Chapter 1 Development-8-11

Chapter 1 Development-8-11 - de Janvry and Sadoulet Chapter...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
de Janvry and Sadoulet 1 8/24/11 Chapter 1 What is development? Issues and indicators Revised August 24, 2011 Seven dimensions of development Development is about well-being, and well-being is clearly a multidimensional concept implying trade-offs, with the consequence that defining development is an ideological choice . Few would disagree with the generic statement that “development” is preferable to “underdevelopment”. At the same time, there is considerable disagreement across people and nations as to what we mean by development. It is one thing for some and another for others. Some may, for example, like strong states that are extensively engaged in production and are the guardians of basic needs in health, education, and housing. To varying extent, this would apply to most of continental Europe and Canada where there are many public enterprises and the state is the provider of extensive social assistance. Others may prefer to rely more extensively on market forces to achieve high income growth, accompanied by social safety nets for the poor, but with basic human needs in health and education extensively provided through the private sector. This would characterize countries such as the United States, the United Kingdom, and Brazil. Yet other societies place strong emphasis on equity and on maintaining inequalities within restricted bounds. This would be the case for the Nordic countries and Japan that tax heavily high incomes to level out social inequalities through transfers. So, we start the study of development with a paradox. We agree on the desirability of a state of affairs–– development––but we have a difficult time agreeing on defining what it is. This is because development is multidimensional. While there may be situations where we achieve gains simultaneously in all these dimensions of development (a situation that we will characterize as “stochastic dominance”), in most situations there will be trade-offs, implying the need to establish social priorities. The dimensions of development and their relative importance are in the end a social and a personal choice, i.e., an ideological statement. So, when talking about development and emitting judgments about it, it is important to be clear as to what we mean. Without this, debates about development are Take-home messages for Chapter 1 1. Development is about well-being, and well-being is a multidimensional concept. Hence, there is not one single definition of development that everybody can agree upon. Any development diagnostic (positive analysis) and development program (normative analysis) must clearly specify the definition of development that is being used, and this is a personal and social choice. 2. We recognize
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/14/2011 for the course ECON 171 taught by Professor De janvry during the Spring '07 term at Berkeley.

Page1 / 28

Chapter 1 Development-8-11 - de Janvry and Sadoulet Chapter...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online