Tuesday, July 03, 2007

Has Development failed?

This article questions whether the theory of 'development' as proposed by the UN, World Bank and IMF mostly, has failed. The article makes sense but has a ridiculous notion of development, only focusing on those 3 organisations who though shoot above their weight in some developing countries regarding their influence on policies, really have very little impact at all because they only worked at the governmental level until recently.

Development in its modern sense is about government -yes, in theory good governments lead to their citizens creating their own development by operating in a peaceful society which respects rights and gives the freedom to make the most of the market. Unfortunately most governments in impoverished countries are not like this, and trying to change those governments has (as history has shown) only made things worse. Stability and peace is the most important requirement for development. It would be nice to have functioning education, healthcare etc.. or even a functioning market, but without these, it is necessary to help create them.

If governments cannot create them, then other actors must and this is whether civil society comes in: NGOs, trade unions, co-operatives and of course, individuals. Of course there is a role for business/entrepreneurship too. Development is about all of these actors, and it is not failing; it is struggling to be efficient in overcoming the government deficiencies, the market deficiencies and the instability most developing countries are in.

Secondly development as seen by grass-roots organsiations, individuals themselves, and now even by the UN/IMF/WB is now seen as the opposite of what the article describes: it is about bottom-up, empowerment, skill provision, access to markets and so on. It is about partnership between different societal actors and it is about, eventually, reforming those limiting factors -especially government, through a gradual process. It takes time to educate citizens, train teachers or health workers, or create distribution channels for medicines, credit etc.

Once countries have skilled empowered citizens, they will inevitably be able to enter government or create new (capable) governments. If the WB/UN/IMF model has failed, that is really of little significance to development now, as those actors are now so minor. Much more important are civil society actors, entrepreneurs and 'foundations'. Development has barely even started yet... but in the last decade or more, it is sure that there are enough cases of it working in different ways in different countries to prove it can work. Just give all those actors the chance to do their bit and it will work, from the bottom-up.

Unfortunately development takes a long-time. That must be accepted. Unfortunately there are bad people doing bad things which is continually restricting development's potential. That must be accepted and worked around. There are many exciting examples of development taking off -explore the nextbillion.net, ashoka.org and hundreds more organisations that are connecting technology, people and organisations to create more success and scale-up successes to create greater impact.

1 comment:

luke b said...

i'm not educated enough on the topic, but why are you saying that the World Bank, IMF, and the UN are such small players? I agree that there are hundreds of other resources, from organizations like Ashoka to individuals like the Gates, for underdeveloped countries to work with, but the powerful institutions of WB, IMF etc still play a huge role in developing policy followed by governments around the world.