| In 1945, the United Nations Organization (UNO) was | | | | The reader should be warned because I cannot give |
| established to avoid a new world war. Another goal | | | | a complete sketch of the existing theories of |
| of the UNO was to eradicate poverty in the | | | | development, only a few important theories will be |
| developing countries. This goal was and is still is a | | | | discussed. In the fifties, modernization theories |
| very important reason for the existence of the UNO. | | | | dominated the foreign aid of the 'developed to the |
| The most important 'instrument' to fulfill was the | | | | underdeveloped countries'. Development is being seen |
| creation of the International Bank for Reconstruction | | | | as a linear progressive movement of a 'traditional' |
| and Development (IBRD) or better known as the | | | | society into a state which can be perceived as being |
| 'World Bank'. In October 2005, the UNO celebrated its | | | | a 'modern society'. The example of the emergence |
| 60th anniversary. What has it accomplished in terms | | | | of the nations in the Northern hemisphere is being |
| of eradicating poverty in developing countries? The | | | | used to define the term 'modern'. Furthermore, the |
| sad truth is that 80% of the world population | | | | development is being seen as a result of technological |
| controls only 20% of the world's resources; this | | | | innovations. The World Bank can nowadays still be |
| means that 20% of the population controls 80% of | | | | identified as the major producer of the modernization |
| the world's resources. This is not some sort of | | | | theory. Economic growth is the key concept in this |
| 'secret' fact, but something that most people know. | | | | theory. If the shortage of capital problem in the |
| Why is this sad reality a fact? | | | | developing countries is solved, poverty will vanish and |
| The first problem is related to the policy process | | | | an autonomous process of development will come |
| itself. This process is unfortunately not being done in | | | | into motion. Economic dualism - the existence of, on |
| a straightforward and rational way; on the contrary. | | | | the one hand, a modern export-oriented sector in the |
| It is full of ambiguities and conflict. The second | | | | economy and a local sector producing domestic |
| problem I would like to discuss in this article can be | | | | commodities on the other hand - is being seen as an |
| found in the theories of development. I have never | | | | obstacle. The traditional sector (or informal sector) |
| encountered a universal theory of development. This | | | | must be eliminated in this view. |
| is not surprising because the strong impact of | | | | The developing countries in turn, reacted by |
| theories of development on policies for development | | | | introducing their own theories. In the years |
| is not fully realized. Consequently, policies of | | | | 1949-1950, Prebisch (the secretary of the Economic |
| development are always incomplete because there is | | | | Commission for Latin America) posed a theory called |
| no universal strategy available to cope with the | | | | the center-periphery vision. The economies of the |
| problem of development. | | | | Latin American countries are situated in the periphery, |
| Development aid policy | | | | whereas the industrialized western countries are |
| In general, the literature concerned with the policy | | | | situated in the center. In order to change this |
| process is dominated by a particular view. This view | | | | situation, which only preserved underdevelopment, |
| is connected with the 'rational-actor paradigm'. In this | | | | Prebisch proposed to introduce rapid industrialization |
| rational-comprehensive-policy model, the | | | | by substitution. The dependencia school (advocated |
| decision-making process is purely based on rational | | | | by Frank and Dos Santos) goes even further than |
| and objective criteria. The role of objectively acquired | | | | the center-periphery school. In this school, the |
| information forms the basis of policy in this model. | | | | importance of the form and intensity of international |
| This standardized model is assumed to be universally | | | | relations are being stressed as a strong variable |
| applicable in every policy 'system', sector, or problem. | | | | which affects economic progress in developing |
| The following aspects represent this model: | | | | countries. |
| 1. Clarification of values or objectives distinct from | | | | In the west, new thoughts arose as a reaction to |
| and usually a prerequisite to empirical analysis of | | | | the deficiencies of the 'traditional' views. The so-called |
| alternative policies; | | | | unified approach emerged (advocated by Myrdal and |
| 2. Policy formulation is therefore approached through | | | | Gamini Corea - secretary of UNCTAD and UNRISD). |
| means-end analysis. First the ends are isolated, then | | | | The most important argument of this approach is |
| the means to achieve them are sought; | | | | that aid must be directed towards the groups with |
| 3. The test of a good policy is that it can be shown | | | | lowest incomes or who are the poorest. But the |
| to be the most appropriate 'tool' to achieve certain | | | | developing countries did not accept this modified |
| ends; | | | | view because they experienced it as an intervention |
| 4. Analysis is comprehensive; every important and | | | | in their own internal affairs. In addition, the developing |
| relevant factor is taken into account; | | | | countries demanded a New International Economic |
| 5. Theory is often heavily relied upon. | | | | Order. This New Economic Order should be based on |
| The separation of policy preparation or planning and | | | | justice, sovereign equality, mutual dependency, |
| execution or implementation is a vital characteristic in | | | | common interests and cooperation between all |
| the rational comprehensive methodology. | | | | states. Unfortunately, the structural changes of the |
| Implementation is being seen as a logical outcome of | | | | international system in favor of the third world have |
| a well-prepared and formulated plan. But in the | | | | not happened. But the discussion around the New |
| implementation of the aid policy, numerous projects | | | | Economic Order resulted in the so-called Rio-project. |
| failed due to negligence of the execution of the goals | | | | The members of the Rio-project developed a new |
| formulated. This implementation problem is not only | | | | development strategy where the emphasis is laid on |
| limited to development aid policies, but it has also | | | | the self-reliance aspect of the developing countries. |
| been traced in numerous other policy fields. | | | | But the western nations have not stimulated this |
| A second property of the rational-comprehensive | | | | self-reliance concept. |
| model is the consensus of the problem. It is being | | | | Personal reflections |
| presumed that the development of a certain country | | | | I have lived for more than 30 years in a developing |
| is not problematic at all. All parties involved (donor | | | | country (Indonesia) and this country has received |
| and developing country) have reached an agreement | | | | billions of dollars in terms of aid and loans. What is the |
| and the strategy chosen is therefore the result of a | | | | end result? Tens of millions still live in poverty. With |
| consensus of all parties involved. None of these are | | | | the exception of the lucky few, some have been |
| true in reality. Development aid policy is the result of | | | | able to improve their lives thanks to a combination of |
| negotiations between the actors involved. Actors | | | | education and luck. A minority (mostly of Chinese |
| with business interests, actors from the developing | | | | descent) has been able to improve their situation due |
| countries self and last but not least, the actors with | | | | to their skills as traders. However, corruption is |
| political interests are constantly engaged in | | | | rampant and the new-born democracy has not been |
| negotiations. It is not difficult to imagine that the | | | | able to solve all these problems. It will take many |
| actor with the strongest bargaining position | | | | years before so-called 'sustainable development' can |
| possesses the power to overwhelm the actor actors. | | | | be achieved. Even with educating more people, the |
| It is not the objective scientific planner or other kind | | | | situation will not improve in the short term. Despite |
| of specialist who has the final word. In most cases, it | | | | the availability of abundant natural resources, the |
| is the most powerful actor(s) who wins. | | | | situation remains dim. If nothing is done against |
| A final aspect related to this model is the role of | | | | deforestation, all the tropical forests in this country |
| objective knowledge as an important pillar in the | | | | will be gone in 2010; that is only four years from |
| decision-making process. It is being assumed that | | | | now. The situation might even get worse due to the |
| knowledge is the key to success. The more | | | | inability of the majority to compete with other |
| knowledge about the issue is available, the easier it is | | | | countries in terms of industry, trade, and services. |
| to solve the issue, in this case, the 'development | | | | Better future? |
| problem'. This knowledge does not come from a | | | | Nowadays, everybody is talking about globalization as |
| magic box. On the contrary, it comes from strict | | | | the 'cure for all diseases'. |
| scientific research. So, scientific research is the source | | | | The developing countries, however, are still suffering |
| of knowledge and henceforth plays a crucial role in | | | | from underdevelopment, poverty, and human rights |
| policy-making processes. The influence of the actors | | | | violations. How can globalization solve all these |
| is neglected because they have reached a consensus. | | | | problems? The dawn of the 21st century is not |
| In reality, scientific research plays a very marginal and | | | | marked by a better global situation, but by more |
| minor role in the policy-making process. Policy makers | | | | global instability with individual states scrambling for |
| only use scientific findings when it is in accordance | | | | nuclear weapons, a senseless 'war against terrorism', |
| with their own ideas. Policy makers draw policies on | | | | destruction of the environment, and doubling of the |
| the bases of their own good judgments and | | | | population in the next 40 years. It will take a lot |
| experience and not on scientific findings. Afterwards, | | | | effort from all people in the developed and the |
| they tend to seek objective findings which actually | | | | developing world to solve all these problems and |
| support their policy which has been formulated long | | | | create a better world for our children and |
| before. | | | | grandchildren. |
| Theories of development | | | | |