Monday, December 12, 2011

HUMAN DEVELOPMENT : Why There is a Shift From Economic Development to Human Development and How That Shift is Measured ? by Akhilesh Patel, NLSIU

1.     INTRODUCTION

Development refers to economic, social, political and cultural processes of change in human societies which seeks to satisfy the spiritual and material needs of man. Historically this development process was state centric with given primacy on physical accumulation of income or materials. Individuals in process of such kind of development were marginalized by powerful and rich community having supports and backup of western governments and institution promoting capitalist oriented development theories. Trickle down approach furthered by structural adjustment programmes of World Bank and IMF lead to the detrimental of human life. John F. Kennedy and his successors following the principles of ‘a rising tide lifts all boats’ led to sunk several smaller boats under high rise of tide. There have been four theories regarding the nexus between economic growth and social development- The first theory holds the view that social development is a product of economic growth. This theory is well known as trickledown theory that makes emphasis on economic programs and assumes that economic growth would tend to produce social development. Okun and Richardson defined economic growth as "a sustained, secular improvement in material well-being as reflected in an increasing flow of goods and services." Thus it encourages throwing resources for economic growth and privatization. The second theory says that economic growth and social development are two unrelated events - Zuvekas as champion of this approach says that economic growth can occur without social welfare development and therefore countries should limit the distribution of the domestic benefits of growth to privileged elite at the expense of widespread social welfare development. He states that without specifically targeting the poorer sections of the population for assistance in meeting basic needs, economic growth could produce an ever widening gap between the wealthy and the poor.The third theory describes that neither social development nor economic growth is a primary cause of the other, but they are inter dependent –As a proponent of this view ,  Srinivasan is of the opinion that the policies for economic growth and the policies towards basic needs development are interwoven. He suggests that too much emphasis on basic needs would, at least in the short run, hurt economic growth which, in turn, would damage future improvement in the basic needs fulfillment. The fourth theory holds the view that social development precedes economic growth - Streeten as proponent of this approach has expressed that extra income would not always be spent on items basic to the individual's welfare. He notes that some basic needs may be satisfied more effectively through public services including access to clean drinking water, schools and health services, and therefore, are not directly linked to individual income. In fact, Streeten suggests a ‘trickle-up’ effects when he states "basic needs is not primarily a welfare concept; improved education and health can make a major contribution to increased productivity[1]."

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