Lecture 1
1. THE CONCEPT OF DEVELOPMENT AND UNDERDEVELOPMENT
Definitions, Theories and Contemporary Perspectives
Definitions of Development
For almost every writer there is a different definition of development. It is important to first distinguish between:
Development as a state or condition-static
Development as a process or course of change- dynamic
Development is not purely an economic phenomenon but rather a multi-dimensional process involving reorganization and reorientation of entire economic and social system. Development is process of improving the quality of all human lives with three equally important aspects (Todaro). These are:
Raising peoples’ living levels, i.e. incomes and consumption, levels of food, medical services, education through relevant growth processes
Creating conditions conducive to the growth of peoples’ self-esteem through the establishment of social, political and economic systems and institutions which promote human dignity and respect
Increasing peoples’ freedom to choose by enlarging the range of their choice variables, e.g. varieties of goods and services
Alternative Interpretations of Development
Development as Economic Growth. Too often commodity output as opposed to people is emphasized-measures of growth in GNP. Note here the persistence of a dual economy where the export sector contains small number of workers but draws technology as opposed to traditional sector where most people work and is dominated by inefficient technology.
Development as Modernization. Emphasizes process of social change which is required to produce economic advancement; examines changes in social, psychological and political processes;
How to develop wealth oriented behavior and values in individuals; profit seeking rather than subsistence and self sufficiency
Shift from commodity to human approach with investment in education and skill training
Development as Distributive Justice. Views development as