Concentration On Economic Wealth Economics Essay

Concentration On Economic Wealth Economics Essay

The writer conceptualizes development as ‘the spread between an sole concentration on economic wealth and a broader focal point on the lives we can take ‘ ( p.14 ) stressing that the theory of development goes good beyond wealth accretion and gross national merchandise growing. The chapter examines the relationship between development and freedom, the manner in which freedom is a constituent of development and the extended position of ‘freedom ‘ embracing both chances that people have and the procedures that allow for ‘freedom ‘ of determinations.

The chief statements of the writer is that development should be assessed by ‘freedom ‘ of handiness to factors such as societal chances, wellness attention, clean H2O, economic security, civil rights and political freedom. Lack of handiness means ‘unfreedom ‘ . Development hence should intend that people can populate the lives they want to populate and the person, the footing of rating.

The chapter besides compares and contrasts different positions of poorness in both development and developed state by analysing ‘freedoms ‘ through values, poorness and inequality, income and mortality, markets and freedom, tradition and civilization. The writer sees the procedure of development beyond economic growing or physical and human capital and concludes by associating the apprehension of a wide position of the development procedure to the substantial ‘freedoms ‘ of people.

Sen ‘s write up contains interesting positions but he did n’t advert what justifies his categorization into these ‘freedoms ‘ or how far ‘freedom ‘ has progressed within each context he identified. His definition is rather different from Rapley ‘s in which Rapley describes development as “ more concerned with flexibleness and adaptability ” ( Rapley 2007 pp 5 ) and so raises some inquiries. How can a state say it has ‘freedom ‘ when its citizens can non afford the really basic necessities of life or carry through the rights they are entitled to? At the same clip, Can development be measured by single felicity without economic growing and stableness? The writer makes an statement for this but in my sentiment, single felicity should be incorporated into the developmental procedure of economic growing.


Willis, K. ( 2005 ) Theories and Practices of Development. London. Routledge. p. 32-42

Willis ‘ chapter 2 of theories and patterns of development analyses development theories and patterns and how these theories were attached to the economic, societal and political theories that developed in Europe from the eighteenth century. She divides the survey into assorted theories. The classical economic experts such as David Ricardo, an advocator of free trade and Adam Smith, in his celebrated book, Wealth of Nations ‘responded to the trade focal point of economic policy at that clip ‘ ( p.32 ) when trade was a major factor of economic growing. Here, protectionist steps such as high duties were extremely used by merchandisers.

Willis goes on to state Adam Smith was non in favor of this signifier of ordinance and that it was harmful to the state ‘s economic growing. Alternatively, greater focal point on production and division of labor which will be regulated by the ‘invisible manus of the market ‘ ( p.33 ) .

The Great depression of the 1930 ‘s and other economic occurrences gave rise to Keynes statement of the free market non needfully a positive force but authorities intercession in the publicity of economic growing while postwar Reconstruction period was a clip to reflect on the economic crises that occurred at that clip and supply solutions to their re-occurrence. This led to the creative activity of the Bretton forests establishments to help in the publicity of ‘stable economic growing within a capitalist system ‘ ( p. 36 )

Forth from here, Willis describes the additive phases theory and makes accent on Rostow, the American economic expert and political theoretician ‘s phases of Economic growing to development. Here, development was seen as a province where a big figure of the population could afford to pass mostly on consumer merchandises and development was viewed as modern, traveling from agricultural societies to an industrial economic system.

Willis ‘s reading raises some interesting facts about historical development of theories. While she tries to decode early theoretical thoughts, she has non made clear linkages between some of the theories and how they have come to germinate in economic arguments over clip.


Chang, H. , and Ilene G. ( 2004 ) ‘Reclaiming Development from the Washington Consensus ‘ , Journal of Post Keynesian Economics, 27 ( 2 ) , 274-291

The fundamental of this article is to rectify the impression that there is no alternate to the Washington Consensus in developing states. The writers argue against this because ‘neoliberal policies have failed to accomplish their ends in developing universe ‘ . ( p. 274 ) .Chan and Grabel discuss the major development myths used in warranting neoliberal policies that have been harmful to developing universe and possibly more hearty, discuss options to these policies.

These myths, evaluated separately, depict how these policies have lacked credibleness. Myth 1 ; In contrast to the neoliberal policy success, the world is that the policy has non promoted its chief purpose of economic growing. Myth 2 ; Developed states gained success through free market policies whereas records claim they relied upon interventionist policies for development. Myth 3 ; Merely neoliberal policies can win in today ‘s planetary environment whereas in fact there is grounds of ‘continuing institutional and policy divergency across national boundaries ‘ ( p. 277 ) Myth 4 ; Discipline imposed by international establishments to maintain them honest whereby puting policy doing authorization in the custodies of these organisations. Myth 5 ; The East Asiatic theoretical account can non be replicated when in fact most developed states utilized this theoretical account. Myth 6 ; Developing states should copy the Anglo American theoretical account of capitalist economy which fared ill in the economic roar of the 1990 ‘s.

The writers went in front to set frontward alternate policies for faster economic development which includes the fiscal system supplying equal finance measures for investing undertakings at appropriate monetary values, implementing rigorous Torahs on new foreign loans incurred by domestic borrowers, defocusing on budget balance, maximising FDI potencies to advance economic and industrial development in developing states

While reasoning for these policies, it will be reasonable to observe that economic systems are different and there can be no ‘best pattern ‘ policy that everyone should utilize ( Chang 2003 ) . Policies for development therefore should non be ‘fixed ‘ but depend on phases of development of a underdeveloped state and other factors such as resource capacity, economic, political and societal conditions.


Chang, H. ( 2003 ) Kicking off the ladder. Development Strategy in Historical Perspectives. London, Anthem Press. Chapter 1.

Chang ‘s analysis centres around one inquiry, ‘How did the rich states truly go rich? ‘ He uncovers some myths about developed states developmental experience and argues that developed states did non develop through the same policies that they recommend to the underdeveloped universe.

This force per unit area from developed states to the developing universe to follow a set of ‘good policies ‘ that they adopted when they themselves were developing is faced with unfavorable judgments because ‘historical grounds suggests otherwise ‘ and goes on to state that they are seeking to conceal the ‘secret of their success ‘ ( p. 2 ) .

Some of these policies include liberalisation of trade, denationalization, restrictive macroeconomic policies and deregulating but facts show that most of the developing states used export subsidies and industry protection, industrial policies that the WTO disapproves in the present universe. The USA and UK were illustrations of fervent users of these same ‘policies ‘ frowned at in contrast to the free trade policies and free market they preach.

Chang quotes List, the German economic expert that ‘Britain was the first state to hone the art of infant industry publicity ‘ which is the rule behind most states journey to success ( p. 3 ) . He argues that developed states, while avering to urge good policies to developing states are really seeking to ‘kick away the ladder ‘ of their ain economic development.

A decision is drawn on some methodological issues of David Ricardo ‘s neoliberal policies to Friedrich List ‘s infant industry statement that while developed states preach Ricardo to developing states, they really pursued List ‘s policies in the yesteryear.

Although Chang did non face and compare plants of economic historiographers e.g. L.E Birdzell ‘s How the West grew rich in relation to his How did the rich states truly go rich to place similar or different decisions, his scrutiny of historical stuffs to make of import and interesting decisions is a part that is vastly valuable to the current arguments on development that will decidedly dispute modern-day policies and enrich development theory.


Pender, J. ( 2001 ) ‘From Structural Adjustment ‘ to Comprehensive Development Framework ‘ : Conditionality Transformed? ‘ Third World Quarterly, 22 ( 3 ) , 397-411

Pender reviews how the World Bank ‘s attack to development has changed over decennaries and brought approximately of import displacements to its conditionality attack. In the visible radiation of new positions between the 90 ‘s and today, the World Bank formulated a Comprehensive Development Framework, based on a relationship of partnership to replace its former structural accommodation loaning ( p. 397 ) .

The writer analyzes why the World Bank ‘s positions of development changed through different periods ; In the 1980 ‘s to early 90 ‘s, GDP was used as a step of development as the Bank was largely concerned with rapid economic growing and nutriment for least developed states ( LDC ) and the acceptance of policies such as limitation of province disbursement, commanding rising prices, trade good exports and denationalization as factors to accomplish development.

The 1990 ‘s drew deficiency of assurance in these policies and there were strong uncertainties about its competency judgment from the success of the Asiatic Economies that developed quickly without the World Bank ‘s policy prescriptions. This informed the Bank to alter its 1980 position about minimum province function in development and that ‘growth by itself is non adequate ‘ ( p 401 ) . Therefore in 1990, a preparation of an attack based on both ‘labour intensive growing ‘ and ‘widespread proviso of basic societal services ‘ ( p.401 ) . In malice of these changes, there were unfavorable judgments that the Bank reforms were non helping Africa ‘s growing but instead, increasing dead economic systems through the execution of the Bank ‘s policies.

Harmonizing to Pender, the Bank lost assurance in its policy model in early 1995, with the Asiatic miracle and LDC ‘s failure and was forced to review its ain policies and re-orientate. This alteration was experimented between 1995-1997 with ‘improvements in the apprehension of economic development ‘ and poverty decrease as the cardinal focal point.

The writer gives clear informed positions of the procedure of policy alteration within the World Bank at different times but fails to analyse the impact of this new focal point of poorness decrease and its success to the development of today ‘s 3rd universe states.