FOUR THEORIES HOW DEVELOPMENT HAPPENS

FOUR THEORIES HOW DEVELOPMENT HAPPENS

1. Neoliberalism

   • MARKET LED GROWTH
     • Emphasizes actions of free markets, unfettered action of buying and selling as best means of providing development.
       • NEOLIBERALS do not trust state to act in interest of people, and competition within markets, carried out by pri indi and companies will bring the
     • NEOLIBERALS
       • Action of free markets. competition within markets by priv indi and companies will bring most efficient and effective production and distribution of goods & services.
         • economy grows from this efficiancy and the wealth generated will benefit everyoneand help poorest.
           • unfetterd markets
   • capitalism

2. Structuralism

   • Agues the need for states governments and international agencies to control markets
     • insure competition is fair and distribute the benefits of wealth.
     • Intentional development actions: restrictions on imports, control over financial flows, subsidies to particular industries necessary to beat obstacles to development
       • when many southern countries became sovereign states, after peroids of colonialism, development plans were state led.
   • state-led

3. Interventionism

   • state-led and market-led
     • combinationn of the two are important strategies and often necessary.
       • reffered to as interventionism.

4. People-centered development

   • critical of all economic approaches
     • redistribution of wealth, improving education and skills,health, improving conditions for people to become self reliant, ensuring governlment is well managed and accountable.
       • participation and empowerment
       • micro level aims not macro
   • idea developed in 1970s
     • in response to what was seen as top-down nature of development strategies.(structuralist)