3LL3 Development and Public Policy

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3LL3Development and Public Policy

• Problems and Issues in Development

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Strategies of Development

• Economic growth generates wealth, creates
  employment
• Population growth adds to number of workers and
  output
• Labour productivity helps accumulate capital
  equipment and technical progress

3
Strategies of Development

• Poverty reduction to follow growth
• Poverty reduction as the primary objective of
  development policy
• Poverty reduction strategies amount to producing
  wish lists

4
Democracy and Development

• Democracy facilitates communication between state
  and citizens
• Participation allows incorporation of popular
  will in development programs
• QUESTION Is democracy essential for development?

5
Civil Society and Development

• NGOs, voluntary bodies, and professional
  associations contribute expertise to assist in
  development efforts
• Empowerment and participation are facilitated at
  various levels
• Act as channel of communication between local and
  national governments and international agencies

6
NGOs and Development

• Complement government efforts to expand coverage
• Specialized activities in certain areas enhance
  capacity
• Promote awareness of rights and responsibilities
• Facilitate integration of disadvantaged groups

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Development Aid

• Most countries are unable to finance development
  activities
• Foreign aid and investment are necessary
• Often, aid is contingent upon fulfilment of
  certain conditions imposed by donors
• Debt servicing is a huge obligation for
  developing countries

8
Development and the Environment

• Development projects incur huge environmental
  cost
• Economic growth and industrialization cause rapid
  deterioration of environment
• Capacity for achieving development without
  adverse effects limited

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Development

• Instruments economic growth, liberalization,
  democratic reforms
• Targets prosperity, equity
• Ultimate goals human development, enhancing
  lives and enjoying freedoms
• (United Nations, 1990 Amartya Sen, 2004)

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Strategies of DevelopmentProblems

• Mobilization of public money involves difficult
  taxation decisions
• Mobilization of external resources (foreign aid)
  may be tied to conditions

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Capacity Building

• A different approach to development
• Improvements in the ability of policymaking
  organizations to perform appropriate tasks

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Strategies of Development

• Free/Controlled/Mixed economy
• Models
• Developed countries? Indigenous?
• Mixed?
• Sequence?

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Development

• Process?
• Set of Conditions?
• Goal?
• New Relationships? OR,
• Unattainable Objective?