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Approaches to Development

The document outlines various approaches to development, including the 'trickle down' approach that emphasizes wealth creation by the rich, the 'growth pole' approach focusing on core regions to stimulate economic growth, and the 'bottom up' or 'grassroots' approach aimed at empowering local communities. It also discusses fair trade, regional development, export-led growth, and foreign direct investment as strategies for economic improvement. Additionally, it highlights the UN Millennium Development Goals aimed at addressing global poverty and health issues.

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2 views

Approaches to Development

The document outlines various approaches to development, including the 'trickle down' approach that emphasizes wealth creation by the rich, the 'growth pole' approach focusing on core regions to stimulate economic growth, and the 'bottom up' or 'grassroots' approach aimed at empowering local communities. It also discusses fair trade, regional development, export-led growth, and foreign direct investment as strategies for economic improvement. Additionally, it highlights the UN Millennium Development Goals aimed at addressing global poverty and health issues.

Uploaded by

jamkumaryt1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Approaches to

Development
Dr K Menaka
GT/PT, CSS, GRI
Trickle Down
Approach
Top down” “trickle down” Approach Proponents of the “trickle
down” approach would argue that richer individuals and larger
companies are the driving force behind economic growth.

The wealth created by the more successful parts of the


economy and more successful people will naturally trickle
down and benefit everyone.

Therefore the country should focus on ensuring the right


environment for the rich and the larger companies to thrive.

Low taxation and lack of regulation. “Top down” approach


tends to centralise decision making and is often linked to
development through large scale “prestige” projects.
Growth Pole Approach of
development
Growth Pole Approach Development of a core
region or growth pole.

GROWTH POLE refers to the concentration of


highly innovative and technically advanced
industries that stimulate economic development
in linked businesses and industries.

This concept was first introduced by French


Economist Francois Perroux in 1950
Growth Pole Approach of
development
Leading to spread effects benefiting the country
as a whole.

Growth Pole – Could be planned or unplanned.


Development of a specific location through
agglomeration. (Special Enterprise Zones in
China) Propulsive Industry – Industries which can
stimulate growth. Ship building, Automobile, Hi
tech.
Bottom up” “Grass roots”
Development Approach
The aim is to lift people out of poverty by
helping them directly.

Helping them to help themselves. Local


involvement in the decision making process.

Identifying their needs and deciding on the most


effective solution.

Use of appropriate technology. Generally long


term aims of sustainability.
Bottom up” “Grass roots”
Development Approach
Sanitation and water supply, improved farming
through use of appropriate technology, education,
health care improvements and family planning,
development of local industries and businesses
through micro loans and the reduction in bureaucracy,
improved marketing and access to markets, land and
property rights, access to enabling technologies such
as the Internet and mobile phones.

Countless examples of this approach throughout the


world.

Watch the Millennium village documentary on Sauri in


Kenya
Fair Trade
Approach
Fair Trade an approach which joins consumers in richer
countries with producers in poorer countries and creates a fair
trading relationship. Started in the late 1980s Max Havelaar.

The basic component is producers are paid a “fair price” for


what they produce.

But also there is a long term trading agreement and rules


relating to worker conditions and environmental impact.

Coffee and cocoa have been the main products with fair trade
options available to consumers but now there are a wide
variety of fair trade products with increasing market share.

The overall share of fair trade compared to traditional trade is


tiny.
Regional development
Approach
Regional development Focus on developing the peripheral regions of the
country.

Attempting to reduce the regional disparities which develop from an


uneven development of the core and periphery.

Linked to attempting to reduce rural to urban migration, particularly to


the primate city of the core.

Often investment in improving infrastructure particularly transport and


communications to link the region more with the core.

This approach has been very popular in Europe and is a major part of the
EU budget. Particularly in regions which have suffered from industrial
decline or countries such as Ireland, Portugal and Greece.
Export led growth
development Approach
Economic growth through the production and export of products which
the country has a comparative advantage at producing.

Approach adopted by many East and South-East Asian countries


particularly successful in Taiwan where most of the enterprises were
Taiwanese not foreign owned.

There can be significant state involvement in the form of investment,


subsidies and protectionist measures.

Potential problem of dependency on key products and problems if export


markets drop. Ivory Coast – Cocoa China - GDP growth slow down
because of USA recession
Export led growth
development Approach
Foreign Direct Investment Encourage foreign companies to locate in the
country to stimulate economic growth.

The foreign companies would provide the investment the economy


needs. Policy encouraged by the World Bank.

Particularly significant in extractive industries such as mining and oil


where the initial costs are very high. Eg Nigeria oil, Bolivia silver Some
protection of domestic industries needed.

Just opening economy to foreign competition will mean even profitable


and sustainable industries will be unable to survive in the initial periods.

High levels of FDI in China’s Special Enterprise Zones.


UN Millennium Development
Goals
UN Millennium Development Goals “ The Millennium Project was
commissioned by the United Nations Secretary-General in 2002 to
develop a concrete action plan for the world to achieve the Millennium
Development Goals by 2015 and to reverse the grinding poverty,
hunger and disease affecting billions of people.” Goal 1: Eradicate
Extreme Hunger and Poverty Goal 2: Achieve Universal Primary
Education Goal 3: Promote Gender Equality and Empower Women Goal
4: Reduce Child Mortality Goal 5: Improve Maternal Health Goal 6:
Combat HIV/AIDS, Malaria and other diseases Goal 7: Ensure
Environmental Sustainability Goal 8: Develop a Global Partnership for
Development
THANK
S!
12

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