Development Theories

Development Theories Darshini Mahadevia (Course: Theories and Evolution of Planning) Semester II Faculty of Planning and Public Policy CEPT University, Ahmedabad

Why Study Development Theories as a Student of Planning?  Planning is for Change and in the modern world we talk of

planned change, through planners.  Deliberately engineered social change oriented to specific goals.  But, in development theory, there is also now a new major strand (stream of argument) that challenges the assumption of superiority of planned change in contrast to change through open political debate (negotiations of the stake holders)

2

Change vs. Stability  In history, over short period of time, one finds rapid

and continuous change  On the other hand, over long period of time, one finds long periods of stability  What is primary? Change of stability?  That depends upon one’s world view, whether it is optimistic or pessimistic, optimistic view looks at change and pessimistic view looks at ‘Good Old Days’

3

Change vs. Effective Change  Change is something that is permanent (a

statement that is a paradox)  Term effective change is value-laden

4

And so there is ethics of change  Most important ethical term associated with

discussion of change is ‘Progress’  Term ‘Progress’ has many versions.  There are three versions of term ‘Progress’ (Now even four from the perspective of the South) These are:

(i) (ii) (iii)

Eighteenth Century version Nineteenth Century version Post-Second World War version

5

Major development theories are informed about the Western ethics of ‘Progress’ as the Change indeed begun from the industrial societies of the West. Now, when the developing world is industrialising, question of ethics has become important here as well and hence this course.

6

 Broadly, there are two main positions from which

‘Progress’ is analysed

(i)Liberal-democratic – Change as evolution, in which man viewed as ‘consumer’, that is humankind is seen acting in selfish wants (desires). A fairly pessimistic position. (ii) Radical-democratic – Sees humans as doers (actors) and humankind acting in light of social goals, arguing that positive change is possible. A fairly optimistic position.

7

 Change, Social Change is viewed with two

perspectives (metaphors) (i) Continuity, that is evolutionary change – Social evolution, that is the survival of the fittest, which Darwin had stated in ‘Biological evolution’ (ii) Rupture, that is radical change

8

Evolutionary Social Change perspective  Very convenient argument for those arguing for a ‘laissez faire’ in

economics, that is those pursuing indiscriminate pursuit of wealth.  Summarized in five points (i) The object of enquiry is the whole (ii)Idea of cumulative change – that there is no sharp discontinuity (iii) Idea of endogenous change – that the change arises from within the system and not through external impetus (iv) Idea of increasing complexity – there is shift from simple forms to complex forms (v) Idea of unitary direction of change.  Liberal-democratic theories fall here.

9

Rupture as a perspective of social change  Very different from evolutionary  Predominantly Marxist – Society is inherently build of

groups that have conflicting interests and hence are in social conflict. These conflicts provide motor for change.  For example, Marxists argue that capitalist entrepreneurs destroyed the local historically outmoded social forms and created new forms of social organisation in a society.  Radical-democratic theories of change fall here.

10

Liberal-democratic theories (i) Liberal-market theories (ii) Social-market theories

11

 Liberal-market theories – These are earlier group of theories.

Within these there are three streams: (a) An early UK/UN line which is heavily influenced by economics (b) A line mixed in more sociology with economics, which is more US product (c) Neo-classical (resembling early economic theories) which emphatically asserted the priority of market in human affairs and sub-ordination of ‘state’ to market. (State is considered external intervention in market processes)    

Development or progress is equated with economic growth Amenable to technical characterisation A relationship of super and sub-ordination legitimated Development theories coming from those who are developed, through experts of the developed countries

12

 Social-market theories – Reject the above

model and sociologized economics. Progress is not just equated with economic growth but with planned, ordered, social reform.  Progress is ordered social reform  Produced by other than economists and is pragmatic, humane and plausible

13

 Radical-democrat theories – Democratic ethic and

historical materialism strategy of analysis. Marxist. Historical materialism is: society under constant change, moving from one level of material well-being to another, the move carried out through conflict of classes.  Human is considered a doer or an actor in this social change process. Process of change built around ‘objective conditions’ of change and ‘subjective forces’ of change.

14

 The liberal-market and social-market theories

together are called orthodox theories  They tend to take the whole business of development as technical or/and obvious.  Liberal-market see development as a matter of building appropriate physical, social and economic structures, largely as a matter of acquiring characteristics familiar with the experience of developed nations.  Social market see development as a business of organising decent lives for people living in the Third World, mainly disadvantaged groups among them.

15

 But, the notion of development is not purely

technical and is certainly not obvious (that is development will take place). It is an ethicopolitical notion. Hence, the process of bringing change, ‘planned change’ or ‘planned progress’ is not technical.

16

Methods of Change (i) either through political action by a range of agents (ii) or through planning intervention for ordered change

17

Actions for Ordered Change i) State action to secure change – Intervention by the State. It is the approach of agencies committed to planning in pursuit of development goal. Pursued by international agencies linked to UN, by governments of new nations. Was an influential approach during early phase of decolonisation. Approach centres around agencies of planned change.

18

ii) Spontaneous through market – Argues for spontaneous order and development generated through free market. The markets are self-regulatory (not regulated by the state) and there is mimimal rule-setting by the state. Development (economic growth) through maximization of economic, social, political and cultural benefits. Institutions promoting this approach are the international financial institutions such as the IMF, World Bank, Asian Development Bank, etc. This approach has failed to promise realisation of maximum benefits to the poor of the Third World. But, has a strong intellectual backing, as development institutions continue to be dominated by the economists. 19

iii) Political power for development – Central role is allocated to public sphere within which rational dialogue can lead to change. The institutional vehicles for change are the NGOs, charities, and social movements. In Europe, support has come from media, political activism and academia. Critics point out that this approach cannot resolve the situation when conflicts arise. A radical version of this is Marxist version of class struggle. But, that does not remain a planned change. The process to attain state power becomes a political struggle which is radical, and subsequent ordered actions are by the state agencies. 20

Rise of Social Science 1 Planning is an extension of Social Sciences - Town Planning has antecedent (ancestry) in Physical planning and greatly influenced by architects/engineers - Modern, democratic society, we use term urban and regional planning and not town planning and is seen as an extension of Social Sciences for the success of the discipline - Today, urban and regional planners work in different capacity than just town planners and hence, this overview of history of social science discipline is essential. 21

2 Rise of social sciences is rooted very much in the European experience, particularly of three streams through 17th to 19th centuries: i) English enlightenment – Hobbes and Locke ii) French enlightenment – Rousseau and Saint-Simon iii) Scottish enlightenment – Adam Smith These efforts resulted in rise of modernist paradigm (theory) of development and urban and regional planning emerges as epitome of modernist paradigm. 22

Enlightenment movements in Europe i) René Descartes – Early 17th century. A French mercenary (some one working only for money).  Descartes gets a dream. The dream says, (a) doubt everything that presents itself to mind, (b) dissect the problem into many parts as possible, (c) reconstruct the whole process through step-by-step inductive process (reasoning developed from observed examples or from empirical observations and (d) enumerate and record everything.  Descartes sets the stage for abstractions, analysis, synthesis and control.  Descartes’s vision was unitary (formed of singular units added up together), universal and absolutist (complete and final without any alternative). 23

 He said, there is only one answer to any problem and   



there is only one truth. This is very much modernist paradigm, which stated that there is only one way development can take place and there is only one definition of development. This is the beginning of scientific reasoning and rationalism. Prior to that, knowledge was controlled by theology. Science had not developed. By mid-20th century, this Cartesian vision was at the unconscious level as the fundamental assumption of a global culture of modern institutions and bureaucratic decision making. Human societies are abstracted as expanses of space awaiting planning, inputs, and infrastructure, to be arranged and rearranged according to circumstances and calculations. Cartesian vision was a very much mathematical and geometric vision of human society. 24

ii) Sir Francis Bacon – Early 17th century. Contemporary of Descartes  Emphasises use of human reason in inquisition of things, that is use of deductive logic, unlike inductive methods (empiricist method) of Descartes.  Development of logic as a discipline is attributed to Bacon.  Bacon argues that the method of understanding anything is to analyse it by breaking it into pieces, and by due process of exclusion and rejection lead to inevitable conclusion. The purpose is not to win argument with academician (like Indian philosophers have been portrayed doing it), but for commanding nature in action.  He suggests that only with the division of labour and specialisation “men will begin to know their strength, when instead of great numbers doing all the same things, one shall take charge of one thing and another of another. 25

 He emphasises instrumental role of reason and

knowledge. (Once again, in theology controlled system of knowledge – one where India is now moving to – reason has no place and the knowledge is given).  For Bacon acquisition of knowledge is for purchasing everything, including power. Bacon’s vision of modern knowledge was one of power, of domination of nature and domination over others (those lacking knowledge). (This indeed was stated by many colonialists, for example, Sir Cecil Rhodes who conquered and created a country called Rhodesia – now called Zaire – said that through his knowledge, he wanted to civilize the barbarians.)  Bacon argued that what makes some humans (men) god over others is the invention, the technology. Hence, Bacon is called prophet of technocracy.  In Bacon’s vision, the knowledge and technology are only in the hands of the few. His knowledge is equated with utility (control over nature and people) and power. 26

English Enlightenment - Isaac Newton

(1643-1727)  Defined parameters of western science. Later half of

17th century was a period of unprecedented scientific discoveries, and setting up of British Royal Society and French Academy of sciences. (This was also a period of setting up of state-sponsored institutions to promote economic development and Bank of England, first national central bank founded in 1694.)  Newton moves Aristotelian metaphysics to modern physics, the move from religious and Aristotelian reasoning about world to modern stress on attention to natural world as route to knowledge. 27

Move from - theistic to materialistic explanation of nature of human and other living creatures’ existence, - medieval scholasticism to modern rationalism and empiricism as nature of knowledge - abstract theoretical reflection to the use of experimental method of generating knowledge, and - contemplative acquiescence (acceptance) to generating knowledge to a notion that effective action flows from the deployment of practical reasoning. The Newtonian science gets tied to the rise of bourgeois (middle-class) mercantile (commercial) capitalism. The new rising bourgeoisie needed natural science against the church-led feudal status quo. The French Enlightenment shrugged off religion completely from public sphere. 28

French Enlightenment  French Enlightenment produced a series of thinkers who were

committed to political change in France and they saw themselves as in alliance with the rising bourgeoisie in France.

Rousseau (1712-78) is one known face of French Enlightenment. - Rousseau affirmed general rationalism and determinism. (Determinism is theory that actions are determined by forces independent of will, that is actions are a result of objective conditions and not subjective will). - He argued that human freedom depended on clear understanding of the laws of nature and society. And any deviation form these laws would have negative impact on the individual. -

He looks for an ideal moral/social order.

29

He believes that the social contract, that was originally designed to protect members has become twisted into inegalitarian forms. He argues for a social reform for the citizenship in republican democratic politics. (Republic is where the supreme power is held by people or their representatives). Notion of equality brought. - Rousseau is considered the theorist of the French Revolution. -

French Enlightenment was followed by French Revolution, which incidentally was very bloody. There was time in Europe when people who considered themselves as democrats were viewed with someone who had blood on their hands as a consequence of French Revolution. It gave way to Napoleon and through who bourgeoisie came to power and there was a gradual shift to industrial liberal democracy through the nineteenth century. Same thing happened in UK and liberal democracy began with the beginning of the industrial societies. In USA, with an open continent, economic growth and liberal democracy went straight into practice. 30

Saint-Simon – the first planner (1760-1825)  Saint-Simon – a French count, named Claude Henri de

-

Saint-Simon. Mission to work for the improvement of humankind. Material, industrial production, and technology would be the means to accomplish this improvement, and for him, these three words became synonymous. This meant total reorganisation of society. Saint-Simon was truly the modernization project. Like Descartes and Bacon, who displayed desire to control nature, Saint-Simon, believed in it and not only that he did not find anything wrong with it. He declared “desire to dominate which is innate in all men has ceased to be pernicious, or atleast, we can foresee an epoch when it will not be harmful any longer, but will become useful”. 31

- Saint-Simon and his followers envisaged a society reorganised to channel human aggression into massive development projects and incessant industrial growth. They envisaged government as applied economics, and politics to be replaced by technocratic, instrumental reason, by science of production. - Key to this transformation was to be the organisation of all material activity in the society through a unitary and directing bank, which would be depository of all riches, total fund of production. This bank would oversee, credit institutions that would be responsive to localised production needs. - He can be called the first development planner. He travelled to USA to participate in American Revolutionary War in 1783. Then he went to Mexico to unsuccessfully convince the Spanish Viceroy to invest in plan to construct a canal across Isthmus of Panama. - He proposed European unification. 32

- After his death, his followers initiated a journal, Le Globe, which was read over whole of Europe. - Saint-Simon had a vision of creating a ‘Supreme Council of Newton’, in which 21 men of science and artists would govern the world and assume the moral authority, which was at that time was with the Church. Saint-Simonians, too floated a vision, through Le Globe, to have economic and political union of Europe and Far East, linked together by a system of railroads and canals and to be financed by new industrial development banks. (Does this sound familiar?) - Many Saint-Simonians were engineers, graduates of École Politechnique in Paris, as we as chemists, geologists and financiers. In history of European development, particularly with respect to railroads and banking, their influence was immense. - Saint-Simon unleashed a technocratic utopia, (technocratic faith or what one now calls modernisation ideals). 33

- But, they also had realised that in fulfilling these ideals, private property and inheritance laws came in the way. Thus, Le Globe invented the new philosophy ‘socialism’ in 1832. And the Le Globe took a turn towards socialist principles, mainly based on the ideology of abolition of private property. (Remember that the French enlightenment movement considered owning of private property as a natural law, which was getting challenged somewhat later in France, through the ideology of SiantSimonians. - Tremendous influence of Saint-Simonians is found in the leaders of the Third world, after the independence of these countries from European colonial rules. (Which we will see later.)

34

Adam Smith (1723-90)  Known for economic thought, called classical

economics  He affirmed Newtonian method of proceeding from first principles to reconstruct the complexity of the observed world.

35

Key ideas of Smith’s economic system are: a) Division of labour, where specialization in production coupled with technical innovation allows vastly increased production and economic growth. b) The notion of market, where products are offered to consumer and which acts as an institutional structure where the buyers and sellers meet and agreements on price of land (through rent), labour (through wages) and capital (through profit) give signal to all parts of the economic system of how the future is to be rationally ordered. c) The postulate of economic rationality, the ideas that the buyers and sellers are rational agents (actors) who know their wants.

36

d) The notion of spontaneous order whereby the pursuit of individual satisfactions generates via the mechanism of the invisible hand optimal societal benefit. The invisible hand is the social structure. e) The idea of economic progress over time as the market freed of mercantilist restriction worked to secure wealth of the nation. Smith’s work pre-dates industrial revolution and does not anticipate industrial society.

37

Impact of Smith’s work on social sciences is that: a)The sphere of market can be investigated naturalistically because it is the realm of economic causes and effects b)The technical knowledge of economic science will enable actors to order their activities better. c) His notion of rational economic man is still used in economics as an ideal type whereby economic activity can be analysed.

38

i) ii)

Adam Smith’s theory articulates the interests of the rising industrial capitalists. They were attracted to the following arguments of Smith: The free pursuit of private gain can act to raise the levels of living of the entire community. How individuals in a community can be pursued to take up activities that would benefit both the individuals as well as the whole community. With regards to wages of the workers, he says that the wages should be natural wages. Natural wage was a rate that just allowed the workers to survive and reproduce. If wages fell below subsistence levels than the workers would die and there would be fewer workers whose wages would then have to increase and by that wage rates would increase. If more wages then improvement in living standards and more workers (either by more of their children surviving as he said or more becoming workers), that would bring down the wage. 39

Smith was also father of Public Finance, which was then picked up by Pigou. Smith did say that there was role of government. He said how the government could raise its revenues. That was done to generate high economic growth rate. That was to be done through taxation. He laid down four maxims/ rules for taxing the public: (i) Taxes should be proportional, every one should pay the same proportion of their income as taxes (unlike today as many of the taxes are progressive) (when Smith was writing, most taxes were regressive and a proportional tax would have reduced the tax burden on the low income families)

40

(ii) Tax payers should not be kept in dark about their taxes, they should know in advance how much they have to pay and that the tax laws should not be changed radically from year to year. (iii) Taxes should be levied at a time and in a manner that is most convenient for people to pay. Eg. Current practice of levying capital gains tax when it realised and not when it is accrued is best example of this maxim. (iv) Best tax was the one that was least expensive to collect. 41

Smith’s political economy i) There is increasing interdependence of people within a society as the production system advances. ii) Wealth was derived from creative human labour working on available natural materials in order to produce useful objects. (Labour theory of value subsequently developed by Marx). The value of goods traded in the market place derived from the labour embodied in them. iii) The key to increase in wealth of nations is the rise in labour productivity associated with the increasing division of labour. As the tasks of production are broken into specialist parts on the basis of advances in productive techniques and machinery then both the overall output of the economy increases and the interdependence of the various elements of the economy increases. 42

iv) How were these individual actions ordered (organised) so that there was no anarchy and the overall harmony was maintained? That was through the market place, through the rewards of land, labour and capital. v) How are the prices of each of the factor of production, land, labour and capital determined? Aruges Smith, through what is the social circumstance of each of the actor in concerned, the labour, the capitalist and the landowner. Smith is dividing the population into different classes and analysing their position in the overall economy. (This class analysis, Marx takes forward to give his analysis of society and social change.) Orthodox economists look at individual behaviour and not classes. Smith’s economics is called classical economics. From there the term neo-classical comes, one who pick up the market part of Adam Smith’s theory and not the political economy part. (The classical economics grapple with the grasping of structural dynamics underlying surface market phenomenon). 43

Neo-classical economists or what is called the New Right emerges from the Adam Smith’s theory of free market. This is a misleading treatment of Adam Smith. They make an overarching claim that the free markets maximize human welfare. They argue that: i) Economically, free markets act efficiently to distribute knowledge and resources around the economic system and that leads to maximization of material welfare (The current regime of IPRs do not efficiently distribute knowledge) ii) Socially, as action and responsibility for action resides with the person (individual), then the liberal, individualistic social system ensure that the moral worth is maximised. 44

iii)

iv)

Politically, as liberalism offers a balanced solution to problems of deploying, distributing and controlling power then liberal polities ensure that political freedom is maximised. As the whole package is grounded in genuine positive scientific knowledge then in such a system there would be effective deployment of positive knowledge. Free market comprises of atomistic individuals who know their own individually arising needs and wants and who make contracts with other individuals through the marketplace to satisfy their needs and wants. The market is a neutral mechanism for transmitting information about needs and wants and goods that might satisfy them. 45

According to the New Right, this model is a satisfactionmaximising asocial mechanism in which: a) There is legally guaranteed private ownership of means of production, b) There is pervasive perfect completion amongst the suppliers who operate in complex division of labour. Perfect market is where there is abundance of suppliers and consumers, there is perfect information of buyers and sellers and commodities and there is no monopoly. c) The suppliers are aiming to meet the demands of sovereign (independent) consumers d) Everything is ordered through the market.

46

Track record of the New Right. The World Bank and the IMF are part of this New Right. i) In UK and USA, that has led to unemployment, reductions in general welfare, declining manufacturing production and mountains of debt. (Something that has begun to happen in India). ii) Other alternative models have succeeded, such as social market system, which is based on consensus-centred corporatism, or east Asian experiment of state-assisted development, the latter being particularly being cites as a great success. iii) In the third world, post-1980s, the neo-classicism has governed the policies of the government, which was not so immediately after the second World War, when the newly independent third world country governments were aware of their political-economic, socialinstitutional and cultural weaknesses. iv) Increase in hunger (see Africa) through permanent damage done to the fragile economies of the Third World. (Susan George’s work) These programmes of liberalisation, have usually required parallel programmed of political repression. (In India, it is accompanied by communalism, a method through which political freedom get curtailed, of the minorities directly and of the majority through shrinking of political space.)

47

Karl Marx - Dialectics of Historical Change Dialects is investigation of truths in philosophy. The dialectal method assumes that everything is under constant change and only thing that is the final truth or universal or permanent is the constant change. (This sounds paradoxical). And hence, there is nothing that is given. In contrast, there is opposing view in philosophy that says that there are certain truths that are permanent (constant) and which do not change and one of that is ‘God’. ‘Dialectics of Nature’ written by Fredrick Engels, talks about this constant process of change in the daily processes of nature. At the end of a process of change, a thing transforms itself into its opposite. (Day becomes night, hot becomes cold, and so on) 48

- Materialism (Historical Materialism) Materialism as a science argues that there is material basis for everything. That is, the people make their lives in their routine productive activity. This productive activity is taken to be the central business of human social life and around it more abstract concerns, such as law, religion, art, etc. cluster.

49

“In the social production of their life, men (and women) enter into definite relations that are indispensable and independent of their will. relations of production which correspond to a definite state of the development of their material productive forces. The sum total of these relations of production constitutes the economic structures of society, the real foundation, on which rise a legal and political superstructure and to which correspond definite forms of social consciousness. The mode of production of material life conditions the social, political and intellectual life processes in general. It is not the consciousness of men that determines their being, on the contrary, their social being that determines their consciousness” (In preface to A Contribution to the Critique of Political Economy in 1859) by Karl Marx). 50

Religion is the superstructure, that he calls is opium of the masses. Know a person through his/her actions and not words as the true identity is in the material being (material actions) and not in consciousness. Marx has a materialist conception of History, where is makes human production to analysis of human life. The history is interpreted through physical evidences found and not from the epical works written by saints, etc. He argues that human beings make their own patterns of life. (A book called Man’s Worldly Goods by David Liberhan that is the materialist interpretation of history). This materialist thsis of history is not widely and routinely accepted as a basis of social science except the religious fundamentalists of all hue, Hindu, Muslim, Christian, etc.) 51

- Marx gave a philosophical and economic critique of the capitalist economic system, which was the economic system of his time. The new industrial economic system was based on capitalism. He uses his materialist philosophy to argue out that capitalism is not the final economic system and it was not given. It is bound to change and move towards socialism. (Remember, socialism as a philosophy had come into being in France with the work of Rousseau and then Saint-Simon followers).

52

- Marx’s critique of capitalist economic system is that in this system, the labour becomes a routine factor of production and the worker’s labour is controlled by the others. Because of the division of labour, work specialization, routinization of work, and the external control of labour, the worker gets alienated from the product of his labour (that is alienated from the product he makes). This leads to destruction of human creativity. And hence, worker becomes an element in the capitalist production system. And hence, the labour goes to work for wages and not because he/she identifies with this work. This alienation of worker from the work is the essence of capitalist system of production. Also human beings are alienated from their ‘species being’ as capitalist social relations degrade the collective human creation of self and society. Thus, there is an overall alienation that takes place in the system.

53

- But, this alienated labour in the capitalist system is not voluntary, but in a sense is forced. (This alienation process, in the current world is addressed by law and order machinery. In the earlier forms of society, it was the identity of individuals with the production system and by that with each other, that kept society in stability. What we now call social controls.) But, this alienation also frees the labour from societal controls. The labour becomes a free labour, not tied to land or any asset. Labour becomes a proletariat (those earning from wages by selling their labour). Proletariat having no other asset but their own labour power to sell. - According to Marx, the production system in capitalism is social, that is through social division of labour, (no one individual produces any single commodity or product), but the value produced through labour is appropriated (taken by force) by individuals, that is by capitalists, the owners of capital. 54

Marx’s economic analysis, that is analysis of economic dynamic of capitalism. The main features are: i) Capitalism is historically novel because in it the production is oriented not to the satisfaction of social or human needs but to the requirements of the market exchange of commodities. ii) Each commodity has a use value (the function of commodity) and exchange value (the value of commodity in market). iii) Value is created by expenditure of labour (like Adam Smith). iv)In a day, the labourer sells his labour (calls labour power) at the market price produces a surplus over his replacement needs. v) A labour (worker) sells his power to labour and hence it is the labour power that has value and not the worker who has value. 55

vi)A labourer (worker) gets the price for his labour power that is just enough to provide the labourer’s conditions of existence (food, housing, basic welfare, and so on). vii) The labourer gets the wages that are much lower than the value created by the labour power of that labourer. That is, the labourer creates value, over and above value required to subsist that labour. viii) The additional value created by the labour in this process is called surplus value of labour and that is the basis of profit in a market place, which is earned by the capitalist, one who deploys capital in the production system. ix)The capitalist system therefore is inherently exploitative. Ratio between labour necessary to reproduce labour (called necessary labour) and surplus labour, is called the rate of exploitation. 56

x) Capitalist system is competitive and thus technically innovative. In the process, the system reaches a stage where the technical innovations lead to more and more deployment of capital and becomes capital-intensive. The labour is replaced by capital. On one hand, the addition of surplus value of labour decreases by this and hence the profits fall. On the other hand, the labour are squeezed and their wages (value given to the labour) fall due to surplus labour in the market. It leads to reduction in purchasing power of commodities by the labour. This leads to a situation of overproduction in the capitalist system. This leads to fall in wages, closure of factories, production decline and thus depression. The great depression of the thirties is the result of the over production in the capitalist system. 57

This overproduction leads to capitalist seeking newer and newer market (which the colonialists did through capture of the third world). By the First World War, the globe was divided by the colonialists in their colonies. Germany was the new entrant in the capitalist system by early 20th century. And so was Japan. To be able to have a share of the global cake of colonial countries, Germany wages the Second World War, under the leadership of Hitler. Today’s system is also a crises of global capitalism. There is overproduction of various goods and services, including food, but, there are no buyers. People do not have adequate wages to buy even food, which leads to hunger deaths in many parts of the world. Today’s technology has reached a stage that it can produce everything in abundance, but, the economic system is such that there are no adequate buyers of these goods. (Hence, the system of privatisation in services, e.g. of water supply, sanitation, etc. in cities, would lead to situation where there would be no buyers of these goods) 58

xi) The crises in capitalism on the other hand causes misery for the proletariat, which fosters class consciousness in them and which would ultimately lead them to organising to over throw capitalism. xii) The basic contradiction in the capitalist system is, as mentioned, the production is social but, the profits and property ownership is private. Through organisation, the labour would overthrow such a system and remove this contradiction, and create a system where there is no private ownership of property. 59

Marxian view of state, party and revolution Each dominant economic class of any system, has the state through its law and machinery, working in the benefit of the dominant economic class. And the ideology or the theory of that dominant economic class becomes the ideology or the theory of the state. This is why, in the pre-industrial periods, the feudal classes and then the mercantile classes had theories to support their dominance. Which, Adam Smith overturned and whose theory the rising industrial class made their own. Thus, executive of the modern state is a committee for managing the common affairs of the whole bourgeoisie. “State is a machine in the hands of the few wealthy to oppress the majority in the process of appropriation (taking by force) the benefits produced by the majority.” Lenin, the father Russian Bolshevik Revolution gave this theory of state and used the same in establishing proletarian state in Russia. It is argued that the overthrowing of the bourgeois state is the only way to establish a state of the proletariat. And this overthrowing of bourgeois state would be necessarily violent. (Overthrowing of feudal state in France was through French Revolution, that established the power of industrial capital over the feudal lords). The theory of state gets the name Marxism-Leninism, implemented in a new way in China by Mao-tse-tung. 60

Impact of Marxism i) This Marxist approach to analyse a societal system is something that is new and has captured the social scientists. That is, looking at the system as a whole and analysing the society from the perspective of class analysis. The system of exploitation as inherent in the capitalist system is the beginning of the economic analysis of a society. ii) Role of state was what has gripped the planners. Only in socialist countries, the cities are planned as the way planners have planned. iii) The middle path between socialist state and capitalist state is the welfare state where the state acts as a welfare distributing mechanism, thereby capitalist keeping the control of state and thereby over the private property whereas ensuring that the labour are not pushed to such a stage of penury that they organise on class lines to over throw the state. iv) Marx’s work encompasses a body of social scientific ideas and related subsequent social movements. Social movements often do not take place spontaneously. Leaders, that is, subjective forces are required for any social movement to take place. An organisation is required to carry out social movement. The leaders and cadres in such organisation come with this new understanding of the social reality, the reality of exploitation, that leads to a social movement. 61

v) Marxism has been a very powerful ideology that has attracted the oppressed, the Third World Countries (all national liberation struggles in the third world were led by leaders influenced by Marxist ideology of socialism and communism), the labour movements, and even women’s movement. Within each movement, women’s movement, environmental movement, which has led to changes in development paradigm globally, there is a very strong presence of Marxists. vi) Academics, throughout the world, especially in Europe and the Third World, have been influenced by these ideas. A stream of social scientists, called the structuralists emerge from the Marxist school of thought. vii)Theories of imperialism ‘as highest stage of capitalism’ were mounted by the Marxists. It is from this understanding, theories of ‘finance capital’ and current global economic system comes. From here emerges the core-periphery theories in global development. viii) Theories for analysing cities, the primate cities, the global cities, settlement hierarchy, and city planning efforts, are all Marxist legacy (much as we may not like to acknowledge it). 62

David Ricardo (1772-1823) -

Theory of Comparative and Absolute Advantage Theory of Differential Rent 1. Smith said, trade occurs when there is absolute advantage. 2. Ricardo’s contribution is about comparative advantage and he said that trade will occur even if there is comparative advantage and not absolute advantage. 63

US 64

 Japanese workers are more efficient at

producing cars. US workers are less efficient in producing car and producing rice. But, US workers are relatively less inefficient in producing rice.  US and Japan will benefit from specializing in what they are relatively better at producing and then trading with each other.

65

Differential Rent Theory i) Most productive land always brought first into use. E.g. Land A of 1 hectare produces 100 tons of wheat. When next best (B) is brought into use, which produces 75 tons/hectare of wheat then the value of Land A will be 25 tons worth of wheat. When land C is brought into use, its productivity being 60 tons/ha, the value of land A will be 40 tons and of B will be 15 tons. And it goes on. More the land brought into use, higher will be the value of A In urban land, the most productive land is the most accessible, with best facilities, etc. When next best land is brought into use then, the price of best land goes up. With city expansion, price of best-located lands go up. 66

Arthur Cecil Pigou (1877-1959) Welfare Economics & Concept of Public Goods  For some goods, all production costs are borne by the consumer via  

 

the price of the good For some goods, part of the costs of the goods is passed on to the society in the form of social costs. E.g. pollution. If that is possible, then firm may produce too many goods that would create pollution, which will increase the pollution. Firms may use old technology so that pollution continues. There is no way the firm can be made to change the technology. These are called negative externalities There are goods whose production can exceed the benefits that the consumer gets. E.g. Police, fire protection, national defence, health care spending, education spending. If an individual buys a medicine for cold, to remedy his/her cold, the individual benefits. But, this person’s taking of medicine stops infecting others, then there are social benefits of private benefits. 67

 Divergence between social costs and private costs are called  

   

‘externalities’, ‘spill-over effects’ and ‘third-party effects’. Divergence between private and social costs might justify government intervention in the market place. When there are large positive externalities, people gain whether they pay for it or not. This ability to obtain benefits without paying for it is called ‘free rider problem’. If I do not pay, it will get done in any case attitude. If no one pays but everyone gains then there is loss to every one in the long run. To overcome this, government must tax everyone so that such public goods are provided by the government. In case of privately provided goods, if there are negative externalities, that good is taxed. If there are positive externalities then that good gets subsidy. Costs of externalities have to be internalised in the cost of production of goods. Sometimes, non-economic measures, such as legal measures are adopted for negative externalities

68

John Maynard Keynes (1883 – 1946) Called the practical saviour of capitalism, proposer of short-run solutions to economic problems. Inflation  Warned of practical problems of inflation. Said that central government must intervene in the issues of inflation by controlling money supply. Some economists opposed it saying that inflation will take care of itself in the long run. Keynes said: “In the long run we all will die”.  Keynes said that short-run interventions are necessary in the economy and these interventions have to be by the government. Some economists have criticised him for thinking about short-run solutions. Keynes believed that it is better to solve the problems now. 69

Unemployment  If there was more demand, for goods, then, economies would prosper, businesses would expand, and hire more workers (create demand for more workers) and unemployment would cease. If demand is low, the firms would be forced to cut back on production and then on hiring and there would be lay-offs and unemployment and then depression.  Great depression of 1920 to 1930s in US was handled by Keynes  Keynes asked for comprehensive socialisation of investment decisions, which a government take through the central bank through interest rate policies, high interest rate will reduce investment and by that production would decline and vice versa. 70

 Some thought that Keynes was asking for total control of

government over business investment decisions. What Keynes was asking for is government spending policies to stabilise aggregate level of investment in the economy.  Keynes’s contribution is important for the macro economy.  Way out of depression is to create more of housing, more schools, more hospitals, more roads, etc. When private investments in these was low, government must invest. If government does not have money then government must borrow (and run budget deficit) and engage in public investments in construction.  When business investments were high, government must cut-back spending and borrowing.

71

Gunnar Myrdal (1898-1987)  Considered the main architect of Swedish Welfare State  Myrdal convinced the then Finance Minister of Public Works and to

run budget deficits in order to reduce unemployment  Theory of Cumulative Causation as an alternate to Equilibrium Analysis  Introduced Ex-Ante and Ex post distinction in economic analysis. ExAnte or expected is before hand; before the event analysis that gives estimations and forecasting. Ex-post is after the fact, analysis. Ex Ante gives estimates of expected outcomes and Ex post gives measures of the actual outcome.  Theory of Cumulative Causation – involves a positive or negative feedback involving two or more variable. It can be contrasted with unidirectional causal change, in which, A causes change in B, but B has no further impact on A; the change stops at B. The system reaches new equilibrium with changed values of variables A and B. 72

 Cumulative Causation means that variables A and B impact each

other in a process of change. Variable A impacts B and Variable B in turn impacts A and both reach a new level. The system is under constant change and there is no equilibrium at any point.  When A and B both increase, they are in virtuous cycle of positive feedback loop; when A and B both decline then we have vicious cycle or negative feedback loop. He used this idea to explain poverty and race relations.  He showed that how entire American society suffered from low socio economic situation of the Black Americans, now called African Americans. He said, discrimination breeds discrimination. This analysis showed that this situation can be remedied in one of the many ways and improvement in any one area would initiate the virtuous cycle of improvement. But, where to start? He looked to American institutions to break into this vicious cycle of discrimination against the blacks. Measures he proposed:

73

1.

2. 3. 4.

5.

Organisations such as churches, schools, trade unions and the government to play an important role in improving the socio-economic conditions of the blacks. Expansion of the role of the Federal government in the areas of education, housing and income security. Laws making it easier for the blacks to vote. Advocated migration from the South to the industrial North, the latter having more jobs in the new economic sector than the latter that provided jobs on the farm land. Use of fiscal policy to achieve full employment (like Keynes)

74

1. 2. 3. 4.

Myrdal used this theory to explain poverty in South Asia (Asian Drama, 1968). A way out was suggested: To spend more on education To spend more on sanitation and, by providing clean water and developing other public amenities. Income support programmes to address the problem of income inequality. While most economists argued that there was trade-off between equality and growth, Myrdal held that there was no such trade-off and that greater equality would lead to more rapid growth (A good example of that is China, in the hind-sight – not stated by Mrydal). He said that inequality leads to slower growth because of physical and psychological consequences of poverty, as the poor are unable to utilise their talents. A welfare state that redistributes income would lead to higher demand and hence more rapid economic growth. Myrdal criticised the social scientists in general and economists in particular for not being able to speak and write in the language that the ordinary person can understand. He also criticised the economists’ attempt to hide their value or normative assumptions behind the façade of objectivity. He was not opposed to economists making value judgements but was opposed to their refusal to accept that. 75

Milton Friedman (1912- 2006) Two main themes of his work (i) Money matters – Because only changes in money supply can affect economic activity and inflation results from too much money in the economy. (ii) Freedom matters – Because economies run better when the governments do not attempt to control prices, exchange rates or entry into professions.  Known for his work against Keynsianism. He argued against the use of stabilisation policies to control either inflation or unemployment. He said that the fiscal policy would not work and a monetary policy would worsen the business cycle and lead to greater inflation.  Friedman has opposed all forms of government intervention in an economy, as that is viewed as curtailment of political freedom. He argued that capitalism is the best economic system because it promotes political freedom and market can help offset political power. 76

 He opposed all government programmes that came in

the way of individual decision-making. Such as: (i) Wage and Price Controls (ii) Social security (because it breaks down family bonds and is actually a transfer from the less well-off to the wealthy, the latter tend to live longer than the former. (iii) Government support for higher education (because it primarily benefit the well-off).  In contrast he has supported: (i) All volunteer army (ii) Education vouchers to all parents to allow them to select the school where they would send their children.

77

The New Right – Neo-Liberalism in 1980s  This is called counter revolution by some, especially by those  





coming from the left and centrist traditions This is eclipse of the welfare state. Roots in the crises of the metropolitan heartland of the global capitalist system that emerged in 1970s. In 1973, US took a decision to come out of the Bretton Woods system and allow its dollar to float. This went hand in hand with collapse of US authority globally by the emergence of Japan in the east and European economy. Since then, Asia has risen, reducing global importance of USA. After the election of Reagan in US and Thatcher in UK that the New Right firmly took power. [In a way it can be seen as protecting one’s own turf, if New Right is seen as a regressive movement.] Progressive view of it is that this provided new ideas of democracy, relieving people from the clutches of the state. The New Right theorists claim that the modern free-market capitalist system is maximally effective in producing and equitably distributing the economic, social, political and intellectual necessaries of civilised life. 78

The claims of New Right are:  Economically – free markets act efficiently to distribute knowledge

and resources around the economic system, then the material welfare will be maximized  Socially – as action and responsibility for action reside with the person of the individual, then liberal individualistic social systems will ensure that moral worth is maximised.  Politically – as liberalism offers a balance solution to the problems of deploying, distributing and controlling power, then liberal polities ensure that political freedom is maximised.  Epistemologically – as the whole package is grounded in genuine positive scientific knowledge, then in such systems the effective deployment of positive knowledge is maximised.

79

The New Right  The substantive core of the thinking is that free market comprises of

atomistic individuals who know their own autonomously arising needs and wants and who make contracts with other individuals through the mechanism of the marketplace to satisfy those needs and wants. The market is a neutral mechanism for transmitting information about needs and wants, and goods which might satisfy them around the system. A minimum state machine provides a basic legal and security system to underpin the individual contractual pursuit of private goals.  This position has informed the policies of the World Bank, the IMF and the US government. When the World Bank and the IMF forced these policies on the borrowing governments, these were called Structural Adjustment Programmes. The World Bank forced upon the borrowing countries to privatise their structures and the IMF forced them to reduce fiscal deficit (through minimising the role of state in the economy and society). The latter resulted in cutting down of government expenditures even on public goods.

80

The policy package that came to the developing countries was:

 



 

Any regulation of the market has to be avoided, save for crises and the removal of malfunctions or inhibitions to full functioning. Any intervention in the market is to be avoided, save to remove causes of price distortions, so subsidies should be abolished should be abolished, tax rates adjusted to encourage enterprise, tariff barriers removed along with non-tariff barriers or disguised restrictions. Any government role in the economy should be avoided, as private enterprise can usually do a better job, and when governments do become involved it should be both marketconforming, short-term and involve a minimum of regulations Any collective intervention in the market should be avoided, so labour unions must be curbed. International trade should be free trade with goods and currency freely traded. 81

Alternative successful models Needless to mention, the developing countries did not benefit. Instead, two alternatives models that were successful were being discussed.  Social market system of Germany in place of consensus-centred corporatism.  State-assisted development, or ‘Developmental State’ Model of Japan and East Asia, that brought in much higher economic growth rates than what market would have. The ‘Developmental State’ model also comes out of ‘Bismarckian’ State of Germany and ‘Meiji Restoration’ in Japan, where the State took on role of welfare as well as promotion of rapid economic growth. 82

Track record of the New Right The World Bank and the IMF are part of this New Right.  In UK and USA, that has led to unemployment, reductions in general

welfare, declining manufacturing production and mountains of debt. (Something that has begun to happen in India).  Other alternative models have succeeded, such as social market system, which is based on consensus-centred corporatism, or east Asian experiment of state-assisted development, the latter being particularly being cites as a great success.  In the third world, post-1980s, the neo-classicism has governed the policies of the government, which was not so immediately after the second World War, when the newly independent third world country governments were aware of their political-economic, socialinstitutional and cultural weaknesses.  Increase in hunger (see Africa) through permanent damage done to the fragile economies of the Third World. (Susan George’s work)

83

Max Weber  Weber's ideas are complex and about

many dimensions of development. He is primarily concerned with analysis of capitalism but at the same time sceptical of modernist project. For example, the modernist institutions have become bureaucratic. And "bureaucratic administration means fundamentally domination through knowledge" wrote Weber. 84

 He sees that patterns of social relationship would be

stable and that is because it is believed that these relationships are in a legitimate order.  That there are three types of legitimate orders and these orders of authority are accepted. These are: a) Traditional authority, b) legal authority and c) charismatic authority  According to Weber, the modem capitalism is governed by legal authority. The social institution that embodies such legal authority is the modem bureaucracy.  Contemporary capitalism cannot function without the bureaucratic organisation. He thinks that the bureaucratic authority tends to be conservative and expansionary. In modem capitalist society, ever greater areas of social life are subject to legal-rational rules. 85

 This is the key to understanding modem capitalism. He

calls bureaucracy a gatekeeper of the capitalist systems, who provide or deny opportunities to individuals to access the benefits of the system.  Politically, he speaks of the iron-cage of bureaucracy. He is sceptical of bureaucracy.  Weber also found that the formal organisations that grew out of modernity's desire to power, are highly bureaucratic structures. The thrust of these organisations is towards greater calculability, effectiveness and control. But, in this process, these organisational issues become more important than the substantive (important) values and ends that the organisation can serve and are meant to serve. In fact, the bureaucracy in these organisations subvert the substantive values and ends it might serve in light of the functional efficiency of the organisation for which they are there. 86

 World Bank is a great example of such a bureaucracy,

argues Bruce Rich in his book titled 'Mortgaging the Earth'. For example, World Bank might consider the issue of staff leaking the documents more serious organisational matter than the organisation itself taking up projects that have horrendous, often foreseeable, environmental and social consequences. In fact, the World Bank has been quick to tack on to the prevailing development philosophies, for example, poverty alleviation under McNamara, to global environmental management in the recent years. But, if there are failures on this front or if the World Bank's intervention has led to worsening of the situation (which it has in many instances that have been well recorded), then no one is accountable. But, these themes crop up in the Banks' activities because these fit well into Bank's formal logic and institutional needs.

87

 And the Third World countries, through their bureaucracies started

borrowing from the World Bank for huge projects to realize the "ideals of modernization", no one had heeded to Max Weber's gloomy warnings. Most Third World leaders dreamed of and even dream of now, of replicating Tennessee Valley Authority, great highways and public works of American cities and other public works of world's most powerful and economically successful nations, argue Bruce Rich.  A way out of the grip of this bureaucracy is emergence of a charismatic leader, according to Weber. From time to time, a charismatic political leader is thrown up, who would be elected by the masses, and who would correct the bureaucratic controls on modem institutions. This is Weber's belief in individualism, that an individual will correct the system from time to time. That finally the values will rule over facts.  For Weber, it is from the ranks of the bourgeoisie that the leader would be thrown up and not from the working class as Marxists argue.

88

Critique of Modernity  Although modernity had its origins in the 17th century, it

triumphed worldwide in social and economic transformations only two centuries later, in the 20th century. Also, inherent in the implementation of modernist paradigm were many contradictions.  Though, freedom and democracy was a part of the philosophy of modernity, but, that was subverted from within. The modernist paradigm was the building of empire of man over things and was from the beginning rooted in the will to power and domination. It entailed, empire of men over other men and men over women, of Western societies over all others. (Now we use the term North over South. )  The liberation of individual and society from previous constraints left the world and society empty for new, more total forms of control. 89

Critique of Modernity - conti  Max Weber found that in the project of modernisation and

rationalisation, bureaucratisation has taken place. And "bureaucratic administration means fundamentally domination through knowledge" wrote Weber.  Weber also found that the formal organisations that grew out of modernity's desire to power, are highly bureaucratic structures. The thrust of these organisations is towards greater calculability, effectiveness and control. But, in this process, these organisational issues become more important than the substantive (important) values and ends that the organisation can serve and are meant to serve. In fact, the bureaucracy in these organisations subvert the substantive values and ends it might serve in light of the functional efficiency of the organisation for which they are there.

90

Critique of Modernity – contd.  World Bank is a great example of such a bureaucracy, argues

Bruce Rich in his book titled 'Mortgaging the Earth'. For example, World Bank might consider the issue of staff leaking the documents more serious organisationa1 matter than the organisation itself taking up projects that have horrendous, often foreseeable, environmental and social consequences. In fact, the World Bank has been quick to tack on to the prevailing development philosophies, for example, poverty a11eviation under McNamara, to globa1 environmenta1 management in the recent years. But, if there are failures on this front or if the World Bank's intervention has led to worsening of the situation (which it has in many instances that have been well recorded), then no one is accountable. But, these themes crop up in the Banks' activities because these fit well into Bank's forma1logic and institutiona1 needs.

91

Critique of Modernity – contd.  And the Third World countries, through their bureaucracies started borrowing



   

from the World Bank for huge projects to realize the "ideals of modernization", no one had heeded to Max Weber's gloomy warnings. Most Third World leaders dreamed of and even dream of now, of replicating Tennessee Valley Authority, great highways and public works of American cities and other public works of world's most powerful and economically successful nations, argue Bruce Rich. Technically large project~ have invariably led to displacement, be it in developed world or the developing world. For example about 60000 people were displaced for construction of 7 mile Cross Bronx Highway in New York City in 1952. This was because of Robert Moses, a public planner in the city, whose built his empire from 1930s onwards to 1960s. This project is typica1ly a 20th century technocracy at work. According to Lewis Mumford, in the early 20th century, influence of Robert Moses on the cities of America was the greatest. Foundations of Moses Empire was lack of political and financial accountability and control through withholding of information (something sounding familiar to us?) Moses empire was built through numerous autonomous development agencies that generated their own revenues. Robert Moses was a developer with his empire spanning over nearly half the area of New York City at that time. 92

Critique of Modernity – contd.  This approach to development, Bruce Rich compares with the way

the World Bank functions. It creates numerous independent autonomous project authorities in the developing world, for example NTPC in India. These agencies were not often open to normal legislative and judicial scrutiny, operated according to their own charter and rules (mostly coming from the World Bank) and staffed with technocrats (bureaucrats) often sympathetic, "even beholden" (pp. 227) to the bank.  In globalisation phase, development is being pursued through such special institutions.  Modernisation proceeds on the path of technological transformation of nature and society. Technology and technocracy as organising principal of a human society appear to take an autonomous dynamics of its own.

93

Critique of Modernity – contd.  Modernisation and its application on human societies and

ecosystems is - abstraction, analysis, reconstruction and control. (Control through bureaucracy)  It is control of man over nature, of capital over people (represented through ideology of economic growth over improvement in human quality of life), of men over women, of developed world (North) over South, of urban over rural, of core over periphery. This analysis comes out the consciousness and analysis of those not benefiting from modernity's projects, such as type of urban development, type of infrastructure development, etc.  Modernisation has worked through a potent combination of rationalized bureaucracy, economic organisations (that favour capitalism with its philosophy of neo-classical economics) and technological organisations that are politically unaccountable.  Nature has revolted against the gains of modernisation. For example, real looming threat of climate change, imbalanced food security, rising health burdens because of wide spread use of hazardous materials, etc. 94

Critique of Modernity – contd.  The local communities dependent on nature, that is the indigenous 







societies dependent on the ecosystems have revolted. Environmental degradation is severe. Minimum of environmental resources, such as water, is on the decline. Per capita water availability is on the decline a time will come in Third World countries when there will be nearly no drinking water. India is one of them. Many small Third World Countries have devastated public finances, as they are highly indebted to the World Bank, in the process of pursuit of modem projects. Instead of economic progress, many Third World countries are steep in debt. Instead of self-sustained growth, these countries are upto ears in debt. Problems of unemployment, housing, human rights, poverty and landlessness are increasing. Global inequalities have increased. In 1960, the ratio between the world's riche and poor countries was 20:1, which increased to 46:1 in 1980 and went up to 60:1 in 1989.200 hundred years ago, this ratio was 1.5: I! This is the achievement of modernization process! Third world countries also have devastated environment. For example, long famine in Ethiopia, which has resurfaced this year. 95

Critique of Modernity – contd.  In any case, the modemisation did not take place in most Third World

Countries. It did not bring in scientific temper, even though many of the Third World leaders, immediately after their independence embarked on large modem technocratic projects. For example, Nehru said; "Industries are the temples of modem India". And in India, "We have taken a Tryst with Destiny".  "Long years ago, we made a tryst with destiny and now the time comes when we shall redeem our pledge, not wholly or in full measure, but very substantially. A moment comes, which comes but rarely in history, when we step out from the old to the new.  "That future is not one of ease or resting but of incessant striving so that we may fulfil the pledges we have so often taken and the one we shall take today. The service of India means the service of the millions who suffer. It means the ending of poverty and ignorance and disease and inequality of opportunity. .. To bring freedom and opportunity to the common man, to the peasants and workers of India; to fight and end poverty and ignorance and disease; to build up a prosperous, democratic and progressive nation, and to create social, economic and political institutions which will ensure justice and fullness of life to every man and woman. " 96

Critique of Modernity – contd.  The scientific temper did not emerge and on the contrary, religious  

 

fundamentalism is on the rise globally, more so in the Third World. Poverty has not been eradicated and it is on the rise in many parts of the world. Hunger deaths are on the increase inspite of food surpluses. Improvement in quality of life of people all across the Third World has not taken place. For example, IMRs, MMRs, are quite high. There is no full literacy achievements. After SAP, there have been reversals in achievements in these indicators in many African countries. The decade of 1980s is therefore called a lost decade from the perspective of development. Neo-classical economics, pursued in all developed countries, (with shades of mix ofwelfarism), and communism are both perceived as modernist projects of control over nature, etc. Feminists have revolted through calling 'modernist project', modern development projects as 'white Caucasian men located in the capitalist countries of the North' dominated projects. 97

Positive achievements  Could we have done without modernism? No. This

modernism, its economic system as capitalism and its political system as liberal democracy (with its limitations), is the beginning of much radical transformations.  It was necessary to move away from agrarian systems, which are very closed and irrational systems, with mind sets based on religious and super-natural beliefs. On more scientific than theological basis of knowledge.

98

Alternative Theories

99

What is development  Neo-classical economists would say that development is economic

growth. That is, per capita increase in income (Per Capita Income -PCI)  How is income measured?  Wages * Workers  Production = Sum total of all production

It is assumed that with increase in income,  people will have more resources at their command and that they would consume more that would lead to utility and therefore satisfaction.  Income will give people command over resources that will lead to people spending on basic needs, including education, health and housing.  Income will increase the self-esteem and self-respect of the people and which will also give satisfaction 100

Alternative view  Economic growth or increase in per capita income does not

mean increase in welfare and improvement in either quality of life or improvement in well being or improvement in human capabilities.  Improvement in capabilities women as much as of men  Development has to be viewed from only one perspective and that is development of people and not of things. That is development takes place only when people's development or human development takes place.

101

Other alternative concepts/ measurements of development  Social Statistics, Social Accounting and Social Reporting - These are statistics  

 

on social aspects of development Level of Living, Living standards and State of welfare Index -These are statistics that represent standard and level of living enjoyed by people, represented by various consumption related indicators. Quality of Life - the quality of life people enjoyed in the context of environmental pollution, deteriorating safety and security and declining living standards. Quality of life concept also includes psychological factors and individual perceptions. "How do you do?" PQLI (Physical Quality of Life Index) - This is a Quality of life Index referring to LEB, IMR and basic literacy - primarily meant to measure poverty of developing countries. Social Progress Index -Genuine Progress Index etc. - That is only positive parameters of development are added to the income and negative parameters are deducted. Therefore, expenditure incurred on military and war would be deducted. Of violence, genocide, etc. would be deducted. Of environmental degradation would be deducted. But, of care, affection, etc. would be added. It is important to know what gets added and what does not get added to the income. The debate between Lester Thurow and Robert Chambers. 102

Human Development  Human Development is the process of expansion of choices in life.

i.e. HD enhances capabilities of people that enables them to lead the life they value (and want)  HD is not just quality of life - It is a development paradigm (approach), a development mode. It is not a static concept, but it is a dynamic concept that refers to a development path that ensures human development.  Human development is a goal as well as a paradigm. Economic Growth does not automatically get translated into human development. It needs an enabling environment.  In development theory, this is a new area that is being developed by scholars.

103

Human Development Index (HDI)  This is a measurement of the choices available to people

through improvement in their capabilities. (HDI) - A composite index of three basic human capabilities: i) Capability to lead a healthy life (LEB) ii) Capability of enjoying knowledge (adult literacy rate and average number of years of schooling, and iii) Access to good standard of living: per capita income

104

GDI/ GEM  Gender Related Development Index (GDI): - It is the HDI adjusted for gender equity. It measures the same basic capabilities in the context of gender inequity  Gender Empowerment Index (GEM): - It measures women’s empowerment in the context of the same of the men. It is a composite index of 1. Women’s power over economic resources (share in per capita income) 2. Access to professional opportunities and participation in economic decision making. ( % of women in technical, professional, managerial job) 3. Access to political decision making (% of women in the national parliament)

105

Other Indices of UNDP  Capability Poverty Measure (CPM): - A measure of the lack of three basic capabilities, a measure of human poverty 1. % of underweight children (under 5 years) 2. % of births unattended by trained personnel 3. % of females illiterate  Human Poverty Index (HPI): - A composite index of basic deprivations. 1. % of people not expected to survive to age 40 years 2. Adult Illiteracy Rate 3. Deprivation of economic provisioning - % of people without access to safe drinking water - % of people without access to basic health services - % of underweight children under five

106

A Critique of the HDI/GDI O The HDI is too narrow O The HDI has ideological underpinnings O The HDI ignores the concerns of the South O The HDI is not engendered O Selection of variables and indicators not right O Why separate GDM/GEM O Exclusion of Patriarchy O GEM is too narrow O Measuring gender inequity

107

Alternative Human Development Measures * Human Development Measure - 1 (HDM-1) 1. Control over resources:- Consumption expenditure as far as possible 2. Access to knowledge, Adult literacy rate, combined enrolment rate 3. Access to healthy life, Life Expectancy at Birth (LEB), Incidence of Disability, Incidence of Morbidity 4. Access to Housing - % of households having durable dwelling - % of households with three basic facilities: water supply, electricity and sanitation 5. Right to life - Incidence of crime - Incidence of crime against dalits, women 6. Participation - Economic participation 0 workforce participation 0 % of workers in non-farm employment - Political participation 0 % voting in panchayat/assembly/parliament elections 0 % contesting in panchayat/assembly/parliament elections - Other participation 0 % participating in cooperatives, trade union, political parties etc.

108

* Human Development Measure - 2 (HDM-2) 1. Environment/Ecology environmental depletion and degradation - % wastelands - % degraded forests - % area under DPAP/DDP 2. Basic Services Not in the state but at the local level - % villages with a primary school - % villages with any health facility - % villages with electricity - % villages with all weather approach road 3. Structural Inequalities and disparities - Regional disparities in infrastructural development 4. Patriarchy - % women marrying before 14 years and before 18 years - juvenile sex ratio 0 before birth discrimination 0 after birth discrimination 0 discrimination in childhood

109

Three Rules of Promoting Social/Human Development 1. Enabling development path - employment intensive - equitable - environment friendly 2. Persistent direct efforts for decades - Kerala and Gujarat (wide gap) - Some Saurashtra districts 3. Synergies in policies/programmes - literacy and health (female literacy and IMR, MMR) - environment and health/education - capital and revenue expenditure

110

 Proponents of human development concept, Mahabub-ul-Haq

(once upon a time education minister in Pakistan), but when he was in the UNDP, Amartya Sen with his concept of capabilities. Now even Lord Meghnad Desai associated. People from South Asian Continent.  This concept draws heavily from a very famous saying of Gandhi: "There is enough in this world for every persons' need but there is not enough in this world for even one person's greed.  Number of alternative development 'approaches, such as small is beautiful (E.F. Schumacher), have this Gandhian influence.

111

Environment and Human Development i) Environment friendly development is sustainable ii) Environment friendly development tends to be employment intensive and reduces poverty iii) Environment friendly development tends to be equitable - region and person wise - Common Property Resources & equity - Growth of agro-based unites of smaller size iv) Environment friendly growth ensures better quality of life - fuel, fodder and water and drudgery of women - implications for health - fuel, fodder and water and migration - potable water and health v) Environmental degradation and education and literacy - enrolment of girls - migration and drop outs or low enrolment - teachers not willing to stay vi) industrial and vehicular pollution and health - pollution of air and water

112

Human development is part of macro economic growth path

113

Table 8.1 I 1

II 2 3 III 4 5 6 IV 6 V 7 8 9

Indicators and their weightages of HDM/GDM – 1

Indicator` Income and poverty Per capita consumption expenditure for HDM – 1 at state level Per capita income for GDM – 1 at district level Percentage population above poverty line for HDM – 1 at district level Per capita agricultural wages for GDM – 1 at district level Education Adult literacy rate % Children attending school (age 6-14 yrs.) Health Life expectancy at birth for HDM/GDM –1 at state level Child mortality rate – 5 for HDM/GDM –1 at district level Disability rate Total Fertility Rate Housing % households having access to all three basic facilities Participation Economic participation Per cent non-farm workers Political participation Percent of voting in last state assembly + parliament elections Contestants per lakh voters in last state assembly + parliament elections

Weightage 20% 100%

20% 50% 50% 20% 50% 25% 25% 20% 100% 20% 50% 25% 25%

114

Table 8.2 I 1 I 1 2 3 III 4 IV 5 6

Indicators and their weightages of HDM/GDM - 2

Indicator W eightage Environment and Ecology 25% Percentage area under wastelands for HDM/GDM – 2 at state lev el 100% Percentage area under DDP and DPAP for HDM/GDM – 2 at district lev el Basic services 25% Percentage v illages with prim ary school 33% Percentage v illages connected by all weather road 33% Doctors per lakh population for HDM/GDM – 2 at state lev el 33% Percentage v illages with gov ernm ent m edical facility for HDM/GDM – 2 at district lev el Structural Equalities 25% Inter-district v ariation in relativ e index of dev elopm ent for HDM/GDM – 2 100% at state lev el CMIE’s relativ e index of dev elopm ent for HDM/GDM – 2 at district lev el Patriarchy 25% Juv enile sex ratio 50% Percentage ev er m arried wom en in age 6-14 years 50%

115

Table 8.4:

Ranking of states in HDM – 1

States

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Andhra Pradesh Assam Bihar Gujarat Haryana Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Uttar Pradesh West Bengal

Income & Poverty Index 7 12 14 6 2 10 3 13 5 15 1 4 8 11 9

Education Index 11 9 15 5 6 7 1 12 3 10 4 14 2 13 8

Health Index 8 11 10 9 5 4 1 14 3 13 2 15 6 12 7

Housing Index 10 12 14 2 5 6 13 11 3 15 1 8 9 7 4

Participation Index 9 4 13 6 2 5 1 14 8 15 11 10 7 12 3

HDM - 1

9 11 14 5 3 8 1 13 4 15 2 10 6 12 7

116

Table 8.5: States

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 * **

Comparing income, HDM – 1 and HDI ranks Per Capita Income Rank 1995-96

HDM - 1 Income HDI Rank - HDM – 1 Rank** 1991-92 Rank* (1991-92) Andhra Pradesh 9 -2 9 7 Assam 11 1 10 12 Bihar 14 1 13 15 Gujarat 5 -1 5 4 Haryana 3 0 4 3 Karnataka 8 -2 7 6 Kerala 1 7 1 8 Madhya Pradesh 13 -2 14 11 Maharashtra 4 -2 3 2 Orissa 15 -2 11 13 Punjab 2 -1 2 1 Rajasthan 10 0 12 10 Tamil Nadu 6 -1 8 5 Uttar Pradesh 12 2 15 14 West Bengal 7 2 6 9 Negative rank means poor performance in human development as compared to economic growth. Calculated by A. K. Shiva Kumar, using the UNDP methodology (Shiva Kumar 1991).

117

T a b le 8 .8 : R a n k in g o f sta te s fo r in d ic e s o f G D M - 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

In c o m e E d u c a tio n H e a lth In d ex In d ex In d e x A n d h ra P ra d e s h 3 11 8 A ssam 8 9 11 B ih a r 13 14 10 G u ja ra t 2 5 9 H a ry a n a 10 6 5 K a rn a ta k a 4 7 4 K era la 12 1 1 M a d h y a P ra d e s h 6 12 14 M a h a ra s h tra 1 3 3 O ris s a 9 10 13 P u n ja b 11 4 2 R a ja s th a n 7 15 15 T a m il N a d u 5 2 6 U tta r P ra d e s h 14 13 12 W est B enga l 15 8 7

H o u s in g P a rtic ip a tio nG D M - 1 In d e x In d e x 10 8 10 12 3 9 14 15 14 2 9 7 5 4 5 6 6 6 13 1 1 11 14 11 3 10 2 15 13 12 1 5 3 8 11 15 9 7 4 7 12 13 4 2 8

118

Table 8.9: States

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 * **

Comparing income, HDM – 1, GDM – 1 and GDI ranks Per Capita Income Rank 1995-96

HDM - 1 Rank

GDM - 1 Rank

Income HDM - 1 GDI minus GDM minus GDM Rank** - 1 Rank* - 1 Rank* 1991-92 1991-92 1991-92 1991-92 (1991-92) Andhra Pradesh 9 10 -3 -1 8 7 Assam 11 9 3 2 10 12 Bihar 14 14 -1 0 14 15 Gujarat 5 7 -3 -2 3 4 Haryana 3 5 -2 -2 9 3 Karnataka 8 6 0 2 5 6 Kerala 1 1 7 0 1 8 Madhya Pradesh 13 11 0 2 12 11 Maharashtra 4 2 0 2 2 2 Orissa 15 12 1 3 11 13 Punjab 2 3 -2 -1 4 1 Rajasthan 10 15 -5 -5 13 10 Tamil Nadu 6 4 1 2 6 5 Uttar Pradesh 12 13 1 -1 15 14 West Bengal 7 8 1 -1 7 9 Negative rank means poor performance in gender related human development as compared to economic growth and HDM – 1. Calculated by A. K. Shiva Kumar, using the UNDP methodology (Shiva Kumar 1996).

119

T a ble 8 .11: R an kin g o f states in g en d er equ a lity ind ex

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

In c o m e E d u c a tio n H e a lth P a rticip a tio n G E I G D M In d e x In d e x In d e x In d e x A n d h ra P ra d e sh 3 10 6 8 9 A ssa m 6 4 10 4 4 B ih a r 9 14 15 15 14 G u ja ra t 2 7 5 9 8 H a rya n a 13 9 9 10 12 K a rn a ta ka 4 8 2 6 5 K e ra la 12 1 1 3 1 M a d h ya P ra d e sh 5 12 12 14 11 M a h a ra sh tra 1 5 3 12 7 O rissa 10 11 13 5 10 P u n ja b 14 2 4 1 2 R a ja sth a n 7 15 11 13 15 T a m il N a d u 8 3 7 7 6 U tta r P ra d e sh 11 13 14 11 13 W e st B e n g a l 15 6 8 2 3

-1 10 9 14 7 5 6 1 11 2 12 3 15 4 13 8

120

T able 8.15: R anking of states in H D M - 2, states S tates 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

A ndhra P radesh A ssam B ihar G ujarat H aryana K arnataka K erala M adhya P radesh M aharashtra O rissa P unjab R ajasthan T am il N adu U ttar P radesh W est B engal

E cology & B asic E nvironm ent S ervices Index Index 8 8 11 9 7 11 13 2 4 4 6 7 1 3 12 12 14 6 5 14 3 1 15 13 10 5 9 15 2 10

R egional D isparity index 12 10 4 9 6 11 3 5 15 1 2 8 13 7 14

P atriarchy Index 3 4 14 10 5 13 2 11 7 9 1 15 12 8 6

HDM - 2 4 6 9 7 3 8 2 12 14 5 1 15 11 10 13

121

HDI rank of India

Source: Economic Survey, 2006-07, India 122

Health status comparisons

Source: Economic Survey, 2006-07, India

123

Gender Development  If advances in welfare (utility), education, health and general quality of

life, self-esteem and self-respect of women does not take place, then, it is not development.  Gender Analysis is a Bi-focal view of society. It is believed that: a) The development benefits are not equally shared between men women. Men have benefited more from the modernist approach to development. Hence, in all development indicators, women are behind men. This is not a biological outcome but a social construct. b) The development burdens also are not equally shared between men and women. Women share more burdens of mal-development than men. For example, in times of displacement or environmental degradation, it is women who suffer more than men.

124

Gender Inequality  What unites countries across many .cultural,

Religious, Ideological, Political and Economic divides is their Common Cause Against Equality of Women. i) Right to travel ii) Right to marry iii)Right to divorce iv) Right to property and inheritance v) Right to acquire nationality vi) Seek employment

125

Comparing HDI with GDI GDI Values

HDI Values

126

Indicator values in GDI

127

Some Statistics  Estimated 1.3 billion people live in poverty in the world and 70% of

them are women.  In South Asia and Sub-Saharan Africa, the men live longer than women (longevity measured by LEB). In rest of the world, on an average, women live longer by five years than men.  There are more than 100 million women missing in the world. These missing women are mainly in China (FMR 940) and India (FMR 933). In rest of the world, including Sub- Saharan Africa (1020), FMR is above 1000. This is indication of killing of women or neglect of health of women so that women die.  Out of every three illiterate in the world, two are women.

128

Some statistics – contd.  Women earn less than men.

a) In agriculture, women earn 3/4 that of men. b) In Bangladesh women earn 42% that of men. In USA 75%, in Vietnam 91.5% and in Sri Lanka 89.8%  There is occupational segregation. Only 14% of the total administrative and managerial jobs in the world are held by women.  vii) Only 5% of the multilateral banks' rural credit reaches women allover the world. In India, only 11 % of the borrowers of the major banks are women.

129

 Term Gender is a Social Construct. Terms men and

women indicate biological differences between two sexes. But, the term gender indicates social relationship between the two.  Gender relationship has been such that in the social relationship between men and women, women are systematically subordinated. (Most people do not want to believe this).

130

Gender Relations

Politicoeconomic system 131

Gender relations  Men and Women perform distinct roles in society with respect to

    

three spheres of interaction i) Production sector ii) Reproduction sector (Social reproduction sector) iii) Community sector These distinct roles are performed because of the above mentioned framework Gender inequality stems from gendered division of labour in the above three mentioned fields. Mental labour is more valued than physical labour Most important labour is valued the least Productive labour is more valued than reproductive labour (What is reproductive labour?)

132

 Why? Because development is economic growth and hence economic

activities that bring income are more valued than activities that are of importance for ‘making of a human being’.  Are there economic activities that do not bring income? Many in the developing countries. For example, subsistence agriculture. Collection of water, fodder and fuel. And so on.  Manv of the activities carried out by women are essentially economic in nature but are not paid for and hence not considered economic and by that the output of these activities do not get into the national income statistics. Women performing these activities are not considered workers and hence are not paid for and hence also do not receive that respect/status.

133

 Secondary status of women or unequal

gender relations are because of: i) Socialisation process ii)Religious sanction iii) Unequal resource allocation in development programmes iv) Definition of what is value because of the definition of development itself

134

Why women (feminists) are critical of modernisation process?  Scientific knowledge brought control of man over nature. But, it

indeed was man's control and not control of all human beings.  Women have not enjoyed as much loot of the nature as men have as women's consumption of goods and services have been much less than that of men. See any of the indicators.  Modernisation brought mechanisation in some areas but in many activities that women taken up, have not benefited out of mechanisation. Classic example is agriculture. Also, women are engaged in labour-intensive and low paid activities in the manufacturing sector.

135

 Modernisation has brought in expansion of capitalism, which has

subjugated the countries of the South. This has led to increase in inequality. Wherever overall inequalities have increased gender inequalities have increased much more.  Whenever there is deprivation, the burden of deprivation has been passed on to the women. And modernisation has increased deprivations in many parts of the world, mainly through the transfer out of natural resources from the Third World to the First World through various mechanisms. Capital and natural resources are transferred out, directly during the colonial period and indirectly in the current era through trade rules and markets.  Modernisation has not reduced women's double burden, of productive sector and reproductive sector responsibility.

136

 Modernisation has segregated productive and reproductive sectors of

the economy and relegated the reproductive sector to the secondary position as this sector does not produce national income because of the very definition of income and hence, women, who are predominantly found in the reproductive sector are relegated to the secondary' position.  It has brought bureaucratisation and women not much literate are unable to get through the bureaucratic labyrinth for benefiting form development programmes and policies.  Modernisation has also pitted people against the people and in this increased conflicts women suffer the most. Rape is used as a powerful weapon during the ethnic conflicts to humiliate the other.  Modernisation has adversely affected environment and women who are more directly connected to the environment are worse sufferers.

137

 Gender inequality starts from the household sector or the domestic sector

and gets extended to other sectors.  Modernisation brought separation of household reproduction sector from economic production sector and that brought in sharp division of labour between men's work and women's work.  Women being made solely responsible for reproductive sector (social reproductive sector) of the society, found it hard to perform these dual tasks. Hence they got further and farther away from the productive sectors, ones termed as productive sectors by the capitalist economy.  The gender inequality is not only confined to the household and family, but is also reproduced across a range of institutions, including international donor agencies. the state and the market. Institutions ensure the production, reinforcement and reproduction of social relations and thereby social difference and social inequality.

138

 Institutions are framework of rules for achieving certain social or

economic-goals. Organisations refer to the specific structural forms that the institutions take  In the widely accepted definition of development, "a major section of working women of the world disappear into a 'black hole' in economic theory." The planning interventions therefore do not recognise and therefore value the non-market activities of the women, which are otherwise of economic and social relevance but are not important of GDP/GNP estimates.  In cities, there are no interventions to support these activities of the women. On the contrary, planning tools, such as landuse planning make clear distinction between work place and residence place, emphasis on pricing of basic services, and so on.

139

 There is hierarchy of production and which influences and then

legitimizes resource allocation in a hierarchy.  Women are underrepresented in activities at the 'tip of the iceberg', where development efforts and resources are concentrated; they appear in large numbers in informal sector and subsistence activities. They are pre-dominant ... in the reproduction and activities (labour) nurturing of human life, the neglected sectors in policy domain.  This skewed representation demonstrates graphically the convergence of power and ideas in the field of development.  It ensures that women are positioned within the policy debate as unproductive 'welfare' clients, and that their claims on the national development budget. based as they are on activities and resources which are excluded from calculations of the GNP, are rarely heard in debates over budgetary allocations.

140

 Development theories and practice should

start from the vantage point of the poor women in the Third World, taking their viewpoint as that from the below.  Thus, gender planning comes in as a new concept.

141

What is Gender Planning? Planning is three things: i) Policy making -which is a process of political decision making about allocation of resources among various activities. ii) Programme interventions - that is, the resource allocations are converted into programmes through which the resources are distributed. Government has a role in the process as the resources come from the government. iii) Implementation - the organisation of the process of implementation, the administration of the programme, who participates in it and so on. A Gender Perspective is required in each of these three activities.

142

i) Resource allocations do not consider women's needs. For example, resources are not easily allocated for services that benefit women, child care services, battered women's homes, etc. Why, because welfare is not economically productive, neo-classical economist's perspective. ii) Programmes do not consider women's needs. For example, transportation policy. Transport routes and schedules might totally overlook women’s needs with respect to timing, security, location of bus-stands, street furniture, etc. Other examples of missing women are in the housing programmes, agricultural programmes, and so on. iii) Process of implementation exclude women. Most programmes are designed by planners and where people do not participate and hence the processes, like we discussed about the World Bank projects, are not transparent. If there is some local participation than women do not participate and hence their needs get overlooked.

143

Five types of policies As far as policies are concerned, there can be five types of policies: i) gender-blind policies ii) gender-neutral policies iii) gender-aware policies iv) gender specific policies v) gender redistributive policies

144

Five approaches to gender planning Within gender planning also, there are five approaches based on what one looks at role of women. These five approaches are: i) Welfare approach – Where women are looked at as mothers and their welfare is considered as society’s welfare. ii) Anti-poverty approach – It argues for increasing the productivity of poor as high poverty leads to women engaging themselves in highly low productive activities. High poverty among women is a problem of underdevelopment

145

iii) Efficiency approach - Argues that women's participation brings efficiency. For example, at household level, women's income benefit the household as they spend the same for household welfare, for example on children's education and not on alcoholism as men tend to spend. iv) Equity approach - Women should be equal recipients of benefits in a development process. In other words, women should equally benefit from a development process in a suitable manner. v) Empowerment approach - Argues for empowering women for greater self-reliance and self-esteem.

146

Example of different approaches Example of how different approaches lead to different arguments, in say an environmental programme. i) Welfare approach - Women are altruistic (charitable) and work without material gains for the welfare of the family. Natural resource management, which has been traditionally been women's responsibility, in whose honour women have rose from time to time (Chipko movement, Greenbelt movement Kenya). Hence, women should be given this responsibility. ii) Anti-poverty approach - Removing poverty of the women would remove poverty of the household and hence make free access to natural resources such as the CPRs possible. This will bring income to women.

147

iii) Efficiency approach - Women are honest and hence will give 'Best for the Buck'. Women are the efficient managers of the natural resources and hence give them this responsibility for increasing efficiency of natural resource management programmes. Land management in subsistence fanning is women's responsibility and hence enhance these capabilities for efficient land management. iv) Equity approach - Women's equal participation should be there in all programmes, such as energy programmes (including nuclear energy programme). v) Empowerment approach - Women's participation brings them out of the households into the public sphere that empowers them and they start demanding their well being and respect. Women can then put their needs as priorities in public policy. Women can get access to and control over assets and resources.

148

 Patriarchy is a system that systematically denies women access to

assets and resources through religious and social practices. Notion of economic growth enhance & this process of denial.  Women can be empowered only through changing the gender relations. That their development in true sense would take place when this rigid gender division of labour and all inequalities emanating from that disappears.  Gender planning is a new tradition, a new goal, that is to ensure that women, through empowering themselves, achieve equity and equality with men.

149

Gender sensitive planning is that which ensures: i) adequate availability and accessibility of all basic services, that would include housing, water supply and sanitation, transport ii) right to employment at adequate wages, including vending and living in the informal sector without being displaced, iii) clean environment, iv) safety and security and availability of feminist services to address the problem of violence against women, v) availability of child care and other care facilities so that women are empowered to participate equally in all the urban activities, vi) democratic polity in true sense and not just token electoral democracy, and vii)creation of institutions of women's empowerment at all levels, from private to public spheres.

150

 It is now mandatory that all development

programmes and projects are analysed with a bifocal lense and that what would be the impact of any of these programmes and projects on women is observed.

151

Gandhian philosophy  Gandhi was already practising alternative development model in

South Africa, through his 'Tolstoy farm in South Africa. Here, he has also participated in anti-apartheid movement, issues of equal rights.  He was called a 'practical dreamer’ by his first biographer, Rev. Joseph Doke  Gandhi saw that the general people were not participating in the Freedom movement. Only the Congress party and its workers were active in a noticeable way. He had also noticed that even the bearings of the Congress Party workers were not in the masses.

152

 He gave a call to his followers in Congress Party, the Congress Party

workers, to go to the rural areas and mobilise the people for participating in the Freedom Movement. Being a practical man, he suggested that the best entry point to mobilise people for freedom struggle was to take up constructive activities in the villages.  The youth inspired by the call of Gandhi indeed went to the rural areas and begun constructive development activities. (This practice is there even today. Many NGOs undertake income-generation programmes or education programmes to begin organising a community for political action.)  Gandhi had realised at that ‘independence’ did not mean political independence alone but also economic independence from the imperial global economic system. For India, it meant reconstruction of the entire society that was poverty-stricken. Independence for India meant, independence from poverty. Thus, for India, both, political and economic independence had to go together, argued Gandhi.  Population was concentrated in rural areas in India and so was the poverty. He therefore asked his followers to go to the rural areas, where people and poverty were concentrated and work for development activities.

153

Gandhian Philosophy  Gandhi condemned the western civilization. He believed that it

dehumanised. He believed that the machines, which were for the purpose of easing human burden and to increase production for satisfying numerous human wants of the modem human beings "mutilated the working man, cancelled out his body, conscripted only his hands". Gandhi saw that the modem civilization would mean multiplication of wants and moral impoverishment of man. He laid out his vision of Indian society in his work Hind Swaraj, written in 1908.  He expressed the opinion that the western civilization was irreligious and it had taken hold on people in Europe. For him civilization pointed human beings to the path of duty and observance of morality and not to the path of increased consumption and lack of morality. Gandhi's condemnation of western civilization and with that of the industrialisation promoted by western countries was a reaction to imperialism of the west. For him industrialisation and colonialism went hand in hand.

154

 He expressed the opinion that the western civilization

was irreligious and it had taken hold on Europe. For him civilization pointed human beings to the path of duty and observance of morality and not to the path of increased consumption and lack of morality. Gandhi’s condemnation of western civilization and with that of the industrialization promoted by western countries was a reaction to imperialism of the west. For him, industrialization and colonialism went hand in hand.

155

Economic Vision – Village Movement  Gandhi did not believe that economics was a natural science. He

considered it as moral science, which had to do with spiritual and moral being and not just the rational, utilitarian human being.  Gandhi’s economic programme for India was revival of the village economy. He stated that the economic vision for a thickly populated country such as India had to be different than that for thinly populated countries such as the United States. He saw that the only way to bring good living to the people in rural India was to make rural areas central piece in economic programme.  Gandhi saw urbanization as a process that sponged on the rural areas.

156

 He promoted the idea of 'Bread Labour', idea that he had borrowed from

Tolstoy. It means living by one's own hands. He believed that: (i) the life of labour, that is that of the tiller and handicraftsman was only life worth living; (ii) there has to be equal value for all types of labour (lawyer, barber, etc.) and (iii) good of individual is contained in the good of all.  By this, he strongly disagreed and discouraged the idea of hierarchy in the division of labour. His emphasis was to create employment for all in the rural areas through home/hand production, which is also decentralized production that would employ unemployed rural labour. Small products would get absorbed in the rural economy itself and thereby increase employment as well as demand at the village level.  Gandhi was in search of practical means of alleviating India's wretchedness and misery. Charkha and Khadi programme became the symbols of this practical programme. He introduced spinning as a basic programme. He believed that every one had to spin, that is every one had to be engaged in the activities of production of basic necessities. Only then there would be real home rule or independence, he said.

157

 He said that the problem for India was how to employ the

hands that remained idle for about six months in a year and part of the working day. Charkha became a symbol of subsidiary economic activity at the village level.  After independence, Gandhians influenced the Government of India (GOI) to set up Khadi and Village Industries Commission (KVIC), an organisation for promoting employment among rural weavers and artisans. The KVIC provided grants for setting up mainly units/infrastructure for home-based (also called cottage industry) production.

158

Peace and Non-violence  Gandhi believed that any good end could not have a wrong means;

cruelty and blood bath involved in the violent means cannot achieve fair social order and means are as important as goals. Any struggle to be fought therefore had to be through peaceful means in which persistence of truth (Satyagraha) was seen as a main weapon.  He viewed the caste-ridden Indian society as one perpetrating violence on the lower social strata. A non-violent social order was such that would be non-violent on the lower social strata. He asked for a total social transformation to achieve peaceful and non-violent society and means for such a struggle were also promoted to be peaceful.

159

Truth  Gandhi considered truth as the most powerful

but also a most difficult weapon in the fight for justice. He believed that only the fearless could use this weapon.

160

Sarvodaya  Sarvodaya is Gandhian way to welfare economics. It means welfare

of all, which does not happen if the welfare of the last strata does not take place. Sarvodaya is a comprehensive vision of Indian society, a village level movement and building of society from below. It is not a utilitarian approach but a moral approach. It includes individual as well as collective and encompasses all dimensions of social existence and not only economic.  He argued that it is more important to have allegiance to the duties than the rights if Sarvodaya had to be achieved. This means that sacrifice is important dimension of human practice. Fearlessness, sacrifice and truth are the three ways to achieve Sarvodaya.  Lastly, such a world order was non-competitive and humane, which was based on absolute acceptance of purity of means of achieving noble ends and not on conflicts and exploitation.

161

Antyodaya  Antyoday means the development of the

person who is last in the social and economic hierarchy. Any development that did not reach this last stratum of society was not development according to Gandhi.

162

Self-governance (Swaraj)  Gandhi's concept of democracy was self-governance. This was democracy

of the masses and not electoral democracy as we visualise now.  Ideally, self-government would mean no State in which every one's opinion and interests mattered and not only of the majority and that could be installed only through consensus and negotiations. He said that the democracy practiced in the world was electoral democracy, which is the rule of the majority that coerced minority to accept the decisions of the majority. However, till such a democracy was installed, in the interim period, one could do with a democracy in which the government was elected by the majority.  He gave Swaraj (self-rule) as his political programme and Panchayati Raj as programme for governance. In place of the State and its institutions he canvassed that the village level institutions, such as the Panchayats would address the issues of governance.

163

Volunteerism  He believed that the true democracy could only be

built from the grassroots, through voluntary efforts and moral authority. Community development activities therefore have been always visualised as voluntary activities in India, especially for those who come from Gandhian ideology. This practice gave currency to the term 'voluntary organisations' whose mandate was development activities with community support.

164

New Education (Nai Talim)  Gandhi believed that education is the basic tool for the development of

consciousness and reconstitution of society and therefore an important tool of social change. Also, education was for livelihood and for becoming a good person. He argued that Education was not for bringing in a new Brahminical order. He believed that the education in India had alienated the educated people from their society and these people did not give back to the society what society had given them.  His New Education (Nai Talim) was woven around the work so that the cost of education can be taken care by remunerative work. Education consisted of imparting skills, along with promoting capability to read, write and count. This he called basic education. He said that basic education and bread labour would bring equality between rural and urban areas and between different classes of society.

165

Trusteeship  Gandhi himself denied property for himself, but did not come out fully

against private property and capitalist accumulation. Nor did it consider it wrong to increase wealth through productive activities. But, instead of holding that wealth privately, he suggested that it should be managed by the capitalists who should consider themselves as the trustees of the property created by labour. Increase in wealth by the capitalists was to be not for their own sake but for the sake of the nation.  Similarly, he believed that the landlords were the trustees of a the land for the tilling peasants and therefore he did not emphasise much on land reforms. This concept of trusteeship evolved from his deep religious conviction that everything belonged to God and human beings could hold property or talent only as the trustee of God.  This principle of trusteeship was imbibed in the Trade Union movement. First such trade union was started by Gandhi in Ahmedabad in 1918 and this was called Textile Labour Association (TLA). This was in a way a nonviolent method of conflict resolution.

166

167

168

169