Much of the confused and mistaken thought and practice regarding
development derives from the fact that almost all people take
for granted a particular and highly objectionable conception of
what development is, when there are other and very different conceptions
that are almost never recognised.
The conventional conception of development sees the problem essentially
in terms of increasing the amount of economic activity going on,
i.e., the amount of production for sale. The key to this goal
is to increase investment, so productive capacity can be increased.
Therefore savings must be increased, loans sought, and foreign
investment encouraged. Exports must be increased, in order to
earn the money needed to import things that can't be produced
yet, and to accumulate tax revenue needed to build the infrastructures
such as power stations that foreign investors and local entrepreneurs
need. Labour must be supplied to the new businesses and so people
must be encouraged to leave their subsistence villages. In recent
years there has been increasing emphasis on the importance of
maximising the freedom for individuals and firms to trade without
regulation and interference with market forces. This is claimed
to maximise the efficiency of economic processes, whereas government
regulation can prevent capital from flowing to where it can be
most productive.
The conventional development economist admits that this process
will greatly increase inequalities, and the few with capital
and access to education will get most of the benefit, but the
claim is that in time there will be trickle down benefits to all.
The concern in this paper is not with how badly this conventional
approach to development has worked out, but it should be noted
that it has been extremely unsatisfactory for most of the world's
people. (Trainer, 1989, 1995, 1997.) It has certainly produced
a great deal of development, but almost all of it has only been
of benefit to the rich few in the world. Most of the poorest
people in the Third World have not only gained very little, many
have lost the productive capacity they used to have as their economies
have been developed only into those forms that serve the rich.
Many are now actually getting poorer. The UN's 1996 Human
Development Report , (1996) emphasises that one third of the
world's people, 1.6 billion, are actually getting poorer from
year to year. There is an increasing amount of literature saying
that conventional development has failed and cannot solve the
problems. Globalisation is making this situation worse. (See
for example Chossudovsky, 1996.)
The concern in this paper is to make clear that almost all
discussion of development is only about the capitalist conception
of development when many other conceptions are possible.
Conventional development must be understood as involving a theory
and practice which allows development to be determined by what
suits those with capital to invest. It is most unfortunate that
many people have no idea that there is or could be any alternative
to this particular, warped and highly objectionable conception.
Let us look at the key elements in the conventional conception
of development.
1. Development is taken to be primarily about increasing
production and consumption. Conventional development theory
simply takes economic growth as the supreme, indeed often the
sole goal. Obviously increasing sales, business turnover and
the GDP is the top priority for those with capital to invest.
2. The key to development is therefore seen as investment.
Conventional development theorists insist that it is important
to encourage and assist those with capacity to produce. But produce
what? Produce what people, society and the environment need?
The most basic point to be understood about capitalist development
is that people with capital never develop and produce the
things that are most urgently needed. They only produce things
that will maximise their profits, and these are always industries
and goods for relatively rich people, especially for the Third
World rich and for export to the rich countries.
3. Because development is primarily about increasing economic
activity as much as possible it is necessary to become heavily
involved in the global economy, to host foreign investment,
to trade a lot, to take loans. This is great for the corporations
and the banks of the rich countries because it means they can
do lots of profitable business. They can buy your exports, get
access to your resources, sell you imports, set up mines and factories,
organise loans, etc. If on the other hand the Third World had
adopted a conception of development which put a high priority
on national independence and autonomy and sought to minimise economic
relations with outsiders, the corporations and banks of the rich
world would be able to do far less business.
4. The supreme goal in conventional development is growth;
i.e., increasing the volume of production and consumption over
time, without any limit in sight, without any point at which we
might say, "We have now had enough development", or
"We are now developed." This is again most important
for those with capital, because they want to go on investing their
ever-increasing quantities of capital and that means they want
to see the total volume of producing and selling that is taking
place increase without end.
5. Conventional development theory seeks to maximise the
"freedom of enterprise" and the scope for market forces.
This means allowing those with capital and those with most money
to spend, to produce, buy and sell and develop whatever suits
them. Governments are increasingly discouraged from regulating
or influencing development because this would be to "interfere
with market forces". This is precisely the arrangement wanted
by those with capital to invest. They do not want their capacity
to go after the maximum return on investment to be restricted
in any way.
This explains the most glaring contradictions in any country,
rich or poor, i.e., the fact that great and unmet need exists
alongside development of frivolous, luxuries and wasteful industries
and products, and production that is only for the rich. This
happens because those with capital are allowed the freedom to
produce what is most profitable for them. This is most obvious
where millions go hungry in countries exporting large quantities
of luxury crops to rich countries. However, to develop what is
appropriate in view of the needs of people and their environments
would be to make sure the productive capacity went into the right
purposes, not into those ventures that would maximise profits
-- but this is precisely what does not happen when the conventional,
capitalist development path, with its emphasis on freedom for
corporations, is taken.
To put this in another way, conventional development is indiscriminate;
it allows those with capital to produce whatever they like, wherever
they like, and to sell it to whoever they like. Society is not
supposed to be able to say, "But that is unnecessary",
or "But only the rich could buy that" or "There
are things that should be produced first." Central in an
appropriate development strategy would be making sure that scarce
development resources went firstly into the most urgent developments
and products, but this would not be what those with capital would
want to have to do.
If you allow market forces to determine resource distribution,
the rich will get almost all of them and those in most need will
get few if any. This is why one-third of the world's grain production
goes to feed animals in rich countries while at least 800 million
are hungry. If you allow market forces to determine what is developed
the result will be mostly the development of inappropriate industries.
This is why most of the development taking place in the Third
World is not of industries that will produce the things most urgently
needed. Clearly the market is an appallingly inefficient and
unjust mechanism for determining the allocation of resources and
for determining what is developed.
All these elements in the conventional approach to development
are precisely the procedures and principles that capitalists want,
and clearly all contradict what would happen in any morally defensible
or appropriate development strategy. Globalisation constitutes
a vast and rapid increase in the extent to which corporations
and banks are getting access to and taking control of Third World
productive capacity, resources and markets. Conventional development
is increasingly being recognised as plunder, as little more than
a process whereby Third World economies become geared to producing
for the benefit of rich countries and their corporations. (Goldsmith,
1997, Chossudowsky, 1997, Rist, 1997, Trainer 1995a.)
An infinite number of non-capitalist development models could
be imagined. For example the goal of development could be to
increase a society's religiosity, so building temples might be
the main construction focus, and the work week might be reduced
so that people had more time for worship.
Thus it is up to a society to select a conception of development.
It is quite wrong to assume that there is only one process which
constitutes development, and which the rich countries have undergone,
and the only question is how to get it going in poor countries.
Following is a very different conception of development to the
conventional or capitalist conception, one which can be labelled
"appropriate" development.
1. No attention whatsoever is given to the GDP. The
goal of development will emphatically not be to increase it.
Firstly, because global resources are extremely scarce and dwindling
the top priority for a sustainable world order is to reduce
resource use and therefore the amount of producing and consuming
going on, as much as possible. Secondly, as has been explained
above, to increase the GDP has little or nothing to do with improving
the quality of life of most people, or improving social cohesion
or improving the environment. In fact all these things are deteriorating
in rich countries now. (See for instance Easterlin, 1972, on
the fact that a rising GDP is not accompanied by a rising levels
of happiness, and Eckersley 1997, on falling quality of life measures
in rich countries.)
2. The goal is emphatically not to reach the "high living
standard", the affluent-consumer society of the rich countries.
That is totally impossible for all people. A few have it only
because they are taking far more than a fair share of world resources,
and this condemns billions of people to serious deprivation.
The goal of development must be to provide humble, frugal but
quite sufficient material living standards to all. This means
putting relatively little emphasis on production and consumption
as a social goal, but focusing on other things, such as cultural
development, ceremonies, leisure, community building, improving
the environment, education etc. By opting for The Simpler Way
and against the high consumption way we will avoid many terrible
traps, like having to work far too hard, having to become heavily
dependent on the global economy and the corporations and banks,
having to compete frantically against all others to win export
markets, having to get into impossible levels of debt and having
to face up to Structural Adjustment Packages and thus losing control
over your own economy.
It must be stressed that the appropriate development strategy
is not a different means to the conventional development goal
of a rich world economy and rich world "living standards".
Central in the concept of appropriate development is the rejection
of affluent living standards as impossible for all (Trainer, 1995),
ecologically unsustainable and as a mistake because they do not
deliver a high quality of life or a cohesive society.
3. What then is the goal? What is appropriate development all
about? It is simply to enable people to apply their resources,
their labour and skills and the land and other productive resources
around them to building those relatively simple things that will
do most to meet their most important needs, provide a high
quality of life to all, develop a cohesive and stable society,
and ensure a sustainable environment. This is easily done...if
this goal is clearly and genuinely adopted.
It is not at all difficult for ordinary people to work cooperatively
to build the gardens, dwellings, schools, health clinics, dams,
stores and small firms and the social arrangements which can quickly
and easily cater to the basic needs of all...if this is what people
wish to do and if governments and development agencies focus on
these goals. The responsibility of governments and aid agencies
is to facilitate this process, to provide resources and expertise
where necessary, and to enable those infrastructures and industries
most likely to contribute.
Many Third World villages are already close to this goal; many
need little change in order to provide well for all their people,
via "living standards" that are extremely low in rich
world terms and without many high-tech and expensive products
and infrastructures. Possibly the most impressive example is
given by traditional village life in Ladakh, where it is difficult
to see what further development is needed, given that people have
a very high quality of life, very strong community and spiritual
life, and live happily, in ecologically sustainable ways. (Norberg-Hodge,
1991.) You could argue that Ladakh is a better-developed society
than any rich country, despite a GDP per person of approximately
$0!
4. The focal concern must be developing small scale highly
self-sufficient economies, especially at the level of villages
and their surrounding regions. Mostly small firms will provide
things needed in the local region, using local resources. Large
scale economies involving much transporting of inputs and products
are not ecologically sustainable.
5. Development must be under participatory and cooperative
control by society. What is to be developed will mostly be
decided and organised by people in their small local regions,
through cooperative and participatory processes. Central governments
will not make most of the decisions, but will aim at assisting
local communities, e.g., with advisory services, and they will
organise those few large central industries that are needed to
provide the small regions with basic items, for instance steel.
Thus the focus of development will be, as Gandhi said, the village
and the regions in which most ordinary people live, not the city,
industry, tourism, or the arenas where capital-intensive and technically
sophisticated development now focuses.
6. Trade very little. Establish the industries that will
provide you with most of the basic things you need, then trade
only surpluses or things you can easily sell, in order to be able
to import the few important things you can't produce. Avoid
the serious mistake of exporting lots of cheap commodities in
the hope of earning enough money to be able to pay for the importation
of things you need. The world's trading systems are designed
by and to benefit the rich countries; you will be seriously disadvantaged
if you become heavily dependent on them.
7. Only allow in those foreign investors willing to produce
what you need, where you want it, and on your terms. This
means very few will want to come in! Consider net benefits carefully.
Usually it is far better if people work in local enterprises
producing things local people need, than if they work for wages
in a corporation and then buy imported goods.
8. Adopt mostly simple, appropriate technologies. Traditional
ways are often quite adequate, although minor improvements can
often be made. Don't become dependent on external experts or
spare parts or sources of capital. Make sure you can maintain
your own technologies.
9. Borrow very little, if anything. When you have opted
for relatively simple lifesltyles, and rejected the notion that
development is about attracting foreign investment and winning
the competition for exports and therefore about large infrastructure
projects, you realise that little capital or imported technology
or machinery is needed for appropriate development.
10. Don't put much emphasis on "efficiency".
Conventional economists will tell you that to follow the appropriate
path will be to make inefficient use of your resources. For example
they will argue that it is more efficient to put resources into
exporting the things in which you have a "comparative advantage"
and importing things you could make but not as efficiently as
foreign corporations can. However this leads to dependence on
the export of the one or few items that many other poor countries
are also trying to export.
The top priority must be to provide for yourself the basic necessities,
regardless of whether you can do this as efficiently as someone
else can. There will always be some foreign corporation that
could produce anything you can produce more efficiently than you
can, but it is usually much more important to be able to provide
for yourself at a slower and more costly pace than to buy from
the cheapest supplier. At least you are then secure. If you
buy the cheapest, then you are locked into having to export a
lot to pay for lots of imports, and thus into very insecure dependence
on global commodity markets.
By "efficient" conventional economists only mean most
profitable. Thus the most "efficient" investments are
those that yield most return. This means it is more "efficient"
to put land into exporting luxury crops than into feeding hungry
people!
11. Preserve and restore cultural traditions. This will
be facilitated by the fact that relatively little time and attention
and resources will need to be given to producing and consuming.
12. Put much emphasis on the development or preservation
of community, social solidarity, cohesion and cooperation.
Emphasise public goods, communal resources and property, public
service, giving, sharing, cooperation, working for the common
good, working bees and committees and town meetings. Discourage
individualism, competition and acquisitiveness. (This does not
mean society must be totally collective; it could still have private
property and private enterprise.)
13. Preserve and restore the environment. This will not
be difficult when the affluent consumer way has been rejected,
and trade with the global economy has been minimised.
14. Above all, be content to plod at a relaxed pace!
Avoid the trap of having to compete frantically against everyone
else, and having to beat everyone else or die. In conventional
development you must run with the fastest or be trampled.
Instead get into the situation where you can just move along
at your own comfortable pace, secure in the knowledge that you
can always meet your own needs in your own ways. Work out the
most easy pace for yourself, providing most of the things you
need for a high quality of life, in control of your own fate,
independent of the global economy and the rich world corporations
and banks. Let the others race after higher GDP, the latest technology,
luxury consumption, the scarce export markets, and the most sophisticated
fashions and sports cars. Those things are irrelevant to appropriate
development and a high quality of life.
The appropriate path will probably provide quite adequate material
living standards and a good quality of life to all in five years
at most. The evidence indicates that the conventional path will
never do this for the poor majority of the world's people.
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Eckersley, R., (1997), Perspectives on Progress; Is Life Getting
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Goldsmith, E., (1997), "Development as colonialism",
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Norberg-Hodge, H., (1991), Ancient Futures; Learning From
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