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Integrating contested aspirations, processes & policy: development as hanging in, stepping up & stepping

outAndrew Dorward

http://www.soas.ac.uk/staff/staff37115.php

School of Oriental & African Studies

Reading, 30 January 2009

Centre for Development, Environment & Policy.CeDEP

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Integrating contested aspirations, processes & policy: development as hanging in,

stepping up & stepping out

Introduction Agreements & Disagreements in Development

Analysis & Practice Conceptualising development as hanging in,

stepping up & stepping out Promoting development dialogue Conclusions

Agreements & Disagreements in DevelopmentKanbur (2001): Group A: ‘Finance Ministry’

perspective Group B: ‘Civil Society’ perspective

Convergence: importance of health & education, economic growth, externalities & public goods, institutions, more nuanced understandings of complementary roles of state & markets

Divergence:empirical evidence on changes in welfare &

poverty (‘aggregation’ problems)time horizons, basic market structures, ‘pro-’ & ‘anti-’ growth positions.

Polarised negotiations, retreat to simplistic statements

Need dialogue, more nuanced but still relatively simple messages & policy prescriptions. 3

Agreements & Disagreements in DevelopmentBut ……

Fundamental differences in underlying understandings of the goals of, constraints to, & processes for development?

How can dialogue around relatively simple messages be constructed when development & differences in perspectives of development are nuanced & complex?

Fundamental ‘civil society’ challenges to neo-liberal views? constraints to growth, processes of global & local change, interpretations of history, goals of development

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Sustainability

Limits to growth? mineral & energy stocks, biodiversity & climate change; globalisation of growth & consumer life styles unsustainable ….

…..but technical & institutional innovation have addressed similar problems in the past & will again …

…..but scale & externalities too large, consumer & multinational interests too entrenched, costs of environmental change too heavily borne by poor - radical rethink needed on growth & development itself.

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Globalisation Opens up poorer countries & people to exploitation

by TNCs & developed countries, exploitation of natural resources for low prices, destruction of local industry from dumping……

…..but trade & liberalised markets allow specialisation & gains from competitive efficiency outweighing losses, trade a key driver of growth, globalisation inevitable & desirable…..

……but gains from specialisation depend on competition & balanced power & property rights absent from developing country markets; developing countries have gained from trade if also pursuing protectionist policies: many aspects of globalisation not inevitable or desirable.

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Development Neo-liberals: consistent use of theory & evidence on

main historical economic growth & poverty reduction – civil society views ignore these, with inconsistent

theories that never yield lasting gain. Civil society: local success stories with wider uptake

limited by neo-liberal domination of political economy – neo-liberals use inconsistent theory & evidence on

historical processes of unsustainable economic growth & material benefit for the few & destitution for the many

Each side selective learning & generalisationsignores evidence against own arguments ignores difficulties in scaling up or out of success.

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Second European Forum on Sustainable Rural Development, Berlin, June 2007

WDR presentation Three worlds: (a) poor agriculture based economies, rural poverty,

(b) transforming economies, low agric GDP, rural poverty (c) urbanised economies, more urban poverty.

evolutionary path: intensification & commercialisation of initially smallholder agriculture driving & sustaining non-farm growth.

similar processes needed today removal of agricultural trade distortions & protection making local product, factor & service markets work better; promotion & empowerment of producer organisations; greater quantity & quality of investment in public goods; very selective, market smart, temporary subsidies & food staple

protection sometimes new thinking & investment in GMO & conventional research new investments in carbon trading & climate change adaptation

& more efficient & agric/ food friendly biofuel systems fundamentals of market development, good governance, sound

macro-economic management.

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Second European Forum on Sustainable Rural Development, Civil society: neo-imperialist experience & interests in WDR

overly simplistic, gross reductionism, conflation/ selective analysis of historical states & processes with desirable states & processes.

marginalisation of rural poor through globalisation & privatisation call for genuine new thinking, aid & policies that ‘do not harm those

living their lives autonomously as peasant food producers’. neo-liberal simplifications’ reliance on industrialised agriculture,

privatised resources, & world markets for feeding people. African Green Revolution doubly discredited:

past African implementation failures past pro-rich (not pro-poor) outcomes in Asia.

Alternative vision: complex sets of sovereign trade & investment policies rights based approach to land, food sovereignty, small family

farms, local production systems & markets sustainable ecological & multi-functional agriculture, local

resources & processing in vibrant rural based national economies. participation & representation by rural people, not donor driven

agendas.

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Donors’ response: partial & biased analysis overlooking of the pro-poor benefits of the Asian Green revolution

through raising wages & lowering real food prices? challenges of population growth & falling land holdings / soil

fertility? limited scope for organic soil fertility measures? Growing urban food demands ? younger populations’ urban aspirations & agricultural alienation ? economic benefits of concentrations of economic activities in

large cities.? legitimacy of emerging smallholders organisations claiming to

speak for poor rural people buying food& ignoring poor urban people’s interests?

romantic view of peasant agriculture – ignoring limited incomes & mass movements out of peasant agriculture in developed economies.

alternative vision doubly discredited: past failures with similar approaches past failures in scaling up success

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Second European Forum on Sustainable Rural Development,

Resolutions? validity in many aspects of each side’s critiques of the other’s

historical analysis & future vision?.... – but if both critiques are valid then neither vision is valid….

Four related ways to move forward1. more nuanced analysis of historical successes & failures in

development; 2. recognition of the sustainable development paradox & state

coordination development dilemma development leads to rising wages & labour costs which

inhibit labour intensive repairs & recycling & encourage replacement of human energy by mechanical or electrical energy

market failures & the need for government coordination are greatest in the poorest countries where government capacity to provide such coordination is most limited,

3. a framework that promotes dialogue between & integration of neo-liberal & alternative development paradigms.

4. A radical rethink and ‘new way’11

A framework for dialogue

Neo-liberal & alternative conceptualisations of development disagree about processes but agree focus on:

people’s production & consumption activities & assets, micro economic foundations of neoclassical economics

capabilities & multiple livelihood activities & assets decreasing livelihood vulnerability, increasing livelihood productivity (and incomes), changes in livelihood activities (increasing importance of

non-farm activities).

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Conceptualisation of peoples’ livelihood aspirationsmaintain & protect their current wealth & welfare against threats of stresses & shocks - hanging inadvance their wealth & welfare.

expanding their existing activities - stepping upmoving into new activities – stepping out

Social

Inst

ituti

ons,

rela

tions,

polit

ics

Human

Tech

nolo

gy,

skill

s,

healt

h

Physical

Infr

ast

ruct

ure

, equip

ment,

etc

Natural

Food,

envir

onm

enta

l se

rvic

es

Financial

Convert

ible

ass

ets

/ sa

vin

gs

cash

Capitals / Assets

Development as Hanging in, Stepping up & Stepping Out

Livelihood strategies &

transformations

Technical & institutiona

l innovation

DifferentiationAccumulationSpecialisation

CommercialisationDiversification……….

Structural transformations

Economic, social, demographic, institutional,

political, ……Spatial, sectoral,

distributional

Global

Household

Municipality

Community

Provincial

National

Regional

Individual

Stepping up

Stepping out

Hanging in

Promoting development dialogue? Valid model of development (successes & failures)?

Scope & breadth, theoretical, logical, empirical consistency Builds on areas of agreement between the different paradigms?

micro- foundations; decreasing livelihood vulnerability & increasing livelihood productivity; changing livelihood activities.

different types & roles of capital; accumulation, differentiation, diversity, specialisation, commercialisation & trade; trade-offs between security & growth; multi-scale processes & linkages; structural change; critical interplay with technical & institutional innovation & political economy.

disagreements in emphasis on different processes, outcomes & interactions, & normative values

‘bottom up’, from poor people’s aspirations, strategies, successes & failures - for themselves & their children; context of wider processes of change (often over-ride local decisions & planning)

Clear, accessible & opens up space for discussion?14

Promoting development dialogue? (2) Simple (!) not simplistic; flexible, transferable across scales of analysis,

disciplines, dimensions & sectors; accommodates diversity; inclusive, encouraging engagement from different perspectives.

Strong experiential foundation Terminology describes processes, outcomes, and/or aspirations but more

concrete & less value laden than ‘growth’ or ‘development’. Diversity of origins (in microeconomics, sustainable livelihoods, new

institutional economics, political economy, economic geography) Practical uses in analysis & communication promote dialogue

Development of indicators & methods for assessing contributions of small livestock keeping to poor peoples’ livelihoods

Methodological development in assessing poverty impacts of agricultural research & other interventions on poverty

Conceptualisation of development policies & priorities for LFA Social protection policies & interventions Making markets work for the poor Climate change; sequencing development investments; health,

education & other service policy analysis & design; organisational strategies; input subsidy, food security, trade etc policies

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Market Access

Agricultural Productivity Potential

poor

good

low highPoor, thin markets,

high risk

Wealthy, thick markets, low risk,

Low % farm income

High % farm income

X AB

C

D

E

F

A: StaplesB: Trad. cash cropsC: Trad. hortic.D: Modern hortic.E: Trad. L/stockF: Modern L/stockX: L.F.A.

stepping up

stepping out

rural-urban

rural-rural

hanging in?

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Agriculture Policy

Extensive, low productivity agriculture. Roads / Irrigation

Systems / Research /

Extension / (Land Reform)

Phase 1. Establishing the basics

Profitable intensive technology.

inhibited by lack of input, finance & output markets

Phase 2. Kick starting

markets

Reliable finance, input

& output markets Effective farmer

input demand & surplus production.

Phase 3. Withdrawal

(non-agric ?)

Increased finance & input demand &

produce supply. Non-agric. linkages.

Effective private

markets

AGRICULTURE & LIVELIHOODS

Hanging in

Stepping up

Stepping out

Social Protection Policy

Non market instruments

Sectoral market

instruments

Micro market

instruments

SP independent of agriculture?

SP from agriculture?

SP for agriculture?

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Livelihood strategies & asset/ market/ activity functions

Livelihood strategy

Asset/ market / activity functions

Consumption Production / income: Seasonal buffering

‘Maintenance’ or ‘Hanging in’

Insurance Accumulation ‘Stepping up’ Production / income

‘Stepping out’ Accumulation

Changing aspirations, strategies & opportunitiesImportance of markets & of wider development

processes

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Market & alternative exchange roles in livelihoods –

changing aspirations, strategies & opportunitiesLivelihood

strategy Asset/ market / activity functions

Relevant assets/ markets & asset/market based activities

Possible alternatives

Consumption Food & other purchases (including household services)

Subsistence production, domestic labour; social relations

Production / income:

Wage employment; sales from petty trading, services, farming or NR based activities; input purchases.

Subsistence; transfers/ remittances

Seasonal buffering

Financial savings/ lending, borrowing; asset sales; labour sales

Asset stores; social relations

‘Maintenance’ or ‘Hanging in’

Insurance Insurance; borrowing; asset sales; labour sales

Asset stores; social relations

Accumulation Asset sales & purchases Skills, livestock, tree or household growth; social relations; power

‘Stepping up’

Production / income

Wage employment; sales from petty trading, services, farming or NR based activities; input purchases.

Transfers/ remittances

Stepping out Accumulation Asset sales & purchases Social relations

Promoting development dialogue? (2) Simple (!) not simplistic; flexible, transferable across scales of analysis,

disciplines, dimensions & sectors; accommodates diversity; inclusive, encouraging engagement from different perspectives.

Strong experiential foundation Terminology describes processes, outcomes, and/or aspirations but more

concrete & less value laden than ‘growth’ or ‘development’. Diversity of origins (in microeconomics, sustainable livelihoods, new

institutional economics, political economy, economic geography) Practical uses in analysis & communication promote dialogue

Development of indicators & methods for assessing contributions of small livestock keeping to poor peoples’ livelihoods

Methodological development in assessing poverty impacts of agricultural research & other interventions on poverty

Conceptualisation of development policies & priorities for LFA Social protection policies & interventions Making markets work for the poor Climate change; sequencing development investments; health,

education & other service policy analysis & design; organisational strategies; input subsidy, food security, trade etc policies

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Using the framework for the Berlin problem? Start with hanging in, stepping up & stepping out strategies

Validity as historical & current aspirations in rural societies? Empirical evidence of achievement (and lack of achievement)? Processes, drivers & impediments of different changes? Impacts on different types of people - rural, urban & transitioning?

Multi-level structural transformations, technical & institutional innovations, & changes in capitals or assets in farm & non-farm activities.

Changing consumer & producer interests, Sustainability of different processes in terms of their impacts on

different kinds of capital needed at different scales of aggregation. Questions about ‘livelihood’ strategies & trajectories at different

scales of analysis (& associated changes in capitals, processes of innovation & structural transformation)

Examine WDR ‘three worlds’, agric. industrialisation & intensification, local versus global markets, diversification & specialisation, trajectories of rural & urban change & relations, climate change

Different paradigms’ strengths, insights & weaknesses Cannot overcome entrenched narrow self interest (expose them?) or

fundamentally different value systems - help identify common interests?

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ConclusionsDevelopment as hanging in, stepping up & stepping out - can it

integrate contested aspirations, processes & policy? Simple but sophisticated framework Can provide space for dialogue and re-examination of

apparently opposing perspectives. Does not directly address Kanbur’s subtext: behind the ‘debate’

are vested interests seeking to use neo-liberal arguments to control the policy agenda to protect national interests

Can help expose them, undermine more obviously untenable arguments, strengthen more genuine seekers of development?

Dorward, A (2009) 'Integrating contested aspirations, processes and policy: development as hanging in, stepping up and stepping out.' Development Policy Review 27 (2): 131-146 (in Press, March 2009)

http://www.soas.ac.uk/staff/staff37115.phpDorward, A. R. (2007). Livelihood strategies, policies and sustainable

poverty reduction in less favored areas: a dynamic perspective in R. Rueben, A. Kuyvenhoven and J. Pender (ed) Sustainable Poverty Reduction in Less-Favored Areas. Wallingford, CABI.

Kanbur, R. (2001). "Economic policy, distribution and poverty: the nature of disagreements." World Development 29(6): 1083-1094.

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Integrating contested aspirations, processes & policy: development as hanging in, stepping up & stepping

outAndrew Dorward

http://www.soas.ac.uk/staff/staff37115.php

School of Oriental & African Studies

Reading, 30 January 2009

Centre for Development, Environment & Policy.CeDEP