Definition of Development

Development is the overall improvement of economic, social, and political conditions.

The term “development” has different meanings in different contexts and may be explained in
multiple contexts. Development should be considered as progress toward multidimensional goals such
as poverty alleviation, employment generation, inequality reduction, and protection of human rights.

Rogers (1990:30) says, “Development is a long, participatory process of social change in a society
whose objective is the material and social progress of the majority of the population through a better
understanding of their environment.”

Changing Paradigms to Development

The term paradigm shift refers to a major change in the worldview, concepts, and practices of how
something works or is accomplished. A paradigm shift can happen within a wide variety of contexts
from scientific research to industry.

Paradigm shifts in industry often happen when new technology is introduced that radically alters the
production process or manufacturing of a good or service. These shifts are key drivers in many of the
processes that a society undergoes

I) DOMINANT PARADIGM:

This perspective emerged from the concept of development to be “modernisation.” Evolved

after World War II, the central idea of this paradigm was to solve development problems by
"modernising" underdeveloped countries. This thought was part of the dominant culture or
we can say the majority at least believed this (capitalism and embracing modernity) to be an
answer to development issues. This approach advised the society on how to be effective in
following the behaviour of the rich and influential or we can say the pattern of the capitalist
driven western economies.

Development was equated with economic growth. The modernisation approach is to promote
and support capitalist economic development. To an extent the followers of this paradigm
believe that the Western model of economic growth is universally applicable and persuaded
people to adopt the modern technology (Melkote & Leslie, 2015).

Paulo Freire (2008) defined four major levels of dominant paradigm:

♦ Cultural level- Modernisation promoted the mindset of individuals of underdeveloped

countries and advised them to abandon traditional beliefs to embrace innovation and
modernity at the cultural level. (Daniel Lerner 1958).

♦ Technocratic level- At the technocratic level, modernisation proposed to rely on scientific

methods.
♦ Political level- political freedom and the adoption of democratic systems need to be
followed at the political level.

♦ Economic level- At the economic level, virtues and power of the free market are blindly
followed, with no or minimal government intervention (Freire, 2008).

Communication was associated with the dissemination of information and messages aimed at
modernising the “backward or under–developed or developing” countries and their people.
Media seemed to be the loadstar as it provided communication initiatives that are largely
dependent on the traditional vertical or one-way model: SenderMessage-Channel-Receiver
(SMCR).

Communication in the dominant paradigm is linked with the linear mass media model aimed
at transmitting information and messages in a vertical or top-down fashion, believed in the
persuasive power of media, till the 1970s (Freire,2008).

Lasswell’s (1948) linear communication model reflected the use of communication to

persuade audiences to change behaviours. The failure of modernisation caused the re-analysis
of the theoretical models of communication, such as “the hypodermic needle theory” or “the
bullet theory,” which overemphasised the power of media over people. It is evident that
media alone cannot change people’s mind-set and behaviour and moreover audiences are not
as passive either (Freire, 2008).

The new perspectives in development communication began between 1970 and 1980
subsequently, an alternate way of thinking about development emerged.

Criticism

In the 1950s and 1960s, the main aim of modernisation was to measure economic growth as
development. Here the conception of development is a linear one based on trust in science,
reason, technology, and the free market (Freire, 2008).

This perspective is criticised for overtly focusing on the economic aspect and ignoring the
broader aspect of socio-cultural impact. Further, this paradigm is believed to be culturally
insensitive, theoretically flawed, and methodologically inadequate (Servaes, 1991).

II) THE OPPOSING PARADIGM (DEPENDENCY):

In the 1970s political-economic aspect of development was considered a better alternative for
“modernisation” and after strong opposition against the modernisation paradigm, emergence
of an alternative theoretical model set afloat, based on the dependency theory.
This school of thought criticises some of the core assumptions of the modernisation
paradigm, such as neglecting social, historical, and economic factors. It accuses the dominant
paradigm of being very Western-centric, overlooking any alternative route to development.
The dependency theorists emphasised the importance of the link between communication and
culture.

According to A.G. Frank (1969), development and underdevelopment are the two faces of the
same coin, shaped by specific historical, economic, and political factors. He developed this
view based on a structural analysis of the international capitalist system (Freire, 2008).

This alternate thinking of development challenged the dominant pattern of modernisation and
argued for political and economic restructuring for an equal distribution in society (Freire,
2008; Melkote & Leslie, 2015).

To address the imbalances in the world’s state of affairs, dependency theory proposed
developing countries to work on two levels.

1) National level they need to be economically self-reliant and less dependent on foreign
imports.
2) Internationally, they should form alliances among themselves to create a stronger
political presence (Freire, 2008).

It demanded a more balanced and equitable exchange of communication, information, and

cultural programs, among rich and poor countries. The main idea was to stimulate growth of
domestic industrialisation (McMichael 1996)., with the main difference between the two
theories being who was controlling and sending the message and for what purpose.

The supporters of this theory debated for re-analysing the communication agenda in lines of a
balanced communication flow internationally. They suggested pondering the various
components of communication within countries and to entrust the private media and
community media (Freire, 2008).

CRITICISM

But it was unable to deliver an appropriate method/s to address development challenges.

Critics accused this model of becoming too economically focused and not considering social
and cultural factors, like dominance theory. And the focus of communication is not prominent
in this paradigm. Media and flow of information played a minor role internationally. With all
differences between modernisation and dependency theories, their communication model was
the same: a one-way communication flow
III) THE EMERGING PARADIGM (PARTICIPATION):

This participatory model is less oriented towards political-economic dimension and more
rooted in cultural realities of development focusing on peoples’ participation. Slowly there
was a shift from economic aspects towards social aspects. This development was considered
positive for the long run. “Participation” is recognised as an important part of sustainable
development strategies. The refusal of the above two paradigms, only put forth this new
emerging paradigm, advocating for not just people’s participation but also for empowerment.

Paulo Freire (1983:76) refers to this as the right of all people to individually and collectively
speak their word: “This is not the privilege of some few men, but the right of every man.
Consequently, no one can say a true word alone—nor can he say it for another, in a
prescriptive act which robs others of their words”.

In order to share information, knowledge, trust, commitment, and right attitude in

development projects participation is very important in any decision making process for
development.

“Participatory” paradigm emphasised upon two-way communication principles and practices.

Development communication has increasingly moved toward a horizontal, “two-way”

model, which favours peoples’ active and direct interaction through consultation and dialogue
with the help of traditional form (one-way information dissemination) of mass media.

It also assesses risks, identifies solutions, and seeks consensus for action. These qualities are
seen as a key to the success and sustainable development efforts. This paradigm is changing
the way communication is conceived and applied. It shifts the emphasis from information
dissemination to situation analysis, from persuasion to participation.

Though media is no longer the central element, just a means of communication yet this
paradigm is broadening its scope, maintaining the key functions of informing people and
promoting change, still maintaining the importance of using communication to involve
stakeholders in the process of development.

Development Communication: Definition and Meaning

Development communication is mainly concerned with the role of information and

communication in social and economic development of an individual, society and nation. It
identifies what mass media can do directly or indirectly to improve the quality of life of both
urban and rural masses. ​
1) According to Nora Quebral (1975), “development communication is the art and
science of human communication applied to the speedy transformation of a country
and the mass of its people from poverty to a dynamic state of economic growth that
makes possible greater social equality and the larger fulfillment of the human
potential.” ​
It is an Art and Science of Human Communication – Development communication
is 'art', because one has to create his strategy, and programme to communicate to his
target audience. To communicate his message he will probably create a song, a drama,
a talk, a poster, a film or a skit. Nora calls development communication ' a science',
because it follows a process, a system. If one gives X inputs, Y will be the output. In
some cases, one may predict the output with a given input with other conditions
remaining the same. It works with the human hearts (because it is an art) and brain
(because it is a science) to yield a result which can be measured in terms of
economical growth. For example, advantages of adopting a high yielding variety of
seed may be propagated through a radio skit. This skit, when understood by the
farmers, motivates them to use the seeds for their own fields. And they may have
increased harvests which will definitely provide them with a higher income. ​

2) Everett M. Rogers (1983) says, “development communication refers to the uses to

which communication is put in order to further development. Such applications are
intended to either further development in a general way, such as by increasing the
level of the mass media exposure among a nation's citizens, in order to create a
favorable 'climate' for development, or to support a specific development programme
or project.”​

Communication Creates a Favorable ‘Climate’ for Development – This climate or

environment may be of two types: (a) physical climate and (b) psychological climate.
When knowledge about something is propagated or disseminated among a large
number of people, the users find many relevant things around them, say a special kind
of fertilizer. The radio programmes could be heard, the TV programmes could be seen
or posters could be seen on the walls on that particular fertilizer. This may be called
physical climate. Now, the disseminated message about the fertilizer works on the
psyche of the people. The information acquired through the various communication
media create a favorable attitude towards the new fertilizer. In the long run, they
might use or adopt it, if possible. But, definitely, resistance from the people in general
will be the minimum. Thus, with these two types of climates, the use of the new
fertilizer might be multiplied at a fast pace.​
PHILOSOPHY/ CHARACTERISTICS OF DEVELOPMENT COMMUNICATION

● Development Communication is Purposive – Other communication scholars hold

that communication is and should be 'ethically' non-purposive. A non-purposive
message is one, which is transmitted to a receiver directly or by means of a channel
(e.g., mass media) without any intention to influence the receiver. But, in
development communication, one looks for specific behavioral objectives, such as
getting farmers to go in for a specific variety of seed, pesticide, etc.​

● Development Communication is Positive – In development communication,

positive value is attached to what one communicates about. Take the example of the
high yielding variety of seed. Once adopted, the farmers can increase their harvest
manifold. This means more income which can be utilized to buy land, cattle or
equipment. This is what we mean by positive value attached to development
communication.​

● Development Communication is Pragmatic – In this context, we might define

pragmatic as practical and purposeful. In development communication, the purpose of
communication is important. Let us assume that we want the farmers to plant a
particular rice variety or the so-called miracle rice. The judgment or evaluation of
communication does not rest on the mere invention of communication activities
performed, such as the number of the press releases issued or the number of farm
visits made. Findings have shown that mere increase in the flow of information does
not necessarily result in those behavioral changes, which are desired to be achieved.
So, the development communicator is more concerned with ''What do I want to
communicate? With what objectives?', and "Did I get the intended results?" If so, how
well did I communicate?" Language, treatment style, and grammar take the back seat
to clarify the message and its effectiveness in producing the desired outcome. ​

Approaches to Development Communication

There are varied approaches to handle development communication which are not exclusive
to each other. The main approaches are:

1) DIFFUSION OF INNOVATION

This concept is given by Everette M Rogers. Mass communication is a two-step flow

process. It develops favourable attitudes through the mass media and leads to the
adaptation of interpersonal channels, especially opinion leaders.
 Modernization is taken as a process of diffusion, where individuals move from a
traditional way of life to a different, more technically developed way of life. This
approach is concerned with the process of diffusion and adoption of innovation in a
more systematic and planned way.

This diffusion model is a vertical or one-way perspective on communication, and

that active involvement in the process of the communication itself will accelerate
development.

This approach is based on the need for assessment of the target groups and helping
people to fulfil their needs by adoption of innovation. Communication has to play the
role of facilitator in disseminating innovations to the target groups.

Development is basically acceptance of change and innovations, ideas, practice and

technologies. Facilitating diffusion of innovations is an essential aspect of the
development.

All innovations need not be new to all people. An innovation refers to an idea
perceived as new by an individual. Diffusion is a process by which an innovation
spreads from its source of creation to the users or adopters. The essence of the
diffusion process is the human interaction, in which one person communicates a new
idea to another person.

There are four elements in any analysis of the diffusion process:

1. Innovation (any idea considered new by recipient)

2. Communication (the individual to another through certain channels).
3. Social system (among members of society)
4. Time taken (from the stage of innovation to the stage of adoption).

Stages in the adoption process: Five distinct stages have been identified by the
scholars: (Learn it in the same order)

1. Awareness stage – There is broad exposure of the innovation, but the individual does
not have sufficient information. He is yet to get motivated either to seek further
information or to act upon it or know how it functions (Knowledge).
2. Interest stage – Individual shows interest in the new idea, makes an effort to seek
additional information. However, the person is still undecided about its application.
Person forms a favourable/unfavourable attitude towards innovation (Persuasion).
3. Evaluation stage – The individual mentally applies the innovation to one’s own
situation, and then decides whether to try it or not. Person engages in activities that
lead to a choice to accept / unaccept the innovation (Decision).
4. Trial stage – An individual uses the innovations on a pilot stage (limited scale) to
decide about its utility and relevance to one’s own situation. Observation is that
people will not adopt an innovation without trying (Implementation).
 5. Adoption stage – It is the process through which the individual arrives at the decision
to adopt or reject the innovation from the time they first became aware of it.
Individuals decide to continue the use of innovation. Adoption implies sustained or
continuous use (Confirmation).

2) MAGIC MULTIPLIER

Mass Media is called the magic multiplier as it can multiply the messages and reach a
large number of people very fast and at one go. Its output does have great potential
and modernizing effect. It is their content that is the key to use in development.

Mass media are important in spreading awareness of new possibilities and practices,
but at the stage where decisions are being made about whether to adopt or not to
adopt; personal communication is far more likely to be influential. Therefore, the
general conclusion of this line of thought is that mass communication is less likely
than personal influence to have a direct effect on social behaviour.

Wilbur Schramm stated that content is the key to their use in development. Social
change of great magnitude can be accomplished when people are informed,
persuaded, educated. Information must flow at all levels so that they can participate in
the acts and decisions of nation building. He also argued that each person would have
a requirement of information of the work he would undertake, and there being
millions of workers would require information of various types.

The conventional channel of communication would never be able to meet this

demand. Therefore, modern communication technologies would be of great use to
meet this demand by multiplying the messages and reaching each and every worker
simultaneously.

We need magic multiplier for the following reasons:

1. For social change of great magnitude, people must be informed, educated, motivated
and persuaded. Information must flow, not only to them but also from them, so that
their needs can be known and they might participate in the acts and decisions of
nation-building.
2. As the required amount of information and learning is vast so is the targeted
population. Work should be organised and skills should be learnt at all levels of
society for better utilization of the resources of society.
3. The available channels of communication like interpersonal, group-communication,
traditional media are incapable to undertake this task, as this will require a lot of time
and resources. For a developing country, it’s difficult to gather a large pool of
resources and wait for such a long time. Mass media with its magical reach can do
this job in less time and resources.
 3) EMPATHY

Daniel Lerner (1958) in his book, Passing d Traditional Society, saw the problem
of 'modernizing' traditional societies. He saw the spread of literacy resulting from
urbanization as a necessary precondition to more complete modernization that would
include participatory political institutions.

Development was largely a matter of increasing productivity. And to increase this

productivity one must aspire, and it must begin in the psyche of the people.

Hence, it is basically "psychological". Urbanization literacy ---+ economic and

political participation ----+ the mass media exposure

According to D. Lerner, development failed to occur because peasants were unable to

'empathise' or imaginatively identify with the new role, and a changed and better way
of life and so remained fatalistic - unambitious and resistant to change.

Every change in society must originate and begin in the hearts of the people. If the
people would like to change, only then the development would begin.

What is required is that some means of providing such people with clues as to what
better things in life might be. Lerner saw the media as filling this need of promoting
interest among the people for a better life. Not only that, he saw the media as
machines, inspiring people for better things in life.

He said 'empathy' endows a person with the capacity to imagine himself as proprietor
of a big grocery store in a city, to wear nice clothes and live in a nice house, to be
interested in "what is going on in the world" and to "get out of his hole."

He pointed out the correlation between economic productivity and the media
provisions in different countries in support of his theory. The richest country had the
most newspapers, the radios and so on, and the poorest, the least.

Indicators of Development

Development indicators (Definition)

● Criteria for measuring the status of development.

● Numerical measure of quality of life in a country.
● Can consist of one statistical variable or of several variables combined together to
form an index. Example: HDI includes life expectancy, education and per capita
income.
● Illustrates the progress of a country from a certain perspective such as economic,
social, cultural, environmental, etc.
● GDP, GNP and per capita income are examples of economic development indicators.
● Literacy rate, life expectancy and poverty rate are examples of social development
indicators.

A) GDP/GNP (ECONOMIC INDICATORS)

National income is a macroeconomic variable that helps in determining the economic
stability of a nation. It represents the total income accrued for a country from all
economic activities in a year.

The most preferred way of calculating national income involves two concepts,
namely, GDP and GNP. GDP is gross domestic product and GNP is gross national
product.

GDP: GDP refers to the Gross Domestic Product and is a widely used measure to
determine the size of the economy of a nation. It represents the total amount of goods
and services produced in a country within a financial year.

GDP takes into account the purchase of newly produced goods and services for a
particular period. In calculating GDP, the focus is on the total value of goods and
services produced within the country borders, irrespective of whether the value
addition is due to residents or non residents of the country.

GNP: GNP is known as Gross National Product and it represents the total value of
goods and services produced by the residents of a country during a financial year.

GNP takes into consideration the income earned by the citizens of the country present
within or outside the country. It excludes the income generated by foreign nationals
who are residing in the country.

B) HUMAN DEVELOPMENT INDEX (HDI)

The Human Development Index (HDI) is a statistic developed and compiled by the
United Nations to measure various countries' levels of social and economic
development. The social and economic dimensions of a country are based on the
health of people, their level of education attainment and their standard of living.
 HDI is one of the best tools to keep track of the level of development of a country, as
it combines all major social and economic indicators that are responsible for
economic development.

The HDI combines:

1. Life Expectancy Index. Average life expectancy compared to a global
expected life expectancy.
2. Education Index: mean years of schooling and expected years of schooling
3. Income Index (GNI at PPP)

HDI is ranked on a scale from 0 to 1.0, with 1.0 being the highest human development.

4 tiers of HDI: Very high HDI (0.8- 1.0), High HDI (0.7-0.79), Medium HDI (0.55- 0.70)
and Low HDI (below 0.55).

Most developed countries have an HDI score of 0.8 or above (very high human development
tier)- stable governments, widespread education and healthcare, high life expectancies and
growing, powerful economies.

Least developed countries (LDCs) have HDI scores below 0.55 (low human development
tiers)- unstable governments, widespread poverty, lack of access to healthcare, and poor
education.

C) HAPPINESS INDEX (SOCIAL INDICATOR)

The World Happiness Report is a landmark survey of the state of global happiness that ranks
156 countries by how happy their citizens perceive themselves to be.

Happiness Index is a comprehensive statistical tool which measures the collective happiness
status of a country. This concept was first coined in 1979 by the King of Bhutan, Jigme
Singye Wangchuck. It is annually published by the United Nations Sustainable Development
Solutions Network based on survey scores of respondents on a scale of 0-10 (0 being lowest
and 10 being highest). First World Happiness annual report was released in 2012. March 20
was designated as the World Happiness Day by the UN General Assembly in 2012.
7 key indicators/variables of Happiness Index:

1. GDP Per Capita Income – The wealth of a country is significantly correlated to its
Happiness Index.

2. Social Support – Support from friends, relatives and society is highest in countries with
high happiness index.

3. Health Life Expectancy - Health life expectancy can be defined as an average number of
‘healthy’ years a child is estimated to live after birth. Countries with healthy and physically
fit people are the happiest.

4. Freedom to Make life Choices – Countries having more freedom to make life choices are
comparatively happier than those with restricted freedom.

5. Generosity – Level of generosity (any good deed performed) is also directly proportional
with the Happiness Index. Countries or citizens who are more involved in charitable activities
are happier.

6. Perceptions of Corruptions – Presence of corruption in the society on an average also

leads to the society being unhappy. Luckily though, this factor has the smallest correlation to
the Happiness Index.

7. Unexplained Happiness – This indicator focuses on the part of the Happiness Index that
cannot be explained by other – more easily measurable factors. Happiness is a very difficult
thing to measure and analyze and can never be 100% explained. That’s because our daily
feeling of happiness is dependent on an endless list of factors, most of which are emotional
and/or unmeasurable (subjective).

Modernisation Theory

By the end of the Second World War many of the countries in Africa, Asia and Latin America
had failed to develop and remained poor, despite exposure to capitalism. There was concern
amongst the leaders of the western developed countries, especially the United States, that
communism might spread into many of these countries, potentially harming American
business interests abroad and diminishing U.S. Power.

In this context, in the late 1940s, modernisation theory was developed, which aimed to
provide a specifically non-communist solution to poverty in the developing world – Its aim
was to spread a specifically industrialised, capitalist model of development through the
promotion of Western, democratic values.

There are two main aspects of modernisation theory – (1) its explanation of why poor
countries are underdeveloped, and (2) its proposed solution to underdevelopment.
Modernisation theory explained the underdevelopment of countries in Asia, Africa and Latin
America primarily in terms of cultural ‘barriers’ to development’, basically arguing that
developing countries were underdeveloped because their traditional values held them back;
other modernisation theorists focused more on economic barriers to development.

In order to develop, less developed countries basically needed to adopt a similar path to
development to the West. They needed to adopt Western cultural values and industrialise in
order to promote economic growth. In order to do this they would need help from Western
governments and companies, in the form of aid and investment.

Rostow’s five-stage model of development

Modernisation Theorists believed traditional societies needed Western assistance to develop.

There were numerous debates about the most effective ways to help countries develop, but
there was general consensus on the view that aid was a good thing and if Developing
countries were injected with money and western expertise it would help to erode ‘backward’
cultural barriers and kick starts their economies.

The most well-known version of modernization theory is Walt Rostow’s 5 stages of

economic growth. Rostow (1971) suggested that following initial investment, countries
would then set off on an evolutionary process in which they would progress up 5 stages of a
development ladder. The idea is that with help from West, developing countries could
develop a lot faster than we did.
Stage 1 – Traditional Society- Traditional societies whose economies are dominated by
subsistence farming. Such societies have little wealth to invest and have limited access to
modern industry and technology. Rostow argued that at this stage there are cultural barriers to
development.

Stage 2 – The preconditions for take off – the stage in which western aid packages bring
western values, practises and expertise into the society. This can take the form of:

● Science and technology – to improve agriculture

● Infrastructure – improving roads and cities communications
● Industry – western companies establishing factories

These provide the conditions for investment, attracting more companies into the country.

Stage 3 – Take off stage –The society experiences economic growth as new modern
practices become the norm. Profits are reinvested in infrastructure etc. and a new
entrepreneurial class emerges and urbanised that is willing to invest further and take risks.
The country now moves beyond subsistence economy and starts exporting goods to other
countries

This generates more wealth which then trickles down to the population as a whole who are
then able to become consumers of new products produced by new industries there and from
abroad.

Stage 4 – The drive to maturity- Industry becomes more diverse. Growth should spread to
different parts of the country as the state of technology improves - the economy moves from
being dependent on factor inputs for growth towards making better use of innovation to bring
about increases in real per capita incomes. More economic growth and investment in
education, media and birth control. The population start to realise new opportunities opening
up and strive to make the most of their lives.

Stage 5 – The age of high mass consumption- Output levels grow, enabling increased
consumer expenditure. There is a shift towards tertiary sector activity and the growth is
sustained by the expansion of a middle class of consumers. This is where economic growth
and production are at Western levels.
Durkheim

Paulo Freire Approach

Born in Brazil in 1921, Paulo Freire was an educator known for his radical ideas that sought
to deconstruct the passive, often “oppressive” nature of schooling. Best known for his book,
Pedagogy of the Oppressed, Freire believed that education was a means to building a “critical
consciousness” that would enable people to create change in their lives.

“There’s no such thing as neutral education. Education either functions as an instrument to

bring about conformity or freedom.”

Growing up in Recife, an extremely poor region of Brazil, during the economic depression of
the 1930s, Freire witnessed first-hand the struggle to pay attention in school with the
ever-present rumble of hunger in his stomach as a distraction. “I didn’t understand anything
because of my hunger. I wasn’t dumb. It wasn’t lack of interest,” he recalled. “My social
condition didn’t allow me to have an education. Experience showed me once again the
relationship between social class and knowledge”.

Freire observed what he called a “culture of silence” among the poor. He recognised their
political ignorance that was a direct result of the socio-economic situation and saw the
education system to be a political instrument in maintaining this class divide. Freire went on
to win a scholarship and eventually began to work in the state education system himself.
There, he developed adult literacy programs to help illiterate people to read and write,
proving that those who learned to do so developed a new sense of selfhood that allowed them
to look critically at the societal and political structures around them. Freire believed that
language is never neutral. Literacy empowered the poor to participate in society, setting them
free from the mindset that they could not alter their circumstances.

Pedagogy of the Oppressed is considered one of the foundational texts of the critical
pedagogy movement. Freire criticised what he called the “banking model” of education in
which the teacher is the all-knowing sage who bestows their knowledge on the empty vessel
student. Freire argued that this approach dehumanises and oppresses the student, hindering
the development of critical awareness.
Critical Pedagogy, the educator Henry Giroux explains, sees “teaching as an inherently
political act,” and “insist that issues of social justice and democracy itself are not distinct
from acts of teaching and learning.” Thus, Critical Pedagogy is the belief that teaching should
challenge learners to question and examine the dominant power structures and patterns of
inequality that shape the world.

Freire proposed a dialogical approach in which students become “active agents” in their own
education. When education is used as a form of self-development, rather than a memory test,
students realise that knowledge is power.

‘Reading the word and learning how to write the word so one can later read it are preceded
with learning how to write the world, that is, having the experience of changing the world
and touching the world.’

In Pedagogy of the Oppressed Paulo Freire calls for a critical- or problem-based education,
which enables students to critically engage with the world around them. In contrast to
traditional hierarchical power structures between teacher and students, power dynamics are
directly challenged and the teacher has as much to learn from the students about their worlds
and experiences, as the students can learn from a curriculum that engages with their interests
and needs.

It envisions learning as a transformative, emancipatory process through which the students

and teachers explore how to impact the world around them to make it a fairer and socially
just place. Students engage with the learning by developing a sense of wanting to take part in
shaping the world around them.

Neo-Marxism

In the 20th and 21st centuries, a number of sociologists have approached society with a mode
of analysis very much influenced by the writings of Karl Marx, however they have gone on to
adapt traditional Marxism in various ways. For example, some neo-Marxists share Marx's
analysis of capitalism but do not share his belief in a communist revolution. Others (such as
Antonio Gramsci or, in recent times, Stuart Hall) emphasise the cultural aspects of class
conflict rather than the economic focus of Marx's original writings. Those who have adapted
Marx's ideas in these ways are known as neo-Marxists.

Neo-Marxism refers to a collection of theories that amend or extend the Marxist theory.
These theories mostly appeared in the 20th century, aiming to explain questions that could
not be explained by using traditional Marxist methods.
Dependency Theory

Dependency theory refers to the idea that ex-colonial powers retain wealth at the expense of
the impoverished former colonies due to the wide-ranging effects of colonialism in Africa,
Asia, and Latin America. Resources are extracted from the 'peripheral' underdeveloped
ex-colonies to the 'core' wealthy, advanced states.

Dependency theory is broadly based on a Marxist theory of development. According to the

theory, the ex-colonies are being economically exploited by former colonial powers and need
to isolate themselves from capitalism and the ‘free market’ in order to develop.

Origins and Importance

According to Andre Gunder Frank, the global capitalist system we know today developed in
the sixteenth century. Through its processes, nations in Latin America, Asia, and Africa
became involved in a relationship of exploitation and dependency with the more powerful
European nations.

This global capitalist structure is organised so that the rich ‘core nations’ like the USA and
the UK are at one end, and the undeveloped or ‘peripheral nations’ are at the other end. The
core exploits the periphery through its economic and military dominance.

Based on Frank’s theory of dependency, world history from the 1500s to the 1960s can be
understood as a systematic process. The core developed nations accumulated wealth by
extracting resources from the peripheral developing countries for their own economic and
social development. This then left the peripheral countries poverty-stricken in the process.

Frank further argued that the developed nations kept the developing countries in a state of
underdevelopment to profit off their economic weakness.

For example: In poorer countries, raw materials are sold at lower prices, and workers are
forced to work for lower wages than in developed countries with higher living standards.

According to Frank, developed nations actively fear losing their dominance and prosperity to
the development of poorer countries.

Historical Viewpoint

Under colonialism, powerful nations took control of other territories for their own benefit.
The countries under colonial rule essentially became part of the 'mother country' and were
not seen as independent entities. Colonialism is fundamentally linked to the idea of 'empire
building’ or imperialism.
Frank argued that the prime period of colonial expansion took place between 1650 and 1900,
when Britain and other European nations used their naval and military powers to colonise the
rest of the world.

During this time, the powerful nations saw the rest of the world as sources to extract from and
exploit.

European colonies in the other parts of the world established plantations for agricultural
production in their colonies. The products were to be exported back to the mother country.
As the process evolved, colonies started engaging in specialised production - the production
became climate dependent.

For example: Sugarcane was exported from the Caribbean, coffee from Africa, spices from
Indonesia, and tea from India.

European countries further used this wealth to drive the industrial revolution by increasing
the value of production and manufacturing goods for export. This accelerated their capacity
to generate wealth but increased economic inequality between Europe and the rest of the
world.

The goods manufactured and produced through industrialisation entered the markets of
developing countries, weakening local economies and their ability to develop internally on
their own terms.

Dependency theorists believe that the colonising nations had no intention of helping the
colonies to develop, as they wanted to continue reaping benefits from their poverty.
Thus, exploitation persisted through neo-colonialism. Although European powers no longer
exercise political control over developing countries in Latin America, Asia, and Africa, they
still exploit them through subtle economic ways.

Principles of Dependency Theory

Andre Gunder Frank points out three main principles of dependency theory that underpin
the dependent relationship in neo-colonialism.

Terms of trade benefit Western interests

The terms of the trade keep benefiting Western interests and development. After colonialism,
many ex-colonies remained dependent on their export revenue for basic products, e.g., tea
and coffee crops. These products have low value in raw material form, so they are bought
cheaply but are then processed profitably in the West.
The increasing dominance of transnational corporations

Frank brings attention to the increased dominance of Transnational Corporations in

exploiting labour and resources in developing countries. As they are globally mobile, these
corporations offer lower wages to take advantage of poor countries and their workforces.
Developing countries often have no choice but to compete in a ‘race to the bottom’, which
harms their development.

Rich countries exploit developing countries

Frank further argues that wealthy countries send financial support to developing nations in
terms of loans with conditions attached, e.g. opening up their markets to Western companies
to continue exploiting them and making them dependent.

Criticism

● Modernisation theorists might argue against the opinion that isolation and
socialist/communist revolution are effective means to foster development, referring to
the failure of the Communist movements in Russia and in Eastern Europe.
● They would further add that many developing nations have benefitted by receiving
help from Western governments through Aid-for-Development programs. Countries
that have adapted to a capitalist structure have witnessed a faster development rate
than those that pursued communism.
● Neoliberals would mainly consider the internal factors responsible for
underdevelopment and not exploitation. In their opinion, poor governance and
corruption are to blame for the shortfalls in development. For example, neoliberals
argue that Africa needs to adapt to more of a capitalist structure and pursue less
isolationist policies.

World System Theory

One of the primary historical-sociological perspectives is that of the world-systems analysis,

a neo-Marxian approach built around analyses of modes of production. This approach
developed from an analysis of the economic and material world, specifically capitalism as it
emerged and developed in Europe beginning in the 1500s. The world-systems analysis
generally argues that this new economic and social system broke the power of earlier political
and economic empires and systems, and developed towards a dominant world system.
While originating in Europe, the world system that has emerged over the last five hundred
years is without limits and extends for its reach throughout the globe. In contrast to some
Marxian approaches, this world system is not always progressive in its effects it encompasses
a variety of modes of production, and could ultimately be replaced by a socialist world
system.

World systems theory is a response to the criticisms of Dependency Theory. World Systems
Theory was developed by Immanuel Wallerstein (1979).

Wallerstein accepts the fact ex-colonies are not doomed to be forever trapped in a state of
dependency; it is possible for them to climb the economic ladder of development, as many of
them have done. However, he also believes that the global capitalism system still requires
some countries, or at least regions within countries to be poor so they can be exploited by the
wealthy at the top. Wallerstein’s theory has four underlying principles:

1. One must look at the world system as a whole, rather than just at individual countries.
Dependency Theory tended to argue that countries are poor because they used to be
exploited by other countries. However focusing on countries (or governments/ nation
states) is the wrong level of analysis – governments today have declined in power,
whereas Corporations are more powerful than ever. Global Corporations, and global
capital, transcend national boundaries, and nation states (even wealthy ones) are
relatively powerless to control them, thus in order to understand why countries are
rich or poor, we should be looking at global economic institutions and corporations
rather than countries. Global Economic Institutions form what Wallerstein calls a
Modern World System, and all countries, rich and poor alike are caught up in it.

2. Wallerstein believes that the MWS is characterised by an international division of

labour consisting of a structured set of relations between three types of capitalist
zone:
● The core, or developed countries control world wages and monopolise the
production of manufactured goods.
● The semi-peripheral zone includes countries like South Africa or Brazil which
resemble the core in terms of their urban centres but also have areas of rural poverty
which resemble the peripheral countries. The core contracts work out to these
countries.
● Finally, there are the peripheral countries at the bottom, mainly in Africa, which
provide the raw materials such as cash crops to the core and semi periphery. These are
also the emerging markets in which the core attempts to market their manufactured
goods.
NB ‘countries’ are used to illustrate the three different zones above, but technically you could
have all three zones within one country – China and India contain regions which fit the
descriptors for each of the three zones.

3. Countries can be upwardly or downwardly mobile in the world system. This is one of
the key differences between World System’s Theory and Frank’s Dependency Theory.
Many countries, such as the BRIC nations have moved up from being peripheral
countries to semi-peripheral countries. However, most countries do not move up and
stay peripheral, and the ex-colonial powers (the wealthy European countries) are very
unlikely to slip down the global order.

4. The Modern World System is dynamic – core countries are constantly evolving new
ways of extracting profit from poorer countries and regions. Three examples of new
ways of extracting profit from poor countries include:

● Unfair Trade Rules – World trade is not a level playing field – The best example of
this is in Agriculture – Agriculture is Africa’s biggest economic sector. It has the
capacity to produce a lot more food and export to Europe and America but it can’t
because the EU and America spend billions every year subsidising their farmers so
imported African products seem more expensive.
● Western Corporations sometimes use their economic power to negotiate favourable
tax deals in the developing world. A good case in point here is the mining Company
Glencore in Zambia – The company recently arranged a long term contract to mine
copper with the Zambian government – it exports $6 billion a year in copper from
Zambia, but pays only $50m in tax, while as part of the deal the Zambian government
is contractually obliged to pay for all the electricity costs of mining – a total of $150m
a year.
● Land Grabs – These are currently happening all over Africa – Where a western
government or company buys up thousands of hectares of land in Africa with the
intention of planting it with food or biofule crops for export back to western markets.
In such cases the western companies take advantage of the cheap land and gain much
more than the African nations selling the land in the long term. In some case studies
of land grabs thousands of indigenous peoples are displaced.
Criticism of World Systems Theory

1. Wallerstein can also be criticised in the same way Dependency Theorists can be
criticised – there are more causes of underdevelopment than just Capitalism – Such as
cultural factors, corruption and ethnic conflict.Wallerstein puts too much emphasis of
economics and the dominance of Capitalism – There are other ways people can be
exploited and oppressed – such as tyrannical religious regimes for example. Also,
there are some areas are still not included in the World System – some tribal peoples
in South America and Bhutan for example remain relatively unaffected by global
capitalism.
2. Finally, Wallerstein’s concepts of Core, Semi-Periphery and Periphery are vague and
this means his theory is difficult to test in practise.

Neo-Liberalism

What Is Neoliberalism?
Neoliberalism is a policy model that encompasses both politics and economics. It favors
private enterprise and seeks to transfer the control of economic factors from the government
to the private sector.

It's an economic model or philosophy that emphasizes that, in a free society, greater economic
and social progress can be made when government regulation is minimized, government
spending and taxes are reduced, and the government doesn't have strict control over the
economy. Neoliberalism does not oppose all government intervention. However, it does wish
to see it limited to only when it's necessary to support free markets and free enterprise.

Many neoliberal policies concern the efficient functioning of free market capitalism and
focus on limiting government spending, government regulation, and public ownership.

Neoliberalism is often associated with the leadership of Margaret Thatcher, the prime
minister of the U.K. from 1979 to 1990 (and leader of the Conservative Party from 1975 to
1990) and Ronald Reagan, the 40th president of the U.S. from 1981 to 1989.

Understanding Neoliberalism
Neoliberalism is a political and economic philosophy that emphasizes free trade,
deregulation, globalization, and a reduction in government spending. It's related to
laissez-faire economics, a school of thought that prescribes a minimal amount of government
interference in the economic issues of individuals and society.

Laissez-faire economics proposes that continued economic growth will lead to technological
innovation, expansion of the free market, and limited state interference.

Characteristics of Neoliberalism
Neoliberalism involves the belief that greater economic freedom leads to greater economic
and social progress for individuals. It supports:

● Free enterprise, competition, deregulation, and the importance of individual

responsibility
● Opposition to the expansion of government power, state welfare, inflation
● Minimizing government control of industry and boosting private sector ownership of
business and property
● Free market capitalism and the efficient allocation of resources
● Globalization rather than heavily regulated markets and protectionism
● A reduction in government spending and lower taxes
● Less government control over economic activity to enhance the efficient functioning
of the economy
● An increase in the impact by the private sector on the economy
● A reduction in union power and greater flexibility in employment
● Government intervention when it's needed to help implement, sustain, and protect free
market activities

Criticism of Neoliberalism
There are many criticisms of neoliberalism.

Misguided Free Market Approach to Public Services

One common criticism of neoliberalism is that advocating for a free market approach in areas
such as health and education is misguided because these services are public services. Public
services are not subject to the same profit motivation as other industries.

More importantly, adopting a free market approach in the areas of health and education can
lead to an increase in inequality and the underfunding of resources (health and education) that
are necessary for the long-term health and viability of an economy.

Monopolies
The adoption of neoliberal policies in the Western world has run concurrent with a rise in
inequality in both wealth and income. While skilled workers may be in a position to
command higher wages, low-skilled workers are more likely to see stagnant wages.

Policies associated with neoliberalism tend to encourage the presence of monopolies, which
increase the profits of corporations at the expense of benefits to consumers.

Increased Financial Instability

Contrary to what proponents of neoliberalism typically claim, capital deregulation has not
necessarily helped economic development. Rather, capital deregulation has led to an increase
in financial instability including economic events that, at times, have sent shockwaves around
the world.

In fact, an International Monetary Fund (IMF) report on neoliberalism reveals that an

increase in capital flows has been a factor in the increased risk of adverse economic cycles.

Inequality
Neoliberal policies have been proven to increase inequality. This inequality can hinder the
long-term growth prospects of an economy. On one end of the spectrum, those who earn a
low income have limited spending power. At the same time, those who become richer have a
higher propensity to save.

In the latter scenario, wealth doesn't trickle down in the way that proponents of neoliberalism
claim it will.

Globalization
Finally, neoliberalism's emphasis on economic efficiency has encouraged globalization,
which opponents see as depriving sovereign nations of the right to self-determination.

Neoliberalism's naysayers also claim that its call to replace government-owned corporations
with private ones can reduce efficiency. While privatization may increase productivity, they
assert, the improvement may not be sustainable because of the world’s limited geographical
space.

In addition, those opposed to neoliberalism add that it is anti-democratic can lead to

exploitation and social injustice and may criminalize poverty.

What Are the Effects of Neoliberalism?

Some effects might be freer markets, access to more products and services to meet consumer
demand, greater revenue and higher profits. Price reductions due to greater competition can
also be an effect. Savings can result from a more efficient allocation of resources. The better
organization of workforces and ability to hire needed talent for specific jobs can result from
neoliberal policies, as well. Others might point out some of the negative effects believed to be
associated with neoliberalism. These could include economic inequality, the growth of
monopolies, a lack of job security, the loss of jobs due to outsourcing, and an increasing
indifference to the needs and well-being of individuals.

What Is an Example of Neoliberalism?

The North American Free Trade Agreement (NAFTA) is one example. By this agreement,
Canada, Mexico, and the U.S. agreed to remove all trade restrictions between their countries
to open up trade and increase the economic benefits for each.

Schumacher

Schumacher wonders why, given a world with so many different worldviews, the modern Western type
of economics has been accepted as the only kind of economics. It presupposes a solely materialistic
view of human life which lacks any concern with sufficiency.

He hopes for an economic system based on something like the Buddhist conviction about the
meaning of life; this system would be a Buddhist economics with different assumptions about life's
goal and meaning.

He singles out Gandhi, a Hindu, as "the greatest man of our time" (3) and looks to him for guidance
on an economics more in keeping with the nature of the human person and with Mother Nature. Such
a system would better conform to the teachings of Hinduism, Buddhism and other great religions of
the world. A Buddhist economics would be based on support of locally produced goods and local
services and on special regard for "the dignity of labor" (4).

Schumacher's concern is with the philosophical assumptions that undergird either a Western or
Eastern economic system and the nature of the development efforts that proceed from different
economic systems. With respect to material things, Schumacher stresses the value of having enough,
neither too much nor too little. Emphasis on having too many material goods stimulates greed and
envy which are not good for either the people of the developed or the developing world. He also cites
the importance of economic systems that can be sustained, that cooperate with, rather than war
against, Mother Nature. He disdains the use of atomic energy due to its destructive capabilities. He
favors resources whose use involves simplicity rather than complexity.

Non-Violent Economics
Schumacher voices his disturbance over the violence of war, especially atomic war, and the violence
that issues from the workings of the modern Western economic system. He emphasizes the essential
violence of the Western system in its pillaging of fossil fuels, its contemplation of utilizing nuclear
energy and its application of Western technology to the developing countries.

He is convinced that what is needed is a non-violent approach in all areas of human life. He does not
think that financial aid is the sole solution to development problems but that solutions must come form
the people of the developing countries themselves.

Schumacher again confronts two difficult problems (9). The first is “how to conduct international affairs
in such a manner that there is never again a resort to large-scale violence…", and the second
problem is how to conduct economic affairs in a manner that is compatible with both permanence and
peace (9). Western economics based on non-sustainable resources and unlimited progress cannot be
permanent (9). Western economics assumes an unlimited supply of cheap fossil fuels and, therefore,
is based on capital and not on income (10). He thinks that a contribution from nuclear energy will be
negligible due to growth in the world’s population; cost and appropriate nuclear technology will make it
prohibitive in poor countries (10-11).

The Western way of life can only be called violent; the earth cannot sustain it, and it creates insoluble
problems (11). The major task of modern man, according to Schumacher, is to find a way, in his
economic and political life, that is self-supporting (10-11). This is the challenge and we must make a
start (11). He recalls that there have been times in history when economics and culture did not destroy
the earth’s resources (11).

He is confident that any worthwhile development in the developing countries, who already have
hallowed traditions, must be based on what they can do themselves (12). Western aid is not the crux
of the matter (12). What is needed is a “dignified and non-violent way of life” (12). He warns that
nonviolence must permeate the whole of man’s activities if mankind is to be secure against a war of
annihilation, a war involving nuclear weapons (12). Economics and politics both need an “acceptable
philosophical base”(11-12). The West can help others with respect for indigenous cultures" (13).

Paths to Economic Growth

Schumacher considers possible paths to economic growth. The question is raised about the
desirability of the developing countries to follow the path taken by the already developed countries.
His response is in terms of the fact that most of the developing nations contain within themselves both
an urban and a rural area. In Schumacher's opinion, unless the unique problem of growing the
developing area of a society is addressed, the urban and rural areas will mutually poison each other
(20). The challenge is the inter-relations between the urban and rural sectors.

Schumacher's plan for the developing nations involves structure to produce an economic growth
environment, work opportunities, and the creation of a market among themselves to satisfy their own
needs. He concludes by raising basic questions about regional planning.

Help to Those Who Need It Most

Schumacher engages in a quest to help people understand why it seems so difficult to provide
assistance to those living in conditions that prevent them from leading a truly human life; he believes
that all who are able have a duty to alleviate these conditions. This means that assistance goes
beyond merely economic considerations.

The situation calls for a non-Western direction. At its root, development rests on workers and an
organic process that respects their natural work environment. The standard for development cited by
Schumacher is whether it "will encourage or discourage the spontaneous mobilization of this labor
power" (34). What is needed is what touches the inner core of the people themselves. Thinking and
talking in what are essentially Western development assumptions impedes the very help that is
needed.

Historically, Schumacher contends, "people have "discovered a pattern of living which fitted their
peculiar natural surroundings" (37). (34). Schumacher raises what he believes to be the crucial
question: "How can the impact of the West be canalized in such a way that it does not continue to
throw the people into apathy and paralysis?" (42). In this respect he concurs with Gandhi in his
insistence on local production and limited use of imports.

He concludes this section of the book with fifteen specific elements of the work to be done; he notes
that the details need to be described. He adopts the slogan "Find out what the people are trying to do
and help them to do it better" (42).

Schumacher's concern with the dignity of each human person, the economist's duty to address
provision for the basic necessities of life and the political challenge to address the threat to the life of
the planet are already evident signs of Schumacher's awareness of the importance of ideas of value.

Small is Beautiful

Small is Beautiful: Economics as if People Mattered contains in the very title two values that were the
foundation of Schumacher's life and work: his profession as an economist and his use of his
economic expertise to come to the aid of human persons, especially the poor, in all the areas in which
economic matters impinge on human life. As a context for Schumacher’s position on ideas of value,
this chapter will focus on some of the major ideas of value in Small Is Beautiful.*

The Problem of Production

The first issue Schumacher addresses is the problem of production. According to Schumacher, this
issue has not yet been addressed because of "the failure to distinguish between income and capital"
(14). He cites instances of how and why the capital of natural resources is in jeopardy. He notes that
"changes in the last twenty-five years, both in the quantity and the quality of man's industrial
processes, have produced an entirely new situation...." (18). Schumacher also worries about what
modern production methods have done to people.

Peace and Permanence

Schumacher echoes Gandhi's concern with the role of ethics in human life.He argues that the way to
peace is not to be found in the national or personal pursuit of wealth. Such a pursuit defies the limits
of nature's capacity to absorb man's attack on his environment. It also moves man away from those
wise, ethical values that preclude conflicts between nations and people. He holds that "from an
economic point of view, the central concept of wisdom is permanence" (33). Real economic
development that fosters peace requires cultivation of methods and systems that are sustainable. He
urges a return to spiritual values.

The Role of Economics

Schumacher discusses the relation of modern Western economics to the values of non-violence and
sustainability. According to Schumacher, today, what is not considered to be economic is not worthy of
consideration. Emphasis on the value of monetary profit excludes all other human values.
Schumacher refuses "to measure the immeasurable" (46).
He questions the imperialistic assumptions made by modern economists that lead them beyond the
province of economics as such. Certitude about quantity tends to ignorance about the value of quality,
e.g., the overriding significance about the value of non-renewable natural resources on which
everything depends. Awareness of the meta-economic, of people and the world of nature needs
consideration..

A Question of Size

Here Schumacher deals with the trend toward giantism and the value of attaining "smallness within
bigness" (64). He praises "the convenience, humanity and manageability of smallness" (65).

The Greatest Resource - Education

This is the book in which Schumacher presents the idea of one's center, of one's ideas of value, which
is the cornerstone of Schumacher's position on people, nature and God. Schumacher values
education as "the most vital of all resources" (79). Lord Snow's emphasis on the pursuit of scientific
knowledge needs to be complemented by an education that involves "the transmission of ideas of
value, of what to do with our lives" (82). For Schumacher, what is decisive is "a tool-box of powerful
ideas" (84) with which to meet the world.

Schumacher proceeds to critique six leading nineteenth century ideas that constitute the convictions
of many people today. He finds each of them to be based on unproved, reductionist speculation. He
insists that the scientist be in touch with his own view on what exists and what is really good for
people and that he be concerned that these ideas match the truth.

.The Proper Use of Land

Schumacher alludes to the fact that modern man has forgotten that he is a child of Mother Nature, of
the environment she has given him, especially the gift of the land. He holds that the land must be
respected for its own sake as well as for our sake. He stresses the interconnections among care for
the soil with all the other facets of a nation. He views industry and its methods as "an offensive
against the unpredictability, unpunctuality, general waywardness and cussedness of living nature,
including man" (110). Schumacher calls the reader back to an agriculture that respects the values of
"health, beauty, and permanence" (115).

Resources for Industry

Schumacher notes that the U.S., although richly endowed with natural resources, has to go beyond its
borders to support its lifestyle. He wonders whether "the earth's resources are likely to be adequate
for the further development of an industrial system that consumes so much and accomplishes so little"
(120). The U.S. is moving toward a crisis mode in its need for non-renewable natural resources.
Schumacher asserts that the fundamental issue is energy, and he examines the possible energy
sources. Growth in the use of energy sources leads him to conclude that there is a need for
conservation of the resources on which industry depends

Nuclear Energy - Salvation or Damnation?

At the outset, Schumacher warns, "Of all the changes introduced by man into the household of
nature, large-scale nuclear fission is undoubtedly the most dangerous and profound" (135). People
searching for an alternative to diminishing fossil fuels seem all too ready to move to nuclear energy
without counting the cost to people and to the environment. The problem of finding a place for spent
nuclear products seems to be insurmountable. He dreads the consequences of the use of nuclear
energy on those not yet born. He advises that "the direction should be toward non-violence rather
than violence; toward an harmonious cooperation with nature rather than a warfare against nature"
(143).

Technology with a Human Face

Schumacher points to the relevance of modern Western philosophy's view on education and the
development of its science and technology; he then proceeds to evaluate the nature of its technology.
Unlike nature which possesses an intrinsic self-control, modern Western technology lacks any internal
control of its basic elements. It has taken all real satisfaction out of the nature of work since at work
people do not really enjoy making anything. Schumacher lauds the introduction of a type of
technology that fits both human nature and Mother Nature; he espouses an intermediate technology
that contains the best features of both high and low technology. When Small Is Beautiful was
published in 1973, there was still much work to be done in the creation of an intermediate technology.
He does, however, call attention to the establishment of the Soil Association and the Intermediate
Technology Development Group, two instances of people at work giving technology a human face.

Development

Schumacher addresses two different lifestyles in each of the developing countries. - the lifestyle of the
many poor in the rural area and that of the few wealthy in the urban area. He does not think that
foreign aid is the solution for the less developed rural area. Nor does he believe that rapid
development of the rural section in a leap to the image of the urban sector is possible. The situation
demands "education, organization and discipline" in the poor rural sector (168).

Two Million Villages

People are precious, and development requires contact with their needs as they see them.
Schumacher insists that a new economic way of dealing with the crises that poor people confront
includes new economic assumptions. He warns against the dangerous consequences of a notion of
development that includes what might be the destructive values of the rich countries. For him, the best
aid is "a gift of useful knowledge" (197). He advises that this gift of know-how, of an appropriate
technology, can be acquired by the teamwork of administrators, businessmen and communicators in
donor countries in tandem with similar teams in the developing countries.

Toward a Large-Scale Theory of Organization

Above all, Schumacher values smallness, people in face-to-face relationships. He appreciates

attempts to bring smallness into largeness. The key is balancing the order of the large with the
freedom of the small. He points to the values of subsidiarity; vindication as defense of subsidiarity;
profit and loss statements and balance sheets; motivation of workers by offering challenging,
satisfying work and fostering creative ideas from the workers. He observes the value of moving from
practice to theory to ever more effective practice.

Ownership

To cope with the crises facing both people and nature, Schumacher searches for a better system than
the modern private enterprise system. He favors a description of private property as "property that is
tied to creative work" (263). He agrees with R. H. Tawney that this meaning is diminished as the scale
of the enterprise is enlarged. He deals with several principles regarding the nationalization of
industries that would guarantee service to what is truly the public interest.
New Patterns of Ownership

Schumacher considers the need for public expenditure to deal with the issue of public squalor in a
wealthy country like the U.S. He calls attention to the boon to private enterprise from the infrastructure
provided without charge by the public authorities of a society. He then offers suggestions about
reforming organizational structures in terms of a medium-sized firm, the already existing Scott Bader
Commonwealth, and he offers a plan for re-structuring the ownership of a large-scale firm

Gandhi
At the outset, Gandhian economics rejects the precepts and assumptions of mainstream
economics. It represents an alternative to mainstream economic theories as a way to promote
economic progress without emphasizing material pursuits, or compromising human
development.

Gandhi was also inspired by the ideas of Thoreau, Tolstoy, and Kropotkin. Tolstoy's
principles of simplicity, asceticism, and equalitarianism became a part of Gandhi's phlosophy.
Besides, the Indian scriptures (the Bhagavad Gita, and the Upanishads) and Indian saints such
as Kabir, Mira, and Guru Nanak, also left a deep impression on Gandhi. Gandhi's ideas on
economics are embedded in his philosophy of life.

The quintessence of Gandhian philosophy is that the human values and not the
market should govern life.

basic objectives of the Gandhian scheme of holistic development-

(l) human development (including moral development) for capability expansion,
(2) development in a balanced way through manual and intellectual labour
(development of body, mind and soul),
(3) development with social justice, rights and freedom. This is in accordance with
the principle of social and human development.
(4) attainment of self-sufficiency and self-reliance through rural development,
(5) reduction in poverty through the generation of additional income and
employment.
Theoretically, Gandhian approach to rural development may be labelled as ‘idealist’. It
attaches supreme importance to moral values and gives primacy to moral values over material
conditions. The Gandhians believe that the source of moral values in general lies in religion
and Hindu scriptures like the Upanishads and the Gita, in particular. The concept of ‘Rama
Rajya’ is the basis of Gandhi's idea of an ideal social order. Gandhi defined Rama Rajya as
“sovereignty of the people based on moral authority”. He did not view Rama as a king, and
people as his subjects. In the Gandhian scheme, ‘Rama’ stood for God or one’s own ‘inner
voice’ Gandhi believed in a democratic social order in which people are supreme. Their
supremacy is, however, not absolute. It is subject to moral values.

Ideal Village:
The village is the basic unit of the Gandhian ideal social order. Gandhi succinctly pointed out,
“If the village perishes India will perish too…. We have to make a choice between India of
the villages that are as ancient as herself and India of the cities which are a creation of foreign
domination”.

Gandhi’s ideal village belongs to the Pre-British period, when Indian villages were supposed
to constitute the federation of self-governing autonomous republics.
According to Gandhiji, this federation will be brought about not by coercion or compulsion
but by the voluntary offer of every village republic to join such a federation. The work of the
central authority will only be to coordinate the work of different village republics and to
supervise and manage things of common interest, as education, basic industries, health,
currency, banking etc.

The central authority will have no power to enforce its decisions on village republics except
the moral pressure or power of persuasion. The economic system and transport system
introduced by the British have destroyed the “republican’ character of the villages. Gandhi,
however, admitted that in olden times tyranny and oppression were in fact practised by feudal
chiefs. But, “odds were even”. Today the odds are heavy. It is most demoralising.” In this
way in the Gandhian scheme of things the ancient ‘republic’, an Indian village without
tyranny and exploitation serves as a model unit.

1) Decentralisation:
Gandhi firmly believes that village republics can be built only through decentralisation of
social and political power. In such a system decision-making power will be vested in the
Village Panchayat rather than in the State and the national capital. The representatives would
be elected by all adults for a fixed period of five years. The elected representatives would
constitute a council, called the Panchayat.
The Panchayat exercises legislative, executive and judicial functions. It would look after
education, health and sanitation of the village. It would be the Panchayats responsibility to
protect and uplift ‘untouchables’ and other poor people. Resources for Gandhian Approach to
managing village affairs would be raised from the villages.

All the conflicts and disputes would be resolved within the village. And as far as possible not
a single case is to be referred to courts outside the village. The Panchayat would play its role
in propagating the importance of moral and spiritual values among the ruralites for bringing
about rural reconstruction.

Apart from managing its own affairs the village would also be capable of defending itself
against any invasion. A non-violent peace brigade of volunteers would be organised to defend
the village. This corps would be different from the usual military formation. They would
repose the utmost faith in non-violence and God.

2) Self-Sufficiency:
Such a decentralised polity implies a decentralised economy. It can be attained only through
self-sufficiency at the village level. The village should be self-sufficient as far as its basic
needs – food, clothing, and other necessities – are concerned. The village has to import
certain things which it cannot produce in the village.

“We shall have to produce more of what we can, in order thereby to obtain in exchange, what
we are unable to produce”. The village should produce food-crops and cotton in order to meet
its requirements. Some lands should also be earmarked for cattle and for a playground for
adults and children. If some land is still available, it should be used for growing useful cash
crops like tobacco, opium, etc. to enable the village to get in exchange for things which it
does not produce.

Village economy should be planned with a view to providing full employment to all the
adults of the village. Each man should be guaranteed employment to enable him to meet his
basic needs in the village itself so that he is not forced to migrate to towns. In the ultimate
analysis full employment should be linked with equality.

Physical labour occupies a central place in the Gandhian concept of the self-sufficient
village. In this respect he was highly influenced by Ruskin and Tolstoy.
According to Gandhi, each man must do physical labour to earn his bread. Physical labour is
necessary for moral discipline and for the sound development of the mind. Intellectual labour
is only for one’s own satisfaction and one should not demand payment for it. The needs of the
body must be supplied by the body. Gandhi said, “If all laboured for their bread then there
would be enough food and enough leisure for all.” Shriman Narayan rightly observes,
“Gandhiji recognised toil to be not a curse but the joyful business of life as it has the power to
make man healthier, merrier, fitter and kindlier”.

3) Industrialization:
Gandhiji maintained that industrialization would help only a few and will lead to
concentration of economic power. Industrialization leads to passive or active exploitation of
the villages. It encourages competition. Large scale production requires marketing. Marketing
means profit-seeking through an exploitative mechanism.

Moreover, industrialization replaces manpower and hence it adds to unemployment. In a

country like India, where millions of labourers in the villages do not get work for even six
months in a year, industrialization will not only increase unemployment but force labourers to
migrate to urban areas. This will ruin villages.

In order to avoid such a catastrophe, village and cottage industries should be revived. They
provide employment to meet the needs of the villagers and facilitate village self-sufficiency.
Gandhians are not against machines per se if it meets two aims: self-sufficiency and full
employment. According to Gandhi, there would be no objection to villagers using even the
modern machines and tools that they could make and could afford to use. Only they should
not be used as a means of exploitation of others.

4) Trusteeship:
Gandhiji was not against the institution of private property. But he wanted to restrict the right
of private property to what was necessary to yield an honourable livelihood. For the excess he
prescribed the principle of trusteeship. Gandhiji emphasized the principle of trusteeship in
social and economic affairs. He firmly believed that all social property should be held in
trust. The capitalists would take care not only of themselves but also of others. Some of their
surplus wealth would be used for the rest of the society.

The poor workers, under trusteeship, would consider the capitalists as their benefactors; and
would repose faith in their noble intentions. Gandhiji felt that if such a trusteeship were
established, the welfare of the workers would increase and the clash between the workers and
employers would be avoided. Trusteeship would help considerably “in realising a state of
equality on earth.”
\
Gandhiji firmly believed that land should not be owned by any individual. Land belongs to
God. Hence, individual ownership of land should be shunned. For that a landowner should be
persuaded to become a trustee of his land. He should be convinced that the land he owns does
not belong to him. Land belongs to the community and must be used for the welfare of the
community. They are merely trustees. By persuasion the heart of landowners should be
changed and they should be induced to donate their land voluntarily.

If the land owners do not oblige and continue to exploit the poor workers, the latter should
organise non-violent, non- cooperation, civil disobedience struggles against them. Gandhiji
rightly held the view that “no person can amass wealth without the cooperation, willing or
forced, of the people concerned”.

If this knowledge were to penetrate and spread amongst the poor, they would become strong
and learn how to free themselves from the crushing inequalities which have pushed them to
the verge of starvation. But the oppressed should not take recourse to violent methods. In the
Gandhian scheme of things, the principle of cooperation, love and service is most important
and violence has no place in it. Violence is against “moral values’ and civilized society is
inconceivable in the absence of moral values.
Gandhiji’s concept of development is oriented to the uplift of the common man. He preferred
village habitats to megalopolises and Swadeshi craft to imported technology for the economic
well being of the common man. He stressed the need for cottage industries in place of
gigantic industries and advocated for a decentralised economy instead of a centralised one.

He realised the need for integrated rural development and believed that education, health and
vocation should be properly integrated. He emphasised the need for education and training
which he called ‘Naitalim’ (New training) for rural reconstruction.

In fine, Gandhian approach to rural development strives to reconstruct village republics

which would be non-violent, self- governed and self-sufficient so far as the basic necessities
of ruralites are concerned. Apart from creating a new socio-economic order, it Endeavour’s to
transform man; otherwise the changes in the socio-economic order will be short-lived.

Gandhi aims at what we may call sustainable development, balanced development

of body, mind and soul. Gandhi had realized that human development is not just
material or economic; it has to be moral, it should be able to instill the values of
equality, liberty and dignity in the people; it must provide the persons with courage to
protest against injustice. His emphasis on decentralization, community based
economics, self-sufficiency, handicrafts, rural development, and use of low capital
intensive appropriate technology indicate his vision for a self-sufficient economy.

According to Gandhi nature provides just enough, and not more, for our daily needs.
Gandhi's basic aim was to have an all-round development of the society that
included human development along with socio-economic- political development.
Gandhian programme is holistic and multidimensional. The objective of his
constructive work is the creation of non-violent society. Gandhi envisages a healthy
society based on harmony and dialogue, where the ideas of equality and justice are
translated in the lives of teeming millions.

According to him life cannot be divided in sphere like social, political, economic,
moral and religious. If one part of the society suffers, all parts suffer.

Social involvement is very important to him. Gandhi visualized a society of diverse

people based on mutual understanding, mutual cooperation and mutual respect. He
wanted freedom and equality for all. Gandhi transcends barriers of religion, rituals,
caste, class and colour.

Gandhi visualized exploitation free society, based on cooperation and ethics. His
vision included productive employment for India's millions, schemes for rebuilding
villages and creating communities of care and concern, promotion of khadi and local
handicrafts, production of need-based basic goods, empowering people by imparting
basic education and required skills to enable them to create decentralized structures
of power, and ensuring equality of opportunity for all. He believed that human wants
have to be limited, and no one should suffer from deprivation and want of basic
necessities. And for that the required means of production should be socially
controlled. His emphasis is on collectivity and not on individual needs and greed.
Wealth has to be created collectively and enjoyed collectively.

Gandhi draws our attention to the need to protect the environment and to guard
against the abuse of natural resources. Our mindless destruction of natural wealth is
alarming. Mighty projects, big dams, giant industries and other massive ventures
raise questions about the quality of life affected by them. The quest for the mirage of
material development often leads to the destruction of forests, ecological
imbalances, scarcity of water, soil erosion, silting of rivers and desertification pose
grave dangers to environment. Gandhi encourages us to rethink about our
inadequate and risky development model putting too much stress on economic
prosperity. He does not believe in survival of the fittest, but survival and good
survival of all, not greatest good of all, but greatest good of all.

Free Market Vs Interventionist

Free Market

In a free-market economy, the forces of supply and demand are free of interference by a
government, other authority or price-setting monopolies.
In a completely free market, buyers and sellers are allowed to function freely; i.e. they can
buy/sell/trade; on the basis of mutual agreement on price without the intervention of state in
the form of taxes, regulation or subsidies. Free market stocks, in financial markets, are
securities that are widely traded and whose prices are independent of availability. In
foreign-exchange markets too, market pegging of exchange rates by the government does not
exist and thus the rise and fall of the rates occurs freely through supply and demand for
currency.

Simply put, a free market is a review term for a range of exchanges that take place in the
society. All the exchanges in a free market are voluntary agreements between two parties who
trade in the form of goods and services; the buyers and sellers do not coerce each other. Free
markets differ from a mixed economy, where the intervention by states exists.

State Interventionism

Economic interventionism (sometimes state interventionism) is an economic policy

perspective favoring government intervention in the market process to correct the market
failures and promote the general welfare of the people. An economic intervention is an action
taken by a government or international institution in a market economy in an effort to impact
the economy beyond the basic regulation of fraud and enforcement of contracts and provision
of public goods. Economic intervention can be aimed at a variety of political or economic
objectives, such as promoting economic growth, increasing employment, raising wages,
raising or reducing prices, promoting income equality, managing the money supply and
interest rates, increasing profits, or addressing market failures.

The term intervention assumes on a philosophical level that the state and economy should be
inherently separated from each other; therefore the terminology applies to capitalist
market-based economies where government action interrupts the market forces at play
through regulations, economic policies or subsidies (however state-owned enterprises that
operate in the market do not constitute an intervention). The term "intervention" is typically
used by advocates of laissez-faire and free markets.

Capitalist market economies that feature high degrees of state intervention are often referred
to as mixed economies.
Trickle-Down Economy

What Is Trickle-Down Economics?

Trickle-down economics and its policies employ the theory that tax breaks and benefits for
corporations and the wealthy will trickle down and eventually benefit everyone.

Tools like reduced income tax and capital gains tax breaks are offered to large businesses,
investors, and entrepreneurs to stimulate economic growth.

The trickle-down theory includes commonly debated policies associated with supply-side
economics. A policy is considered a “trickle-down” if it benefits wealthy businesses and
individuals in the short run to boost standards of living for all individuals and the economy in
the long run.

Understanding Trickle-Down Economics

Trickle-down economics is a common political debate, associated with supply-side
economics. While there is no single comprehensive economic policy identified as
trickle-down economics, a policy is considered “trickle-down” if it disproportionately
benefits wealthy businesses and individuals in the short run but is designed to boost standards
of living for all individuals in the long run.

Both President Herbert Hoover’s stimulus efforts during the Great Depression and President
Ronald Reagan's use of income tax cuts were described as "trickle-down."
Supply-side economics theorists believe that less regulation and tax cuts for corporations and
high-income earners trigger company investment and stimulate employment.

Trickle-Down Economic Policies

Corporate income tax reduction, tax cuts for the wealthy, and deregulation are the initial steps
of a trickle-down policy. As more money remains in the corporate sector, business investment
may be triggered with new factories, upgraded technology, equipment, and an increase in
employment.

Wealthy individuals may spend more, creating more demand for goods in the economy. The
increase in the labor market leads to more spending and investing, creating growth in
industries such as housing, automobiles, consumer goods, and retail.

The boost in the economy leads to tax revenue increases and according to the trickle-down
economic theory, the additional revenue will pay for the original tax cuts for the wealthy and
corporations.

Criticism of Trickle Down Economics

Although trickle-down theorists argue that more money in the hands of the wealthy and
corporations promotes spending and free-market capitalism, it does so only with government
intervention.

Critics argue that the added benefits the wealthy receive can distort the economic structure as
lower-income earners without an equal tax cut adds to income inequality. Many economists
counter that cutting taxes for the poor and working families boosts the economy by increasing
spending on goods and services whereas a tax cut for a corporation may go to stock buybacks
or increased savings for the wealthy.
Globalisation
Put simply, globalization is the connection of different parts of the world. In economics,
globalization can be defined as the process in which businesses, organizations, and countries
begin operating on an international scale. Globalization is most often used in an economic
context, but it also affects and is affected by politics and culture. In general, globalization has
been shown to increase the standard of living in developing countries, but some analysts warn
that globalization can have a negative effect on local or emerging economies and individual
workers.

A Historical View

Globalization is not new. Since the start of civilization, people have traded goods with their
neighbors. As cultures advanced, they were able to travel farther afield to trade their own
goods for desirable products found elsewhere. The Silk Road, an ancient network of trade
routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far
East, is an example of early globalization. For more than 1,500 years, Europeans traded glass
and manufactured goods for Chinese silk and spices, contributing to a global economy in
which both Europe and Asia became accustomed to goods from far away. Following the
European exploration of the New World, globalization occurred on a grand scale; the
widespread transfer of plants, animals, foods, cultures, and ideas became known as the
Columbian Exchange. The Triangular Trade network in which ships carried manufactured
goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to
Europe is another example of globalization. The resulting spread of slavery demonstrates that
globalization can hurt people just as easily as it can connect people.

The rate of globalization has increased in recent years, a result of rapid advancements in
communication and transportation. Advances in communication enable businesses to identify
opportunities for investment. At the same time, innovations in information technology enable
immediate communication and the rapid transfer of financial assets across national borders.
Improved fiscal policies within countries and international trade agreements between them
also facilitate globalization. Political and economic stability facilitate globalization as well.
The relative instability of many African nations is cited by experts as one of the reasons why
Africa has not benefited from globalization as much as countries in Asia and Latin America.

Benefits of Globalization

Globalization provides businesses with a competitive advantage by allowing them to source

raw materials where they are inexpensive. Globalization also gives organizations the
opportunity to take advantage of lower labor costs in developing countries, while leveraging
the technical expertise and experience of more developed economies.

With globalization, different parts of a product may be made in different regions of the world.
Globalization has long been used by the automotive industry, for instance, where different
parts of a car may be manufactured in different countries. Businesses in several different
countries may be involved in producing even seemingly simple products such as cotton
T-shirts.

Globalization affects services too. Many businesses located in the United States have
outsourced their call centers or information technology services to companies in India. As
part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies
relocated their operations to Mexico, where labor costs are lower. The result is more jobs in
countries where jobs are needed, which can have a positive effect on the national economy
and result in a higher standard of living. China is a prime example of a country that has
benefited immensely from globalization. Another example is Vietnam, where globalization
has contributed to an increase in the prices for rice, lifting many poor rice farmers out of
poverty. As the standard of living increased, more children of poor families left work and
attended school.

Consumers benefit too. In general, globalization decreases the cost of manufacturing. This
means that companies can offer goods at a lower price to consumers. The average cost of
goods is a key aspect that contributes to increases in the standard of living. Consumers also
have access to a wider variety of goods. In some cases, this may contribute to improved
health by enabling a more varied and healthier diet; in others, it is blamed for increases in
unhealthy food consumption and diabetes.

Downsides

Not everything about globalization is beneficial. Any change has winners and losers, and the
people living in communities that had been dependent on jobs outsourced elsewhere often
suffer. Effectively, this means that workers in the developed world must compete with
lower-cost markets for jobs; unions and workers may be unable to defend against the threat of
corporations that offer the alternative between lower pay or losing jobs to a supplier in a less
expensive labor market.

The situation is more complex in the developing world, where economies are undergoing
rapid change. Indeed, the working conditions of people at some points in the supply chain are
deplorable. The garment industry in Bangladesh, for instance, employs an estimated four
million people, but the average worker earns less in a month than a U.S. worker earns in a
day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics
also suggest that employment opportunities for children in poor countries may increase
negative impacts of child labor and lure children of poor families away from school. In
general, critics blame the pressures of globalization for encouraging an environment that
exploits workers in countries that do not offer sufficient protections.

Studies also suggest that globalization may contribute to income disparity and inequality
between the more educated and less educated members of a society. This means that
unskilled workers may be affected by declining wages, which are under constant pressure
from globalization.

Into the Future

Regardless of the downsides, globalization is here to stay. The result is a smaller, more
connected world. Socially, globalization has facilitated the exchange of ideas and cultures,
contributing to a world view in which people are more open and tolerant of one another.