AMBO UNIVERSITY WOLISO

CAMPUS
School of Governance and
Law
Department of Governance and Development
Studies

Development Theories and Practices / GaDS2071/

Chapter One
Introduction to development

Set By Zenebe
A. (MA)
1
 brainstorming
question

 Why Do We Need To Study

Development?
 How we can we say some Cs are
developed/ ing?

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 1.1The concept of Development
₋ Notions related to Dev’t are Change, Evolution,
Growth, Expansion, Enlargement, Spread, Progress,
Success, transformation etc.

₋ The terms dev’t defined differently by

 1. different professions
 2. many people from the same professions
 3. dev’t in some area may not be dev’t in some
where else
 4. Different countries have their own specificities
into account in order to develop their societies.
₋ Dev’t is value-laden and subjective
complex, broad comprehensive, contested
and ambiguous term. it’s very elusive
(difficult to understand )
₋ Therefore, it is impossible to think of a
universally acceptable definition 3
 1.1The concept of Development
 however in actual sense it means
˗ moving from a lower stage to a better stage or
˗ the process of developing or being developed. or
˗ unfolding something/
˗ it’s just refers to a change that is desirable.

 But what is desirable is subjective (time,

place, person)

₋ The development needs of a starving population

must be different from those where there is
sufficient nutrition (Matowanyka, 1991).

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Evolution of Dev’t as a Discipline
1. Traditional perspective
 Dev’t is an increase in per capita income, national
income, economic welfare and positive change in
economic structure.
 All the definitions based on only quantitative aspect
 Ignores distribution of means and resources eg.
social problems as poverty, beggary, inequality and
unemployment exist in the country.

2. Modern perspective….. After 1970s

 “redistribution from growth” became a
common slogan.
 Dev’t is an improvement in quality of life of
people.
 Multidimentional

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 Cont’d
₋ Some working definitions for under the profession of GaDS are:-
1.It’s an attack on the chief evils of the world today:
malnutrition, disease, illiteracy, slums, unemployment, and
inequality, measured in terms of aggregate growth rates,
development has been a great success.(Paul P. Streeten)
2.it is process of change which is dynamic. It is the process
of societal, economic, political and cultural changes.(Uma
Kothari)
3.Development means steady progress to wards
improvement in human condition. It means reduction
eventually elimination of poverty, ignorance, and disease,
and expansion of well being for all. (Esman)
4.he writes development as “the combination of mental
(attitudinal) and social changes among the population
which decide to increase its real and global products,
cumulatively and in sustainable manner” (Perroux,
1978:65).
5.Development implies growth with justice. (equitable
distribution or redistribution of the gains made from
economic growth. )
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 Cont’d
6. Dev’t is not purely an economic
phenomenon but rather a multi-
dimensional process
₋ involving
structure,
major and
popular
radical changes in social
attitude, and national
institutions administrative structures, as well as
the acceleration of economic growth, the
reduction of inequality and the eradication of
poverty) and even customs and beliefs.
₋ involving the reorganisation and reorientation of
the entire systems.(Todaro )

₋ He argues that economic growth would

make sense only when it ensures the
reduction of inequality and the
eradication of absolute poverty.
development should satisfaction of basic
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 Cont’d
7. Dev’t is about the expansion of citizen’s
capabilities (enhancing the
freedoms we enjoy) & fulfilling their rights
as a citizen and individual. ( Sen, 1999)
 beings and doingsthe status of poor and non poor
person is determined by the capability to function
 beings and doings
 “Social Development is equality of social
opportunities”.
 Dev’t involves reducing deprivation or broadening
choice. Deprivation /Unfreedoms represents a
multidimensional view of poverty that includes
hunger, illiteracy, illness and poor health,
powerlessness, voicelessness, insecurity,
humiliation, and a lack of access to basic
infrastructure
 Economic growth cannot be sensibly treated as an
end in itself.
 8
 Cont’d

8. The purpose of development is to reduce

poverty, inequality, and unemployment.
Seers (1979) . Answering all these issues
in together
9. Coffey defined development as
"sustained(continuous) and irreversible
economic growth, which will be characterized in
quantitative terms by an increase in real income
per capita …accompanied by certain structural
and social transformation(in qualitative terms) of
a given country".

10. Despite progress in the levels of Per Capita Income, GNP, or GDP in many
developing nations, disparities in living conditions between rich and poor countries
and between the richest and poorest people within developing countries continue to
widen, and the absolute number of the poor increases overtime (Rondinelli, 1993:1)

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 1.2. Core values of Development
 Values are desired conditions in a society (e.g. health, ame, long
life, high income, etc.).
 values represent common goals sought by all individuals &
societies.
 They related to fundamental human needs that find their
expression in almost all societies and cultures at all times.
 Three core values serve as standards of development/guidelines for
understanding the inner meaning of development.
1. Sustenance: The ability to meet basic
needs or the condition of life.
 All people have certain basic needs without which life would be
impossible.
 This refers to the capacity to meet basic necessities such as
food, clothing, and shelter.
 Lack of even one of these means that a person's life is not
progressive/
 Without improving the levels of living (life sustenance)
the prospect for development non-existent.
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 Cont’d
2. Self-esteem: To be person or a goal
to be achieved.
 The quality of life is good when there is authenticity,
respect, trust, and self-value. honor, or recognition
 A person's worth as an individual cannot simply be measured by the
ownership of material things which is often given emphasis by
progressive capitalist countries such as the United States.
 Material wealth is not the only important thing but the love for
one's family, the family's reputation, and a person's dignity
and self-esteem
 Self esteem is an inherent value of human beings.
 Self-esteem features a sense of worth and self respect, of not
being used as a tool by others for their own ends.
 It is difficult to feel self-esteem without development, which includes
better material welfare.
 From this natural value of human being, development is legitimized
as a goal of gaining self-esteem.
 Absence or denial of self-respect indicates lack of development.
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 Cont’d
3. Freedom from Servitude: To be able to choose or
The capacity to grow and change
 This freedom can be seen in
 Expanded the range of choices in a society. their members
together with a minimization of external constraints in the pursuit
of some social goal we call development.
 emancipation from alienating material conditions of life and
from social servitude to nature, ignorance, other men, misery
institutions and dogmatic and harmful beliefs.
 What is good about development is not only the joy of being free
from poverty but also the availability of a wide range of choices.
 The concept of human freedom should also encompass various
components of political freedom including, but not limited to personal
security, the rule of law, freedom of expression, political participation,
and equality of opportunity, freedom to choose their religion, to vote
and to express their opinion .
 Development is expected to endow people with ability of choosing.
Development in wealth increases happiness, control over nature and
physical environment.

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 1.3 Objectives of Development

 Majority of scholars from development administration agree in that the

major elements of development objectives include: This in turn requires
the formulation of appropriate development policies.

˗ Nation-building - Nation-building is "the deliberate fashioning of an

integrated political community within the fixed geographic boundaries in
which the nation-state is the dominant political institution,

˗ Socio-economic progress
 empowerment of underprivileged populations

 achieving social justice through changing society's basic values.

˗ Overcome poverty and to increase human options.

 Ensuring well-being (the experience of good quality life) for all.

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- Livelihood Security: Livelihood can be defined as adequate stocks and flows of
food and income to meet basic needs. Security refers to assured rights, physical safety, and
reliable access to resources, food and income, and basic services.

- Capabilities: Are a means to livelihood and well-being. Capabilities refer to what

people are capable of doing and being. They are a means to livelihood and fulfillment, and
their enlargement through learning; practicing, training and education is the core to better
living and to well-being.

- Equity: Suggests that the poor, the weak, the vulnerable, and the exploited should come
first. Equity includes human rights, intergenerational and gender equity, and the reversals of
“putting the last first and the first last”, to be considered in all contexts.

- Sustainability: To be good, conditions and changes must be sustainable

economically, socially, institutionally, and environmentally.
 1.4 Growth Vs Development
 They sound similar. Yet, they are
different.
Basis Growth Development
Definition It refers to the increase in the It refers to the overall development of the
monetary growth of a nation quality of life in a nation, which includes
in a particular period. economic growth.
Span of narrower. It is a broader concept than that of
Concept economic growth.
Scope It is a uni-dimensional It is a multi-dimensional approach that
approach that deals with the looks into the income as well as the
economic growth of a nation. quality of life of a nation.
Term Short-term process Long-term process

Measure Quantitative Both quantitative and qualitative

ment
Emphasiz Emphasizes production Emphasizes equity and social
es and consumption welfare

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 Cont’d
.
Applicabe Developed economies Developing economies

Government It is an automatic process It requires intervention from the government

Support that may or may not as all the developmental policies are formed
require intervention from by the government
the government
Expected Quantitative changes Quantitative as well as qualitative changes

Term Short-term process Long-term process and sustainability

Measurem Quantitative/monetary Both quantitative and qualitative/ non-

ent indicators monetary indicators
Focuses on the increase in GDP Focuses on improving living standards
Possibility It is possible even without Not possible
dev’t
Example GDP, GNP, Real per capita HDI, per capita Income, industrial dev’t
income

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 Cont’d
.
Example GDP, GNP, Real per capita HDI, per capita Income, industrial dev’t
income
occur Can occur without Requires improvements in human
significant well-being
improvements in
living standards
achieved Can be achieved Requires investment in human
by through capital capital
accumulation
Lead Can lead to income Aims to reduce income disparities
inequality

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 1.5 Elements of
Development
The term development contains diverse and varied
elements. But, The following are the basic
elements:
 Removal of inequality and poverty

 Increase in material welfare of the people

 Increase in social well-being (education, health,

housing, etc.)
 An equitable distribution of the gains of
development among different groups of people in
a region or country
 An enhancement in technology and the capacity

to produce a wider range of goods and services in

the economy leading to a better quality of life.
 Building institutional structures which permit

participation in decision-making at all levels, 18

 1.6 Indicators/characteristics
of Dev’t and under-dev’t
 The terms "Developed", "Underdeveloped", undeveloped, "Developing",

‘’Third world Countries and "Less Developed" are often used to denote the
social and economic conditions of countries.
 Dear students, you know that some countries are considered to be more
developed than others. It is not uncommon to come across references to
the Less Developed Countries (LDC) as compared to the Developed
Countries (DCs).
 Similarly, within our own country, some regions are said to be more
developed than others. Clearly, development, therefore involves making
relative comparisons.


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 Cont’d
 Most developing countries are characterized by the
following conditions:

˗ Mass poverty-The poverty levels are very striking in the developing countries.
˗ Low levels of income and concentration of incomes in a few hands- Low levels of
income for large sections of the masses and high inequalities in the distribution of
income are very apparent in the developing countries due to the fact that assets are
unequally distributed.

˗ Poor health, nutrition, illiteracy and poor housing. The low levels of income
obviously play a central role in perpetuating these problems.

˗ Low levels of productivity and backward technology. Increased

productivity is an indication of greater efficiency. Improvement in
technology and better management and organization are necessary for this
purpose.

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 Cont’d
o High levels of unemployment and underemployment are characteristics of

developing countries. Since the level of industrialization is low and the

agricultural sector cannot absorb the entire workforce, the problem of
unemployment and underemployment continues to grow.

o Lower status of women- In underdeveloped

countries, women are much more vulnerable than their counterparts in the
developed countries. Their health and nutrition is not at satisfactory levels
for large numbers. Female illiteracy is highly widespread. Women are often
paid lower wages even though they perform the same work.

o Higher Population Growth Rates

 Crude Birth rates
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 Cont’d
o High levels of unemployment and
underemployment are characteristics of developing
countries. Since the level of industrialization is low and the agricultural
sector cannot absorb the entire workforce, the problem of unemployment
and underemployment continues to grow.

o Lower status of women- In underdeveloped

countries, women are much more vulnerable than their counterparts in the
developed countries. Their health and nutrition is not at satisfactory levels
for large numbers. Female illiteracy is highly widespread. Women are often
paid lower wages even though they perform the same work.

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 Cont’d
˗ Greater Social Fractionalization
˗ Larger Rural Populations but Rapid
Rural-to-Urban Migration
˗ Colonial Legacy and External
Dependence
◦ Institutions, Private property
◦ Personal taxation, Taxes in cash rather than
in kind
˗ Lower Levels of Industrialization and
Manufactured Exports
˗ Underdeveloped Financial and Other
markets
◦ Imperfect markets
◦ Incomplete information 23
1.7 Measures (Indicators) of
 Dev’t
Economists equate it with the capacity to produce a high
level of material output or resources in relation to size of
population.
 You may know that countries are sometimes classified as
developed, developing, or emerging.
 How is a country's development measured?
 There are a few main indicators that measure development.
 Like Gross National Product (GNP), Gross Domestic Product
(GDP), and Per Capita Income (PCI). HDI, HPI, etc

Cont’d
1. Gross Domestic Product (GDP)
 The total values of all final good & services produced
within a countries borders in a given year.
 C+G+I+NX=GDP
 GDP is s how much money a country makes from its
products over the course of a year, usually converted to
US Dollars:
 The sum of gross value added by all resident producers in the economy +
product taxes - any subsidies not included in the value of the products.
• Based on ownership not allocation
 How can help GDP / Why GDP a measure of economic
indicator
 Economic performance
Comparing GDP values of one country by different year/over time
 Standard of living
 Comparing policies
 International GDP Comparison
Cont’d
2. Gross National Product (GNP)
 GNP is the total values of all final good & services
produced by a country’s resident during a period.
• GNP is the GDP of a nation together with any
money that has been earned by investment
abroad minus the income earned by non-
nationals within the nation. Or
• GNP=GDP + Net income from asset abroad - net income paid to
foreign asset operated domestically

• Based on ownership not allocation

• More accrue than GDP
Cont’d

3. GNP per capita

 GNP per capita is calculated as GNP divided

by population; it is usually expressed in US

Dollars.
 It's a common indicator used for measuring

development, but is imperfect as the

calculation doesn’t take into account certain
forms of production, such as subsistence
production.
4. Infant mortality rate
 Infant mortality rate is the number of

infants dying before reaching one year of

age per 1,000 live births in a given year.
Cont’d

5. The Human Development Index (HDI)

˗
Highly applied by (UNDP)
˗
This is the most used index to measure
development. It takes the following three
factors into account:
1. Health. Long and Healthy Life.
2. Education. Mean years of schooling
and Expected years of schooling.
3. Standard of living. Gross national

˗ HDI=1/3(LEI*EI*II)
income per capita

˗Countries are ranked based on their score and

split into categories that suggest how well
developed they are.
Cont’d
The expected Maximum and minimum
values set between 0 and 1
Indicators Minimum maximum

Life expectancy 20 85
at birth
Expected years 0 18
of schooling
Mean years of 0 15
schooling
GNI $100 $75000
 1. life expectancy index =Actual -Minimum
Maximum- minimum
=68.8-20 =48.8 =0.751
85-20 65
2. Educational index
 Expected years of schooling=Actual -Minimum

Maximum- minimum
=12.3-0 =0.683
18-0
 Mean years of schooling=Actual -Minimum
Maximum- minimum
=6.4-0 =0.427 and education index =0.683
+0.427/2=0.555
15-0
3.GNI= Log Actual –log Minimum
log Maximum- log minimum
=log (6353)-log (100) =1.803 =0.627
log (75000)-log (100) 2.875
HDI= 3√LEI*EI*II
= 3√ 0.751 *0.555*0.627=0.64
˗ Very high development group
=HDI of 0.8 and above
˗ High development group = HDI of
O.7 to 0.799
˗ Medium development group =
HDI of 0.550 to 0.699
˗ Low development group =HDI of
less than 0.550
Cont’d

6. Literacy rate
 The rate, or percentage, of people who are
able to read is a useful indicator of the state
of education within a country.
 High female literacy rates generally
correspond with an increase in the knowledge
of contraception and a falling birth rate.
7. Life expectancy
 This simple statistic can be used as an
indicator of the:
◦ healthcare quality in a country or province
◦ level of sanitation
◦ provision of care for the elderly
Cont’d

8. Birth and death rates

 Crude Birth and Death rates (per 1000) can be used as an
overall measure of the state of healthcare and education in
a country, though these numbers do not give a full picture
of a nation’s situation.
9. Other indicators includes:
Employment Rates Gender Peacefulness
equality

Media freedoms Corruption Democracy

Civil Rights Crime/ social Suicide Rates

unrest
 1.7 Barriers of
Development
(Optional/ Not mandatory Topic)
Internal Barriers
 Inequality in income distribution
 Inefficiency of infrastructural
development
 Underdeveloped educational
system
 Inefficient natural resources
 Influence of government
 Corruption
 Market failure

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 Cont’d

External Barriers
 MNCs that controls natural
resources
 Primary vs. manufactured

Commodity exporting Countries

 Function of International

Financial Institutions. i.e. IMF

and WB
 Economic Policy of developed

nations
 The influence of Geo-political
35
1.8 Actors in development (Optional/ Not mandatory Topic)

36
 1.9 Major Issues in Dev’t
(Optional/ Not mandatory Topic)
 It must be emphasized that there
cannot be a single well defined path
towards development.
 Different countries and regions will
have their own specificities into
account in order to develop their
societies.
 This is one reason why development
has been a much debated subject.

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 1. Growth – Vs – Distribution

 One of the major outcomes of this situation

was the ‘trickle down’ theory, which stated
that if there was sufficient growth
everybody would benefit from it.

 However, growth by itself doesn’t

guarantee an improvement in the quality of
life for the vast number of people.

 For a long time it was assumed that

economic growth would be an engine that
will lead naturally towards development.
 Consequently, little or no attention was
paid to the question of distributive justice.
 2. Agricultural –Vs- Industrial Development

 If the agricultural sector doesn’t grow

there may be sharp increase in the prices
of food-grains.
 On the other hand, industrial stagnation

will mean that surplus labor from the

agricultural sector can’t be usefully
employed.
 Therefore, both agriculture and industry

will have to grow so that the pace of

development is fast enough to improve
the living conditions of the people.
3. Capital Vs Labor Intensive Technology
 Labor intensive technologies have the
advantage of being able to absorb the
surplus labor in a developing country
 Sophisticated technology, when it uses less

labor, is termed “labor displacing

technology”.
 On the other hand, an improvement in

technology can also be made without

displacing labor and also less
expensively
4. Centralization Vs Decentralization
 It is hoped that decentralization of the
development process would also lead to greater
accountability to those who are actually
involved in the decision making process.
Devolution of power is very vital for
development
 While a certain degree of centralization is
necessary to coordinate the efforts towards
development, too much of centralization in the
case of decision making powers can weaken
the process of popular participation.
 It also leads to the formulation of programs
and projects, which have limited local
relevance.
5. Urban Vs Rural Development
 The vast majority of the population in Ethiopia and other
developing countries live in rural areas.
 There is a continuing invasion of people into the
cities looking for jobs as the rural economy is not
been able to provide employment to them.
 It needs to be pointed out that the problem of poverty,
poor health and illiteracy is widespread in both
rural as well as urban areas of developing
countries.
 The problem of rural poverty and unemployment is the
root of the problem, without solving it, there cannot be
genuine development. Hence, rural development has
come to acquire critical importance.
 Sustained improvement in the quality of life in rural
areas is likely to slacken the pace of large-scale
migration of villagers to cities in search of jobs.
6. Respective roles of the State Vs the
Market
 One of the most contentious issues in

Economics has been the scope and

extent of government intervention in the
economy of the country.
 During the immediate post WWII era,

there was a near consensus among

economists, for a variety of reasons,
such as important developments in
economic theory around the idea of
‘market failure’ (which had several
dimensions) that governments have to
play major roles in the economic sphere.
Conclusion

 It is not only defining ‘development’

which is contested, the way that
development, regardless of definition
is measured is also problematic.
 Measuring ‘development’ requires

proxy measures to be agreed.

 We may conclude that development is

both a physical reality and a state of

mind in which society secured the
means for obtaining a better life.

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 Cont’d

THE END

THANKS

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