BSOG 173

RETHINKING DEVELOPMENT

School of Social Sciences

Indira Gandhi National Open University
EXPERT COMMITTEE
Prof. V. Xaxa Prof. Debal Singha Roy Prof. Jagpal Singh
TISS, Guwahati Sociology, IGNOU SOSS, IGNOU
Prof. J.K. Pundir Prof. T. Kapur Prof. Rabindra Kumar
CSS University, Meerut Sociology, IGNOU Sociology, IGNOU
Dr. Archana Singh
Dr. Srinivas Rao Prof. N. Mathur
Sociology, IGNOU
JNU, New Delhi Sociology, IGNOU
Dr. B. Kiranmayi
Prof. Madhu Nagla Prof. S.B. Upadhyay Sociology, IGNOU
MDU, Rohtak SOSS, IGNOU
Dr. R. Vashum
Sociology, IGNOU
COURSE COORDINATOR AND EDITOR
Prof. Rabindra Kumar
Discipline of Sociology
SOSS, IGNOU, New Delhi

COURSE PREPARATION TEAM

Block 1 Unpacking Development
Unit 1 Prof. B.B. Mallick, Department of Sociology BBAU Lucknow
Unit 2 Dr.Vinod Arya, Assistant Professor, Department of Sociology, Punjab Central
University, Bhatinda
Unit 3 Dr.Vinod Arya, Assistant Professor, Department of Sociology, Punjab Central
University, Bhatinda
Block 2 Theorising Development
Unit 4 Prof. Manisha Tripathy Pandey, HOD, Deptt. of Sociology, Jamia Milia Islamia,
New Delhi
Unit 5 Prof. Manisha Tripathy Pandey, HOD, Deptt. of Sociology, Jamia Milia Islamia,
New Delhi
Unit 6 Kanika Kakkar, Assistant Professor, Janki Devi College, Delhi University
Unit 7 Dr. Charu Sahawny, Independent Researcher
Unit 8 Prof. B.B. Mallick Department of Sociology BBAU Lucknow
Unit 9 Geetanjali Atri, Research Scholar, CSSS, JNU, New Delhi
Block 3 Developmental Regimes in India
Unit 10 Prof. Rabindra Kumar, Discipline of Sociology, SOSS, IGNOU, New Delhi
Unit 11 Kanika Kakkar, Assistant Professor, Janki Devi College, Delhi University
Block 4 Issues in Development Praxis
Unit 12 Dr. Omprakash Manjhi, Independent Researcher, Delhi
Unit 13 Dr. Uzma Azhar, Independent Researcher, Delhi
Unit 14 Dr. Uzma Azhar, Independent Researcher, Delhi

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COURSE INTRODUCTION
The course Rethinking Development examines the ideas of development from a
sociological perspective. It introduces students to different approaches to
understanding development and traces the trajectory of Indian experience with
development from an interdisciplinary perspectives. The course is divided into
four themes which we call blocks. Each block addresses a certain aspects of
development.

Block 1 Unpacking Development deals with understanding development, factors

and instruments of development and categorization of world in terms of
development. In the unit 1 we discussed notions related to Development, meaning
and definition of Development, and the dimensions of Development. In this unit2,
we have discussed factors of development like economic factors, political factors,
socio structural factors, religious factors, technological factors and also discuss
the instruments of development like GNP, Per capita income, poverty, Basic
need approach and human development index. In the unit 3, we discussed the
categorization of countries in terms of developed, developing and underdeveloped.
We also discussed the development debate.

Block 2 Theorizing Development deals with various theories of development.

In the unit4 , we discussed modernization, industrialization and urbanization as
the process of development. In the unit5 Perspectives on Development, we
discussed the various perspectives of development i.e. modernization theory,
Marxist and Neo-Marxist approaches of development and underdevelopment,
neoliberal perspectives, alternative development, human development and anti
development. In the unit 6,we discussed the World Systems Theory. The world
systems theory was developed by an American sociologist and economic historian,
Immanuel Wallerstein (1930-2019) in the start of 1970s as a macro sociological
perspective that sought to explain the dynamics of the “capitalist world economy”
as a “total social system” (Martinez-Vela 2001). Wallerstein’s works The Rise
and Future Demise of the World Capitalist System: Concepts for Comparative
Analysis published and The Modern World System I: Capitalist Agriculture and
the Origins of the European World-Economy in the Sixteenth Century published
both in 1974 provide the most comprehensive articulation of the world-systems
theory. The section 6.2 focuses on the origins of the world systems theory as an
approach critical to modernization paradigm of development. The section 6.4
provides a description of the origin of the world capitalist economy. It traces that
through history there were certain countries of the world that emerged dominant
because of their superior economic position and these dominated and exploited
other countries. In section 6.5 some of the criticisms to the world-system theory
are examined. It is seen that, despite, the criticisms on various grounds, the theory
is extremely enriching and illuminating analysis of the rise and expansion of
capitalism.

In the unit7, we discussed the perspective on human development. We explored

the development ethics and how value judgments held by policy makers influence
development policy making, implication and outcomes of development policy.
We understood that in the past, economic development was measured in terms of
economic growth while human development is seen in terms of betterment of
quality of life of human beings. The human development approach puts people
first and works towards enhancing their capability. However, the human
development approach does not exclude sustained economic growth. The
theoretiical base human development approach has been the capability approach
to development. In this unit8, we understood the environment and its related
aspects, what the environment is and what constitutes this. Then we discussed
why and what for the environment is changing in due course of human action
and interaction. Next section we discussed development and environment
discourse and then we discussed the perspective. Women have always been visible
or invisible contributors in the socio-economic as well as political development
of the society; still, development policies, legislations and strategies have always
ignored women as direct beneficiaries. The fact that has invited feminist attention
is the critique from across the various spectrums of the movement. The feminists,
on the other hand, have suggested various alternative models of development in
order to bring women to the heart of development policies. Beginning from 1970s,
feminists have worked on the intersection of women and development and owing
to their efforts; the interaction between the two variables has seen brighter side.
However, still a lot needs to be done in order to extend the benefit of development
policies to women across the world equitably; irrespective of their socio-
geographical locations.

Block 4 deals with the Development Regimes in India. The unit 10 deals with
Capitalism, Socialism and Mixed Economy. We describe the current views on
social development, including a discussion on the ‘three worlds of development’
and some recent approaches to social development. Finally, we look at the ‘mixed’
path of development, including that of India.

In this unit11, we have elaborated on Amartya Sen’s theorisation of Development

as Freedom. Development as Freedom is an agent-oriented view, focusing on
individual capability and entitlements. The freedom centred approach provides
a qualitative understanding to development. It allows viewing development
beyond the purview of economics, as a social variable. The Freedom has been
illustrated in multiple forms both as outcomes and means to development manifest
in terms of substantive capabilities and instrumental values.

In the Block4 on Issues in Development Praxis, we discussed Development,

Migration and Displacement in unit 12. In the unit 13, we looked at the issues of
Livelihood and Sustainability. The debate on development is incomplete without
discussing the basic issues of livelihood and sustainability. It also discussed the
various related aspects and how they are relevant as issues in the development
praxis.

In the unit 14, we started with the discussion on the process of inclusive
development and the relevance the grassroots initiatives have in the process of
development. We looked at different aspects of grassroots innovations and their
relationship with institutions of the state. Then, we learnt about the various
grassroots initiative programs’ like, NAZDEEK, SEWA, SAHAYOG and
MNREGA, MSME schemes, in detail being run by various groups/ organizations
and by the government for various marginalized categories and groups of people.
 CONTENTS
Page No.

Block 1 Unpacking Development 7

Unit 1 Understanding Development 9
Unit 2 Factors and Instruments of Development 21
Unit 3 Developed, Developing and Underdeveloped 34

Block 2 Theorising Development 49

Unit 4 Modernisation, Urbanisation and Industrialisation 51
Unit 5 Perspectives on Development 61
Unit 6 World System Theory 76
Unit 7 Human and Social Perspective 94
Unit 8 Environmental Perspective 104
Unit 9 Feminist Perspective 117

Block 3 Developmental Regimes in India 135

Unit 10 Capitalism, Socialism and Mixed Economy 137
Unit 11 Development as Freedom 152

Block 4 Issues in Development Praxis 165

Unit 12 Development, Migration and Displacement 167
Unit 13 Livelihood and Sustainability 181
Unit 14 Grassroots Initiatives 194
 BLOCK 1
UNPACKING DEVELOPMENT
Unpacking Development

8
 Understanding Development
UNIT 1 UNDERSTANDING
DEVELOPMENT*
Structure
1.0 Objectives
1.1 Introduction
1.2 Notions Related to Development
1.2.1 Evolution and Progress
1.2.2 Growth, Change and Modernisation
1.3 Development: Conceptual Framework
1.3.1 Meaning of development
1.3.2 Definition of Development
1.4 Dimensions of Development
1.4.1 Economic development
1.4.2 Social development
1.4.3 Human development
1.4.4 Sustainable development
1.4.5 Territorial development
1.4.6 Inclusive development
1.5 Let Us Sum Up
1.6 Further Readings
1.7 Key Words
1.8 Specimen Answers of Check your progress

1.0 OBJECTIVES
After reading this unit, you will be able to understand:
Differentiate between Evolution, Progress and Growth, Change and
Modernisation.
Meaning and Definition of Development.
Describe the dimensions of Development

1.1 INTRODUCTION
In this unit section1.2 we first discuss notions related to Development In the
section 1.3 we discuss meaning and definition of Development and the section
1.4 we discuss the dimensions of Development

Understanding development involves lots of ambiguities vis-à-vis complexities

and further guided by prominent liberal practicing ideologies. The process of
development is complex, multidimensional and brings uneven and unequal results
to different sections and communities in the society. Therefore, understanding
development and its processes require an understanding of the pedagogy and
ideology related to growth, development and prosperity involving the socio-
political and cultural matrix. In another way to acquire understanding of
*Prof. B.B.Mallick, Department of Sociology BBAU Lucknow
9
Unpacking Development development requires the indicators used by various national and international
sources, agencies and bodies to measure the phenomena of development. Such
indicators may be otherwise regarded as development indicators. Nevertheless,
development is a normative, as almost synonym of improvement, progress,
modernisation, change and growth. Development is concerned with attainment
of better life and therefore development analysis has to include the quality of life
of people and the way they live in. Quality of life includes the life longevity,
expectancy, living standard with civic amenities, household assets, nutritious
food etc. All these attributes encompass the notion of development vis-à-vis
nuances of developmental ideology, theory and praxis. In the contemporary
discourse and dialogue, development is understood as freedom, capability and
democracy. “Democracy and development are inter-linked in fundamental ways…
They are connected because democracy is a fundamental human right, the
advancement which is itself an important measure of development. They are
linked because people’s participation in the decision making processes which
affect their lives is the basic tenet of development” (United Nations 1994, para
120). Now let us discuss related notions of development.

1.2 NOTIONS RELATED TO DEVELOPMENT

As we proceed to understand the notion of “development”, we encounter several
related notion e.g. evolution, progress, growth, transformation and so on.
Therefore, it is necessary that we should have an understanding of all these notions
or concepts at the very outset even though there is tendency to use them
interchangeably.

1.2.1 Evolution and Progress

The notion of evolution is derived from the Latin word evolvere. It means ‘to
develop’ or to unfold. The concept of evolution is specifically applied to mean
the internal growth of a living organism the plants, animals etc. Moreover, internal
growth has also seen through varios stages of gradual transition. Hebert Spencer
propagated that all through the ages there had been social evolution from simple
to complex.

The notion of progress on the one hand, is used to mean to step forward. The
fundamental meaning of progress is the forward march or advancement towards
a desirable ends. There may be as many types of progress as there are desirable
ends. I t is value loaded concept The grand ideas of Morgan, Comte, Spencer,
Marx, Durkhiem, Weber and many others have examined the journey of human
society through various stages of development and progress. Now let us
differentiate between growth, change and development.

1.2.2 Growth, Change and Modernisation

In this section we shall discuss the different connotation of development as in

general perceived in the post world war second period. We shall also discuss the
impact of these notion of development in society very briefly.

Development as multiple connotations: There are several connotations about

development, such as growth, development as change or transformation and
development as modernization.
10
a) Growth: In economic terms ,development as growth refers to Understanding Development

i) An increased capacity to produce consumption goods, and a concomitant

increase in consumption patterns;

ii) An increase ability to fulfil basic human needs of food,clothing

shelter,healthcare and education;

iii) In terms of expansion of possibilities, an increase in individual choices,

capabilities and functioning.

b) Change and transformation: Any kind of alteration in the society is known

as a change. Change is value neutral concept whereas development is a
value-laden concept. The notion of development is, in other words, the
process of desired change. Development as change and transformation refers
to the economic, social, political and cultural processes of change in human
societies.

c) Modernization: Often modernization being seen as a means to development.

In the economic realm it refers to the processes of industrialisation,
urbanisation and technological transformation of agriculture. In the political
realm, it requires a rationalisation of authority in general and a rationalising
bureaucracy in particular. In the social realm it is marked by the weakening
of ascriptive ties and the primacy of personal achievement in
advancement,and in the cultural realm it is the growth of science and
secularization, along with an expansion of the literate population that makes
for what has been referred to as “disenchantment” of the world (Marlin
1990).

As development was predominantly defined in terms of increase in productivity,

economic prosperity and an expansion of the market economy. Underdevelopment
had been constructed as the phenomena of poverty, low productivity and
backwardness. There was optimism that economic growth was the fastest road
to development. From the 1950s onwards, therefore, there has been an obsessive
focus on industrialisation and growth of gross national product (GNP).It has
been assumed that the national consequences of a rapid in there will bring positive
changes in existing social conditions. However, there were several adverse
consequences duo to this development. It also causes anxiety, alienation,
fragmentation, cynicism demobilization. We need development to address the
powerlessness that people feel due to illiteracy, unemployment, lack of productive
assets and lack of knowledge.

From the above discussion we can say that the balance sheet of development
may not be very optimistic, yet it still carries the only possibility of ameliorating
long standing human problems of poverty and backwardness.

1.3 DEVELOPMENT: CONCEPTUAL

FRAMEWORK
Development, conceived along as the economic growth, is an all-inclusive
phenomenon. Its quantitative consequences are qualitative and explanatory to
the large extent. For example, if we limit ourselves to solely the economy of
development, it may further add to justify that the same implies more than 11
Unpacking Development economic growth and leading to several social consequences having a lot of
socio-cultural and political ramifications. However, economic development refers
to growth accompanied by qualitative change in the structure of production and
employment, generally referred to as structural change (Kuznets, 1966). In other
words, developing economy contributes and increases in the share of the dynamic
industrial sector, national output, employment and decreases the share of
agriculture. This explains that economic growth could take place without any
economic development. Development likewise has come a long way in the past
few decades. If we analyse the development in narrow sense we can say that
initially development is about using the state to spearhead the process of
modernising the economy, society and raising its income by providing
employment. Hence, development, in short, ostensibly means to improve the
quality of life of poor people of the world so that wealth, health, longevity and
education of these people may commensurate with those living in better off
conditions across countries. Therefore, development is more than a mere economic
change and it is not purely an economic phenomenon; rather an inclusive vis-a-
vis multi-dimensional process involving rationalisation, reorganisation and
reorientation of the entire economic and social system towards ensuring a just,
egalitarian and democratic set up.

Further to acknowledge development is a normative concept, Dudley Seers

(1972:22), the founding father of development studies, takes the position that
development nevertheless has a coherent object; i.e., “the realisation of the
potential of human personality”. He accordingly challenged the prevalent notion
of his time that development is merely commensurate with economic growth.
Therefore, he argued for a broader explanatory framework and stresses the
importance of three interdependent indicators: poverty, unemployment and
inequality.

Lesotho Ferguson (1990) demonstrates the ahistorical and depoliticising nature

of development discourse and practice. His work is an emblematic of post-
development and post-colonial theorists. He argues that certain characteristic of
“Western” ways of talking about and representing the non-West should be
understood as ideological projections rather than as a scientific knowledge about
people and places elsewhere. Hence in the views and contributions of these
theorists, the ways of conceiving and representing development that are closely
bound to Northern development agencies. It reveals more about the self-affirming
ideologies of the North than insights into the peoples of the rest of the world. In
this connection, post-development scholars of recent decades especially take the
position that development has less to do with human improvement and more to
do with human control and domination. In contrast, Esteva (1991) takes a narrower
view of the temporality of development. He is portraying it as a project directed
by the United States in an effort to consolidate its emergent hegemony at the end
of the Second World War. Where does this leave us? Ferguson’s (1994) injunction
that we address two key questions: “What is to be done?” and “By whom? In this
manners and categories, various schools of thought ought to contest the very
coherent meaning and widespread desirability of development.

1.3.1 Meaning of development

The dictionary meaning of the word “development” connotes such ideas as
‘unfolding’, ‘growth’ ‘the fuller working out of the details of anything’, and
12
bringing out the potential that is latent in something and need to be developed. Understanding Development
These connotations and ideas are relevant to understand the concept of
development. Further, development as a public policy over the last half-century
and more, grounded in industrialisation and industrialised (core) countries and
in the “periphery” of the erstwhile colonies that come to be described as the
“less developed countries” (LDCs) of the “Third World”. (The idea of the “Third
World” held connotations of the French tiers état, or “third estate,” referring to
the mass of people, and implied the idea of “the people” on a world scale—those
who oppressed by colonial rule).

Development is undoubtedly a very big, vast and generic terminology. It is a

fusion of material as well as non-material things and loaded with everything
simultaneously. Regardless of partial, prejudicial and problematics, development
process is always cyclical, linear and perpetual. Though as of date precise or
concise meaning of development is yet to be drawn or understood across societies
unanimously; no society is found escape from paradigms of development. Instead
of classification or categorisation of a society to ascertain development syndrome
therein, everybody is ostensibly hyped to believe development is equivalent to
uncommon output. Accordingly, from a micro suit perspective, fruits of
development is only reaped and realised when it adequately encompasses
everything. From the above discussion it is evident that though development
initially started solely as economic development but the scholars attributed
different and multidimensional analyses to broaden the development. Therefore,
development has to be grounded in the societal milieu and not in isolation.
Therefore, development needs to be defined and described as social development.
In this context ‘social’ means how development brings changes in the life of the
people, its organisation, functions; and its impact on different communities and
also the indicators to measure it and etc. In this manner, development means to
unfold itself, to grow fuller and matured. Hence development indicates continuous
progressive improvement in quality of life of the people, their living condition,
material possession and many other overt and covert factors.

1.3.2 Definition of Development

Gunnar Myrdal very comprehensively deliberated the concept of development.
To him ‘by development I mean the movement upward of the entire social system,
and I believe this is the only logically tenable definition. This social system
encloses, besides the so-called economic factors, all noneconomic factors,
including all sorts of consumption by various groups of people; consumption
provided collectively; educational and health facilities and levels; the distribution
of power in society; and more generally economic, social, and political
stratification; broadly speaking, institutions and attitudes—to which we must
add as an exogenous set of factors induced policy measures applied in order to
change one or several of these endogenous factors.’(Myrdal 1974:729-30).

Perroux focuses both attitudinal and mental changes which to him is the
prerequisites of development and enhancement of production. Further, he writes
development as “the combination of mental and social changes among the
population which decide to increase its real and global products, cumulatively
and in sustainable manner” (1978:65).

Todaro refers to development as a multi-dimensional process involving the

reorganisation and reorientation of the entire economic and social systems. He 13
Unpacking Development argues that development is a physical reality and a state of mind in which society
has, through some combinations of social, economic and political process secured
the way of obtaining better life. That is (i) raising peoples’ standard of living i.e.
incomes and consumption, levels of food, medical services, education through
relevant growth processes; (ii) Creating conditions conducive to the growth of
peoples’ self-esteem through the establishment of social, political and economic
systems and institutions which promote human dignity and respect; and (iii)
increasing peoples’ freedom to choose by enlarging the range of their choice
variables, e.g. varieties of goods and services (1981:56).

Rogers writes “development is a long participatory process of social change in

the society whose objective is the material and social progress for the majority
of population through a better understanding of their environment” (1990:30).

As deliberated by Szirmai that there are two distinctive ways to understand

development: (i) Development as a state or condition which is static and (ii)
Development as a process or course of change which is dynamic. The long-term
approach to development is more detached. One tries to comprehend why, in the
long term, such great difference in development occurred in the different parts of
the world (Szirmai, 1993).

According to Amartya Sen(1999) ‘Development is about the expansion of

citizen’s capabilities and fulfilling their entitlements as a citizen and
individual. Further, it requires increasing citizen’s access and opportunities to
the things they have reason to value’. His view is based on capabilities
enhancement by advocating freedom: economic opportunities, political freedoms,
social facilities, transparency, guarantees and protective security. These, he argues,
need to be interconnected. Social facilities involve institutions such as the state
and the market. Societal arrangements should be investigated ‘in terms of their
contribution to enhancing and guaranteeing the substantive freedoms of
individuals, seen as active agents of change rather than as passive recipients of
dispensed benefits’ (Sen 1999:xii). Social facilities should aim to provide
opportunities that increase the well-being of the population. He contends that
all human beings are equally entitled to enjoy a life that they value. If pursuing
freedom-for-all is about expanding citizens’ capabilities, the focus should not be
exclusively on making up for what people lack (Reid-Henry 2012). ‘Development
consists of the removal of various types of un-freedoms that leave people with
little choice and little opportunity of exercising their reasoned agency’ (Sen 1999:
xii). Further he argues the major factors that limit freedom as ‘poverty as well as
tyranny, poor economic opportunities as well as systematic social deprivation,
neglect of public facilities as well as intolerance or over activity of repressive
states” (Sen 1999:1). He argues for the removal of these major factors. Sen’s
work has a huge influence on the establishment of a new paradigm in the early
2000s. Development was “redefined in terms that include human rights as a
constitutive part: all worthwhile processes of social change are simultaneously
rights-based and economically grounded, and should be conceived of in those
terms” (Uvin 2010:168). Sen’s capability approach challenges the world-view
of elites. He manages to convince sceptical economists that social choice and
public discussion is both possible and necessary. He contends that choices about
growth strategies should be democratic (Evans 2012). “Sen has focused on the
well-being of those at the bottom of society, not the efficiency of those at the
top” (Longworth 1999). He influences the ideas and decisions made by other
14
development actors. The Millennium Development Goals are guided by Sen’s Understanding Development
ideas.

Thomas (2000) explains three ways the word ‘development’ is used. Firstly,
development as a vision means how desirable it is for the society and to take
society to the desirable direction. Secondly, development is a historical process
upholds social change over the period of time. This is inevitable and its processes
are continuous. For example, both capitalism and communism are unavoidable
results of progress which are the by product of the historical process of
development. Thirdly, development as action focuses on deliberate efforts to
bring change make it better.

Kofi Annan, Secretary-General of United Nations, while defining development

draws the disparity in the life of the people in developed and developing countries.
He vehemently spoke about freedom and the rights of the poor in his report
named In Larger Freedom (2005). To him ‘a world of interdependence cannot
be safe or just unless people everywhere are freed from want and fear and are
able to live in dignity. Today, as never before, the rights of the poor are as
fundamental as those of the rich, and a broad understanding of them is as important
parameter to the security of the developed world as it is to that of the developing
world’ (Annan 2005).

Paul Streeten while discussing the Human Development Index, writes that ‘the
approach that sees nutrition, education and health as ends in themselves… will
argue for projects… that enhance these ends, even when conventionally measured
rates of return on these investments turn out to be zero’ and this approach ‘leads
inevitably to the call for freedom by the people’ (Streeten 2009:234-36).

These above definitions are product of their time, culture-space and boundary.
These provide a holistic understanding what development is all about by focusing
different aspects of the buzz word called development. Now let us discuss the
dimensions of development.
Check your progress
1) Differentiate between change and development.
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2) Economic growth is a sufficient and a necessary condition to stimulate

development of all sections of society. Tick the correct box

Yes No

15
Unpacking Development
1.4 DIMENSIONS OF DEVELOPMENT
Development in general terms means a new stage of changing situation which
can be categorised and elaborated in different themes, framework and
perspectives. These perspectives and thematic narrations centred on a focus and
idealistic context, which may or not fit into a single frame of reference to
development of a group or nation or community. A few and important dimensions
are discussed below:

1.4.1 Economic development

Traditionally, economic development is a kind and form of development which
is mostly centred on economic activities and growth principles. The rise in per-
capita income, GDP, GNP is the indicator of economic development and growth.
This takes the economic system in a rising speed and condition. Indeed, growth
defined in this way can be seen more as the result of an economic development
process; for example the transformation of the structure of an economic system.
Economic development cannot be explained by economic factor only, and the
concept of development includes more than mere changes in economic indicator,
however economic perspective is one of the predominant perspectives of
development.

1.4.2 Social development

Development is not an isolated phenomenon. It has to be there in society and for
betterment of people in the society; therefore, development per se is social and
sociological. But development which is otherwise consider as ‘unfolding or to
grow or getting matured’ referring to an instrument of action, an act or process
for progressive improvements in the living conditions and quality of life of the
people. According to Bilance, 1997 ‘social development is the promotion of a
sustainable society that is worthy of human dignity by empowering marginalised
groups, women and men, to undertake their own development, to improve their
social and economic position and to acquire their rightful place in society…..” -
If we analyse development in sociological sense we find that development
sociology has been by and large the critical successor to 19th century theories of
development. It owes its origin to deviation from late 19th century. Development
can be understood as the problematic transition from agrarian to an industrial
social set up. There is a close relationship between growth and equity such as
‘Economic growth and social development impinge on each other, i.e. broadly
effective social progress is not possible without a socially oriented economic
and finance policy’. The important goal dominant tendency has been to relegate
question of social development is poverty alleviation. The low standard of living
of the mass of the population in developing countries is singled out as the key
issue in development.

1.4.3 Human development

According to the United Nation Development Programme (UNDP) human
development is a process of analysing people’s choices. In principle, these choices
can be infinite and change over time. But at all levels of development, the three
essential ones are there for people (a) to lead a long and healthy life, b)to acquire
knowledge and c) to have access to resources needed for a decent standard of
16
living. Human development does not end here. Additional choices, ranging from Understanding Development
political, economic and social freedom to opportunities for being creative and
productive and enjoying personal self respect and guaranteed human rights are
also inseparable parts of human development.

UNDP depicts two sides of human development: a) the formation of human

capabilities such as improved health, knowledge and access to resources and b)
the people making use of these capabilities for productive purposes being active
in cultural, social and political affairs.

According to India Human Development Report, 1999 “Human development is

a process of enlarging peoples’ choices. The most critical choices that people
should have include a long and healthy life, access to knowledge and income,
assets and employment for a decent standard of living… (But) human development
concerns more than the formation of human capabilities such as improved health
or knowledge. It also concerns the use of these capabilities”. The relevant theme
for the human development approach is to examine the relationship between
human capital that is people-centred development, where the focus is put on the
improvement of various dimensions affecting the well-being of individuals and
their relationships with the society (health, education, entitlements, capabilities,
empowerment etc.) The above-mentioned emphasis on the links between human
capital and growth constituted a step towards a multi-dimensional concept of
development, where knowledge is not only fundamental to economic growth but
an end per se, as it generates empowerment, self-reliance and a general
improvement in community and social relationships. Nowadays the concept of
development encompasses a set of elements comprised in more than one of the
above-mentioned qualifications.

1.4.4 Sustainable development

Sustainable development which considers the long term perspectives of the socio-
economic system, to ensure that improvements occurring in the short term will
not be detrimental to the future status or development potential of the system,
i.e. development will be “sustainable” on environmental, social, financial and
other grounds. The concept of “sustainable development” was first introduced
by Brundtland (1987:12), who defines development as ‘sustainable’ if it ‘meets
the needs of the present without compromising the ability of future generations
to meet their own needs’. Sustainable development implies minimising the use
of exhaustible resources, or at least, ensuring that revenues obtained from them
are used to create a constant flow of income across generations, and making an
appropriate use of renewable resources. This applies to energy (oil and oil products
in particular) but also to fish stock, wildlife, forests, water, land and air. The
concept of sustainability has also been extended beyond environmental concerns,
to include social sustainability, i.e. long term acceptance and ownership of
development changes by the citizens, their organisations and associations (civil
society), and financial and economic sustainability.

1.4.5 Territorial development

This dimension of development refers to a territorial system, intended as a set of
interrelationships between rural and urban areas, in a space characterised by the
existence of poles of attraction for human activities (production and consumption
of goods and services, but also culture and social life), and connected by 17
Unpacking Development information systems and transport infrastructures. Territorial development of a
specific region (space) can be achieved by exploiting the specific socio-
economic, environmental and institutional potential of the area, and its
relationships with external subjects.

1.4.6 Inclusive development

This new term called inclusive development concept is now added to the lexicon
of developmental studies in the very recent past of the society. It is precisely
because of ‘slow progress in living standards and widening inequality’ because
of which the World Economic Forum System Initiative on Shaping the Future of
Economic Progress last year (2017) introduced a new economic policy framework
which is otherwise termed as inclusive development. The focus is to have more
inclusive and sustainable model of growth and development to promote high
living standards for all. The framework identifies 15 areas of structural economic
policy and institutional strength that have the potential to contribute
simultaneously to higher growth rate and wider social participation network in
the process and benefits to intensify growth. As per the 2018 rank 29 countries
are in ‘advanced economies’ and 74 countries in ‘emerging economies’. Among
the emerging countries India’s rank is 62 and in trends of development —-
‘receding, slowly receding, stable, slowly advancing, and advancing’—; India
is yet categorised as advancing economies. The Inclusive Development Index
(IDI) is an annual assessment of 103 countries’ economic performance that
measures how countries perform on eleven dimensions of economic progress in
addition to GDP. It has 3 pillars; growth and development; inclusion and;
intergenerational equity – sustainable stewardship of natural and financial
resources. The key characteristic of inclusive development is (i) Inclusive
development implies social, ecological and relational inclusiveness, (ii) Inclusive
development has its roots in different disciplinary approaches, (iii) Inclusive
development is used to counter exclusive capitalist approach, (iv) Inclusiveness
refers to how access to and allocation of basic resources is systematically
organised, and (v) development refers to ecological and equitable well-being of
people.

1.5 LET US SUM UP

The concept of development is by no means unproblematic. Development has
been described as a process of change from the traditional way of living of rural
communities to progressive ways of living to modern society. Development means
people are assisted to develop themselves on the basis of their capacities and
resources. Development is more concerned with the investment in human beings
especially in the areas of education, health, social welfare etc. Social development
aims at the total development of people, which requires decentralisation of power
and decision making so that process of planning at the grass root level is made
possible. This means active people’s participation in making political and
economic decision involving their welfare. Hence development in Amartya Sen,
(1995) words ‘social development is equality of social opportunities’. It means
there is important role interplay between economic and non-economic factors to
create adequate social space and also generate social opportunity for our
understanding of the dynamics of social development.

18
 Understanding Development
1.6 KEY WORDS
Gross National Product (GNP) : It is the total flow of goods and
services produced by the economy
over a specified time period, usually
one year. To this net income flows
from abroad is added and outflow is
subtracted.

Value-laden : Attributing a value, as good or evil,

desirable or undesirable, to
something.

Value-neutral : Interpreting objectively, without

taking sides.

1.7 FURTHER READINGS

Esteva, Gustavo. 1991, “Development” pp. 1-23 in Wolfgang Sachs (ed), The
Development Dictionary. London: Zed Books

Sen, A. 1999, Development As Freedom, Oxford: Oxford University Press

Sachs,Wolfgang (edt),1992. The Development Dictionary: A Guide to Knowledge

and power.London: Zed Books.pp1-21

1.8 SPECIMEN ANSWERS TO CHECK YOUR

PROGRESS
1) Change is a value-neutral concept while development is a value-laden
concept. All cases of change do not indicate development. Only planned-
desired changes can be termed development
2) No

REFERENCES
Annan, K. 2005, “In Larger Freedom”: Decision Time at the UN. Foreign Affairs.
Available at: http://www.unis.unvienna.org/pdf/freedom_annan.pdf.
Accessed 26th March 2017

Brundtland, 1987, Our Common Future, World Commission on Environment

and Development (WCED) Oxford: Oxford University Press.

Chakravarty, Sukhamay, 1987, Development Planning: The Indian Experience,

Oxford University Press, New Delhi, p. 2-5.

Esteva, Gustavo. 1991, “Development” pp. 1-23 in Wolfgang Sachs (ed), The
Development Dictionary. London: Zed Books.

Evans, P. 2002, Collective Capabilities, Culture, and Amartya Sen’s Development

as Freedom, Studies in Comparative International Development, 37:2. pp 54-60.
19
Unpacking Development Ferguson, James. 1994, “Epilogue.” Pp. 279-288 in The Anti-Politics Machine:
Development, Depoliticization, and Bureaucratic Power in Lesotho, Minneapolis,
MN: University of Minnesota Press

Longworth, R. 1999, Amartya Sen. Nobel Prize winning economist, The Chicago  
Tribune.[Online] 28th March 1999, Available at: http://articles. chicagotribune.
com/1999-328/news/9903280117_1_inequality-economy-amartya-sen.
Accessed: 27th March 2017

Myrdal, Gunnar. 1974. “What is Development?” Journal of Economic Issues

8(4):729-736.

Reid-Henry, S. 2012, Amartya Sen: economist, philosopher, human development

doyen, The Guardian [Online] 22nd November 2012. Available at: http://
www.guardian.co.uk/global-development/2012/nov/22/amartya-sen   human-
development-doyen. Accessed 26th March 2017

Seers, Dudley. 1972. “What are we trying to Measure?” Journal of Development

Studies 8(3):21-36.
Sen, A. 1999, Development As Freedom, Oxford: Oxford University Press

20
 Understanding Development
UNIT 2 FACTORS AND INSTRUMENTS OF
DEVELOPMENT*
Structure
2.0 Objectives
2.1 Introduction
2.2 Factors of Development
2.2.1 Economic Factors
2.2.2 Political Factors
2.2.3 Socio-structural Factors
2.2.4 Cultural Factors
2.2.5 Physical and Geographical Factors
2.2.6 Religious Factors
2.2.7 Educational Factors
2.2.8 Administrative Factors
2.2.9 Technological Factors
2.3 Instruments of Development
2.3.1 Gross National Product (GNP)
2.3.2 Per Capita Income
2.3.3 Less Income Inequalities
2.3.4 Poverty
2.3.5 Development Planning
2.3.6 Human Development Index
2.3.7 Sustainable Development
2.3.8 Basic Needs Approach
2.4 Let Us Sum Up
2.5 Key Words
2.6 Further Readings
2.7 Specimen Answer of Check your progress.

2.0 OBJECTIVES
After reading this unit, you will be able to
Understand the meaning of factors and instruments.
Describe the various factors related to the process of development.
Discuss the various instrument related to the process of development.

2.1 INTRODUCTION
Previous unit we studied understanding of Development. Now in this unit we
will discuss the factors and instruments of development.
Social development is the option as a process of enlarging people’s choice to do
enjoy freedom and equivalence among them. Among these wide ranges of choices,
the most crucial part is to live a long and healthy life, being education and having
*Dr.Vinod Arya ,Assistant Professor,Department of Sociology,Punjab Central University,
Bhatinda 21
Unpacking Development access to the resources needed for the decent living standards. Along with these,
the choice such as political freedom, guaranteed human rights and a dignified
life. Development has a critical role to empower people for achieving these goals.
Social development therefore concerns more than the human capability-building,
such as improved health and skilled knowledge. It also concerns to use these
abilities. (See unit 1) Now let us discuss the factors of development.

2.2 FACTORS OF DEVELOPMENT

Before analysing the key factors involved in the context of development let us
understand first that what do you mean by factors? According to the Merriam
Webster Dictionary a factor means one that actively contributes to the production
of a result. Therefore, our concern will be to mark up into the factors which
actively contribute to the process of development. Now broadly speaking we
may divide all the factors related to the development of a society into major
domains like economic factors, political factors, socio-cultural factors (including
social-structure related factors), cultural-history related factors, physical and
geographical factors, religious factors, administrative factors, and technological
factors. Let us discuss in details as follow:

2.2.1 Economic Factors

Spengler (1957) has categorised economic factors related to development into
three main categories. In the first group he placed the main physical agents which
are involved in the production process like labour force, wealth or capital which
can be reproduced, land and natural resources which are considered as
provisionally non-reproducible wealth and applied technology. In the second
group the mechanism and the circumstances are kept. Utilisation of particular
kinds of mechanism and the circumstances lead to quantum of production and
then through the use of different agencies the finished goods and services are
catered. This category emphasise on the division of labour, price system, extent
of market, inter-sector balance and aggregate demand, etc. The third category
conceptualised by Spengler includes the major economic decision-makers and
the environment of economic decisions.

The other factors which have influential capacity in this category are the quantum
of physical and human resources and their effective utilisation and management.
Here capital investment for utilisation of physical and human resources becomes
very crucial. The technological and management level expertise along with
support of capital investment are very much needed. If the developing countries
take the help of other countries or multinational companies, there are increased
chance that the political autonomy will be influenced by these foreign countries
and agencies. If we compare the per capita income and the opportunities to
increase it of the under-developed, developing and developed countries, we may
also find the psychological disadvantage which the citizens of under-developed
and developing countries face, when they compare it with the other citizens of
the developed countries. One more interesting point is the extreme weather
conditions present in the most of the under-developed and developing countries.
These conditions also play vital role in the working capacity, crop and cattle
productivity, transportation cost and consequently on the productivity. In the
same vein Kuznets (1979) argues that per capita product is primarily dependent
on the improvement of quality of inputs and not only on quantity of inputs.
22
The vicious circle of poverty has been described as one of the other significant Factors and Instruments of
Development
factor which influences the development of different countries and specifically
the developing and under-developed countries. Nurkse (1973) highlighted the
contradictory status in under-developed countries regarding capital investment
and saving. On the one hand the availability and supply of capital for these
countries is governed by the ability and willingness to save, while on the other
hand the demand for capital is governed by the pre-requisite of investment. In
such circumstances, if the capital is scarce, it also affects the use of labour intensive
technology and thus the production level remains low. Although there are
criticisms of Nurkse’s theory which argue that humans have tremendous
capacities, which includes also the ability to break the vicious circle of poverty.

2.2.2 Political Factors

For our convenience we may classify the political factors into three groups viz.
regional, national and international. Now here we may clearly understand the
inter-wined nature of these three levels in the final outcome of any development
policy. These outcomes in the form of policies are further interacted at the levels
of national and regional levels. According to Tsantis (1969) the major political
factors which influence the development process include the duration of
independence, the westernisation and political modernisation, the ideological
orientation followed by a particular state, government stability, and the stability
of political party system. The other important political factors also consists of
character of bureaucracy, participation level of military, the vertical and horizontal
power distribution, the balance and freedom of legislature, executive and judicial
systems, freedom of civil society organisations, interest and peer groups
contributions. The receptive and integrative nature of political structure is also
significant for the above mentioned factors in the final outcomes of the
development process.

Moreover, the efforts of any government in building infrastructure, need-based

appropriate investments and control over corruption and agencies involved in
the whole process also matters a lot. The efficiency of any government to deal
with the exclusion and discrimination in the society and the ability to deliver
justice and inclusion of the marginalised into the development process also is of
prime importance.

Politics is seen as a major factor at each point of the development process, from
influencing systems of exclusion and discrimination to increasing consciousness
and appreciation of them as concerns of (in)justice, and deciding which policies
are introduced by how and how they are enforced (Hickey, Sen, & Bukenya,
2016). Adrian Leftwich (2004) described politics as all processes of conflict, co-
operation, and negotiation in determining how to own, use, create, and allocate
resources, although we also find the struggle over ideas (as well as resources).

In development process politics deal with accumulation and growth, including

through the exploitation of natural resources. It also emphasise social and civil
right protection and promotion through public services, social justice and the
rule of law. Along with that the planning sectors have to work for the recognition
of difference and inequality. There are certain number of people who rarely self-
identify or organize themselves as poor, which makes it difficult to understand
common organisation through a poverty lens.
23
Unpacking Development 2.2.3 Socio-structural Factors
If we look at any development process, we will find that it occurs within particular
society. Although the size of the society may vary, but the nature of its organisation
(social-structure) and functioning for sure influences the development process.
It is to be noted here that, within the development debates the consideration of
social indicators has long history (Boelhouwer 2010, Noll 2011). The focus on
non-economic aspects strengthened to a great extent after the publishing of the
report on the measurements of economic performance and social progress (Stiglitz,
Sen and Fitoussi 2009).

For example Granovetter (2005) argues that there are three major influences of
social structure on the economic outcomes; which in turn is one of the important
aspect of development process. These factors include three influences social
networks, reward and punishment based upon social networks, and trust. The
flow of any information and the quality of it in development process is heavily
based on the social networks. These structure of social networks further influence
the reward and punishment imbibed in the development process itself. The third
important aspect highlighted by Granovetter is trust factor. Due to this factor the
others involved in the process have a confidence that ‘right’ things will be done.

The Brundtland Report (1987) has not only revealed the importance of sustainable
development but it also argues for global societal developments. The report also
mentions the need for consideration of trans-society developments and its
consequences on different societies. In simple terms, we need to also consider
that the development of one society may not come on the cost of loss of another
society.

In an interesting example of Netherlands, a composite form of ‘social capital’

framework has been used to understand the role of these factors in the development
process. Utilising the concept of social capital index of Putnam (2000), they
have categorised social, organisational and political dimensions of trust,
participation and integration. In Indian context, one has to also understand that
how the changes brought up by the colonial governments have impacted the
traditional social structure of the society (Versluys, 1957). These combined with
the provisions enshrined in the constitution of India, which has made everyone
equal in the realm of law and has enable one and all (at least legally) for developing
self capabilities and then to contribute to the overall development process.

A majority of erstwhile communities, which faced suppression, marginalisation

and exploitation for centuries have benefitted from the changes brought out in
the socio-structural functioning along with constitutional measures to participate
with equal rights and in their capacities in the development of Indian society at
large (Kumar, 2007). The Indian social structure, which has the history and culture
of feudal society also influence the development process. In this context it has
been reflected by the social scientists that the feudal or even semi-feudal nature
of the society co-existing with capitalist mode of production hampers the over-
all development process. This also results into restrictions for market development.
On the contrary, due to globalisation effects a new tendency has been recognised
in the urban elites of the under-developed countries, where they try to imitate the
cultural pattern of elites of developed countries. Thus, it results into increased
rate of consumption pattern, and also to less accumulation of capital. This further,
24
adversely affects the development process of under-developed countries Factors and Instruments of
Development
(Duesenberry, 1949).

2.2.4 Cultural Factors

Culture is the collection of attitudes, values, beliefs, and behaviours expressed
by a group of people, and transmitted from one generation to another (Matsumoto,
1997). Although it could different in different regions, but the degree of
discrimination on account of any cultural or historical factor hold back any country
to the poorer section. With social development process, the priority is for people’s
upliftment but in attempt to be mainstreamed numerous groups have suppressed
due to their cultural and historical aspect in Indian society. Culture is obviously
significant. People are governed by desires, ideologies and beliefs, and they need
to be guided by ideals even after economic achievement. Differences between
nations are due to education and culture, particularly at the level of development.

With sociological aspect the traditional and modern culture results into cultural
lag and fissures. Sometimes, traditional culture may create hindrances to the
development. A weak and non-universal system of social rights does not result
into the equal opportunities and capabilities for many sections of the society.
Such groups remain marginalised on the one hand and the development process
remains at lack with the loss of possible capabilities of the members of these
sections. For example, in Indian patriarchal society women have been kept low
in the social hierarchy. In this situation, women have remained victim of the
system emerging out of the traditional culture.

Not only this, the Indian society at large has lost the possible productivity of
women in this manner. Some superstitious and prejudiced nourishment of deep-
rooted cultural practices can come in the way of dissemination of education.
This unequal and exploitative situation further results into hampering of
developmental concerns, such as family planning, education for all, health and
hygiene. Apart from this, the subaltern and marginalised societies including the
Scheduled Castes, Scheduled Tribes and Other Backward Classes, which
constitute the majority of the population of the country have remained deprived
to engage in the development process. Such, circumstances have led to the
monopolisation of the traditional and modern resources and institutions by the
particular social groups of the society and has negatively impacted development
for all (Kumar, 2014).

2.2.5 Physical and Geographical Factors

Geographical location of any country and the nature of environmental conditions
are also amongst the most significant factors in development. By influencing
transportation costs, productivity of the land, difficulties in accessibility to
different geographical terrains, disease burdens etc are the key factors in this
category (Gallup, 1999). Population concentration in certain preferred
geographical areas, connectivity with sea-shores and rivers also influence the
national and international trade.

It’s really not a coincidence that the poorest countries are in the tropics, where
it’s dry, where the soil is less nutritious, water is scarcer, and diseases often
multiply. Europe and North America, on the other hand, benefit from vast tracts
of very fertile land, a moderate climate and healthy rainfall. So much energy
25
Unpacking Development goes into the basic business of survival in climatic conditions, either hot or cold,
and then the leftover energy for development.

2.2.6 Religious Factors

Religion may be understood as a cause, principle, or system of beliefs held to
with ardour and faith. The role of religion in the development of any particular
society as the same has been highlighted by Max Weber in his study The Protestant
Ethic and the Spirit of Capitalism. In the case of India, while the country has
seen changes in economic growth and development but religion has not lost its
central position in the society. It still determines the social hierarchy in Indian
society. Apart from theological differences there are lifestyle, political and
historical factors accompanied with different religions. These have resulted in
social solidarity on the one hand but also these have produced differentiation
and disparities among followers. The teachings of these different religions of
Indian have also influenced the selection of occupation and other related economic
activities by their adherents.

2.2.7 Educational Factors

Education is one of the core factors of development in every sense. Without
substantial investment in human capital no country can achieve sustainable
economic development. Education and awareness enrich the perception that
people have of themselves and the world. This increases the quality of their lives
and offers people and society broad social benefits. Education is an instrument
of social change and an important input in the process of development itself.
Specifically, the role of education in human resource development requires much
focus. Education increases efficiency and innovation for citizens and encourages
entrepreneurship and technical development. It also plays a very important part
in ensuring economic and social growth and increasing the distribution of wealth.

Education and social change are a two-way process. While education is

responsible for preserving, transmitting and disseminating the culture as a whole,
social change is the instrument and precondition for educational thoughts. It sets
the social development process in motion and gives them direction and purpose.
Education prepares people for social changes and determines the nature of the
social transformations that should be brought about. It is the most important tool
for bringing social change. Quality education for all, at all levels is one of the
pre-requisite for desired social change and development.

2.2.8 Administrative Factors

The majority of the nations which gain independence out of the colonial rules
have not been able to abolish the colonial culture in terms of administration. As
a result many a times the administrative and bureaucratic functioning continues
to practice exploitative, un-ethical values and proves to be inefficient. The
problems of red-tapism and corruption imbibed in the administrative set-up lead
towards detrimental results for development process. The continued failures of
public sector units have provided opportunities for private sector to creep in to
their primary fields of operations. The nexus between political leaders and the
administrative mechanism lead us towards lapses in policy formations,
implementation and achievement of the desired goals.
26
2.2.9 Technological Factors Factors and Instruments of
Development

With the increasing importance of information and technology in the globalised

world, the under-developed and developing countries are forced to be dependent
on the advanced technologies and information of the developed countries. Such
compulsive conditions also results into the buying of second-hand machinery
and technology which is now discarded or is not so advance for the developed
countries. In such circumstances, the developing countries are not able to pose
competition in the global market and hence not able to bring desired results.
Therefore, the developing and under-developed countries turn towards labour-
intensive functioning, and also face the lack of capital investment.

Check your Progress 1

Answer the following questions briefly.
i) What do you mean by a factor?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

ii) If the developing countries take the help of other countries or multinational
companies, there are increased chances that the political autonomy will
be..................by the foreign countries and agencies.

iii) Who argued that per capita product is primarily dependent on the
improvement of quality of inputs and not only on quantity of inputs.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

iv) The major political factors which influence the development process include
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

v) The.........Commission Report which was published in 1987 has not revealed

the importance of sustainable development.

vi) Geographical location of any country and the nature of environmental

conditions are also amongst the most...............factors in development
27
Unpacking Development
2.3 INSTRUMENTS OF DEVELOPMENT
According to Little Oxford English Dictionary, instrument means a tool or piece
of equipment used for delicate or scientific work or a measuring device (Hawker,
2015:360). Thus, our focus here will be on the ways and measures through which
the development process is measured. The efforts in the direction of measurement
of development level of different countries have generally been economy oriented
at least initially. Therefore, the criteria like Gross National Product (GNP), Gross
Domestic Product (GDP), Net National Product (NNP), Per Capita Income etc.
were used as instruments to determine the status and requirements with reference
to development. But gradually these instruments were questioned, as they only
help us to understand the development partially. Therefore, new concepts were
introduced like modifications of GNP, use of social indicators and associated
systems of social accounts, devising of composite indices of development etc.
(Hicks & Streeten, 1979). Let us discuss major instruments of development.

2.3.1 Gross National Product (GNP)

One of the most debatable yet frequently used instruments to measure
development has been GNP. It has been used at international level for comparing
the levels of development of different countries. This concept helped to assess
national accounting by integrating using a weightage mechanism based on market
prices or factor costs, industrial and agricultural production, investment,
consumption and government services (Hicks & Streeten, 1979).

2.3.2 Per Capita Income

It has been one of the important instruments to estimate the development level of
any particular country. The initial aspirations with the economic growth in terms
of achieving more and more did not resulted as planned. The policy makers of
the developing countries were convinced that increase in economic growth will
gradually help in eradicating poverty, income inequalities and unemployment.
However, later this position was challenged and questioned. Assessments were
made regarding the blind race for economic growth which started to show ill
impacts on social justice and environmental conditions.

2.3.3 Less Income Inequalities

Another important instrument for measuring development is the level of income
inequalities in any country in general and in developing and under-developed
countries in particular. Many reports published by the World Bank and other
international agencies like Oxfam have time and again highlighted the sharp
distinction in the income inequalities of majority of developed countries
population and their minor share in the national income. On the other hand, the
minority of the rich people have the majority of share in the national income of
most of the developing countries with few exceptions. So, the criteria remain as
less inequalities of income among different social groups.

2.3.4 Poverty
The extent of poverty level in any country has been also one of the classical
criteria for assessing the development process in any particular society. For
28
developing countries, lower Gross National Product with sharp income Factors and Instruments of
Development
inequalities has been very significant in spreading the poverty specifically in
Asia, Africa and Latin America. Due to wide-spread poverty levels in the
developing countries, there are greater challenges to bring minimum standard of
living with regard to nutrition, access to basic amenities, health and education
etc.

2.3.5 Development Planning

Apart from the other instruments mentioned above, one of the primary instrument
with respect to development is development planning. The planning of
development can be interpreted variedly, depending on the context and time
specific to a particular society. In the Indian context, this work has been done
with the provision of Planning Commission of India. Under the commission’s
visionary planning, India followed Five Year Plans. Recently the planning
commission has been reorganised as NITI Aayog. The Prime Minister of India
remains the official chairman of this body, and works along with Deputy Chairman
and other experts belonging to different domains.

2.3.6 Basic Needs Approach

Another important instrument while assessing development has been basic needs
approach. This approach further requires a set of indicators for measuring the
fulfilment of basic needs in a particular country. Hicks & Streeten (1979) have
recognised life expectancy at birth in health, primary school enrolment in
education, calorie supply per head in nutrition, infant mortality with regard to
access to potable power in water supply, infant mortality with regard to sanitation,
and housing as components for determining the access to basic needs by the
people of any country.

2.3.7 Sustainable Development

One more instrument utilised to put development in a more time testing context
was the idea of sustainable development. The idea was propounded by the
Bruntland Commission Report published as ‘Our Common Future’ in 1987. It
questioned the efforts made in the field of development with regard to futuristic
perspective. The report defined sustainable development as to meet the needs of
the present but without compromising the ability of future generations to meet
their own needs (Report of the World Commission on Environment and
Development, 1987).

2.3.8 Human Development Index

The gradual journey in the domain of development has slowly shifted from
economic consideration to individual and societal level considerations. Such shifts
were the results of questions like – development for whom? Achieving
development at what cost? Based upon such arguments, Human Development
Index (HDI) was designed by United Nations Development Programme (UNDP)
in 1990, published in the Human Development Report. The basic principles
utilised in the construction of Human Development Index consists of enlarging
the choices of people. These choices include desire to live long, to acquire
knowledge, to have a comfortable standard of living, to be employed gainfully,
to have access to clean air and the freedom to live respectable community life.
29
Unpacking Development Moreover, the index also included limited number of economic variables like
life expectancy, adult literacy rate and Gross National Product (GNP) adjusted
for Purchasing Power Parity (PPP) for making it more comprehensive. In addition
to above, benchmarks were designed to measure the progress made in the
development realm by a particular country. Last but not the least a synthesis of
economic and social instruments was visualised and implemented through this
index for pragmatic measuring of development of various societies.
Check your Progress 2
Answer the following questions briefly.
i) What do you mean by an instrument?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

ii) What does GNP stand for?

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

iii) What is the full form of GDP?

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

iv) Define sustainable development.

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
30
v) Human Development Index (HDI) was designed by ................................... Factors and Instruments of
Development
in 1990.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

2.4 LET US SUM UP

Developing has been one of the innate aspirations of human society throughout
history. The journey for this objective of development has gone through various
dimensions. It has taken the formal considerations starting in comparison to the
informal consideration and planning. It has transcended the national boundaries
and is a global concern now. The shift has also been recorded in terms of economy
centred to individual centric approach. The societal level considerations have
also been of primary importance. According to Pajestka (1973), the socio-
economic progress cannot be correctly explained and understood by theories
which do not take into account the actual experience relating to the factors
determining the processes. These factors can be recognized only by relying on
the objective and systematic knowledge of socio-economic structures and their
functioning. In this unit we have discussed factors of development like economic
factors, political factors, socio structural factors, religious factors, technological
factors and also discuss the instruments of development like GNP, Per capita
income, poverty Basic need approach and human development index.

2.5 KEY WORDS

Gross National Product (GNP) :Gross National Product (GNP) is Gross
Domestic Product (GDP) plus net factor income from abroad.
Per Capita Income: Per capita income (PCI) or average income measures
the average income earned per person in a given area (city, region, country, etc.)
in a specified year. It is calculated by dividing the area’s total income by its total
population.
Sustainable Development: Brundtland Report defines sustainable development
as the development that meets the needs of the present without compromising
the ability of future generations to meet their own needs.
Human Development Index: The Human Development Index (HDI) is a statistic
composite index of life expectancy, education (Literacy Rate, Gross Enrollment
Ratio at different levels and Net Attendance Ratio), and per capita income
indicators, which are used to rank countries into different development level
categories.

2.6 FURTHER READINGS

Cohn, Samuel and Gregory Hooks, 2016, ‘Introduction: A Manifesto for the
Sociology of Development’ in Gregory Hooks (ed.) The Sociology of
Development Handbook, University of California Press, California.
31
Unpacking Development
2.7 SPECIMEN ANSWERS TO CHECK YOUR
PROGRESS
Check your Progress 1
i) A factor means one that actively contributes to the production of a result.
ii) Influenced.
iii) Simon Kuznets.
iv) The duration of independence, the westernisation and political
modernisation, the ideological orientation followed by a particular state,
government stability, and the stability of political party system.
v) Brundtland
vi) Significant
Check your Progress 2
i) An instrument means a tool or piece of equipment used for delicate or
scientific work or a measuring device.
ii) Gross National Product.
iii) Gross Domestic Product.
iv) Sustainable development means to meet the needs of the present but without
compromising the ability of future generations to meet their own needs.
v) United Nations Development Programme

REFERENCES
Boelhouwer, Jeroen, 2010, Wellbeing in the Netherlands: The SCP Life Situation
Index Since 1974, The Hague: The Netherlands Institute for Social Research.
Cohn, Samuel and Gregory Hooks, 2016, ‘Introduction: A Manifesto for the
Sociology of Development’ in Gregory Hooks (ed.) The Sociology of
Development Handbook, University of California Press, California.
Duesenberry, J.S., 1949, Income, Saving and the Theory of Consumer Behaviour,
Harvard University Press, Cambridge.
Engineer, Asghar Ali, 1984, Understanding Communalism: Report on a Seminar,
Economic and Political Weekly, May 5, 1984, Vol. 19, No. 18, pp. 752-756.
Gallup, John Luke (et. al), 1999, Geography and Economic Development,
International Regional Science Review, Vol. 22, Issue 2, pp. 179-232.
Granovetter, Mark, 2005, The Impact of Social Structure on Economic Outcomes,
Journal of Economic Perspectives, Volume 19, Number 1, Winter 2005, pp. 33-
50.
Hawker, Sara, 2015 (First Indian Edition 23rd Impression), Little Oxford English
Dictionary, Oxford University Press, New Delhi.
Hicks, Norman And Paul Streeten, 1979, Indicators of Development: The Search
for a Basic Needs Yardstick, World Development, Vol. 7, pp. 567-580, Pergamon
Press Ltd., Printed in Great Britain.
32
Kumar, Vivek,2014, Caste and Democracy in India:A Perspective from Factors and Instruments of
Development
Below,Gyan Publishing House,New Delhi
Kuznets, Simon, 1979, Modern Economic Growth: Rate, Structure and Spread,
Oxford & IBH Publishing Company, New Delhi.
Marshall, Katherine, 2001, Development and Religion: A Different Lens on
Development Debates, Peabody Journal of Education , 2001, Vol. 76, No. 3/4,
Global Issues in Education (2001), pp. 339-375.
Noll, Heinz-Herbert, 2011, The Stiglitz Sen Fitoussi Report: Old Wine in New
Skins? Views From a Social Indicators Perspective, Social Indicators Research,
Vol. 102, No. 1, pp. 111-116.
Nurkse, Ragnar, 1973, Problems of Formation in Underdeveloped Countries,
Oxford University Press, Delhi.
Pajestka, J., 1973, The Socio-Economic Factors of Progress, Acta Oeconomica,
Vol. 10, No. 1, pp. 3-20.
Report of the World Commission on Environment and Development, 1987, United
Nations.
Spengler, Joseph J., 1957, Economic Factors in Economic Development, The
American Economic Review, Vol. 47, No. 2, Papers and Proceedings of the Sixty-
eighth Annual Meeting of the American Economic Association (May, 1957), pp.
42-56.
Stiglitz J.E., A. Sen and J.-P. Fitoussi (2009). Report by the Commission on the
Measurement of Economic Performance and Social Progress, Accessed from
http://www.insee.fr/fr/publications-et-services/dossiers_web/stiglitz/
doccommission/RAPPORT_anglais.pdf. on 20.06.2020.
Tsantis, Andreas C., 1969, Political Factors in Economic Development,
Comparative Politics, Oct., 1969, Vol. 2, No. 1 (Oct., 1969), pp. 63-78.
William, Crain, 2014 (Sixth Edition), Theories of Development: Concepts and
Applications, Pearson Education Limited, Edinburgh Gate, Harlow, U.K.

33
Unpacking Development
UNIT 3 DEVELOPED, DEVELOPING AND
UNDERDEVELOPED*
Structure
3.0 Objectives
3.1 Introduction
3.2 Understanding the Categorization Related to Development
3.3 Developed, Developing and Underdevelopment
3.3.1 Developed Countries
3.3.2 Developing Countries
3.3.3 Underdeveloped Countries
3.4 The Development Debate
3.5 Let Us Sum Up
3.6 Key Words
3.7 Further Readings
3.8 Specimen Answers to Check Your Progress

3.0 OBJECTIVES
After reading this unit, you should be able to:

Describe the criteria for categorisation of developed, developing and

underdeveloped nations.

Discuss meaning and definition of developed, developing and

underdeveloped economies.

Analyse the political-economy based relationships between countries

andlimits of economic development possibilities of poorer areas.
Discuss the different dimensions of development debate.

3.1 INTRODUCTION
Previous unit we discussed the instruments and factors of development. In this
unit we will discuss the categorisation of countries in terms of developed,
developing and underdeveloped. We will also discuss the development debate.

The term ‘development’ is difficult to define as the definition is dependent on

the context in which it is being used. Although it is used frequently in day to day
conversations and political discussions; where there are some assumed notion
attached to it by the user of the term. The first clarification to be made here is
that, the term ‘development’ may refer to many domains of knowledge like
personality, maturity, education, organism, cognitive, moral, learning, psychology,
life, language, adulthood etc (see Crain, 2014). The term also refers to a number
of characterisation such as demographic change, economic growth, increased
use of resources, modernisation, higher level of technology and political freedom.

*Dr.Vinod Arya, Assistant Professor, Department of Sociology, Punjab Central University,

34 Bhatinda
Thus, we may infer from the above discussion that the understanding of the Developed, Developing and
Underdeveloped
concept of ‘development’ can be started from the individual level but gradually
it encompasses the other social beings who live in the community and society.
The attempts of understanding of the concept of development do not stops here
and further enters into the boundaries of social relations, social-functioning, and
also the social-structures. In-turn the social structures are further influenced and
intertwined with economic, cultural, educational, religious and political
ideologies, functioning’s and their structures also (Cohn & Hooks, 2016: 3).

Now before moving to the developed, developing and underdeveloped

classification and the related issues let us first define the term ‘development’.
Oxford Dictionary and Thesaurus mentions it as the stage of growth or
advancement (Elliott, 2001). But such literal meaning again places as in between
confusion. The confusion which emerges here is regarding the synonymous terms
used to clarify the term development. For example change, growth, wealth, and
progress among others.( see unit 1). Let us make distinctions in short between
these words .

We may begin with the term change which literally signifies making or becoming
different (Elliott, 2001: 113). However, we may observe from the meaning that
the change may result in any direction. ‘Growth’ means to increase in size,
height, amount etc. (Elliott, 2001: 331). Wealth means being rich or to have in
abundance of affluence, assets, capital, money etc. (Elliott, 2001: 877). On the
other hand ‘progress’ means to move forward or onward (Elliott, 2001: 594).
One comprehensive sociological definition of development is also provided by
Gunnar Myrdal (1974). He defines development in terms of the upward movement
of the entire social system.

Activity 1
Try to ask different people in your surrounding regarding the meaning which
they understand by the terms change, growth, wealth and progress. Note
down the references and then compare them with the dictionary meaning
and definitions of these concepts.

3.2 UNDERSTANDING THE CATEGORISATIONS

RELATED TO DEVELOPMENT
After differentiating the synonymous terms let us discuss the categorisation of
development. Development studies as an area of research have their origins in
the aftermath of World War II with the reconstruction of war-ravaged countries
and its attendant economic development. The origin of development as an ideology
can be traced to the era of industrialisation in the nineteenth century. Political
and social thinkers such as Max Weber, Karl Marx and Emile Durkheim offered
different perspectives on the common observation that society was changing
from ‘traditional’ forms marked by authority and beliefs stemming from
superstition, fatalism or emotions, to ‘modern’ forms dominated by the application
of reason and rationality alongside an emphasis on efficiency and the ability to
explain the world scientifically (Durkheim 1964; Marx 1964; Marx & Engels
1848; Weber 1958, 1978, see Aron 2008 & 2009). The legacy of these key thinkers
is widely acknowledged as the origin of development theory, taking the form of
modernisation theory.
35
Unpacking Development Further, if we look into the history of this concept, we will find that the recovery
of various countries after World War II and the decolonising process led as the
foundations for development as policy. The conceptualisation strengthened further
with the focus on the addressing of major social problems of poverty,
unemployment and social exclusion (United Nations, 1995, Report of the World
Summit for Social Development).

Webster (1990) argued that for understanding the development related problems
we need to examine the place of poor countries globally in terms of their social
and economic relationships with each other. Secondly, it is of prime consideration
to also study particular features of particular societies in terms of the affect which
development will make on it. One also needs to analyse interactional outcomes
of the cultural and economic processes with regard to social development. The
historical pasts and the political decisions of various governments in terms of
plans and their execution for social development also require investigation for
estimating the influence of international agencies and international relations (ibid).

A Map showing the First, Second and Third World divisions (Webster, 1990: 5)

Using the above mentioned features, geographers and developers have also
produced different categories and maps to show the levels of world’s development.
One such categorisation (although contested) but was formulated by Alfred Sauvy
in his 1952 article ‘Three worlds, one planet’ (Solarz, 2012). The conceptualisation
of a three order world is based on the traditional social structure of French society
here nobility was the first order; clergy was the second and rest others were
counted in third order. He portrayed the capitalist countries as first world,
communist countries as the second and the rest other countries as the third world.

This categorisation helps us to partially understand the developed market-

economy countries as first world, countries which are industrialised or are in the
process of industrialisation and are centrally directed as second world and the
least developed and poor countries as the third world (Wolf-Phillips, 1987). The
World Bank made differentiations between the low and middle income developing
countries (World Development Report, 1978). North America, Western Europe,
Japan Australia and New Zealand fall under the First World category. The Second
World- consisting of the state-controlled Communist countries such as the former
USSR (Union of Soviet Socialist Republic- a federal sovereign state in northern
Eurasia existed from 1922 to 1991). The Third World –contains all the other less
developed countries.

36
A review of literature of different development reports enables us by providing Developed, Developing and
Underdeveloped
different statistical evidences in the context of levels of development. Generally
they refer to such characteristics as population growth, life expectancy, health,
education, urbanisation, income distribution, industrialisation and energy
consumption. It is noted that the gap between wealthy and poor is great. The
majority of people in third world countries are very poor. These countries have a
colonial past as well. The widespread poverty goes hand in hand with misuse of
critical resources –for example - much labour is idle for much of the time, while
when in use labour productivity is very low. It can also be noticed that some
countries have achieved sustained growth that allows them to develop while
many others cannot. This gap between them has been at the core of economics
since the days of the founding fathers of the discipline (i.e., Smith, Ricardo,
Malthus, Marx), who’s concern was the study of the determinants of the wealth
of nations (Misra & Puri, 2006).
Check your Progress 1
Answer the following questions in two to three sentences each.
i) After which major historical milestones the foundations for development
policy were laid down?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

ii) Whether one should analyse the interactional outcomes of the cultural and
economic processes with regard to social development?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

iii) Who conceptualised the ‘Three worlds, one planet’ idea?

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
37
Unpacking Development iv) Which international organisation made differentiations between the low and
middle income developing countries in the 1970’s?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

3.3 DEVELOPED, DEVELOPING AND

UNDERDEVELOPED
According to Kuznet (1968) the distinction between developed and under-
developed (or developing) countries was announced by United Nations in its
National Accounts Statistics Yearbook of 1965. While excluding the communist
countries the list included North America (i.e. the United States and Canada),
Europe, Oceania (i.e. largely Australia and New Zealand), Japan, and South Africa
in the developed countries group. Asia excluding Japan, Africa excluding South
Africa and Latin America were kept in the developing countries group. Kuznet
(ibid) also argues to include U.S.S.R. and some countries of Eastern Europe in
the developed group list. However, the issue of categorisation is not very easy as
there are complexities involved in the reasons for developed state of few countries
by using political advantages in the form of resource utilisations and monopolies
over trade and commerce.

On the other hand, the issue becomes debatable as the dichotomous division of
countries into developing and developed also invites the policy level issues like
transferring of resources from developed to developing countries (Pearson et al,
1969). In such an uncertain backdrop many organisations of international level
have used membership of the Organization of Economic Cooperation and
Development (OECD) as the criteria for determining developed country. But
such method seems faulty when we reach the result of 15 to 20 percent of the
countries as developed and remaining 80 to 85 percent countries as developing
(Nielsen, 2011). One of the questions which arise here is that which term shall
be used for categorisation of which country? Bhagwati (1971) argues that the
choice of word depends on the sensitivity of the analyst and the author. If we will
look into the methodology of World Bank using World Bank Atlas Method for
classification of different countries for the year 2020; we may find that the
countries having a GNI per capita between $1,026 and $3,995 are termed as
low-income economies. Countries with a GNI per capita between $3,996 and
$12,375 are kept in lower middle-income group. And the countries having a GNI
per capita of $12,376 or more are called as upper middle-income economies
(World Bank, Data Help Desk).

However, in this context, the United Nations clarifies that there are no established
criteria for determining the status of developed or developing countries. Such
criteria only reflect convenient measures adopted for portraying the statistics.
So we may not base our decisions to identify a particular country in relation to
its ranking on the scale of development track based upon such convenient ideas.
38
It also stands as false criteria because of the fact that economic development Developed, Developing and
Underdeveloped
does not necessarily bring equality in any particular country. If the fruits of the
economic growth are not distributed properly, then the rich segment of the society
will become richer and the poor becomes poorer (United Nations, 2019, Annexure
I of Statistical Yearbook 62nd issue).
Check your Progress 2
Answer the following questions briefly.
i) The distinction between developed and under-developed (or developing)
countries was announced by United Nations in its ...................................
Yearbook of 1965?

ii) The dichotomous division of countries into developing and developed

became debatable as it invited the policy level issues like ........................
from developed to developing countries.

iii) What does the abbreviation OECD stands for?

.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

iv) The United Nations clarifies that there are no established criteria for
determining the status of developed or developing countries. Such criteria
only reflect ............measures adopted for portraying the statistics.

3.3.1 Developed Countries

The above discussion helps us at least to pool-up few criteria like developed
economy with comparatively advance level of technology and infrastructure with
the addition of the comparisons of living standards of the citizens of the particular
countries, their gross domestic product (GDP), their gross national product (GNP)
and their per capita income. It may broadly be used as the scale for determining
the developed countries. Developed countries stand as synonymous to
industrialised countries which have advanced economies. It is also categorised
by having advance technological infrastructure and diverse industrial and service
sectors. Due to this, citizens of developed countries typically enjoy a quality
lifestyle and having better access to health and education services. The developed
countries and the ways they achieved economic progress are thus prescribed as
footprints for the underdeveloped countries. In a very different manner the former
United Nations Secretary-General Kofi Annan has defined a developed country
as follows: “A developed country is one that allows all its citizens to enjoy a free
and healthy life in a safe environment” (UNIS, 2000 as referred by Song et al.,
2013).

The societal characteristics of developed countries also show a close association

between the cultural heritage they possess, the patterns of belief and social life,
the preferences for materialistic life, the scientific temperament etc. lead the
39
Unpacking Development way to modernisation and economic growth in these countries. The attempts to
embrace modernity also gave the results as development and growth
accompanying the industrial sector enlargement. Samuel P. Huntington (1996:68)
described modernisation as “industrialisation, urbanisation, increasing level of
literacy, education, wealth and social mobility, and more complex and diversified
occupational structures”. Westernization, on the other hand, is seen as the
“conversion to the ways of western civilization”. It is regarded as the social
process in which non-western peoples are assimilated into the western culture or
“assimilated into European culture”. Hence, Westernization and Europeanization
becomes interchangeable in this context.

However, modernisation theory has been also criticized and almost abandoned
by many social scientists (Amin, 1973; Giddens, 1991, Scott, 1995). The theory
was being criticised from a neo-modernist or Marxist viewpoint. It was opined
that modernisation theory seems very Western-centric and it has nothing to do
with non-Western world. The countries of Western Europe and the North Atlantic,
evidently, evolved through the process as outlined by Rostow. In order to become
modern, Rostow presented a definitive account of how countries pass through
five stages of development i.e. traditional society, preconditions for take-off,
take-off, and drive to maturity and age of mass high consumption (Rostow, 1960:
4-16).

Hence, there is no denying of the fact that ‘modernization process first occurred
in the west through the twin processes of industrialization and commercialization’
(Emerson, 1960:43). It was the industrial revolution that warmed the whole
movement of change from a traditional agricultural society to modern
industrialized and commercialized society. Vishnevsky (2006:9) stated that
“modernization forms a great axis around which history’s main events have turned
since the end of the 18th century, the time of the industrial revolution in England
and the Great French Revolution, and gradually spread to ever more new countries
and regions, especially in the 20th century”. Based on this historical background
and influenced by evolutionary theory, modernisation is considered a linear
process from traditional society or an underdeveloped country move towards a
more advanced modern society. Thus, from an economic centred view of
development, traditional society is often judged to be rural, backward, non-
scientific, emotional or undeveloped, while modern society by contrast is urban,
industrial, rational, and scientific and developed. Thus, development is set up as
reflecting these dichotomies.

3.3.2 Developing Countries

The developing countries constitute the majority of the population and area of
the world. According to an estimate the developing countries cover around seventy
five percent of the total land area and approximately eighty five percent of the
total population of the world (Alvaredo & Gasparini, 2015). To determine the
status of a country as ‘developing’ the criteria of gross domestic product (GDP)
per capita is used. This means that all the goods and services produced by a
country in a year when analysed as U.S. dollars. According to the World Trade
Organisation (WTO), two third of its member countries fall in the category of
developing countries. This is a diverse group of countries who have different
aspirations and problems to deal with. However, they are very significant in
numbers and thus become very important for the global economy (WTO,
40
Developing Countries). There are special provisions made for these countries Developed, Developing and
Underdeveloped
under the organisation through the Committee on Trade and Development.
Provisions of special rights and lenient rules are framed for developing countries
so that they may develop comprehensively using these favours. Not only this,
the General Agreement on Tariffs and Trade (GATT) and General Agreement on
Trade in Services (GATS) also provisioned for some preferential treatment and
non-expectations of similar offers by the developed countries while making trade-
negotiations with the developing countries.

Developing countries are also provided legal assistance, extra time for fulfilling
the commitments, increased opportunities for market access, safeguard of their
interests, and help in various sectors of development. From the definition as
provided by Kofi Annan (UNIS, 2000 as referred by Song et al., 2013) we nay
argue that development shall also be measured along with human factors. The
developing countries thus try to achieve industrialisation with respect to the
population and also try to raise the standard of living with the above mentioned
provisions.

When we look into the detailed criteria for developing countries we may find
that statistical measures like per capita income, per capita gross domestic
product , life expectancy, the rate of literacy, freedom index etc. are used. One
such scaling we may see in the Human Development Index (HDI) by the United
Nations. Further, United Nations has also envisioned Millennium Declaration
for the countries of the world as reference points in terms of development. These
targets are very helpful in determining the policy and functioning of the developing
countries (United Nations Millennium Declaration, 2000). The United Nations
goals for sustainable development are also new addition to such targets (United
Nations, Transforming our world: the 2030 Agenda for Sustainable Development).

World Bank looks upon the developing countries in an assessing way and states
that these countries have relatively low levels of taxations, they rely heavily on
regressive revenue instruments, and have a low coverage and benefit levels of
transfer programs (World Bank, 2006). Therefore, it can be argued that developing
countries suffer from substantial infrastructure limitations that raise questions
about whether or not the high rate of growth projected will actually be realized.
Hence, developing countries are very different in terms of economic development
and institutional capacity.

3.3.3 Underdeveloped Countries

Siyum (2018) provides a very unique three divisional segment to describe the
differences between different types of countries in the world. He says that some
countries are there whose citizens spend lots of money for keeping the weights
low, second type of countries whose citizens eat to live and the third type of
countries whose citizens do not know from where the subsequent meals will
come from. Somehow, the last category is somehow related to the underdeveloped
countries where survival of people creates lots of question before ruling elites.
Here, it becomes pertinent to relate the idea of colonialism and neo-colonialism.
While during colonialism few countries acquired total or partial control on the
colonised country’s polity and exploited them economically (Oxford Dictionary
of Sociology, 2006). In this context, the neo-colonialist perspective emphasizes
that the era of colonialism is not entirely abolished, since many states that appear
to be independent are still economically and politically controlled from outside, 41
Unpacking Development most often through economic means, in order to ensure continued dominance of
former colonies.

According to Andre Gunder Frank, the former colonial nations were

underdeveloped because of their dependence on Western industrialised nations
in the areas of foreign trade and investment. These relationships stunted their
development (Frank, 1960). The reasons these places are poor and under-
developed are because of the structure of exploitation, capitalism and world trade.
Modernisation tends to forget the historic experience of the Third World. To
study the relations between the developed and developing countries, Dependency
theory was developed in the late 1950s under the guidance of the then Director
of the United Nations Economic Commission for Latin America, Raul Prebisch.
Being as the most suitable and appropriate one to understand the relationships,
the dependency theory predicated on the notion that resources flow from a
“periphery” of poor and underdeveloped states to a “core” of the wealthy states
enriching the latter at the expense of the former. Prebisch along with others found
that poor countries do not necessarily get benefitted by the advancement of the
industrialisation. On the contrary, the economic advancement of the richer
countries frequently leads to economic struggles and problems for the poor
countries.

The debate between Prebisch (liberal reformer), Andre Gunder Frank (Marxists)
and Wallerstein (world systems theorist) provides us many insights with respect
to the under-developed countries. First of all we may take help from Sunkel
(1969) who argued that the economic development of a state is very much
dependent on the external political, economic and cultural influences and hence
on the development policies also. Defining the dependency theory Santos (1971)
highlighted the historical roots of the relationships of different countries and
argued that functioning of world economy favours some countries and in turn
which is detrimental to the others. It pose limitations for the subordinate economies
to develop.

Activity 2
Using appropriate references make a comparative table of first ten countries
based on the criteria of per capita income and Human Development Index.
Try to locate the place of India in the list.

3.4 THE DEVELOPMENT DEBATE

Immanuel Wallerstein’s World System theory talks about the divided world on
the basis of economic development. The very levels of differentiations in the
forms of governments as both developed and underdeveloped countries have
been labelled as core and periphery respectively. The growth of inequality revealed
by dependency theory and world system theory.It has generated scepticism and
further critiques of viewing development as linear progress. Since the 1990s, the
so-called post-development debate emerged (Escobar 1995, Rahnema & Bawtree
1997). In the debates generated by the concept of post-development, several
aspects of the notion of economy-centred development have been critiqued as
follows. First, the strongest critique concerns the idea that economic growth
equates with progress. In some cases, the sole pursuit of economic growth will
bring about more problems which in turn does harm to progress. Global and
regional inequality, mentioned above, is one example. A second example is the
42
failure of poverty reduction which was a central aspect to show the consequences Developed, Developing and
Underdeveloped
of unequal economic system. Under this economic-centred development
paradigm, it is taken for granted that poverty eradication can be naturally achieved
with economic growth. However, with conditions of inequality, poverty is not
reduced but becomes worse within an unequal economic system (Desai 1991, p.
351-352). Another important problem is that the sole pursuit of economic growth
is often based on the high cost of natural resources and this in turn causes serious
environmental problems.

Secondly, the economy-centred development paradigm has been criticised on

the basis that development has become a discourse that creates the power
relationships between developed and underdeveloped countries or social groups
(Escobar 1995; Ferguson 1990). Third, the top-down approach adopted in the
economic-centred development process is criticised for overlooking the localities
and the subjectivity of local people. Fourth, the presumption that traditional society
is backward and underdeveloped often causes damage to traditional culture and
local relationships. Indeed, because of these problems, many scholars argue that
development may cause underdevelopment and even de-development in some
poor countries or regions (Meurs & Ranasinghe 2003; Roy 1999). These critiques
have extended the understanding of development. The term development now
extends to far wider horizons such as social-cultural aspects rather than merely
economic development. Moreover, many scholars suggest a bottom-up approach
such as a participatory development approach by involving local participation
and local knowledge during the development planning and decision making
(Grillo 1997; Hobart 1993). Thus, the understanding of development is no longer
limited to economic growth, but rather, it is extended to expanding people’s
choices and capabilities (Sen 1989).
Check Your Progress 3
Answer the following questions briefly.
i) Who propounded the World System theory?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................

ii) The economy-centred development paradigm has been criticised on the basis
that development has become a discourse that creates the power relationships
between ...................................countries or social groups.

iii) Who argued for extending the concept of development in terms of expanding
people’s choices and capabilities?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
....................................................................................................................... 43
Unpacking Development iv) Many scholars argue that development may cause.......................and even
de-development in some poor countries or regio.

3.5 LET US SUM UP

In this unit we explored the categorisation of countries in terms of developed,
developing and underdeveloped. This categorisation helps us to partially
understand the developed market-economy countries as first world, countries
which are industrialised or are in the process of industrialisation and are centrally
directed as second world and the least developed and poor countries as the third
world. Immanuel Wallerstein’s World System theory talks about the divided world
on the basis of economic development. The very levels of differentiations in the
forms of governments as both developed and underdeveloped countries have
been labelled as core and periphery respectively. Thus, the understanding of
development is no longer limited to economic growth, but rather, it is extended
to expanding people’s choices and capabilities.

3.6 KEY WORDS

Development : The upward movement of the entire
social system.
Three worlds, one planet (concept) : The conceptualisation of a three order
world is based on the traditional social
structure of French society here
nobility was the first order; clergy was
the second and rest others were counted
in third order.
Poverty : This has been defined in many ways-
mainly by a perty line falling below
which a person is called poor.
According to the World Bank people
living on a earning of less than
US$1.90 per day are classified in the
group of extreme poverty and people
living on an income less than $3.10 in
the moderate poverty group.
Westernization : The social process in which non-
western peoples are assimilated into
the western culture pattern.
Modernisation : Modernisation as “industrialisation,
urbanisation, increasing level of
literacy, education, wealth and social
mobility, and more complex and
diversified occupational structures”.
Sustainable Development : Sustainable development as the
development that meets the needs of
the present without compromising the
ability of future generations to meet
44 their own needs.
 Developed, Developing and
3.7 FURTHER READINGS Underdeveloped

Wolfgang, Sachs(edt) 1992. The Development Dictionary: A Guide to

Knowledgeand Power,London:London Zed Books pp1-21.

Bernstein, Henry.1973.Underdevelopment and development Harondsworth.

Penguin,1973

3.8 SPECIMEN ANSWERS TO CHECK YOUR

PROGRESS
Check Your Progress 1
i) After World War II and the decolonising process and the focus on the
addressing of major social problems of poverty, unemployment and social
exclusion.

ii) Yes, one should analyse the interactional outcomes of the cultural and
economic processes with regard to social development.
iii) Alfred Sauvy in 1952.
iv) The World Bank in its annual report titled World Development Report of
1978.
Check Your Progress 2
i) National Accounts Statistics.
ii) transferring of resources.
iii) Organization of Economic Cooperation and Development.
iv) Convenient.
Check Your Progress 3
i) Immanuel Wallerstein.
ii) developed and underdeveloped.
iii) Amartya Sen.
iv) Underdevelopment

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