Development Theoriess 2008

imagine there no heaven
DEVELOPMENT THEORIES
Darshini Mahadevia
(Course: Theories and Evolution of Planning)
Semester II
Faculty of Planning and Public Policy
CEPT University, Ahmedabad
WHY STUDY DEVELOPMENT THEORIES AS A

STUDENT OF
O PLANNING
A G?
| Planning is for Change and in the modern world we talk

of planned change, through planners.
| Deliberately engineered social change oriented to
specific goals.
| But,
But in development theory,
theory there is also now a new
major strand (stream of argument) that challenges the
assumption of superiority of planned change in contrast
to change through open political debate (negotiations of
the stake holders)
1
CHANGE VS. STABILITY
| IIn history,
hi t over short
h t period
i d off ti
time, one fifinds
d
rapid and continuous change
| On the other hand,
hand over long period of timetime, one
finds long periods of stability
| What is p primary?y Changeg of stability?y
| That depends upon one’s world view, whether it
is optimistic or pessimistic, optimistic view looks
att change
h andd pessimistic
i i ti view
i llooks
k att ‘G
‘Goodd Old
Days’
CHANGE VS. EFFECTIVE CHANGE
| Change is something that is permanent (a

statement that is a paradox)
| Term
T effective
ff ti change
h iis value-laden
l l d
2
AND SO THERE IS ETHICS OF CHANGE

| Most important ethical term associated with
discussion of change is ‘Progress’
| Term
T ‘Progress’
‘P ’ has
h many versions.
i
| There are three versions of term ‘Progress’ (Now
even four from the perspective of the South)
These are: (i) Eighteenth Century version
(ii) Nineteenth Century version
(iii) Post-Second World War
version
Major development theories are informed about

the Western ethics of ‘Progress’ as the Change
g
indeed begun from the industrial societies of the
West. Now, when the developing world is
industrialising, question of ethics has become
i
important
t th here as well
ll and
dhhence thi
this course.
3
| Broadly,
B dl there
th are ttwo main
i positions
iti ffrom
which ‘Progress’ is analysed
(i) Liberal
Liberal-democratic
democratic – Change as evolution,
evolution in
which man viewed as ‘consumer’, that is
humankind is seen acting in selfish wants
(desires) A fairly pessimistic position.
(desires). position
(ii) Radical-democratic – Sees humans as doers
(actors) and humankind acting in light of social
goals,
l arguing
i that
h positive
i i change
h is
i possible.
ibl A
fairly optimistic position.
| Change, Social Change is viewed with two

perspectives (metaphors)
(i)Continuity,
(i)C ti it th thatt iis evolutionary
l ti change
h – Social
S i l
evolution, that is the survival of the fittest, which
Darwin had stated in ‘Biological evolution’
(ii) Rupture, that is radical change
4
EVOLUTIONARY SOCIAL CHANGE PERSPECTIVE
| Very convenient argument for those arguing for a ‘laissez faire’ in

economics, that is those pursuing indiscriminate pursuit of
wealth.
| Summarized in five points
p
(i)The object of enquiry is the whole
(ii) Idea of cumulative change – that there is no sharp
discontinuity
(iii) Idea of endogenous change – that the change arises from
within the system and not through external impetus
(i ) Idea
(iv) Id off increasing
i i complexity
l it – there
th iis shift
hift from
f simple
i l
forms to complex forms
(v) Idea of unitary direction of change.
| Liberal-democratic theories fall here.
RUPTURE AS A PERSPECTIVE OF SOCIAL CHANGE
| Veryy different from evolutionary y

| Predominantly Marxist – Society is inherently build of
groups that have conflicting interests and hence are in
social
i l conflict.
fli t These
Th conflicts
fli t provide
id motor
t for
f
change.
| For example,
example Marxists argue that capitalist
entrepreneurs destroyed the local historically
outmoded social forms and created new forms of social
organisation
i ti iin a society.
i t
| Radical-democratic theories of change fall here.
10
5
Liberal-democratic theories
(i) Liberal-market theories
(ii) Social-market theories
11
| Liberal-market theories – These are earlier group of theories.

Within these there are three streams:
(a) An eaearly
y UK/UN
U U line ewwhich
c iss heavily
eav y influenced
ue ced by
economics
(b) A line mixed in more sociology with economics, which is
more US product
(c) Neo-classical (resembling early economic theories) which
emphatically asserted the priority of market in human affairs
and sub-ordination of ‘state’
state to market
market.
(State is considered external intervention in market processes)
y Development or progress is equated with economic growth

y Amenable to technical characterisation
y A relationship of super and sub
sub-ordination
ordination legitimated
y Development theories coming from those who are developed,
through experts of the developed countries
12
6
| Social-market
S i l k t theories
th i – Reject
R j t th
the above
b
model and sociologized economics. Progress is not
jjust
s eqequated
ae w with economic
eco o c growth
g ow but w with
planned, ordered, social reform.
| Progress is ordered social reform
| Produced by other than economists and is
pragmatic, humane and plausible
13
| Radical-democrat
R di l d t th
theories
i – Democratic
D ti ethic
thi
and historical materialism strategy of analysis.
Marxist. Historical materialism is: society under
constant
t t change,
h moving
i from
f one level
l l off
material well-being to another, the move carried
out through conflict of classes.
| Human is considered a doer or an actor in this
social change process. Process of change built
around ‘objective
objective conditions
conditions’ of change and
‘subjective forces’ of change.
14
7
| The liberal-market and social-market theories

g
together are called orthodox theories
| They tend to take the whole business of development
as technical or/and obvious.
| Liberal-market see development as a matter of
building appropriate physical, social and economic
structures, largely as a matter of acquiring
characteristics familiar with the experience of
developed nations.
nations
| Social market see development as a business of
organising decent lives for people living in the Third
World, mainly disadvantaged groups among them.
15
| But, the notion of development is not purely

technical and is certainly not obvious (that is
development will take place).
place) It is an ethico
ethico-
political notion. Hence, the process of bringing
change,
c a ge, ‘planned
p a ed change’
c a ge oor ‘planned
p a ed pprogress’
og ess is
s
not technical.
16
8
METHODS OF CHANGE
(i) either through political action by a range of agents

(ii) or through planning intervention for ordered change
17
ACTIONS FOR ORDERED CHANGE
i) State action to secure change – Intervention by the

State. It is the approach of agencies committed to
planning in pursuit of development goal. Pursued by
international agencies linked to UN, by governments
of new nations. Was an influential approach during
early phase of decolonisation
decolonisation. Approach centres around
agencies of planned change.
18
9
ii) Spontaneous through market – Argues for

spontaneous order and development generated
through free market. The markets are self-regulatory
(not regulated by the state) and there is mimimal rule
rule-
setting by the state. Development (economic growth)
through maximization of economic, social, political and
cultural
lt l benefits.
b fit
Institutions promoting this approach are the

international financial institutions such as the IMF,
World Bank, Asian Development Bank, etc.
This approach has failed to promise realisation of

maximum
i benefits
b fi to the
h poor off the
h Thi
Third
d World.
W ld But,
B
has a strong intellectual backing, as development
institutions continue to be dominated by the 19
economists.
iii) Political power for development – Central role

is allocated to public sphere within which rational
dialogue can lead to change
change. The institutional vehicles
for change are the NGOs, charities, and social
ove e ts. In Europe,
movements. u ope, suppo
supportt has
as co
comee from
o media,
ed a,
political activism and academia. Critics point out that
this approach cannot resolve the situation when
conflicts arise.
A radical version of this is Marxist version of class

struggle. But, that does not remain a planned change.
The process to attain state po
power
er becomes a political
struggle which is radical, and subsequent ordered
actions are by the state agencies. 20
10
RISE OF SOCIAL SCIENCE
1 Planning is an extension of Social Sciences

- Town Planning has antecedent (ancestry) in Physical
planning and greatly influenced by
architects/engineers
- Modern, democratic society, we use term urban and
regional planning and not town planning and is seen
as an extension of Social Sciences for the success of the
discipline
- Today, urban and regional planners work in different
capacity than just town planners and hence, this
overview of history of social science discipline is
essential
essential. 21
2 Rise of social sciences is rooted very much in the

European experience, particularly of three
streams through 17th to 19th centuries:
i) English enlightenment – Hobbes and Locke
ii) French enlightenment – Rousseau and Saint-
Simon
iii) Scottish enlightenment – Adam Smith
These efforts resulted in rise of modernist paradigm
(theory) of development and urban and regional
planning
l i emerges as epitome
it off modernist
d i t paradigm.
di
22
11
ENLIGHTENMENT MOVEMENTS IN EUROPE

i) René Descartes – Early 17th century. A French
mercenary (some one working only for money).
| Descartes gets a dream. The dream says, (a) doubt
everything that presents itself to mind
mind, (b) dissect the
problem into many parts as possible, (c) reconstruct
the whole process through step-by-step inductive
process (reasoning developed from observed examples
or from empirical observations and (d) enumerate and
record everything.
| Descartes sets theh stage ffor abstractions,
b i analysis,
l i
synthesis and control.
| Descartes
Descartes’ss vision was unitary (formed of singular
units added up together), universal and absolutist
(complete and final without any alternative).
23
| He said,
H id there
th iis only
l one answer tto any problem
bl and
d
there is only one truth.
| This is veryy much modernist p paradigm,
g , which stated
that there is only one way development can take place
and there is only one definition of development.
| This is the beginning of scientific reasoning and
rationalism. Prior to that, knowledge was controlled by
theology. Science had not developed.
| By
B mid-20th
id 20th century,
t this
thi Cartesian
C t i vision
i i was att the
th
unconscious level as the fundamental assumption of a
global culture of modern institutions and bureaucratic
d i i making.
decision ki Human
H societies
i ti are abstracted
b t t d as
expanses of space awaiting planning, inputs, and
infrastructure, to be arranged and rearranged according
to circumstances
i andd calculations.
l l i
| Cartesian vision was a very much mathematical and
geometric vision of human society. 24
12
ii) Sir Francis Bacon – Early 17th century.

C t
Contemporary off D
Descartes
t
| Emphasises use of human reason in inquisition of
things, that is use of deductive logic, unlike inductive
methods
th d (empiricist
( i i i t method)
th d) off Descartes.
D t
| Development of logic as a discipline is attributed to
Bacon.
| Bacon argues that h the h method
h d off understanding
d di
anything is to analyse it by breaking it into pieces, and
by due process of exclusion and rejection lead to
inevitable conclusion.
conclusion The purpose is not to win
argument with academician (like Indian philosophers
have been portrayed doing it), but for commanding
nature in action.
action
| He suggests that only with the division of labour and
specialisation “men will begin to know their strength,
when instead of great numbers doing all the same
things, one shall take charge of one thing and another
of another.
25
| He emphasises instrumental role of reason and

knowledge (Once again,
knowledge. again in theology controlled system
of knowledge – one where India is now moving to –
reason has no place and the knowledge is given).
| For Bacon acquisition of knowledge is for purchasing
everything, including power. Bacon’s vision of modern
knowledge was one of power, of domination of nature
and domination over others ((those lacking g knowledge).
g )
(This indeed was stated by many colonialists, for
example, Sir Cecil Rhodes who conquered and created
a country called Rhodesia – now called Zaire – said
th t th
that throughh hi
his k
knowledge,
l d h
he wanted
t d tto civilize
i ili the
th
barbarians.)
| Bacon argued that what makes some humans (men)
g d over others
god th is
i the
th invention,
i ti the
th ttechnology.
h l g
Hence, Bacon is called prophet of technocracy.
| In Bacon’s vision, the knowledge and technology are
only in the hands of the few
few. His knowledge is equated
with utility (control over nature and people) and
power.
26
13
ENGLISH ENLIGHTENMENT - ISAAC

NEWTON (1643-1727)
( )
| Defined parameters of western science. Later half of
17th century was a period of unprecedented scientific
discoveries, and setting up of British Royal Society and
French Academy y of sciences. ((This was also a p
period of
setting up of state-sponsored institutions to promote
economic development and Bank of England, first
national central bank founded in 1694.)
| Newton moves Aristotelian metaphysics to modern
physics,
h i the th move ffrom religious
li i anddA
Aristotelian
i t t li
reasoning about world to modern stress on attention to
natural world as route to knowledge.
knowledge 27
Move from
- theistic to materialistic explanation of nature of human
and other living creatures’ existence,
- medieval scholasticism to modern rationalism and
empiricism as nature of knowledge
- abstract theoretical reflection to the use of experimental
method
ethod of ge
generating
e ati g k
knowledge,
o ledge and
a d
- contemplative acquiescence (acceptance) to generating
knowledgeg to a notion that effective action flows from
the deployment of practical reasoning.
The Newtonian science gets tied to the rise of bourgeois

(middle-class) mercantile (commercial) capitalism. The
new rising bourgeoisie needed natural science against
the church-led
church led feudal status quo.
quo The French
Enlightenment shrugged off religion completely from
public sphere.
28
14
FRENCH ENLIGHTENMENT
| French Enlightenment produced a series of thinkers who were
committed
itt d tto political
liti l change
h iin F
France and
d th
they saw th
themselves
l
as in alliance with the rising bourgeoisie in France.
Rousseau (1712-78)
R (1712 78) is
i one known
k face
f off French
F h Enlightenment.
E li ht t
- Rousseau affirmed general rationalism and determinism.
(Determinism is theory that actions are determined by forces
independent of will,
will that is actions are a result of objective
conditions and not subjective will).
- He argued that human freedom depended on clear understanding
of the laws of nature and society
society. And any deviation form these
laws would have negative impact on the individual.
- He looks for an ideal moral/social order.
29
- He believes that the social contract,, that was originally

g y
designed to protect members has become twisted into
inegalitarian forms. He argues for a social reform for the
citizenship in republican democratic politics. (Republic is
where the supreme power is held by people or their
representatives). Notion of equality brought.
- Rousseau is considered the theorist of the French Revolution.
French Enlightenment was followed by French Revolution,

which incidentally was very bloody. There was time in Europe
when ppeople
p who considered themselves as democrats were
viewed with someone who had blood on their hands as a
consequence of French Revolution. It gave way to Napoleon
and through who bourgeoisie came to power and there was a
gradual shift to industrial liberal democracy through the
nineteenth century.
Same thing happened in UK and liberal democracy began with

the beginning of the industrial societies. In USA, with an open
continent, economic growth and liberal democracy went
straight into practice.
30
15
SAINT-SIMON – THE FIRST PLANNER (1760-1825)
| Saint-Simon – a French count, named Claude Henri de

S i Si
Saint-Simon.
- Mission to work for the improvement of humankind.
- Material industrial production
Material, production, and technology would
be the means to accomplish this improvement, and for
him, these three words became synonymous.
- Thi meant totall reorganisation
This i i off society.
i
- Saint-Simon was truly the modernization project.
- Like Descartes and Bacon,
Bacon who displayed desire to
control nature, Saint-Simon, believed in it and not only
that he did not find anything wrong with it. He declared
“d i tto d
“desire dominate
i t which
hi h iis iinnate
t iin all
ll men h
has
ceased to be pernicious, or atleast, we can foresee an
epoch when it will not be harmful any longer, but will
b
become useful”.
f l” 31
- Saint-Simon and his followers envisaged g a society y

reorganised to channel human aggression into massive
development projects and incessant industrial growth.
Theyy envisaged
g g government as applied
pp economics,, and
politics to be replaced by technocratic, instrumental
reason, by science of production.
- Key to this transformation was to be the organisation
of all material activity in the society through a unitary
and directing bank, which would be depository of all
riches total fund of production
riches, production. This bank would
oversee, credit institutions that would be responsive to
localised production needs.
- He
H can b be called
ll d th
the fi
firstt d
development
l t planner.
l H
He
travelled to USA to participate in American
Revolutionary War in 1783. Then he went to Mexico to
unsuccessfully
f ll convince
i the
h SSpanish
i h Viceroy
Vi to invest
i
in plan to construct a canal across Isthmus of Panama.
- He proposed European unification. 32
16
- After his death, his followers initiated a journal, Le

Globe which was read over whole of Europe
Globe, Europe.
- Saint-Simon had a vision of creating a ‘Supreme
Council of Newton’, in which 21 men of science and
artists would govern the world and assume the moral
authority, which was at that time was with the
Church. Saint-Simonians, too floated a vision, through
Le Globe,, to have economic and political
p union of
Europe and Far East, linked together by a system of
railroads and canals and to be financed by new
industrial development banks. (Does this sound
f ili ?)
familiar?)
- Many Saint-Simonians were engineers, graduates of
École Politechnique in Paris, as we as chemists,
g l gi t and
geologists d fi
financiers.
i IIn hi
history
t off E
European
development, particularly with respect to railroads
and banking, their influence was immense.
- Saint-Simon
Saint Simon unleashed a technocratic utopia,utopia
(technocratic faith or what one now calls
modernisation ideals).
33
- But
But, they also had realised that in fulfilling these
ideals, private property and inheritance laws came in
the way. Thus, Le Globe invented the new philosophy
‘ i li ’ iin 1832.
‘socialism’ 1832 And
A d the
th Le
L Globe
Gl b took
t k a tturn
towards socialist principles, mainly based on the
gy of abolition of p
ideology private p
property.
p y ((Remember
that the French enlightenment movement considered
owning of private property as a natural law, which was
getting challenged somewhat later in France
France, through
the ideology of Siant-Simonians.
- Tremendous influence of Saint
Saint-Simonians
Simonians is found in
the leaders of the Third world, after the independence
of these countries from European colonial rules.
(Which we will see later.)
later )
34
17
ADAM SMITH (1723

(1723-90)
90)
| Known for economic thought,

thought called classical
economics
| He affirmed Newtonian method of proceeding from
first principles to reconstruct the complexity of the
observed world.
35
Key ideas of Smith’s economic system are:

a)Division of labour, where specialization in production
coupled with technical innovation allows vastly
increased production and economic growth.
growth
b)The notion of market, where products are offered to
consumer and which acts as an institutional structure
where the buyers and sellers meet and agreements on
price of land (through rent), labour (through wages)
and capital (through profit) give signal to all parts of
the economic system of how the future is to be
rationally ordered.
c) The postulate of economic rationality, the ideas that
the buyers and sellers are rational agents (actors) who
know their wants.
wants
36
18
d) The notion of spontaneous order whereby the

pursuit of individual satisfactions generates via the
mechanism of the invisible hand optimal societal
benefit. The invisible hand is the social structure.
e) The idea of economic progress over time as the
market freed of mercantilist restriction worked to
secure wealth of the nation.
nation
Smith’s work pre-dates industrial revolution and
does not anticipate industrial society.
society
37
Impact of Smith’s work on social sciences is that:

a)The sphere of market can be investigated
naturalistically
li i ll b because iit iis the
h realm
l off economic i
causes and effects
b)Th ttechnical
b)The h i l knowledge
k l d off economic i science
i will
ill
enable actors to order their activities better.
c) His notion of rational economic man is still used in
economics as an ideal type whereby economic activity
y
can be analysed.
38
19
Adam Smith
Smith’ss theory articulates the interests of the
rising industrial capitalists. They were attracted to the
following arguments of Smith:
i) The free pursuit of private gain can act to raise the
levels of living of the entire community.
ii) How individuals in a community can be pursued to take
up activities that would benefit both the individuals as
well as the whole community.
With regards d to
t wages off the
th workers,
k he
h says that
th t the
th
wages should be natural wages. Natural wage was a rate
that just allowed the workers to survive and reproduce.
If wages fell below subsistence levels than the workers
would die and there would be fewer workers whose
wages would then have to increase and by that wage
rates would increase.
increase If more wages then improvement
in living standards and more workers (either by more of
their children surviving as he said or more becoming
workers),), that would bringg down the wage.
g 39
Smith was also father of Public Finance, which was

then picked up by Pigou. Smith did say that there
was role of government. He said how the
government could raise its revenues.
revenues That was done
to generate high economic growth rate. That was to
be done through taxation. He laid down four
maxims/
i / rules
l for
f ttaxing
i theth public:
bli
(i) Taxes should be proportional, every one should pay
the same proportion of their income as taxes (unlike
today as many of the taxes are progressive) (when
Smith was writing, most taxes were regressive and
a proportional
ti l tax
t would ld h
have reduced
d d th
the ttax
burden on the low income families)
40
20
(ii) Tax payers should not be kept in dark about their

taxes, they should know in advance how much they
have to pay and that the tax laws should not be
changed radically from year to year.
(iii) Taxes should be levied at a time and in a manner
that
h iis most convenient
i ffor people
l to pay. Eg.
E
Current practice of levying capital gains tax when it
realised and not when it is accrued is best example
of this maxim.
(iv) Best tax was the one that was least expensive to
collect.
41
Smith s political economy

Smith’s
i) There is increasing interdependence of people within a
society as the production system advances.
ii) W l h was derived
Wealth d i d from
f creative
i h human llabour
b
working on available natural materials in order to
produce useful objects. (Labour theory of value
subsequently
b l d
developed
l dbby M
Marx).) Th
The value
l off goods
d
traded in the market place derived from the labour
embodied in them.
iii) The key to increase in wealth of nations is the rise
in labour productivity associated with the increasing
division of labour.
labour As the tasks of production are
broken into specialist parts on the basis of advances in
productive techniques and machinery then both the
overall output of the economy increases and the
interdependence of the various elements of the
economy increases.
42
21
iv) How were these individual actions ordered (organised) so

that
h there
h was no anarchy h andd the
h overallll harmony
h was
maintained? That was through the market place, through
the rewards of land, labour and capital.
v) How are the prices of each of the factor of production,
land, labour and capital determined? Aruges Smith,
through what is the social circumstance of each of the
actor
t ini concerned,d the
th labour,
l b the
th capitalist
it li t and
d the
th
landowner. Smith is dividing the population into different
classes and analysing their position in the overall
economy (This class analysis,
economy. analysis Marx takes forward to give
his analysis of society and social change.) Orthodox
economists look at individual behaviour and not classes.
Smith’s economics is called classical economics. From

there the term neo-classical comes, one who pick up the
market
k t partt off Adam
Ad S
Smith’s
ith’ th
theory andd nott th
the political
liti l
economy part. (The classical economics grapple with the
grasping of structural dynamics underlying surface
market phenomenon).
phenomenon) 43
Neo classical economists or what is called the New

Neo-classical
Right emerges from the Adam Smith’s theory of free
market. This is a misleading treatment of Adam
Smith. They make an overarching claim that the free
markets maximize human welfare. They argue that:
i) Economically,
E i ll free
f markets
k act efficiently
ffi i l to distribute
di ib
knowledge and resources around the economic system
and that leads to maximization of material welfare
(The current regime of IPRs do not efficiently
g )
distribute knowledge)
ii) Socially, as action and responsibility for action
resides with the person (individual), then the liberal,
individualistic social system ensure that the moral
worth is maximised.
44
22
iii) Politically, as liberalism offers a balanced solution

to problems of deploying, distributing and
controlling power then liberal polities ensure that
political freedom is maximised.
maximised
iv) As the whole package is grounded in genuine
positive scientific knowledge then in such a system
there would be effective deployment of positive
knowledge.
Free market comprises of atomistic individuals who
know their own individually arising needs and
wants and who make contracts with other
individuals through the marketplace to satisfy their
needs and wants. The market is a neutral
mechanism for transmitting information about
needs and wants and goods that might satisfy them.
45
According to the New Right, this model is a

satisfaction-maximising asocial mechanism in which:
)
a)There is legally
g yg guaranteed p
private ownership p of
means of production,
b)There is pervasive perfect completion amongst the
suppliers who operate in complex division of labour.
Perfect market is where there is abundance of
suppliers
li andd consumers, there
th iis perfect
f t iinformation
f ti
of buyers and sellers and commodities and there is no
monopoly.
monopoly
c) The suppliers are aiming to meet the demands of
sovereigng ((independent)
p ) consumers
d) Everything is ordered through the market.
46
23
Track record of the New Right. The World Bank and the IMF are
part of this New Right.
Right
i) In UK and USA, that has led to unemployment, reductions in
general welfare, declining manufacturing production and
mountains of debt. ((Something g that has begun
g to happen
pp in
I di )
India).
ii) Other alternative models have succeeded, such as social market
system, which is based on consensus-centred corporatism, or
east Asian experiment of state
state-assisted
assisted development, the latter
being particularly being cites as a great success.
iii) In the third world, post-1980s, the neo-classicism has governed
the policies of the government, which was not so immediately
after the second World War
War, when the newly independent third
world country governments were aware of their political-
economic, social-institutional and cultural weaknesses.
iv) Increase in hungerg ((see Africa)) through
g ppermanent damage g done
to the
h fragile
f il economiesi off the
h Third
Thi d World.
W ld (Susan
(S George’s
G ’
work)
These programmes of liberalisation

liberalisation, have usually
required parallel programmed of political repression. (In
India, it is accompanied by communalism, a method through
which political freedom get curtailed, of the minorities directly
and of the majority through shrinking of political space.)
space ) 47
KARL MARX
- Dialectics of Historical Change
Dialects is investigation of truths in philosophy. The

dialectal method assumes that everything is under
constant change g and only y thingg that is the final truth
or universal or permanent is the constant change.
(This sounds paradoxical). And hence, there is nothing
that is given. In contrast, there is opposing view in
philosophy
hil h that
th t says that
th t there
th are certain
t i truths
t th ththatt
are permanent (constant) and which do not change and
one of that is ‘God’. ‘Dialectics of Nature’ written by
Fredrick Engels
Engels, talks about this constant process of
change in the daily processes of nature. At the end of a
process of change, a thing transforms itself into its
pp
opposite. ((Dayy becomes night,
g , hot becomes cold,, and so
on)
48
24
- Materialism ((Historical Materialism))

Materialism as a science argues that there is material
basis for everything. That is, the people make their
lives in their routine productive activity. This
productive activity is taken to be the central business
of human social life and around it more abstract
concerns, such as law, religion, art, etc. cluster.
49
“In the social pproduction of their life,, men ((and women))

enter into definite relations that are indispensable and
independent of their will. relations of production which
correspond to a definite state of the development of
their material productive forces. The sum total of these
relations of production constitutes the economic
structures of society, the real foundation, on which rise
a legal and political superstructure and to which
correspond definite forms of social consciousness
consciousness. The
mode of production of material life conditions the
social, political and intellectual life processes in
general.l It is
i nott th
the consciousness
i off men th
thatt
determines their being, on the contrary, their social
beingg that determines their consciousness” ((In preface
p
to A Contribution to the Critique of Political Economy
in 1859) by Karl Marx).
50
25
Religion is the superstructure

superstructure, that he calls is opium of
the masses.
Know a person through his/her actions and not words

as the true identity is in the material being (material
actions) and not in consciousness.
Marx has a materialist conception of History, where is

makesk h human production
d ti tto analysis
l i off human
h life.
lif
The history is interpreted through physical evidences
found and not from the epical works written by saints,
etc.
t H He argues that
th t human
h beings
b i make
k ththeir
i own
patterns of life. (A book called Man’s Worldly Goods by
David Liberhan that is the materialist interpretation
off hi
history).
) Thi
This materialist
i li thesis
h i off history
hi is
i now
widely and routinely accepted as a basis of social
science exceptp the religious
g fundamentalists of all hue,
51
Hindu, Muslim, Christian, etc.)
- Marx gave a philosophical and economic critique of the

capitalist economic system, which was the economic
y
system of his time. The new industrial economic
system was based on capitalism. He uses his
materialist philosophy to argue out that capitalism is
not the
h final
fi l economic i system and
d it
i was not given.
i It
I
is bound to change and move towards socialism.
(Remember socialism as a philosophy had come into
(Remember,
being in France with the work of Rousseau and then
Saint-Simon followers). )
52
26
- Marx’s critique of capitalist economic system is that in

thi system,
this t th labour
the l b b
becomes a routine
ti f t
factor off
production and the worker’s labour is controlled by the
others. Because of the division of labour, work
specialization routinization of work,
specialization, work and the external
control of labour, the worker gets alienated from the
product of his labour (that is alienated from the
product he makes).
p ) This leads to destruction of human
creativity. And hence, worker becomes an element in
the capitalist production system. And hence, the
labour goes to work for wages and not because he/she
id tifi
identifies with
ith this
thi work.k This
Thi alienation
li ti off worker
k
from the work is the essence of capitalist system of
production. Also human beings are alienated from
their ‘species
species being
being’ as capitalist social relations
degrade the collective human creation of self and
society. Thus, there is an overall alienation that takes
place in the system.
p y
53
- But, this alienated labour in the capitalist system is

nott voluntary,
l t b
butt in
i a sense iis fforced.
d
(This alienation process, in the current world is
addressed by law and order machinery. In the earlier
f
forms off society,
i t it was ththe id
identity
tit off iindividuals
di id l with
ith
the production system and by that with each other,
that kept society in stability. What we now call social
controls )
controls.)
But, this alienation also frees the labour from societal
controls. The labour becomes a free labour, not tied to
land or any asset.
asset Labour becomes a proletariat (those
earning from wages by selling their labour).
Proletariat having no other asset but their own labour
power to sell.
p
- According to Marx, the production system in
capitalism is social, that is through social
division of labour,, (no ( one individual produces
p any
y
single
i l commodity di or product),
d ) but
b the h value l
produced through labour is appropriated (taken
by force) by individuals, that is by capitalists, the
owners of capital.
capital 54
27
Marx’s economic analysis,y , that is analysis

y of economic
dynamic of capitalism. The main features are:
i) Capitalism is historically novel because in it the
production is oriented not to the satisfaction of social
or human needs but to the requirements of the market
exchange of commodities.
ii) Each co
commodity
odit ha
has a use
e value
al e (the ffunction
ctio of
commodity) and exchange value (the value of
commodity in market).
iii) Value is created by expenditure of labour (like
Adam Smith).
iv) In a day
day, the labourer sells his labour (calls labour
power) at the market price produces a surplus over his
replacement needs.
v)A
)A labour (worker)
( orker) sells his power
po er to labour and hence
it is the labour power that has value and not the
worker who has value.
55
vi) A labourer (worker) gets the price for his labour

power that is just enough to provide the labourer’s
conditions of existence (food, housing, basic welfare,
and so on).
on)
vii) The labourer gets the wages that are much lower
than the value created by the labour power of that
labo e That iis, the labo
labourer. labourer
e ccreates
eate value,
al e oover
e aand
d
above value required to subsist that labour.
viii)) The additional value created by y the labour in this
process is called surplus value of labour and that is the
basis of profit in a market place, which is earned by
the capitalist,
p , one who deploys
p y capital
p in the
production system.
ix) The capitalist system therefore is inherently
exploitative Ratio between labour necessary to
exploitative.
reproduce labour (called necessary labour) and surplus
labour, is called the rate of exploitation.
56
28
x)Capitalist system is competitive and thus technically

innovative. In the process, the system reaches a stage
where the technical innovations lead to more and more
deployment of capital and becomes capital-intensive.
capital intensive
The labour is replaced by capital. On one hand, the
p
addition of surplus value of labour decreases by y this
and hence the profits fall. On the other hand, the
labour are squeezed and their wages (value given to
the labour)) ffall due to surplus labour in the market. It
leads to reduction in purchasing power of commodities
by the labour.
labour This leads to a situation of
overproduction in the capitalist system. This leads to
g , closure of factories,, production
fall in wages, p decline
and thus depression. The great depression of the
thirties is the result of the over production in the
capitalist
i li system.
57
This overproduction leads to capitalist seeking newer and

newer marketk (which
( hi h the
h colonialists
l i li did through
h h capture off
the third world). By the First World War, the globe was divided
by the colonialists in their colonies. Germany was the new
entrant
t t in
i th
the capitalist
it li t system
t by
b earlyl 20th century.
t A
And
d so
was Japan. To be able to have a share of the global cake of
colonial countries, Germany wages the Second World War,
under the leadership of Hitler.
Hitler
Today’s system is also a crises of global capitalism. There is

overproduction
d i off various i goods
d and d services,
i iincluding
l di ffood,d
but, there are no buyers. People do not have adequate wages to
buy even food, which leads to hunger deaths in many parts of
th world.
the ld T
Today’s
d ’ technology
t h l has
h reachedh d a stage
t that
th t it can
produce everything in abundance, but, the economic system is
such that there are no adequate buyers of these goods. (Hence,
the system of privatisation in services,
services e.g.
e g of water supply,
supply
sanitation, etc. in cities, would lead to situation where there
would be no buyers of these goods)
58
29
xi) The crises in capitalism on the other hand causes

misery for the proletariat, which fosters class
consciousness in them and which would ultimately
lead them to organising to over throw capitalism.
xii) The basic contradiction in the capitalist system is,
as mentioned,
ti d th
the production
d ti iis social
i lb
but,
t th
the profits
fit
and property ownership is private. Through
g
organisation, the labour would overthrow such a
system and remove this contradiction, and create a
system where there is no private ownership of
property.
property
59
Marxian view of state,, party

p y and revolution
Each dominant economic class of any system, has the state
through its law and machinery, working in the benefit of the
dominant economic class. And the ideology or the theory of that
dominant economic class becomes the ideology or the theory of the
state. This is why, in the pre-industrial periods, the feudal classes
and then the mercantile classes had theories to support their
dominance. Which, Adam Smith overturned and whose theory the
rising industrial class made their own.
Thus, executive of the modern state is a committee for managing
the common affairs of the whole bourgeoisie. “State is a machine
in the hands of the few wealthy to oppress the majority in the
process of appropriation (taking by force) the benefits produced by
the majority.” Lenin, the father Russian Bolshevik Revolution
gave this theory of state and used the same in establishing
proletarian state in Russia. It is argued that the overthrowing of
the bourgeois state is the only way to establish a state of the
proletariat. And this overthrowing of bourgeois state would be
necessarily violent. (Overthrowing of feudal state in France was
through French Revolution, that established the power of
industrial capital over the feudal lords).
lords) The theory of state gets
the name Marxism-Leninism, implemented in a new way in
China by Mao-tse-tung.
60
30
Impact
p of Marxism
i) This Marxist approach to analyse a societal system is something
that is new and has captured the social scientists. That is, looking
at the system as a whole and analysing the society from the
perspective of class analysis.
analysis The system of exploitation as
inherent in the capitalist system is the beginning of the economic
analysis of a society.
ii) Role of state was what has gripped the planners. Only in socialist
countries the cities are planned as the way planners have
countries,
planned.
iii) The middle path between socialist state and capitalist state
is the welfare state where the state acts as a welfare distributingg
mechanism,
h i thereby
h b capitalist
i li k keeping
i the
h controll off state and
d
thereby over the private property whereas ensuring that the
labour are not pushed to such a stage of penury that they
g
organise on class lines to over throw the state.
iv) Marx’s work encompasses a body of social scientific ideas
and related subsequent social movements. Social movements
often do not take place spontaneously. Leaders, that is, subjective
forces are required for any social movement to take place
place. An
organisation is required to carry out social movement. The
leaders and cadres in such organisation come with this new
understanding of the social reality, the reality of exploitation,
that leads to a social movement. 61
v)) Marxism has been a very yppowerful ideology

gy that has attracted the
oppressed, the Third World Countries (all national liberation
struggles in the third world were led by leaders influenced by
Marxist ideology of socialism and communism), the labour
movements and even women’s
movements, women s movement.
movement Within each
movement, women’s movement, environmental movement, which
has led to changes in development paradigm globally, there is a
very y strong
g presence
p of Marxists.
vi) Academics, throughout the world, especially in Europe and
the Third World, have been influenced by these ideas. A stream of
social scientists, called the structuralists emerge from the Marxist
school
h l off thought.
h h
vii) Theories of imperialism ‘as highest stage of capitalism’ were
mounted by the Marxists. It is from this understanding, theories
off ‘finance
‘fi capital’
it l’ and
d currentt global
l b l economic
i system
t comes.
From here emerges the core-periphery theories in global
development.
viii) Theories for analysing cities,
cities the primate cities,
cities the global
cities, settlement hierarchy, and city planning efforts, are all
Marxist legacy (much as we may not like to acknowledge it).
62
31
DAVID RICARDO (1772

(1772-1823)
1823)
- Theory of Comparative and Absolute

Advantage
- Th
Theory off Diff
Differential
ti l Rent
R t
1. Smith said, trade occurs when there is
absolute advantage.
advantage
2. Ricardo’s contribution is about comparative
advantage and he said that trade will occur
even if there is comparative advantage and not
absolute advantage.g
63
Automobile Rice
US 1 (per worker per year) 1 (per worker per year)
Japan 3 (per worker per year) 2 (per worker per year)
US has 200 workers and Japan has 100 workers and are equally divided between car
production and rice production
US 100 cars 100 tons
Japan 150 cars 100 tons
Total 250 cars 200 tons
If US only rice and Japan only cars
US 0 cars 200 tons
Total 300 cars (world output higher by 200 tons
50 cars than before)
Who gets the extra output? Depends on the exchange rate.
If 100 cars = 100 tons of rice
US 100 cars 100 tons
Japan (Japan 200 cars 100 tons
gains more)
If 150 cars = 100 tons of rice
US (US gains 150 cars 100 tons
more, gain extra
50 cars)
64
32
| Japanese workers are more efficient at producing

cars. US workers are less efficient in producing
car and producing rice
rice. But,
But US workers are
relatively less inefficient in producing rice.
| US and Japan will benefit from specializing in
what they are relatively better at producing and
then trading with each other.
65
Differential Rent Theory

i) Most productive land always brought first into use.
E.g. Land A of 1 hectare produces 100 tons of wheat.
When next best (B) is brought into use use, which produces
75 tons/hectare of wheat then the value of Land A will
be 25 tons worth of wheat. When land C is brought
into use,, its productivity
p y being g 60 tons/ha,, the value of
l d A will
land ill b
be 40 tons andd off B will
ill b
be 15 tons. A
And
d iit
goes on. More the land brought into use, higher will be
the value of A
In urban land, the most productive land is the most

accessible, with best facilities, etc. When next best
l d is
land i brought
b ht into
i t use then,
th the
th price
i off best
b t land
l d
goes up.
With city expansion, price of best-located lands go up.

Cecil Pugh
66
33
ARTHUR CECIL PIGOU (1877

(1877-1959)
1959)
Welfare Economics & Concept

p of Public Goods
| For some goods, all production costs are borne by the consumer
via the pprice of the g
good
| For some goods, part of the costs of the goods is passed on to the
society in the form of social costs. E.g. pollution.
| If that is possible, then firm may produce too many goods that
would create pollution, which will increase the pollution. Firms
may use old technology so that pollution continues. There is no
way the firm can be made to change the technology. These are
called
ll d negative
ti externalities
t liti
| There are goods whose production can exceed the benefits that
the consumer gets. E.g. Police, fire protection, national defence,
health care spending,
spending education spending
spending.
| If an individual buys a medicine for cold, to remedy his/her cold,
the individual benefits. But, this person’s taking of medicine stops
infecting others,
others then there are social benefits of private benefits.
benefits67
| Divergence
g between social costs and p private costs are called
‘externalities’, ‘spill-over effects’ and ‘third-party effects’.
| Divergence between private and social costs might justify
government intervention in the market place.
| When there are large positive externalities, people gain whether
they pay for it or not. This ability to obtain benefits without
paying for it is called ‘free rider problem’. If I do not pay, it will
g t done
get d iin any case attitude.
ttit d
| If no one pays but everyone gains then there is loss to every one
in the long run. To overcome this, government must tax everyone
so that such public goods are provided by the government.
government
| In case of privately provided goods, if there are negative
externalities, that good is taxed. If there are positive externalities
then that good gets subsidy.
subsidy
| Costs of externalities have to be internalised in the cost of
production of goods.
| Sometimes non-economic measures,
Sometimes, measures such as legal measures are
adopted for negative externalities
68
34
JOHN MAYNARD KEYNES (1883 – 1946)
Called the practical saviour of capitalism,

capitalism proposer of
short-run solutions to economic problems.
Inflation
| Warned of practical problems of inflation. Said that
central government must intervene in the issues of
inflation by controlling money supply.
supply Some
economists opposed it saying that inflation will take
care of itself in the long run. Keynes said: “In the long
run we all will die”.
| Keynes said that short-run interventions are necessary
in the economy and these interventions have to be by
the government. Some economists have criticised him
for thinking about short-run solutions. Keynes 69
believed that it is better to solve the problems now.
Unemployment
| If there was more demand, for goods, then, economies
would prosper, businesses would expand, and hire
more workers (create demand for more workers) and
unemployment would cease. If demand is low, the
firms would be forced to cut back on production and
then on hiring and there would be lay-offs and
unemployment and then depression.
| Great depression of 1920 to 1930s in US was handled
by Keynes
| Keynes
K asked
k d for
f comprehensive
h i socialisation
i li ti off
investment decisions, which a government take
g the central bank through
through g interest rate
policies, high interest rate will reduce investment and
by that production would decline and vice versa.
70
35
| Some thought
S th ht that
th t K
Keynes was asking
ki ffor ttotal
t l control
t l
of government over business investment decisions.
What Keynes was asking for is government spending
policies
li i to stabilise
bili aggregate level
l l off iinvestment in
i
the economy.
| Keynes
Keynes’ss contribution is important for the macro
economy.
| Way out of depression is to create more of housing,
more schools
schools, more hospitals,
hospitals more roads
roads, etc
etc. When
private investments in these was low, government
must invest. If government does not have money then
government must borrow (and run budget deficit) and
engage in public investments in construction.
| When business investments were high, government
must cut-back
b k spending
di and d borrowing.
b i
71
GUNNAR MYRDAL (1898-1987)
| Considered the main architect of Swedish Welfare State

| Myrdal convinced the then Finance Minister of Public Works and to
run budget deficits in order to reduce unemployment
| Theory of Cumulative Causation as an alternate to Equilibrium
Analysis
| Introduced Ex-Ante and Ex post distinction in economic analysis.
Ex Ante or expected is before hand; before the event analysis that
Ex-Ante
gives estimations and forecasting. Ex-post is after the fact, analysis.
Ex Ante gives estimates of expected outcomes and Ex post gives
measures of the actual outcome.
outcome
| Theory of Cumulative Causation – involves a positive or negative
feedback involving two or more variable. It can be contrasted with
uni directional causal change
uni-directional change, in which
which, A causes change in B,B but
B has no further impact on A; the change stops at B. The system
reaches new equilibrium with changed values of variables A and B.
72
36
| Cumulative
C l i Causation
C i means thath variables
i bl A and d B impact
i each
h
other in a process of change. Variable A impacts B and Variable B
in turn impacts A and both reach a new level. The system is
under
d constant
t t change
h andd th
there iis no equilibrium
ilib i att any point.
i t
| When A and B both increase, they are in virtuous cycle of
positive feedback loop; when A and B both decline then we have
vicious
i i cycle
l or negative
i feedback
f db k loop.
l He
H used d this
hi idea
id to
explain poverty and race relations.
| He showed that how entire American society suffered from low
socio economic situation of the Black Americans, now called
African Americans. He said, discrimination breeds discrimination.
This analysis showed that this situation can be remedied in one of
the
h many ways and d improvement
i in
i any one area would ld initiate
i ii
the virtuous cycle of improvement. But, where to start? He looked
to American institutions to break into this vicious cycle of
di i i ti against
discrimination i t th
the bl
blacks.
k Measures
M he
h proposed: d
73
1. Organisations
O i i such
h as churches,
h h schools,
h l traded
unions and the government to play an important
role in improving the socio
socio-economic
economic conditions of
the blacks.
2. Expansion of the role of the Federal government in
the
h areas off education,
d i housing
h i and d income
i security.
i
3. Laws making it easier for the blacks to vote.
4. Ad
Advocated
t d migration
i ti from
f the
th South
S th to t the
th
industrial North, the latter having more jobs in the
new economic sector than the latter that provided
p
jobs on the farm land.
5. Use of fiscal policy to achieve full employment (like
K
Keynes) )
74
37
Myrdal used this theory to explain poverty in South Asia (Asian

Drama, 1968). A way out was suggested:
1. To spend more on education
2. To spend more on sanitation and, by providing clean water and
p g other p
developing public amenities.
3. Income support programmes to address the problem of income
inequality.
4. While most economists argued that there was trade-off between
equality and growth
growth, Myrdal held that there was no such trade
trade-off
off
and that greater equality would lead to more rapid growth (A good
example of that is China, in the hind-sight – not stated by Mrydal).
He said that inequality leads to slower growth because of physical
and psychological consequences of poverty,
poverty as the poor are unable to
utilise their talents. A welfare state that redistributes income would
lead to higher demand and hence more rapid economic growth.
Myrdal criticised the social scientists in general and economists in

particular for not being able to speak and write in the language that
the ordinary person can understand. He also criticised the
economists’ attempt to hide their value or normative assumptions
economists
behind the façade of objectivity. He was not opposed to economists
making value judgements but was opposed to their refusal to accept
that.
75
MILTON FRIEDMAN (1912- 2006)
Two main themes of his work

(i) Money matters – Because only changes in money supply can
affect economic activity and inflation results from too much
money in the economy.
(ii) Freedom matters – Because economies run better when the
governments do not attempt to control prices, exchange rates or
entry into professions.
| Known
K ffor his
hi workk against
i t Keynsianism.
K i i He
H argued d against
i t
the use of stabilisation policies to control either inflation or
unemployment. He said that the fiscal policy would not work
and a monetary policy would worsen the business cycle and
lead to greater inflation.
| Friedman has opposed all forms of government intervention in
an economy
economy, as that is viewed as curtailment of political
freedom. He argued that capitalism is the best economic system
because it promotes political freedom and market can help
offset political power.
power 76
38
| He opposed all government programmes that came in

the way of individual decision-making. Such as:
((i)) Wage
g and Price Controls
(ii) Social security (because it breaks down family bonds
and is actually a transfer from the less well-off to the
wealthy, the latter tend to live longer than the former.
(iii) Government support for higher education (because it
primarily benefit the well-off).
| In contrast he has supported:
(i) All volunteer army

(ii) Education vouchers to all parents to allow them to
select
l the
h school
h l where
h they
h would ld send
d their
h i children.
hild
77
THE NEW RIGHT – NEO-LIBERALISM IN 1980S
| This is called counter revolution by some, especially by those

coming from the left and centrist traditions
| Thi iis eclipse
This li off th
the welfare
lf state.
t t
| Roots in the crises of the metropolitan heartland of the global
capitalist system that emerged in 1970s. In 1973, US took a
decision to come out of the Bretton W Woods system
y and allow its
dollar to float. This went hand in hand with collapse of US
authority globally by the emergence of Japan in the east and
European economy. Since then, Asia has risen, reducing global
p
importance of USA.
| After the election of Reagan in US and Thatcher in UK that the
New Right firmly took power. [In a way it can be seen as
protecting one’s own turf, if New Right is seen as a regressive
movement ] Progressive view of it is that this provided new ideas
movement.]
of democracy, relieving people from the clutches of the state.
| The New Right theorists claim that the modern free-market
capitalist system is maximally effective in producing and
equitably
it bl distributing
di t ib ti theth economic,i social,
i l political
liti l and
d
intellectual necessaries of civilised life.
78
39
THE CLAIMS OF NEW RIGHT ARE:

| Economically – free markets act efficiently to distribute
knowledge and resources around the economic system, then the
material
t i l welfare
lf will
ill b
be maximized
i i d
| Socially – as action and responsibility for action reside with the
person of the individual, then liberal individualistic social
systems will ensure that moral worth is maximised.
maximised
| Politically – as liberalism offers a balance solution to the
problems of deploying, distributing and controlling power, then
liberal polities ensure that political freedom is maximised.
maximised
| Epistemologically – as the whole package is grounded in
genuine positive scientific knowledge, then in such systems the
effective deployment of positive knowledge is maximised.
79
THE NEW RIGHT
| The substantive
Th b t ti core off the
th thinking
thi ki g isi that
th t free
f market
k t comprises
i
of atomistic individuals who know their own autonomously
arising needs and wants and who make contracts with other
individuals throughg the mechanism of the marketplace p to satisfyy
those needs and wants. The market is a neutral mechanism for
transmitting information about needs and wants, and goods
which might satisfy them around the system. A minimum state
machine provides a basic legal and security system to underpin
the individual contractual pursuit of private goals.
| This position has informed the policies of the World Bank, the
IMF and the US government.
government When the World Bank and the IMF
forced these policies on the borrowing governments, these were
called Structural Adjustment Programmes. The World Bank
forced upon the borrowing countries to privatise their structures
andd the
h IMF forced
f d them
h to reduce
d fi
fiscall d
deficit
fi i ((through
h h
minimising the role of state in the economy and society). The
latter resulted in cutting down of government expenditures even
on public goods.
goods 80
40
THE POLICY PACKAGE THAT CAME TO THE DEVELOPING

CO
COUNTRIES AS:
S WAS
| Any regulation of the market has to be avoided, save for

crises and the removal of malfunctions or inhibitions to full
functioning.
functioning
| Any intervention in the market is to be avoided, save to
remove causes of price distortions, so subsidies should be
abolished should be abolished, tax rates adjusted to
encourage enterprise
enterprise, tariff barriers removed along with non-non
tariff barriers or disguised restrictions.
| Any government role in the economy should be avoided, as
private enterprise
p p can usuallyy do a better jjob,, and when
governments do become involved it should be both market-
conforming, short-term and involve a minimum of
regulations
| Any collective intervention in the market should be avoided,
avoided
so labour unions must be curbed.
| International trade should be free trade with goods and
currency freely traded.
81
ALTERNATIVE SUCCESSFUL MODELS

Needless
N dl tto mention,
ti the
th developing
d l i g
countries did not benefit. Instead, two
alternatives models that were successful
were being
b i di
discussed.
d
| Social market system of Germany in place of
consensus-centred corporatism.
p
| State-assisted development, or ‘Developmental
State’ Model of Japan and East Asia, that
brought in much higher economic growth rates
than what market would have. The
‘Developmental State’ model also comes out of
Bismarckian State of Germany and ‘Meiji
‘Bismarckian’ Meiji
Restoration’ in Japan, where the State took on
role of welfare as well as promotion of rapid
economic growth.
growth 82
41
TRACK RECORD OF THE NEW RIGHT
Th W
The World
ld B
Bank
k and
d the
h IMF are part off this
hi NNew Ri
Right.
h
| In UK and USA, that has led to unemployment, reductions in

general welfare,
welfare declining manufacturing production and
mountains of debt. (Something that has begun to happen in
India).
| Other alternative models have succeeded,, such as social market
system, which
hi h is
i based
b d on consensus-centred d corporatism,
i or east
Asian experiment of state-assisted development, the latter being
particularly being cites as a great success.
| In the third world,
world post
post-1980s
1980s, the neo-classicism
neo classicism has governed
the policies of the government, which was not so immediately
after the second World War, when the newly independent third
world country governments were aware of their political-
economic social-institutional
economic, social institutional and cultural weaknesses.
weaknesses
| Increase in hunger (see Africa) through permanent damage done
to the fragile economies of the Third World. (Susan George’s
work)
83
MAX WEBER
| Weber's ideas are complex and about many

dimensions of development. He is primarily
concerned with analysis of capitalism but at
the same time sceptical of modernist
project.
p j For example,
p , the modernist
institutions have become bureaucratic. And
"bureaucratic administration means
f d
fundamentallyll domination
d i i through
h h
knowledge" wrote Weber.
84
42
| He sees th
H thatt patterns
tt off social
i l relationship
l ti hi would ld be
b
stable and that is because it is believed that these
relationships are in a legitimate order.
| That there are three types of legitimate orders and
these orders of authority are accepted. These are: a)
Traditional authority, b) legal authority and c)
charismatic authority
| According to Weber, the modem capitalism is governed
by legal authority
authority. The social institution that embodies
such legal authority is the modem bureaucracy.
| Contemporary capitalism cannot function without the
b
bureaucratic
ti organisation.
i ti He
H thinks
thi k that
th t the
th
bureaucratic authority tends to be conservative and
expansionary. In modem capitalist society, ever
greater areas off social
i l lif
life are subject
bj to llegal-rational
l i l
rules.
85
| This is the key to understanding modem capitalism.

H calls
He ll bbureaucracy a gatekeeper
t k off the
th capitalist
it li t
systems, who provide or deny opportunities to
individuals to access the benefits of the system.
| Politically, he speaks of the iron-cage of bureaucracy.
He is sceptical of bureaucracy.
| Weber also found that the formal organisations that
grew out of modernity's desire to power, are highly
bureaucratic structures. The thrust of these
organisations is towards greater calculability,
calculability
effectiveness and control. But, in this process, these
organisational issues become more important than the
substantive (important) values and ends that the
organisation can serve and are meant to serve. In fact,
the bureaucracy in these organisations subvert the
substantive values and ends it might serve in light of
the functional efficiency of the organisation for which
they are there.
86
43
| World Bank is a great example of such a bureaucracy,

argues Bruce
B Ri
Rich
h in
i his
hi book
b k titl
titled
d 'Mortgaging
'M t i ththe
Earth'. For example, World Bank might consider the
issue of staff leaking the documents more serious
organisational
i ti l matter
tt ththan th
the organisation
i ti ititself
lf
taking up projects that have horrendous, often
foreseeable, environmental and social consequences. In
f
fact, the
h World
W ld Bank
B k has
h b been quick
i k to tack
k on to the
h
prevailing development philosophies, for example,
poverty alleviation under McNamara, to global
environmental management in the recent years. But, if
there are failures on this front or if the World Bank's
intervention has led to worsening g of the situation
(which it has in many instances that have been well
recorded), then no one is accountable. But, these
themes crop p upp in the Banks' activities because these
fit well into Bank's formal logic and institutional
needs.
87
| And the Third World countries, through their bureaucracies

started borrowing from the World Bank for huge projects to
realize the "ideals of modernization", no one had heeded to Max
Weber's ggloomy y warnings.
g Most Third World leaders dreamed of
and even dream of now, of replicating Tennessee Valley
Authority, great highways and public works of American cities
and other public works of world's most powerful and economically
successful nations, argue Bruce Rich.
| A way out of the grip of this bureaucracy is emergence of a
charismatic leader,, according g to Weber. From time to time,, a
charismatic political leader is thrown up, who would be elected by
the masses, and who would correct the bureaucratic controls on
modem institutions. This is Weber's belief in individualism, that
an individual will correct the system from time to time. That
finally the values will rule over facts.
| For
o Webe
Weber,, itt iss from
o the
t e ranks
a s ofo the
t e bourgeoisie
bou geo s e that
t at the
t e leader
eade
would be thrown up and not from the working class as Marxists
argue.
88
44
CRITIQUE OF MODERNITY
| Although
Alth h modernity
d it had
h d its
it origins
i i in
i the
th 17th century,
t it
triumphed worldwide in social and economic
transformations only two centuries later, in the 20th
centur Also,
century. Also inherent in the implementation of modernist
paradigm were many contradictions.
| Though, freedom and democracy was a part of the
philosophy
hil h off modernity,
d it but,
b t that
th t was subverted
b t d from
f
within. The modernist paradigm was the building of empire
of man over things and was from the beginning rooted in
th will
the ill to
t power and d domination.
d i ti It entailed,
t il d empire
i off
men over other men and men over women, of Western
societies over all others. (Now we use the term North over
South )
South.
| The liberation of individual and society from previous
constraints left the world and society empty for new, more
t t l fforms off control.
total t l 89
CRITIQUE OF MODERNITY - CONTI
| Max W
M Weber
b found
f d th
thatt iin th
the project
j t off modernisation
d i ti and d
rationalisation, bureaucratisation has taken place. And
"bureaucratic administration means fundamentally
domination through g knowledge" g wrote Weber.
| Weber also found that the formal organisations that grew
out of modernity's desire to power, are highly bureaucratic
structures. The thrust of these organisations is towards
greater calculability, effectiveness and control. But, in this
process, these organisational issues become more
important than the substantive (important) values and
ends that the organisation can serve and are meant to
serve. In fact, the bureaucracy in these organisations
subvert the substantive values and ends it might serve in
light of the functional efficiency of the organisation for
which
hi h they
h are there.
h
90
45
CRITIQUE OF MODERNITY – CONTD.
| World
W ld B
Bankk iis a great
g t example
l off such
h a bureaucracy,
b
argues Bruce Rich in his book titled 'Mortgaging the
Earth'. For example, World Bank might consider the issue
of staff leakingg the documents more serious organisationa1
g
matter than the organisation itself taking up projects that
have horrendous, often foreseeable, environmental and
social consequences. In fact, the World Bank has been
quick to tack on to the prevailing development
philosophies, for example, poverty a11eviation under
McNamara, to globa1 environmenta1 management in the
recent yyears. But,, if there are failures on this front or if the
World Bank's intervention has led to worsening of the
situation (which it has in many instances that have been
well recorded), then no one is accountable. But, these
themes crop up in the Banks' activities because these fit
well into Bank's forma1logic and institutiona1 needs.
91

| And the Third World countries, through their bureaucracies started
borrowing from the World Bank for huge projects to realize the "ideals of
modernization",, no one had heeded to Max Weber
modernization Weber'ss gloomy warnings. Most
Third World leaders dreamed of and even dream of now, of replicating
Tennessee Valley Authority, great highways and public works of American
cities and other public works of world's most powerful and economically
successful nations, argue Bruce Rich.
| Technically large project~ have invariably led to displacement, be it in
developed world or the developing world. For example about 60000 people
were displaced for construction of 7 mile Cross Bronx Highway in New
York City in 1952. This was because of Robert Moses, a public planner in
the city
city, whose built his empire from 1930s onwards to 1960s
1960s. This project
is typica1ly a 20th century technocracy at work.
| According to Lewis Mumford, in the early 20th century, influence of Robert
Moses on the cities of America was the greatest.
| F
Foundations
d i off Moses
M Empire
E i was lackl k off political
li i l andd financial
fi i l
accountability and control through withholding of information (something
sounding familiar to us?)
| Moses empire was built through numerous autonomous development
agencies
i that
th t generated
t d their
th i own revenues.
| Robert Moses was a developer with his empire spanning over nearly half
the area of New York City at that time.
92
46

| This approach to development, Bruce Rich compares with the way
th W
the Worldld Bank
B k functions.
f ti It creates
t numerous independent
i d d t
autonomous project authorities in the developing world, for
example NTPC in India. These agencies were not often open to
normal legislative and judicial scrutiny, operated according to their
own charter and rules (mostly coming from the World Bank) and
staffed with technocrats (bureaucrats) often sympathetic, "even
beholden" (pp. 227) to the bank.
| In globalisation phase, development is being pursued through such
special institutions.
| Modernisation proceeds on the path of technological
t
transformation
f ti off nature
t andd society.
i t TTechnology
h l and
d technocracy
t h
as organising principal of a human society appear to take an
autonomous dynamics of its own.
93
| Modernisation and its application on human societies and

ecosystems is - abstraction, analysis, reconstruction and control.
(Control through bureaucracy)
| It is control of man over nature, of capital over people
(
(represented d through
h h ideology
id l off economic
i growthh over
improvement in human quality of life), of men over women, of
developed world (North) over South, of urban over rural, of core
over periphery. This analysis comes out the consciousness and
analysis
l i off those
th nott b
benefiting
fiti ffrom modernity's
d it ' projects,
j t such
h as
type of urban development, type of infrastructure development,
etc.
| Modernisation has worked through a potent combination of
rationalized bureaucracy, economic organisations (that favour
capitalism with its philosophy of neo-classical economics) and
technological organisations that are politically unaccountable.
| Nature has revolted against the gains of modernisation.
modernisation For
example, real looming threat of climate change, imbalanced food
security, rising health burdens because of wide spread use of
hazardous materials, etc.
94
47
| The local communities dependent on nature, that is the indigenous

societies
i ti dependent
d d t on ththe ecosystems
t h
have revolted.
lt d
| Environmental degradation is severe. Minimum of environmental
resources, such as water, is on the decline. Per capita water
availability is on the decline a time will come in Third World
countries when there will be nearly no drinking water. India is one
of them.
| Many small Third World Countries have devastated public
finances as they are highly indebted to the World Bank,
finances, Bank in the
process of pursuit of modem projects. Instead of economic progress,
many Third World countries are steep in debt. Instead of self-
sustained growth, these countries are upto ears in debt. Problems of
unemployment housing
unemployment, housing, human rights
rights, poverty and landlessness
are increasing.
| Global inequalities have increased. In 1960, the ratio between the
world's riche and poor countries was 20:1, which increased to 46:1
i 1980 and
in d wentt up to
t 60:1
60 1 in
i 1989.200
1989 200 hhundred
d d years ago, thi
this
ratio was 1.5: I! This is the achievement of modernization process!
| Third world countries also have devastated environment. For
example, long famine in Ethiopia, which has resurfaced this year. 95
| In any case, the modemisation did not take place in most Third World
Countries. It did not bring in scientific temper, even though many of
th Thi
the Third
dW World ld leaders,
l d immediately
i di t l after
ft their
th i iindependence
d d
embarked on large modem technocratic projects. For example, Nehru
said; "Industries are the temples of modem India". And in India, "We
have taken a Tryst with Destiny
Destiny"..
| "Long years ago, we made a tryst with destiny and now the time
comes when we shall redeem our pledge, not wholly or in full
measure,, but very y substantially.
y A moment comes,, which comes but
rarely in history, when we step out from the old to the new.
| "That future is not one of ease or resting but of incessant striving so
that we may fulfil the pledges we have so often taken and the one we
shall
h ll take
k today.
d The
Th service
i off IIndia
di means the
h service
i off the
h
millions who suffer. It means the ending of poverty and ignorance and
disease and inequality of opportunity. .. To bring freedom and
opportunity to the common man man, to the peasants and workers of
India; to fight and end poverty and ignorance and disease; to build up
a prosperous, democratic and progressive nation, and to create social,
economic and political institutions which will ensure justice and
f ll
fullness off lif
life tto every man and d woman. " 96
48

| The scientific temper did not emerge and on the contrary,
religious fundamentalism is on the rise globally,
globally more so in the
Third World.
| Poverty has not been eradicated and it is on the rise in many
parts of the world. Hunger deaths are on the increase inspite of
f d surpluses.
food l
| Improvement in quality of life of people all across the Third World
has not taken place. For example, IMRs, MMRs, are quite high.
There is no full literacy achievements. After SAP, there have been
reversals in achievements in these indicators in many African
countries. The decade of 1980s is therefore called a lost decade
from the perspective of development.
| Neo classical economics
Neo-classical economics, pursued in all developed countries
countries, (with
shades of mix ofwelfarism), and communism are both perceived as
modernist projects of control over nature, etc.
| Feminists have revolted through calling 'modernist project',
modern
d d
development
l t projects
j t as ''white
hit CCaucasian
i men llocated
t d iin
the capitalist countries of the North' dominated projects.
97
POSITIVE ACHIEVEMENTS
| Could
C ld we h
have d done without
ith t modernism?
d i ?N No.
This modernism, its economic system as
capitalism and its political system as liberal
d
democracy ((with
ith its
it li
limitations),
it ti ) is
i th
the bbeginning
i i
of much radical transformations.
| It was necessary y to move away y from agrarian
g
systems, which are very closed and irrational
systems, with mind sets based on religious and
super-natural
super natural beliefs. On more scientific than
theological basis of knowledge.
98
49
ALTERNATIVE THEORIES
99
WHAT IS DEVELOPMENT
| Neo-classical economists would say y that development

p is economic
growth. That is, per capita increase in income (Per Capita Income
-PCI)
| How is income measured?
| Wages * Workers
| Production = Sum total of all production
It is assumed that with increase in income,

| people will have more resources at their command and that they
would consume more that would lead to utility and therefore
satisfaction.
| Income will give people command over resources that will lead to
people
peop e spe
spending
d g oon basic
bas c needs,
eeds, including
c ud g education,
educat o , health
ea t and
a d
housing.
| Income will increase the self-esteem and self-respect of the people
and which will also give satisfaction 100
50
ALTERNATIVE VIEW
| Economic
E i growth th or increase
i iin per capita
it iincome does
d nott
mean increase in welfare and improvement in either
quality of life or improvement in well being or improvement
in human capabilities.
capabilities
| Improvement in capabilities women as much as of men
| Development
p has to be viewed from only y one p
perspective
p
and that is development of people and not of things. That is
development takes place only when people's development
or human development takes place.
101
OTHER ALTERNATIVE CONCEPTS/ MEASUREMENTS OF DEVELOPMENT
| Social Statistics, Social Accounting and Social Reporting - These are

statistics on social aspects of development
| L
Levell off Living,
Li i Living
Li i standards
d d and d State
S off welfare
lf Index
I d -These
Th are
statistics that represent standard and level of living enjoyed by people,
represented by various consumption related indicators.
| Quality of Life - the quality of life people enjoyed in the context of
environmental pollution, deteriorating safety and security and declining
living standards. Quality of life concept also includes psychological factors
and individual perceptions. "How do you do?"
| PQLI (Ph
(Physical
i lQ Quality
lit off Life
Lif Index)
I d ) - This
Thi iis a Q
Quality
lit off life
lif Index
I d
referring to LEB, IMR and basic literacy - primarily meant to measure
poverty of developing countries.
| Social Progress Index -Genuine
Genuine Progress Index etc. - That is only positive
parameters of development are added to the income and negative
parameters are deducted. Therefore, expenditure incurred on military and
war would be deducted. Of violence, genocide, etc. would be deducted. Of
environmental degradation would be deducted.
deducted But,
But of care,
care affection,
affection etc.
etc
would be added.
It is important
p to know what gets
g added and what does not get
g added to 102
the
income. The debate between Lester Thurow and Robert Chambers.
51
HUMAN DEVELOPMENT
| Human
u a Development
eve op e t iss the
t epprocess
ocess oof eexpansion
pa s o oof cchoices
o ces in life.
e.
i.e. HD enhances capabilities of people that enables them to lead
the life they value (and want)
| HD is not just quality of life - It is a development paradigm
(approach), a development mode. It is not a static concept, but it
is a dynamic concept that refers to a development path that
ensures human development.
| Human development is a goal as well as a paradigm. Economic
Growth does not automatically get translated into human
development It needs an enabling environment
development. environment.
| In development theory, this is a new area that is being developed
by scholars.
103
HUMAN DEVELOPMENT INDEX (HDI)

( )
| This is a measurement of the choices available to

people through improvement in their capabilities.
(HDI) - A composite index of three basic human
capabilities:
biliti
i) Capability to lead a healthy life (LEB)
ii) Capability of enjoying knowledge (adult literacy
rate and average number of years of schooling, and
iii) Access to good standard of living: per capita income
104
52
GDI/ GEM
Gender Related Development Index (GDI):

- It is the HDI adjusted for gender equity. It measures the same basic
capabilities
in the context of gender inequity
Gender Empowerment Index (GEM):

- It measures women’s empowerment in the context of the same of the
men. It
I iis a composite
i iindex
d off
1. Women’s power over economic resources (share in per capita income)

2. Access to professional opportunities and participation in economic decision
making. ( % of women in technical, professional, managerial job)
3. Access to political decision making (% of women in the national
parliament)
li t)
105
OTHER INDICES OF UNDP
Capability Poverty Measure (CPM):

- A measure of the lack of three basic capabilities, a measure of human poverty
1. % of underweight children (under 5 years)

2 % of births unattended by trained personnel
2.
3. % of females illiterate
Human Poverty Index (HPI):

- A composite index of basic deprivations.
1. % of people not expected to survive to age 40 years

2 Adult Illiteracy Rate
2.
3. Deprivation of economic provisioning
- % of people without access to safe drinking water
- % of people without access to basic health services
- % of underweight children under five
106
53
Three Rules of Promotingg Social/Human Development

p
1. Enabling development path

- employment
l intensive
i i
- equitable
- environment friendly
2. Persistent direct efforts for decades

- Kerala and Gujarat (wide gap)
- Some Saurashtra districts
3. Synergies in policies/programmes
- literacy and health
(female literacy and IMR, MMR)
- environment and health/education 107
- capital and revenue expenditure
| This concept draws heavily from a very famous saying of

Gandhi: "There is enough in this world for every persons'
need but there is not enough in this world for even one
person's greed.
| Number of alternative development 'approaches, such as
small is beautiful (E.F. Schumacher), have this Gandhian
influence.
108
54
GENDER DEVELOPMENT
| If advances in welfare (utility)

(utility), education
education, health and general quality
of life, self-esteem and self-respect of women does not take place,
then, it is not development.
| Gender Analysis y is a Bi-focal view of society.
y It is believed that:
a) The development benefits are not equally shared between men
women. Men have benefited more from the modernist approach to
development. Hence, in all development indicators, women are behind
men. This is not a biological outcome but a social construct.
b) The development burdens also are not equally shared between
men and women. Women share more burdens of mal-development
th men. F
than For example,
l in
i ti
times off di
displacement
l t or environmental
i t l
degradation, it is women who suffer more than men.
109
GENDER INEQUALITY
| Whatt unites
Wh it countries
t i across many .cultural,
lt l
Religious, Ideological, Political and Economic
divides is their Common Cause Against Equality
off Women.
W
i) Right to travel
) g too marry
ii)Right a y
iii) Right to divorce
iv) Right to property and inheritance
v)) Right
Ri ht to
t acquire
i nationality
ti lit
vi) Seek employment
110
55
COMPARING HDI WITH GDI
HDI Values
GDI Values
111
INDICATOR VALUES IN GDI
112
56
SOME STATISTICS
| Estimated 1.3 billion people live in poverty in the world and 70%
of them are women.
women
| In South Asia and Sub-Saharan Africa, the men live longer than
women (longevity measured by LEB). In rest of the world, on an
average women live longer by five years than men
average, men.
| There are more than 100 million women missing in the world.
These missing women are mainly in China (FMR 940) and India
(FMR 933).
933) InI restt off the
th world,
ld iincluding
l di S Sub-
b Saharan
S h Africa
Af i
(1020), FMR is above 1000. This is indication of killing of women
or neglect of health of women so that women die.
| O off every three
Out h illiterate
illi in
i the
h world,ld two are women.
113
SOME STATISTICS – CONTD.

| Women earn less
W l than
th men.
a) In agriculture, women earn 3/4 that of men.
b)) In Bangladesh
g women earn 42% that of men. In USA
75%, in Vietnam 91.5% and in Sri Lanka 89.8%
| There is occupational segregation. Only 14% of the total
administrative and managerial jobs in the world are held
by women.
| vii) Only 5% of the multilateral banks' rural credit
reaches women allover the world
world. In India
India, only 11 % of the
borrowers of the major banks are women.
114
57
| Term Gender is a Social Construct. Terms men

and women indicate biological differences
between two sexes.
sexes But,
But the term gender
indicates social relationship between the two.
| Gender relationship has been such that in the
social relationship between men and women,
women are systematically subordinated. (Most
people do not want to believe this).
115
Gender Relations
Politico- Social and

economic Cultural System
y
system including Ethnic
& religious
Socially
Constructed
Relationship
Women Men
116
58
GENDER RELATIONS
| Men and Women perform distinct roles in society with respect to
th
three spheres
h off interaction
i t ti
i) Production sector
ii) Reproduction sector (Social reproduction sector)
iii) Community sector
| These distinct roles are performed because of the above
mentioned framework
| Gender inequality stems from gendered division of labour in the
above three mentioned fields.
| Mental labour is more valued than physical labour
| Most important labour is valued the least
| Productive labour is more valued than reproductive labour (What
p
is reproductive labour?))
117
| Why? Because development is economic growth and hence

economic activities that bring income are more valued than
activities that are of importance for ‘making of a human being’.
| Are there economic activities that do not bringg income? Manyy in
the developing countries. For example, subsistence agriculture.
Collection of water, fodder and fuel. And so on.
| Manv of the activities carried out by women are essentially
economic in nature but are not paid for and hence not considered
economic and by that the output of these activities do not get into
the national income statistics. Women performing these activities
are not considered workers and hence are not paid for and hence
also do not receive that respect/status.
respect/status
118
59
| Secondary
S d status
t t off women or unequall gender
d
relations are because of:
i) Socialisation process
ii)Religious sanction
iii) Unequal resource allocation in development
programmes
iv) Definition of what is value because of the definition
of development itself
119
WHY WOMEN (FEMINISTS) ARE CRITICAL OF

MODERNISATION PROCESS?
| Scientific
S i tifi k knowledge
l dg b
brought
ght control
t l off man over nature.
t
But, it indeed was man's control and not control of all
human beings.
| Women have not enjoyed as much loot of the nature as men
have as women's consumption of goods and services have
been much less than that of men. See any of the indicators.
| Modernisation brought mechanisation in some areas but in
many activities that women taken up, have not benefited
out of mechanisation. Classic example is agriculture. Also,
women are engaged in labour-intensive and low paid
activities
ti iti ini the
th manufacturing
f t i sector.t
120
60
| Modernisation has brought in expansion of capitalism

capitalism, which has
subjugated the countries of the South. This has led to increase in
inequality. Wherever overall inequalities have increased gender
inequalities have increased much more.
| Whenever there is deprivation, the burden of deprivation has been
passed on to the women. And modernisation has increased
deprivations in many parts of the world, mainly through the transfer
out of natural resources from the Third World to the First World
through various mechanisms. Capital and natural resources are
transferred out, directly during the colonial period and indirectly in
g trade rules and markets.
the current era through
| Modernisation has not reduced women's double burden, of productive
sector and reproductive sector responsibility.
121
| Modernisation has segregated productive and reproductive sectors of

the economy and relegated the reproductive sector to the secondary
position
iti as thi
this sector
t d does nott produce
d national
ti l iincome b
because off
the very definition of income and hence, women, who are
predominantly found in the reproductive sector are relegated to the
secondary' position.
secondary
| It has brought bureaucratisation and women not much literate are
unable to get through the bureaucratic labyrinth for benefiting form
p
development p
programmes
g and p policies.
| Modernisation has also pitted people against the people and in this
increased conflicts women suffer the most. Rape is used as a powerful
weapon during the ethnic conflicts to humiliate the other.
| Modernisation has adversely affected environment and women who
are more directly connected to the environment are worse sufferers.
122
61
| Gender inequality starts from the household sector or the domestic sector
and gets extended to other sectors.
| Modernisation brought separation of household reproduction sector from
economic production sector and that brought in sharp division of labour
b t
between men's
' work k and
d women's' work.
k
| Women being made solely responsible for reproductive sector (social
reproductive sector) of the society, found it hard to perform these dual
tasks.
tas s. Hence
e ce tthey
ey got further
u t e aand
d farther
a t e away fromo ttheepproductive
oduct ve
sectors, ones termed as productive sectors by the capitalist economy.
| The gender inequality is not only confined to the household and family,
but is also reproduced across a range of institutions, including
international donor agencies.
agencies the state and the market
market. Institutions
ensure the production, reinforcement and reproduction of social relations
and thereby social difference and social inequality.
123
| Institutions are framework of rules for achieving certain social or

economic-goals Organisations refer to the specific structural
economic-goals.
forms that the institutions take
| In the widely accepted definition of development, "a major section
of working women of the world disappear into a 'black
black hole
hole' in
economic theory." The planning interventions therefore do not
recognise and therefore value the non-market activities of the
women, which are otherwise of economic and social relevance but
are nott iimportant
t t off GDP/GNP estimates.
ti t
| In cities, there are no interventions to support these activities of
the women. On the contrary, planning tools, such as landuse
planning make clear distinction between work place and
residence place, emphasis on pricing of basic services, and so on.
124
62
| There is hierarchy of production and which influences and then

g
legitimizes resource allocation in a hierarchy.y
| Women are underrepresented in activities at the 'tip of the
iceberg', where development efforts and resources are
concentrated; they appear in large numbers in informal sector
andd subsistence
b i activities.
i ii Th
They are pre-dominant
d i ... in
i the
h
reproduction and activities (labour) nurturing of human life, the
neglected sectors in policy domain.
| Thi skewed
This k d representation
t ti demonstrates
d t t graphically
hi ll theth
convergence of power and ideas in the field of development.
| It ensures that women are positioned within the policy debate as
unproductive 'welfare'
welfare clients
clients, and that their claims on the
national development budget. based as they are on activities and
resources which are excluded from calculations of the GNP, are
rarelyy heard in debates over budgetary
g y allocations.
125
| Development theories and practice should start

from the vantage point of the poor women in the
Third World,
World taking their viewpoint as that from
the below.
| Thus,
Thus gender planning comes in as a new
concept.
126
63
WHAT IS GENDER PLANNING?

Planning is three things:
i) Policy
P li making
ki -whichhi h is
i a process off political
liti l ddecision
i i making
ki
about allocation of resources among various activities.
ii) Programme interventions - that is, the resource allocations are
converted into programmes through which the resources are
distributed. Government has a role in the process as the resources
come from the government.
iii) Implementation - the organisation of the process of
implementation, the administration of the programme, who
participates in it and so on.
A Gender Perspective is required in each of these three

activities.
127
i) Resource allocations do not consider women's needs. For example,

resources are not easily allocated for services that benefit women,
child care services
services, battered women
women'ss homes,
homes etc
etc. Why
Why, because
welfare is not economically productive, neo-classical economist's
perspective.
ii) Programmes do not consider women's
women s needs. For example,
transportation policy. Transport routes and schedules might totally
overlook women’s needs with respect to timing, security, location of
bus-stands, street furniture, etc. Other examples of missing women
are in
i th
the h
housing
i programmes, agricultural
i lt l programmes, and d so
on.
iii) Process of implementation exclude women. Most programmes
are designed by planners and where people do not participate and
hence the processes, like we discussed about the World Bank
projects, are not transparent. If there is some local participation
than women do not p participate
p and hence their needs gget
overlooked.
128
64
FIVE TYPES OF POLICIES

As far
A f as policies
li i are concerned, d there
th can be
b five
fi
types of policies:
i) gender-blind policies
ii) gender-neutral policies
iii) gender-aware
gender aware policies
iv) gender specific policies
v)) gender redistributive p
g policies
129
FIVE APPROACHES TO GENDER PLANNING
Within gender planning also, there are five approaches

b
basedd on what
h one llooks
k at rolel off women. These
h fi
five
approaches are:
i) Welfare approach – Where women are looked at as
mothers and their welfare is considered as society’s
welfare.
ii) Anti poverty approach – It argues for
Anti-poverty
increasing the productivity of poor as high poverty
leads to women engaging themselves in highly low
productive
d ti activities.
ti iti High povertyt among g women iis a
problem of under-development
130
65
iii) Efficiency approach - Argues that women's participation

brings efficiency. For example, at household level, women's
income benefit the household as they spend the same for
household welfare, for example on children's education and not on
alcoholism as men tend to spend.
i )
iv) E it approach
Equity h - Women
W should
h ld bbe equall recipients
i i t off
benefits in a development process. In other words, women should
equally benefit from a development process in a suitable manner.
v)) Empowerment
E approach h - Argues
A for
f empowering i women for f
greater self-reliance and self-esteem.
131
EXAMPLE OF DIFFERENT APPROACHES

Example of how different approaches lead to different arguments,
in say an environmental programme.
programme
i) Welfare approach - Women are altruistic (charitable) and work
without material gains for the welfare of the family. Natural
resource management,
management which has been traditionally been
women's responsibility, in whose honour women have rose from
time to time (Chipko movement, Greenbelt movement Kenya).
Hence women should be given this responsibility.
Hence, responsibility
ii) Anti-poverty approach - Removing poverty of the women would
remove poverty of the household and hence make free access to
natural resources such as the CPRs possible.
possible This will bring
income to women.
132
66
iii) Efficiency approach - Women are honest and hence will

give 'Best for the Buck'. Women are the efficient managers of the
atu a resources
natural esou ces and
a d hence
e ce g
give
ve them
t e tthiss responsibility
espo s b ty for
o
increasing efficiency of natural resource management
programmes. Land management in subsistence fanning is
women's responsibility and hence enhance these capabilities for
efficient land management.
management
iv) Equity approach - Women's equal participation should be
there in all programmes, such as energy programmes (including
nuclear energy programme).
programme)
v) Empowerment approach - Women's participation brings them
out of the households into the public sphere that empowers them
and they start demanding their well being and respect. Women
can then put their needs as priorities in public policy. Women can
get access to and control over assets and resources.
133
| Patriarchy is a system that systematically denies women access to

assets and resources through
g religious
g and social p
practices.
Notion of economic growth enhance & this process of denial.
| Women can be empowered only through changing the gender
relations. That their development in true sense would take place
when this rigid gender division of labour and all inequalities
emanating from that disappears.
| Gender planning is a new tradition,
tradition a new goal
goal, that is to ensure
that women, through empowering themselves, achieve equity and
equality with men.
134
67
GENDER SENSITIVE PLANNING IS THAT WHICH ENSURES:
i) adequate availability and accessibility of all basic services, that

wouldld include
i l d h housing,
i water
t supplyl andd sanitation,
it ti ttransportt
ii) right to employment at adequate wages, including vending and
living in the informal sector without being displaced,
iii) clean
l environment,
i t
iv) safety and security and availability of feminist services to
address the problem of violence against women,
v) availability of child care and other care facilities so that women are
empowered to participate equally in all the urban activities,
vi) democratic polity in true sense and not just token electoral
d
democracy, and
d
vii) creation of institutions of women's empowerment at all levels,
from private to public spheres.
135
| It is now mandatory that all development

programmes and projects are analysed with a
bifocal lense and that what would be the impact
of any of these programmes and projects on
women is observed.
136
68
GANDHIAN PHILOSOPHY
| Ga d was already
Gandhi a eady practising
p act s g alternative
a te at ve deve
development
op e t model
ode in
South Africa, through his 'Tolstoy farm in South Africa. Here, he
has also participated in anti-apartheid movement, issues of equal
rights.
g
| He was called a 'practical dreamer’ by his first biographer, Rev.
Joseph Doke
| Gandhi saw that the general people were not participating in the
Freedom movement. Only the Congress party and its workers
were active in a noticeable way. He had also noticed that even the
bearings of the Congress Party workers were not in the masses.
masses
137
| He ggave a call to his followers in Congress

g Party,
y, the Congress
g Partyy
workers, to go to the rural areas and mobilise the people for participating
in the Freedom Movement. Being a practical man, he suggested that the
best entry point to mobilise people for freedom struggle was to take up
g
constructive activities in the villages.
| The youth inspired by the call of Gandhi indeed went to the rural areas
and begun constructive development activities. (This practice is there
even today. Many NGOs undertake income-generation programmes or
education programmes to begin organising a community for political
action.)
| Gandhi had realised at that ‘independence’ did not mean political
p
independence alone but also economic independence
p from the imperial
p
global economic system. For India, it meant reconstruction of the entire
society that was poverty-stricken. Independence for India meant,
independence from poverty. Thus, for India, both, political and economic
p
independence had to g go together,
g , argued
g Gandhi.
| Population was concentrated in rural areas in India and so was the
poverty. He therefore asked his followers to go to the rural areas, where
people and poverty were concentrated and work for development
activities.
activities
138
69
GANDHIAN PHILOSOPHY
| Gandhi condemned the western civilization. He believed that it
dehumanised. He believed that the machines, which were for the purpose
of easing human burden and to increase production for satisfying
numerous human wants of the modem human beings "mutilated the
working man, cancelled out his body, conscripted only his hands".
Gandhi saw that the modem civilization would mean multiplication of
wants and moral impoverishment of man. He laid out his vision of Indian
society in his work Hind Swaraj, written in 1908.
| He expressed the opinion that the western civilization was irreligious
andd it had
h d ttaken
k hold
h ld on people
l in
i E
Europe. F
For hi
him civilization
i ili ti pointed
i t d
human beings to the path of duty and observance of morality and not to
the path of increased consumption and lack of morality. Gandhi's
condemnation of western civilization and with that of the
i d
industrialisation
i li i promoted d by
b western countries
i was a reactioni to
imperialism of the west. For him industrialisation and colonialism went
hand in hand.
139
| He expressed
H d the
th opinion
i i th thatt th
the western
t
civilization was irreligious and it had taken hold
on Europe. For him civilization pointed human
b i
beings to
t the
th pathth off d
duty
t and d observance
b off
morality and not to the path of increased
consumption and lack of morality. Gandhi’s
condemnation
d i off western civilization
i ili i and d with
ih
that of the industrialization promoted by western
countries was a reaction to imperialism of the
west. For hi
him, iindustrialization
d i li i and d colonialism
l i li
went hand in hand.
140
70
ECONOMIC VISION – VILLAGE MOVEMENT
| Gandhi did not believe that economics was a natural science. He

considered
id d it as morall science,
i which
hi h hhad
d tto d
do with
ith spiritual
i it l and
d
moral being and not just the rational, utilitarian human being.
| Gandhi’s economic programme for India was revival of the village
economy He stated that the economic vision for a thickly
economy.
populated country such as India had to be different than that for
thinly populated countries such as the United States. He saw that
y way
the only y to bring
g good
g living
g to the p
people
p in rural India was
to make rural areas central piece in economic programme.
| Gandhi saw urbanization as a process that sponged on the rural
areas.
141
| He promoted the idea of 'Bread Labour', idea that he had borrowed from
Tolstoy. It means living by one's own hands. He believed that: (i) the life
of labour, that is that of the tiller and handicraftsman was only life
worth living;
wo v g; (ii)
( ) there
e e has
as too bee eq
equal
a value
va e for
o aall types
ypes oof labour
a o
(lawyer, barber, etc.) and (iii) good of individual is contained in the good
of all.
| By this, he strongly disagreed and discouraged the idea of hierarchy in
the division of labour
labour. His emphasis was to create employment for all in
the rural areas through home/hand production, which is also
decentralized production that would employ unemployed rural labour.
Small products would get absorbed in the rural economy itself and
th b increase
thereby i employment
l t as well
ll as demand
d d att th
the village
ill llevel.
l
| Gandhi was in search of practical means of alleviating India's
wretchedness and misery. Charkha and Khadi programme became the
y
symbols of this p
practical p
programme.
g He introduced spinning
p g as a basic
programme. He believed that every one had to spin, that is every one had
to be engaged in the activities of production of basic necessities. Only
then there would be real home rule or independence, he said.
142
71
| He said that the problem for India was how to employ

the hands that remained idle for about six months in a
year and part of the working day. Charkha became a
symbol of subsidiary economic activity at the village
level.
level
| After independence, Gandhians influenced the
Government of India (GOI) to set up Khadi and Village
I d t i Commission
Industries C i i (KVIC),
(KVIC) an organisation
i ti for f
promoting employment among rural weavers and
artisans. The KVIC provided grants for setting up
mainly
i l units/infrastructure
i /i f ffor h
home-based
b d ((also
l called
ll d
cottage industry) production.
143
PEACE AND NON-VIOLENCE
| Gandhi believed that any good end could not have a wrong means;
cruelty
lt and
d blood
bl d bath
b th involved
i l d in
i the
th violent
i l t means cannott
achieve fair social order and means are as important as goals.
Any struggle to be fought therefore had to be through peaceful
means in which persistence of truth (Satyagraha) was seen as a
main weapon.
| He viewed the caste-ridden Indian society as one perpetrating
violence on the lower social strata. A non-violent social order was
such that would be non-violent on the lower social strata. He
asked for a total social transformation to achieve peaceful and
non-violent society and means for such a struggle were also
promoted to be peaceful.
peaceful
144
72
TRUTH
| Gandhi considered truth as the most powerful
but also a most difficult weapon in the fight for
justice He believed that only the fearless could
justice.
use this weapon.
145
SARVODAYA
| Sarvodaya is Gandhian way to welfare economics. It means
welfare of all
all, which does not happen if the welfare of the last
strata does not take place. Sarvodaya is a comprehensive vision of
Indian society, a village level movement and building of society
from below. It is not a utilitarian approach but a moral approach.
I iincludes
It l d iindividual
di id l as wellll as collective
ll i and d encompasses all
ll
dimensions of social existence and not only economic.
| He argued that it is more important to have allegiance to the
d ti th
duties than th
the rights
i ht if Sarvodaya
S d h d to
had t b
be achieved.
hi d Thi
This
means that sacrifice is important dimension of human practice.
Fearlessness, sacrifice and truth are the three ways to achieve
Sarvodaya.
| Lastly, such a world order was non-competitive and humane,
which was based on absolute acceptance of purity of means of
achieving g noble ends and not on conflicts and exploitation.
p
146
73
ANTYODAYA
| Antyoday means the development of the person
who is last in the social and economic hierarchy.
Any development that did not reach this last
stratum of society was not development according
to Gandhi.
147
SELF-GOVERNANCE ((SWARAJ)
| Gandhi's concept of democracy was self-governance. This was democracy

off the masses and not electoral democracy as we visualise now.
| Ideally, self-government would mean no State in which every one's
opinion and interests mattered and not only of the majority and that
could be installed only through consensus and negotiations
negotiations. He said that
the democracy practiced in the world was electoral democracy, which is
the rule of the majority that coerced minority to accept the decisions of
the majority. However, till such a democracy was installed, in the
interim period,
period one could do with a democracy in which the government
was elected by the majority.
| He gave Swaraj (self-rule) as his political programme and Panchayati
Raj as programme for governance. In place of the State and its
i i i
institutions h
he canvassed
d that
h theh village
ill level
l l institutions,
i i i such
h as the
h
Panchayats would address the issues of governance.
148
74
VOLUNTEERISM
| He believed
H b li d th
thatt th
the ttrue d
democracy could
ld only
l
be built from the grassroots, through voluntary
efforts
e o sa and moral
o a a authority.
o y. Co
Community y
development activities therefore have been
always visualised as voluntary activities in India,
especially for those who come from Gandhian
ideology. This practice gave currency to the term
'voluntary organisations' whose mandate was
development activities with community support.
149
NEW EDUCATION (NAI TALIM)
| Gandhi believed that education is the basic tool for the development
off consciousness
i and
d reconstitution
tit ti off society
i t and d therefore
th f an
important tool of social change. Also, education was for livelihood and
for becoming a good person. He argued that Education was not for
bringing in a new Brahminical order. He believed that the education
in India had alienated the educated people from their society and
these people did not give back to the society what society had given
them.
| His New Education (Nai Talim) was woven around the work so that
the cost of education can be taken care by remunerative work.
Education consisted of imparting skills, along with promoting
capability to read
read, write and count
count. This he called basic education.
education He
said that basic education and bread labour would bring equality
between rural and urban areas and between different classes of
y
society.
150
75
TRUSTEESHIP
| Gandhi himself denied property for himself, but did not come out fully
against private property and capitalist accumulation
accumulation. Nor did it consider
it wrong to increase wealth through productive activities. But, instead of
holding that wealth privately, he suggested that it should be managed by
the capitalists who should consider themselves as the trustees of the
property
t createdt dbby llabour.
b IIncrease iin wealth
lth b
by the
th capitalists
it li t was to
t
be not for their own sake but for the sake of the nation.
| Similarly, he believed that the landlords were the trustees of a the land
gp
for the tilling peasants and therefore he did not emphasise
p much on land
reforms. This concept of trusteeship evolved from his deep religious
conviction that everything belonged to God and human beings could hold
property or talent only as the trustee of God.
| This principle of trusteeship was imbibed in the Trade Union movement.
movement
First such trade union was started by Gandhi in Ahmedabad in 1918 and
this was called Textile Labour Association (TLA). This was in a way a
non-violent method of conflict resolution.
151
New blood joins this earth

And q
quickly
y he's subdued
Forgive me Through constant pained disgrace
Forgive me not The young boy learns their rules
Forgive me
Forgive me not With time the child draws in
Forgive me This whipping boy done wrong
Forgive me not Deprived of all his thoughts
Forgive me The young man strugggles on and on he's known
Forgive me A vow unto his own
Why can't I forgive me? That never from this day
His will they'll take away-eay
Set sail to sea

But pulled off course
Lay beside me, tell me what they've done
By the light of golden treasure
Speak the words I want to hear, to make my demons run
The door is locked now, but it's open if you're true
How could he know
If you can understand the me,
me than I can understand the you.
you
This new dawn's light
Would change his life forever?
How can I be lost,

If I've got nowhere to go?
Search for seas of ggold
How come it's got so cold?
How can I be lost?

In remembrance I relive
So how can I blame you
When it's
it s me I can
can'tt forgive?
152
76

Development Theoriess 2008

Cargado por

Información del documento

Descripción original:

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

Development Theoriess 2008

Cargado por

Copyright:

Formatos disponibles

imagine there no heaven

WHY STUDY DEVELOPMENT THEORIES AS A

| Planning is for Change and in the modern world we talk

CHANGE VS. STABILITY

CHANGE VS. EFFECTIVE CHANGE

| Change is something that is permanent (a

AND SO THERE IS ETHICS OF CHANGE

Major development theories are informed about

| Change, Social Change is viewed with two

EVOLUTIONARY SOCIAL CHANGE PERSPECTIVE

| Very convenient argument for those arguing for a ‘laissez faire’ in

RUPTURE AS A PERSPECTIVE OF SOCIAL CHANGE

| Veryy different from evolutionary y

| Liberal-market theories – These are earlier group of theories.

y Development or progress is equated with economic growth

| The liberal-market and social-market theories

| But, the notion of development is not purely

(i) either through political action by a range of agents

ACTIONS FOR ORDERED CHANGE

i) State action to secure change – Intervention by the

ii) Spontaneous through market – Argues for

Institutions promoting this approach are the

This approach has failed to promise realisation of

iii) Political power for development – Central role

A radical version of this is Marxist version of class

RISE OF SOCIAL SCIENCE

1 Planning is an extension of Social Sciences

2 Rise of social sciences is rooted very much in the

ENLIGHTENMENT MOVEMENTS IN EUROPE

ii) Sir Francis Bacon – Early 17th century.

| He emphasises instrumental role of reason and

ENGLISH ENLIGHTENMENT - ISAAC

The Newtonian science gets tied to the rise of bourgeois

- He believes that the social contract,, that was originally

French Enlightenment was followed by French Revolution,

Same thing happened in UK and liberal democracy began with

SAINT-SIMON – THE FIRST PLANNER (1760-1825)

| Saint-Simon – a French count, named Claude Henri de

- Saint-Simon and his followers envisaged g a society y

- After his death, his followers initiated a journal, Le

ADAM SMITH (1723

| Known for economic thought,

Key ideas of Smith’s economic system are:

d) The notion of spontaneous order whereby the

Impact of Smith’s work on social sciences is that:

Smith was also father of Public Finance, which was

(ii) Tax payers should not be kept in dark about their

Smith s political economy

iv) How were these individual actions ordered (organised) so

Smith’s economics is called classical economics. From

Neo classical economists or what is called the New

iii) Politically, as liberalism offers a balanced solution

According to the New Right, this model is a

These programmes of liberalisation

Dialects is investigation of truths in philosophy. The

- Materialism ((Historical Materialism))

“In the social pproduction of their life,, men ((and women))

Religion is the superstructure

Know a person through his/her actions and not words

Marx has a materialist conception of History, where is

- Marx gave a philosophical and economic critique of the

- Marx’s critique of capitalist economic system is that in

- But, this alienated labour in the capitalist system is