IPM NDTHRD - GESTURES, FACIAL EXPRESSIONS AND EYE CONTACT (1)
P 1 Scope and meaning of DE (OUSL)
1. DEVELOPMENT ECONOMICSDEVELOPMENT ECONOMICS
Prof Upali VidanapathiranaProf Upali Vidanapathirana
Department of Social StudiesDepartment of Social Studies
The Open University of Sri LankaThe Open University of Sri Lanka
April, 2014April, 2014
2. Topics for todayTopics for today
DefinitionsDefinitions
Why ‘development economics’ is different from ‘otherWhy ‘development economics’ is different from ‘other
economics’economics’
Major attributesMajor attributes
55 Development is context specificDevelopment is context specific
66 Core valuesCore values
55 Objectives of DEObjectives of DE
3. Development EconomicsDevelopment Economics
Concerned with rapid, large scale andConcerned with rapid, large scale and
overarching improvements in levels of living foroverarching improvements in levels of living for
the majority in Asia, Africa and Latin Americathe majority in Asia, Africa and Latin America
These countries report frequent and deep-These countries report frequent and deep-
rooted problems of under-developmentrooted problems of under-development
Development is value based andDevelopment is value based and
multidimensional and hence cannot bemultidimensional and hence cannot be
effectively tackled by the traditional tools ofeffectively tackled by the traditional tools of
economicseconomics
4. Nature of DENature of DE
Traditional approach believes in theTraditional approach believes in the
mechanism -market is suprememechanism -market is supreme
All economic problems are answered byAll economic problems are answered by
the ‘invisible hand of price’ in a value freethe ‘invisible hand of price’ in a value free
mannermanner
The questions and answers are aboutThe questions and answers are about
‘what is’ and it has no room for the‘what is’ and it has no room for the
questions concerning ‘why’ and whatquestions concerning ‘why’ and what
‘should be’‘should be’
5. Is Real World Value Free ?Is Real World Value Free ?
People hold attitudes, values and perceptionsPeople hold attitudes, values and perceptions
that colour their answers to ‘what is’that colour their answers to ‘what is’
Most questions and answers are ‘value loaded’Most questions and answers are ‘value loaded’
Examples-Should students be given hostels?Examples-Should students be given hostels?
Should graduates be given jobs by the state?Should graduates be given jobs by the state?
Should the prices be controlled? These areShould the prices be controlled? These are
matters for the state-not for the marketmatters for the state-not for the market
When market fails in stopping recession andWhen market fails in stopping recession and
environmental decay state intervenes-environmental decay state intervenes-
recession package for Spain, Ireland etc.recession package for Spain, Ireland etc.
6. Development is Not Value FreeDevelopment is Not Value Free
• ‘‘D’ is not only ‘What is’ but rather ‘Why it isD’ is not only ‘What is’ but rather ‘Why it is
so’ and ‘What should be’so’ and ‘What should be’
• ‘‘D’ is reinforced or retarded by;D’ is reinforced or retarded by;
a)a)attitudes towards life, work and power,attitudes towards life, work and power,
b) system of bureaucracy, legal structure,b) system of bureaucracy, legal structure,
administrative structure and systems, norms,administrative structure and systems, norms,
c) land tenure, religion,c) land tenure, religion,
d) influence of global forcesd) influence of global forces
7. Scope of development economicsScope of development economics
Studying about developing countriesStudying about developing countries
Studying about underdevelopmentStudying about underdevelopment
Studying about diversityStudying about diversity
Studying about multi-dimensionalStudying about multi-dimensional
nature of developmentnature of development
8. Policy goals of developmentPolicy goals of development
Real income growthReal income growth
Reduction of inequalityReduction of inequality
Reducing unemploymentReducing unemployment
Reducing povertyReducing poverty
Improving std of livingImproving std of living
Changing social structuresChanging social structures
9. Metrics of Development-1Metrics of Development-1
GNP/GDP if growing faster than 5% itsGNP/GDP if growing faster than 5% its
development (1950s and 1960s)development (1950s and 1960s)
Lately it was modified with GNP per capita-Lately it was modified with GNP per capita-
population growth (GY-GP) orpopulation growth (GY-GP) or
‘‘Real per-capita’ where GDP / P was deflated byReal per-capita’ where GDP / P was deflated by
inflationinflation
This approach was known as ‘growth first’This approach was known as ‘growth first’
If growth is given a chance its benefits willIf growth is given a chance its benefits will
‘trickle down’‘trickle down’
12. Popular definitions of developmentPopular definitions of development
Changes in output and technical andChanges in output and technical and
institutional structures of economiesinstitutional structures of economies
(Kindlebeiger, 1965)(Kindlebeiger, 1965)
Upward improvement of the entireUpward improvement of the entire
social system (Myrdal, 1968)social system (Myrdal, 1968)
Reducing poverty, inequality andReducing poverty, inequality and
unemployment (Seers, 1970)unemployment (Seers, 1970)
13. Meaning of DevelopmentMeaning of Development
‘…‘…if poverty, unemployment, inequalityif poverty, unemployment, inequality
have declined from high levels thenhave declined from high levels then
undoubtedly there has been a period ofundoubtedly there has been a period of
development…(Seers)development…(Seers)
‘…‘…but if all of them have been growingbut if all of them have been growing
worse it would be strange to call the resultworse it would be strange to call the result
‘development’ even if per capita income‘development’ even if per capita income
doubled’doubled’
……Can mere growth accompanied by ‘aCan mere growth accompanied by ‘a
reduction of poverty, unemployment,reduction of poverty, unemployment,
inequality’ be called developmentinequality’ be called development……
14. CapabilitiesCapabilities
Amartya Sen identified development in terms ofAmartya Sen identified development in terms of
improvements in the capabilities and functioningsimprovements in the capabilities and functionings
Freedom of people vary due to a) personal factors likeFreedom of people vary due to a) personal factors like
ignorance b) command over commodities like lack ofignorance b) command over commodities like lack of
fundsfunds
Personal factors like mal-nutrition, poor health, lack ofPersonal factors like mal-nutrition, poor health, lack of
education makes capability deprivationeducation makes capability deprivation
Capabilities increase command over commodities orCapabilities increase command over commodities or
functionings- say educated have better chance of beingfunctionings- say educated have better chance of being
rich and one can acquire education or employment ifrich and one can acquire education or employment if
she has financial (high income) or social capitalshe has financial (high income) or social capital
(networking)(networking)
15. Definition of developmentDefinition of development
Definition is difficult owing to context specific nature ofDefinition is difficult owing to context specific nature of
the subjectthe subject
Easy to develop a common framework for differentEasy to develop a common framework for different
situationsituation
Three core values are identified in this frameworkThree core values are identified in this framework
This framework was effective during the past twoThis framework was effective during the past two
decadesdecades
It has been sufficiently flexible and adjustable to suitIt has been sufficiently flexible and adjustable to suit
time/space variationstime/space variations
16. SustenanceSustenance
Ability to meet ‘basic needs’ –food, shelter, health andAbility to meet ‘basic needs’ –food, shelter, health and
protectionprotection
This is an outcome of ‘entitlements’ having endowed’ orThis is an outcome of ‘entitlements’ having endowed’ or
having ‘command over’ endowmentshaving ‘command over’ endowments
This is called ‘deprivation’; one may be deprived ofThis is called ‘deprivation’; one may be deprived of
income, job, security (food, income, shelter, medicineincome, job, security (food, income, shelter, medicine
and clothing).and clothing).
Absence of sustenance cause ‘deprivation’-its presenceAbsence of sustenance cause ‘deprivation’-its presence
makes ‘development’makes ‘development’
Underdevelopment is capability deprivationUnderdevelopment is capability deprivation
To find self-sustenance economies must progress;To find self-sustenance economies must progress;
income growth is a necessary condition of develoincome growth is a necessary condition of develo
17. Self-esteem*Self-esteem*
‘‘Ability to stand up and say what is right and what isAbility to stand up and say what is right and what is
not right’ according to one’s consciencesnot right’ according to one’s consciences
It is the sense of ‘self-worth’ and ‘self respect’.It is the sense of ‘self-worth’ and ‘self respect’.
It may be used by others to meet their own ends.It may be used by others to meet their own ends.
Self worth is context specific; it is about acceptance,Self worth is context specific; it is about acceptance,
identity and being part of the society in which one livesidentity and being part of the society in which one lives
There are no universal values in self-worth/respectThere are no universal values in self-worth/respect
Markets or products cannot make it universal-‘Rexona’,Markets or products cannot make it universal-‘Rexona’,
‘pizza’ or ‘Mc-Donald’ can not create universal self-‘pizza’ or ‘Mc-Donald’ can not create universal self-
esteemesteem
18. Freedom*Freedom*
Sen sees ‘Development as Freedom’ (1999)Sen sees ‘Development as Freedom’ (1999)
Freedom here is about ‘freedom from servitude’ andFreedom here is about ‘freedom from servitude’ and
increasing ability to make ‘informed choices’increasing ability to make ‘informed choices’
It’s a sense of emancipation- ‘French Revolution’;It’s a sense of emancipation- ‘French Revolution’;
prevents alienation from material conditions of lifeprevents alienation from material conditions of life
Landlessness, and social servitudes arise fromLandlessness, and social servitudes arise from
cast/ethnicity/poverty- based conditionscast/ethnicity/poverty- based conditions
They deny employment/housing/cultural acceptanceThey deny employment/housing/cultural acceptance
Growth has to increase range of human choices –Growth has to increase range of human choices –
what to read, with whom to associate, what religionwhat to read, with whom to associate, what religion
to believe, which political idea to hold etc.to believe, which political idea to hold etc.
19. Objectives of Development*Objectives of Development*
Therefore development aims at;
a) increasing the availability of life
sustaining goods-food, water, shelter, cloths,
medicine at an affordable price
b) increase the level of living by providing
better education, employment, attention to
cultural and human values to raise self esteem
c) To expand the range of economic and
social choices –eliminate dependence on others
(groups/communities/countries)
