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Rethinking Development

Chapter 10

Rethinking Development in an Age of Crisis

Development agenda of the future is yet to unravel itself
Internal contradictions will condition future possibilities.
Consensus on shift in emphasis on how to manage future rather than simply improving on past
Associated with energy, food, climate and financial crises
However, no single understanding of how to manage development in an age of crisis
Different social interest groups envision different futures
When market fails, “business as usual” approach be intensified? Or, is it a signal to shift course?
Polanyian cycle of market versus non-market values overlays these responses

Development in Crisis

“Development “n crisis” has a double meaning:
Financial crisis involves rollback of public goods (education, welfare, health care, infrastructure, affordable housing), shrinking employment, and degraded environments.

How we understand, and measure development (what we value) is in disarray too
Commission on the Measurement of Economic Performance and Social Progress (2009):
Mandate: “more relevant indicators of social progress,” but noted “our measurement system failed us”

Measurement Problems

Development conventionally equated to rising levels of consumption and economic growth
Current metrics emphasize economic productivity.
Newer emphasis on measuring people’s well being “in the context of sustainability”
Calls for measurement of non- market services and people’s subjective experiences.
Challenging but potential pay-offs are high as it allows development policy to target local needs of population.

Non-market Values

Human Development Index, UN Report, 1990
Complemented income measures with a composite of life expectancy and literacy
Takes a holistic approach to well- being- 1947 UN Declaration of Human Rights
Well- being is a social contract between government and citizens. All are entitled to freedom and dignity.
Capabilities Approach
Privileges a diversified commitment to, and attainment of, the equal dignity of all people
Nussbaum: Recognizes such choices are not equally distributed
Addressing inequality is a prerequisite for development

Politicizing Inequality

Global wealth distribution indices suggest widening inequalities

Economic growth does not necessarily alleviate poverty

System of wealthy “receiving the bulk of the benefits of growth” has become trans- national, upending Rostovian “stages of growth” scenario

United States: standard bearer of growth, but inequality worse than in Argentina

Situation reversed: “Latin Americanization” of US experience

Polanyi: Class polarization suggests reversal of the social model of development

Decline of the middle class in US, but growth of a new middle class in the South

New Geography of Inequality

Previously, 93% of poor people in low income countries

Now, three-quarters of world’s poorest in middle income countries: BRICS, Nigeria, Pakistan and Indonesia
Two related process at work here:
Incorporation of sub- cultures rather than entire nation states into market networks.
Similar social divisions of inequalities; sub- populations excluded from integrating into the horizontal global consumer class.
Implications for development policy:
No longer about moving countries up the wealth hierarchy
Focus on poor people, not poor countries; national rather than international distribution problems

A Development Paradox

Middle class less inclined to a redistribution of wealth to help fellow lagging citizens
Have access to “largely unregulated global value chains dominated by international companies”
Less willing to support increased taxation necessary to support social services
Past 25 years, public assistance for social services has dwindled
“Social exclusion,” a discursive strategy of pathologizing the poor
Micro- credit addresses some void left by state

Case Study: The Debt Crisis in the North and the Detroit revival

Debt crisis in the North.
US cities and states heavily in debt: $2 trillion.
City administrators pay creditors at the expense of public services
High unemployment rates do not help; reduces tax base

Detroit revival: Motown turns Growtown
Drastic urban decay: high unemployment rate, reduced provision of public services
But, revitalization bought about by urban farming
Is new “stage of growth” about communities discovering how to feed themselves rather than the “world”?

Analytical and Political “Purchase” of Development

Occurrence of social exclusion on a global scale
Rising global class less invested in national civic task of reducing poverty
End of “methodological nationalism”
Development no longer a national process
Transnational relations undermine the role of state in the development process
Global commodity chain analysis suggests firms and not states are the primary drivers of international division of labor
“Rise” of China needs to be situated in the transnationalization of capital in the global development project

National Development Project Never National

Embedded within definite international relations
Part of post- colonial ordering in terms of hierarchy of political and economic relations of the mid- 20th century world via rules and institutions
Themes of political emancipation, material assistance, and military security that proliferated an unequal system of states designated as sites of development.
National development project laid the foundation for the globalization process
Northern manufacturing have migrated to strategic regions of the South
Information revolution has enabled office services to be relocated as well to the South
Globalization process restructured world order

Three- tier Structure of New World Order

Cuts across national boundaries.
Comprises of core, middle and peripheral circles.
Rich countries: 40- 30- 30; Poor countries: 20-30-50
Sub- Saharan Africa: 10-20-70 or 10-10-80
Core
20% of world population; elites; bankable
Middle
20- 30% of world population; labor in insecure employment
Peripheral
Largest circle, estimated 2.8 billion living below $2 per day;
Expendable: Excluded from global system but disproportionately bear its burdens

New Paradigm of
Development

New framework of development alter meaning and practice of development.
Standard practice of development agencies and practitioners to focus on “bottom billion” (such as direct cash transfers to the poor)
Targets subject population rather than states.
Alternates focus between economic and social remedies
Emphasizes participation

Participation:
Double-Edged Sword

Confers legitimacy to existing unequal access to resources
Development paradox reappears
Participatory methods reproduce/legitimize existing inequalities
What is the way out of this paradox?
Self-organizing democratic participation to determine social need and ecological possibility
Alternative strategies being picked up by development agencies

Case Study: Slow Food Movement

Originated in Italy in the 1980s but now global
Principles of localizing food-sheds, retaining local cuisines, and protecting “local” farming
Seeks to restore direct links between producers and consumers; encourage healthy growing and eating
Progressive social change sparked by transformation of attitudes about food and practices of eating

What is the difference between Fast and Slow Food paradigms in development terms?

New Paradigm: Contesting Economic Growth

Oxfam contests wisdom of global economic growth entails, in spite of all its human and environmental costs
Calls for new paradigm of “ecological solidarity”
Breaks the previous obsession with economic growth
Recognizes a finite planet, collective needs are met within environmental limits
Alternative measures
Gross National Happiness; qualitative benchmark of material and spiritual development
Genuine Progress Indicators; accounts for both the benefits and costs of economic growth

De-growth Economics

New concept to counter the prevailing orthodoxy that unbridled economic growth translates into development.
Comes from the French term, décroissance, which actually means a- growth.
Emphasizes a change in value system
Replace egoism with altruism, competition with cooperation, obsessive performance with leisure.
Values are systemic, so question existing system.

Phenomenon of
“Downshifting”

Concept: Take leave of the consumer treadmill and pursue a more balanced and rewarding life.
Taken hold in the North.
19 percent of the adult population in the US.
Voluntarily switched to lower paid jobs, reduced hours of work, and decided to stay at home and look after their children.
Alternative concepts are emerging, where people focus on values other than market values; on collective and individual attempts to define development.

Critiquing De-growth

Feminist Critique: May exacerbate exploitation of underpaid workers and of nature.
How does de- growth address inequality?

Voice/Participation: Are the disenfranchised sharing their views on de- growth?

Is focus on de- growth palatable, given global economic stagnation and high unemployment rate? Instead, may be, focus on zero growth model?

Overall, collective attempts to meet future needs for inhabiting a diminishing material world

Most effective way forward is to acknowledge and learn from our mistakes

Transition Town Movement

Emerged in 2000
As of 2010, over 300 official towns in UK, Ireland, Canada, the US, Australia, New Zealand, Chile and Italy
Proactive movement to collectively manage energy and climate challenged future, engaged in processes to manage “energy descent”
Emphasis on local capacity, reducing ecological footprints and increase resilience by reducing/ eliminating fossil fuel dependence and rebuild local resources via principles of permaculture

Reclaiming “Commons”

Focus of land grab in the South; largely expropriated in the North
Reclaiming and enlarging “commons” or source of shared popular livelihoods.
South Korea: New emphasis on fairness vs. ruthless competition, corruption.
West Africa: New emphasis on harmonious development
Ecuador and Bolivia: New constitution redefines development as “living well”

Transition Discourses

Emergent discourses, stem from a variety of alternative social movements
E.g.: Bio- centric emphasis on planet earth as center of all life
Traverse fields of culture, ecology, religion and spirituality, and alternative science
Invoke transition from when human are disruptive to planet to when they mutually enhance it
Reject one- world view of modern ontology and globalization, emphasize “pluriverse”

Summary

“Development” normalized in modern discourse as a comforting “buzz” word
Positive side of wealth accumulation measured, costs are unaccounted for
An emergent Sustainability Project underway, from myriad localization movements to the UN
First challenge is un-think “development”
Currently underway, but not co- ordinated
Future tension between a:
Gobalizing/ homogenizing world view vs.
“Pluriverse” world view, with its democratic and ecological implications