that we go round in circles. More than 30 years ago,
Paul Streeten (1974), in a seminal article, asked similar questions and articulated similar
concerns to those being voiced in this issue of Journal für Entwicklungspolitik. He complained
about the fast changing fashions in development research, called upon scholars to transcend
narrow disciplinary confines while at the same time acknowledging the difficulties with
interdisciplinary, rejected the notion that Development Studies was nothing more than the ‘soft
underbelly’ of economics, and addressed the problem of how development knowledge was being
produced, who was financing it and to what extent it was falling prey to ‘intellectual

imperialism’. Streeten’s text is an effective antidote against any exaggerated nostalgia for the
‘good old times’ of Development Studies, but at the same time it is quite sobering to realize how
many of the issues raised by him are still unresolved and how many new items have since been
added to our

intellectual ‘to do’ list.

1.2. What is Development?

For almost every writer presents a different definition of development depending on their
theoretical orientation and methodological . Generally there are three criteria this study finds
better to use in defing the concept of development namely:

i. Evolution of development Studies

ii. Development Dimensions

iii. Development Theories/Philosophy

Evolution Of Development Studies

Development studies as a concept and as a discipline has evolved across time. Likewise, the
meaning and conceptualization of the term development has evolved synchronized to the
evolution of the discipline. There have been a number of perspectives in the evolution bringing
in diverse dimensions in the conceptualization. Generally almost all studies agree that
development is simply a process of multidimensional changes from crude to advanced stage
happening in a specified context. Development can happen naturally and sometimes can be
planned.

NATURAL VS PLANNED DEVELOPMENTS

Natural development is the spontaneous and subconscious process of development that
normally occurs, naturally without planning for it.

Planned development on the other hands is the result of deliberate conscious initiatives but the
government to speed up development through special programs and policies.

Theories of social development is more about planned developments it addresses the reasons for
social underdevelopment the scope of the problem of underdevelopment as well as suggests
ways out of the problem of underdevelopment.
 1. INDICATORS OF DELOPMENT

Since development is a multidimensional, process it is thus difficult to give general indicators

of development except through respective aspects. For example if someone asks you,
whether certain Country is developed or not, you cannot answer that without asking another
question ‘what aspect are you referring to?’. Taking this into consideration we thus discuss
indicators of development into several dimensions. Some of the Dimensions include:

i. Local indicators of development (economic, social, political and cultural indicators)

ii. Indicators of Development based on the level of development (Walter Rodney)

iii. Indicators based on Global development Agenda, At international level development

indicators are further divided into the following subcategories:

a. Human development Indicators/Index (HDI)

b. Gross national Happiness Index

c. Gender Development Index

d. Millennium Development Goals (MDGs)

e. Sustainable Development Goals (SDGs)

1. LOCAL INDICATORS OF DEVELOPMENT

At the National level, if we are to conceptualize development as a multidimensional process,

we cannot refute the fact that, its indicators appears in four main Dimensions as follows:

i. Indicators of economic development

ii. Indicators of Social Development

iii. Indicators of cultural development

iv. Indicators of political development

v.
 A. INDICATORS OF ECONOMIC DEVELOPMENT

Economic growth differs from economic development in the sense that, the former is an
invisible change of the economy which can only be computed and reported in papers while the
later refers to visible change of the economy. Economic growth act as an engine of economic
development. Economy is thus perceived as production and consumption patterns. It is easy
to tell the differences between the two concepts by looking into its respective indicators.

1. Indicators of Economic Growth

i. 5-7% and more, Increase in Gross domestic product (GDP)

ii. 5-7% and more increase of Gross national income(GNI)

iii. 5-7% and more increase of Income per capita

iv. Availability of capital for economic investments

2. Indicators of Economic development

i. Expansion of physical infrastructures-when the Government expand construction of

physical infrastructures such as roads, railways and ports do not necessarily tell us
that there will be development in other aspects but it only indicates that the
government power of purse or income is growing.

ii. Expansion of Social Infrastructures- when the Government expands construction of

social infrastructures such as hospitals, schools and welfare clubs do not
necessarily tell us that there will be development in other aspects but it only
indicates that the government power of purse or income is growing.

iii. Expansion of acquired technology

Globalization has made most states and non state actors to rethink about primary
technological development and opt for international transfer of technology. In the light of this
view many countries thus rely on acquired technology and that does not imply that, a
particular country has failed to develop. However if a country does not expand its technology
acquired from other states it will imply that, a particular country is not developing
economically and vice versa.

iv. Expansion of investments

Local and foreign direct investments should expand to indicate economic development of a
particular country. If such investments does not expand it implies that such country has a
declining capital for investment and thus declining in economy.

v. Expansion of exports of finished goods while that of the raw materials decline

A country which is doing well in economic development will export more finished industrial
products and export less consumer goods. This is because when the economy is developing in
a country, the capability to produce consumer goods tend to increase as well hence import
substitution industries gradually replace exported consumer goods. Such countries tend to
expand the nature of finished industrial exports, from consumer goods to capital goods.
(Mutalemwa, G. 2009)

B. INDICATORS OF POLITICAL DEVELOPMENT

i. Political sovereignty: If the state’s capability to resist external pressure from

affecting local political decisions and operations is high, then that country is said
to be sovereign and thus politically developed

ii. Political autonomy: If the state’s capability to make local political decisions is high
then that country is said to be sovereign and thus politically developed. In this
context a certain country depends on another country not because the country is
pressurized to come for help in political decisions, but the country itself lacks self
confidence in her political decisions thus tend to seek help when they want to
make sensitive political decision at home.

iii. Descent politics:

Descent politics refers to the type of political system and governance which comes from
people’s concern. This does not necessarily mean all that, all country should follow a certain
conversional political system and forms of governance to be labeled ‘descent politics’. Some
countries like US and its partners force other countries all over the world to adopt
conversional political and governance systems such as liberal democracy, and periodic
governance under the claim that, those are forms of descent politics which all countries must
follow. In some countries the west have gone into war with other states claiming that they are
fighting for democracy to help citizens of those countries as we have seen in Iraq,
Afghanistan, Libya and Ivory coast to name a few. In the light of this view no one should
determine what descent politics is because this concept is very subjective in its realistic
terms. However we may accept some general practices suces as freedom of speech, rule of
law, freedom of worship, respect of human rights, Peaceful transition of regimes, governance
by people’s concerns and so on.

C. INDICATORS OF SOCIAL DEVELOPMENT

According to United Development programs (UNDP), in the so called human development

index there are three main indicators of human development namely

i. Longevity: This is the average life people are said to live. The higher the life
expectance the higher the level of social development. For a country to be labeled
socially developed state, life expectance should be more than 50-70 years.(UNDP
1990)

ii. Knowledge: This is the portion of the society which is said to be literate. Literacy rate
is defined as the portion of adults who know how to read and write and the portion
of children at schooling age enrolled in schools. According to Human Development
Index (HDI), if 12/3 of the adult populations know how to read and write and if
1/3 of children at schooling age are enrolled in schools then such a society or
state is said to be literate, thus socially developed.

iii. Life standards: Refers to the income earned adjusted to its purchasing power parity
(PPP). Life standard is not about how much income individuals earn but how many
basic needs which forms standard life they can purchase. For example what one
can buy with US$ 10,000 in Tanzania may not necessarily buy the same in another
country. Sometimes a small income buys more than what a huge income can buy
in another country. This is to say, if we look into peoples’ incomes and earnings we
 to determine which country provide standard life we may be mislead. The best way
is thus to look into whether people afford basic needs or not. Basic needs can
include food, cloth, shelter, clean and safe water, security, peace of micnd,
medication, education and so on.

D. INDICATORS OF CULTURAL DEVELOPMENT

i. Ability of the individuals or the country to retain its cultural identity-despite

cultural dynamism, the higher the ability of the individual, community or state
to maintain their cultural identities, the higher the level of cultural
development.

ii. The Value people put in their local products-local products such as language,
manufactured items, and food staffs and so on represent the culture of the
particular country. The higher the value a country puts in local products the
higher the level of cultural development

iii. Ownership of technology-home grown technology summarizes the culture of the

particular country. Among other things crafts is said to be an integral part of
the cultural development of a certain country after traditions, customs and
arts. In other words if you look into some ones crafts (technology you can
easily see the summary of the tradition, customs, and arts of the particular
community.

iv. Priority a particular country put in the national language: if a country choose
one of the popular native language to be national language and give it the first
priority in official usage then that country is culturally developed.

2. INDICATORS BASED ON THE LEVEL OF DEVELOPMENT

Some Scholars argue that, Indicators of development can be categorized into two levels of
development:

i) Indicators of individual development according to Walter Rodney 1976:9

 a) Increase in skills and capacity of individuals in interacting with nature.

b) Greater freedom of an individual-an individual should be as free as possible to opt life

style.

c) Creative- an individual should be as creative to improve as possible. i.e. designing

things and ideas to improve one self.

d) Self discipline an individual should be well mannered thus relating positively to rest of
individuals.

e) Responsibility – An individual should be as responsible as possible i.e. Hard worker,

caring, fulfillment of duties and social expectation.

f) Material well being – An individual should afford material basic need such as food,
shelter and cloth.

Food- 3 meals/Balance diet

Shelter – A modern house

Cloth – Afford ware as descent as possible

ii) Indicators of social development/social indicators of development

a) Improvement of social structures eg. Schools, hospitals, etc.

b) Reduction of inequality among people in the society – Narrow gap between the
rich and poor.

c) Eradication of social poverty. Eg. What does majority earn and spend per day?,
What life standard do they live.

d) The degree of social literacy-how many in the society are literate and how many
are not (Knowledge).

e) High life expectancy.

3. INDICATORS BASED ON GLOBAL DEVELOPMENT AGENDA

i. Human Development Indicators

a. What is human development?

According to professor Porsoy, J. 2004, Human development refers to development of the

people, for the people and by the people. According to him it is of the people because puts
human welfare at the center, it is for the people because it meant to serve people and it is by
the people because is brought by human beings’ work.

UNDP 1990 put in Human development as the one which leads into improvement in human
life. It should transform many aspects of human life leading to individual and social welfare.
The UNDP in various reports including that of 1990 has suggested that any improvement that
does not improve human being is not development of the economy hence use of the term
Human development can to mean improvements from crude to sophisticated level that put a
human being at the centre.

4. Indicators of human development

Indicators of development can be viewed in two main perspectives namely;

i) Traditional view

ii) Contemporary view.

1. TRADITIONAL VIEW

Traditionally development is measured by the following indices:

a) Gross national income (GNI)

b) Income per capital

According to this view, if the Gross national income is between 5% and 7% or more and if
there is growth of income per capital, it is considered that there is development of the people.
Conditions given under this view are;
 a) The Nation should have ability to expand its output at a rate faster than the growth
rate of its population. Development of the people = Real or monetary growth of gross
national income (GNI) Minus the rate of inflation

i.e

DP = GNI – Inflation rate

b) Planned alteration of production and unemployment so that agriculture share declines

and that of manufacturing and service sector increases. Looking into how much
industrialized the country is you can easily estimate the gross national income and per
capital income of the particular country. In most cases fully industrialized economies
suggests stable economic growth thus stable human development.

CRITIQUE

1) Such indicators are unrealistic because Cross national income (GNI) and income per
capital is meant to measure growth of the economy and not human development.

2) Over emphasizes growth of income at a national level there by ignoring important

indicators of human development such as the level of poverty, discrimination, the rate
of mass un employment, life expectancy, knowledge level of majority and income
distribution.

3) Traditional view is based on wrong assumptions because assumes that people of all
classes get the same income per annum where as in reality people’s income tend to
vary greatly even when they are of the same organization or and occupation.

e.g 200GNI in Ts = 10IC in Ts

20P

Where GNI=Gross national income

P =population size

IC=Income per capital

 Ts=Tanzanian shilli8ngs

From the example above in a city of 20 people with a gross national income of 200shillings
resulting into a computed income per capita of 10shillings.Based on the assumption behind
the computation each person in that village by average contributed 10 shillings to the
national consolidated fund basket and thus got an average income of more than 10 shillings
per annum. Such income per capital cannot explain the income which each person got in that
town because there might be diversity in income levels, some have jobs while some are
jobless such as children, and over old people whose income depends on other people .

2. CONTEMPORARY OR MODERN INDICATORS OF HUMAN DEVELOPMENT

According to United Nations development programmed is (UNDP) human development index

(HDI) in it human development reports form 1990 there are many indicators of human
development some of them are:

i) Knowledge: Measured by the weight average of adult’s literacy and number of children
enrolled at schooling age. If 2/3 of adults know how to read and write and 1/3 of
children at schooling age are enrolled in schools implies a significant level of
human development in the particular community.

ii) Standard of living: It is measured by real per capital income adjusted frorn the differing
purchasing power parity of each country currency to reflect cost of living and for
the assumption of diminishing marginal utility of income.

iii) Longevity: measured by life expectancy from birth. If average life span of majority in
the community is above 50 to 70 years then such community commands a
significant level of human development. High life expectancy suggest presence of
affordable health care technologies and other basic needs of quality life of human
beings.

II. INDICATORS BASED ON MI LLENIUM DEVELOPMENT GOALS (MDGs)

These are indicators of human poverty developed by G20 as targets of how the quality of
human beings should be by 2015. In other words these targets indicate presence or absence
of human development. Include:

1. GOAL 1: ERADICATION OF EXTREME POVERTY AND HUNGER

There are several targets set as parameters to be used measuring the attainment of this goal:

a. Target 1a: Reduce by half the proportion of people living on less than a dollar a day : Many
Nations have worked so hard to meet this target before 2015 but instability in the world
economic order in the form of financial and economic crises have made meeting this
target a more tedious job. In countries where it has been possible to hit the target

b. Target 1b: Achieve full and productive employment and decent work for all, including
women and young people. Many countries in the developing world have tried their best to
meet this target as a result there are more jobs to women and youth than before. However
youth unemployment in general terms is still a big challenge which may escalate into a
political tumor and social unrest in many developing countries.

c. Target 1c: Reduce by half the proportion of people who suffer from hunger. Despite huge
effort by many developing countries to half the hunger stricken population by 2015, hunger
has been reported to rise over the recent years due to global warming and climatic change
and weather uncertainties.

2. ACHIEVE UNIVERSAL PRIMARY EDUCATION

Target 2a: Ensure that all boys and girls complete a full course of primary schooling

In practice Poor children are less likely to attend school as are children in rural areas, children
from ethnic and linguistic minorities, children with disabilities, and children affected by armed
conflicts Institutional problems prevent children who do attend school from learning:
(International comparable assessments of learning achievement in math, reading, and science
show that most developing countries rank far below OECD (Organization of Economic Co-
operation and Development) countries. Countries with weak education system can learn from
developing countries that have made progress.
3. GENDER EQUALITY-promotes gender equality and empowers women. UNDP's aim is to
eliminate gender disparity in primary and secondary education, preferably by 2005, and in
all levels of education no later than 2015. Four indicators are used to measure progress
towards the goal:

a. the ratio of girls to boys in primary, secondary and tertiary education;

b. the ratio of literate women to men in the 15- to 24-year-old age group;

c. the share of women in wage employment in the non-agricultural sector; and

d. The proportion of seats held by women in national parliaments. (30% share of seats for
women in national parliaments)

Additional Indicators include Violence against women & domestic violence, Economic
indicators such as gender gaps in earnings. In most developing countries including Tanzania
these indicators suggest that such countries may not likely meet their targets by 2015 unless
more effort is put to change the existing situation.

4. REDUCE CHILD MORTALITY

Target 4a: Reduce by two thirds the mortality rate among children under five

In many developing countries they have done a reasonably big effort to reduce child mortality
at birth although they still have a long way to go before they can meet the this target,
however less have been done on the under five child mortality rate mainly occurring due to
infectious diseases and underfeeding or improper feeding. As figure 1 suggest it obvious that
breastfeeding from animals which seems to be a common practice in developing countries put
lives of million children vulnerable to diseases such as tuberculosis which is still a big threat
in the particular countries. Poverty preys on the vulnerable and defenseless families taking
lives of many children. For example in most developing countries 1 out of 10 children dies
before the age of five, where as in wealthier countries, this number is only, 1 out of 143
children. Richer countries have made health a human rights issue and thus have succeeded in
Creating functioning health system.

5. IMPROVE MATERNAL HEALTH

The first target is to reduce maternal death by three quarters the maternal mortality ratio by
2015. Maternal mortality, child mortality & family planning are related issues and have close
causal relationships. There are many cases where you find pregnant females die while giving
birth as well as the infant, in some instances mothers die while children survive. Researches
show that poor family planning, poor medical technology and poverty are major causes of high
1
maternal death as well as child mortality rate in developing countries.

th
The second target under the 5 goal is to achieve, by 2015, universal access to reproductive
health. Most poor countries still have a long way to go before they can meet this target thus
it is hard to believe that they will meet it by 2015. Researches shows that more than 40% of
pregnant women cannot access reproductive health education while more than 30%can not
access reproductive health centers while giving birth suggesting that universal reproductive
target is still far away to be realized.

6. COMBAT HIV/AIDS, MALARIA & OTHER DISEAS

Halt and begin to reverse the spread of Human immune virus HIV/AID and Achieve, by 2010,
universal access to treatment for HIV/AIDS for all those who need it is the major target under
the sixth goal. The second target is to achieve, by 2010, universal access to treatment for
HIV/AIDS for all those who need it. In most developing countries it has been so difficult to halt
spread of HIV/AIDs even after 2010 which was supposed to be the timing of the target.
HIV/AIDs new infections have been in the rise despite massive campaigns to economize in
the so called safe sexing abstain from sex and engage in a relationship with one safe and
faithful sexual partner. However it is encouraging to realize that the level of awareness on the
HIV/AIDS have increased in both urban and rural areas and stigma to the victims have
declined substantially in post 2010 period than before. Most governments have made medical
facilities accessible and affordable while in some countries HIV/AIDS medical facilities are
offered free of charge.

Another target under the sixth goal is to halt and begin to reverse the incidence of malaria and
other major disease. World Health Organization (WHO) indicates that a 1/3 of the world

1
population lacks access to the most basic essential medicines. On the aggregate, the world has
the financial means to provide basic medicine to everybody, but the means are not even
distributed. This imply that developing countries still have a long way to go before they can
successfully meet this target thus they will need more time beyond 2015.

In tropical countries malaria is still a big threat to many lives and the economies of particular
countries. In many countries they have tried to give health awareness campaigns, subsidized
medical facilities and some have gone a further step to provide free of charge mosquito nets to
pregnant women and children while others have provided them to the entire vulnerable
population.

7. ENSURE ENVIRONMENTAL SUSTAINABILITY

Following globalization there has been a very big interconnectedness between states and non
state actors of the international system hence massive exploitation of the environment for
resources and habitation. The globe has experienced massive destruction of environment over
th
20 century and thus global warming, rise in sea level, depletion of ozone layer and pollution
of clean and safe water to mention a few impacts over the 21 century. The international
system is now forced to place environmental conservation and preservation as one of those
common goods hence a millennium development goal. In this goal the focus is developed and
developing countries should focus into environmental friendly development strategies to save
the future of the globe. The targets set under this goal include; firstly to well known as
sustainable development integrate the principles of sustainable development into country
policies and programmes; reverse loss of environmental resources, secondly to reduce
biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss, thirdly reduce
by half the proportion of people without sustainable access to safe drinking water and basic
sanitation and lastly achieve significant improvement in lives of at least 100 million slum
dwellers, by 2020.

8. DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT

Development of information technology (IT), there has been interconnectedness of all

countries in international diplomacy, politics, production through foreign direct investments
(FDIs), international trade, international security and other areas considered as common
goods. The Global forces have grown to the extent that no single country can survive outside
th
globalization. Millennium development agenda sought to make this the 8 goal with the
following targets to be met by 2015. Firstly to develop further an open, rule-based, predictable,
non-discriminatory trading and financial system secondly to address the special needs of the
least developed countries, and lastly to address the special needs of landlocked developing
countries and small island developing States (through the Programme of Action for the
Sustainable Development of Small Island Developing States and the outcome of the twenty-
second special session of the General Assembly). (as 2008, there are 44 countries that are
landlocked countries, that is, enclosed or nearly enclosed by land)

THE LINK BETWEEN ECONOMIC GROWTH & DEVELOPMENT

R. M, Sandrum 1984: 77-79 puts in growth as increase in national income.

According to him development differs from growth in the sense that growth is measured by
the rate of increase of national income while development is about how such income is
distributed among individuals in a particular society or state; Economic growth therefore
refers to growth of per capital income R.M Sandrum (1984-14-15)

According to Todaro, M and Smith; S (2006) Economic growth refers to the increase in
national income items of Gross national income (GNI) and income per capital.

To daro M and Smith, S.2006 thus shares a similar stand with Sandrum (1984) that
development is not the same as growth because development index is of more than Gross
national income and income per capital. Development is broader because it includes income
growth and how such income is distributed among individuals.

• How is economic growth linked to development?

Although growth is not the same as development they are linked to each other in the sense
that there is no development without economic growth although not necessary the opposite
to be true. How!

1. Increase in Gross national product and income per capital in the country will be lead
to human development if that has a good developed policy. The policy that makes sure
that there is as little inequality in income distribution as possible.
Sandrum, R.1984; 70 for example in support with above argument argues that using the
national income the government can expand education, infrastructure and improve
economic institutions so that these facilities are available to all members of the society and
there are able to access. Todaro M, and Smith, S. 2006 adds by arguing that National income if
well distributed will improve human life interims of health service, education, water supply,
food, cloth, shelter and other social necessities.

According to R. Sandrum (1984), three arguments are true about the link between economic
growth and human development:

1. Economic growth is vital and thus compulsory for development and human
development

2. Although economic growth is vital, it is not self sufficient.

3. Economic growth does not guarantee human development

4. The link between economic growth and human development is conditional. In other
words; for the economic growth to result into human development the following
conditions must be met:

a. Good policy: A good policy is the one which balance between accumulation and
redistribution functions of the government expenditures

b. Political will: The government and the public in general must be committed to
implement the policies in place

c. Effective monitoring and control mechanisms: When resources are allocated to

implement a certain good policy there should be effective monitoring and control
mechanisms to avoid diversion or misuse of resources thus delaying public welfare.

III. SUSTAINABLE DEVELOPMENT GOALS (SDGs)

TRANSFORMING OUR WORLD: THE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT

This Agenda is a plan of action for people, planet and prosperity. It also seeks to strengthen
universal peace in larger freedom. We recognise that eradicating poverty in all its forms and
dimensions, including extreme poverty, is the greatest global challenge and an indispensable
requirement for sustainable development. All countries and all stakeholders, acting in
collaborative partnership, will implement this plan. We are resolved to free the human race
from the tyranny of poverty and want and to heal and secure our planet. We are determined to
take the bold and transformative steps which are urgently needed to shift the world onto a
sustainable and resilient path. As we embark on this collective journey, we pledge that no one
will be left behind. The 17 Sustainable Development Goals and 169 targets which we are
announcing today demonstrate the scale and ambition of this new universal Agenda. They
seek to build on the Millennium Development Goals and complete what these did not
achieve. They seek to realize the human rights of all and to achieve gender equality and the
empowerment of all women and girls. They are integrated and indivisible and balance the
three dimensions of sustainable development: the economic, social and environmental.

Sustainable Development Goals

• Goal 1. End poverty in all its forms everywhere

• Goal 2. End hunger, achieve food security and improved nutrition and promote
sustainable agriculture

• Goal 3. Ensure healthy lives and promote well-being for all at all ages

• Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all

• Goal 5. Achieve gender equality and empower all women and girls

• Goal 6. Ensure availability and sustainable management of water and sanitation for all

• Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all

• Goal 8. Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all

• Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization

and foster innovation
• Goal 10. Reduce inequality within and among countries

• Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable

• Goal 12. Ensure sustainable consumption and production patterns

• Goal 13. Take urgent action to combat climate change and its impacts*

• Goal 14. Conserve and sustainably use the oceans, seas and marine resources for
sustainable development

• Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land
degradation and halt biodiversity loss

• Goal 16. Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable and inclusive institutions at all
levels

• Goal 17. Strengthen the means of implementation and revitalize the global partnership
for sustainable development

* Acknowledging that the United Nations Framework Convention on Climate Change is the
primary international, intergovernmental forum for negotiating the global response to climate
change.

Goal 1. End poverty in all its forms everywhere

1.1. By 2030, eradicate extreme poverty for all people everywhere, currently measured as
people living on less than $1.25 a day

1.2.1.2 By 2030, reduce at least by half the proportion of men, women and children of all
ages living in poverty in all its dimensions according to national definitions

1.3. Implement nationally appropriate social protection systems and measures for all,
including floors, and by 2030 achieve substantial coverage of the poor and the
vulnerable
 1.4. By 2030, ensure that all men and women, in particular the poor and the vulnerable,
have equal rights to economic resources, as well as access to basic services, ownership
and control over land and other forms of property, inheritance, natural resources,
appropriate new technology and financial services, including microfinance

1.5.By 2030, build the resilience of the poor and those in vulnerable situations and reduce
their exposure and vulnerability to climate-related extreme events and other
economic, social and environmental shocks and disasters
1.a Ensure significant mobilization of resources from a variety of sources, including
through enhanced development cooperation, in order to provide adequate and
predictable means for developing countries, in particular least developed countries, to
implement programmes and policies to end poverty in all its dimensions
1.b Create sound policy frameworks at the national, regional and international levels,
based on pro-poor and gender-sensitive development strategies, to support
accelerated investment in poverty eradication actions

Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable
agriculture

2.1 By 2030, end hunger and ensure access by all people, in particular the poor and people in
vulnerable situations, including infants, to safe, nutritious and sufficient food all year round
2.2 By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally
agreed targets on stunting and wasting in children under 5 years of age, and address the
nutritional needs of adolescent girls, pregnant and lactating women and older persons
2.3 By 2030, double the agricultural productivity and incomes of small-scale food producers,
in particular women, indigenous peoples, family farmers, pastoralists and fishers, including
through secure and equal access to land, other productive resources and inputs, knowledge,
financial services, markets and opportunities for value addition and non-farm employment
2.4 By 2030, ensure sustainable food production systems and implement resilient agricultural
practices that increase productivity and production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and
other disasters and that progressively improve land and soil quality
2.5 By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and
domesticated animals and their related wild species, including through soundly managed and
diversified seed and plant banks at the national, regional and international levels, and
promote access to and fair and equitable sharing of benefits arising from the utilization of
genetic resources and associated traditional knowledge, as internationally agreed
2.a Increase investment, including through enhanced international cooperation, in rural
infrastructure, agricultural research and extension services, technology development and
plant and livestock gene banks in order to enhance agricultural productive capacity in
developing countries, in particular least developed countries
2.b Correct and prevent trade restrictions and distortions in world agricultural markets,
including through the parallel elimination of all forms of agricultural export subsidies and all
export measures with equivalent effect, in accordance with the mandate of the Doha
Development Round
2.c Adopt measures to ensure the proper functioning of food commodity markets and their
derivatives and facilitate timely access to market information, including on food reserves, in
order to help limit extreme food price volatility

Goal 3. Ensure healthy lives and promote well-being for all at all ages

3.1 By 2030, reduce the global maternal mortality ratio to less than 70 per 100,000 live births
3.2 By 2030, end preventable deaths of newborns and children under 5 years of age, with all
countries aiming to reduce neonatal mortality to at least as low as 12 per 1,000 live births and
under-5 mortality to at least as low as 25 per 1,000 live births
3.3 By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases
and combat hepatitis, water-borne diseases and other communicable diseases
3.4 By 2030, reduce by one third premature mortality from non-communicable diseases
through prevention and treatment and promote mental health and well-being
3.5 Strengthen the prevention and treatment of substance abuse, including narcotic drug
abuse and harmful use of alcohol
3.6 By 2020, halve the number of global deaths and injuries from road traffic accidents
3.7 By 2030, ensure universal access to sexual and reproductive health-care services, including
for family planning, information and education, and the integration of reproductive health
into national strategies and programmes
3.8 Achieve universal health coverage, including financial risk protection, access to quality
essential health-care services and access to safe, effective, quality and affordable essential
medicines and vaccines for all
3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous
chemicals and air, water and soil pollution and contamination
3.a Strengthen the implementation of the World Health Organization Framework Convention
on Tobacco Control in all countries, as appropriate
3.b Support the research and development of vaccines and medicines for the communicable
and non-communicable diseases that primarily affect developing countries, provide access to
affordable essential medicines and vaccines, in accordance with the Doha Declaration on the
TRIPS Agreement and Public Health, which affirms the right of developing countries to use to
the full the provisions in the Agreement on Trade-Related Aspects of Intellectual Property
Rights regarding flexibilities to protect public health, and, in particular, provide access to
medicines for all
3.c Substantially increase health financing and the recruitment, development, training and
retention of the health workforce in developing countries, especially in least developed
countries and small island developing States
3.d Strengthen the capacity of all countries, in particular developing countries, for early
warning, risk reduction and management of national and global health risks

Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all

4.1 By 2030, ensure that all girls and boys complete free, equitable and quality primary and
secondary education leading to relevant and effective learning outcomes
4.2 By 2030, ensure that all girls and boys have access to quality early childhood development,
care and pre-primary education so that they are ready for primary education
4.3 By 2030, ensure equal access for all women and men to affordable and quality technical,
vocational and tertiary education, including university
4.4 By 2030, substantially increase the number of youth and adults who have relevant skills,
including technical and vocational skills, for employment, decent jobs and entrepreneurship
4.5 By 2030, eliminate gender disparities in education and ensure equal access to all levels of
education and vocational training for the vulnerable, including persons with disabilities,
indigenous peoples and children in vulnerable situations
4.6 By 2030, ensure that all youth and a substantial proportion of adults, both men and
women, achieve literacy and numeracy
4.7 By 2030, ensure that all learners acquire the knowledge and skills needed to promote
sustainable development, including, among others, through education for sustainable
development and sustainable lifestyles, human rights, gender equality, promotion of a culture
of peace and non-violence, global citizenship and appreciation of cultural diversity and of
culture’s contribution to sustainable development
4.a Build and upgrade education facilities that are child, disability and gender sensitive and
provide safe, non-violent, inclusive and effective learning environments for all
4.b By 2020, substantially expand globally the number of scholarships available to developing
countries, in particular least developed countries, small island developing States and African
countries, for enrolment in higher education, including vocational training and information
and communications technology, technical, engineering and scientific programmes, in
developed countries and other developing countries
4.c By 2030, substantially increase the supply of qualified teachers, including through
international cooperation for teacher training in developing countries, especially least
developed countries and small island developing States

Figure 2: SDGs Implementation on gender equality in education as taken from one of the
African Countries in 2019.
Goal 5. Achieve gender equality and empower all women and girls

5.1 End all forms of discrimination against all women and girls everywhere
5.2 Eliminate all forms of violence against all women and girls in the public and private
spheres, including trafficking and sexual and other types of exploitation
5.3 Eliminate all harmful practices, such as child, early and forced marriage and female genital
mutilation
5.4 Recognize and value unpaid care and domestic work through the provision of public
services, infrastructure and social protection policies and the promotion of shared
responsibility within the household and the family as nationally appropriate
5.5 Ensure women’s full and effective participation and equal opportunities for leadership at
all levels of decision-making in political, economic and public life
5.6 Ensure universal access to sexual and reproductive health and reproductive rights as
agreed in accordance with the Programme of Action of the International Conference on
Population and Development and the Beijing Platform for Action and the outcome
documents of their review conferences
5.a Undertake reforms to give women equal rights to economic resources, as well as access to
ownership and control over land and other forms of property, financial services, inheritance
and natural resources, in accordance with national laws
5.b Enhance the use of enabling technology, in particular information and communications
technology, to promote the empowerment of women
5.c Adopt and strengthen sound policies and enforceable legislation for the promotion of
gender equality and the empowerment of all women and girls at all levels

Goal 6. Ensure availability and sustainable management of water and sanitation for all

6.1 By 2030, achieve universal and equitable access to safe and affordable drinking water for
all
6.2 By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end
open defecation, paying special attention to the needs of women and girls and those in
vulnerable situations
6.3 By 2030, improve water quality by reducing pollution, eliminating dumping and
minimizing release of hazardous chemicals and materials, halving the proportion of untreated
wastewater and substantially increasing recycling and safe reuse globally
6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure
sustainable withdrawals and supply of freshwater to address water scarcity and substantially
reduce the number of people suffering from water scarcity
6.5 By 2030, implement integrated water resources management at all levels, including
through transboundary cooperation as appropriate
6.6 By 2020, protect and restore water-related ecosystems, including mountains, forests,
wetlands, rivers, aquifers and lakes
6.a By 2030, expand international cooperation and capacity-building support to developing
countries in water- and sanitation-related activities and programmes, including water
harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse
technologies
6.b Support and strengthen the participation of local communities in improving water and
sanitation management

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all

7.1 By 2030, ensure universal access to affordable, reliable and modern energy services
7.2 By 2030, increase substantially the share of renewable energy in the global energy mix
7.3 By 2030, double the global rate of improvement in energy efficiency
7.a By 2030, enhance international cooperation to facilitate access to clean energy research
and technology, including renewable energy, energy efficiency and advanced and cleaner
fossil-fuel technology, and promote investment in energy infrastructure and clean energy
technology
7.b By 2030, expand infrastructure and upgrade technology for supplying modern and
sustainable energy services for all in developing countries, in particular least developed
countries, small island developing States, and land-locked developing countries, in
accordance with their respective programmes of support

Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all

8.1 Sustain per capita economic growth in accordance with national circumstances and, in
particular, at least 7 per cent gross domestic product growth per annum in the least developed
countries
8.2 Achieve higher levels of economic productivity through diversification, technological
upgrading and innovation, including through a focus on high-value added and labour-
intensive sectors
8.3 Promote development-oriented policies that support productive activities, decent job
creation, entrepreneurship, creativity and innovation, and encourage the formalization and
growth of micro-, small- and medium-sized enterprises, including through access to financial
services
8.4 Improve progressively, through 2030, global resource efficiency in consumption and
production and endeavour to decouple economic growth from environmental degradation, in
accordance with the 10-year framework of programmes on sustainable consumption and
production, with developed countries taking the lead
8.5 By 2030, achieve full and productive employment and decent work for all women and
men, including for young people and persons with disabilities, and equal pay for work of
equal value
8.6 By 2020, substantially reduce the proportion of youth not in employment, education or
training
8.7 Take immediate and effective measures to eradicate forced labour, end modern slavery
and human trafficking and secure the prohibition and elimination of the worst forms of child
labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its
forms
8.8 Protect labour rights and promote safe and secure working environments for all workers,
including migrant workers, in particular women migrants, and those in precarious
employment
8.9 By 2030, devise and implement policies to promote sustainable tourism that creates jobs
and promotes local culture and products
8.10 Strengthen the capacity of domestic financial institutions to encourage and expand
access to banking, insurance and financial services for all
8.a Increase Aid for Trade support for developing countries, in particular least developed
countries, including through the Enhanced Integrated Framework for Trade-Related
Technical Assistance to Least Developed Countries
8.b By 2020, develop and operationalize a global strategy for youth employment and
implement the Global Jobs Pact of the International Labour Organization

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and
foster innovation

9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and
transborder infrastructure, to support economic development and human well-being, with a
focus on affordable and equitable access for all
9.2 Promote inclusive and sustainable industrialization and, by 2030, significantly raise
industry’s share of employment and gross domestic product, in line with national
circumstances, and double its share in least developed countries
9.3 Increase the access of small-scale industrial and other enterprises, in particular in
developing countries, to financial services, including affordable credit, and their integration
into value chains and markets
9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with
increased resource-use efficiency and greater adoption of clean and environmentally sound
technologies and industrial processes, with all countries taking action in accordance with
their respective capabilities
9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in
all countries, in particular developing countries, including, by 2030, encouraging innovation
and substantially increasing the number of research and development workers per 1 million
people and public and private research and development spending
9.a Facilitate sustainable and resilient infrastructure development in developing countries
through enhanced financial, technological and technical support to African countries, least
developed countries, landlocked developing countries and small island developing States
9.b Support domestic technology development, research and innovation in developing
countries, including by ensuring a conducive policy environment for, inter alia, industrial
diversification and value addition to commodities
9.c Significantly increase access to information and communications technology and strive to
provide universal and affordable access to the Internet in least developed countries by 2020

Goal 10. Reduce inequality within and among countries

10.1 By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of
the population at a rate higher than the national average
10.2 By 2030, empower and promote the social, economic and political inclusion of all,
irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating
discriminatory laws, policies and practices and promoting appropriate legislation, policies
and action in this regard
10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively
achieve greater equality
10.5 Improve the regulation and monitoring of global financial markets and institutions and
strengthen the implementation of such regulations
10.6 Ensure enhanced representation and voice for developing countries in decision-making
in global international economic and financial institutions in order to deliver more effective,
credible, accountable and legitimate institutions
10.7 Facilitate orderly, safe, regular and responsible migration and mobility of people,
including through the implementation of planned and well-managed migration policies
10.a Implement the principle of special and differential treatment for developing countries, in
particular least developed countries, in accordance with World Trade Organization
agreements
10.b Encourage official development assistance and financial flows, including foreign direct
investment, to States where the need is greatest, in particular least developed countries,
African countries, small island developing States and landlocked developing countries, in
accordance with their national plans and programmes
10.c By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and
eliminate remittance corridors with costs higher than 5 per cent

Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable

11.1 By 2030, ensure access for all to adequate, safe and affordable housing and basic services
and upgrade slums
11.2 By 2030, provide access to safe, affordable, accessible and sustainable transport systems
for all, improving road safety, notably by expanding public transport, with special attention to
the needs of those in vulnerable situations, women, children, persons with disabilities and
older persons
11.3 By 2030, enhance inclusive and sustainable urbanization and capacity for participatory,
integrated and sustainable human settlement planning and management in all countries
11.4 Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
11.5 By 2030, significantly reduce the number of deaths and the number of people affected
and substantially decrease the direct economic losses relative to global gross domestic
product caused by disasters, including water-related disasters, with a focus on protecting the
poor and people in vulnerable situations
11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by
paying special attention to air quality and municipal and other waste management
11.7 By 2030, provide universal access to safe, inclusive and accessible, green and public
spaces, in particular for women and children, older persons and persons with disabilities
11.a Support positive economic, social and environmental links between urban, peri-urban
and rural areas by strengthening national and regional development planning
11.b By 2020, substantially increase the number of cities and human settlements adopting and
implementing integrated policies and plans towards inclusion, resource efficiency, mitigation
and adaptation to climate change, resilience to disasters, and develop and implement, in line
with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk
management at all levels
11.c Support least developed countries, including through financial and technical assistance,
in building sustainable and resilient buildings utilizing local materials
Goal 12. Ensure sustainable consumption and production patterns

12.1 Implement the 10-year framework of programmes on sustainable consumption and

production, all countries taking action, with developed countries taking the lead, taking into
account the development and capabilities of developing countries
12.2 By 2030, achieve the sustainable management and efficient use of natural resources
12.3 By 2030, halve per capita global food waste at the retail and consumer levels and reduce
food losses along production and supply chains, including post-harvest losses
12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes
throughout their life cycle, in accordance with agreed international frameworks, and
significantly reduce their release to air, water and soil in order to minimize their adverse
impacts on human health and the environment
12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling
and reuse
12.6 Encourage companies, especially large and transnational companies, to adopt
sustainable practices and to integrate sustainability information into their reporting cycle
12.7 Promote public procurement practices that are sustainable, in accordance with national
policies and priorities
12.8 By 2030, ensure that people everywhere have the relevant information and awareness for
sustainable development and lifestyles in harmony with nature
12.a Support developing countries to strengthen their scientific and technological capacity to
move towards more sustainable patterns of consumption and production
12.b Develop and implement tools to monitor sustainable development impacts for
sustainable tourism that creates jobs and promotes local culture and products
12.c Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption by
removing market distortions, in accordance with national circumstances, including by
restructuring taxation and phasing out those harmful subsidies, where they exist, to reflect
their environmental impacts, taking fully into account the specific needs and conditions of
developing countries and minimizing the possible adverse impacts on their development in a
manner that protects the poor and the affected communities

Goal 13. Take urgent action to combat climate change and its impacts*
13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural
disasters in all countries
13.2 Integrate climate change measures into national policies, strategies and planning
13.3 Improve education, awareness-raising and human and institutional capacity on climate
change mitigation, adaptation, impact reduction and early warning
13.a Implement the commitment undertaken by developed-country parties to the United
Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion
annually by 2020 from all sources to address the needs of developing countries in the context
of meaningful mitigation actions and transparency on implementation and fully
operationalize the Green Climate Fund through its capitalization as soon as possible
13.b Promote mechanisms for raising capacity for effective climate change-related planning
and management in least developed countries and small island developing States, including
focusing on women, youth and local and marginalized communities

* Acknowledging that the United Nations Framework Convention on Climate Change is the
primary international, intergovernmental forum for negotiating the global response to climate
change.

Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable
development

14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from
land-based activities, including marine debris and nutrient pollution
14.2 By 2020, sustainably manage and protect marine and coastal ecosystems to avoid
significant adverse impacts, including by strengthening their resilience, and take action for
their restoration in order to achieve healthy and productive oceans
14.3 Minimize and address the impacts of ocean acidification, including through enhanced
scientific cooperation at all levels
14.4 By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and
unregulated fishing and destructive fishing practices and implement science-based
management plans, in order to restore fish stocks in the shortest time feasible, at least to levels
that can produce maximum sustainable yield as determined by their biological characteristics
14.5 By 2020, conserve at least 10 per cent of coastal and marine areas, consistent with
national and international law and based on the best available scientific information
14.6 By 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity
and overfishing, eliminate subsidies that contribute to illegal, unreported and unregulated
fishing and refrain from introducing new such subsidies, recognizing that appropriate and
effective special and differential treatment for developing and least developed countries
should be an integral part of the World Trade Organization fisheries subsidies negotiation
14.7 By 2030, increase the economic benefits to Small Island developing States and least
developed countries from the sustainable use of marine resources, including through
sustainable management of fisheries, aquaculture and tourism
14.a Increase scientific knowledge, develop research capacity and transfer marine technology,
taking into account the Intergovernmental Oceanographic Commission Criteria and
Guidelines on the Transfer of Marine Technology, in order to improve ocean health and to
enhance the contribution of marine biodiversity to the development of developing countries,
in particular small island developing States and least developed countries
14.b Provide access for small-scale artisanal fishers to marine resources and markets
14.c Enhance the conservation and sustainable use of oceans and their resources by
implementing international law as reflected in UNCLOS, which provides the legal framework
for the conservation and sustainable use of oceans and their resources, as recalled in
paragraph 158 of The Future We Want

Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably
manage forests, combat desertification, and halt and reverse land degradation and halt
biodiversity loss

15.1 By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland
freshwater ecosystems and their services, in particular forests, wetlands, mountains and
drylands, in line with obligations under international agreements
15.2 By 2020, promote the implementation of sustainable management of all types of forests,
halt deforestation, restore degraded forests and substantially increase afforestation and
reforestation globally
15.3 By 2030, combat desertification, restore degraded land and soil, including land affected
by desertification, drought and floods, and strive to achieve a land degradation-neutral world
15.4 By 2030, ensure the conservation of mountain ecosystems, including their biodiversity, in
order to enhance their capacity to provide benefits that are essential for sustainable
development
15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the
loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species
15.6 Promote fair and equitable sharing of the benefits arising from the utilization of genetic
resources and promote appropriate access to such resources, as internationally agreed
15.7 Take urgent action to end poaching and trafficking of protected species of flora and fauna
and address both demand and supply of illegal wildlife products
15.8 By 2020, introduce measures to prevent the introduction and significantly reduce the
impact of invasive alien species on land and water ecosystems and control or eradicate the
priority species
15.9 By 2020, integrate ecosystem and biodiversity values into national and local planning,
development processes, poverty reduction strategies and accounts
15.a Mobilize and significantly increase financial resources from all sources to conserve and
sustainably use biodiversity and ecosystems
15.b Mobilize significant resources from all sources and at all levels to finance sustainable
forest management and provide adequate incentives to developing countries to advance such
management, including for conservation and reforestation
15.c Enhance global support for efforts to combat poaching and trafficking of protected
species, including by increasing the capacity of local communities to pursue sustainable
livelihood opportunities

Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access
to justice for all and build effective, accountable and inclusive institutions at all levels

16.1 Significantly reduce all forms of violence and related death rates everywhere
16.2 End abuse, exploitation, trafficking and all forms of violence against and torture of
children
16.3 Promote the rule of law at the national and international levels and ensure equal access
to justice for all
16.4 By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and
return of stolen assets and combat all forms of organized crime
16.5 Substantially reduce corruption and bribery in all their forms
16.6 Develop effective, accountable and transparent institutions at all levels
16.7 Ensure responsive, inclusive, participatory and representative decision-making at all
levels
16.8 Broaden and strengthen the participation of developing countries in the institutions of
global governance
16.9 By 2030, provide legal identity for all, including birth registration
16.10 Ensure public access to information and protect fundamental freedoms, in accordance
with national legislation and international agreements
16.a Strengthen relevant national institutions, including through international cooperation, for
building capacity at all levels, in particular in developing countries, to prevent violence and
combat terrorism and crime
16.b Promote and enforce non-discriminatory laws and policies for sustainable development

Goal 17. Strengthen the means of implementation and revitalize the global partnership for
sustainable development

Finance

17.1 Strengthen domestic resource mobilization, including through international support to

developing countries, to improve domestic capacity for tax and other revenue collection
17.2 Developed countries to implement fully their official development assistance
commitments, including the commitment by many developed countries to achieve the target
of 0.7 per cent of ODA/GNI to developing countries and 0.15 to 0.20 per cent of ODA/GNI to
least developed countries; ODA providers are encouraged to consider setting a target to
provide at least 0.20 per cent of ODA/GNI to least developed countries
17.3 Mobilize additional financial resources for developing countries from multiple sources
17.4 Assist developing countries in attaining long-term debt sustainability through
coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as
appropriate, and address the external debt of highly indebted poor countries to reduce debt
distress
17.5 Adopt and implement investment promotion regimes for least developed countries

Technology
17.6 Enhance North-South, South-South and triangular regional and international
cooperation on and access to science, technology and innovation and enhance knowledge
sharing on mutually agreed terms, including through improved coordination among existing
mechanisms, in particular at the United Nations level, and through a global technology
facilitation mechanism
17.7 Promote the development, transfer, dissemination and diffusion of environmentally
sound technologies to developing countries on favourable terms, including on concessional
and preferential terms, as mutually agreed
17.8 Fully operationalize the technology bank and science, technology and innovation
capacity-building mechanism for least developed countries by 2017 and enhance the use of
enabling technology, in particular information and communications technology

Capacity-building

17.9 Enhance international support for implementing effective and targeted capacity-building
in developing countries to support national plans to implement all the sustainable
development goals, including through North-South, South-South and triangular cooperation

Trade

17.10 Promote a universal, rules-based, open, non-discriminatory and equitable multilateral

trading system under the World Trade Organization, including through the conclusion of
negotiations under its Doha Development Agenda
17.11 Significantly increase the exports of developing countries, in particular with a view to
doubling the least developed countries’ share of global exports by 2020
17.12 Realize timely implementation of duty-free and quota-free market access on a lasting
basis for all least developed countries, consistent with World Trade Organization decisions,
including by ensuring that preferential rules of origin applicable to imports from least
developed countries are transparent and simple, and con

GENDER DEVELOPMENT INDICATORS

What is gender indicator?

Indicators are criteria or measures against which changes can be assessed (Imp-Act 2005). They may
be pointers, facts, numbers, opinions or perceptions – used to signify changes in specific conditions
or progress towards particular objectives (CIDA, 1997).

Good indicators of gender development

Due to ambiguity surrounding the accuracy of gender development indices given by various
authorities, we have decided to put a set of proposed good indicators of gender development at
international and regional level.

International indicators of gender development

1. Looking into millennium development goals

A framework for incorporating gender equality across the MDGs: Many practitioners and
policymakers agree that gender equality and women’s empowerment are central to the achievement
of each of the MDGs, and the achievement of Goal 3 in turn depends upon the extent to which the
other goals address gender-based constraints. The Millennium Project Task Force on Gender and
Education has developed a framework outlining some of the reasons why gender equality is
important to each of the 8 MDGs (see figure). These can help to make the case for developing gender
indicators for each MDG and provide a good starting point.
Figure 15: a model on how to map gender development into MDGs

Goal 1. Eradicate extreme poverty and hunger
• Equal access for women to basic transport and
energy infrastructure can lead to greater economic
activity • Investment in women’s health and
nutritional status reduces chronic hunger and
malnourishment, which increases productivity and
wellbeing.

Goal 2. Achieve universal primary education
• Educated girls and women have greater control
over their fertility and participate more in public life.
• A mother’s education is a strong, consistent
determinant of her children’s school enrolment and
attainment and their health and nutrition outcomes.

Goal 3. Promote gender equality & empower women • This central goal dedicated to gender equality and
women’s empowerment depends on the achievement
of all other goals for its success.

Goal 4. Reduce child mortality • A mother’s education, income, and empowerment

have a significant impact on lowering child
mortality.

Goal 5. Improve maternal health • A mother’s education, income, and empowerment

have a significant impact on lowering

Goal 6. Combat HIV/AIDS, malaria, and other • Greater economic independence for women,
diseases increased ability to negotiate safe sex, and more
awareness of challenges around traditional norms in
sexual relations are essential for preventing the
spread of HIV/AIDS and other epidemics.

Goal 7. Ensure environmental Sustainability • Gender-equitable property and resource ownership

policies enable women (often as primary users of
these resources) to manage them in a more
sustainable manner.

Goal 8. Develop a global partnership for • Greater gender equality in the political sphere may
development lead to higher investments in development
cooperation.
Source: Adapted from Grown et al 2005: 31)

2. The Gender-related Development Index (GDI) adjusts the Human Development Index (HDI)
for gender inequalities in the three dimensions covered by the Human Development Index
(HDI), i.e. life expectancy, education, and income. It is important to note that the GDI is not
specifically a measure of gender inequality

3. Gender Empowerment Measure (GEM) seeks to measure relative female representation in

economic and political power. It considers gender gaps in political representation, in
professional and management positions in the economy, as well as gender gaps in incomes
(Klasen, 2006). In 2009 concrete proposals for the two gender-related indicators are being
formulated. These include the calculation of a male and female HDI, as well as a gender gap
index (GGI) to replace the GDI, that can be interpreted more directly as a measure of gender
inequality (Klasen and Schüler 2009
4. International composite indices to measure gender equality have been developed, partly to
complement and expand on the GDI and GEM. For example, Social Watch¢ s Gender Equity
Index (GEI) combines indicators from both the GDI and GEM, with a separate gender
equality rating estimated for three dimensions (Social Watch 2005):
• Education: measured by the literacy gap between men and women and by male and
female enrolment rates in primary, secondary and tertiary education.
• Participation in the economy: measured by the percentage of women and men in paid
jobs, excluding agriculture, and by the income ratio of men to women.
• Empowerment: measured by the percentage of women in professional, technical,
managerial and administrative jobs, and by the number of seats women have in
parliament and in decision-making ministerial posts.

5. The World Economic Forum’s Gender Gap Index (GGI) also uses a broad range of
dimensions and indicators (see Box 8). Part of the GGI s innovation is in its measurement
techniques, which combine quantitative data sets with qualitative measures from the
Executive Opinion Survey of the World Economic Forum, a survey of 9,000 business leaders
in 104 countries.

Gender Gap Index (GGI) GGI indicators include the following:

 • Economic participation: male and female unemployment levels, levels of economic
activity, and remuneration for equal work.
• Economic opportunity: duration of maternity leave, number of women in managerial
positions, availability of government-provided childcare, wage inequalities between
men and women.
• Political empowerment: number of female ministers, share of seats in parliament,
women holding senior legislative and managerial positions, number of years a female
has been head of state.
• Educational attainment: literacy rates, enrolment rates for primary, secondary and
tertiary education, average years of schooling.
• Health and wellbeing: effectiveness of governments, efforts to reduce poverty and
inequality, adolescent fertility rate, percentage of births attended by skilled health
staff, and maternal and infant mortality rates.
Source: Lopez-Claros and Zahidi 2005
Regional level Indicators of gender development

• The Africa Gender and Development Index (AGDI): The AGDI has been designed to
provide African policymakers with an appropriate tool for monitoring progress towards
gender equality and to help monitor progress in implementing the conventions which have
been ratified by African countries, including the Dakar Platform for Action (UNECA 2004).
It differs from UNDP.s international GDI and GEM (see section 5.1), with a move away
from Gross Domestic Product (GDP) measures. The AGDI incorporates a quantitative tool of
42 sex-disaggregated indicators (the Gender Status Index) along with a qualitative
assessment of the level of implementation of key women’s rights and national, regional and
international gender equality documents such as human rights

• Gender Status Index (GSI) The GSI is based on three components: social power, economic
power and political power. Each of the three main components has the same weight in the
calculation of the GSI. Within each block, each component also carries the same weight.

• The social power component (capabilities) consists of two sub-components: - Education:

measured by levels of school enrolment and dropout, and literacy levels of girls and women.
 - Health: measured by levels of child health, new HIV infection and time spent out of work
through illness.
• The economic power component (opportunities) consists of three sub-components: -
Income: measured by women’s income from agriculture, from work in the formal and
informal sectors and from cash transfers. - Time use or employment: measured by time
spent in economic activities, and in employment. - Access to resources: measured by access
to means of production and to management positions.
• The political power component (agency) consists of two sub-components: - Representation
in key decision-making positions in the public sector. Representation in key decision-
making positions in civil society.
• African Women’s Progress Scoreboard (AWPS) In each country, the research team
assesses the level of implementation of all key women’s rights and gender equality regional
and international documents classified within four blocs:
• Women’s rights component: - CEDAW, particularly its optional protocol, article 2 on the
principle of equality of men and women in national constitutions and other legislations and
article 16 on marriage and family relations. - The African Charter on Human and People’s
Rights and the Protocol on Women’s Rights..
• . Social component: - Level of demonstrated commitment to the Beijing Platform for Action.
- Levels of violence against women, including domestic violence, rape, sexual harassment
and trafficking in women. - Health, including sexually transmitted infections, HIV/AIDS,
maternal mortality and contraception. - Education: policy on girlsù school dropouts and
education on human/women’s rights.
• Economic component: - ILO Conventions and policies on equitable working conditions,
including Convention 100 on equal remuneration, Convention 111 on discrimination and
Convention 183 on maternity protection at the workplace. - Engendering national poverty
reduction strategy papers (PRSP) and other development plans. - Access to agricultural
extension services, technology and land.
Political component: -Implementation of Security UN Resolution 1325 on the impacts of
conflict on women and their role in peace-building

Country’s level indicators of Gender development

The country level, gender indicators are key to upholding commitments on gender equality and
sustainable development, including CEDAW and the MDGs. Indicators on gender equality at the
national level could reflect structural in/equalities (such as policy commitment, legal frameworks
and national legislation). They could measure manifestations of gender inequalities (such as
lower retention rates of girls in education compared to boys or the prevalence of violence against
women), or they could refer to the impact of a lack of government provision of basic services on
women and men. Cambodia has developed additional targets and indices to measure progress
towards the MDGs, complementing international measures. The Cambodian Millennium
Development Goals (CMDGs) include 9 goals, 25 overall targets, and 106 specific targets. The
box below includes a few examples from CMDG 3: Promote gender equality and women's
empowerment.

The Cambodian Millennium Development Goals

• CMDG 3: Promote gender equality and women's empowerment Overall target: Reduce
significantly gender disparities in upper secondary education and tertiary education
Improve the ratio of girls to boys in upper secondary education from 48 percent in 2001
to 100 percent in 2015.

• Improve the ratio of girls to boys in tertiary education from 38 percent in 2001 to 85
percent in 2015.

• Improve the ratio of literate females to males 15-24 years old from 87 percent in 1998 to
100 percent in 2010.

• Improve the ratio of literate females to males 25-44 years old from 78 percent in 1998 to
100 percent in 2010.

Overall target: Reduce significantly all forms of violence against women and children

Enter the Gross National Happiness (GNH) Indicator

The four pillars of GNH are:

 i. Equitable Economic Development

ii. Environmental Preservation

iii. Cultural Resilience

iv. Good Governance

Figure 20: The four pillars of GNH can be found more or less in the UN graphic representation
of sustainability: Economic, Social, & Environment.

The Center for Bhutan Studies (CBS) in Thimphu, the capital city of Bhutan, has developed its
GNH index, comprising 9 indicators to measure the well-being of people of Bhutan:

1. Psychological Wellbeing

2. Time Use

3. Community Vitality

4. Cultural Diversity and Resilience

5. Health

6. Education

7. Ecological Diversity and Resilience

 8. Living Standard

9. Good Governance

Complementariness of GNH & GDP

The GNH index (9 indicators) that Bhutan has suggested is specific to Bhutan, to measure the
way they perceive well-being (happiness) as it is related to sustainability. The application of
GNH in other countries can be very different, as well-being (happiness) may be differently
perceived. GNH, however, may have some cross cultural indicators: Standard of Living,
Education, Ecological Diversity & Resilience, Health, & Good Governance. Thus, after
measuring GDP, the researcher should measure (some) GNH indicators to see sectors that need
remedy or improvement for sustainability.

THEORIES OF DEVELOPMENT

There are two main paradigms of the the theories of development namely:

i. Modernization Theories (Theories of economic growth)

ii. Theories of Social Development

 i. THEORIES OF ECONOMIC GROWTH (MODERNIZATION THEORY)

I. CLASSICAL THEORIES/MODELS OF ECONOMIC GROWTH

a. Adam Smith

b. David Ricardo

c. Thomas Malthus

d. Stuart Mills

David Ricardo Theory of Development

Although Ricardo drew heavily on Adam Smith’s writings, yet he was the first economist who
presented the classical thought in a consistent body of economic analysis, presented in a vigorous
form. His ideas are embodied in his book, The Principles of Political Economy and Taxation
(1817) and the many letters that he addressed to contemporary economists. The Ricardian theory
of rent is well known; but there are also ideas contained in his writings which throw light on the
development process.

Role of Agriculture and Diminishing Returns to Labour:

Like that of Smith in Ricardo’s model growth and development depends on capital accumulation.
And capital accumulation depends on reinvestment of profits. But the profits earned by the
capitalists depend on the growth of agricultural output, especially food, or what is now generally
called wage goods. However, the important fact which was emphasised by Ricardo was
diminishing returns which occur as more doses of labour (equipped with some tools and
equipment) are used in agriculture.

It is diminishing returns in agriculture that causes food prices to rise and result in rise of wages
of workers which squeeze profits and ultimately lands the economy into stationary state.
According to Ricardo, there are three agents of production that participate in the process of
growth of output. The capitalist hires labour and land and plays a key role in the process of
economic development. Ricardo uses the term capitalist in the sense the modern economists use
the term entrepreneur. In the Ricardian model capitalist undertakes production, pays rent to the
landlords and wages to the workers employed for the production work and what remains is his
profits.

Graphically, the growth of agricultural output and employment of labour in Ricardian model is
depicted in Fig. 18.1. In this figure marginal productivity of labour is depicted on the Y-axis and
the amount of labour employment on the X-axis. The curve MP is the marginal productivity
curve which will remain fixed as it is assumed that land is fixed and no technological progress
occurs. If OB is the expenses on a dose of a labour and capital, then OL labour would be
employed.

It will be seen from Fig. 18.1 that the employment of OL labour produces the total output equal
to OQHL. The total expenses of production incurred on capital and labour are equal to OBEL. It
is thus clear that labour produces surplus over costs of cultivation incurred on labour and capital.
The surplus is equal to BQHE. This surplus represents the rent which will be obtained by the
landlords, the owners of the land.

If OW represents the minimum level of subsistence wage which will be paid to the workers, then
OWTL would be the share of labour (i.e., total wages bill) in the agricultural output produced.
The remaining agricultural output equal to WTEB will be the profits made by the capitalist
farmers.

According to Ricardo, surplus (i.e., profits) of capitalist farmers will be saved and reinvested. As
a result of reinvestment both the output and employment will increase. Since the land for the
society as a whole is fixed, marginal product curve of labour (equipped with certain tools) will
remain unchanged. Due to diminishing returns, with the increase in more and more of
employment of labour its marginal product, (MP) will go on falling till it becomes equal to
minimum subsistence level of wages OW

According to Ricardo, a good part of this net revenue or profits earned by the capitalists will be
reinvested in the expansion of capital equipment. This reinvestment of the profits will result in
the expansion of the capital stock. The expansion in the stock of capital will shift the marginal
productivity curve of labour upward to the position M 2P2. Now, if the subsistence wage rate
remains at the level OW, OL2 labourers will be employed and the profits will now increase to
WFM2. In this way, the profits will continue to be reinvested and stock of capital will go on
expanding, resulting in the shift of the marginal productivity curve of workers and the increase in
labour employment and output.

However, according to Ricardo, the industrial sector cannot go on expanding indefinitely. As

according to him, agriculture is subject to diminishing returns, the increase in industrial output
and employment and the resultant rise in the demand for food-grains will cause the prices of
food-grains to rise. The rise in prices of food-grains will bring about the increase in the wage rate
in the industrial sector.

If the wage rate rises to OW’ when the capital stock is OK3, labour force OL3 would be
employed and the net revenue or profits of the capitalist would be reduced to M3W’G. Thus, the
occurrence of diminishing returns in agriculture and the consequent rise in the prices of food-
grains and the rise in wage rate, the rate of profits made by capitalists will go on declining till it
becomes zero. When the rate of profit is reduced to zero, further expansion in the stock of
industrial capital ceases to occur. As a result of this, the whole growth process of increase in
output and labour employment will stop.

From the above, it is thus clear that in Ricardo’s model the growth of output and employment
depends on capital accumulation on the one hand, and the available supplies of food-grains or
wage goods on the other which are constrained by the operation of diminishing returns in
agriculture.

Stationary State:

Ricardo shows how the rate of profit goes on falling as more and more capital is accumulated
and invested. As the rate of profit falls, the accumulation of capital also slows down. The
economy reaches the stationary state when rate of profit is too low to provide any incentive for
any business enterprise. After the initial rise in wages as economy grows forward, the wages are
brought down to the subsistence level by the pressure of population. At this stage, the rents are
high. The real wage rate is at its minimum and population growth slackens. The rate of profit
falls to near zero and further expansion of capital ceases. These are all the symptoms of a
stationary state.

Given the crucial importance of capital accumulation in Ricardo’s model of growth, anything
that discourages investment will adversely affect capital accumulation and economic growth.
Ricardo was therefore against imposing any levies, taxes and tariffs on inputs which raises the
cost of production and lowers profits and thus serves as disincentive to make investment. That is
why he emphasised imports of cheap food by abolishing Corn Laws in England at that time and
thought that imports of cheap food would delay the reaching of stationary state indefinitely by
holding down wages in terms of food.

To quote him, “A country could go on for an indefinite time increasing its wealth and production
for the only obstacle to this increase would be scarcity, and consequent high value of food and
other raw produce. Let these be supplied from abroad in exchange for manufactured goods and it
is difficult to say where the limit is at which you would cease to accumulate wealth and to derive
profits from its employment.”

Such has been the appeal of Ricardo’s growth model that Arthur Lewis based his view of
development in “Economic Development with Unlimited Supplies of Labour” for developing
economy with dualistic structure on Ricardo’s model of growth. However, instead of assuming
wages for the modern capitalist sector remaining equal to the minimum subsistence level based
on Malthusian law of population Lewis considered perfectly elastic supply of labour to the
modern capitalist sector due to the existence of disguised unemployment prevailing in the
traditional sector (i.e., agriculture). He assumed that wages would stay at the given level until all
disguisedly unemployed labour in agriculture is absorbed in the modern industrial sector.

Critical Evaluation of Ricardo’s Model:

We have seen above that Ricardo, like other classical economists, emphasised the wage goods as
determinants of growth of output and employment in an economy. In the growth of output and
employment, they ignored the role of aggregate effective demand despite the protest by Malthus.
Their neglect of effective demand as a factor affecting growth of income and employment
flowed from their belief in Say’s Law.
However, in the context of developing countries, his emphasis on wage goods as determinant of
income and employment is quite right. In developing countries like India, the cause of mass
unemployment and disguised unemployment is to be found in the lack of fixed capital and other
cooperating factors and the supplies of the wage goods on the other and not in the lack of
aggregate demand.

Therefore, a solution to the unemployment problem in labour-surplus developing countries lies

in the accumulation of fixed capital as well as the expansion of wage goods supply in the
economy. Keynesian remedy of curing unemployment through the increase in aggregate demand
by expansionary fiscal policy financed by creating new money will not solve the problem of
unemployment and disguised unemployment in developing countries.

It is worth emphasising that Ricardo rightly pointed out that the growth of output and
employment in the industrial sector depends upon the availability of wage goods. That the
availability of food-grain surpluses or wage-goods serves as a constraint on the growth of
industrial output and employment has now been well recognised. In the Second and Third Five
Year Plans of India and in the Soviet industrialisation, especially higher priority to basic and
heavy industries brought about rise in prices of food-grains and the deceleration in the industrial
sector.

However, it may be pointed out that the contention of Ricardo that agriculture is subject to the
law of diminishing returns that will ultimately raise the prices of food-grains and reduce the
profits in the industrial sector which will ultimately result in the occurrence of the stationary
state, is too pessimistic and unwarranted. In their analysis of the growth process, they
underestimated the role of technological progress in raising production which can suspend the
operation of the law of diminishing returns.

The increase in agricultural productivity due to technological progress can prevent the rise in
prices of food-grains and therefore the reaching of the stationary state. In actual practice, in
today’s developed countries, agricultural revolution took place along with the industrial
revolution. In this regard, the gloomy prognosis of classical economists has not come true as far
as capitalist developed countries are concerned.
A drawback in Ricardo’s theory of development is that it regarded all increase in the stock of
fixed capital as increasing labour employment. In other words, it ignored the labour-displacing
effect of capital equipment in which improved technology is embodied. Actually, much of
technological progress made in advanced developed countries has been of capital-intensive
nature.

It has tended to displace labour. Therefore, the technology evolved and developed in advanced
countries does not suit the factor-endowment conditions of developing countries with surplus
labour and scarce capital. Therefore, in developing countries, to accelerate economic growth and
employment generation emphasis has to be put not only on the expansion of fixed capital but
also on the right choice of technology which is labour-using rather than labour-saving.

Ricardo was also not right in ignoring the effective demand in determining growth of income and
employment. Despite warning by Malthus, Ricardo thought that development process would not
be constrained by lack of effective demand as he believed in Say’s Law that supply creates its
own demand. The main hurdle in the development process, according to him, is the rise in wages
due to diminishing returns in agriculture.

Ricardo thus writes, “There is no limit to demand—no limit to the employment of capital while it
yields any profit, and that however abundant capital may become, there is no other adequate
reason for a fall in profit but a rise in wages.” As has been emphasised by Keynes, there is
nothing in the working of the capitalist economic system which would always ensure adequate
effective demand so as to maintain full employment and ensure steady growth. According to
Keynes, in a modern monetary economy, the saving and investment activities have been
separated from each other. The investment may not be equal to the savings done at the level of
full employment. Hence full employment and steady growth may not be maintained.

Ricardo’s contribution to economic analysis and theory of economic development is regarded as

outstanding and his view is widely shared by other classical economists. As in the case of other
classical economists, his analysis of the economy relates to a long period of time as distinguished
from a short period analysis. He regards the economy as dynamic and ever-changing.

It grows till it ultimately reaches a stationary state. In the development process, Ricardo focuses
his attention on the major variables like capital accumulation, population growth and trends in
profits. He studies interrelations among these variables and then draws conclusions about their
behaviour. His analysis of the relative shares in the national income of the various agents of
production such as rent, wages and profits is indeed thought-provoking.

It must, however, be said that although he refines and extends the classical theory of
development, yet the main points in his analysis are haphazardly scattered in his book ‘The
Principles of Political Economy’. His predictions regarding the advent of stationary state have
not turned out to be true, nor are about the changes in relative shares of the various agents of
production borne out by history. The two fundamental principles in his model of economic
development, viz., the principles of population and the law of diminishing returns, are only
partially correct. All the same, it has to be admitted that he made a significant contribution to the
theory of economic growth.

Relevance of Ricardo’s Theory of Growth to Developing Countries:

The Ricardian theory of development as we have seen in his analysis is based upon two
fundamental principles, viz., principle of diminishing returns and the principle of population
growth. Ricardo like Smith realises that a high rate of capital accumulation is necessary for
economic growth. He considers profits as the primary source of accumulation, although among
the secondary sources he includes rent and wages (when they are high enough to generate a
surplus over subsistence).

Further, in the Ricardian system, there is an organic relation between agricultural development
and economic growth. In this context Ricardo attacks the landlords’ interests, as they are
opposed to agricultural improvements. The fertility of soil, he says, falls as the margin is
extended (as a result of increasing population). As such the rate of profit will fall in the absence
of agricultural improvements and free trade.

Ricardo points out that the normal progress of the economy is towards stationary state. The
gloomy forecast of the ultimate advent of a stationary state as envisaged by Ricardo has been
falsified by history. The rapid economic strides by capitalist economies in many parts of the
world in the past and the squeezing gulf between the capitalists and the labourers following a
steady betterment in their economic status, all go to disprove Ricardo’s dismal picture about the
future of capitalism.
The two fundamental principles—the principle of diminishing returns and the principle of
population on which Ricardo based his theory of economic development—have partially, if not
completely, been negated in the developing countries of today. With improved techniques and
technical know-how, it has been possible to effectively check the tendency towards diminishing
returns to set in. In the same way, his views on population growth have been disproved for it
cannot explain the changes in population in the developing countries. There is no tendency
towards subsistence wages. Not only has that, Ricardo’s conjectures about the relative share of
labour, capitalists and landlords not been proved to be correct.

Nevertheless, Ricardo’s emphasis on the role of agriculture in accumulation of the various

methods of savings, including taxation of rent as an important element, entrepreneurial ability,
specialisation of labour, attack on landlordism, the role of labour productivity which could be
increased either through organisational or technological changes and the importance of the
National Bank (Ricardo being the first to conceive of a Central Bank) still remain the policies of
direct relevance to the developing economies.

Adam Smith Theory of Economic Development

Adam Smith describes at least two models of economic development—the 4 stages of

development model and the development of town and cities. The models present an unfolding
view of economic growth from primitive to advanced. But Smith´s historical example
systematically contradicts his models. Is Smith, then, endorsing models of economic growth or
criticizing them?

Main Arguments of Adam Smith and Economic Development: theory and practice.

What do we make of theoretical models when none (or very little) of the empirical data fit the
model? Considering economic development models in Adam Smith independently from the
historical empirical evidence he offers with them is problematic. Smith offers clear models of
economic development both in his Lectures on Jurisprudence and in the Wealth of Nations. Yet,
Smith also presents lists of historical examples which contradict his theories, maybe questioning
the general validity of those models. I first look at the theory of the four stages of development
as presented in the Lectures on Jurisprudence, then at some of the historical examples of
development in the Wealth of Nations which are exceptions to Smith‘s theoretical model. LJ 2
The clearest exposition of Smith‘s theory of development comes from his Lectures of
Jurisprudence. In these lectures we can find what is known as the four stages of development
theory. The four stages theory was a common construct of the Scottish Enlightenment. Smith
explains we start from hunting societies (LJ 14). By eventually realizing that domesticating
animals are an easier source of food, we arrive at the age of shepherds. Population growth would
follow a more stable supply of food and would push for a more steady provision. So, after having
enough flocks and herds to be able to afford to cultivate some land, we get to the agricultural
stage. And after having enough produce to support themselves, people will have superfluous
products with which will start to trade, developing into the age of commerce. Each stage of
development has its appropriate form of justice and of government and its appropriate customs.
And from each stage a society will carry into the following stage. This is “the normal process of
development”. The theory is simple, clear, and quite reasonable. If I were to give an historical
example to explain and corroborate this model, I would say: take country x. During century y,
people were few and they were hunters. As population increased, they became shepherds. In
century yy, they started to cultivate land extensively and now, x is in its commercial age. But this
is not the way Smith gives empirical support to his theory. He tells his students that North
American Indians are an example of the first stage of development “tho they have no conception
of flocks and herds, have nevertheless some notion of agriculture” (LJA15). “The Tartars and
Arabians subsist almost entirely by their flocks and herds. The Arabs have little agriculture, but
the Tartars none at all” (LJA 15). And France is offered as an example of commercial society,
without any previous stage of it being mentioned. We do encounter the Tartars and the Arabs
again in later lectures. But here Smith tells his students that this natural gradual development
somehow stalled with them as they are “two great nations who have been merely shepherds as
far back as we can trace them and still are so without the least agriculture” (LJA 213). So Smith
tells his students there is a model of development and offers them examples of societies that do
not develop. 3 WN In the WN the explicit mention of the four stage of development disappears.
There are references to hunters, shepherds, agricultural and commercial societies, and the
development from one stage to another, especially in Book III and V, but not a model as clear as
the one used with his students. Assuming the implicit presence of a 4 stages model, what does
Smith tells us of civilizations that have evolved over time? Take Rome. Smith tells us
“Rome...was originally founded upon an Agrarian law” (WN IV.vii.a.3). Where is that age of
shepherds, not to speak of the age of hunters, which precedes the age of agriculture? Book III is a
broad account of the feudal era. Here Smith tells us that “the cultivation and improvement of the
country, therefore which affords subsistence, must necessarily, be prior to the increase of the
towns, which furnishes only the means of conveniency and luxury” (WN III.i.2). He also tells us
that “According to the natural course of things, therefore, the greater part of the capital of every
growing society is, first, directed to agriculture, afterwards to manufactures, and last of all to
foreign commerce. This order of things is so very natural, that in every society that had any
territory, it has always, I believe, bee in some degree observed' (WN III.i.8). This seems to echo
his lectures: first one develops agriculture (the country) and then, with the surplus products, one
starts trading and developing trading centers such as cities. The theoretical model of stage
development is back. The chapter where this idea is presented is indeed titled “Of the natural
Progress of Opulence.” But Smith describes the development of Europe as “unnatural and
retrograde” (WN III.i.9). Rather than going from the agricultural stage to the commercial one, we
went from an agricultural stage back to a barbaric stage, to then jump into a commercial stage,
following which agriculture improved. Europe developed foreign trade first, then manufacturers,
and only later agriculture. This is not a minor point Smith makes. He spends three of 4 the four
chapters of Book III telling his readers the story of how the natural order of things is inverted. He
explicitly warns his readers of this inversion: “But though this natural order of things must have
taken place in some degree in every society, it has, in all modern states of Europe, been, in many
respects, entirely inverted” (WN. III.i. 9). A combination of exogenous events such as the
barbaric invasions and of local politics, ranging from primogeniture laws to privileges the kings
would grant to cities for support against the nobility, gave incentives to people to cluster in cities
for protection, to develop trade, then manufacturers, and only later on to export to the
countryside the entrepreneurial spirit of commerce which develops the country, rather than vice-
versa. This is why the European development had been “unnatural and retrograde.” The
historical data we are offered gives us exactly the opposite result than the predicted result. The
theoretical model, by itself, has therefore problems in explaining historical facts.

Why would Smith offers us a model of ‘natural development of opulence’ if his history is
the ‘inverted’?
Let‘s consider another factor. Smith, in LJ, tells his students that the engine of change is
population growth. One society develops enough means of subsistence to sustain a larger
population and, because of the larger population is pushed to find additional means of
subsistence, going from hunting, to pastoral, to agriculture, to commerce. This feedback loop is
presented also in WN, even if the emphasis is now more on population growth as a symptom of
economic growth: if there is more to survive with more people will survive (WN I.viii). But
while the theory predicts a linear growth, in practice we observe three different patterns. An
economy (and its population) can increase, stay the same or decrease. In North America there is
more growth than in England (WN i.viii.23). “China had been long one of the richest, that is, one
of the most fertile, best cultivated, most industrious, and most populous countries in the world. It
seems however, to have been long stationary” (WN i.viii.24). 5 And while China does not seem
to decline, Bengal does. In Bengal “notwithstanding [subsistence should not be very difficult]
three or four hundred thousand people die of hunger every year” (WN I.viii.26). The reason?
“The mercantile company which oppresses and domineers in the East Indies” (WN I.viii.27).
What does a model of development tells us then, as Smith presents it? Not much it seems, when
the historical account of it is taken into consideration. Customs, institutions, and other historical
accidents seem to play a large explanatory role in Smith’s models. In defense of Smith, it is often
claimed that the American experience resembles his theory (WN II.v.21 and III.i.5). But the
North American colonies cannot be considered an example of natural development. First, the
process of colonization itself implies that the barbaric colonies are colonized by civilized
cultures. Second, in the North American colonies, institutions are imported from Europe. And
indeed Smith tells us that the difference between the success of America and the degradation of
Bengal is the adoption of the British constitution (WN I.viii.26). Looking at book V, where we
have the most explicit reference to the 4 stages, still does not improve the performance of the
model. Smith uses the description of the four different stages of development to explain
differences in military organization and performance. Techniques and discipline of the military
change with each different stage. The military develops from a group of thugs to a proper army.
So far so good. But then we have the description of Rome. The sophisticated and civilized
Roman Empire, given its proven powers, relaxed its military discipline (WN V.I.a.36) and
barbaric uncivilized German tribes over-run it. This is a step backward, a destruction of
civilization which challenges the development of the four stages. In Smith’s defense, one could
claim that Smith tells us that the real commercial societies are in fact superior to any societies in
their previous stage of development. Only opulent, therefore only commercial, societies can
afford the expenses of modern firearms. Yet, he also tells us “the unavoidable effects of the
natural progress of improvement have, in this respect, been a good deal 6 enhanced by a great
revolution in the art of war, to which a mere accident, the invention of gunpower, seems to have
given occasion” (WN V.1.a.44. Emphasis added). Poor and barbarous nations overrun opulent
and civilized nations, unless we introduce firearms. But firearms are introduced by “mere
accident.” The model prediction works only with an exogenous random event.

Conclusions

Smith presents models of development and at the same time offers a range of historical examples
with which to understand the models and their predictive and explanatory powers. Interestingly
enough, though, the examples he chooses to use do not fit the models. They seem to contradict
them! Smith tells us it is possible to model the progress of opulence. But he also tells us
opulence developed in unpredictable forms. It happened only in certain part of the world, and
even there not stably. But if the model is a general model of human behavior, why do we see
different results in different parts of the world? Why Smith offers so much contradicting data?
Smith’s results of his empirical tests are problematic and may open the door for questioning of
the nature of the model itself. Is Smith hinting whether we should question the presence of a
natural order in nature that can be modeled? Or our ability to do so? What if the system of
natural liberty which is part of the economic development is indeed the result of peculiar
circumstances and historical accidents? What if freedom and prosperity are generated simply by
good luck? Smith does not seem to be able (or willing?) to exclude that possibility

Malthus’s Theory of Economic Development | Economics

We generally remember Robert Malthus as the propounder of his famous Theory of Population.
But it is well to remember that Malthus had also some important things to say about economic
development and it is refreshing to note that in several ways he anticipated the later economists
like Keynes and Kaleeki. Also, the Malthusian version of economic growth represents in several
respects a refinement of the general classical theory.
He recognised, more than did the other classical economists, the importance of a distinct and
systematic theory of economic development. Book II of his “Principles of Political Economy”
deals with the “Progress of Wealth” where he says- “There is scarcely any inquiry more curious
or, from its importance more worthy of our attention, than that which traces the causes which
practically check the progress of wealth in different countries.”

The problem of development, according to Malthus, lies in explaining why the actual gross
national product (actual riches) should differ from the potential gross national product (power of
producing riches). He thus points out the way in which the potentialities of economic
development in a country should be realised. This can be done by larger production and fairer
distribution.

Malthus contends that the process of economic development is not automatic. Rather conscious,
deliberate efforts are needed to bring it about. For instance, Malthus explains that mere increase
in population cannot by itself lead to economic development unless there is increase in effective
demand. (This is anticipation of the Keynesian doctrine). He says – “A man whose only
possession is his labour has, or has not, an effective demand for produce according as he is, or is
not, in demand by those who have the disposal of the produce.” He rejects Say’s Law which says
“supply creates its own demand” and that savings are automatically invested and constitutes a
demand for capital goods.

Malthus’s important contribution is in showing that savings in the sense of not consuming is a
mere negative act and instead of creating more demand it will lead to a decline in effective
demand. Only savings which are furnished by increased gains and are invested create an
effective demand. Thus, according to him, “abstinence on the part of capitalists, far from
accelerating economic growth, will in itself retard it.” Hence, Malthus brings out an important
fact that in advanced economy consumption, saving and investment all should expand
simultaneously.

Role of Capital:

Malthus attaches great importance to the accumulation of capital for economic development. He
regards capital as indispensable to development. According to him, “no permanent and continued
increase of wealth can take place without a continued increase of capital.” Besides, Malthus
underlined the importance of foreign trade for speeding up economic development. Foreign trade
provides incentives for investing, since it leads to the extension of the market for the goods
produced and for greater division of labour resulting in increased output.

There is another important fact brought out by Malthusian analysis of economic growth, namely,
the structured change that takes place in the process of economic development i.e., a decline in
the relative importance of agriculture as the economy moves forward. We know that economic
development in developing countries is regarded as synonymous with the development of
industries. Naturally, agriculture is eclipsed by the speedier development of industries. As a
means for expanding agricultural output, Malthus suggested land reform

Of far greater importance than what has been pointed out above, is the anticipation by Malthus of
the theory of ‘dualism’ as applied to underdeveloped economies. He envisaged the economy as
consisting of the two major sectors, viz., the agricultural sector and the industrial sector. His
analysis of the interrelation between these two sectors is quite interesting and enlightening. The
law of increasing returns operated in the industrial sector, whereas the agricultural sector was
subject to the law of diminishing returns, the rate of technological progress being responsible for
this difference.

Malthus brings out an important truth that when one of these sectors lags behind, it retards the
development of the other sector. We know how in India the failure on the agricultural front was
responsible for the slow rate of growth. “The development of the industrial sector of
underdeveloped countries is limited by the poverty of the agricultural sector.” This is due to the
fact that the lack of purchasing power in the rural masses reduces effective demand in the
economy and retards its growth.

Assessment of Malthus’s Contributions:

There is no doubt that Malthus made a valuable contribution to the theory of economic
development. His repudiation of Say’s Law and emphasising the importance of effective demand
and its relation to saving and investment are indeed noteworthy for their modern touch. A great
deal of what he wrote on the subject is applicable to an underdeveloped economy, especially
relating to the theory of dualism.
It has been pointed out by the critics of Malthus’s theory of economic development; he
concentrates on explaining the factors which hinder growth rather than the factors that promote
economic progress. However, some elements of his theory make positive contribution to the
growth process. For example, he considers production and distribution as the two grand elements
of economic growth. The distribution of production is as important as production itself or
sustained economic development. He also gives importance to capital accumulation in bringing
about economic development.

At the same time he emphasizes that the capital accumulation will choke off if it is not possible
for the additional goods to find consumers. That is, he points to the significance of effective
demand for sustained accumulation of capital. Increase in effective demand, according to him, is
as important as increase in production. Therefore, unlike Adam Snuth, he thinks that excessive
parsimony will reduce aggregate demand leading to widespread depression and unemployment.
He recommends a more egalitarian system of distribution in order to increase effective demand.
He also recognizes the importance of non-economic factors in economic development.

Though Malthus is more well-known for his theory of population than his contribution to growth
economics, his emphasis on fair distribution of production and effective demand makes his
theory of development distinct from that of other classical economists, such as Adam Snuth and
David Ricardo. According to his population theory, population increases so rapidly as to outstrip
the food supply due to the operation of law of diminishing returns which has largely been
falsified owing to the rapid increase in agricultural productivity yet it is very helpful in probing
the problem facing the labour-surplus developing countries of today.

Relevance of Malthus’s Theory to Developing Countries:

Malthus’s theory of development is negative in the sense that he concentrates his attention on the
causes which hinder growth rather than the causes which promote economic progress. However,
some elements making positive contribution to growth process are discernible in his Principles of
Political Economy. Malthus considers production and distribution as the two grand elements of
economic progress.

The distribution of production is as important as production itself for the furtherance of

economic progress. He also fully realises the significance of capital accumulation in economic
growth. At the same time he makes the important point that the accumulation of capital will
choke off if it is not possible for the additional goods to find consumers. Herein are contained the
seeds of the significance of effective demand.

Increase in effective demand, according to Malthus, is as important as the increase in production.

Excessive parsimony decreases the effective demand leading to widespread depression and
unemployment. He recommends a more egalitarian system of distribution in order to increase
effective demand. Malthus also duly recognizes the importance of non-economic factors. Above
all, Malthus is better known for his theory of population than his contribution to growth
economics. He held the view that population increases so rapidly as to outstrip the food supply
due to the operation of the law of diminishing returns.

Malthus’s contribution to economic growth contains several elements that are relevant to the
developing economies. His emphasis on both production and distribution, capital accumulation
and the creation of congenial non-economic factors is as valid today as was in his time. Though
his theory of population has largely been falsified owing to the rapid increase in agricultural
productivity, yet it is very helpful in probing the problems facing the overpopulated developing
countries of today.

II. CONTEMPORARY THEORIES OF ECONOMIC GROWTH AND

DEVELOPMENT (MODERN MODERNIZATION THEORIES)

A. LINEAR GROWTH MODELS

Capital Fundamentalism theory OR Development as growth and liner

Stages theories (Developed in 1950’s and 1960’s)

i. ROSTOW’S STAGES OF ECONOMIC GROWTH:

Economic growth can be explained in terms of a sence of steps or stages through which
all countries must proceed. The developed would go through these stages because they
were once underdeveloped. These stages are:

1) The traditional society

 • Basically Agrarian

• Technology is crude

• No production of significant surplus

• Crude levels of social and political organizations

• Production for consumption with no significant saving culture

2) Pre-condition for takeoff into self sustaining growth.

• Industrial investments are at embryonic stage

• Technology is still at embryonic stage

• Investments are made from deliberate savings

• Deliberate development of social and political organization

• Little surplus is made out of cutting down unnecessary expenditure

3) The take off.

• Visible industrial transformation start taking place

• Rapid transformation of productive technology is observed

• Production of consumer goods rapidly expands

• Little advancement in the levels of social and political organizations

• Little surplus is made from the profit realized from the investments

4) The drive to maturity.

• Industries grow into a complex level

• Technology becomes complex and sophisticated

 • Consumer goods began to be exported after saturating home market

• Importation of capital goods

• Reasonable profit is realized from the investments

• More advance levels of social and political organizations

5) The Age high mass consumption

• Technological complexity reach it apex stage

• Production of consumer goods is meant for domestic market while capital

goods is for exports

• Most sophisticated levels of social and political organizations

• Massive surplus is made from exports

• Consumption functions of the state tend to expand due to the accumulation of

wealth realized. For example the state start developing social security and
safety networks

According to him these steps are sequential. It was argued that advanced countries had all passed
the stage of “take off” into self-sustaining growth while the underdeveloped world were still in
either the traditional society or the pre conditions stage.

Rostow suggested that there were certain principles to be followed for the under developed world
to “lake off” intro self sustaining growth in one of the principles necessary for take off included:

• Mobilization of domestic and foreign savings

• In order to generate sufficient investment to accelerate economic growth

MAIN ARGUMENTS OF ROSTOW’S THEORY

 a. According to Rostow to develop is to transform from being traditional to being Modern. To
be modern is to be as closer as possible to the western lifestyle and economic systems

b. The trend of development is linear in a series of irreversible 5 stages listed above

c. The causes of problems in the poor countries are internal. I.e inability to set pre-conditions
for take off

d. The solution to the third world problems is to undertake deliberate initiatives to ignite
development (set pre-conditions for takeoff)

WEAKNESSES OF THE ROSTOW’S THEORY

1. Assume that the internal factors are the only cause of third world problems while in
reality there might be external factors too.

2. Reduce the concept of development to mean economic growth while the concept of
development is broader than that

3. Assume that development stops at the fifth stage while experience shows that
development is a continuous process

4. Assumes that Development is an irreversible process while experience shows that

development can be reversed if care is not taken.

5. This theory do assume that all countries are like European countries thus this model can
work the sane whereas most third world countries have different contexts different from
that of Europe

II. THE HARROD – DOMAR GROWTH MODEL.

Sometimes called AK model because involves Capital stoke (k) times one constant labeled as
(A) often used in development policies

Dev = Ak
According to this model every economy must save a certain proportional income. If only to
replace worn out or impaired capital goals. It involves building equipments and materials then a
new investment representing additions to the capital stock must be set so as to grow as a Nation.

According to Rostow and others defined “take off” stage using stage model. It is argued that a
country that could save 15% to 20% of the gross domestic product (GDP) could grow than those
that save less because such saving could be used to self sustain the economy.

Assuming that the capital output ratio is “K” ,savings ratio is “S” = 6 as constant, and the new
investment is determines by the level of total savings then the following model can be
developed:

1) Savings (S) is a product of some population (S) and national income (Y) such that we
have the equation

S=SY

2) Net investment (I) is defined as change in capital stock

I = AK

3) But because the total capital stock K bears a direct relationship to total national income or
output Y as expressed by capital output ratio K then

a. k/y = k or K = Ak/Ay

b. Hence Ak = KAY

4) Because net national savings (s) must be equal to net investment

4.1. Then S=I

But from equation 3.1 we know that

4.2. S=SY

And from equation 3.2 and 4.1 we know that

I=AK =KAY
 S=SY = KAY =AK =1

Therefore SY =KAY

AY/Y = S/K

Where AY/YS = GDP Growth

S= saving rate

K = Capital outputs.

Comparing with Harrod- Domar growth model, we learn that one of the fundamental growths is
simply to increase the proportion of national income saved. In other words income saved is the
same as income not consumed; for instance if the National capital output ratio in some less
developed countries is 3 and the aggregate saving ratio is 6% of GDP.

Thus from AY/Y = S/K NB: AY/Y = GDP Growth

Therefore AY/Y = 6/3 =2%

Now if the national net savings rate can somehow be increased from 6% to say 15% through
increased taxes, foreign aid/general consumption sacrifices – GDP growth can be increased from
2 to 5% because now.

AY/Y = S/K = 15/3 = 5%

Therefore GDP = 5%

CRITIQUE TO STAGE MODEL

According to Todaw, M. and Smioth S. stage theory of development did not and can not work in
developing Nations due to the following weakness of the theory.

i) It is true that more savings and investments is a necessary condition to accelerate rates of
economic growth and development but is not a sufficient one. There are other factors that
are equally important that are ignored. i.e. The theory did not consider necessary
structural institutional and attitudinal conditions (like well integrated commodity and
 money markets; highly development transport facilities, a well trained and educated
workforce, the motivation to succeed, efficient government bureaucracy) to convert new
capital effectively into higher levels of output which are not present in developing
Nations unlike Europe Nations where this model takes its reference especially
capitalizing on the worker ability of marshal plan. (Capital transfer from USA to Europe
after world war II)

ii) The theory failed to take into account the crucial fact that the contemporary developing
nation as are part of a highly integrated and complex international system in which even
the best and most intelligent development strategies can be nullified/endangered by
external force beyond the countries control.

i. VICIOUS CYCLE OF POVERTY THEORY

There are both internal and external factors which affect a country’s development. One internal
factor affecting a country’s development is its economy. By economic factors one usually means
factors that are essential for production, for example labour, and land resources and capital. In
the model "The vicious circle of poverty" the link between lack of capital and underdevelopment
is emphasized. The theory of the vicious circle of poverty can be used both at the national and
individual levels.

1. INDIVIDUAL VICIOUS CYCLE OF POVERTY

Barke and Hare (1991) thinks that by studying poverty on the individual level one can more
concretely see what causes poverty. On the individual level, the vicious circle of poverty starts
with the statement that a poor person (A) cannot pay for an adequate supply of food, and (B) thus
is physically weak (C) and cannot work efficiently (D), and unable to earn much money (E), and
thus is poor (A). The circle starts all over again with a situation where the person does not have
money to get nutritious food (B). This process goes on and on.
 Figure 2: The vicious circle of poverty - Individual level.

Source; Barke & O´Hare, 1991, page 43.

There have been some criticisms raised against this model which state that the circle is
inadequate as a total explanation of poverty and underdevelopment. The model does not explain
why the person is poor or what the cause of their poverty is. Another thing is that the model does
not consider the difference between LDC’s; it assumes that all countries are on the same level of
poverty. Social conditions are not taken into account either; the model implies that these
societies are static and unchanging. The vicious circle of poverty does not tell you anything
about how an individual or a country can break out of the circle.

2. R. NURKSE’S NATIONAL VICIOUS CYCLE OF POVERTY

Ragnar Nurksis who lived from 1907-1959, was a prominent economist professor who attempted
to examine problems of capital formation in underdeveloped countries. Nurkses theory expresses
the circular relationships that afflict both the demand and supply side of the problem of capital
formation in economically backward areas.
Nukse stresses the role of SAVINGS and CAPITAL FORMATION in economic development.
He was one of the profounder of the “balanced growth” doctrine. According to Nurkse, a
society is poor because it is poor. A society with Low income has both low levels of savings and
consumption. A low level of Savings results into low investments; hence low level of
productivity All this forms a dominant character of the development trend in most poor countries
called vicious circle of poverty.

Figure 3: Vicious Cycle of Poverty

Source: Nabudele, (2015)

According to Nurkse, one of the most important reasons why the backward countries have been
prevented from enjoying the stimulating effects of the manufacturing industry is not the
wickedness’ of foreign capitalists and their exclusive concern with raw materials supplies, but
merely the limitation of the domestic market for its manufactures products. In other words poor
countries have failed to mobilize capital by expanding their savings so as to expand their
investments which will result into expansion of productivity and incomes hence replace the
vicious cycle of poverty to the cycle of richness.

How can poor countries break the cycle?

1. Expand Mobilization of capital by maximizing savings

 2. Enlarge the market (consumption): Application of capital must be made to a wide range
of different countries (investments). This will lead to the enlargement of market. Nurkse
emphasizes the doctrine of balanced growth, e.g. Save more- Invest more- Widening
market- Increase ability to produce- growth..

 STRENGTHS OF THE THEORY

However Nurkses theory like that of Rostow, only succeeds in indicating the extent of poverty/
backwardness of the underdeveloped countries, it throws very little on our understanding

of the CAUSES OF POVERTY/BACKWARDNESS. Other scholars including

Rostow also demonstrate this weakness
 WEAKNESSES
1. Reduce the concept of development to economic growth
2. Assume that internal factors are the only one responsible for the poverty in the third world
countries

3. Mobilization of capital by maximizing savings seems to be unrealistic in most poor countries,

Some scholars have suggested borrowing from international financial institutions while
others suggest the use of foreign direct investment (FDI) for capital mobilization through
international transfer of financial and technological capital

4. The claim that third world countries are in a vicious circle of poverty suggest that, such
countries rotate at the same point within the circle of poverty and that they make zero
forward movement is misleading because evidence show that such countries are moving
forwards in terms of development although the change is not significant

B. STRUCTURAL CHANGE THEORY/MODELS

Introduction:

Structural changes theory focuses on the mechanism by which underdeveloped economies

transform their domestic economic structures form a heavy emphasis on traditional subsistence
agriculture to a more modern more urbanized, and more industrially diverse manufacturing and
service economy.
It employs the tools of neoclassical price and resource allocation theory and modern
econometrics to explain how this transformation takes place.

The best example is:

i) Two sector surplus labour theoretical models by W. Arthur Lewis

ii) Patterns of development –empirical analysis of Hollis B. Chenery and his coauthors.

I. THE LEWIS THEORY OF DEVELOPMET/BASIC MODEL/TWO SECTOR

MODEL

This is one of the models of development focusing on structural transformation developed by W.

Athur Lewis in the mid 1950’s and later modified by John Fei and Gusty Ranis.

It became popular in third world Nations around 1960’s and early 1970’s. It still has many
followers today.

ARGUMENT OF THE THEORY:

According to this theory there are two sectors in the underdeveloped economy namely:

i) Traditional, over populated rural subsistence sector.

ii) High productivity modern industrial urban sector.

TRADITIONAL, OVER POPULATED RURAL SUBSITENCE SECTOR

Characteristics:

Zero Marginal labour productivity i.e it can be withdrawn from the traditional agricultural sector
without any loss of output (this is the why Athur lewis called it surplus labour).

HIGH PRODUCTIVITY MODERN URBAN INDUSTRIAL SECTOR

Characteristics:
Labour from the subsistence sector is gradually transferred into modern labour.

Growth of output and employment

The model focus on the process of labour transfer and the growth of output and employment in
the modern sector i.e modern sector though called industrial it includes modern Agriculture.

Labour transfer and modern sector employment growth are both brought about by output
expansion in that sector.

The speed with which this expansion occurs is determined by the rate of industrial investment
and capital accumulation in the modern sector.

Such investment is possible by excess of modern sector profits over wages on the assumption
that capitalists i.e invest all their profits.

The level of wages in the industrial sector is assumed to be constant and determined as a given
premium over a fixed average subsistence level of wages in the traditional agricultural sector i.e
to Lewis modern sector wages 30% higher to that of traditional hence attracting shift of laborers/
workers.

According to Lewis the process of modern sector is self-sustaining growth and employment
expansion is assumed to continue until all surpluses rural is absorbed in the new industrial sector.

CRITICISM

Although this model is simple and roughly reflects the historical experience of economic growth
in the West but four of its assumptions do not fit the institutional and economic realities of most
contemporary developing countries in the following ways,

i) The models assumes that the rate of labour transfer and employment creation in the
modern sector capital accumulation i.e The higher the growth rate of the modern
sector the faster the rate of job creation this is not always the case because does not
consider the possibility of the capitalist profit to be re invested in more sophisticated
lobour saving capital equipment which will result into labour decline.
 ii) The model assumes that surplus labour exists in the rural sector while there is full
employment in the urban areas. This assumption is in valid because contemporary
research shows that there is little general surplus labor in rural locations except when
seasonal and geographic factors are to be considered e.g China Asia and Latin
America and Cawebear Islands where land is owned on unequal basis.

iii) The Notion of competitive modern sector labor market that guarantee the continued
existence of Constant REAL urban wages to the point where supply of rural surplus is
exhausted is unrealistic.

iv) The model assumption of diminishing returns in the modern industrial sector is not true
because there is much evidence that increasing returns prevail in that sector hence
special problems for dev policy making.

2. THEORIES OF SOCIAL DEVELOPMENT

These are theories which focus into social welfare, they include
1. Marxism theory
2. Dependence theory
I. MARXISM THEORY
MARXIST SOCIAL THEORY OF DEVELOPMENT

Marxist theory is one of the leading theories that attempt to provide a critical analysis of the
development process.

Marxism is a set of theories developed by Karl Marx in the 19th c (1818-1883)

Marx was a German philosopher who lived during the early period of industrialization. He
developed the theory in response the western industrial revolution and the rise of industrial
capitalism.

During that period in industrial societies (i.e. in England, German and USA) the majority people
were poor. Those who owned and controlled the factories and other means of production
exploited the majority who worked for them. The rural poor were forced into cities where
employment was available in factories. In this way the rural poor were converted into the urban
poor.

Marx in his theory was trying to understand the institutional framework that produced such
conditions, and he was looking for a means to change the condition in order to improve human
condition.

Marxist theory therefore is directed to social change. About development of a society, Marx
argues that the entire history of human societies may be seen as the history of CLASS
CONFLICT; the conflict between those who own and control means of production and those
who work for them. (i.e conflict between exploiters and the exploited). He believed that
ownership of the means of production in any society determines the distribution of wealth, power
and even ideas in that society. The power of wealth is derived not just from the control of the
economy but from their control of the political, educational and religious institutions as well.

MAIN ELEMENTS WITHIN MARXISM

1. Development is not only a process of transforming from poor economic level to a sound
industrial economic growth but a transition from exploitative and thus inequality based
society to a society free from exploitation and thus q society based on equality.

2. Development is linear through a series of 6 irreversible stages where primitive

communalism is the lowest and communism is the highest. Change in productive forces
and relation of production is responsible for the transition from primitive communalism
to capitalism while an active revolution by workers is necessary if the poor or workers
war to transform into socialism then into communism. Bourgeoisie are inseparable from
the government because they need to protect their status quo which is endangered by any
attempt to transform the society from capitalism to socialism and communism because
such stages are based on equality.

3. Capitalist exploitation is the only cause behind underdevelopment and other problems of
the third world countries.
 4. The only solution for the problems facing third world countries is through union of all
proletariats and poor people and make an active revolution against the capitalist system
because it is exploitative

5. All countries developing must go through six stages namely:

i. Primitive communalism

ii. Slavery

iii. Feudalism

iv. Capitalism

v. Socialism

vi. Communism

1. PRIMITIVE COMMUNALISM

• The instruments of labour were crude

• Due to poor tools, poor man was unable to engage in production alone, so to work was a
collective responsibility.

• The means of production were communally owned.

• Relations of production were non exploitative.

• No existence of classes

• Surplus was produced, product was very low, and thus it was a subsistence economy.

2. SLAVERY

• Exploitation between man and man

• Exist classes of slave masters and slaves

 • Slaves are the source of wealth to slave masters

• Low level of production

• Surplus is produced

3. FEUDALISM

• There was an existence of classes, a class of feudalists who owned the major means of
production, and a class of serfs.

• Major means of production (land) was owned privately.

• Land lords exploited the serfs.

• There was class antagonism between the opposing classes; the serfs were trying to free
themselves from the existing exploitative relationship.

• Contradiction and class struggle led to disintegration of feudalism and introduction of

capitalism.

4, CAPITALISM

• Emerged as a result of industrial revolution in Europe, it lead to the emergence of

commodity production under capitalist production.

• In this mode of production there is emergence of classes of capitalists and workers/

proletariats.

• Capitalists own the major means of production which are factories/industries.

• The relations of production are exploitative. The working class was exploited by selling
their labour power to capitalists.

• Production was done mainly by workers, but the products of labour were not equally
distributed; basically it was owned by few capitalists.

• The contradiction between capital and labour leads to the downfall of capitalism.
5. SOCIALISM

• Is established after the overthrown of capitalist system.

• Socialism establishes the dictatorship of proletariat/ working class.

• All the major means of production are owned by the nation, they are controlled by
proletariats.

• There no existence of classes, no exploitative relations.

6. COMMUNISM

• Absence of exploitative relations of production

• In a communist society, economy investment and consumption is primarily determined

by the national plan.

ANALYSIS AND CRITICISM OF MARXIST THEORY OF DEVELOPMENT

1. Marxist universal theory views world capitalism in terms of the ‘centre’ and ‘periphery’,
and the development process as a dialectical one. Capitalism at the centre developed an
internal dynamism of its own which is absent at the periphery- while the periphery is
complementary to and dominated by the centre (Amin, 1976). Today one can not dispute
the reality that the periphery (3rd world countries) is complementary to and dominated by
the centre (the developed countries).

2. The increasing gap between the rich and the poor reveals that Marxist view leads us to
pose a question that does history/ change begin only with the development of classes
and consequently class struggle? To affirm this would be to place primitive
communalism stage outside history. This would also mean that various human groups in
Africa, Asia and Latin America were living without history. This shows that before the
class struggle and mainly after it there factors that would be motive forces of
history/development.
 3. Others have criticized Marxist analysis that the theory does not give particular attention
to Africa’s unique situation. For instance what kind of classes existed in Africa, the
nature of the relations of production and nature of class struggle in Africa etc Therefore
one can argue that this theory is incomplete. Neo Marxists answered this by explaining
the prevailing state of underdevelopment and backwardness of the 3rd world countries.

4. Furthermore, Marx emphasize about the working class that is the leading force for social
economic development. African countries do not have a significant working class, with
the majority being rural farmers/ peasants, which makes difficult to relate the Marxist
theory to African context.

The task of present day African theorists is to examine existing socio-economic and political
situations in individual countries and thus be able to provide answers to individual countries and
how they relate to other countries.

It is however important to emphasize that Marxist theory remains significant because of its
ability to highlight the exploitative nature of the capitalist economic system and how this gives
rise to social divisions (classes) and conflicts. Indeed Marxist theory is a revolutionary theory as
it advocates CHANGE; a change for better way from exploitation, injustice and inequality.

WEAKNESSES OF THE THEORY

1. Overemphasize external factors behind the problems of the third world countries while
internal factors are undermined

2. Assume that is possible to realize an equitable society where there will be no classes.
This seem to be too idealistic

3. The method suggested solving the problems of the poor countries such as poverty and
inequality is unrealistic. A revolution won’t be a reliable solution to underdevelopment
and inequality problems in poor countries.

4. The theory reduce development to mean emancipation of people from all forms of
exploitations while development is broader than that
 5. The claim that once you rich communism, is the end of history of societies and that there
is no other stage ahead refute the fact that development is a continuous process

6. Assumes that Development is an irreversible process while experience shows that

development can be reversed if care is not taken.

7. This theory do assume that all countries are like European countries thus this model can
work the sane whereas most third world countries have different contexts different from
that of Europe

2. THE INTERNATIONAL DEPENDENCE REVOLUTATION

Rose and became popular in Africa around 1970’s and 1990‘s due to dependence and dominance
relationship with rich countries streaming itself into 3 major streams namely;

i. Neo-colonial dependence model

ii. False paradigm model

iii. Dualistic development thesis

1. NEO- COLONIAL DEPENDENCE MODEL

This is a Marxist thinking that attributed the existence and contrivance of under development
primarily to the historical evolution of a highly unequal international capitalist system of rich
country- poor country relationship.

The rich capitalist exploit the poor thus the co- existence of rich and poor in an international
system dominated by such unequal power relationships between the centers (The developed
countries and the peripheral ( The less development countries – LDCS)
The peripheral tries to develop self-reliant approaches but does not work because some group
within developing countries is pro capitalist e.g. Landlords, entrepreneurs military rules
merchant’s salaried public officials and trade union leaders who enjoy high incomes, social
status and political power constitute a small elite ruling class whose principal interest knowingly
or not perpetuate the international capitalist systems of inequality and conformity that rewards
them.

These groups are thus dependent to multilateral, bilateral assistance organizations and countries
like IFM etc.

These “Comprador groups” as they called by neo- colonial scholars’ input capitalist interest and
policies to developing would hence poverty and underdevelopment.

This model differ from stage model and structural model because views development in
LDCs as externally induced while the later views it as internally induced. Eg. Theotonio Dos
Santos

II. FALSE PARADIGM MODEL

This is the second international –dependence approach to development that attributes-

underdevelopment to faulty and in appropriate advice provided by well meaning b u often un
informed biased ethnocentric international “expert” advisers from developed –country country
assistance agencies and multinational donors organizations.
Accounting to this model these experts offer sophisticated concepts, elegant, theoretical-
structures and complex econometric models of development that often lead to in appropriate in
correct policies. Because of institutional factors such as central and remarkably resilient role of
traditional social structures (tribe, cast, class etc) The highly unequal ownership of land and
other property rights the disproportionate control by local elites-over domestic and international
financial assets and the very unequal access to credit these policies as they often are on
mainstream, neoclassical (levis type, surplus labor on chancery –type structural- charge) model
often serve the interest of the existing power groups both domestic and international.

In additional this modal argue that leading university intellectuals, economists, and other civil
servants all get their-training in development- country institutions where they are unwillingly
served in unhealthy close of alien concepts and elegant but in applicable theoretical models
hence when they come to their countries they design poor policies that do not bring any
positive effect to the development of particular countries.

III. THE DUALISTIC –DEVELOPMENT THESIS-Dualism is a concept that represents

the existence and persistence of increasing divergences between rich and poor nations and rich
and poor people’s on various levels.

These theses specially embrace 4 key arguments:-

a. Different sets of conditions of which some area superior and others interior can co-exist
in a given space e.g. Existence of highly rich people, educated with mass of illiterate and
poor people.

b. This co- existence is chronic and out merely transitional i.e. this international co-
existence of health and poverty is not simply a historical phenomenon that will be
rectified in time.

c. Not only do the degrees of superiority fail to show any signs of diminishing but they
have an inherent tendency to increase e.g. the productivity gap between workers in
 developed countries and their counterparts in most LDCS seems to widen with each
passing year.

d. The inter-actions between the superior and the interior elements are such that the
existence of the superior elements does little or nothing to pull up the interior elements let
alone “trickle donor “to it. i.e. it can only push it down / develop its underdevelopment”

CRITISM

Weaknesses

1. Although they offer an appealing explanation of why many poor countries remain
underdeveloped they offer little information of our countries initiate and sustain development.

2. The actual economic experience of LDCs that have persuade revolutionary campaigns of
industrial nationalization and state run production has been mostly negative.

3. The theory imply that developing countries should become entangled as little as possible with
the developed countries and instead peruse a policy of “autarky” ie inwardly directed-
development or at most trade only with other developing countries. Experience shows that
developing countries such as China, India before 1978 and 1990 respectively experienced
stagnation of growth until when they decided to open their economies. Taiwan and South Korea
emphasized exporting at least to developed countries their economies grew strongly.

DEPENDENCY THEORY OF SOCIAL DEVELOPMENT

Dependency theory differs from most Western approaches to studying political development.
One difference is that this approach originated in the Third World (primarily Latin America),
rather than among Western academics. Third World dependency thinkers were concerned with
explaining the unequal and unjust situations in which they and their nations found themselves.
Third World countries were poor while "developed" countries were rich. Third World countries
had bad health conditions, while other countries had good health conditions. Third World
countries had little military power, while other countries had tremendous military resources.
Third World countries faced starvation, while citizens of other countries had to worry about
losing weight. Third World economies were monoproductive and agriculturally based, while
economies in developed countries were diversified and industrialized. By almost any
conventional socioeconomic measure, Third World countries were at the bottom of the scale.
They had less education, less wealth, poorer health, less military power, and were dominated
politically and economically by the First World. Dependency theorists asked why such
inequalities existed. Their central concern was to understand the causes of inequality. They
felt that such inequalities were unjust, and sought to explain inequalities in order to change them
and achieve their goal of increased equality among nations and peoples. Dependency theory has
always been quite controversial: it incorporates some Marxist concepts; it addresses the sensitive
issue of inequality, blaming inequality on the developed nations; and it originates in the Third
World. Some aspects of liberation theology and world systems theory are related to dependency
theory.

MAJOR PROPOSITIONS OF DEPENDENCY THEORY

1. Third World countries do not exist in isolation. They can only be understood in the context of
the world economic and political system. Political events in Third World countries are directly
related to events in First World countries. However, relations between First and Third World
countries are asymmetrical. T he flow of power and control is from the First World
(center or core) to the Third World (periphery). Political and economic events in the First
World have a huge impact on the politics and economics of Third World countries, but Third
World political and economic events usually have little impact on the First World.

2. Within the world political and economic system there is a tremendous amount of interaction
among core countries and peoples, and between the core and the periphery. There is very little
interaction just among periphery countries. The consequences of this are great, resulting in an
isolated and weak periphery country having an unequal relationship with the united and strong
core.
3. Politics and economics are related. They can not be understood apart from each other.
Economic ties and relationships between core and periphery countries are particularly
important. These are advantageous for the core, and disadvantageous for the periphery. Core-
periphery trading patterns result in continuous growth of political and economic power for the
core at the expense of the periphery. Economic trade causes a widening of the gap between
developed and developing countries, rather than a narrowing of that gap. Historically, lower
priced raw materials have been exchanged for higher priced finished goods.

4. It follows from #3 that underdevelopment is not a natural state, but rather a condition that is
caused. The fact is that developed nations are actively underdeveloping Third World
countries as a result of the systems of interactions between them.

5. Put another way, the underdevelopment of weak Third World countries is directly related to,
and makes possible, the "development" of the powerful countries of the industrialized core. Both
the center and the periphery are part of the world political-economic system, and neither would
exist without the other.

6. Furthermore, so long as capitalism remains the dominant world economic system, there is no
reason for the situation of developed and underdeveloped countries to change.
Underdevelopment is not a temporary condition, as had been thought in the past, but is a
permanent condition. In fact, if the present world system does not change we can expect the core
to become more powerful and the periphery weaker in the future. Rather than "catching up" to
the developed countries, most currently underdeveloped countries will fall farther
behind. (In a limited number of cases, where exceptional circumstances exist, it may be possible
for an underdeveloped country to move from the periphery to the core.)

7. The worldwide system of relationships is duplicated within individual Third World

countries. There is a core area (usually the capital) which dominates and exploits the periphery
(interior) of the country. The nation's centers of economic, political, cultural, and military power
are found in the national core, and the core's power and wealth grows more rapidly than that of
the interior as a result of contacts and interactions between the two areas. The urban sector
becomes increasingly powerful, while the rural sector becomes increasingly weaker. Resources
flow from the periphery to the center. The core profits at the expense of the periphery as a result
of the movement of products and resources. The passage of time does not bring a growing
equality within the country, but rather brings about an increasing gap between life in the capital
and that in the countryside. 8. In a sense, national leaders in the capital exploit the people for
their own personal benefit and power. Consequently, these "national" leaders could really be
conceptualized as agents of the international system. Their national power and prominence
derive from their international contacts. It is they (the military, government officials, and
commercial and financial leaders) who act as links between the Third World country and the
world political and economic system. They direct the country's contacts with the world, and they
direct those contacts in such a way that the world core benefits more than their own country,
although they themselves clearly benefit at a personal level. These national leaders may actually
have more in common with their counterparts in London or New York than they do with interior
citizens of their own country. (style of dress, food, literature, housing, travel, economic interests,
etc.)

SOLUTIONS

Not only do dependency theorists present a conceptual framework for analyzing Third World
politics, they also suggest several "solutions" for the central problem of inequality. The range of
solutions is wide, for there is a great deal of variety among dependency theorists. At one extreme
are those we might call the "moderates," including men such as Raul Prebisch. They argue that
Third World countries can take steps to improve their situation. One suggestion would be the
formation of common markets, trading blocs, or cartels. The idea is that Third World countries
share many common economic and trading problems in their relations with the industrialized
core. By joining together and presenting a common front to the core they will gain leverage, and
be able to secure greater advantages from their interactions with world core countries. By
forming groups or cartels the periphery nations will have more power than any individual Third
World country has in its relations with the core.[So far this "cartel" solution has proven elusive,
due to technological innovations which replace natural products, flexible demand at the core, and
cartel "cheaters".]
A second suggestion for improving the situation is to force Third World country elites to
confront their country's condition of dependency, and take voluntary steps to alter it. Thus elites
in the capital might be convinced to use some of their wealth to invest in national construction
projects or literacy programs, rather than importing luxury automobiles or taking expensive
vacations abroad. The goal is for the elites to suspend their selfish habits of conspicuous
consumption, and to use their wealth for national development. The elites would be encouraged
to invest in their home countries, rather than abroad. Attempts to change elite behavior have
generally not been very successful.

More radical dependency theorists call for revolutionary solutions. They argue that it is
unrealistic to expect those currently in positions of power to take voluntary actions which would
be personally disadvantageous. Altruistic solutions are nice in the abstract, but are unlikely to be
implemented in reality. The only realistic solution is revolutionary action to rid the country of
those leaders who have betrayed it, and to institute sweeping revolutionary change to end
inequality.

It should be noted in conclusion that the dependency position is fundamentally anti-status quo.
Dependency theorists argue that existing national and international economic and political
systems are the cause of their unjust situations. They call for systemic change to solve the
problems. They want abrupt, non-linear, fundamental change. Rather than endorsing and
embracing stability, they call for radical change. Their perceptions, analytical approach, and
solutions are vastly different from those of diffusion or order approach theorists. Stability is the
solution for order theorists; stability is the problem for dependency theorists.

Diagram 1. Dependency Theory View of the World

Diagram 2. Dependency Theory View of the Relationship between
the National Core, the Rest of the Nation, and the World System
The debates among the liberal reformers Prebisch, the Marxists – Andre Gunder Frank, and the
world-systems theorists – Wallerstein was vigorous and intellectually quite challenging. There
are still points of serious disagreement among the various strains of dependency theorists and it
is a mistake to think that there is only one unified theory of dependency. Nonetheless, there are
some core propositions which seem to underlie the analyses of most dependency theorists.

THE NEO- CLASSICAL COUNTER REVOLUTION

 Market fundamentalism;

Background;

Developed in 1980s by cons elative gouts of the United States Canada, Britain, and West
German being taken as a political ascendance

ARGUMENTS

The central argument of neo classical counterrevolution is that underdevelopment results from
poor resource allocation due to incorrect pricing policies and two much state intervention by
overly active developing –national governments.

According to them if you permit competitive free markets to flourish, privatize state owned
enterprises, promote free trade and export expansion, welcome investors from developed
countries and eliminate the plethora of government regulations and price distortions in factor,
product and financial markets both economic growth and efficiency will be stimulated.

COMPONENTS APPROACHES OF THE THEORY

i. Free market approach

ii. The public choice/ new political economy approach

iii. The market friendly approach

(A) FREE MARKET APPROACH

They argue that market alone are enticement let the force of demand and supply control the
market and the government exercise zero inter-version, assuming that there is perfect technology
freely available, information.

(B) PUBLIC CHOICE THEORY

Goes further by arguing that the government can do nothing right because this theory assumes
that politician’s bureaucrats, citizens and states act solely from a self- interested perspective
using their power and au authority of government for their own selfish ends. Citizens use
political influence to obtain special benefits called RENTS. From government policies e.g input
licenses, rationed foreign exchange that restrict in access to important resources.

Politicians use government resources to consolidate and maintain positions of power and
authority. Bureaucrats and public officials use their positions to extract bribes from rent seeking
citizens. Since the Government use their power to confiscate property from individual and thus
result not only in misallocation of resources but also a general reduction in individual freedoms
there should be minimal government. Minimal government refers to the one that exercises less or
minimum intervention in the operations of the Market

(C) MARKET FRIENDLY APPROACH

Is more recent and argue that there are more imperfections in LDCs product and factor markets
and that government they do have a key role to play in facilitating the operation of markets
through “nonselective” market friendly interventions like investing in physical and social
infrastructures, health care facilities and educational institutions and by providing a suitable
climate for private enterprise

CRITISM

1. Failed illuminate sources of heavy term economic growth

CONTEMPORARY MODELS OF DEVELOPMENT AND UNDERDEVELOPMENT

i. This theory resembles and contradicts somewhat to that of neo – classical but go far
beyond in its assumptions by bringing gaps of the former as follows;

a) It provides a theoretical framework for analyzing endogenous growth, president G N I

growth that is determined by the system governing the production process rather than by
force outside that system.

b) They help explain anomalous international flow of capital that exacerbate wealth disparities
between developed and developing countries, they argue that the potentially high rates of
return on investment offered by developing economies with low capital labour ratios are
greatly eroded by lower levels of complementary investments in human capital (education),
infrastructures, research and development etc. in turn poor countries benefit less from the
broader social gains associated with each of these alternatives forms of capital expenditure.
According to this theory when complementary investments produce social as well as
private benefits government may improve the efficiency of resource allocation they can be
do this by providing public goods (infrastructure) or encouraging private investment in
knowledge intensive industries where human capital can be accumulated and subsequent
increasing returns to scale generated.

c) This model explains technological change as an endogenous outcome of public and private
investments in human capital and knowledge intensive industries. Unlike neo- classical
theories this theory suggest an active role of state public policy in promoting economic
development through direct and indirect investment in human capital formation and the
encouragement of foreign private investment in knowledge intensive industries such as
 computer soft ware and telecommunications. It was supported by roomer model- addresses
technological spillover’s that may be present in the process of industrialization.

CRITISM

1. It is dependent on a number of traditional neo –classical assumptions that are often in

appropriate for LDC economies for example it assumes that there is but a single sector of
production or that all sectors are symmetrical. This does not permit the circular growth-
generating reallocation of labor and capital among the sectors that are transformed during the
process of structural transformation change.

2. The theory over locks some factors in the third would economies that hinder development
such as inefficiency arising from poor infrastructure in adequate institutional structures and
imperfect capital and good markets.

3. The theory neglects the impacts on shut and medium term growth resulting from allocation in
efficiencies that are common in economies undergoing the transition from tradition to
commercialized markets.

4. Empirical studies of predictive value of endogenous growth theories have to date offered
only limited support.

5. Under development as a coordination failure;

Coordination failure approach comprises a set of theories developed in 1990’s and early
years of 21st century that subject underdevelopment to coordination failure.

Coordination failure is a state of affairs in which agents inability to coordinate their behavior
(choices) leads to an outcome (equilibrium) that leaves all agents course off than in an
alternative situation that is also an (equilibrium) This may happen even when all agents are
fully informed about the preferred alternative equilibrium ie They simply can’t get there due
 to difficulties of coordination sometimes because people hold different expectations and
sometimes because everyone waits for someone to take the first move.

Coordination failure approach emphasizes complementarities between several conditions

necessary for successful development. When complementarities are present an action taken
by one firm worker, organization, or government increases the incentives for other agents to
take similar action. These complementarities often involve investments whose return depends
on the investments being made by other agents. Coordination failure approaches can be
supported by the big-push model as example. Big push Model- Production decision by
modern sector firms are mutually reinforcing. O-ring Models the value of upgrading skills or
equality depends on similar upgrading by other agents.

CHAPTER 2: GLOBALIZATION AND DEVELOPMENT

Meaning and conceptualization

Globalization is reshaping how we have traditionally gone about studying the social world and
human culture and a field of globalization studies is now emerging across the disciplines
(Appelbaum and Robinson, 2005). These globalization studies arose around several sets of
phenomena that drew researchers’ attention from the 1970s onwards (Robinson 2007). One was
the emergence of a globalized economy involving new systems of production, finance and
consumption and worldwide economic integration. A second was new transnational or global
cultural patterns, practices and flows, and the idea of ‘global culture(s)’. A third was global
political processes, the rise of new transnational institutions, and concomitantly, the spread of
global governance and authority structures of diverse sorts. A fourth was the unprecedented
multidirectional movement of peoples around the world involving new patterns of transnational
migration, identities and communities. Yet a fifth was new social hierarchies, forms of
inequality, and relations of domination around the world and in the global system as a whole.
The scholarly literature on these phenomena has proliferated, as have specific studies of the
impacts of globalization on particular countries and regions and on gender and ethnicity, not to
mention much pop treatment of the subject. Recent research agendas have branched out into an
enormous variety of topics, from transnational sexualities, to global tourism, changes in the state,
the restructuring of work, transnational care-giving, globalization and crime, the global media,
and so on. This explosion of research points to the ubiquity of the effects of globalization. All
disciplines and specializations in the academy, it seems, have become implicated in globalization
studies, from ethnic, area and women’s studies, to literature, the arts, language and cultural
studies, the social sciences, history, law, business administration, and even the natural and
applied sciences.

While there is much disagreement among scholars on the meaning of globalization and on the
theoretical tools that are best to understand it, we can identify a number of points with which, it
is safe to say, most would agree. First, the pace of social change and transformation worldwide
seems to have quickened dramatically in the latter decades of the twentieth century, with
implications for many dimensions of social life and human culture. Second, this social change is
related to increasing connectivity among peoples and countries worldwide, an objective
dimension, together with an increased awareness worldwide of these interconnections, a
subjective dimension. As well, most would agree that the effects of globalization – of those
economic, social, political, cultural and ideological processes to which the term would allegedly
refer – are ubiquitous, and that different dimensions of globalization (economic, political,
cultural, etc.) are interrelated, ergo, that globalization is multidimensional. At this point
agreement ends and debates heat up. How different theoretical approaches address a set of basic
assumptions – what we will call ‘domain questions’ – will tend to reveal the domain of each
theory and the boundaries among distinct and often competing theories. Theories consist of
particular ontological assumptions and epistemological principles, both of which are of concern
in examining globalization theories.

Perhaps the most important ‘domain question’, and one that cuts to the underlying ontological
issue in globalization studies, is ‘when does globalization begin?’ The rise of globalization
studies has served to reassert the centrality of historical analysis and the ongoing
reconfigurations of time and space to any understanding of human affairs. How we view the
temporal dimension will shape – even determine – what we understand when we speak of
globalization. Among globalization theories there are three broad approaches. In the first, it is a
process that has been going on since the dawn of history, hence a 5,000–10,000 year time frame.
In the second, it is a process coterminous with the spread and development of capitalism and
modernity, hence a 500 year frame. In the third, it is a recent phenomenon associated with such
processes of post-industrialization, post modernization or the restructuring of capitalism, hence a
20–30 year frame.

A second ‘domain question’ is that of causal determination(s) in globalization. Is the core of the
process economic, political or cultural? Is there an underlying material or an ideational
determinacy? Are there multiple determinations, and how would they be ordered? Whether
distinct globalization theories choose to give a causal priority or empirical emphasis to the
material or the ideational will depend on the larger metatheoretical and even philosophical
underpinnings of particular theories, but as well on normative and political considerations. Other
major domain questions are:

i. Does globalization refer to a process (as I have been assuming here) or to a condition?
Most theories would see it as a process of transformation, and some theorists therefore
refer to globalization as a process and globalization as a condition.

ii. How do modernity and post modernity relate to globalization?

iii. What is the relationship between globalization and the nation-state? Is the nation-state
being undermined? Has it retained its primacy? Or is it becoming transformed in new
ways? Does globalization involve internationalization, seen as an increased intensity of
exchanges among nation-states, or transnationalization, involving emerging structures,
processes and phenomena that transcend the nation-state system?

iv. Relatedly, to what extent is the relationship between social structure and territoriality
being redefined by globalization? Is there a deterritorialization of social

v. How different theories of the core ontological and epistemological claims of each theory?

If we are to agree that globalization is the process of increased conectedness of the globe is such
a way that it transforms from collectivities to a synchronized world where people in the globe
live as if they were in a single village, then such process underwent through three phases namely
industrialization, exploration of the unknown world and modernization of the communication
world.
Historical Development of Globalization

First phase of Globalization/Globalization (1492– 1820)

During this phase the World shrank from Size large to size medium. Included events like
Exploration and colonization drive success. Countries began to think globally to thrive.
Christopher Columbus and other Adventurers broke silence of the so called old world and came
up with a new dimension of the world map. The outcome of their works integrated Western
Europe with the rest of the world. It was this time when Asia, North America was discovered and
later Latin America, Africa and so on. At the beginning, during the so called Dark Continent
error, less was known about Africa and the rest of the world, however with time commercial
links exposed the unknown about Africa and the rest of the world and inspired the west for
further and deeper mechanical integration due to crude communication technology. Gradually
but surely one could see Europe in Asia, Latin America and Africa in the form of colonial
expansion of the western world of which some referred the colonies as expansion of the
metropolitan countries.

Second phase of Globalization (1821 to 1999)

During this time the World shrank from size medium to size small. Involved events like
Collaboration between international companies, Companies were forced to think globally to
survive. During this time the commercial world and thus development world experience a mega
advantage in the so called first half falling transportation cost and second half falling telecom
costs.

In the picture you can see clearly the technological advancement which facilitated mechanical
globalization though more sophisticated if compared to the first phase. At the beginning
transportation and communication cost declined sharply following invention of transportation
means such as railway locomotives and steam engine as it is seen in the picture. During the
second half of the phase the world experienced other advanced communication technology such
as mobile phones, sophisticated machineries, wide spread internet and information technology
which has made the globe even smaller than before.
This has been a key to the 21st century where the world has been more closely interconnected and
interactions has taken all forms of life ranging from politics, commerce, economics, cultural,
military and so on.

Third phase of Globalization (2000 – to Present Globalization)

During this phase the world further shrank from size small to size tiny. As it is now, we live as if
we were in the same house where not only states integrates, rather the integrations has gone far
to include Individuals and small groups powered by exciting discoveries in information
technology. Globalization is now driven by diverse group of all nationalities. Face booking,
twitting and other global social networks have made the globe more tiny is such a way that
distance and physical barriers like National boundaries are no longer significant in development.
For example billions of entrepreneurs are into cyber business in which suppliers and consumers
do not necessarily meet, all is done online. To make things more exciting, the current phase of
globalization most of the products involved in international trade are intangible products mostly
in the form of services which can be sold and bought online. Physical and tangible technologies
which were transported from the western world in the 19th and 20th century is now made to be
produced in the destination countries, leaving current practice to be preoccupied by service
sector. For example medicine formally produced in the western world now has shifted to middle
Asian countries; Africa and Latin America while the west rank highest in service sector. There
are arguments that 21st century business is in service sector while the rest is left to the latecomers
in development.

Figure: Third phase of Globalization

Source: Friedman, L. T., (2005)

From the 15th century (when globalization started to date), the world has shrunk and became
more flat than ever. Shrinking of the world has not been physical but its impacts are real and felt
by all aspects of development ranging from social, cultural, political to economic orientations.
One cannot forget what has done in politics for example in the so called Arab spring within this
decade where long term and powerful leaders like President Mubarak of Egypt and Muhammad
Gadaffi of Libya, Tunisia and stabilities in Syria, powered by information technology in the form
of social media.. It is obvious that globalization forces though invisible it is powerful weapon
than chemical weapons.

THEORIES OF GLOBALIZATION

1. World-system theory

Some see the world-system paradigm as a ‘precursor’ to globalization theories, and indeed, as
Arrighi has observed, ‘world-systems analysis as a distinctive sociological paradigm emerged at
least 15 years before the use of globalization as a signify that blazed across the headlines and
exploded as a subject of academic research and publication’ (Arrighi 2005: 33). Yet what is
distinctive to world-systems theory is not that it has been around longer than more recent
globalization theories. Rather, this paradigm – and certainly its principal progenitor, Immanuel
Wallerstein – tends to view globalization not as a recent phenomenon but as virtually
synonymous with the birth and spread of world capitalism, c. 1500. World-systems theory shares
with several other approaches to globalization a critique of capitalism as an expansionary system
that has come to encompass the entire world over the past 500 years. As elaborated by
Wallerstein, it is constituted on the proposition that the appropriate unit of analysis for
macrosocial inquiry in the modern world is neither class, nor state/society, or country, but the
larger historical system, in which these categories are located. The capitalist world-economy that
emerged c. 1500 in Europe and expanded outward over the next several centuries, absorbing in
the process all existing minisystems and world-empires, establishing market and production
networks that eventually brought all peoples around the world into its logic and into a single
worldwide structure. Hence, by the late nineteenth century there was but one historical system
that had come to encompass the entire planet, the capitalist world system, a truly ‘global
enterprise’ (1974). It is in this sense that world-system theory can be seen as a theory of
globalization even if its principal adherents reject the term globalization (see below). A key
structure of the capitalist world-system is the division of the world into three great regions, or
geographically based and hierarchically organized tiers. The first is the core, or the powerful and
developed centres of the system, originally comprised of Western Europe and later expanded to
include North America and Japan. The second is the periphery, those regions that have been
forcibly subordinated to the core through colonialism or other means, and in the formative years
of the capitalist world-system would include Latin America, Africa, Asia, the Middle East and
Eastern Europe. Third is the semi-periphery, comprised of those states and regions that were
previously in the core and are moving down in this hierarchy, or those that were previously in the
periphery and are moving up. Values flow from the periphery to the semi-periphery, and then to
the core, as each region plays a functionally specific role within an international division of
labour that reproduces this basic structure of exploitation and inequality.

Another key feature of this world-system is the centrality and immanence of the inter-state
system and inter-state rivalry to the maintenance and reproduction of the world-system. The
world-system paradigm does not see any transcendence of the nation-state system or the
centrality of nation-states as the principal component units of a larger global system. Other
structural constants in the world-system are cyclical rhythms of growth and crisis, several secular
trends such as outward expansion, increasing industrialization and commoditization, struggles
among core powers for hegemony over the whole system, and the oppositional struggles of ‘ant
systemic forces’.

Some would consider the world-system approach not a theory of globalization but an alternative
theory of world society. This, however, would depend on how we define the contested concept of
globalization. If a bare-bones definition is intensified interconnections and interdependencies on
a planetary scale and consciousness of them, then certainly world-system theory is a cohesive
theory of globalization, organized around a 500 year time scale corresponding to the rise of a
capitalist world-economy in Europe and its spread around the world, and must be included in any
survey of globalization theories.

On the other hand, however, it is not self-identified as a theory of globalization, is not a theory of
the worldwide social changes of the late twentieth and early twenty-first centuries, and there is
no specifi c concept of the global in world-system literature. Wallerstein has himself been
dismissive of the concept of globalization. ‘The processes that are usually meant when we speak
of globalization are not in fact new at all. They have existed for some 500 years’ (2000: 250).
Wallerstein has put forward an explanation of late twentieth/early twenty-first century change
from the logic of world-system theory as a moment of transition in the system. In an essay titled
‘Globalization or the Age of Transition?’ (2000), he analyzes the late twentieth and early twenty-
first century world conjuncture as a ‘moment of transformation’ in the world-system, a
‘transition in which the entire capitalist world-system will be transformed into something else’
(2000: 250). In this analysis, the system has entered into a terminal crisis and will give way to
some new, as of yet undetermined historical system by the year 2050. Wallerstein’s thesis on the
terminal crisis of the system can be said to provide an explanation for social change in the age of
globalization consistent with his own world-system theory.

Theories of global capitalism

Another set of theories, what I catalogue here as a global capitalism school, shares with the
world-systems paradigm the critique of capitalism, an emphasis on the long-term and large-scale
nature of the processes that have culminated in globalization, and the centrality of global
economic structures. Yet this group of theories differs from the world-system paradigm in
several essential respects. In particular, these theories tend to see globalization as a novel stage in
the evolving system of world capitalism (hence these theorists tend to speak of capitalist
globalization), one with its own, qualitatively new features that distinguish it from earlier epochs.
They focus on a new global production and financial system that is seen to supersede earlier
national forms of capitalism, and emphasize the rise of processes that cannot be framed within
the nation-state/inter-state system that informs world-system theory – and indeed, much
traditional macrosocial theory. Sklair (2000, 2002) has put forward a ‘theory of the global
system’, at the core of which are ‘transnational practices’ (TNPs) as operational categories for
the analysis of transnational phenomena. These TNPs originate with non-state actors and cross-
state borders. The model involves TNPs at three levels: the economic, whose agent is
transnational capital; the political, whose agent is a transnational capitalist class (TCC); and the
cultural-ideological, whose agent is cultural elite. Each practice, in turn, is primarily identified
with a major institution. The transnational corporation is the most important institution for
economic TNPs; the TCC for political TNPs; and the culture-ideology of consumerism for
transnational cultural- ideological processes. Locating these practices in the field of a
transnational global system, Sklair thus sets about to explain the dynamics of capitalist
globalization from outside the logic of the nation-state system and critiques the ‘state-centrism’
of much extant theorizing. His theory involves the idea of the TCC as a new class that brings
together several social groups who see their own interests in an expanding global capitalist
system: the executives of transnational corporations; ‘globalizing bureaucrats, politicians, and
professionals’, and ‘consumerist elites’ in the media and the commercial sector (Sklair 2000).
Robinson (2003, 2004) has advanced a related theory of global capitalism involving three planks:
transnational production, transnational capitalists and a transnational state. An ‘epochal shift’ has
taken place with the transition from a world economy to a global economy. In earlier epochs,
each country developed a national economy that was linked to others through trade and finances
in an integrated international market. The new transnational stage of world capitalism involves
the globalization of the production process itself, which breaks down and functionally integrates
what were previously national circuits into new global circuits of production and accumulation.
Transnational class formation takes place around these globalized circuits. Like Sklair, Robinson
analyzes the rise of a TCC as the class group that manages these globalized circuits.
Transnational oriented fractions achieved hegemony over local and national fractions of capital
in the 1980s and 1990s in most countries of the world, capturing a majority of national state
apparatuses, and advancing their project of capitalist globalization. Globalization creates new
forms of transnational class relations across borders and new forms of class cleavages globally
and within countries, regions, cities and local communities, in ways quite distinct from the old
national class structures and international class conflicts and alliances.

However, in distinction to Sklair, for whom state structures play no role in the global system,
Robinson theorizes an emergent transnational state (TNS) apparatus. A number of globalization
theories see the rise of such supranational political and planning agencies as the Trilateral
Commission, the World Economic Forum, the Group of Seven and the World Trade
Organization, as signs of an incipient transnational or global governance structure (see, inter
alia, Held et al. 1999). Robinson, however, wants to get beyond what he sees as a national-global
duality in these approaches. This TNS is a loose network comprised of supranational political
and economic institutions together with national state apparatuses that have been penetrated and
transformed by transnational forces. National states as components of a larger TNS structure now
tend to serve the interests of global over national accumulation processes. The supranational
organizations are staffed by transnational functionaries who find their counterparts in
transnational functionaries whose staff transformed national states. These ‘transnational state
cadres’, act as midwives of capitalist globalization. The nature of state practices in the emergent
global system ‘resides in the exercise of transnational economic and political authority through
the TNS apparatus to reproduce the class relations embedded in the global valorization and
accumulation of capital’. Hardt and Negri’s twin studies, Empire (2000) and Multitude (2004),
have been referred to by some as a postmodern theory of globalization that combines Marx with
Foucault. They take the global capitalism thesis a step further, proposing an empire of global
capitalism that is fundamentally different from the imperialism of European domination and
capitalist expansion of previous eras. This is a normalized and decentred empire – a new
universal order that accepts no boundaries and limits, not only in the geographic, economic and
political sense, but in terms of its penetration into the most remote recesses of social and cultural
life, and indeed, even into the psyche and biology of the individual. While for Sklair and
Robinson the TCC is the key agent of capitalist globalization, for Hardt and Negri there is no
such identifiable agent. In more Foucaultian fashion, an amorphous empire seems to be a
ubiquitous but faceless power structure that is everywhere yet centred nowhere in particular and
squares off against ‘the multitude’, or collective agencies from below.

Other variants of the global capitalism thesis have been taken up by McMichael (2000), Ross and
Trachte (1990), and Went (2002), among others. There is as well a considerable amount of
theoretical work on globalization among international relations (IR) scholars, a subdiscipline that
has come under special challenge by globalization given that it is centrally concerned – by
definition – with the state system and the interstate system. Here there is a tension between those
theories that retain a national/international approach and view the system of nation-states as an
immutable structural feature of the larger world or inter-state system, and those that take
transnational or global approaches that focus on how the system of national states and national
economies are becoming transcended by transnational social forces and institutions grounded in
a global system rather than the interstate system. Notable here is the ‘neo-Gramscian school’ in
IR, so-called because these scholars have applied the ideas of Antonio Gramsci to attempt to
explain changes in world power structures and processes from a global capitalism perspective.
Scholars from the neo-Gramscian school have been closely identified with the works of Cox
(see, esp., 1987), and have explored the rise of new global social forces and sets of transnational
class relations, and internationalization of the state, and transnational hegemony and counter-
hegemony in global society.

THE NETWORK SOCIETY

Manuel Castells’ ground breaking trilogy, The Rise of the Network Society (1996, 1997, 1998),
exemplifies a ‘technologistic’ approach to globalization. While his theory shares with world-
system and global capitalism approaches an analysis of the capitalist system and its dynamics, it
is not the logic of capitalist development but that of technological change that is seen to exercise
underlying causal determination in the myriad of processes referred to as globalization. Castells’
approach has been closely associated with the notion of globalization as representing a new ‘age
of information’. In his construct, two analytically separate processes came together in the latter
decades of the twentieth century to result in the rise of the network society. One was the
development of new information technology (IT), in particular, computers and the Internet,
representing a new technological paradigm and leading to a new ‘mode of development’ that
Castells terms ‘informationalism’. The other was capitalist retooling using the power of this
technology and ushering in a new system of ‘information capitalism’, what Castells and others
have alternatively referred to as the ‘new economy’. This new economy is: (1) informational,
knowledge-based; (2) global, in that production is organized on a global scale; and (3)
networked, in that productivity is generated through global networks of interaction. Castells’
definition of the global economy is an ‘economy with the capacity to work as a unit in real time,
or to choose time, on a planetary scale’, and involving global financial markets, the globalization
of trade, the spread of international production networks, and the selective globalization of
science and technology. A key institution of this new economy is the ‘networked enterprise’,
which Castells sees as the vanguard of a more general form of social organization, the network
society itself. This involves a new organizational logic based on the network structure in
interaction with the new technological paradigm. The network form of social organization is
manifested in different forms in various cultural and institutional contexts. Here Castells, along
with global capitalism approaches, that of Harvey, Lash and Urry (1987), Cox (1987), and
others, draw on a number of strands of late twentieth-century political economy scholarship,
especially that of post-Fordism and flexible accumulation, involving a breakdown of the old
rigid, vertical corporate structures and the rise of new horizontal and flexible structures. In
Castells’ view, ‘the networked enterprise makes material the culture of the informational, global
economy: it transforms signals into commodities by processing knowledge’ (1996: 188). Castells
goes on to argue that the image of giant transnational corporations (TNCs) as centralized
structures driving the global economy is ‘outdated’ and ‘should be replaced by the emergence of
international networks of firms and of subunits of firms, as the basic organizational form of the
informal, global economy’ (1996: 206–7).

Castells sees a close linkage between culture and productive forces in this informational mode of
development due to the centrality of the symbolic order, of sign production, and of consumption
to IT. Indeed, Castells’ approach can be seen as much a cultural as an economic theory of
globalization. Human society has moved from a verbal order in pre-literate societies to an
alphabetic order and later an audiovisual system of symbols and perceptions. In the globalized
age this gives way to the integration of various modes of communication into an interactive
network involving the formation of hypertext and a meta-language integrating into a single
system the written, oral and audiovisual (or text, image and sound) modalities of human
communication. This interaction takes place along multiple points in a global network,
fundamentally changing the character of communications. In turn, ‘communication decisively
shapes culture because we do not see . . . reality as it “is” but as our languages are’. He adds, ‘we
are not living in a global village, but in customized cottages, globally produced and locally
distributed’ (1996: 370).

The Internet, in this regard, constructs a new symbolic environment, global in its reach, which
makes ‘virtuality a reality’. One of Castells’ core concepts that capture this image is the space of
flows and timeless time. As a space of flows substitutes for the space of places, time becomes
erased in the new communications systems, ‘when past present and future can be programmed to
interact with each other in the same message’. The space of flows and timeless time become ‘the
material foundations of a new culture’ (1996: 406).

While the normative structure of world-system and global capitalism approaches is decidedly
critical of what those theories conceive of as globalization, Castells is more upbeat on the
possibilities opened up by the global network society. Nonetheless, a central theme is the
division of the world into those areas and segments of population switched on to the new
technological system and those switched off or marginalized, giving rise to the oft-cited digital
divide.

THEORIES OF SPACE, PLACE AND GLOBALIZATION

This notion of ongoing and novel reconfigurations of time and social space is central to a number
of globalization theories. It in turn points to the larger theoretical issue of the relationship of
social structure to space, the notion of space as the material basis for social practices, and the
changing territoriality/geography, institutions, and social structures. For Anthony Giddens, the
conceptual essence of globalization is ‘time-space distanciation’. Echoing a common
denominator in much, if not all, globalization theories, Giddens defines time-space distanciation
as ‘the intensification of worldwide social relations which link distant localities in such a way
that local happenings are shaped by events occurring many miles away and vice versa’ – social
relations are ‘lifted out’ from local contexts of interaction and restructured across time and space
(1990: 64). In a distinct variant of this spatial-temporal motif, David Harvey, in his neoclassic
1990 study The Condition of Post modernity, argues that globalization represents a new burst of
‘time-space compression’ produced by the very dynamics of capitalist development. While
Harvey’s concept is similar to that of Giddens, the former’s involves a normative critique of the
global capitalist order and its restructuring whereas the latter would seem to be almost
celebratory. What Harvey means by time-space compression is the process whereby time is
reorganized in such a way as to reduce the constraints of space, and vice-versa. Here Harvey is
close to the global capitalism thesis (although he does not refer specifically to a new epoch in the
history of world capitalism), and as well to world system theory, in that a key causal determinant
in the new burst of time-space compression that started in the late twentieth century was the
cyclical crises of capitalism. In particular, the world economic crisis that began in the early
1970s led to the breakdown of the old Fordist-Keynesian model and the development of flexible
accumulation models. Drawing on Marx’s analysis of accumulation crises, Harvey shows how
each major crisis in the historical development of capitalism has been resolved, in part, with new
forms of social organization of capitalism made possible by new technologies and predicated on
successive waves of time-space compression. And Harvey also makes reference to Marx’s
characterization of capitalist expansion as the ‘annihilation of time through space’.

The matter of a transformation in the spatial dynamics of accumulation and in the institutional
arrangements through which it takes place is taken up by Saskia Sassen, whose works have
generated new imageries of a restructuring of space and place under globalization. Sassen’s
modern classic The Global City (1991) has had an exceptionally broad impact across the
disciplines and left an indelible mark on the emergent field of globalization studies. Sassen’s
study is grounded in a larger body of literature on ‘world cities’ that view world-class cities as
sites of major production, finances or coordinating of the world economy within an international
division of labour, and more recent research on ‘globalizing cities’ (see, e.g., Marcuse and van
Kempen 2000). Sassen proposes that a new spatial order is emerging under globalization based
on a network of global cities and led by New York, London and Tokyo. These global cities are
sites of specialized services for transnational mobile capital that is so central to the global
economy. This global economy has involved the global decentralization of production
simultaneous to the centralization of command and control of the global production system
within global cities. Here Sassen draws on the basic insight from the sociology of organization
that any increase in the complexity of social activity must involve a concomitant increase in the
mechanisms of coordination. Global cities linked to one another become ‘command posts’ of an
increasingly complex and globally fragmented production system. It is in these cities that the
myriad of inputs, services and amenities are to be found that make possible centralized
coordination. In Sassen’s words, ‘the combination of spatial dispersal and global integration has
created a new strategic role for major cities’ (1991: 3).

Sassen identifies four key functions of the global city: (1) they are highly concentrated command
posts in the organization of the world economy; (2) they are key locations for finances and for
specialized service firms providing ‘producer services’, which are professional and corporate
services inputs for the leading global firms such as finances, insurance, real estate, accounting,
advertising, engineering and architectural design; (3) they are sites for the production and
innovation of these producer services and also headquarters for producer-service firms; (4) they
are markets for the products and innovations produced and in these cities. Sassen documents how
New York, London and Tokyo as the quintessential global cities have structured from
manufacturing centres to producer service centres, and how producer service activities become
‘networked’ across global cities. The social order of the global city shatters the illusions of the
affluent service economy proposed by such commentators as Bell (1976) and Toffler (1980).
Producer service jobs are global economy jobs, yet they involve a new class and spatial
polarization, involving new high-income sectors involved in professional work such as
investment management, research and development, administration and personnel, and so on,
and enjoying affluent lifestyles made possible by the global economy.

On the other side are low income groups providing low-skilled services such as clerical,
janitorial, security and personal services. These low-income groups are largely constituted by
transnational migrants drawn from Third World zones. In these global cities we see a
concentration of new gendered and racialized transnational labour pools increasingly facing the
casualization and informalization of work. What this all represents is ‘a redeployment of growth
poles’ in the global economy. Global cities are new surplus extracting mechanisms vis-à-vis
transnational hinterlands. ‘The spatial and social reorganization of production associated with
dispersion makes possible access to peripheralized labor markets, whether abroad or at home,
without undermining that peripheral condition’ (Sassen 1991: 31). This new transnational
structure creates new forms of articulation between different geographic regions and transforms
their roles in the global economy. It involves as well a global hierarchy of cities. The stock
markets of New York, London and Tokyo, for example, are linked to those of a large number of
countries, among them Hong Kong, Mexico City, Sao Paolo and Johannesburg. Global cities
draw our attention to another leading motif in globalization theory, how to conceive of the local
and the global. Roland Robertson’s concept of globalizations suggests that the global is only
manifest in the local. By globalizations, Robertson means that ideas about home, locality and
community have been extensively spread around the world in recent years, so that the local has
been globalized, and the stress upon the significance of the local or the communal can be viewed
as one ingredient of the overall globalization process (Robertson 1995). For Appadurai, locality
is less a physical than ‘a phenomenological property of social life’ (1990: 182) and involves in
the age of globalization new translocalities, by which he means local communities located in
particular nation-states but culturally and phenomenological existing beyond the local and
national context (such as tourist localities). For others, the local-global link means identifying
how global processes have penetrated and restructured localities in new ways, organically
linking local realities to global processes. Burawoy and his students have called for a global
ethnography. Their diverse locally situated studies show how ‘ethnography’s concern with
concrete, lived experience can sharpen the abstractions of globalization theories into more
precise and meaningful conceptual tools’ (Burawoy et al. 2000: xiv).

THEORIES OF TRANSNATIONALITY AND TRANSNATIONALISM

Although limited in the questions it can answer, the study of global cities gives us a glimpse of
how transnationalized populations reorganize their spatial relations on a global scale, a topic
taken up as well, and with quite a different perspective, by theories of transnationality and
transnationalism. The former refers to the rise of new communities and the formation of new
social identities and relations that cannot be defined through the traditional reference point of
nation-states. The latter, closely associated, denotes a range of social, cultural and political
practices and states brought about by the sheer increase in social connectivity across borders.
Transnationalism is referred to more generally in the globalization literature as an umbrella
concept encompassing a wide variety of transformative processes, practices and developments
that take place simultaneously at a local and global level. Transnational processes and practices
are defined broadly as the multiple ties and interactions– economic, political, social and cultural
– that link people, communities and institutions across the borders of nation-states. Within the
field of immigration studies, transnationalism came to refer to the activities of immigrants to
forge and sustain multi-stranded social relations that link their societies of origin and settlement
as a single unified field of social action (Basch et al. 1994: 7). Innovations in transportation and
communications have made possible density and intensity of links not previously possible
between the country of origin and of settlement. This, in turn, has allowed for these communities
to live simultaneously in two or more worlds or to create and live in ‘transnational spaces’ to a
degree not previously known. Recognizing this new reality, the scholarly literature undertook a
paradigm shift from international migration to transnational migration, and began to refer to
these communities as transnational communities. Such communities come in different varieties,
including those formed by new immigrant groups migrating to First World countries, as well as
those older diasporic populations whose status and attitude is continuously influenced by the
accelerating pace of economic, cultural and institutional globalization.

Scholars such as Levitt (2001), Smith and Guarnizo (1998), and Portes and his colleagues
(1999), point to the novel character of transnational links in the era of globalization.
Transnational ties among recent immigrants are more intense than those of their historical
counterparts due to the speed and relatively inexpensive character of travel and communications
and that the impact of these ties is increased by the global and national context in which they
occur (Levitt 2001, Portes 1995; Portes et al. 1999). Transnational migration theorists have in
this regard questioned seemingly dichotomous and mutually exclusive categories, such as
external versus internal, national versus international, sending versus receiving countries,
sojourner versus settler, citizen versus non-citizen, and to look for continuities and overlaps
between and among them. Scholars working within the framework of transnationalism generally
see transnational links, activities and spaces as both an effect of globalization and as a force that
helps to shape, strengthen and fuel it. The immigrants and nonimmigrants that create these links
and spaces are seen not only as objects upon which globalization acts but also as subjects who
help to shape its course. Another set of questions these theories take up is the extent to which,
and in what ways, transnational practices increase the autonomy and power of the migrants and
nonmigrants engaged in them; to what extent transnational ties or spaces are liberating or to what
extent they reinforce or challenge existing power structures.
The concepts of transnationality and transnationalism have increasingly been given a broader
interpretation beyond immigration studies. In acknowledgment of the broad and expanding range
of experiences that are truly transnational, scholars have argued that the transnational experience
should be conceived as involving several layers and that transnationality should be understood as
a form of experience that cannot be restricted to immigrant groups (Roudometof 2005).

The experience involves, for instance, the transnational mobility of more affluent sectors, such as
professional and managerial groups. Transnationality must be seen as constructed through class
and racial boundaries and as a gendered process. Transnational social spaces can extend into
other spaces, including spaces of transnational sexuality, musical and youth subcultures,
journalism, as well as a multitude of other identities, ranging from those based on gender to those
based on race, religion or ethnicity. They also involve communities constructed by members of
professional and non-governmental associations (Kennedy and Roudometof 2002). Members of
cultural communities who live in different countries but remain connected to each other through
their cultural taste or pastimes may also construct transnational communities. Transnational
social spaces, hence, are constructed through the accelerated pace of transnational practices of
actors worldwide. These practices become routine to social life and may involve transient as well
as more structured and permanent interactions and practices that connect people and institutions
from different countries across the globe. Transnationalism/ality has also been central to theories
of ethnic group formation and racialization in global society. These theories have focused on
transnational immigrant labour pools and new axes of inequality based on citizenship and
noncitizenship (see, e.g., Espiritu 2003). A popular motif in post-colonial theory is a view of
globalization as a new phase in post-colonial relations (Wai 2002). Similarly, studies of
transnationalism have emphasized the gendered nature of transnational communities, changing
gender patterns in transnational migration, and the impact of globalization and transnationalism
on the family. There has been an explosion of research and theoretical reflection on women,
gender and globalization. Predicated on the recognition that the varied processes associated with
globalization are highly gendered and affect women and men differently, research has taken up
such themes as young women workers in export-processing enclaves, the feminization of
poverty, and the rise of transnational feminisms.
THEORIES OF GLOBAL CULTURE

Finally, a number of theories are centrally, if not primarily, concerned with the subjective
dimension of globalization and tend to emphasize globalizing cultural forms and fl ows, belief
systems and ideologies over the economic and/or the political. Such approaches distinctively
problematize the existence of a ‘global culture’ and ‘making the world a single place’ – whether
as a reality, a possibility or a fantasy. They emphasize the rapid growth of the mass media and
resultant global cultural flows and images in recent decades, evoking the image famously put
forth by Marshall McLuhan of ‘the global village’. Cultural theories of globalization have
focused on such phenomena as globalization and religion, nations and ethnicity, global
consumerism, global communications and the globalization of tourism.

For Robertson (1992), the rise of global or planetary consciousness, meaning that individual
phenomenologies will take as their reference point the entire world rather than local or national
communities, is part of a very conceptual definition of globalization. Such a global
consciousness means that the domain of reflexivity becomes the world as a whole. Hence ‘the
world has moved from being merely “in itself” to being “for itself” ’ (1992: 55). In Robertson’s
account, the gradual emergence of a global consciousness, an awareness of the world as a single
place, signals a Durkheimian collective conscience that becomes now a global consciousness.
Cultural theories of globalization tend to line up along one of three positions (Tomlinson 1999;
Nederveen Pieterse 2004). Homogenization theories see a global cultural convergence and would
tend to highlight the rise of world beat, world cuisines, world tourism, uniform consumption
patterns and cosmopolitanism. Heterogeneity approaches see continued cultural difference and
highlight local cultural autonomy, cultural resistance to homogenization, cultural clashes and
polarization, and distinct subjective experiences of globalization. Here we could also highlight
the insights of post-colonial theories. Hybridization stresses new and constantly evolving cultural
forms and identities produced by manifold transnational processes and the fusion of distinct
cultural processes. These three theses certainly capture different dimensions of cultural
globalization but there are very distinct ways of interpreting the process even within each thesis.
Ritzer (1993, 2002) coined the now popularized term ‘McDonaldization’ to describe the
Socialcultural processes by which the principles of the fast-food restaurant came to dominate
more and more sectors of US and later world society. Ritzer, in this particular homogenization
approach, suggests that Weber’s process of rationalization became epitomized in the late
twentieth century in the organization of McDonald’s restaurants along seemingly efficient,
predictable and standardized lines– an instrumental rationality (the most efficient means to a
given end) – yet results in an ever deeper substantive irrationality, such as alienation, waste, low
nutritional value and the risk of health problems, and so forth. This commodification and
rationalization of social organization spreads throughout the gamut of social and cultural
processes, giving us ‘McJobs’, ‘McInformation’, ‘McUniversities’, ‘McCitizens’ and so forth
(Ritzer 2002; Gottdiener 2000). As McDonaldization spreads throughout the institutions of
global society cultural diversity is undermined as uniform standards eclipse human creativity and
dehumanizes social relations.

Ritzer’s McDonaldization thesis is part of a broader motif in critical approaches to the cultural
homogenization thesis that emphasize ‘coca-colonization’, hyperconsumerism and a world of
increasingly Westernized cultural uniformity (indeed, ‘McWorld’). Ritzer has himself more
recently extended the McDonaldization thesis with the notion of the ‘globalization of nothing’
(2004), by which he means culturally meaningful institutions, sites and practices locally
controlled and rich in indigenous content – ‘something’ – are being replaced by (corporate
driven) uniform social forms devoid of distinctive substance – ‘nothing’. Another recurrent
theme among cultural theories of globalization is universalism and particularism. While some
approaches see particularisms as being wiped out others see cultural resistance, fundamentalism
and so on, a rejection of uniformity or universalism. A key problematic in these theories
becomes identity representation in the new global age.

Appadurai’s thesis on the ‘global cultural economy’ refers to what he sees as the ‘central
problem of today’s global interactions’, the tension between cultural homogenization and
cultural heterogenization (1990: 296). To illustrate this tension he identifies ‘global cultural
flows’ that ‘move in isomorphic paths’. These flows generate distinct images – sets of symbols,
meanings, representations and values – that he refers to as ‘scapes’, or globalized mental pictures
of the social world, perceived from the fl ows of cultural objects. These ‘scapes’ illustrate for
Appadurai what he refers to as a disjunctive order, or a disjuncture between economy, culture
and politics in the globalization age. Ethnoscapes and produced by the flows of people
(immigrants, tourists, refugees, guest workers, etc.). Technoscapes are produced from the flows
of technologies, machinery and plant flows produced by TNCs and government agencies.
Financescapes are produced by the rapid flows of capital, money in currency markets and stock
exchanges. Mediascapes are produced by the flow of information and are repertoires of images,
flows produced and distributed by newspapers, magazines, television and film. Finally,
ideoscapes involve the distribution of political ideas and values linked to flows of images
associated with state or counter-state movements, ideologies of freedom, welfare, right, and so
on. These different flows, in Appadurai’s view, create genuinely transnational cultural spaces
and practices not linked to any national society and may be novel or syncretic; hence a
disjuncture between culture and the economy and culture and politics.

IMPACTS OF GLOBALIZATION ON DEVELOPMENT

There is a close link between globalization and development of individuals, communities’

countries and the glob at large. Here we summarize sum of the impacts realized since 15 th
century in various countries of the globe.

 Positive impacts of Globalization

i. Facilitate collective responsibility in global safety and security

ii. Facilitate communication in the society for fast development

iii. Promote foreign direct investment by making investment information available to

everyone in the globe

iv. Facilitate international transfer of technology and capital

v. Create international job opportunities for all members of the globe

vi. Creates conducive atmosphere for business based on comparative and competitive
advantages of various countries and non state actors in the world market

vii. Increase possibility of cultural transfusion in which development culture replace un

development culture. For example respect for time resource, hard work and honesty
from one country is used as benchmark in another country.
 Negative impacts of Globalization

I. Loss of cultural identities of member states of the globalized world

II. Insecurity to some poor states by powerful states when they are looking for certain self-
interests as in the case of US in Iraqi, NATO forces in Libya, France in Ivory Coast
and elsewhere.

III. Moral corruption due to rapid spread of indecent cultural values from one society to
another

IV. Overexploitation of resources and rapid rate of environmental degradation hence increase
in poverty and global climatic change

V. Rapid spread of disease. Habits like sexual tourism facilitated by globalization put host
countries vulnerable to venereal diseases infections as well as other diseases like
Ebola to mention a few.

VI. Rapid spread of terrorist threats. Globalization facilitates international

communication which in turn facilitates rapid spread of terrorist ideas and related
threats.
CHAPTER 3: SCIENCE AND TECHNOLOGY IN GROWTH AND
DEVELOPMENT.

3.1 Defining Science and technology

SCIENCE

According to Encyclopedia Britannica vol. 27, 1991):32 argue that on the simplest level science
is knowledge of the world of nature”.

According to this source the word science etymologically comes from a Latin word SCIENTIA
which means knowledge. This knowledge should not be 100% human construct but should be
based on facts about natural principles and how they work although interpretations of those
principles may differ depending on the ideologies, culture and other basis that inform
interpreters.

Thus knowledge about principles of the world of nature in which some are known and some are
not known constitute what we call science. E.g. of such principles of nature or regularities
include.

Repetition of movements by sun and moon that cove late to seasons of the year seasons
determine the migration of animal’s growth of various plants. Principle of floatation of fish,
Principle of terrestrial movements e.t.c in short science is a systematic body of knowledge about
principles of regularities of the world such principles can be either social or physical.

• Types of science:-

1. Physical science/Hard science eg. Physical chemistry etc.

2. Social Science eg. Geography, History, sociology etc,.

According to Keat and Urry 1982 and Henry M.CR 1992, Science has the following common
features:-

i. Experiments o something scientific should be susceptible to experiments.

 ii. Objectivity – something scientific should be as objective as possible re should consist
as loss bias as possible. NB: Non of the scientific experiment and its conclusion is
neutral bias /100% objective.

iii. Replicability of process and output of the inquiry – if one uses a certain criteria
methodology and procedures to arrive at a certain conclusion considered as scientific
should be in the way that even any other person may do the same to arrive at similar
conclusion.

iv. Universality of regularities – scientific principles and regularities should be universe

to the extent that when applied by any person should give the same results despite of
geographical differences provided that the conditions are the same. NB: According to
Haralambos 2000 universe is possible in natural world but very difficult in social
world due to dynamism of social issues including human behavior.

v. Causal relation a true natural scientific explanation should be able to state the causal
relations of events or facts. Eg. If A bird is flying it should say why the bird flies. i.e.
The link between the act of flying and what causes the bird to fly like shape of the
bird, weight of the bird etc. NB: Social scientific regularities are act supposed to
show not only causal relation but also factors that underlie occurrence of such
phenomena because statistical figures are not fully satisfactory. eg. If you say, every
year 500 people are infected by HIV because of poverty. (The cause) you should be
able to say what causes poverty (The underlying causes) . NB: Generally something
or a certain knowledge is scientific if it employs scientific methods in its search or
inquiry.

• Scientific method consists of five elements or steps namely:

1. Identification and description of the problem to be solved in order to have a clear

understanding of such problem.
 2. Designing and where appropriate fabricating equipment tools / apparatus and related
facilitates which are necessary for making and taking observations or collection such as
questioners interview schedules etc.

3. Making observation and collection of adequate and accurate data as it can reasonably be
achieved . This is the stage of scientific investigation by making sure that the
observation and data collected is as accurate as possible to avoid subjective conclusions.

4. Presentation and Analysis of the observations/data or response a process which

culminates into search for an emerging trend/compilation of the results into a synthesis. -
The presentation of observation /data/responses may be in the form of graphs, charts,
tables, etc

5. Formulation of a generalized conclusion based on the results of the analysis, compilation

and or synthesis of the observation/data.

6. The General conclusion / data statement is what is called a scientific law/principle. Eg. A
floating body displaces its own weight – (Archimedes principle).

TECHNOLOGY

Technology refers to application of science to solve human problems. ie it is the application

of principles of nature discovered by man in making equipments to be used by him in
facilitating the successful efforts in the struggle against nature. Example: Since it is difficult to
cross an ocean one using the principle of floatation makes a boat or ship for easy crossing.

OR

Since it is difficult to walk on foot to Europe or using care one develops plane by using the
principle of natural flight etc.

CLASSIFICATION OF TECHNOLOGY
 Technology is conventionally classified into 3 broad categories.

1. Embodied technology – The physical assets (capital goods) are manmade and are used
in the transformation of raw material inputs into products such physical assets include
machines, electronic systems, equipment and tools.

2. Technical and commercial information that can be used in research and development of
new (or improvement of the old) methods of production of goods and services and in the
marketing and purchasing of technologies and their products

3. Trained personnel – includes – technologists who can design, plan, initiate and carry out
scientific research and development work including those who can make use of
operational science and technology for development eg. Engineers, managers,
technicians, scientists, doctors, geologists and other technologists. NB: Technology does
not simply – embrace machines but embraces also trained manpower as well as
scientific, technical and commercial data or information.

• 2nd way of classification.

Technology can also be classified into 2 main categories namely:

1. Software technology – it embraces skills expertise, engineering drawings, electrical circuits,

computer programmers etc.

2. Hardware technology – include machines, equipments, tools and other tangible – materials
used to simply human works.

SCIENCE AND TECHNOLOGY SYSTEM

According to the Sussex group science and technology system includes “research and
experimental development (R&D), Such as Scientific and technological activities including
scientific library and information services, Museums, zoological and botanical gardens,
geophysical, Meteorological and natural resources assessment work such as mapping, aerial
surveys, remote sensing general purpose social and economic data collection, technical and
advisory/consultancy and extension services including patent office services and related
activities”

THE ROLE OF SCIENCE AND TECHNOLOGY IN GROWTH AND DEVELOPMENT

1. Increase production of goods and services.

2. These will in turn result into increase of Gross national product and income per capital eg.
Mechanized agriculture and improved – industrial technology may result into more
production of raw materials and thus more manufacture of goods for internal.

3. Consumption and exportation.

4. Increase foreign exchange their by selling the products of science and technology like cars,
machines etc. to other countries also selling improved goods and services hence the particular
state becomes stable economically eg. Japan, china, etc. has developed this way.

5. Increase life span – science and technology improves health services hence increasing life
span which is one indicator of human development.

6. Helps in the sustainable use of environment -Science and technology will help to develop
environmental conservation technologies including environmental friendly user technologies
and environmental provide the broad base for development because there is no development
possible out of conclusive environment ie. Fertile land, abundant rain, moderate temperature
presses of clean and safe water etc.

7. Information technology helps to connect the country with the rest of economic and
developmental partners. Eg. Entrepreneurs of one country can access information from
partner countries in development and hence locate market for their products as well as import
necessary raw material etc.

8. Promote development of the state by stabilization the fro and backward linkage between
industrial sector and Agricultural sector as a necessary condition for developing. -The
linkage becomes possible because agricultural sector will use sophisticated farming
implements from industrial sector eg. Facilities and technologies that result into more field to
 be consumed as food as well as raw materials on the other hand industrial technology will
consume the raw materials from the agricultural sector to produce finished goods for export
than exporting raw material or semi processed material as it is for now.

9. Technology similarly will improve necessary infrastructure for development EG. Transport
infrastructure, social service infrastructures like schools, hospitals water supply, solar Hydro
electric and other sources of power will stabilize electric power supply.

10. Science and technology help to stabilize defense and security system of a particular state –
This is very important condition for attaining development in the globalised world because
investors tend to prefer areas with stable defense and security for their lives and property. Eg.
Sophisticated communications and weapons that a state posses calls for international
investors trust to that particular state.

THE INTERNATIONALTRANSFER OF TECHNOLOGY ITS IMPACTS AND COPING

MECHANISMS

Transfer of technology is the process of moving technology physically or mentally from one
geographical area and transplanting it into another area. OR The International transfer of
technology is the process of moving software or hardware technology from one Nation to
another i.e. Transplanting it there.

1. Hardware technology-Manufactured machineries ready for use eg. cars, computers

industries etc. software technology=skills and knowledge on how to make a certain
device in which a country coping it will develop a plant to manufacture hardware
technologies eg. A car manufacturing plant, a plane manufacturing plant etc. NB: The
hand ware produced in most cases will slightly differ from the origin of the software
technology because they are modernized to escape penalty from the legal owners of the
particular technology. ie. Copied from inventors but innovated.

Countries like china, Tyrone, Northern Korea, Japan, Malaysia become big hardware
technology exporters in the world by importing software technologies from the western
states and modernizing it.
2. Transfer of technology mostly done due to the fact that there is uneven global
distribution of technology which is a common feature of the North South relations. The
south needs such technology in order to boost their economy.

NB: This does not mean that developed world do not transfer technology instead no
country in the world can claim 100% local technological independence. However the
difference is that the developed world transfer technology to each other which is more
sophisticated and on fair based while the technology transferred to the south is mostly
outdated and on exploitative bases. Eg. A country in the south imports 1960’s textile
industrial technology because she can’t afford the sophisticated one but she pays more
recent and sophisticated textile industry.

WAYS OF TRANSFERING TECHNOLOGY.

1. Though imitation – By simply copying from investor of the technology and apply it in
another area by innovating it or using as it is. i.e. People observe and acquire knowledge
and skills of performing those activities called technology.

2. Through imparting expertise, and foreign investor who come with then foreign investors
have been encouraged to come and invest in various sectors such as industrial, mining,
transportation (TBL), Electric plants etc.

3. Through training people abroad – different countries in this developing world have been
sending their students and workers abroad for the aim of importing – technologies from
those countries. Example before 1980’s Tanzania used to train doctors, pilots, industrial
technical operators etc. from USSR and partner socialist countries like china.

4. Licensing of technology and agreement which allow receipts to employ technology

acquired from abroad.

5. Through turnkey operations – The buyer enters into contract with a supplier say to build
and construction. Or you buy an industry and fix it in your country you posses no extra
 skills than switching on and off. ie. Expects are imported from abroad if repair and
maintenance is to be done. Tanzania since independence has been over relying in this
method of transferring technology this is one of the good reason why she has remained
behind in industrial technological supper structure hence poor linkage between industrial
and agricultural sector. Eg. Before independence imported this called Basic Substitute
industries that were replaced by turnkey after independence.

6. Through industrial espionage a person or state imitates some one’s technology without
the permit ion of the inventor eg. China and Japan are very good in espionage.

7. Through privatization policy is the process of putting public enterprises or public sectors
into the hands of private individuals or companies. Sometimes local individuals can have
more capital than the government thus they will import sophisticated technologies eg.
NICOL. Also foreign investors taking part in the private sector bring along with them
recent and sophisticated technologies (FDIs) NB: Privatization can be absolute or by
partnership.

HISTORICAL BACKGROUND OF INTERNATIONAL TRANSFER OF

TECHNOLOGY

The nation of international transfer of technology is a phenomenon whose beginnings can be

attributed to the centre – peripheral relationship of the metropolitan foreign power centers and
the colonies which were mostly in the third world. The colonies were both sources of raw
materials and cheap labour as well as markets for manufactured goods from the industrialized
countries.

There were no serious scientific agricultural or industrial research activities which were carried
on in the colonies except where and if such research promoted the production of more cash crops
which were raw materials needed by the metropolis. Ie. There were agricultural research centers
in Africa and Asia for crops such as cocoa, coffee, cotton, rubber, sisal and tea. It was not an
accident that colonial governments gave top production. With regard to industrial technology
development only luxury goods – industries and primary processing industries were established
in the colonies so as to carter European needs in the inter war period and make the raw materials
easy transportation to the metro pole respectively. (Basic substitute industries B.S.I and
processing machines e.g. Catton ginneries.) Other examples Include coffee pulping, sisal
decorticating factories etc.

In 1960’s many African countries attained or gained their nominal political independence. It is
at this time that the notion of transfer of technology becomes a catch phrase. However the
massive exploitation that accompanied transfer of tech at international level was not known in
depth to the newly independent states of Africa, Asia and Latin – America. During this time the
industrialized world convinced those new states that the north had trained man power especially
in the scientific and technological fields as well as the equipments and money. They told these
new states that they lacked what the centre had although they had plenty of resources. Thus they
were advised to transplant technology from the central powers in the form of conditional aid dept
and purchases.

Most of African countries began transplanting technological equipments and man power from
the industrialized countries of Europe and North America blindly thus come to be known as
industrial Tabula – Rasa. The type of industries and technologies imported or transferred were
only TURN KEY ONCES i.e. The Africans knew how to switch on and off with no even partial
knowledge and skills about repair and maintenance. By the early 1970’s many African countries
and other third world countries came to the realization that technology cannot be transplanted
blindly on a wholesale basis from one culture and environment to another socio-cultural and
economic context.

The implantation of new technologies from foreign socio-economic contexts in to developing

countries is not a spontaneous process. The transfer of technology at the international level is a
complex process which involves extensive negotiations on legal technical, financial and
personnel aspects of the technology to e acquired. Thus transfer of technology cannot be left to
the interplay of uncontrolled market forces.

THE SCOPE OF TECHNOLOGICAL TRANSFER

The transfer of technology can within one country or region ie. From one geographical location
that has invested it to the rest of the country. It can also be from one country / countries to the
other through bilateral or multilateral agreements.

The following model adopted from Monkiewics J.(1979) with some little modification help to
elaborate more about factors determining international transfer of technology.

Figure 14: Monkiewics’s Model of ITT

FACTORS FOR TT

COUNTRY COUNTRY

LPFX LPFXDT
D

EFX EFX
RT
SCFX RT SCFX

STFX STFX

Bilateral agreement Multilateral agreement

Key: LPF – Legal and political factors

EF – Economic factors

SCF-Socio-cultural factors
 STF-Scientific and technological factors

DT-Donor of technology

RT-Recipient of technology

From the model in figure 14 there are many factors that determine the decision of technological
transfer the main ones are:-

Political factor

Legal factors

CATEGORIES OF TECHNOLOGICAL TRANSFER

1. Non-Market technology transfer

2. Market technology transfer

NON – MARKET TECHNOLOGY TRANSFER (TT)

It has 4 Basic Elements:-

1. Technology which is so general that can be transferred with some generally attainable
information channels like books, Journals, conference papers etc.

2. Human embodied technology attainable or realized through foreign employment or

foreign training of local staff.

3. Technology transferred in various forms of technical aid from government to government

or between international donor agencies and governments.

4. Technology transferred through various military aid programmes which may include
armaments, surveillance systems and specialized training of military personnel.

MARKET TECHNOLOGY TRANSFER

It has 3 main aspects namely:-

 1. It military technology transfer based on purely commercial principles includes transfer of
modern technical equipments, on the job training and by supply of some services to
foreign military complex or military infrastructure.

2. Free market technology transfer occurring among independent enterprises.

3. Free market technology transfer occurring among semi autonomous public enterprises.
E.g. Unresities etc.

MODALITIES TECHNOLOGY TRANSFERS.

There are two modes of technology transfer:-

1. Horizontal transfer of technology (HTT)

2. Vertical transfer of technology (VTT)

HORIZONTAL TRANSFER OF TECHNOLOGY

Occurs when a technological innovation is propagated gradually or suddenly from one system of
society to a total system of another society or the adaptation of a technology from one
application in one branch of industry or economic sector to another application; The new adapted
application may be totally unrelated to the original intended application. Horizontal transfer of
technology involves contractual agreements between supplier and user (Donor and recipient)
before the acquisition of machinery and other capital goods, technical assistance in the form of
services by foreign staff as well as permission of rights to use trademarks and licenses. Channels
of horizontal transfer of technology may be non commercial as in the case of intergovernmental
organizations international aid/ or development agencies like UND, bilateral co operations, etc.
The channel can also be commercial in the horizontal transfer of tech especially when private
companies are involved.

The direct costs of the international transfer of technology include costs for purchases, fees for
patent, trademarks and license, payments for pre- investment, investment and operational
services of foreign consultancy firm and payments to individual experts. The indirect costs
include foreign currency outlay, differed taxes, overlapping of imports, intermediate products
and spare parts, avoidance of taxes and lessened research. NB: Horizontal transfer of technology
has sometimes been baptized as pseudo- transfer of technology to the recipient country, because
there is in fact no effective transfer of technology. i.e. Local staffs are usually trained to master
simple repetitive manipulations on maintenance, assembly and packaging sequences. The foreign
experts are reluctant to pass the real technical knowhow to the local personnel’s and all research
and development of the system are retained in the metropolitan centre’s. Input substitution
industrialization strategy is a good example of horizontal transfer of technology.

VERTICAL TRANSFER OF TECHNOLOGY

Refers to conversion of a general scientific idea into a specific device i.e. VTT occurs when a
technological innovation is propagated following and including the sequence from research
technological experimentation/ dev technological innovation and production. The progression of
a technology from a science to a finished product is a transfer which necessarily by definition
involves the organization and strengthening of domestic research and development by vertical
integration that is all research facilities as well as maintenance r/ repair capability are transferred,
also in what often referred to as Mission- oriented transfer i.e. . In this type of transfer local
personnel are also trained in various skills and specializations. The local personnel eventually
take over not just the administrative – management of the transferred tech but also the technical
leadership and control.

WEAKNESSES OF VTT

VTT has various costs included in the contractual agreements too. However unlike the horizontal
transfer of technology VTT promotes national self- reliance in science and technology in the
recipient countries and hence the costs involved are of a much shorter term duration than is the
case under horizontal transfer of technology

SALIENT FEATURES OF THE EXPORT AND IMPORT OF TECHNOLOGY IN THE

NOTH SOUTH RELATIONSHIP CONTEXT

Exporter/ supplier of technology’s characteristics

1. The exporter/supplier of technology normally is highly specialized industrial producer whose
marginal cost for the technology exported is very low because the technology exported has
already been developed, utilized and tested in the domestic market

2. The exporter usually is in legal monopoly of the instruments such as patents and trademarks.

3. The exporter normally operates under maximum condition due to his or her pronounced
financial ability to control trade in technology.

The importer/Buyer of technology characteristics

1. Is usually an enterprise of modest size and has a very high marginal cost for technology if he/
she wants to produce rather than continuing to import technology

2. Often the importer of technology does not have adequate and up to date information on the
alternatives /ranges of technologies available and prices for particular machinery or
production system.

3. The importer of technology after every certain period of time will have to input a package of
another set of technology ,hence failure to be technologically and financially independent i.e.
usually remain dependent forever, in other words the technology is transferred in what has
come to be known as ‘Lock in technology’

4. The importer of technology does not usually have sufficient internal financing capacity
especially in foreign currency.

PROBLEMS ARISINGFROM INTERNATIONAL TRANSFER OF TECHNOLOGY

1. According to UNCTAD research report (1977:17-19) the following were the problems or
challenges of international transfer of technology.

2. The majority of contractual agreements for transfer tech, was directly related to the mofern
industrial sector especially the manufacturing subsector focusing into the production of mass
consumer goods such as building materials, kitchenware, textile, etc due to high and quick
profit realization.
3. Very rarely transfer of technology is directed into producer goods industries like steel and
iron industry because require heavy capital investment and has high gestation period before
the profit is realized. Thus the developing world does not make a significant step in
technology

4. Mechanism or organization for monitoring regulating and control of transfer of technology

.Process are in place but lack expertise and experience in negotiating for transfer of
technology contracts. Hence the developing world has turned to be a dumping pit of western
outdated technologies.

5. In the least industrialized of the developing world /countries a high proportion of tech
transfer contractual agreement are in the traditional industries thus the technologies is
unlikely to be new.

6. Majority countries of the developing countries not a wonder that they are forced to input 2nd
hand and even 3r hand technologies that are subject to halt soon with no possibility
maintenance due to lack of spare parts even from the suppliers themselves.

7. Transfer of technology Create heavy financial budget hence leaving the importer (the
developing countries) highly indented from the industrialized world. I.e. The financial burden
does not include the cost of buying the technology but also fees or payments for patents or
use of latent’s, licensing, technical and managerial know how, trademarks, supplier
procurements, consultancy services and so on.

8. Technology receiving developing countries enter into contractual agreements which almost
in all cases involve tied –purchase of imports of

9. Raw materials and intermediate inputs, plant and equipment and spare parts from the supplier
of the technology acquired by the recipient country. This lead to what is known as “Lock – in
– technology” contracts include sections or clauses which specify total prohibition of
exporting the products concerned with the technology

10. In some cases the contracts may include what other country can receive such tech from the
importer and sometimes export of substitute products are totally prohibited thus reducing the
 benefits that the importer could get in regional integrations and cooperation and thus
discounting the necessity to import it.

11. The limitations and restrictions or prohibitions built into technology transfer agreements
almost leave no option for the tech receiver but to rely heavily to the exporter in both
hardware and software a situation that undermine local skills and capacity building in science
and tech development researches

12. The suppliers of technology usually demand certain exemptions by recipient government of
the developing country which both degrade the national sovereignty and automy as well as
trap all the profit from the technology and resources of the importer to the exporter of the
technology eg. One of the conditions may be giving tax holiday to expatiates under the
hidden agenda of making sure that all the profit realize by the technology to be exported to
the supplier and expatriates send money to their home country.

Figure: Example of Outdated Technologies exported to the Developing Countries

Source: Social Media captured traffic expectation in one of the East African Countries
in 2019
HOW TO OVERCOME THESE CHALLENGES/ IMPACTS

1. The government must invest heavily in local science and technological researches and
projects.

2. The government and organization must train the personnel’s who monitor regulate and
control the importation of tech into the particular country so as to increase their competencies

3. The govt. should only import technology from a country which does not include heavy and
distractive conditionality in the transfer of technology

4. The governments should encourage training of local technocrats for operating in any tech
imported thus reduce number if expatriates.

5. A legal framework should be set to evaluate the standard if the technologies to be imported
by either government, organization or individuals

SCIENCE AND TECHNOLOGY DEVELOPMENT

Science and technology development refers to the process of how science and tech id invented
adopted and sustained into use

Technology capability

Refers to efficiency and effectiveness of technology in its application at a particular time and
place i.e. it is about what can a certain country’s level of technology do and don’t at a particular
time. For example 40 years after independence agricultural technology capability of Tanzania is
still very low because people are still using hand hoe and traditional Techniques of production
hence poor yield to extent of letting the country suffer from hunger crisis If the application of
science does not bring any significant improvement in one’s life and dev. implies that the
particular technology is incapable and thus is of no significance. When one wants to decide to
import a certain technology he/she must ask himself how capable is the technology to ht
importers context

RESEARCH AND DEVELOPMENT

Research refers to systematic search if data so as to arrive at a certain conclusion for a purpose of
developing a theory, proving the existing theory or modifying it. Research is a very important
part of science and technology of new natural tendencies that can add value in the already
discovered tendencies applied to solve human problems. Research in science and technology are
compulsory because knowledge is dynamic i.e. what is modern today may be outdated
tomorrows

The Role of Research in dev. of science and technology

1. New theories are developed/constructed that exposes certain knowledge on the count ability
of certain natural principles that can be used to improve human life. That were not known
before.eg research in floating of bodies in H2O resulted into the discovery of the natural
principle of floatation used in the manufacture of boats, ships etc.

2. Research can result to exposure to certain new knowledge that can be used to improve the
existing theory /invention e.g. Research in manual motor vehicle has resulted to the
discovery of automatic motor vehicles.

3. Research can result to a replacement of the old invention (theory) with a new one to bring
sure improvement in simplifying human activities .eg. Scientific research in textile industries
resulted into replacement of the wheel hand driven engines to water driven engines and
finally steam engines in 1750’s in England.

TECHNOLOGY INNOVATION

Innovation – may be considered to be anything new such as a new idea, a new achievement or a
new social practice that represent a departure from the existing situation ie. Departure = change.
According to Bannet 1954 an innovation is any thought behavior or thing that is new because it
is qualitative by being different from the existing form.

According to packs 1994, Innovations begins with invention i.e. Inverter is the scientist who
discovers the particular technology when invention is socially accepted the particular society or
state called innovators who add value to the invention and start exporting.
 CONDITIONS FOR INNOVATIONS TO TAKE PLACE

According to Bannet (1954 ) for any innovation to take place there should be all of the following
conditions:

1. Anomie a state of normlessness. i.e. when you have such situation the innovation will come
to bring the changes.

2. The change agent and innovator.

3. The target system/Client system.

UNIVERSAL CRITERIA TO CHARACTERISE INNOVATIONS

1. According to Rogers, E 1962 any innovation is characterized by the following criteria:

2. It should be relatively advantageous

3. Compatibility – The degree to which an innovation is consistent to the experience.

4. Values of complexity – A degree to which the change is difficult to understand.

5. Divisibility – is a degree to which innovation should be tried on a timited basis.

6. Communicability – The degree in which an innovation can be diffused to others.

CHARACTERISTICS

According to Bannet (1954) anything can be called innovation if it has the following
characteristics:

1. It brings something into use.

2. If it replaces the existing one.

Qn. Why should a state strive to innovate technology?

Because:-
1. Innovator becomes sovereign and thus can frame development policies autonomously.

2. Innovator becomes economically powerful thus can improve social welfare due to the wealth
obtained when diffusing the technology elsewhere.

3. The innovator will be able to command supper economy and improve its citizen’s life
standard by applying the innovation in production and life style systems.

FACTORS HINDERING TECHNOLOGICAL INNOVATIONS IN THE DEVELOPING

WORLD

1. Lack of fund – Due to shortage of fund most government do not invest in scientific and
technological research hence discouraging innovations.

2. Colonial mind set – Many countries located in Africa, Latin America and Asia are victims of
colonial mindset there by deeply believing that Africans cannot innovate anything valuable
hence opt. for importation of innovations.

3. Poor education systems in most developing countries educational curriculums are replace of
former colonial education thus do not prepare people to be innovators rather creamers of
foreign scientific ideas and principles.

4. Lack of pronounced science and technology policies due to the in thence of the north to the
south by guiding them to adopt policies that reduces the developing countries to more
imports adopt policies that reduces the developing countries to more imports /adopts of
Northern/Western innovations.

5. Subsistent lifestyle – Majority in the developing countries are subsistent thus they don’t
struggle beyond subsistence i.e. A subsistent mind will always think subsistent up to when
the subsistent lifestyle is changed to surplus one e.g. Abraham Maslow argues that until the
basic needs are that (food, cloth, shelter etc) is when a man began thinking behaving beyond
his/her basic needs.
CHAPTER 4: POVERTY AND DEVELOPMENT

2.1. CONCEPT, TYPES AND MEASURES OF POVERTY.

What is poverty?

Poverty can be declined into two main levels namely.

a. Individual level

b. State/National level
 • At individual level poverty refers to the state of being unable to commend enough
resources to satisfy human basic needs as well as help an individual development.

• At state or National level poverty refers to the condition where by a country is greatly is
unable to support itself economically and thus depend heavily from external sources of
finance as basic requirements for its survival as a nation. For example Tanzania as other
African countries some Asian countries and Latin America more than 50% of her
budget depend on external sources in terms of aid, department. Individual poverty is
found in both rich and poor countries although different rates.

2.2 TYPES OF POVERTY (INDIVIDUAL POVERT)

According to Todaro M and Swith S . 2006 and other Contemporary economists there
are two types of namely.

1. Relative poverty

2. Absolute poverty

3. Moderate Poverty

1. Relative poverty

According to Todaro & Smith 2006:2008), relative poverty refers to the situation where
by individuals above the poverty line get low income thus cannot adequately advance or
develop. They get income enough to survive, (do not save) with such income they Lack
collateral. Relatively poor people cannot borrow money; they generally can’t adequately
educate their children or start and expand a business for example as strategies to develop.
Relative poverty is found above the international poverty line (see figure 3)
 • The international poverty Line

An international poverty line – is an international line drowns to measure world, poverty

due to the fact that the term ‘poverty’ is too relative depending on the physiological, as
well as social and economic requirements of a particular country region or continent to
avoid exaggeration of this problem. Above this line you get Relative Poverty medium
income and the rich and below this line you get absolute poverty.

Figure 3: The International poverty Line

High income earners/Rich

Medium income earners

Relative poverty
YP 1Us dollar
Absolute poverty

-Access to basic needs of life

-Life span etc

International poverty line

Source: Made by the author based by the United Nations concept of International poverty line.

Relatively poor people are considered poor if compared or related to the medicine income
earners and high income earners. (Rich) .In developing countries there is ire duality of income
distribution in which very few individuals above the poverty line are rich, majority are low
income earners a (Read more in Todaro & smith, S. 2006: 28-29)

2. Absolute poverty.
According to Todaro, M and SMITH, S. 2006:54, Absolute poverty refers to “inability to afford
a specific minimum level of income needed to satisfy the basic physical needs of food, clothing
and shelter. In order to ensure continued survival in the recent scholarly debates about absolute
poverty has broadened the meaning of the term by including considering an individual’s ability
to afford nutritional requirements in the food taken per day, the Quality of clothing as well as
shelter and ability to access and afford medical care for survival. Ie those who do not meet the
above criteria are considered absolutely poor at local level. However at international level
absolutely poor people are those below the international poverty line. These are those who earn
and consuming below 1 US dollar per day or 2 dollar per day in PPP dollars (<1 & < 2 & PPP).

3. Moderate Poverty

Is a situation of getting just one US dollar considered to buy minimum levels of basic needs thus
taking an individual out of danger; In other words moderately poor people are those who get
minimum level of basic needs located within the international poverty line between absolute and
relative poor people.

2.3 MEASURES OF POVERTY

• Absolute Poverty Can Be Measured By:

A. INCOME BASED INDECIES

1. Headcount index

Number or head count’ (H) of those whose incomes fall below the absolute poverty line
(YP)

When the head unit is taken as traction of the total population (N) we define the head
count index H/N

Headcount index =H/N

 Where: H=Headcount

N=Total population

The poverty line is set at a level that remains constant in real terms so that we can chart
out progress on an absolute level overtime.

The idea is to set this level at a standard below which we would consider a person to live
in “absolute human miserly” such that one’s health is in jeopardy. Eg. If the total
population is 100 and those below absolute poverty line are 50 then poverty can be
measured using head court index as follows:-

Head count Index = 50/100 =1/2

This one would say ½ of the population is absolutely poor.

2. Total poverty gap (TPG) index: Since not all people agrees on the headcount measure
because considers all getting below I us dollar is absolutely poor white as in reality below
the line exists differences eg. One getting 350 or 300 are all ranked the same if it is below
the line.

TPG measures the total amount of income necessary to raise everyone who is below the
poverty line up to that line eg……….

Figure 4: Country A Figure 5: Country B

AI
AI

Percentage of Population Percentage of Population

 YP V

YP
TPG

0 50 100 0 50 100

A relative large poverty gap A relative small poverty gap.

In country A it will take longer and more effort to eliminate absolute poverty than in B.

• TYPES OF POVERTY GAP INDEX

1. Total poverty gap (TPG) – The extent to which the incomes of the poor lie below the
poverty line is found by summing UP/adding the amounts by which each poor person’s
income (Yi) falls below the absolute poverty line YP as follows.

TPG = H/W (Yp – Yi) eg. Sh 500 =Eyi

1000sh (1&) – 500 (1/2 &)

= ½ &.

2. Average poverty gap (AGP)

In short is the amount of money per day it would take to bring every poor person in an
economy up to our defined minimum income standards. On per capital basis the average
poverty gap APG is found by dividing the TPG by the total population.

APG = TPG/N.

3. Normalized poverty gap

 Basing on the size of the poverty gap in relation to the poverty line we use income short
fall measure called “NORMALIZED POVERTY GAP,”

NPG = APG/YP –Average poverty/Standard income in us dollar.

1. Average income shortfall (AIS):

AIS is the total poverty gap divide by the head count of the poor.

Ie AIS = TPG/H

e.g. let’s take 500sh. To be TPG

Headcount of those below poverty line = 50

Then; AIS = 500/50 = 10

4. The foster Green – Thirbecke measure.

It measures the degree of income inequality. It is used to measure the difference in income
among different individuals of the same population. Income inequality refers to the gap between
those who get the highest income and those who get the lowest income.
B.HUMAN WELFARE BASED INDECIES

• The Human Poverty Index

According to UNDP human poverty Index analogous to human development index can be
measure in terms of three key deprivations of life namely:

a. Life span – in developed countries people majority live below 40years

b. Basic education – measured by the percentage of adults who are illiterate.
c. Overall economic provisioning: Measured by the percentage of people without access to
health services and safe water as well as the age of children under 5 who are under weight.
• How can we measure relative poverty?
Since relative poverty is too subjective it is difficult to establish clear cut merriment. One is said
to be poor in relation to others in the particular community thus each community and country
will have its own unique relative poverty.

2.4 INDICATORS OF POVERTY

Considering the measurements of poverty the following are indicators of absolute poverty:
• Big number of the people getting below 1US dollar a day,
• Failure to affordability of basics of life such as food, cloth and shelter.
• Reasonably shut life span especially below 50 to 70 years
• Presence of majority adult illiterates
• Large percentage of people without access to health services and safe water
• Percentage of children under 5 years who are under weight is large.

2.5 CAUSES OF POVERTY IN LESS DEVELOPED COUNTRIES

At state level and individual level:
d. Low level of science and technology
e. Political instability eg. In sierra eon, Democratic republic of Congo, Tanzania in 1970’S
during Kagera war, Somalia and Sudan to mention a few.
f. Poor national economic plans in the developing countries.
According to the research done by Pro. Rwekaza Mukandala of UDSM in 2004 discovered
that since independence all development plans were dictated by the capitalist would
“developed countries) and is the socialist world, (before 1980’s) which never reflected real
initiatives to bring about development.
Mukandala (2004) puts in development plans and strategies to be the followings:-
• Three year plan 1961/62 – 1963/64
• First five year plan 1964/65-1968/69
• Second union 5years development plan. 1988/89-1992/93
• Vision 2025 TZ
• Vision 2020 Zanzibar
• Programme of economic recovery (May 1986)
g. Poor poverty reduction strategies According to various researches all poverty reduction
strategies are locally developed and carry exploitative interests from the capitalist world.
 Example of such strategies includes; Sub strategies like that of National Poverty Eradication
strategy (NPES) and PRS Review of 2004 and the National strategy for growth and reduction
of poverty (N SGRP) – 2005/006-2009/10.
Heavy financial dependence to the international financial institutions such as International
Monetary Fund and World bank being the capitalists institutions have badly affected the
freedom of poor countries to plan and work out local strategies.(Horse field 1969) In the
effort to support their financial budgets have ended up implementing the donor interests,
even when they are not in line with the national interests of particular countries..For example
according to him these institutions were formulated in 1944 adhering to USA interest against
rival industrious weakened by the Second World War thus Africans, Asians and Latin
Americans were not and are not involved in policy formulation of these institutions.
h. Over population burden: Both at state and individual level Africa and Tanzania in particular
population size often do not relate with ability to command resources for its support
resources available is more scarcer than the population increase hence poverty. For example
families with 15 children who are common peasants are likely to be poor in Tanzania
Countries.
i. Illiteracy, laziness and unemployment: In Africa majority do not have necessary skills
required to produce or work to earn a reasonable in come as a result majority works hard
with very little earning. E.g. Tanzania peasants who lack sophisticated skills to produce more
and even when they can they are over exploited by purchases of their produce. Part of the
population is lezzy and thus unemployed. They spend most of their time drinking, Talking
etc. This includes those with education who have failed to secure office works and urban
youth.
j. National hazards: Natural hazards such as droughts flood, Earth Quake and Hurricanes is
increasing causing poverty to individuals because involve property destruction simply
because Africa’s ability to prevent or intervene such disasters is limited. These hazards can
cause deepening of the National poverty like it happened in the 1970’s doughtiness and
hunger.
k. Diseases: HIV, Malaria and other diseases in tropical Africa has been consuming a lot of
government money to subsidies prevention diagnosis and prognosis. At individual level and
state level tropical disease and HIV pandemic takes million lives of educated workforce and
 family pillars hence increasing orphanage problem that has been resulting into absolute
poverty to most families Africa and Tanzania in particular.
l. Extended family dependants – In Africa at individual level poverty is also a result of multiple
dependants to an individual who seems to earn more than us dollar spends below due
distribution among dependants.
m. Lack of good governance: Embezzlement of public fund and misallocation of resources has
left majority citizens poor and minority billionaires.
n. Historical reasons: Historical reasons include pre colonial unequal exchange, slave trade.
Colonialism and neo colonialism which made Africa, Asia and Latin America to work for the
benefit of the western powers. Some refute this reason by arguing that, a lot of time has gone
since independence thus most of these countries have not made any significant development
in the absence of colonialists thus should stop complaining about the past. However it is of
no doubt that the said historical reasons affected these countries too bad to recover within the
the decades gone since independence
o. Corruption and diversion of development public fund: Most poor countries are characterized
by corruption and diversion of development public funds into private pockets hence
jeopardizing the quality of development projects.

2.6 EFFECTS OF POVERTY.

• Decline of life standard.
• Decline of life span.
• Decline of state autonomy.
• Decline of materials for consumption
• Depopulation
• Human suffering and misery.

2.7 STRATEGIES FOR POVERTY REDUCTION/ERADICATION AND

ALLEVIATION

(TANZAMA – A CASE STUDY)

Strategies for poverty reduction eradication and alleviation in Tanzania started soon after
independence in 1961. During this time the country was called Tanganyika and did not include
Zanzibar until 1964 when Tanganyika united with Zanzibar to form the united republic of
Tanzania. Plans and strategies to alleviate poverty and bring development in Tanzania have
undergone through four main phases namely:
• First phase of capitalism which existed between 1961 and 1967
• Socialist phase existed between 1967 and 1986
• Transitional or emerge phase between 1986 and 1992
• The second phase of capitalism in the form of market economy existed from 1992 to date.

Pronounced effort to indicate poverty began since independence 1960’S (Mukandala 2005) I will
talk phase wise as follows:

a. First phase of capitalism development strategies: Existed between 1961 and 1967 and
included the followings:

• Three years development plan 1961/62-1963/64

• First Five years development plan 1964/65-1988/89

b. Socialist strategies
In short socialist strategies included:-

1. Second five years development plan 1969/70-973/74

2. Third five year development plan 1976/77-1980/81.

3. First union five year development plan 1981/82-1985/86.

4. 15 years development plan (1964 – 1980)

5. 20 years development plan (1981 – 2000)-did not work.

c. Tanzanian emergency plan and strategies for development

• National economic survival programme 1982 (January) :After the collapse of USSR
Tanzania could not survive and all efforts to eradicate poverty failed / stoped thus –
emergence strategies were to be adopted to reduce poverty as a transitional strategy.

• Structural Adjustment programme (1983 to 1985).

 This was adopted after collapse of socialist block (USSR) and thus all strategies that were
socialist in natural failed. Tanzania and all other African countries had to accept SAP
strategies.

According to United Republic of Tanzania development report (1982:3) Structural adjustment

programmer for Tanzania had four objectives namely:

1. Reduce rate of inflation through adjustments in the government budget to levels consistent to
the national economic growth.

2. Achieve a balance of payments.

Balance of payment refers to the record of all transactions made between one particular
country and all other countries during a specified period of time. BOP compares the dollar
difference of the amount of exports and imports, including all financial exports and imports.
A negative balance of payments means that more money is flowing out of the country than
coming in, and vice versa.

3. Increase productivity in parastatal sector and management. The idea was to equip Tanzanian
public investments which most of them were either bankrupt or needed repairmen before
they could be privatized.

4. To maintain the achieved levels of income distribution, social service provision and other
basic needs of the majority of the population by the government of Tanzania during socialist
era.

• Programmer for economic recovery ERP – 1 – 1986/87-1988/

• Economic recovery programmer II (Economic and social action programme) 1989-1991/92

(NOV. 1989)

• Policy framework paper by International Monetary Fund and government

• Priority social action programme/July 1989 – June 1992 (NOV 1989)

d. The second phase of capitalist development strategies.

Market approach to poverty alleviation and development planning has been common in Tanzania
since 1990s to date. Foreign direct investments (FDIs) have increased numerously over the last
three decades, private sector has been revived and entrepreneurship is now common in Tanzania.
Most of the organizations and economic investments which were previously run by the state are
now either fully privatized while the government remain setting market infrastructures and rules
of the game to regulate market functions or exercise co-ownership of organizations and sectors
considered as delicate and of trivial sensitivity and importance to the state security and welfare
such as social overhead capital, health care, education , cyber services, research and
development, financial industry and related aspects. Tanzania has tested positive to the indicators
of development and the levels of poverty in general terms is reported to decline gradually across
time during market operation era. Market Strategies to poverty reduction and alleviation
undertaken includes:

• Poverty reduction strategy paper (PRSP)

Poverty Reduction Strategy Papers (PRSP) are prepared by the member countries through a
participatory process involving domestic stakeholders as well as eng development partners,
including the World Bank and International Monetary Fund. Updated every three years with
annual progress reports, PRSPs describe the country's macroeconomic, structural and social
policies and programs over a three year or longer horizon to promote broad-based growth and
reduce poverty, as well as associated eng financing needs and major sources of financing.
Interim PRSPs (I-PRSPs) summarize the current knowledge and analysis of a country's poverty
situation, describe the existing poverty reduction strategy, and lay out the process for producing a
fully developed PRSP in a participatory fashion. The country documents, along with the
accompanying IMF/World Bank Joint Staff Assessments (JSAs), are being made available on the
World Bank and IMF websites by agreement with the member country as a service to users of
the World Bank and IMF websites.
• Public expenditure review (PER)

As part of the World Bank’s country economic and sector work, as PER is undertaken to assist
the borrowers in understanding their development problems and potential solutions as well as
help illuminate the World Bank’s own country assistance strategy. One of the major factors
contributing to the success of the ensuing country lending program is therefore the quality of
analysis undertaken in the PER. In an effort to improve the treatment in PERs of human
development issues in general, and education sector issues in particular, the Human
Development Network of the World Bank has formulated guidance notes for analyzing public
expenditure in the human development sectors. The main goals of these guidance notes is to
spark the imagination of analysts, to help them learn from better than average examples, and to
make it easier to find the many resources already available.

• Medium term expenditure framework (MTEF)

Medium Term Expenditure Frameworks (MTEF) advocated by World Bank on the claims that it
can help countries improve the budget practices and outcomes, but implementation capacity is
needed to achieve this. The World Bank supports countries in building this capacity. In the past
twenty years more than 130 countries have adopted Medium-Term Expenditure Frameworks
(MTEFs) as a tool for improving fiscal performance. The rationale behind these reforms is that
MTEFs allow governments to more adequately incorporate future fiscal challenges in the budget
process, thereby reducing an undue emphasis on short-term goals. This work empirically
investigates the MTEFs’ impact on three key aspects of fiscal performance using a newly-
collected MTEF dataset which covers 181 countries over the period 1990-2008. It finds that
MTEFs strongly improve fiscal discipline and has a larger effect at more advanced MTEF levels.
Higher-phase MTEFs also improve alocative efficiency. Only the most sophisticated MTEFs
have a significantly positive effect on technical efficiency, although this result is not always
robust. The paper also explores conditions that may affect the functioning of an MTEF, such as
the presence of a fiscal responsibility act, political cohesion, democracy and technical assistance
missions.
The objectives of this review of experience with MTEFs are twofold. First it provides a basis for
determining whether an MTEF should be a common element of PFM systems given differences
in country circumstances. Second, where an MTEF is appropriate, it draws lessons about and
provides specific guidance on the design and implementation of MTEFs and reform in the
context of broader advice about PFM reform. While the review is intended first and foremost to
inform World Bank advice on MTEFs and PFM reform in general, it should also be of interest to
other multilateral and bilateral providers of technical assistance in the PFM area, and to country
authorities seeking to introduce or strengthen an MTEF

• National poverty eradication strategy (NPES)

• Vision 2025 Tanzania and Vision 2020 for Zanzibar

By the mid-1980s, the government had realized that the past development policies and strategies
were not adequately responding to changing market and technological conditions in the regional
and world economy and were also not adapting to changes in the domestic socio-economic
conditions. In response, beginning mid-1986, the Government adopted socio-economic reforms
which continue to be implemented to date. However, it has increasingly become apparent to the
Government and its people that these socio-economic reforms are not adequately informed by a
national long-term development philosophy and direction. It was out of the realization that these
reforms had to be underpinned by a long-term development philosophy, if they were to be owned
and sustained by the people that the idea of formulating a national vision emerged. Moreover, the
Government recognized the importance of re-kindling the hopes and expectations of the people
as well as their patriotism and nationalistic aspirations thus reinforcing the need for a national
vision.

A vision for development is an articulation of a desirable future condition or situation which a

nation envisages to attain and the plausible course of action to be taken for its achievement. A
national vision therefore seeks to actively mobilize the people and other resources towards the
achievement of shared goals. A shared vision arouses people's aspirations and creates the spark
that lifts the nation out of the mundane. In the process, it instills the courage and determination to
rise to challenges at the individual, community and national levels. A vision is a vehicle of hope
and an inspiration for motivating the people to search and work harder for the betterment of their
livelihood and for posterity.

The Tanzania Vision 2025

A Tanzanian who is born today will be fully grown up, will have joined the working population
and will probably be a young parent by the year 2025. Similarly, a Tanzanian who has just joined
the labour force will be preparing to retire by the year 2025. What kind of society will have been
created by such Tanzanians in the year 2025? What is envisioned is that the society these
Tanzanians will be living in by then will be a substantially developed one with a high quality
livelihood. Abject poverty will be a thing of the past. In other words, it is envisioned that
Tanzanians will have graduated from a least developed country to a middle income country by
the year 2025 with a high level of human development. The economy will have been transformed
from a low productivity agricultural economy to a semi-industrialized one led by modernized
and highly productive agricultural activities which are effectively integrated and buttressed by
supportive industrial and service activities in the rural and urban areas. A solid foundation for a
competitive and dynamic economy with high productivity will have been laid. Consistent with
this vision, Tanzania of 2025 should be a nation imbued with five main attributes;

a. High quality livelihood.

b. Peace, stability and unity.

c. Good governance,

d. A well educated and learning society; and

e. A competitive economy capable of producing sustainable growth and shared benefits.

Vision 2025 implementation

Tanzanian government has formulated various programs to implement Vision 2015 including
‘Kilimo kwanza’ program and of recent ‘big results now’ to mention a few in the list. We present
in a nutshell what has been the experience implementing vision 2025 by discussing the politics
of ‘Kilimo kwanza’ and ‘big results now. Although this discussion does not provide the exact
picture on vision 2025 implementation strategy but unfold main policy issues which need
attention if Tanzania is to be successful in meeting vision 2025’s objectives within the said time
limits.

Kilimo kwanza program in Tanzania

KILIMO KWANZA program to transform agriculture from subsistent to commercialized one is
not something new in the world; There has been similar transformation throughout history in
various parts of the world taking different models and names like green revolution, agricultural
revolution, Agribusiness revolution and so on. If we are to theorize these models we would say
there are two main theories involved namely agricultural production and economic
transformation theories and agricultural marketing theory. The two are inseparable as for the case
of two sides of the same coin because agriculture is about production and marketing of the
agricultural products and its dynamism across time.

In the agricultural production and economic transformation model explains how a state should
engage in agricultural production and its impact in the economy. In this paper we discuss three
models falling under this category namely English revolution model, Netherland agricultural
revolution model and hybrid agricultural revolution model as in the case of Saemaul undong2 in
South Korea. We analyze the model where KILIMO KWANZA can be associated with, its
weaknesses and what model should KILIMO KWANZA follow for successful agricultural
production and economic transformation. This category of theory is built in the assumption that
the theory of comparative advantage and competitive advantage coexist and they are dynamic
across time and space. In other words it is based under assumption that area of comparative and
competitive advantages are not permanent as a state can choose to develop new areas which may
be more profitable reflecting changes in the world market priorities and demand choices and
preferences.

In the agricultural marketing theory we discuss how should a state market her agricultural
products at the world market profitably with a win-win situation between primary small and
large agricultural producers, middlemen and final consumers commonly known as Agricultural
fair trade. Different models are given ranging from the one KILIMO KWANZA is based to the
one we propose as the ideal agricultural marketing model.

2
Saemaul Udong is a Korean word which can literally be translated as rural transformation which transforms the
economy from subsistent agriculture to both agribusiness manufacturing economy and non agribusiness
manufacturing economy. Here rural industrialization is the engine of economic transformation
Is Tanzania adopting a right Agricultural model for development?

There are three things here which should be understood, firstly taking agricultural revolution as
a tool of industrialization as in the case of English agricultural revolution which transformed
their economy from agrarian economy to manufacturing economy. At the beginning countries
operating in this model started using their area of comparative advantage by producing
agribusiness manufacturing industries thereby gradually transforming into non agribusiness
manufacturing sector, reflecting their area of competitive advantage at the world market and
market preferences of the time. English agricultural revolution transformed English economy
from agribusiness manufacturing economy of 15th to 19th centuries followed by the English
revolution of the 19th century to the manufacturing sector of the 20th century development of non
agribusiness industries and less agribusiness industries between 20th and 21st centuries.

Figure 6. English revolution development model

Source: Author based on trends shown by the English economic transformation

Today English economy has further transformed where agribusiness even the non agribusiness
manufacturing sector considered sophisticated in the 20th century and that of agribusiness of
the19th century are less embraced rapidly being replaced by service sector.

Secondly; using agricultural revolution as a means and an end to itself and not a means to an end
as in the case of Nether land model, is another approach. In this model agricultural revolution
include transforming agriculture to agribusiness manufacturing sector and become a net exporter
of certain industrial food products into the world market as opposed to net export of raw or
processed agricultural products but not finished goods.

Figure 7: Netherland agricultural revolution and economic transformation model

 Source: Author based on Netherland agricultural revolution and its aftermath

Thirdly, Hybrid model can be obtained by taking a middle position between two extreme ends
namely, starting with agricultural revolution thereafter transforming to a completely different
economic specialization in the manufacturing sector as for the case of England and that of
transforming the economy from subsistent agriculture to the industrialized agribusiness economy
as for the case of Netherlands. An example of this model is ‘Saemaul Udong’

Figure 8: Hybrid model

Source: Author based on the Korean agricultural revolution and its aftermath
Kilimo Kwanza and Tanzanian agricultural marketing models

There have been claims among agricultural and development stake holders that KILIMO
KWANZA has been too narrow focused and unrealistic because put much emphasize on
commercialized agricultural production thereby ignoring the industrial sector which has direct
relationship with international marketing if we want to operate on fair trade bases. In other words
we would argue that agriculture under KILIMO KWANZA strategy purely operates on unfair
trade as it has always been since colonial era. Farnworth, C and Good man, M (2008). Currently
KILIMO KWANZA operate in a narrow and unrealistic marketing model.

The government emphasizes on assisting small farmers so that they can produce commercially
by giving them any assistance thought possible by the government. Under this assumption the
government has provided subsides into farming implements such as fertilizers, tractors,
harvester, power tillers, agrochemicals to name a few. Furthermore the government is striving to
facilitate agro-market availability and insure fair trade bases. In light of this view the government
has a marketing policy which requires small farmer to sell through cooperative unions as a way
of insuring reliable market and free them from exporters and whole sellers’ exploitation. The
Model represented by figure 4 below summarizes Kiliomo kwanza marketing operations in
Tanzania.

Figure 9: Theoretical Model

Source: Farnworth, C and Good man, M (2008) pp. 5

Looking critically into this model there are several observations made.
Firstly, KILIMO KWANZA assumes that KILIMO KWANZA assumes that Tanzanian
agriculture is dominated by small farmers alone there by ignoring the role of plantations. While
convising why KILIMO KWANZA is important Jakaya Mrisho Kikwete said “80% of
Tanzanians depend on agriculture for their livelihood”3. If we are to buy Kikwete’s words we
will assume that Tanzanian agriculture is preoccupied by small farmers alone, but this is
different from the reality. Since 2009 to date Tanzanian agriculture has recorded a significant
increase in plantation investors through Foreign Direct Investment (FID). Therefore resources
poured to peasants also reach the plantations without the government knowledge. Secondly, the
government is not aware of the black market operating between the plantation owners and small
farmers and between the plantation owners and the exporters. As a result of this black market
agro-marketing is not in win – win situation between small farmers, plantation owners, exporters
and the government in question. Thirdly, cooperative union have no power of adding value to
agro-products before reaching local and external final consumers. Consequently more than 80%
of the Tanzanian agricultural exports are on primary or raw products (International Food
development cooperation (IFDC), 2012). Fourthly, there is no clear link between various
government authorities dealing with agribusiness under KILIMO KWANZA strategy such as
Ministry of Land and Settlement, Ministry of Water and Irrigation, Ministry of Agriculture,
Local Authorities and Export Processing Zones (EPZ); for example while Export Processing
Zone (EPZ) is meant to attract and promote investment for export-led industrialization; to
increase Foreign Exchange earnings; to create and increase employment opportunities; to attract
and encourage transfer of new technology and to promote processing of local raw materials for
export (value addition); in practice EPZ in Tanzania mainland and Special Economic Zones
(SEZ) focus much on plantations at the expense of small farmers. Processing of agro-products
for value addition has not been met by EPZ due to unreliable power supply and shortage of fund
for smooth operations. 4 The existence of EPZ and SEZ is said to provide loophole for investors
to aviate export tax because SEZ do not have limitations on where to sell and how to sell agro-
products, hence loss of government revenue.

3
A speech given by Jakaya Mrisho Kikwete to Tanzania National Business Council in Dodoma, Tanzania on 16th
October 2009.
4
Into East Africa Website article on May 2011 Tanzanian Parliamentary Assessment of EPZ and SEZ
 Figure10: Practical Models
Government

Services

Black market

Black market
Plantation
and whole
sellers

Source: Farnworth, C and Good man, M (2008) pp. 5 with modification by authors
According to IMF Tanzanian sells is not beneficial to Tanzanians and to Tanzanian economy; for
example Tanzania last year launched a 26-SEZs program that lasts till 2020 with a projected cost
of 6 billion U.S. dollars. The IMF doubted Tanzania's initiative in attracting more foreign direct
5
investment through tax and customs incentives to be offered under the SEZ scheme. This
position is shared by most Tanzanians as it appears in the article on “Parliamentary discussions
on EPZ operations in Tanzania saying. The envisaged board will comprise the minister
responsible for industries and permanent secretaries in the ministries responsible for finance,
water, minerals and local government, he said. Some people however remain critical of the
programmes, which they say have had little economic benefits to Tanzanians. (Tanzanian
Parliament 2011)

Suggested Model

In this part we suggest a model to be followed by KILIMO KWANZA strategy to make it more
effective. The KILIMO KWANZA suggested model is summarized by figure 11.

Remedying weaknesses of the KILIMO KWANZA practical model in Figure 5 above, this paper
suggest that the government should develop a structure which will regulate agribusiness sector
including land allocation between small farmers and plantation owners instead of divided care
practiced by KILIMO KWANZA where by the EPZ prepare conducive conditions for foreign
investors while small farmers who are the majority Tanzanians are neglected although other
authorities are theoretically responsible to them.

Secondly, there should be a regulatory authority to regulate agribusiness operations this is

because if KILIMO KWANZA is truly meant to make agriculture business operating under free
market such authority is compulsory to ensure that the rules of the game are respected.
Agribusiness regulatory authority should ensure equity and fairness between small farmers,
plantation owners, immediate market board, exporters and any other stake holders in the sector.
Thirdly, EPZ and SEZ should create conducive environment for local investors and foreign
investors to buy raw materials from purchasing board so as to befit both plantation owners and

5
http://english.peopledaily.com.cn/200604/12/eng20060412_257859.html
Article on IMF doubts on Tanzanian SEZ incentives.
small farmers. Moreover EPZ and SEZ should promote rural agro-industrialization as opposed to
mere urban industrialization.

Figure 11: Suggested Model

REGULATO
RY
Governmen
t
AUTHORITY
Service s
Pay Minimum FT
price + social
premium
Paymen Co-
Exporter/Importe
operative/
Sell r/Industrial
Purchasing
Board

Sell bananas
Small farmers
Plantatio Sell

ns owners

EP
Source: Mgeni, T and Bangi, Y (2012)

Historical experience has shown that developed countries, in particular Western ones, have
obtained their economic development by a transition from agrarian to an industrialized and
service based society. As time passes, the validity of comparative advantage for developing
countries weakens, as they try to follow the model of developed countries. Lewi’s model of
growth is a theory of development emphasizing rapid industrial growth which is fueled by the
agricultural sector. (Salih Turan Katircioglu, 2006).

Thus, industrial expansion is possible by means of cheap food and surplus labor (Lewis, 1954).
Today development economists are less sanguine about the desirability of paying such heavy
emphasis on rapid industrialization (Todaro, 1997). They argue that the role of the agricultural
sector and the rural economy in the economic development process must be dynamic and possess
leading elements rather than playing a passive and supporting role. This is the case for the vast
majority of Third World Countries.

Gunnar Myrdal, Nobel Laureate in Economics, argues that it is in the agricultural sector that the
battle for long-term economic growth will be won or lost. A rise in agricultural production,
serves as an important component of a strategy to increase incomes, reduce hunger, and
contribute to the improvement of other measures of well being in many parts of developing
world (Owens et al., 2003). Birkhaeuser et al. (1991) argue that agricultural extension represents
a mechanism by which information on new technologies, better farming practices, and better
management can be transmitted to others.

There has been a rapid growth of agriculture since the eighteenth century. This has been spurred
by technological and biological improvements, which have resulted in even higher levels of labor
and land productivity. As Weitz (1971) mentioned agricultural population increases in less
developed countries (LDCs) whereas it decreases in more developed countries (MDCs).
Additionally, per capita agricultural production increases in MDCs at a faster rate than LDCs.
The total number of people who lived in rural areas around the world was around 2.0 billion in
1960, 2.7 billion in 1980 and 3.2 billion in 2000. The share of rural population in the total world
population was 66.3, 60.3 and 53.0 percent, respectively, in 1960, 1980 and 2000 (World Bank,
2003).

Traditional neoclassical theory predicts that poor rural areas should grow proportionally faster
than rich areas. On the other hand, a preponderance of small family farms should enhance
growth as interpreted in the academic literature and popular press (Deller et al., 2003).
In developing countries, few issues have attracted the attention of economists as has the role of
agriculture in economic development and poverty reduction, generating an enormous literature of
both theoretical and empirical studies. Much of this literature focuses on the contribution of
agriculture in economic and social development and its transformation towards agribusiness
from the least developed in which economic activity is based largely on agriculture, to low-
income countries like Tanzania where industry and services sectors are low.

The Millennium Declaration set 2015 as the target date for halving the number of people living
in extreme poverty. Exceptional progress in some developing countries makes achieving that
goal globally a realistic possibility. However, many countries will fall far short, and up to 1
billion people are likely to remain destitute by the target date. (Cervantes-Godoy, D. and J.
Dewbre, 2010). In the paper of economic importance of Agriculture authors reveal that there
some countries which are still doing better despite various hurdles they face. It further argues
that while economic growth generally is an important contributor to poverty reduction, the sector
mix of growth mattered substantially, with growth in agricultural incomes being especially
important. The study shows that Agriculture contributes 52% of GDP/worker compared to Non-
agriculture and remittances. (ibid).

Dione and Macauley (2002) argue that agricultural sector is the largest contributor to the
economies and livelihoods of many African countries. It accounts for 35% of the continent’s
gross domestic product (GDP), 40% of export earnings and 70% of employment and it is
expected that reliance on natural resources will remain high at least for the next generation.
Despite the importance of agriculture in developing countries in recent years decline in
productivity of major food crops such as maize, sorghum and rice, stands at 1.2 tons/ha
compared to 4.9 tons/ha for China and 6.6 tons/ha for USA. Some of the identified factors to
such decline include inadequate water resources, poor crop varieties and livestock breeds.

Agriculture’s performance and its contribution to the region’s economic development has
traditionally been undervalued, since it is measured using information about harvests and the sale
of raw materials, mainly crops and livestock. (Mucavele, 2009). As a result, the backward and
forward linkages with agro-industry, the services and trade sectors, and, in general, the rest of the
economy, are undervalued. The value added generated by these linkages throughout the economy
does not appear in the basic agricultural statistics of most countries.

Agricultural biotechnology, development of improved varieties, use of drought tolerance in food

crops such as sorghum; is among the cited remedies for positive change. Collaborations between
and among the public sector, private industry and civil society coupled with policy environment
and organization structure; a mix of local and imported technology can improve productivity
hence economic and social development. (Nyange, 2011).

Steven Haggblade (2011) from Michigan University challenges the Africa's agribusinesses
which stand poised for exceptionally rapid growth over the coming 40 years. Because of strong
interdependencies between agribusiness and agriculture, productivity growth in agribusiness
systems will critically affect Africa's overall economic growth rate, its spatial development
patterns and progress toward poverty reduction. But the necessary efficiency gains in
agribusiness performance will not appear automatically. They will require substantial private
investments, a competitive private sector and heightened public attention in areas where
governments have historically proven weak: promoting regional trade, improving town and
regional planning, financing scientific research, funding higher education and building
commercially viable rural financial systems.

Big Results now and development in Tanzania

BIG Results Now is a program adopted from" Malaysian “Big Fast Results” framework for
implementation, monitoring and evaluation of economic and government transformation
programmes to achieve quick impact. The decision followed visits to Malaysia and two Cabinet
retreats in 2012 at which top Tanzanian leaders were exposed to the methodology used by
Malaysia to score “Big Fast Results”. The government of Tanzania launched a public campaign
of the program in February 2013 in which six ministries to start with were exposed to Big result
now as a pilot study and other ministries are on the way to join

With Big results now the government of Tanzania appeared to have found the magic wand that
was missing in propelling the Vision 2025 engine. President Kikwete is convinced that the major
setback against implementing Vision 2025 was lack of priority, and every sector was allocated
little money that could not effect significant changes. Big results now is based on the assumption
that fast changes in all sectors are possible through hard working and collective responsibility in
such a way that each one focus into nothing but delivery of results.

Experience from Malaysia shows that big results can be fast achieved through the “Delivery
Lab” methodology. Malaysia launched a transformation program in 2009 to realize its vision of
becoming a high-income country by 2020. The approach was centered on ‘delivery labs’ for
priority areas and the Performance Management and Delivery Unit (PEMANDU) was
established to run and monitor the programme. The delivery lab methodology has delivered
significant results in less than 3 years in Malaysia on 18 national key economic areas, such as;
Street crime reduced by 39% from 2010 to 2011, 3.2 million rural Malaysians impacted through
the basic infrastructure programme in 2010-2011, Construction of ~1800 km rural roads, Water
access to ~109,000 new homes, Electrification of ~54,000 new homes, New rail urban
transport rail system 11% of travel in Kuala Lumpur

The Malaysian model Malaysia is seen as “a newly industrialized country that has one of the best
economic records in Asia and is on its way to soon become a developed country.” Malaysia,
which is expected to achieve a “developed” status by the year 2020, was a predominantly mining
and agricultural-based economy like Tanzania is now. But in the 1970s it began a transition
towards a more multi-sectoral economy and from the 1980s; the industrial sector has led
Malaysia’s growth. It’s important to note that at the time of its independence in 1957 Malaysia
had the same level of development as that of Tanzania (by then Tanganyika), one of the poorest
countries in the world, by the time it gained independence in 1961. Therefore, our government
has decided to learn from the Malaysian model and be able to customize it into the context of
Tanzania’s environment at all dimensions due to the great strides the country of Malaysia has
made in its 50 years of independence.

The BRN implementation will start in the Financial Year 2013/14, being part of the
government’s effort to transform the country into a middle-class economy, with a starting budget
allocation of TSh4.2 trillion where as more budgetary allocations for development projects
would be made to the priority areas to ensure the country moves fast forward. The six priority
areas to be implemented in the next fiscal year include: (1) energy and natural gas, (2) transport
(3) agriculture (4) water (5) education and (6) revenue collection.
What will BRN do differently to address constraints to Tanzania’s transformation?

Academicians, policy makers and development practitioners are optimistic on BRN output as it
appears to have addressed weaknesses of previous programs. Such weaknesses include; Lack of
relentless focus on few priorities of high value/impact; failure to translate guiding plans into
detailed programs; lack of a strong monitoring and evaluation system with a clear link between
performance and the rewarding system, especially failure to hold people, including political leaders,
accountable for results and absence of a mechanism dedicated to supporting implementing units
and resolving challenges along the way.

Tanzania is determined to follow the BRN path despite various challenges that have been enlisted by
experts as poor attitude and bad work ethic of civil servants, inadequate pay, which partly fuels
corruption and bureaucracy and weak institutions. A body called “President’s Delivery Bureau” has
been created to oversee the general implementation of government priorities. The Bureau will be
under the President’s Office and will bring together experts and key stakeholders who will choose
and agree on priorities as well as refine them to make them implementable. At one point the public
would be involved on the choice and the implementation of priorities.

A mechanism will track performance of decision makers and implementers in the selected priorities
and those who fail to meet targets would be forced to resign. Six ministers in whose dockets the six
priorities fall have committed themselves to be evaluated by the initiative and said they would resign
if they fail to meet their targets. Malaysian experts have been in the country coaching 300 Tanzanian
experts on how the country can move forward by implementing the six priority areas articulated in
the Tanzania National Development Vision 2025. In April 2013, Chris Tan, director for Performance
Management and Delivery Unit (Pemandu), a Malaysian government agency conducting the
coaching, said that the coaching focused on the six priority areas identified by the government of
Tanzania.

Recently various ministries have been launching their sub-sectoral BRN development strategies,
among them the ministry of education which unlocked the targets and functional structures of its first
wave of BRN Labs and other labs waves will follow as indicated in figure 12. The lab includes key
stakeholders (20-30 people) relevant to solve the defined problem, and is selected from the public,
private and social sector. These labs are expected to put the BRN’s house in order by developing
subsector workable strategies which reflect resource realities. Of the recent BRN labs the priority is
in six areas namely, infrastructure, economic welfare, social welfare, and government welfare which
will be achieved by meeting sub sectoral targets between 2013 and 2014 in four main waves.

Figure 12: Sequencing of Labs per Wave Based

Source: Prime minister’s office report 2013

• National strategy for growth and reduction of Poverty (NSGRP):

This is a long term strategy for growth and reduction of poverty which has just completed its
first phase in 2010 and is now in second phase of implementation that ends in 2015. In short
NSGRP is divided into the following phases:

a. NSGRP-1: Implemented from 2005/2006 to 2009/10

b. NSGRP-II: Is being implemented from 2010/2011 to 2014/2015

i. The National strategy for growth and reduction of Poverty (NSGRP): First Phase

First phase had built foundation for the second phase of NSGRP to thrive especially in
accelerating economic growth, reducing poverty, improving the standard of living and social
welfare of the people of Tanzania as well as good governance and accountability. There have
been many challenges under the first phase which serve as lessons to the second phase.

MKUKUTA I: Achievements

MKUKUTA I yielded demonstrable positive results. Since 2005, the economy grew at 7 percent
quite in line with the set target of 6 – 8 per cent per annum. However, the achievements could
have been much higher had the Tanzanian economy not been affected by daunting local and
global challenges during the implementation period. First, there was the most severe drought,
which adversely affected crop production, livestock and power generation to proportions never
experienced in recent decades.

At the global level, our economy was negatively impacted by high oil and food prices and the
global financial and economic crises. Much affected, in this regard, have been the volume and
prices of exports, the flows of capital and investment, tourist arrivals and earnings from tourism.
MKUKUTA I was also marked by significant improvements in the provision of public services
including education, health, water, energy, telecommunications and infrastructure, particularly
roads. Provision of these services was made possible by increased domestic revenue collection as
well as support from development, also made significant contribution. Government revenues
increased from a monthly average of Tanzanian shillings 177 billion in 2005/06 to Tanzanian
shillings 390 billion in 2009/10. Access to education has increased at all levels, with tremendous
increase happening with secondary school education. Some 2,171 new public secondary schools
were built in the last five years through community participation and government cooperation.
This is by far, a bigger achievement compared to the 1,202 secondary schools constructed since
independence in 1961 up to 2005. As a result of this expansion, the number of secondary school
students has increased from 524,325 in 2005 to 1,638,669 in 2010.

MKUKUTA I: Challenges

There are challenges of huge demand for teachers, textbooks, science laboratories and teachers
housing which are being addressed and will have to be addressed more strongly in MKUKUTA
II and beyond. Access to health services has increased though modestly, following the
conception of the new Health Policy in 2007 and the designing of a Primary Health Service
Development Programme (2007 – 2017). New health facilities– dispensaries, health centers and
hospitals were constructed and availability of equipment and medicines has been improved.
Among the major objectives of the new policy and programme is to bring health care services
closer to the people, at a distance of not more than 5 kilometers, improve referral system at all
levels and availability of health workers including doctors and nurses. Making clean and portable
water accessible to people has been one of the daunting challenges. Very modest success was
achieved under MKUKUTA I with access to water increasing from 53.7 percent in 2005 to 60.1
percent in 2010 in rural areas and from 74 percent in 2005 to 84 percent in 2010 in urban areas.

There has been notable achievement with regard to roads although the task ahead remains
enormous for a country of 945,000 sq. km. with 86,472 km of roads of which only 6,700 is
paved. Over 2,200 kilometers of roads have been upgraded from gravel to tarmac in the last five
years. Many regional, urban and rural roads and bridges were constructed or repaired and
maintained making majority of them passable throughout the year. With regard to good
governance and accountability, notable progress has been made under the National Framework
on Good Governance and various reforms. Public financial management has improved and the
judicial system has been significantly expanded. Efforts to increase gender equality in leadership
positions are bearing encouraging outcomes and the fight against corruption has been
strengthened.

Obviously challenges abound in each area and these are what we look forward to addressing in
the course of implementation of MKUKUTA II. We need to increase economic growth and raise
peoples’ incomes. We have not done well in reducing income poverty in MKUKUTA I, we have
to do better in MKUKUTA II. We need to consolidate the gains in education by addressing
various challenges emanating from the rapid expansion of secondary and tertiary education. We
need to further improve peoples’ health by building stronger capacities to prevent and cure
diseases. We need to further increase access to health care by the people of Tanzania and scale
up efforts to reduce child and maternal mortality and eliminate malnutrition. We need to make
available to every Tanzanian, clean and portable water close to their homesteads. We need to
connect our country with efficient modes of transport and communication networks. And, last
but not least, we need to sustain and advance the achievements made in good governance and
intensify the fight against corruption

1. The National strategy for growth and reduction of Poverty (NSGRP): Second Phase

This is the Second National Strategy for Growth and Reduction of Poverty (NSGRP II) to be
implemented between 2010/11 and 2014/15. In the Tanzanian lingua franca, Kiswahili, it is
known as Mpango wa Pili wa Kukuza Uchumi na Kuondoa Umaskini Tanzania or MKUKUTA
II. As with MKUKUTA I (2005/06 – 2009/10) the focus continues to be that of accelerating
economic growth, reducing poverty, improving the standard of living and social welfare of the
people of Tanzania as well as good governance and accountability. MKUKUTA II, like its
predecessor, is a vehicle for realizing Tanzania’s Development Vision 2025 for mainland and
Vision 2020 for Zanzibar, the Millennium Development Goals (MDGs)

The National Strategy for Growth and Reduction of Poverty second phase (MKUKUTA II) is
implemented through various development and reform programmes. Progress in implementation
is reported annually through MKUKUTA Annual Implementation Report (MAIR). MAIR tracks
progress in poverty reduction to inform implementation of MKUKUTA II and Five Year
Development Plan (FYDP). The implementation of the second phase has brought many
achievements in poverty alleviation however there are still many challenges to address.

MKUKUTA-II Challenges

i. Inadequate Monitoring and Evaluation (M&E ) capacity at all levels:

During the first phase of MMS implementation, the government took measures to strengthen
Monitoring and Evaluation functions at Ministries, Departments and Agencies (MDAs) and
Local government Authorities (LGAs) levels. A number of M&E units were established to
specifically carry out M&E activities throughout government machinery. However,
challenges remain on capacity development. Inadequate capacity has constrained the
implementation of the Strategic Planning, Budgeting and Reporting Manual designed with
the intention to generate information for indicator reporting at the national level.

ii. Funding for MKUKUTA monitoring systems (MMS):

Since 2001, implementation of MMMP has largely relied on the contribution of

Development Partners and Government through pooled funding system. However, with time,
contribution has trended downwards. While data generation is supported by TSMP other
functions namely research and analysis, and communication, as well as coordination are not
adequately funded.

iii. Uneven data quality and accessibility:

Both availability and quality of data vary by sector. Lack of a standardized and harmonized
format has led to uneven quality of Sectoral Reports. Data analysis, interpretation and use
remain relatively weak. The recent approved Tanzania Statistical Master Plan (TSMP)
provides an opportunity for addressing this challenge.

iv. The Evaluation function is underplayed:

The Poverty and Human Development Reports (PHDRs) have, to some extent, been providing
evaluative outputs. However, other elements of outcome evaluations, such as impact assessments
by comparing indicators before and after (without attributing the change) and comparison of
targeted values to actual values are still limited.

INDUSTRATION POLICY AS A STRATEGY TO ALLEVIATE POVERTY AND

RANSFORM THE ECONOMY TO MEDIUM INCOME BY 2025

Change in Tanzania is both slow and fast. While most rural households report living without
electricity, without a motor vehicle and without concrete walls, Dar es Salaam has nearly
doubled in size in the ten years between 2002 and 2012: from 2.5 million to 4.4 million. GDP per
capita was USD 316 in 2001 and has more than doubled to USD 652 in 20121 . Ten years ago,
relatively few Tanzanians owned a mobile phone. Today, every second Tanzanian has at least
one phone, and eight out of ten households in Tanzania own at least one mobile phone.2 Things
have thus been changing considerably: urbanization has been speeding up, GDP per capita has
increased, and natural gas has become an important national issue following significant
discoveries along the coast. What do the next ten years hold in store for the country? And what
do ordinary citizens believe will happen in 2025? Sauti za Wananchi at Twaweza is Africa’s first
nationally representative mobile phone survey (http://www.twaweza.org/sauti). In the 23rd call
round, conducted between 13 August and 22 August 2014 in collaboration with the Society for
International Development (SID), we reached 1,408 respondents to seek their views on the future
of Tanzania. This brief contains an overview of their responses. This brief’s key findings are: •
One out of two citizens expect their lives to be better in the future, and a slightly larger number
see themselves as having the biggest influence on their own future well-being • Two out of three
citizens believe that the country will be a “good place to live in” in 2025 • Nine out of ten
citizens see important national decisions being under national control • Seven out of ten citizens
believe Tanzania will be a middle-income country by 2025, but only four out of ten see Tanzania
qualifying for the World Cup • Citizens highlight the quality of social service delivery, economic
growth and national unity as their top three priorities for the future 2. Six facts about
expectations for 2025 Fact 1: One out of two citizens expect life to be better in the future When
asked to imagine their life in 2025, one out of two Tanzanians believe their life will be better.
That said, a significant minority of almost one out of five citizens (18%) believe their life will be
worse (Figure 1). Responses to this question did not vary over whether the respondent was a man
or woman, rich or poor, their educational level, or whether they lived in a rural or urban part of
the country (data not shown).3 Broadly, everyone shared this split between optimism and
pessimism.

To compare with a regional and global average, we use data from the Pew Research Center’s
2014 Global Attitudes Project4. This worldwide survey asked whether people believed their
children would be financially worse or better off than their parents. In general, about one out of
two respondents from African countries believed their children would be financially better off.
This is in stark contrast with developed countries – in Europe and the United States – where
people believed that their children would be financially worse off.

Fact 3: More than half are optimistic about Tanzania Shifting from the personal to the political,
Tanzanians are similarly optimistic. Two out of three citizens believe that the country will be a
“good place to live in” in 2025; these numbers vary only slightly when comparing the poorest
(who are slightly more optimistic, at 68%) with the wealthiest (64%). However, these differences
are not statistically significant. Looking at the data another way, one out of four of the wealthiest
citizens believe that the country will be a “bad place to live in” in 2025.

Fact 4: Nine out of ten citizens believe important decisions will be under national control As well
as believing that they control their own future (Fact 2), nine out of ten citizens believe that the
future of Tanzania is in the hands of Tanzanians: either via the country’s leaders, or ordinary
citizens (Figure 5). Foreign investors and donors are very rarely seen to have control over
important issues - no one mentions the United Nations, for example (Figure 5). Given the
country’s reliance on donor support to fund the budget and foreign direct investment to generate
revenues from tourism and mineral exports, this is an interesting finding. Tanzanian elites are
only seen to be the most important by 0.1% or 1 out of 1000 respondents

Fact 5: Citizens say service delivery, economic growth and national unity are the top priorities
for the future When citizens express what they think are the most important future priorities for
the country, the most common issue (28%) is the quality of government services like education
and healthcare (Figure 6). Economic growth, maintaining national identity and protecting
Tanzania’s natural resources are the next most popular options – at 16%, 11% and 11%,
respectively
Fact 6: Seven out of ten citizens believe Tanzania will be a middle income country by 2025 The
Tanzania National Development Vision 2025 aims to move Tanzania to middle income country
status by 2025. Seven out of ten citizens believe this will happen (Figure 7). In addition to this,
slightly less than seven out of ten (68%) expect to see a female president in the next ten years. In
contrast, religious conflicts and the disappearance of elephants are expected by six out of ten
Tanzanians (Figure 7). About half (51%) expect the United Republic will split. Events
considered less probable include Tanzania qualifying for the World Cup (38% believed this
would happen), and the formation of the East African Federation under one president (33%)
(Figure 7). While these expectations varied little over different types of people, one group stood
out: Form 4 graduates were more likely to believe that elephants will disappear, that Tanzania
will not qualify for a World Cup, and that the union of Tanzania will be split (data not shown
here). Note that these data were collected in August 2014, and do not reflect changes that may
have occurred due to recent political developments.

Conclusion

The general story we can see from this data is that Tanzanians are remarkably optimistic – even
across groups (men and women; urban and rural; wealthy and poor) – yet this optimism
sometimes seems to run against key challenges or areas of concern. For example, two out of
three Tanzanians are optimistic about the country, believing it will be a good place to live in
2025 (Fact 4). Yet nearly two out of three also anticipate religious conflicts over the same period
(Fact 7). At first glance, this seems contradictory. One interpretation could be that those who
expect religious conflicts expect these to be small, localized, and temporary. Another
interpretation could be that citizens’ expectations for positive developments outweigh their
expectations for negative events. These expectations do not vary across groups of men and
women, urban and rural residents, the young and old. We found no (statistically) significant
difference between any of their responses and expectations about the future. The young, for
example, are just as likely as the old as to believe that Tanzania will be a good place to live in in
2025. There are a variety of ways to interpret this arguably surprising similarity of expectations
about the future between the different groups of citizens. First, the conventional expectation that
Tanzania’s youth hold different views from their older compatriots, or men from women, or even
rural from urban residents may be untrue. All groups are similarly largely optimistic about the
future, and share the same worries about religious conflict, a split of the country and the
disappearance of elephants. Does this similarity of views about the future across Tanzania’s
various demographic divides point to a reason for Tanzania’s relative social stability? It is an
idea worth further exploration.

So what will become of Tanzania? Economically, there are two potential threats. The country
may face a financial squeeze in the coming years, as its major donors and trading partners in
Europe experience increasing uncertainty around the Euro, migration pressures, and a
potentially prolonged economic slowdown. This may have negative long-term impacts on
both aid flows and revenue from tourism in Tanzania. At the same time, expectations of large
revenues from gas may not be realized if the global price falls further due to emerging global
oversupply of gas following increased US production and lower world demand . These
possibilities were not explored in the survey, but they will likely affect whether Tanzania
achieves middle income status by 2025, as anticipated by almost three out of four
Tanzanians. That said, Tanzanians’ shared optimism can be an asset in the coming years, as
the country deals with the constitutional process, natural resource expectations and
governance, increasing urbanization, an uncertain global economy, and the long fight to
reduce poverty. The challenge, for the Tanzanian Government, local elites and citizens
themselves, is to ensure that this optimism is harnessed through effective policy making and
implementation, promoting equitable development and building social cohesion, so that
citizens’ aspirations for a brighter future are met.
CHAPTER 5: ENVIRONMENTAL ISSUES AND SUSTAINABILE DEVELOPMENT
INTRODUCTION

The world “sustainable” is ubiquitous in speeches by politicians, economists, policy-makers and

scientists. It is the buzzword to attract findings for development initiatives or research.

“Sustainable development has become the watchword for international aid agencies, the jargon
of development planners, the theme of conferences and learned papers, and the slogan of
developmental and environmental activists” (Lele, 1991) To some authors, for instance, Allen
and Hoekstra (1991), “...everyone agrees that sustainability is a good thing” (Bell et al., 2008, p.
3)

To others, for instance, Fortune & Hughes (1997), “... it [sustainability] is an empty concept,
lacking firm substance and containing embedded ideological positions that are, under the best
interpretation, condescending and paternalistic”(Bell et al., 2008, p. 3) Sustainable development
has now become a policy that many countries are being asked to pursue. Several events have
influenced this paradigm:

The Brundtland Report, [1987 World Commission on Environment and Development (WCED)],
the Earth Summit, 1992, Rio de Janeiro and the World Summit, 2002

Finding a unified theoretical definition of sustainable development is still difficult. At the

heart of each conceptual approach to sustainable development are the shared fruits of
development across generations.

The Brundtland Report views sustainable development as serving many different (possibly
competing) goals:

1. Economic development

2. Better environment

3. Concern for human well-being now and in the future

1/ “Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs” (The Brundtland Report,
1987, p. 42). (The report was named after the Commission Chairwoman, Gro Harlem
Brundtland)

The Brundtland Report views sustainable development as serving many different (possibly
competing) goals:

1. Economic development

2. Better environment

3. Concern for human well-being now and in the future

1/ “Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs” (The Brundtland Report,
1987, p. 42). (The report was named after the Commission Chairwoman, Gro Harlem
Brundtland)
“Development that improves the quality of human life while living within the carrying capacity
of supporting ecosystems” [IUCN, 1991, (International Union for Conservation of Nature)] Thus
the goals of economic and social development must be defined in terms of sustainability in all
countries - developed or developing, market-oriented or centrally planned.

The Brandtland Report contains within it two key concepts:

The concept of 'needs', in particular the essential needs of the world's poor, to which overriding
priority should be given; and

The idea of limitations imposed by the state of technology and social organization on the
environment's ability to meet present and future needs

The essential needs of vast numbers of people in developing countries for food, clothing, shelter,
jobs - are not being met, and beyond their basic needs these people have legitimate aspirations
for an improved quality of life. A world in which poverty and inequity are endemic will always
be prone to ecological and other crises The living standards that go beyond the basic minimum
are sustainable only if consumption standards everywhere have regard for long-term
sustainability.

Sustainable development requires the promotion of values that encourage consumption standards
that are within the bounds of the ecological possibilities and to which all can reasonably aspire.
Sustainable development requires that societies meet human needs both by increasing productive
potential and by ensuring equitable opportunities for all. Sustainable development can only be
pursued if demographic developments are in harmony with the changing productive potential of
the ecosystem.

Sustainable development can only be pursued if demographic developments are in harmony with
the changing productive potential of the ecosystem. A society that overexploits resources may
compromise its ability to meet the essential needs of its people in the future. Sustainable
development must not endanger the natural systems that support life on Earth: the atmosphere,
the waters, the soils, and the living beings.

ROOTS OF SUSTAINABILITY
Sustainability originally was associated with the maintenance of environmental quality. But
sustainability is so a multifaceted concept, making its origins complex: There are six possible
roots:

1/ Ecological/carrying-capacity root:

The carrying-capacity alludes to the notion that an ecological system (ecosystem) can only
sustain a certain density (carrying capacity) of individuals, as they all use resources existing the
system. When there are too many individuals in that system, there is an overshooting of the
carrying capacity, resulting in an overuse of the resources, and ultimately in the collapse of the
system and the population.

The Maximum Sustainability Yield (MSY) is a crucial concept in the ecological/carrying-

capacity approach, and it attempts to measure the management of the resource at a sustainable
level. If the MSY of an ecosystem has been exceeded, say, because of greed or overpopulation,
the system will collapse with disastrous or dire consequences to the population that depends on
it. The concept of carrying capacity has been central in ecology and at the heart of the other 5
strains of sustainability roots.

2/ Critique of technology root

The critique of technology root of sustainability came during the 1960s and 1970s as a counter
measure to the perceived indiscriminate use and transfer of technologies that may be dangerous
to the environment. Ex: the use of pesticides.

Rachel Carson published a book, Silent Spring, in 1962 to invoke a spring without bird-songs, as
the birds would be killed by the widespread and extensive use of pesticides. Recently, there has
been a concern about the application genetic engineering within crop and animal, sometime
referred to as “Frankenstein food”

All the same, agriculture has been at the heart of the sustainability debate for the 2 reasons:

a. Agricultural lands or systems occupy large areas of land -far more than any other type of
industry, except forestry. So, what happens in agriculture can have some major effects on the
environment.
b. Food is the end product of agriculture, destined for consumption by all of us! Agriculture is
one of the major foundations of human society. Because of such a concern of the ill effect of
certain chemicals on the environment and the food that sustains our existence, there has been a
move toward the promotion of a sustainable agriculture along concepts such as: agro-ecology,
ecological food, alternative agriculture, or low-input sustainable agriculture (LISA)

3/ Resource/Environment root

The environment is understood as the totality of all the external conditions affecting the life,
development and survival of an organism or, as the naturally produced physical surroundings on
which humanity is entirely dependent in all its activities.

The various uses to which these surroundings are put for economic ends are called environmental
functions

3/ Biosphere root

The term itself was first defined and developed in 1926 by the Soviet scientist Vladimir
Vernadsky (1863-1945), who indicated that a biosphere was a stable, adapting life support
system with the potential to be a major geological force on the surface and ecosphere of a planet.
Under the right conditions, this geological force could transform the electrical, thermal, chemical
and mechanical energy of the universe to meet its own needs

Figure 16: Environmental compositions

4/ Resource/Environment root

If needs are to be met on a sustainable basis the Earth's natural resource base must be conserved
and enhanced. Pressure on resources increases when people lack alternatives.

5/ No-growth/Slow growth root 6/ Eco-development root Eco-development refers to

development at regional and local levels, consistent with the potentials of the area involved, with
attention given to the adequate and rational use of natural resources, technological styles and
organizational forms that respect the natural ecosystems and local social and cultural patterns.
Eco-development refers to development at regional and local levels, consistent with the
potentials of the area involved, with attention given to the adequate and rational use of natural
resources, technological styles and organizational forms that respect the natural ecosystems and
local social and cultural patterns.

Adaptive Management” Ethical Approach Adaptive management is a search for a locally

anchored conception of sustainability and sustainable management, which sets out to use science
and social learning as tool to achieve cooperation to pursue management goals (Atkinson, et al.,
2007).
There are 3 characteristics in the process of defining adaptive management: 1/
Experimentalism: Adaptive managers should respond to uncertainty by undertaking reversible
actions and studying outcomes to reduce uncertainty at the next step of decision. 2/ Multi-Scalar
Modeling: Adaptive managers model environmental problems within multi-scaled
(‘hierarchical’) space-time systems. Multi-scalar thinking emphasizes experience, and is a
forward-looking, pragmatic, problem-solving attitude. When scalar choices are subject to a
public discussion, it can provide insights into the temporal and spatial horizons in which impacts
can be measured, and processes of change can be monitored. 3/ Place-Orientation: Adaptive
managers tackle environmental problems from a “place,” meaning that problems are embedded
in a local context of natural systems and political forces. Adaptive management is an active
mission-oriented science/approach that often takes place in a context where stakeholders have
different perspectives and interests.

Diversity of perspectives and differences about value are the key aspects that make it difficult in
deciding the exact problem to be addressed. Environmental disputes are very difficult because,
among other reasons, it is difficult to provide a definite problem formulation “Benign” vs.
“Wicked” problem (See Rittel & Webber, 1993)

“Benign” problems have determinate answers, the solution of which uncontroversial solves the
problem.“Wicked” problem have difficulty getting a unified way to formulate the problem.
Different interest groups with different goals perceive the problem differently, therefore, these
groups cannot agree on a determinate solution because they do not have a unified problem
formulation

The problem may be temporarily solved, but as the situation changes, so does the problem, and
even becomes more open-ended. Environmental are generally wicked problems, as they affect
multiple values and impact different elements of the community, thus encouraging multiple
models of understanding and solutions. Wicked problems require iterative negotiations to find
even a temporarily solution
“Hierarchy Theory” (HT) to assess environmental problem -Ecologists suggest HT to clarify
space-time relations in complex system.HT has 2 axioms that coincide with the 2nd and 3rd
characteristic of adaptive management.

HT involves a set of models of ecological systems that are characterized by 2 constraints on the
observer and the behavior of the system. (i) “The system is conceived as composed of nested
subsystems, such that any subsystem is smaller (by at least one order of magnitude) than the
system of which it is a component, and (ii) all observations of the system are taken from a
particular perspective within the physical hierarchy”

Pragmatic environmentalism has encouraged the expansion of (ii) to (ii’), in which all
observations and evaluations are provided from a particular perspective within the physical
hierarchy

With this conceptual apparatus, environmental values, evaluations and social learning about the
values are endogenous to the broader, adaptive management process. Human decision-makers
are located within layered subsystems and super-systems, with the subsystems being the fastest-
changing, and the larger systems changing more slowly. “Hierarchy Theory” (HT) to assess
environmental problem

In adaptive management, one has to “think like a mountain” (Leopold, 1949), that is thinking
about the issue in the broader system. Thinking like a mountain requires the accepting
responsibility of the impact that one’s decisions will have on subsequent or future generations.
So, “Human management of the environment takes place within environmental systems as they
are embedded in larger and larger -and progressively slower-changing - super systems”
(Atkinson, 2007, p.38) Each generation is concerned for its short-term well-being and survival,
but also must be concerned for leaving a viable range of choices for future generations.

Each generation should accept responsibility for its activities that can alter the choices that will
available to its posterity. From this conception of adaptive management, a concept and
schematic definition of sustainability can draw. (See figures, next slides.) The usage and
consumption of resources of an earlier generation can alter the chances of survival of subsequent
generations. Over-consumption of resources of one generation will make the survival of the
next generation more difficult. “A set of behaviors is thus understood as sustainable if and only
if its practice in generation m will not reduce the ratio of opportunities to constraints that will be
encountered by individuals in subsequent generations n, o, p” (Atkinson et al, 2007, p. 41)

The environment gives us a set of opportunities and constraints. Generation G 1 is living

sustainably over a given time horizon if and only if that generation fulfills its needs without
reducing the ratio of opportunities to constraints as faced by Generation G2, G3. . . GN.. In a
normative-moral stance, a policy or action is not sustainable if it does reduce the ratio of
opportunities to constraints for the future. Each generation stands in an asymmetric
relationship to the subsequent ones, and the choices made today can reduce the ranges of free
choices available to the next generations.

Figure 17: A Hierarchical Model of Resource Use

Ratio Examples:

1. Opportunity & 1 Constraint ==> Ratio 1/1 = 1 (Sustainable, stable)

2. Opportunities & 1 Constraint ==> Ratio 2/1 = 2 (Sustainable, better)

3. Opportunity & 2 Constraints ==> Ratio 1/2 = 0.5 (Unsustainable, trouble for future
generation)
4. Opportunity & 4 Constraints ==> Ratio 1/2 = 0.25 (Very Unsustainable, more trouble
for future generation)
 The schematic definition of sustainability that Atkinson et al. discuss captures 2 important
and basic intuitions of sustainability.

(1) Sustainability, with a multi-scalar and multi-criteria analysis is a relationship between

2 generations at different time -a relationship that involves the physical existence of
important opportunities-

(2) and that this relationship rides on an important normative dimension, one that cannot
be captured by economic measurement, but one that involves intergenerational equity.

Adaptive management, as an ethical approach, involves a search for better understanding, goals
and decisions. It has a pragmatic line of analysis that contributes to the pursuit of sustainable
development. “By recognizing that we can learn from experience, and by developing multiple
criteria associated with different scales, it is possible for a community ... to learn itself into a new
set of indicators, a new set of concerns, a whole new understanding of their place and the space
around that place”.

Figure 18: Graphic Representation of Sustainability from the UN View

Figure 19: Graphic Representation of Sustainability from the UN View

Source: UN View’s of sustainable development

Three (3) Operational Rules of Sustainability

1/ Renewable resources such as fish, soil, and groundwater must be used no faster than
the rate at which they regenerate.

2/ Nonrenewable resources such as minerals and fossil fuels must be used no faster than
renewable substitutes for them can be put into place.

3/ Pollution and wastes must be emitted no faster than natural systems can absorb them,
recycle them, or render them harmless.

Requirements for Economic Sustainability

Economic sustainability, it is assumed, means creating the conditions that are necessary to allow
economic production to continue into the indefinite future. Continuity [of economic production
into the (indefinite) future] does not mean that the structure and output of the economy of today
is to continue unchanged forever. Continuity [of economic production into the (indefinite)
future] rather means keeping the possibility of arranging economic activity in whatever way
will suit future needs; therefore, choices made today should not prevent future generations from
making their own choices.

A static economy is undesirable because conceptions of a good life are different and have
changed significantly over time and will certainly continue to do so. Thus, our legacy to future
generations should not be economic stasis, but the bequeathing or passing along of
undiminished, and preferably enhanced, means of economic production (capital) that we
inherited. Such a bequeathing will allow future generations to tackle the challenge of offering
their version of a good life to as many people as possible. Generally speaking, economic
production in the strict sense of the term has referred only to production that occurs in the
context of market place. The output of businesses and individuals operating for profit, plus the
value of government services. The non-market activities of households or volunteers (cooking,
child rearing, etc.) are not included as production in this sense.

Restricting economic activities to only marketplace activities is very restrictive to the concept of
sustainable development. From a sustainable development stance, much valued (in the
psychological and not the monetary sense) activity takes place outside the formal marketplace.
Non-market activities should be included to any conception of sustainable development.
Production in sustainability should be interpreted as meaning the production of goods and
services both within and outside the market.

Economic production, in the mainstream of modern economic thought, is defined as a function

of four “primary” inputs or factors: labour, produced capital (machinery and other durable
goods), natural resources and land. The first two factors (labor & produced capital) combine
with the last two factors (natural resources & land ) to produce valuable products, which are then
consumed (either to make other products or to satisfy the demands of final consumers).

The sustainability of economic production relies upon the maintenance of the three basic types of
capital—produced, human and natural. Produced Capital Produced capital is defined as
produced goods that provide benefits to their owners over time (as opposed to goods that
provide one-time benefits such as a food). The benefits provided by produced capital goods
are the services they render in the production of other goods and services. (Ex: Machine)
Produced capital deteriorates over time and must eventually be replaced if the economy is
to be sustainable

Natural Capital

Natural capital is the sum of non-renewable resources (oil, natural gas, and minerals), crop land,
pasture land, forests. The long-term sustainability of the economy depends upon the maintenance
of natural capital just as much as it depends on stocks of produced and human capitals.
Intangible Capital

Intangible capital includes assets such as the skills and know-how of the labour force: human
capital. Intangible capital also encompasses the social capital that is the amount of trust among
people and their ability to work together.

From Well-being to Wealth

Would a society be sustainable if equity is enhanced (has increased) while natural resources
are lost or depleted? In a capital approach to sustainability, the concept of social well-being
should be the starting point. Well-being can be said to be the result of the different elements of
what constitutes development, including a clean environment, decent income and social
relations. To have a sustained well-being, the quantity of services and goods produced in an
economy should not diminish from one year to another. Higher income leads to greater or
higher well-being.

A growth in income can help achieve social goals such as poverty alleviation. Measurement of
income, however, does not say much about sustainability. i.e. Higher income does not
necessarily translate into higher sustainability. Let’s say countries A and B produce the same
level of income, but A consumes all its income, whereas B saves a part of it and invests it in a
productive capital. Because of its saving efforts, B will soon be able to generate even higher
level income and thus increase its consumption capabilities.

So, current income and consumption provide a misleading signal. Consideration has to be “... in
the space of all present ad future consumption ... the only valid approximation to a measure of
welfare comes from computing wealth-like magnitudes not income magnitudes” (Samuelson,
1961, pp. 50, 57, quoted in Atkinson et al, 2007, p. 47). Current wealth equals the present value
of future consumption. (According to Fisher’s, 1906, argument, the value of an asset is the
capitalization of the stream of future services that that asset is expected to produce)

For the relationship between current and future consumption and wealth to hold, one should
necessarily make sure that in current wealth, all the assets that are needed to generate well-being
are included. Fisher (1906) identified 3 types of assets:

1. immovable wealth (comprised of land and fixed structures upon it)

2. movable assets, or commodities

3. human beings

If we consider wealth a correct measure to well-being, then sustainability can be expressed in

terms of changes in wealth. Capital approach to sustainability can thus provide a simple, straight
forward-looking guide to policy makers. From a capital approach to sustainability, “... a
development is sustainable if social well-being, that is, the present value of current and future
consumption, does not decline at any point along the path: V ≥ V , for t > 0 Since social
welfare = wealth, a sustainability test will require that wealth does not decline over time =>
“... the level of net saving, adjusted to take into account the net changes in natural and human
capital, should be positive for the economy to be sustainable” (Atkinson et al, 2007, p. 47)
According to the OECD, “Sustainable development is development that ensures non-
declining per capita national wealth by replacing or conserving the sources of that wealth; that
is, stocks of produced, human, social and natural capital.”

Bhutan & the Concept of Sustainable Development

The 4th King of Bhutan, His Majesty Jigme Singye Wangchuck introduced the concept of
Gross National Happiness (GNH) in 1972. The concept of Gross National Happiness (GNH)
stresses a balance between economic development, environmental preservation, cultural
resilience and good leadership or governance. In a way, Bhutan, politically speaking,
spearheaded the concept of sustainable development as a policy that should be implemented in
the developmental goals of a country. The wisdom of Bhutan about sustainable development
preceded the UN’s awareness about this issue.
Understanding and Desiring Well-being as the Key Concept

All societies desire the well-being of their constituents But the question is how do we define
well-being and maximize it? To the concept of GNH, the indicators of the well being of a society
is very important, because indicators embody values people care about, indicators help us make
decisions and ultimately drive policies toward progress. A positive growth of the indicator may
be viewed as a sign of progress

A negative growth (decline) of the indicator may be viewed as a lack of progress looking into as
many indicators as possible, we will be able to circumscribe as much as possible the
phenomenon under observation. GDP, The Widely Used Indicator Perhaps, the most widely
used indicator of the well-being of a society has been GDP (Gross Domestic Product) The
concept of GDP was developed in the US to manage the Great Depression and later the war time
economy. According to encyclopedia Britannica (2009), “GDP is the total market value of the
goods and services produced by a nation's economy during a specific period of time” (quoted in
Braun, 2009).

GDP, the Widely Used Indicator

Thus, GDP was meant to measure the output of a country in any given year, that is, the addition
of goods and services produced in an economy, how much money is exchanging hands. Never
was GDP designed to measure social well-being or progress “Somehow, over the last 30-40
years, GDP has been seen as a measure of progress although it was never developed for that
purpose... If GDP was going up, then everything was fine in our society. GDP has been guiding
institutions and politics. We need to say, ‘No, GDP is not a measure of progress.’ It is one
measure of progress perhaps, but there’s many other things to think about” (Jon Hall, The
OECD’’s Global Project on Measuring the Progress of Societies) Thus, GDP, it is argued cannot
singlehandedly measure the complexity of the progress and well-being of a society. GDP can be
one measure, but not the wholesome measure. In a society where most people are worse off, if a
few groups of individuals are doing well, GDP can increase. EX: USA; GDP has steadily
increased from 1999 to 2007, but most Americans have experienced a declining in their
standards of living.
In 1986, King Jigme Singye Wang chuck told the Financial Times during an interview in London
that “Gross National Happiness is more important than Gross National Product” This statement
should not been perceived as a qualitative comparison of GDP & GNH. Rather, it is an indication
that looking at GDP alone may not be suitable to gauge sustainability of the socio-economic life
of a society. GNH is suggesting that there should be a more holistic approach to sustainability.

Enter the Gross National Happiness (GNH) Indicator

The four pillars of GNH are:

i. Equitable Economic Development

ii. Environmental Preservation
iii. Cultural Resilience
iv. Good Governance
Figure 20: The four pillars of GNH can be found more or less in the UN graphic representation
of sustainability: Economic, Social, & Environment.

The Center for Bhutan Studies (CBS) in Thimphu, the capital city of Bhutan, has developed its
GNH index, comprising 9 indicators to measure the well-being of people of Bhutan:

i. Psychological Wellbeing
ii. Time Use
iii. Community Vitality
iv. Cultural Diversity and Resilience
v. Health
vi. Education
vii. Ecological Diversity and Resilience
viii. Living Standard
ix. Good Governance
Complementariness of GNH & GDP

The GNH index (9 indicators) that Bhutan has suggested is specific to Bhutan, to measure the
way they perceive well-being (happiness) as it is related to sustainability. The application of
GNH in other countries can be very different, as well-being (happiness) may be differently
perceived. GNH, however, may have some cross cultural indicators: Standard of Living,
Education, Ecological Diversity & Resilience, Health, & Good Governance. Thus, after
measuring GDP, the researcher should measure (some) GNH indicators to see sectors that
need remedy or improvement for sustainability.

Ecological Economics (EE)

Ecological economics was founded towards the end of the 1980s.

Ecological economics views the economy as a subsystem of a larger local and global
ecosystem that has a physical limitation of the growth of the economy. Ecological economics
is a combination of elements of ecology and economics, as well as elements of
thermodynamics, ethics and other natural and social sciences in order to provide a
biophysical perspective on the interaction between the environment and the economy.

Weak Sustainability vs. Strong Sustainability

The meaning of sustainability is the subject of intense debate among environmental (and
resource) economists. The debate currently focuses on the substitutability between the
economy and the environment, a debate captured in terms of “weak” vs. “strong”
sustainability

Weak Sustainability
 Weak sustainability is the maintenance/use of “total capital,” that is, the “sum” of
“economic capital” and “natural capital”

1. Economic capital includes machines, labor and knowledge

2. Natural capital includes resources, the environment and nature

Weak sustainability implicitly assumes that savings are invested in manufactured capital or
human capital, and that human capital can perfectly substitute for natural capital. (Human
capital can replace natural capital). Countries with depleted resources and ecosystem damage
may look sustainable. E.g. Japan & the Netherlands have hardly any forest land, but they
have the human capital & manufactured capital that includes machines, labor and
knowledge

Weak Sustainability

“A development is ... said to be weakly sustainable if the development is non- diminishing

from generation to generation. This is by now the dominant interpretation of sustainability.”
(Brekke, 1997, quoted in Ayres & al) (This view is dominant among economists, not
ecologists and most other natural scientists) Sustainability, in economic growth theory, is
generally translated into intergenerational equity. (Dominant economic view) Weak
Sustainability Weak sustainability is methodologically expressed in terms of economic
growth. Sustainability is interpreted as constraint on economic growth. => Sustainability
means non-decreasing welfare. A decrease in welfare implies an unsustainable development.

The problem with the weak sustainable approach (with its formulation in growth theory
with environment or resources) is that is was explicitly formulated with non-renewable
resources, and not for complex biological system. “Therefore, growth theory cannot offer a
complete, and perhaps not even a relevant, perspective on sustainability” (Atkinson et al,
2007, p. 66)

Strong Sustainability

Strong sustainable is the alternative to weak sustainable.

‘Strong sustainability’ sees sustainability as non- diminishing life opportunities that can be
achieved by conserving the stock of human capital, technological capability, natural resources
and environmental quality (Brekke 1997 p. 91). Minimum amounts of a number of different
types of capital (economic, ecological, and social) should be independently maintained, in real
physical/biological terms

Motivations for insisting on minimum maintenance of types of capital:

1. The major motivation: the recognition that natural resources are essential inputs in
economic production, consumption or welfare that cannot be substituted for by physical
or human capital.

2. A second possible motivation is quasi-moral, that is the acknowledgment of

environmental integrity and `rights' of nature

Very Strong Sustainability

“Very strong” sustainability — supported by the Deep Ecology movement and those who believe
in the ‘right-to-life’ of other species — would profess that every element or subsystem of the
natural environment, every species, and every physical stock must be preserved. The “right-to-
life” of other species as professed by the very strong sustainability approach is viewed as quite
impossible in certain corners: “The first is probably sufficient: the dependence of our current
industrial economy on primary resources. The second problem is that species and ecosystems
are subject to continuous processes of natural change, and while human activity accelerates some
of these processes and inhibits others, humans are -at the end of the day — part of nature. A third
problem is legal and philosophical: if other species have absolute rights, as argued by some,
those rights must contradict other rights, especially property rights that are already enshrined in
law and custom” (Ayres et al.)

Compromised version of Strong Sustainability, cont

A compromise version of strong sustainability focuses on ecosystems and environmental assets

that are critical in the sense of providing unique and essential services (such as life-support) or
unique and irreplaceable non-use values. The ozone layer is an example of the first; songbirds or
coral reefs might be an example of the second. Another way of formulating such a compromise
is to indicate that a minimum amount of certain environmental assets should be maintained
because these assets are partly complementary to economic assets and partly substitutable by the
latter.

Natural Science Perspectives and Sustainability

Many ecologists would support the idea that environmental sustainability is mainly a matter of
stability, resilience and biotic diversity. Stability is defined at the level of biological
populations. This means that variables return to equilibrium values after perturbation. Resilience
(resistance to change or robustness) is defined at the system level, and refers to the maintenance
of the organization or structure and the functions of a system in the facing of stress.
Sustainability can thus be directly related to resilience, where stress relates to human influences

Ecological & Social Resilience

A Social-Ecological system here is a natural resource and its resource users.

Ex: Fishery, a managed forest ecosystem. Sustaining life, wellbeing and the environment into the
future requires an adaptation to new circumstances, potentially unpredictable perturbations and
challenges. Looking into resilience is an attempt to investigate and understand the magnitude of
disturbance that can be tolerated before a system moves into a different, potentially less desirable
state (Gunderson & Holling, 2002; Scheffer et al., 2001).

From this interpretation, resilience has the following three properties:

(a) the amount of change the system can undergo while still retaining the same structure and
function,

(b) the degree to which the system is capable of self-organization (vs. lack of organization or vs.
organization by external forces), and

(c) the degree to which the system can build capacities to learn and adapt.
 The third aspect is a component of resilience that reflects the learning aspect of system
behavior in response to disturbance. Ecosystems, both from terrestrial and marine
environments share common features:

First, change in most ecosystems is not gradual but rather is triggered by external perturbations
(impact of tropical storm on coral reefs, impact of fire on forests, removal of a predator),
Second, spatial attributes in ecosystems are not uniform but are skewed in their distribution
What works for one location will not work for a whole eco-region and Third, ecosystem often
have more than one equilibrium.

The functions which control ecosystem promote stability but there are other destabilizing
influences that create diversity and resilience. ==> Implications for understanding resilience
and for management. Human action can reduce the capacity of ecosystems to cope with
perturbations.(Human actions Ex: over-exploitations, chronic stress from pollution)

Ex: Coral Reefs as a good example of the nature of resilience of ecosystems & interactions with
human. Periodic natural disturbance can be important element to promote diversity and resilience
of coral reef ecosystem. But coral reef resilience is tremendously reduced through chronic stress
as a result of human activities on land: agricultural pollution, poorly treated sewage, over-
fishing.

Ecological sciences stress the importance and relationship between diversity and resilience. Need
to investigate the diversity of response within ecosystems to external perturbations. Different
specifies providing the same function within ecosystems have different mechanisms for
retaining the resilience of the system.“Resilience promotes both the production of socially
useful ecosystem services and provides a stable environment for human use of these services.
Loss of resilience is, form a human perspective, undesirable” (Adger, 2006)

Social Resilience

Ecosystems do not exist in isolation from the human world. The stability and resilience and the
cultural significance of most ecosystem of the world is intimately linked to their human use.
Many processes of economic development are not sustainable or resilient, including the reliance
on fossil fuels and the fetishism of consumption (Adger, 2006)
Economic growth that involves an unsustainable use of resources or use of the environment that
causes stress on ecosystem leads to vulnerabilities and makes society more sensitive to shocks. A
discontinuous change in ecosystem functions brings about loss of productivity and of ecosystem
services

A social-ecological resilience compatible with sustainability must consider societal demands for
ecosystem services, equity, vulnerability in the distribution and governance of resources
Resilience in social-ecological system requires a collective human action to positively adapt in
the face of external social, political and environmental stresses and disturbances. The resilience
of communities goes beyond the economic relations between members to include the social
capital through inclusion and trust. The more a Community is resource-dependent, the more it is
tied to the ecosystem functions

Dependency of resources, both sub-soil and living, does not promote resilience thus there is a
need to build resilience through diversity of livelihoods.

“Resilience can be undermined by high variability and exploitative relationships in the

market system or natural or induced disturbance in the environmental system. Resilience
therefore depends on the diversity of the ecosystem as well as the institutional rules that
govern social-ecological systems” (Adger, 2006). Adaptive management can be used to
improve resilience.

Adaptive management requires flexibility between social resilience, changing properties rights
and institutional evolution.

Ex: Coastal district in Vietnam.

Fishing & farming have evolved to cope with landfall typhoons and coastal storms for millennia.
Radical economy changes in the 1990s towards private properties and individual responsibilities
and away from central planning have diminished the resilience of many systems and resources
reliant on aquaculture, from upland forests to coastal communities. Ecological economics (EE)
offers a distinctive research approach to sustainability, including paying more attention for
ecosystem resilience.

EE is more like an evolutionary economics, as it looks at the co-evolution of the economy and
the environment. Even though there is a debate between weak sustainability and strong
sustainability, most ecological economists often tend to move towards strong sustainability.

Resource abundance can increase the rate of investment in resource-rich economies as opposed
to research poor-economies.

Such an investment can expand the capacity of the economy to import the capital goods needed
to build the infrastructure of a high income country

Natural resource abundance can accelerate economic growth strengthen sustainable

development under the right policy and vision -that also curbs environmental damages.

Renewable natural resources, under a rational informed management, can provide the rent stream
to support a sustainable development.

Sustainable development can also occur with the rent from depleting un-renewable or finite
resources In order to achieve a sustainable development from natural resources, a sufficient
fraction of the natural resources rent should be invested during the exploitation of the (finite)
resource in order to maintain or enhance the total capital stock.

By doing this, the income stream generated by the exploitation of the resource is perpetually
passed on to future generations.

Conservation of the resource may be undesirable if a new technology renders the resource
obsolete. Unfortunately, there has been a stark contrast since the 1960s between the rapid
economic transition of the 4 resource-poor Asian Tigers/Dragons (Hong Kong, Singapore, South
Korea and Taiwan) and the collapse of the economic growth through the 70s and 80s many
resource-rich countries. This observation has led researchers to theorize about the curse of
natural resources.

Empirical support for the curse of natural resources seems to be quite strong (Sachs & Warner,
2001). First, many resource-rich countries have depended on their resources for too long. If
natural resources indeed do help developing a country, then why there is NOT a positive
correlation today between natural wealth and other kinds of economic wealth?

Second, it is observed that extremely resource-abundant countries such as the Oil States in the
Gulf, or Nigeria, or Mexico and Venezuela, have not experienced sustained rapid economic
growth. According to Sachs & Warner’s (2001) findings in repeated regressions using growth
data from the post-war period, high resource intensity tends to correlate with slow growth.

The figure shows (see figure in next slide) that none of the countries with extremely abundant
natural resources in 1970 grew rapidly for the following 20 years (controlling for previous
growth rate in the 60s and geography and climate variables).

Malaysia, Mauritius and Iceland were the exceptions to this general tendency, (however, not
strong exceptions.). Moreover, most of the countries that did grow rapidly during this period
started as resource poor, not resource rich.

Figure 21: Growth & natural resource abundance 1970-1989

(NB: Iceland (fisheries), Fiji, Cote D’Ivoire, & Mauritania have significant natural resources
other than minerals)

Causes of the Curse

There is no universal accepted theory of the curse of natural resources.

The “Dutch Disease” (increased exploitation of natural resources leads to decline in the
manufacturing sector). Most current explanations for the curse have a crowding-out logic.

Natural Resources crowd-out activity x. But, Activity x drives growth. Therefore Natural
Resources harm growth. In other words, a better assessment of the curse of natural resources
awaits a better answer to the question about what ultimately drives growth.

Sachs and Warner (2001, p. 833) offer this explanation:

“Positive wealth shocks from the natural resource sector (along with consumer preferences that
translate this into higher demand for non-traded goods) create excess demand for non-traded
products and drives up non-traded prices, including particularly non-traded input costs and
wages. This in turn squeezes profits in traded activities such as manufacturing that use those non-
traded products as inputs yet sell their products on international markets at relatively fixed
international prices. The decline in manufacturing then has ramifications that grind the growth
process to a halt.”

More simply deciphered:

Positive wealth shocks from the natural resource sector creates excess demand for non-traded
products Excess demand for non-traded products drives up non-traded prices, including
particularly non-traded input costs and wages.

The rise in price of non-traded products, in turn, squeezes profits in traded activities such as
manufacturing that use those non-traded products as inputs yet sell their products on
international markets at relatively fixed international prices. The decline in manufacturing then
has ramifications that grind the growth process to a halt.

More simply
According to their regression analysis, Sachs and Warner (2001) found that natural resource
intensive economies did indeed tend to have higher price levels.

“This provides some evidence that one of the consequences of resource abundance in the 1970s
was that other businesses in resource-abundant countries had to try to compete with higher than
normal price levels. To the extent that they used domestic inputs and sold products on
international markets their competitive-ness suffered” (p. 834)

This lower competitiveness impedes export growth of manufactured goods. (Export growth of
manufactures to GDP).

Causes of the Curse

Log of Natural Resource Exports as a share of GDP in 1970

Figure 22:
Thus, as Sachs & Warner (2001) observe “There is a strong inverse relationship. Resource
abundant countries tended to have small contributions from export growth in manufactures. The
tendency shown above for natural resource intensive economies to have high price levels may be
part of the reason for this, but there are probably other causes too, such as lack of active
promotion of exports. Whatever the cause, it is clear that we have not seen strong export-led
growth in resource abundant economies” (p. 835).

Therefore, one possible explanation of the resource curse is that resource abundance tend to
render the manufactured-led export sectors uncompetitive, and, as a consequence resource-
abundant countries have not been successfully in pursuing manufacture-export-led growth.

Natural resource abundance could crowd-out entrepreneurial activity or innovations.

Since natural resource rents are concentrated and more or less easily appropriable, government
officials in such countries are tempted into rent-seeking and possible corruption rather than pro-
growth activities.

(Rent = payment for goods and services beyond the amount needed to bring the required factors
of production into a production process and sustain supply.

Economic rent is related to producer surplus. Economic rents are “excess returns” above “normal
levels”). Natural resource countries would thus experience lower innovation, lower
entrepreneurial activity, poorer governance and lower growth.

The state tends to be predatory instead of developmental. Another form of crowding. Wage
premium in natural resources sector. Sachs and Warner (1997) found little evidence that resource
abundance was associated with lower savings and investment. Although there is evidence that
resource abundance is associated with more authoritarianism, there is unfortunately only weak
evidence for an association between non-authoritarian political systems and growth.

The same goes for income inequality. It is also sometimes said that natural resource countries
waste the natural resources on unproductive projects. Yet this by itself does not explain slow
growth, it just explains a permanently lower level of GDP than the country would have enjoyed
with optimal use of its natural resources.

The curse of natural resources, from a human developmental perspective, looks at issues of
poverty, conflicts and environmental degradation in places endowed with so much natural
resources. When the proceeds of the resources are not equitably distributed, it creates conflicts.
Corporations exploiting the natural resources create environmental damages that affect the lives
of the natives.

The curse of natural resources, from a human developmental perspective, looks at issues of
poverty, conflicts and environmental degradation in places endowed with so much natural
resources. When the proceeds of the resources are not equitably distributed, it creates conflicts
Corporations exploiting the natural resources create environmental damages that affect the lives
of the natives.
Human Developmental Perspective: Nigeria & the Curse of Oil

Niger Delta region of Nigeria is one of the most “blessed” deltas in the world, in both human and
material resources (Omofonmwan & Odia, 2009, p. 25).

Crude oil was discovered in commercial quantity in the area in 1956 (Omofonmwan & Odia,
2009, p. 25). Today, Nigeria depends on oil revenue for 95% of national income and foreign
exchange earnings. Nigeria is the world’s 11th largest oil producer pumping well over 2 million
barrels into the international market daily. Since then, exploration and exploitation of crude oil
has resulted in environmental degradation, soil impoverishment, pollution, loss of aquatic life
and biodiversity

Consequently, the people of Niger Delta are exposed to a number of health hazards and socio
economic constrains. Such constraints, in turn, have created conflicts between natives and
community leaders, the natives and government agencies, and natives and multinational
companies.

It is estimated that since 1975 till date oil resources from the Niger Delta accounts for 90% of the
export earnings of Nigeria. Yet, the Niger Delta remains the “sick man” of Nigeria, that is, the
least developed region in physical and socio-economic terms in Nigeria. Since 2006, the
intensity of the armed conflict in the Niger Delta has paralyzed oil production activities leading
to huge decline in oil revenue.

Kenule (Ken) Saro-Wiwa & the Ogoni people in the Niger Delta Since the 1950s, the
multinational petroleum industry has exploited crude oil from the Ogoniland of the River state in
the Niger Delta. Ogoniland has since suffered from extreme and un-remediated environmental
pollution and damage from decades of indiscriminate petroleum waste. Because of the the
degradation of their environment and the ensuing poverty, the Ogoni community of Rivers state
created the Movement for the Survival of Ogoni People (MOSOP), led by then late human &
environmental right activist (writer, TV producer) Ken Saro-Wiwa.

Ken Saro-Wiwa and MOSOP led a nonviolent campaign against the multinational petroleum
industry, particularly Shell, to call attention to the devastation, degradation and disappearance of
their flora and fauna, the pollution of the atmosphere, the contamination of their water, as a result
of the activities of oil companies in the area.

Ken Saro-Wiwa was critical of the Nigerian government for being reluctant to enforce
environmental regulations on the multinational petroleum industry operating in Ogoniland. Ken
Saro-Wiwa was arrested by the military government of Sani Abacha in Nigeria, hastily tried in
military tribunal, and hanged in 1995.

Human Developmental Perspective: Democratic Republic of Congo (Formerly, Zaire) &

the Curse of Natural Resources, Cont.

Paradox: Richest in mineral, yet the poorest.

Joseph Conrad said in his 1899 classic book, Heart of Darkness, that the Congo should be one of
the richest countries in the world. The looting of the Congo is still going on a century after. Over
5.5 million Congolese have died since 1998 in two civil wars and their aftermath, mainly from
starvation and epidemics. The Congo is a living hell on earth for Women. In 2009 alone, over
8,000 women were violently raped

Paradox: Richest in mineral, yet the poorest.

There is an ongoing rampant corruption and killing in the continuing smuggling of the Congolese
minerals out of the country, resulting in direct benefits to the state of a paltry $32 million in
2006. Of the 65 million inhabitants of the Congo, 80% live on 50 cents a day.
Figure 23: Poverty and Environmental Degradation.

INTERGENERATIONAL EQUITY AND THE SOCIAL DIMENSION

Ehrlich-Holdren ‘IPAT’ Identity Formula (1972).

The level of the population (number of people), their proclivities (propensities) to consume and
their exploitative abilities can all be factors in the degradation of the environment. Ehrlich-
Holden ‘IPAT’ identity is:

Impact = Population X Affluence X Technology ==> P x A x T

The IPAT equation describes the multiplicative contribution of population (P), affluence (A) and
technology (T) to environmental impact (I).
The equation was initially formulated to stress the impact of a growing population of the world
to the environment, when the global population was roughly half the size of the current
population. The equation or formula is still being used in policies about population.

Ehrlich-Holdren ‘IPAT’ Identity Formula (1972).

Impact = Population X Affluence X Technology ==> P x A x T

Impact = persisting rather than transient (transitory) environmental effect

Environmental impact (I) can be expressed in terms of resource depletion or waste accumulation

Population (P) = the size of the human population; Affluence (A) = the level of consumption by
that population; Technology (T) = the processes used to obtain & transform resources into goods
and wastes.

Implications of IPAT Environmental problems involved more than pollution

Environmental problems are driven by multiple factors that act together to produce a
compounding effect. Simple multiplicative relationship among the main factors generally does
not hold. The doubling of the population, for instance does not necessarily lead to a doubling of
the impact on the environment.

Implications of IPAT

The predictive power of the IPAT equation has been strengthened to include a variety of social,
political and technical factors. For instance, who are responsible for various factors, where to
best direct resources to most efficiently reduce environmental impact. Now, when the formula
gets more complex, evidently it is more difficult to apply it.

The carbon dioxide emission of a country can be an example of an environmental impact.

Carbon dioxide emissions degrade the environmental service that the atmosphere provides in
regulating heat radiation from the surface of the earth. The P x A x T decomposition to measure
the carbon dioxide emissions of a particular country will be Population X (times) per capital
GDP X the “carbon intensity of the economy”. At a given level of affluence and ‘carbon
intensity’ of the economy, carbon emissions rise in proportion to the population.

The I = PAT equation has been interpreted as causal relationship rather than an identity.

The I = PAT equation stresses the joint responsibilities of environmental damage brought about
by population size, a high consumption high style, environmentally-destructive technology, each
amplifying the other. Population size, a high consumption high style, and an environmentally-
destructive technology are the main human causes of degradation. These categorizations should
not be taken for granted. Social organizations and behavioral factors should be separately
scrutinized as causes of degradation rather than being subsumed by A and B.

P, A and T are not independent of each other. Each has a major distributional dimension and is a
major of time. Because of the interdependence of P, A and T, the Ehrlich-Holdren formula
cannot resolve the dispute of how these factors relatively contribute to environmental
degradation.

Samuel H. Preston has proposed another formula that looks at the variance of the growth rates of
I, P, A and T over different regions or countries.

The additive relationship among growth rates implies a relationship among variance and
covariance

I= p+ A+ T + 2 Cov PA + 2 Cov PT + 2 Cov AT

The covariances are the interactive effects

(In statistics, variance is the average squared distance of each score to the mean of a distribution
of scores)

Population Var =
 Sample Var

Preston’s analysis of carbon emission of the major regions of the world from 1980 to 1990 shows
that population growth has a minor contribution to the total variance

The major contributors to the total variance were the growth of A and T (and a substantive
offsetting interactive effect of A and T). But, given the fact the 50% population increase this
century, the future role of population growth in carbon emission is certainly important to look
into and take into consideration.

Carrying Capacity: A Conceptual Analysis.

From an ecological perspective, the concept of carrying capacity refers to the maximal
population size of a given species that an area can sustain without reducing its ability to sustain
the same species in the future.

More specifically, carrying capacity is defined as"... a measure of the amount of renewable
resources in the environment in units of the number of organisms these resources can support"
6
(Roughgarden 1979, p. 305). In the biological literature, carrying capacity is specified as K.

Carrying capacity is a function of characteristics of both the area and the organism. A larger or
richer area will, ceteris paribus [with other conditions remaining the same], have a higher
carrying capacity. Similarly, a given area will be able to support a larger population of a species
with relatively low energetic requirements (e.g., lizards) than one at the same trophic [feeding &
nutrition] level with high energetic requirements (e.g., birds of the same individual body mass as

6
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the lizards). The carrying capacity of an area with constant size and richness would be expected
to change only as fast as organisms evolve different resource requirements. Though the concept
is clear, carrying capacity is usually difficult to estimate” (Daily & Ehrlich, 1992).

For humans, carrying capacity varies noticeably with culture and the level of economic
development.

Biophysical vs. Social Carrying Capacity

Biophysical carrying capacity is the maximal population size that could be sustained
biophysically under given technological capabilities. Social carrying capacity is the maximum
that could be sustained under various social systems, associated with patterns of resource
consumption.

Current Carrying Capacity of the Earth

Several researchers have indicated that because of the depletion of the essential resources and the
degradation of the land (Jacobs, 1991; Myers, 1984; Postel, 1989) and the atmosphere (Jones &
Wigley, 1989; Schneider, 1990), human beings have not only exceeded its social carrying
capacity, but it is actually depleting the natural capital stocks, thus reducing future potential
biophysical carrying capacities (Daily & Ehrlich, 1992).
POPULATION AND ENVIRONMETAL CARRYING CAPACITY

Figure 24:

Of all the parts of the world, African countries seems to have the lowest carrying capacity
leading to unsustainable development caused by dynamic changes and depletion of resources.
Apart from unbalanced population growth, the use of destructive science and technology causes
mega destruction of vegetation cover and biodiversity. Population increase in Africa
impliesclearing large land vegations for settlement, cutting more trees for wood, woodcarcoal.
Urbanization and settlements near water sources is rapidly resulting into desertfication and
disappearance of clean and safe drinking water in most poor countries.
Population characteristics of poor countries suggest decline of environmental carying capacity if
care is not taken.For example while youth population is decreasing and old population is
increaseing in rich countries the situation is different in poor countrioes where the youth
population is rapoidly expanding while old pupulationm is decreasing. Poor countries
population characteristics suggest clearance of more forests for land settlemets as many young
couples form families, more wood consumption as active households are rapidly increasing as
well as more naked land for cultivaation for rural youth population.

Scientific evidences suggest that, while population size increase rapidly, environmental carrying
capacity remain constant thus we need effctive regimes to sustain our environmental carrying
capacity for future generations.

FIGURE 25: Desertification and disappearance of water sources due to decline in the
environmental carrying capacity

Source: IPCC global warming trends report at Stockholm in September 2013

APPROACHES TO ENVIRONMENTAL PROTECTION

 According to Boyle A. 2013 a combination of the following techniques can help to reduce
destruction of the environment and thus preserve the future welfare of the globe:

1. Legal regimes: Enact binding laws

2. Education and awareness regime

3. Population control regime

4. User friendly technology regime

5. Hybrid regime

6. Pre Action regime

7. Collective effort regime

Legal regime

It is done by enacting harsh laws and gives big punishments to people who destroy environment
so as to discourage others from destroying environment. This technique is often used by poor
countries to deal with poachers, and those who slash down forests for timber, wood trafficking.
In most cases their products are confiscated and they are forced by law to pay certain fines, or
even go to prison for certain period of time. It has been reported by environmental researchers
that the technique is weak in dealing with the problem of environmental destruction because
force can only serve for a short time after some time people get used to it. Legal destruction of
environment cannot be punishable thus people may decide to use such loophole by clearing
bushes for farming and other practices considered as legal destruction of environment.

Figure 26: Legal destruction of environment

Source: IPCC global warming trends report at Stockholm in September 2013

Education and awareness regime

It is done by giving education to the people arrou8nd a particular natural resource so that they
participate willingly in preserving the particular resource. Such technique has proven success
among pastoral commu8nities living near animal reserve areas where the concept of reserve
ownership were introduced.

Population control regime

It is done by controlling population so that population size of a particular area is in correlation

with the environmental carrying capacity of a particular place. Such technique face many
challenges including failure to control population migration due to globalization hence exceeding
the carrying capacity of natural environment

User friendly technology regime

Adoption of environmental user friendly technology is suggested to be one of effective

approaches where countries don’t bother about population increase but the use of technology
which does not pollute environment also does not over extract resources from nature beyond its
carrying capacity.
Hybrid regime

A combination of approaches is said to be more effective than using just one regime. For
example if a country insist on family planning to balance its population in relation to the carrying
capacity of environment and the same time employ environmental friendly user technology it
will give much better results than using one approach.

Pre Action regime

Pre Action regime involves trying to take actions before the destruction of environment actually
takes place. It is a pre emptive technique. Environmental academicians recommend such
techniques because post action techniques cannot restore resources and species lost after the
environment has been destroyed. For example the punishment you give to someone who have
illegally killed an elephant cannot restore the elephant lost.

Collective action regime

International community organize global environmental summits and develop consensual

approaches to deal with the problem of environmental destruction and preservation of remain ing
natural resources. There have been different concessions on the collective action to be taken
against destructions of certain endangered animal and plant species such as elephants and so on.
Numerous global environmental conventions, regurgitations have been made through various
global summits such as the one from 3-14 June 1992; Rio de Janeiro hosted the United Nations
Conference on Environment and Development (UNCED). The focus of this conference was the
state of the global environment and the relationship between economics, science and the
environment in a political context. The conference concluded with the Earth Summit, at which
leaders of 105 nations gathered to demonstrate their commitment to sustainable development.
This paper will summarize the goals of the Conference, what was accomplished, and what it all
means to Canadians. The so called Agenda 21 was adopted to deal with global environmental
issues to prevent the world from turning into intolerable global warming. In 2013 there was
another Rio environmental summit to commemorate that of 1992 where the world was reported
to have failed to stop the world from unusual global warming. In September 2013 there was
another big environmental summit in Stockholm on the same global warming and climatic
changes and it was reported by the IPPC that human activities were responsible for global
warming by more than fifty percentages and that by 2100 the level global warming could not
support any life on earth.
CHAPTER 6: GENNDER AND DEVELOPMENT

Man and woman are a peerless pair; being supplementary to one another; each helps the other, so
that without the one, the existence of the other cannot be conceived and, therefore, it follows that
anything that impairs the status of either of them will involve the equal ruin of them both. –
Mahatma Gandhi Men in many contexts, through their roles in the home, the community and at
the national level, have the potential to bring about change in attitudes, roles, relationships and
access to resources and decision-making which are critical for equality between women and men.
In their relationships as fathers, brothers, husbands and friends, the attitudes and values of men
and boys impact directly on the women and girls around them. Men should therefore be actively
involved in developing and implementing legislation and policies to foster gender equality and in
providing role models to promote gender equality in the family, the workplace and in society at
large.

Man and woman are a peerless pair; being supplementary to one another; each helps the other, so
that without the one, the existence of the other cannot be conceived and, therefore, it follows that
anything that impairs the status of either of them will involve the equal ruin of them both. –
Mahatma Gandhi Men in many contexts, through their roles in the home, the community and at
the national level, have the potential to bring about change in attitudes, roles, relationships and
access to resources and decisionmaking which are critical for equality between women and men.
In their relationships as fathers, brothers, husbands and friends, the attitudes and values of men
and boys impact directly on the women and girls around them. Men should therefore be actively
involved in developing and implementing legislation and policies to foster gender equality and in
providing role models to promote gender equality in the family, the workplace and in society at
large.

(a) What is Gender?

Gender refers to the socially determined ideas and practice as to what it means to be female
or male. In different societies, there are different sets of rules, norms, customs and practices
by which differences between males and females are translated into socially constructed
differences between women and men, boys and girls. These culturally determined gender
identities define rights and responsibilities and what is ‘appropriate’ behaviour for women
and for men. This often results in the two genders being valued differently, often reinforcing
the idea that women are inferior and subordinate to men. Gender equality means equal
opportunities, rights and responsibilities for women and men, girls and boys. Equality does
not mean that women and men are the same but that women’s and men’s opportunities, rights
and responsibilities do not depend on whether they are born female or male. It implies that
the interests, needs and priorities of both women and men are taken into consideration.
Gender mainstreaming has been defined by the United Nations as “the process of assessing
the implications for women and men of any planned action, including legislation, policies or
programmes, in any area and at all levels. It is a strategy for making the concerns and
experiences of women as well as of men an integral dimension of the design,
implementation, monitoring and evaluation of policies and programmes in all political,
economic and societal spheres so that women and men benefit equally and inequality is not
perpetuated. The ultimate goal (of mainstreaming) is to achieve gender equality”. - Sources:
UN Department of Economic and Social Affairs, Statistics Division, 2006, The World’s
Women 2005: Progress in Statistics, UN: UNDP, 2000, “Women’s Political Participation and
Good Governance: 21st Century Challenges.”

Example of Gender roles may include

1. Farming and other hard works for men

2. Taking care of the house to women

3. Nursing children by women

4. Cooking at home for women and so on.

Gender is not the same a sex though many people confuse between the two. If we are to
differentiate them, then one would say, Gender is socially constructed while sex is naturally
given

Sex- Refers to Biological difference between men and women.

Example of sex roles include

1. Production of sperms to make women pregnant

 2. To conceive and bear children to women

(b) Gender Analysis

Refers to systematic gathering and examination of information on gender differences and

social relations in order to identify; understand and redress inequalities based on gender.

Gender Analysis is a value descriptive and diagnostic tool for development planners.

(i) Gender Roles/Harvard framework

(ii) Social relation analysis

Gender Roles Framework focuses on describing women’s and men’s roles and their relative
access to and control over resources.

(a) Social relation Approach- Seeks to expose the gendered power relations that perpetuate
inequalities.

(b) This analysis goes beyond the house hold to include the community, market and state
institutions and so involves collecting data at all these levels.

(c) Gender discrimination- Refers to the systematic, unfavorable treatment of individuals on the
basis of their gender which denies them nights, opportunities or resources. e.g Across the
world women are treated unequally and valued because of their gender.

Within the household women and girls face discrimination in the sharing out of house hold
resources including food, ownership of property etc.
(d) Gender division of labour – The socially determined ideas and practiced which define that
roles and activities are deemed appropriate for women and men.

N.B; While the most societies view gender division of labour as natural and immutable, in
fact these ideas and practices are socially constructed. These results in context specific
palter of who does what by gender and how this is valued.

However roles typically designed as female are almost in variably less valued than those
designated.

(e) Gender Equality and Gender Equity

The term gender equality and gender equity are often used inter changeably.

Gender equality denotes the equivalence in life outcomes for women and men recognizing
their different needs and interests and requiring a redistribution of power and resources i.e is
the principle of fairness and justice women equivalently.

Gender equality – Is the situation where by there is no kind of practice which undermine a
certain sex. The goals of gender equality sometimes called substantive equality mores
beyond equality of opportunities by requiring transformative change. It recognizes that
women and men are different needs preferences and interests and the equality of outcomes
may necessitate different treatment of men and women.

Gender equality approach implies that development policies should be scrutinized to impact
on gender relation”
(f) Gender relations- Refers to hierarchical or lateral relation of power between men and women
in a certain society.

In most African societies the relationship between men and women is hierarchical thus tend
to disadvantages women.

These gender hierarchies are often accepted as natural but are socially determined relations,
culturally based and are subject to change over time

(g) Gender training – Refers to a facilitated process of developing awareness and capacity on
gender issues to bring about personal or organizational change for gender equality

• Its objective in include

• Raising awareness of the relevance of gender to an organization work.

• Skills transfer in gender analysis gender awareness planning, programme design and
implementation.

(h) Gender violence –Refers to any actor threat by men or male do minated institutions that
inflict physical, sexual or psychological harm on a woman or girl because of their gender e.g
sexual corruption rape i.e marital and extra marital raper.

(i) Gender main streaming-Refers to an organizational strategy to bring a gender perspectives to

all aspects of an institutions policy and activities through building gender capacity and
accountability.

Gender relations- are social relations produced on a daily –basis by actions ideas and
discourse of individuals and groups.
 Gender relations not nature i.e Gender relations are social constructs involving historical
process of conflicts and change.

Thus gender relations can change as a results can resistance and struggle.

Since gender relation is social thus is not universal i.e differs in nationalist rale and imperial
class ethnicities south relations. Gender relations cut across different sectors of society
economy, cultural, psychological e.t.c. Gender relations are socially and historically
constructed they can also be deconstructed we can create the relations that faster
development.

THE ORDIN OF GENDER AND ITS RELATION WITH THE SOCIETY

• Culture-Gender is the product of culture thus can be changed because is not a product of
human nature

• Social foundations-Gender is a social construct rooted in the social foundations thus can be
changed if the society wants to.

Development and Demography – Why Gender Matters ?

The relative power held by men and women and the dynamics of the relations between them
directly affects the demographic process and gender issues and norms affect fertility in many
ways: In societies in which women have lower literacy and less access than men to mass media,
women may know relatively little about reproductive health, including how to avoid unwanted
pregnancies and, where men have more power than women, they may find it hard to negotiate
contraceptive use. The relationship is more complex in low-fertility countries and seems to vary
with employment opportunities and with social ideas and practices about men’s participation in
homemaking and childbearing. In general, women who work outside the home have fewer
children than mothers who do not work outside. Mothers who do not work may be in a more
traditional relationship based on a male breadwinner and female homemaker. But this
relationship has changed in some countries, especially where employment of mothers who have
young children is already commonplace. Fertility is higher where women have more support
from their spouses for housework and childrearing, access to government-provided family
support resources, or both. Son preference is another key issue - in several South Asian and
Middle Eastern countries, couples may continue to have children until they have a son, thereby
pushing up overall fertility. In India and China, son preference has led to sex selective abortions
and the abandonment of female babies on such a scale that there is now an imbalance between
girls and boys. Gender inequality affects the health of women and girls, especially in countries
with relatively low life expectancy and widespread poverty. Where men are valued more than
women, girls and women tend to receive less nutrition and health care than men and boys when
resources are scarce. An estimated one-half million mothers die from pregnancy-related causes
each year; at least 8 million suffer lifelong health problems linked to pregnancy and childbirth.
Parents in many developing countries are less likely to send a daughter than a son to school. In
some cultures, educating girls is considered a waste of family resources because girls join their
husband’s family when they marry, and will not contribute to their own parents’ support. Women
are more likely than men to be illiterate, although the picture is much brighter among children
and young adults. Keeping girls in school longer has become a high priority in development
because girls with a secondary education wait longer to marry, have fewer and healthier children,
and have higher incomes.

APPROACHES TO GENDER DEVELOPMENT

WID, WAD and GAD Over the past three decades a number of specific approaches have been
taken in relation to men’s and women’s involvement in and with development. These models or
approaches have set out to explain how development affects women and men and why women
do not experience development in the same way men do. These models are: • Women in
Development (WID) approach • Women and Development (WAD) approach • Gender and
Development (GAD) approach The Women in Development approach dates back to the 1970s
when the belief was that women had not only been left out of development but had also become
even more disadvantaged as a result. The Women In Development approach believed the central
issue to be the absence and exclusion of women from development programmes and approaches.
Women played a central role in the life of their community and particularly within their family as
mothers, educators, care providers and as workers. This approach supported the solution of
integrating women into development programmes in order to improve women’s access to
resources and their participation in development. Despite increasing the visibility of women in
development issues, the WID approach had a number of limitations. This approach made
demands for women’s inclusion in development, but it did not call for changes in the overall
structure or economic system in which women were to be included. The WID approach
concentrated very narrowly on the inequalities between men and women and ignored the social,
cultural, legal and economic factors that give rise to those inequalities in society. WID focused
on women almost exclusively and assumed that women were outside the mainstream of
development. The Women and Development approach arose in opposition to WID in the latter
part of the 1970s and argued that women had always been part of the development process,
where the work women undertook both inside and outside the household was vital to the survival
and continuance of society. WAD saw both women and men as being disadvantaged by the
global economic structures, including class issues and the way wealth was distributed. WAD
therefore argued that the integration of women into development was to their disadvantage and
only worsened their chances of equality. This approach was criticised for assuming that the
position of women would improve if and when international structures became more equitable,
thereby underplaying the role of patriarchy and not adequately addressing the question of social
relations between men and women and their impact on development. The Gender and
Development approach came about in the 1980s and represents a coming together of many
feminist ideas. It very obviously looks at the impact of development on both men and women –
supporting the equal participation of both women and men in development and emphasising
equality of benefit and control in everyday events. GAD is not concerned with women
exclusively, but with the way in which gender relations allot specific roles, responsibilities and
expectations between men and women, often to the detriment of women. GAD focuses on the
social or gender relations (division of labour etc) between men and women in society and seeks
to address issues of access and control over resources and power. It emphasises both the
reproductive and productive role of women and argues that it is the state’s responsibility to
support the social reproduction role (mostly played by women) for caring and nurturing of
children. GAD treats development as a complex process that is influenced by political, social and
economic factors rather than as a state or stage of development. This approach is about
empowering those who are disadvantaged in a community and enhancing and changing their
lives for the better. In addition, recent work has focused on the Gender, Law and Development
(GLAD) approach, which takes a rights-based approach to development and brings law and
development together to support a more equal access to resources and equal rights in law. In
many countries/societies, the economic, social and legal system is run by law that has historically
supported men. This is to be expected given the traditional absence of women from active public
participation (voting, political leadership etc.) and political structure formation where their
original role had been perceived to be one of homemaker as opposed to decision maker and
policy former. The GLAD approach sets out to ensure legal changes to laws that discriminate
against women‘s rights. Inheritance and property rights, for example, have changed in some
countries (though not all) where women are now allowed to inherit land or are as entitled to
property as their husbands, brothers or sons. Customary and religious laws, however, still
dominate in many countries throughout the world and these laws usually discriminate against
women’s rights.

Some benefits from focusing on gender in development

According to UNFPA: State of the World Population 2005 focusing on gender in development
have the following benefits:

• Positive changes in gender relations and more respectful social attitudes towards women

• More decision-making and political participation by women in the community

• Women’s increased knowledge of their legal rights • Greater likelihood that girls would stay in
school

• Reduced violence against women

• Improved communication and mutual support between men and women on family planning,
HIV and other sexually transmitted infections

• Increased knowledge by men of women’s health care issues

• Shifts in attention about shared roles and responsibilities between men and women in
childrearing, labour, and reproductive health issues
Including men in Development

Many commentators argue that men have always been included in development debates and
processes and that it is their female counterparts who have lost and continue to lose out. It is
clear that women have not always benefited from development in the same way as men. Despite
many changes in development, in technology, and in opportunity over the past decade, it would
seem that women are still falling behind in many important areas – education, health and work.
Local and national development projects sometimes lack a gender perspective – how the entire
community will be affected. Other commentators argue that very many men have self evidently
been equally excluded from development and, while it is essential to maintain a focus on gender
issues, this should not blind us to recognising other key issues and processes that exclude people.
In recent times, focus has shifted towards men and getting them more involved in improving the
situation of women. After all, men often hold the balance of power, the key to decision making
and policy implementation or have elevated status in their families and communities and over
women. It is also evident that women alone cannot achieve gender equality without involvement
and support 164 | 80:20 development in an unequal world The case of Sarah Longwe and the
Hotel A Zambian woman, Sarah Longwe, was denied entry to an international hotel in Lusaka on
the ground that unaccompanied women were not allowed into the hotel because the hotel
residents and male patrons did not want to be disturbed. Apparently this ban on all
unaccompanied women entering the hotel bar had been implemented because ‘women not
accompanied by a male…used to fight amongst themselves for men’. The assumption here was
that Longwe had violated male space and, more importantly, that all women on their own were
potentially prostitutes. No evidence was ever produced to prove this. Sued for sex discrimination,
the defendant hotel contended that the barring of Longwe had nothing to do with the fact that she
was a woman, rather it was because she was unaccompanied by a man! The defendant then went
on to contend that, as a hotel, it was a private enterprise not subject to constitutional provisions,
including those guaranteeing freedom of movement, freedom of association and proscribing
discrimination including that based on sex. The court rejected the argument that as a private
company the hotel was above national law, noting that the constitution was the supreme law of
the country governing both public and private enterprises. The court ruled that Longwe’s
freedom of movement guaranteed by the Zambian Constitution had been violated. The judge
further ruled that Sarah Longwe has been discriminated against because of her sex. - Source: F.
Banda, Women, Law and Human Rights: An African Perspective, 2005: 284 from men. This is
why men as fathers, husbands, teachers, politicians, chiefs, ministers, heads of state, religious
leaders, are being encouraged to become involved in addressing the social infrastructure and
institutions that hinder the equal development and opportunity for women with the view to
bringing about change and improving the situation for everyone. The issue of men in
development is critical. Relationships between men and women and the way in which
masculinity is defined are at the heart of many development challenges, with the HIV/AIDS
epidemic providing a particularly stark example. Ending women’s subordination is more than
simply reallocating economic resources; it involves redistributing power. - Source: UNDP,
Taking Gender Equality Seriously, 2006 In 2005, the 10-year review of the Beijing Platform for
Action was carried out in the United Nations Commission on the Status of Women. It was
evident that while much has been achieved, a lot of work remains to be done before success can
be declared. While many policy documents have been drawn up and action plans agreed, there is
still a gap between policy and practice where commitments need to be followed effectively by
sustained action.

Measuring equality and inequality

Human Development Index (Gender Related)

Measuring how women do in relation to men has changed considerably over the past number of
years with clearer and more focused statistics on the well being of people living in different
countries and regions. Commentators, activists and many women and gender groups argue that
while the reporting of statistics at national and international levels - particularly in relation to
women - has improved over the years, much remains to be done as many countries are still
unable to provide basic information relating to births, deaths, income, education etc. Older
statistical measures such as Gross National Product, Gross Domestic Product and per
capita income are still used but have largely been replaced by broader, more human-
centred measurements - the Human Development Index (HDI), Gender-related Human
Development Index (GDI), and the Gender Empowerment Measure (GEM). The HDI measures
health (life expectancy), knowledge (literacy) and wealth (GDP). This allows for the better
comparison of poverty, deprivation and development internationally. Gender-related
Development Index – measures the differences between women and men in relation to the
different dimensions of human poverty. This allows for the adjustment of the HDI for gender
inequality. Gender Empowerment Measure – this measures gender inequality in the key areas of
economic and political participation and decision-making. It therefore differs from the GDI,
which serves as an indicator of gender inequality in the basic indicators.

Gender, Institutions and Development Data Base

One additional recent mechanism for measuring the obstacles to women’s economic
development is the Gender, Institutions and Development Data Base. It claims to help
identify policies that address the roots rather than the symptoms of gender discrimination,
includes some 162 economies/countries and has some 50 indicators on gender discrimination.
Not only does this approach focus on access to resources (health, education etc), economic
development (GDP per capita) and the economic status of women, it also looks at the social
institutions of a country (including laws, customs and traditions) and how these in particular
influence discriminatory practices biased against women.

Looking at social institutions specifically, this data base focuses on:

• Family Code – including information on marriage customs (age, inheritance, and polygamy)
and decision-making power within a household (parental authority, repudiation)

• Physical Integrity – capturing violence against women through traditional practices such as
female genital mutilation or other attacks (e.g. rape, assault, harassment)

• Civil Liberties – measuring the extent to which women can participate in social life, either
through running for political office or moving freely outside of the house (e.g. without wearing a
veil or being escorted by male relatives)

• Ownership Rights – indicating the quality of women’s most basic economic right – to hold
property, either in the form of bank loans, land, or other material assets.

The Feminisation of Poverty

The UNDP has argued that approximately 70 per cent of the world’s poor are women (UNDP,
1995) while UNIFEM states that ‘women constitute at least 60 per cent of the world’s poor’.
Women regularly have more limited access to food, to education, to health care, to credit, and are
discriminated against in relation to inheritance rights, local laws, customs and traditions etc.
some commentators argue that as a result of this situation, poverty is experienced more severely
by poor women than poor men and that this constitutes the ‘feminization of poverty’’.

What is Feminization of Poverty?

The feminization of poverty has been defined as follows:

• That women have a higher incidence of poverty than men

• That their poverty is more severe than that experienced by men

• That there is a trend to greater poverty among women, strongly associated with increases in the
number of female headed households.

A 2002 Indian study described this feminization of poverty in the following way:

• Women and girls have less access to food, education and health care than men and boys and
hence, they may face poverty more severely than men

• Basic infrastructure and environmental degradation have a more adverse impact on women’s
work burden than men’s, given the former’s responsibility to fetch fuel and water, leading to
reduced health status

• Gender-specific processes, for example, given unequal inheritance rights, earning opportunities
and returns to labour, women’s economic position is highly dependent on men. They slip into
poverty while their husbands remain non-poor

• Lesser means - assets, skills, employment options, education, legal resources, financial
resources - to overcome poverty than men, and are more economically insecure and vulnerable in
times of crisis

• Women disproportionately bear the burden of structural adjustment

• Poor women’s ability to overcome poverty is much lower (shortfalls from what is required for
survival are often more for women than for men).
The report concluded: The proponents of feminisation of poverty theory seem not only to be
arguing that the incidence of poverty is increasingly severe among women than men, but also
that some of the dimensions of women’s poverty are different from that of poor men. So are the
causes of poverty. Their ability to overcome poverty is much lower. - Source: Rashmi Bhat and
Jayalakshmi Feminisation of Poverty and Empowerment of Women - An Indian Perspective &
Experience (2002), However, many dispute the evidence for the feminisation of poverty
argument and insist that considerably more research is needed to support its claims but the fact
remains that few dispute the predominance of women amongst the poorest worldwide.
Traditionally it is believed that women have the responsibility to cook food, fetch
firewood/water, looking after the children’s welfare e.g. bathing them, feeding them, taking care
of them when they are sick and so on. At the same time she is supposed to look after the husband
by cooking for him even if she is nursing a sick child.When doing farming activities in the rainy
season the man and the woman will prepare the land and the woman‘s duty is to plant the seed.
The other duty for the woman is to weed the fields and if she does not she is accused of being
lazy and called ‘okocha ibala’ (burning the field) and the man is not called any names. If the
harvest is good and the sales are made she is not responsible for the money - it is the man’s
responsibility. Though the woman does most of the work, the man remains the head of the house
and he can marry and have girlfriends enticing them with the money that the woman sweated for.

INTERNATIONAL AND REGIONAL INSTRUMENTS DEPLOYED IN THE

TANZANIAN GEENDER MAINSTREAMING

Tanzania’s commitment to gender equality is clearly indicated in its Constitution and in the
signing and/or ratification of major international instruments that promote gender equality and
human rights, including the:

• Human Rights Declaration (1948);

• United Nations Convention on the Elimination of all Forms of Discrimination Against

Women (1979);

• Convention on the Rights of the Child (CRC) (1989), which has a special focus on the girl
child;
• Beijing Platform for Action (1995) on women’s economic and political empowerment,
education and training;

• The government has taken certain efforts in main streaming gender development policies
programmes and strategies through the following.

• Tanzania is signatory to various in termination human rights instruments bind it normally

and legally to adhere to equality policies eg convention by the elimination of all forms
of discrimination against women (CEDAW)

• Regional and sub regional instruments e.g SADC declarations on Gender and
development.

• African Chanter of Human rights of 1989 Women’s rights are protected on harmful
practices.

• The vision ( 2025) forum is to attain human development -It is operational zed through
PRSP 1 and II (Mkukuta) that has addressed Gender.

• Equity principle is enshrined in the constitution (Bill) of rights and man discrimination.

• Government has adopted budgeting initialities

• There are collaborative efforts between CSO, actors and individual’s government sector e.g
campaign promoting women and girls.

• Vienna Human Rights Declaration (1994);

• Cairo Population Declaration (1994);

• Millennium Declaration and Development Goals (MDGs), with MDG-3 on gender

equality and women’s empowerment; and United Nations Security Council (UNSC)

• Resolution 1325 (2000) and Resolution 1820

• (2006) on gender equality, protection and participation of women in conflict resolutions,

peacemaking and state-building
 At regional level, Tanzania has signed and/or ratified the following instruments:

• African Union Charter and its Protocol on Human and Peoples' Rights;

• Charter on the Rights of Women in Africa (2003);

• Southern African Development Community (SADC) Gender Declaration (1997) and its
Addendumon the Prevention of Violence against Women and Children of Southern Africa
(1998

• SADC Protocol on Gender and Development 2008)

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Appendix 1: Questions For Discussion

Chapter 1: The Subject Matter of Development Studies

1. Discuss the concept of development. What are the key indicators and measurements of
development? Are these elements present in African countries?
2. “Development is a broader concept that cannot be reduced to mere economic growth”.
Discuss this statement in relation to the third world confusion between economic growth and
Human development.
3. Highlight the main elements of any 2 development theories you know.( Discuss how these
theories contribute to our understanding of the process of development in Africa and other
third world countries. (Your choice should be any of the political economy and dependence
theories)
Chapter 2: Globalization and Development
4. “Globalization conceptualization is multidimensional, it can be seen as a concept and as a
process” discuss this contention in relation to Tanzanian context

5. Discuss main features of each of the three phases of globalization process

6. Choose any theory of globalization of your choice and”

i. Discuss main ideas of the particular theory

ii. Establish its relevance in Tanzanian context

iii. Account for its strength and weaknesses in relation to Tanzanian economy
 iv. “Globalization is said to be a double edged sword” With vivid examples from
Tanzania, discuss positive and negative effects of globalization on Tanzanian
society, culture, economy and politics for the past twenty years.

Chapter 3: Science and Technology in Growth and Developemnt

7. “We had Siasa ni Kilimo and now Kilimo Kwanza strategy yet hungry and poor, how can we
develop if we still use poor farming implements and continue to export raw materials?”
certain practioner complained. Do you think this complain is genuine? If you were to advice
on Kilimo kwanza project what would you recommend for development?
8. Technological revolution is an engine of any countries’ development. In your own view what
is the linkage between technological revolution and development?.
9. Suppose you are a president of one of the developing countries where researches and
technological innovations are not affordable. What would be your strategies to bring
development in your country? NB: you live in a purely agrarian society.

Chapter 4: Poverty and Development

10. “Understanding poverty in its true details is a half way solution to it”
REQUIRED

a. Give your detailed understanding of the term poverty.

b. Give all poverty indices you know and critically evaluate its contribution towards
understanding poverty in its true dimensions and depth.
c. Establish a sound argument for or against the statement above.
11. “Countries in the sub-Saharan Africa can hardly eliminate poverty and attain sustainable
development without devising strategies to overcome North-south relation malpractices and
poor governance.” Provide a critical analysis of this statement with reference to any 2 East
African Countries.
12. “The capital of the poor is their own effort”. Based on this statement critically asses the
contention that the solution to the third world poverty is by any way tied to the developed
world.
13. Asses the Tanzanian industrialization policy as implementation of Vision 2025. If you were
 given a chance to advice, what would be your advice to the government in transforming the
economy into medium income level by 2025?
Chapter 5 : Environmental Issues and Sustainable Development

14. According to global warming report of 2013, “human activities contribute more than fifty
percentages to global warming. I care is not taken earth is predicted to turn into inhabitable in
the near future.” Discuss this contention based on Tanzania’s regime to deal with
environmental degradation. How effective are the regimes employed

15. Desertification and rise in water sea level are said to be among the silent threat affecting
poor countries south of Saharan desert. Based on any country of your choice assess the
extent to which environmental resilience practice is effective and how such practice affect
development process. Does the process adhere to principles of adaptive management of the
environment? Why?

16. Discuss the concept of resource curse in relation to the discovery of gas and other natural
resources in Tanzania by relating with democratic republic of Congo and Northern Nigeria.
Based on your discussion suggest what should Tanzania do to transform such curse into
resource blessing.

Chapter 6: Gender and Development

17. i. Give short notes on Gender relations.

ii. Gender relations do not operate in a social vacuum but are products of the ways in which
institutions are organized and reconstituted”(Kabeer1996). Based on WID and GAD
approaches to development policy and practice, evaluate the contributions made by
the two approaches in organizing positive gender relations for development of poor
countries. (Take Tanzania as a case study)
iii. What do you understand by the term women empowerment? “Women empowerment
should be a top down approach if development is to be realized.” Based on one of the
developing countries in the sub-Saharan Africa, comment on the above statement
18. Based on state, regional and international indicators of gender development, assess the extent
to which Tanzania’s effort to develop quality gender relations in Tanzania.
Dr. Tresphory Othumary Mgeni is a well known author and researcher in development and
management related themes both locally and at international arena. He has participated in
developing development and management curricular for undergraduate and postgraduate
levels at the Hankuk university of Foreign studies in South Korea, Birla Institute of
Management Technology in India, Mohanlal Sukhadia university of Udaipur in India and
university of Dar es salaam, Institute of Finance management, and St. Augustine university in
Tanzania to mention a few.

Dr Mgeni has supervised many students at post graduate diploma and masters level in the
area of development and management related researches ranging from human resource
management and organizational behavior and related phenomena.

He has equally published widely in development economics and human resource

management and a wrote three books namely introduction to research methodology,
introduction to international development vol1, nature of Human resource Processes for post
graduate studies and development studies hand book 2019, the development of the late
comers. The author has published widely in international journal and got an award of the best
research of the year in international development at Hankuk university of Foreign studies in
South Korea in 2012.

It is our Hope that, you will find this work enriching and useful for upgrading your
development studies knowledge both for academic and non academic purposes.