New View of Development

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New View of Development
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Dudley Seers (1969)

• The questions to ask about a countrys
  development are therefore

• What has been happening to poverty?
• What has been happening to to unemployment?
• What has been happening to inequality?

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If all three of these have declined from high
levels, then beyond doubt this has been a period
of development for the country concerned. If one
or tow of these central problems have been
growing worse, especially if all three have, it
would be strange to call the result development
even if per capita income doubled. Dudley Seers
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Edgar Owens (1987)

• Development has been treated by economists as if
  it were nothing more than an exercise in applied
  economics, unrelated to political ideas, forms of
  government, and the role of people in society.
  It is high time we combine political and economic
  theory to consider not just ways in which
  societies can become more productive but the
  quality of the societies which are supposed to
  become more productive - the development of
  people rather than the development of things.

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World Development Report 1991

• The challenge of development..... is to improve
  the quality of life. Especially in the worlds
  poor countries, a better quality of life
  generally calls for higher incomes - it involves
  much more. It encompasses as ends in themselves
  better education, higher standards of health and
  nutrition, less poverty, a cleaner environment,
  more equality of opportunity, greater individual
  freedom, and a richer cultural life.

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Human Development Report 1994

• Human beings are born with certain potential
  capabilities. The purpose of development is to
  create an environment in which all people can
  expand their capabilities, and opportunities can
  be enlarged for both present and future
  generations. The real foundation of human
  development is universalism in a acknowledging
  the life claims of everyone ..... Wealth is
  important for human life. But to concentrate on
  it exclusively is wrong for two reasons. First,
  accumulating wealth is not necessary for the
  fulfillment of some important human choices....
  Second, human choices extend far beyond economic
  well-being.

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Human Development Report 1996

• Human Development is the end - economic growth a
  means. So the purpose of growth should be to
  enrich peoples lives.
• Growth has been failing over much of the past 15
  years in about 100 countries...And the links
  between growth and human development are failing
  for people in many countries...
• Widening disparities in economic performance are
  creating two worlds - ever more polarized
• Short-term advances in human development are
  possible-but they will not be sustainable without
  further growth. Conversely, economic growth is
  not sustainable without human development.

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Todaro Three objectives of development

• To increase the availability and widen the
  distribution of basic life-sustaining goods such
  as food, shelter, health, and protection
• To raise levels of living including, in addition
  to higher incomes, the provision of more jobs,
  better education, and greater attention to
  cultural and humanistic values, all of which will
  serve not only to enhance material well-being but
  also to generate greater individual and national
  self-esteem
• To expand the range of economic and social
  choices available to individuals and nations by
  freeing them from servitude and dependence not
  only in relation to other people and
  nation-states but also to the forces of ignorance
  and human misery.

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Indicators of development

• real GDP per capita using purchasing power parity
  exchange rate
• Human Development Index
• Human Suffering Index
• Capability poverty measure

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Human Development Index

• based on three indicators
• longevity- measured by life expectancy at birth
• educational attainment- measured by a combination
  of adult literacy(2/3 weight) and combined
  primary, secondary and tertiary enrolment ratios
  (1/3 weight)
• standard of living- measured by real GDP (PPP)

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Human Suffering Index

• ranks countries based on 10 measures
• life expectancy
• daily calorie supply
• access to clean water
• immunization
• secondary school enrolment
• per capita income
• rate of inflation
• communications
• technology
• political freedom and civil rights

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Capability poverty measure

• poverty is defined as an unacceptably low
  material standard of living, either relative to
  the standard of others in a society or on the
  basis of some absolute minimum
• is a simple index composed of three indicators
  that reflect the of population with
  capabilities shortfalls in 3 basic dimensions of
  human development
• living a healthy, well-nourished life
• having the capability of safe and healthy
  reproduction
• being literate and knowledgeable

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The 3 corresponding measures are

• the of children under 5 who are underweight
• the of births unattended by trained health
  personnel
• the of women aged 15 years and above who are
  illiterate

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Correlation between GNP per capita and indicators
of living standards (1991)
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