CHAPTER III

REVIEW OF LITERATURE

3.1 Overview 3.2 Theoretical Background of the Study

3.2.1 Pre-classical Beginnings 3.2.2 Classical Economics 3.2.3 The Neo-classical Interlude 3.2.4 Dynamic Analysis 3.2.5 Keynesian Growth Theory 3.2.6 Development Economics

3.2.6.1 The Linear Stages Theories 3.2.6.1.1 Rostow’s Stages of Growth 3.2.6.1.2 The Harrod-Domar Growth Model

3.2.6.2 Theories and Patterns of Structural Change 3.2.6.2.1 W. Arthur Lewis’ Two-Sector Surplus Model 3.2.6.2.2 Hollis Chenery’s Patterns of Development Approach

3.2.6.3 The International Dependence Revolution 3.2.6.3.1 The Neo-colonial Dependence Model 3.2.6.3.2 The False-Paradigm Model 3.2.6.3.3 The Dualistic-Development Thesis

3.2.6.4 The Neo-classical Counter Revolution: Market Fundamentalism. 3.2.6.4.1 Free Market Analysis 3.2.6.4.2 Public-Choice Theory or New Political Economy

Approach 3.2.6.4.3 The Market- Friendly Approach

3.2.7 Recent Developments 3.3 A Journey through UNDP Reports

3.3.1 Concept and Measurement of Human Development (HDR, 1990) 3.3.2 Financing Human Development (HDR, 1991) 3.3.3 Global Dimensions of Human Development (HDR, 1992), 3.3.4 People’s Participation (HDR, 1993) 3.3.5 New Dimensions of Human Security (HDR, 1994), 3.3.6 Gender and Human Development (HDR, 1995), 3.3.7 Economic Growth and Human Development (HDR, 1996), 3.3.8 Human Development to Eradicate Poverty (HDR, 1997), 3.3.9 Consumption for Human Development (Changing Today’s Consumption

Patterns - for Tomorrow’s Human Development- HDR, 1998), 3.3.10 Globalization with a Human Face (HDR, 1999), 3.3.11 Human Rights and Human Development (HDR, 2000), 3.3.12 Making New Technologies Work for Human Development (HDR,

2001), 3.3.13 Deepening Democracy in a Fragmented World (HDR, 2002), 3.3.14 Millennium Development Goals: A Compact among Nations to End

Human Poverty (HDR, 2003), 3.3.15 Cultural Liberty in Today’s Diverse World (HDR, 2004), 3.3.16 International Co-operation at a Crossroads: Aid, Trade and Security in

an Unequal World (HDR, 2005), 3.3.17 Beyond Scarcity: Power, Poverty and the Global Water Crisis (HDR,

2006), 3.3.18 Fighting Climate Change: Human Solidarity in a Divided World (HDR,

2007/2008), 3.3.19 Overcoming Barriers: Human Mobility and Development (HDR, 2009),

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3.3.20 The Real Wealth of Nations: Pathways to Human Development (HDR, 2010),

3.3.21 Sustainability and Equity: A Better Future for All (HDR, 2011). 3.4 Pieterse’ Summary 3.5 Previous Studies

3.5.1 Church, Society, and Labor Resources: An Intra-Denominational Comparison

3.5.2 The Church and Social Change in Latin America. 3.5.3 Evaluation as a Development in Religious Research 3.5.4 Political Cohesion in Churches 3.5.5 Direct Democracy and the Puritan Theory of Membership 3.5.6 The Social Teaching of the Church 3.5.7 Providing Culturally Relevant Mental Health Services: Collaboration

between Psychology and the African American Church. 3.5.8 Right Relation Revisited: Implications of Right Relation in the Practice

of Church and Christian Perceptions of God 3.5.9 Africa's Churches Wake Up to Oil's Problems & Possibilities 3.5.10 Rural Development as a Frame Analytic Challenge for Religious

Communities: The Case of Rural Parishes of the Evangelical Lutheran Church of Finland.

3.5.11 Taking the Sanctuary to the Streets: Religion, Race, and Community Development in Columbus, Ohio

3.5.12 The Black Church as a Social Welfare Institution: Union United Church and the Development of Montreal’s Black Community, 1907-1940

3.5.13 Transformational Development on the Western Pacific Agenda? Aspects of Church, State and the Colonial Legacy in Papua New Guinea

3.5.14 The Role of the Roman Catholic Church in the Service Provision of Education in Slovenia and Hungary

3.5.15 Are Church and State Substitutes? Evidence from the 1996 Welfare Reform

3.5.16 Churches and Social Development: A South African Perspective 3.5.17 Catholic and Non-Catholic NGOs Fighting HIV/AIDS in Sub Saharan

Africa: Issue Framing and Collaboration 3.5.18 Rural Development as a Frame Analytic Challenge for Religious

Communities: The Case of Rural Parishes of the Evangelical Lutheran Church of Finland.

3.5.19 Money, Sex and Religion: The Case of the Church of Scotland 3.5.20 The Role of Protestantism in Democratic Consolidation among

Transitional States 3.5.21 Churches as a Stock of Social Capital for Promoting Social

Development in Western Cape Communities. 3.5.22 Poverty and Morality: Religious and Secular Perspectives 3.5.23 Religion, Community and Development. 3.5.24 Some Other Important Studies.

3.6 Importance of the Study 3.7 Summing up

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3.1 Overview

“It is impossible for a man to step into the same river twice.1” (Heraclitus)

These words indicate the changeful nature of everything. Nothing is static in this

universe. Everything is dynamic. No idea is static, no theory is static.

“Knowledge is cumulative.” Knowledge is part of culture2. The development

theory have also changed lot and travelled through different paradigms. In the

first part of this chapter the researcher tries to identify the major development

theories, which is a discussion about economic theories stemming from the

classical tradition of Adam Smith and David Ricardo, outlined in the late

eighteenth and early nineteenth centuries, continued in nineteenth century Neo-

classical (marginalist) economics, modified by twentieth century. Jan Nederveen

Pieterse3, Michael P. Todaro4 and Richard Peet5 were surveying, questioning and

reviewing the history of development economics and its different aspects. The

researcher followed the convention of dividing mainstream economic theory into

historical periods such as pre-classical, classical, Neo-classical, Keynesian and

development economics.

Since 1990 UNDP has been publishing enough materials in relation with

development discussions through its annual reports. On the basis of these reports

the researcher presents a summary of these reports, in the second part of this

chapter. It will throw light on the recent trends in development discussions.

In the third part of this chapter the researcher concentrates on a sufficient

number of previous studies which directly involved Churches in the development

programs at universal, national state and local levels.

3.2 Theoretical Background of the Study

3.2.1 Pre-classical Beginnings

Knowledge is cumulative. Any new knowledge has close relationship with

its previous ideas. The French post-structuralist philosopher Michel Foucault

(1972)6 called the historical recovery of the ideas as ‘archaeology’. Richard Peet is

of the view that in the case of economic theory, many of the concepts of classical

economics were continuations of earlier preoccupations (Peet & Hartwick, 2005).

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Medieval theorists always combined religion with economy and found God active

in all worldly processes. Medieval (Catholic) Christianity emphasized duty to God

rather than the rights of the individual; this duty entailed moral limitations on the

economic actor. According to the medieval doctrine of ‘just price7’, the medieval

thinkers like Albertus Magnus (c 1200-1280) or Thomas Aquinas (1225-1274),

prices were matters of justice and law had a duty to fix them and punish individuals

who exceeded the just price. (Haney 1949: 95-100)

The belief that communal economic justice reflected God’s will began to

erode with urbanization, monetization, secularization, and the Protestant

Reformation, that is, with the onset of modernity, with its central belief that

humans create their own destiny8. Classical economics derives from the new,

Protestant attitudes toward labor, wealth, and productive life9.

Classical economics has developed in a conflictual relation with

mercantilism. Right from the fifteenth century to the nineteenth century,

mercantilism was regarded as a total system of ideas on politics, institutions, and

economic practices. Mercantilist political policy aimed at increasing national

power, symbolized by the political might of the state. According to mercantilist

ideology, a country was considered prosperous when it had a favorable balance of

trade, specifically an increased inflow of bullion (gold and silver)10. Sir William

Petty thought that government should take responsibility for maintaining

employment and relieving poverty by fiscal and monetary policies and through

public works.

During the seventeenth century, particularly in Britain, it has developed

much more definite ideas about a free market economy11. The political

philosophers of seventeenth and eighteenth century Britain especially Thomas

Hobbes, John Locke and David Hume, have played important roles to the origin

of capitalism from the path of mercantilism, especially important in forming the

philosophical basis of classical economic theory.

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3.2.2 Classical Economics

Classical economics covers a period of thought stretching from Adam

smith’s “The Wealth of Nations” (1776) to John Stuart Mill’s “Principles of

Political Economy” (1848). During this time economics was part of a broader

system of political economy embedded in an even more general moral

philosophy.

Smith’s famous Wealth of Nations, published in 1776, elaborated such

notions of moral philosophy in to a theory of economic behavior. Smith argued

that “all humans shared certain characteristics, whether innate or resulting from

the faculties of reason and speech, which he described as certain prosperity to

“truck, barter and exchange one thing for another” (Smith, 1937 ed.)

Smith’s economics tried to explain why some nations prospered, became

wealthy or, in contemporary parlance, experienced economic growth. He found

the immediate answer in the division of labor. According to Smith, by

specializing the various tasks involved in production, dexterity could be

increased, time saved and labor-saving machinery invented by persons familiar

with minute tasks. The products so made were exchanged through trade. And the

division of labor was limited only by the extent of the market. With

improvements in transport, the market increased in size, labor became more

specialized, money replaced barter, and productivity increased.

3.2.3 The Neo-classical Interlude

In the last third of the nineteenth century economics changed from

political economy, part of a moral philosophy critically involved with social

issues, to a specialized scientific discipline fascinated by calculus, algebra, and

plane geometry, and increasingly removed from social concerns. The central

theme of economics changed from growth of the national wealth to the role of the

margin in the efficient allocation of resources.

Neo-classical economic theory asserted that, under conditions of perfect

competition, price-making markets yielded a long-run set of prices that balanced,

or equilibrated, the supplies and demands for each commodity in production and

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consumption. Given certain conditions, such as the preferences of consumers,

productive techniques, and the mobility of productive factors, market forces of

supply and demand allocated resources efficiently, in the sense of minimizing

costs, and maximized consumer utilities, in the long run. And finally, all the

participants in production received income that commensurate with their efforts.

Capitalism was therefore the best of all possible economic worlds. It was the

context in which Thorstein Veblen and others challenged the Neo-classical

economic thought12.

3.2.4 Dynamic Analysis

There were other traditions in economics that oppose the Neo-classical

consensus. In Germany the historical school of economics had long been critical

of the abstract nature of both Ricardian and marginalist economics. The historical

school was influenced by the German philosophical traditions of idealism and

romanticism. The historical school’s main themes were the unity of social and

economic life, the plurality of human motives, and the relativity of history-all

regarded from an organicist or holistic viewpoint. The German historical school

was empirical and it tended to be more critical of capitalism than Neo-classical

economics.

Joseph Schumpeter combined methods and theories (German historical

school, Marxian, marginalist, and equilibrium) from all approaches within an

overall perspective derived from advanced natural science. “…Schumpeter

thought further that creativity could not be predicted from previous facts:

creativity shaped the course of future events, yet itself was an enigma. Even so,

economics had to deal with psychology and human motivation at a different level

than everyday utilitarianism (Peet & Hartwick, 2005).

Innovative investment was financed not by savings but by credit, with

interest paid from the profits generated by innovation. Rather than causing

deviations in a kind of dynamic equilibrium, Schumpeter saw the development

initiated by innovation as uneven, discontinuous, and taking the form of business

cycles. These cycles could be short term, medium term and long term (Kuznets,

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1953), which Schumpeter conceptualized as epochs with different values and

civilization characteristics. For all his praise of the entrepreneur, Schumpeter also

thought that an economy satiated with capital and rationalized by entrepreneurial

minds would eventually become socialist (Schumpeter, 1961).

3.2.5 Keynesian Growth Theory

Keynes’s General Theory of Employment, Interest and Money (1936)

argued that the creation of demand by supply could occur at any level of

employment or income, so that full employment was but one of many economic

possibilities. The particular level of employment, Keynes thought, was

determined by aggregate demand for goods and services in the entire economy.

Assuming that the government had a neutral effect, two groups influenced

aggregate demand: consumers buying consumption goods and investors buying

production equipment. Consumers increased their spending as their incomes rose,

although by a smaller production: however, this was not the key variable in

explaining the overall level of employment, for consumption depended on

income, which depended on something else (Keynes, 1936).

In the Keynesian system, real investment was the crucial variable:

changes in real investment fed into other areas of an economy. Investment

resulted from decisions made by entrepreneurs under conditions of risk. Here the

key variable was “expectation “or, more generally, the degree of investor

confidence. Keynes explained the interest rate not in terms of savers postponing

consumption, but in terms of speculation about future stock prices, which in turn

determined interest rates, as savings moved from one fund to another.

Keynes doubted that merely changing interest rates would be sufficient to

significantly alter business confidence and thus investment. He viewed that the

manipulation of interest rates and the government spending. When capital was

scarce, saving was beneficial to an economy. When unemployment rose,

however, thrift impeded economic growth. Keynes thus assaulted a basic tenet of

Puritan (and Smithian) economics, the identification of thrift with virtue

(Lekachman, 1966). Keynes also proved theoretically what depression had long

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shown in practice, that free markets did not spontaneously maximize human well-

being.

These ideas became the basis of economic growth theory and helped the

emergence of development economics as an independent discipline.

3.2.6 Development Economics

The development economics that emerged in the 1950s was different from

Neo-classical and Keynesian economics because of their specific focus on

developing countries and their greater practicality in terms of a more immediate

policy orientation.

According to Michael P Todaro, the post-Second World War literature on

economic development has been dominated by four major schools of thought: (1)

the linear-stages-0f-growth model, (2) theories and patterns of structural change,

(3) the international- dependence revolution, and (4) the Neo-classical, free-

market Counter-revolution.

Theorists of the 1950s and early 1960s viewed the process of

development as a series of economic growth through which all countries must

pass. It was primarily an economic theory of development in which the right

quantity and mixture of saving, investment, and foreign aid were all that was

necessary to enable developing nations to proceed along an economic growth

path that historically had been followed by the more developed countries.

Development thus became synonymous with rapid, aggregate economic growth.

3.2.6.1 The Linear Stages Theories

There are two important theories under the linear stages theories. They are

Rostow’s Stages of economic growth and the Harrod-Domar growth model.

3.2.6.1.1 Rostow’s Stages of Growth

An early theory of development economics, the linear-stages-of-growth

model was first formulated in the 1950s by W.W. Rostow in ‘The Stages of

Growth: A Non-Communist Manifesto’. This theory modifies Marx's stages

theory of development and focuses on the accelerated accumulation of capital,

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through the utilization of both domestic and international savings as a means of

spurring investment, as the primary means of promoting economic growth and,

thus, development. The linear-stages-of-growth model posits that there are a

series of five consecutive stages of development which all countries must go

through during the process of development. These stages are “the traditional

society, the pre-conditions for take-off, the take-off, the drive to maturity, and the

age of high mass-consumption (Rostow, 1960)

The advanced countries had all passed the stage of “take-off into self-

sustaining growth,” and the underdeveloped countries that were still in either the

traditional society or the “preconditions” stage had only to follow a certain set of

rules of development to take off in their turn into self-sustaining economic

growth.

3.2.6.1.2 The Harrod-Domar Growth Model

In the Harrod-Domar model, increasing economic growth basically

involved increasing the savings rate, in some cases through the state budget.

Development policies based on the Harrod-Domar model were used in left-

leaning countries in the 1950s-for example, in India’s First Five Year Plan.

Simple versions of the Harrod-Domar Model provide a mathematical illustration

of the argument that improved capital investment leads to greater economic

growth.

Michael Todaro presents it as follows:

Every economy must save a certain proportion of its national income, if

only to replace worn-out or impaired capital goods. However, in order to

grow, new investments representing net additions to the capital stock are

necessary. If we assume that there is some direct economic relationship

between the size of the total capital stock and total GNP. It follows that

any net additions to the capital stock in the form of new investment will

bring about corresponding increases in the flow of national output, GNP

(Todaro, 1993).

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In 1970s, this linear stage theory was replaced by theories and patterns of

structural change and the international dependence revolution.

3.2.6.2 Theories and Patterns of Structural Change

Structural-change theory deals with policies focused on changing the

economic structures of developing countries from being composed primarily of

subsistence agricultural practices to being a “more modern, more urbanized, and

more industrially diverse manufacturing and service economy.” There are two

major forms of structural-change theory;

3.2.6.2.1 W. Arthur Lewis’ Two-Sector Surplus Model

The two-sector model of economic growth developed by William Arthur

Lewis is a classical economic model, as opposed to the Neo-classical one. Lewis

believed that Neo-classical economics does not accurately describe the condition

of economically less-developed countries (LDCs) because it assumes that labor is

in short supply. Lewis's model posited two sectors in the economy of an LDC: the

modern and the traditional.

An increase in the amount of capital in the modern sector would increase

the marginal product of labor in the modern sector and thereby increase total

output there-whereas it would not affect the traditional sector at all. Thus, he

argued, capital accumulation in the modern sector is the method for growing a

less developed economy without doing any real damage to the traditional sector.

According to this model, capital accumulation in the modern sector will lead to

rising incomes as well as rising income inequality-signs of economic growth and

development. At some point in time, there will be enough capital accumulation

that the marginal product of labor in the modern sector will equal the marginal

product of labor in the traditional sector at the traditional-sector wage rate. From

that point on, the two sectors become integrated, marginal product of labor begins

to determine the wage rate-as in Neo-classical economic theory-and the LDC

becomes a more economically developed country. (http://voices.yahoo.com/

william-arthur-lewiss-two-sector-economic-growth-model-329724.html?cat=37,

retrieved on 02.02.2013)

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It views agrarian societies as consisting of large amounts of surplus labor

which can be utilized to spur the development of an urbanized industrial sector.

3.2.6.2.2 Hollis Chenery’s Patterns of Development Approach,

Hollis Chenery’s patterns of development approach, which is the

empirical analysis of the “sequential process through which the economic,

industrial and institutional structure of an underdeveloped economy is

transformed over time to permit new industries to replace traditional agriculture

as the engine of economic growth.” Chenery's findings of the patterns of

development are presented as an illustration of an empirical approach, and

include the shift in production from agriculture to industry and services, the

accumulation of physical and human capital, the shift to nonfood consumption

and investment, urbanization, and the growth of trade as a share of GNP13

Structural-change approaches to development economics have faced

criticism for their emphasis on urban development at the expense of rural

development which can lead to a substantial rise in inequality between internal

regions of a country. The two-sector surplus model, which was developed in the

1950s, has been further criticized for its underlying assumption that

predominantly agrarian societies suffer from a surplus of labor. Actual empirical

studies have shown that such labor surpluses are only seasonal and drawing such

labor to urban areas can result in a collapse of the agricultural sector. The

patterns of development approach have been criticized for lacking a theoretical

framework.

3.2.6.3 The International Dependence Revolution

International dependence theories gained prominence in the 1970s as a

reaction to the failure of earlier theories in creating widespread successes in

international development. Unlike the earlier theories, international dependence

theories have their origins in the developing countries and they view the obstacles

to development as being primarily external in nature, rather than internal. These

theories view developing countries as being economically and politically

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dependent on more powerful, developed countries that are interested only in

maintaining their dominant position.

Dependency can be defined as an explanation of the economic

development of a state in terms of the external influences--political, economic,

and cultural--on national development policies (Sunkel, 1969). Theotonio Dos

Santos emphasizes the historical dimension of the dependency relationships in his

definition:

“Dependency is...an historical condition which shapes a certain structure

of the world economy such that it favors some countries to the detriment

of others and limits the development possibilities of the subordinate

economics...a situation in which the economy of a certain group of

countries is conditioned by the development and expansion of another

economy, to which their own is subjected”14. (Dos Santos, 1971).

Todaro writes,

“Essentially, international-dependence models view developing countries

as beset by institutional, political, and economic rigidities, both domestic

and international, and caught up in a dependence and dominance

relationship with rich countries” (Todaro, 1993).

There are three different, major formulations of international dependence theory;

neocolonial dependence model, the false-paradigm model and the dualistic-

dependence model.

3.2.6.3.1The Neo-colonial Dependence Model

The neocolonial dependence model attributes the existence and

continuance of underdevelopment primarily to the historical evolution of a highly

unequal international capitalist system of rich and poor country relationships.

Whether because rich nations are intentionally exploitative or unintentionally

neglectful, the co-existence of rich and poor nations in an international system

dominated by such unequal power relationships between the center and the

periphery renders attempts by poor nations to be self-reliant and independent

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difficult and sometimes even impossible15. Directly and indirectly, they serve

and rewarded by international special-interest power groups including

multinational corporations, national bilateral- aid agencies, and multilateral

assistance organizations like the World Bank or the International Monetary Fund,

which are tied by allegiance or funding to the wealthy capitalist countries.

According to the neocolonial dependence model underdevelopment is an

externally induced phenomenon, in contrast to the linear –stages and structural-

change theories’ stress on internal constraints such as insufficient savings and

investment or lack of education and skills.

It is clearly described in the words of Theotonio Dos Santos:

“Underdevelopment, far from constituting a state of backwardness prior

to capitalism, is rather a consequence and a particular form of capitalist

development known as dependent capitalism…Dependence is a

conditioning situation in which the economies of one group of countries

are conditioned by the development and expansion of others. A

relationship of interdependence between two or more economies or

between such economies and the world trading system becomes a

dependent relationship when some countries can expand through self-

impulsion while others, being in a dependent position, can only expand as

a reflection of the expansion of the dominant countries, which may have

positive or negative effects on their immediate development. In either

case, the basic situation of dependence causes these countries to be both

backward and exploited. Dominant countries are endowed with

technological, capital and socio-political predominance over dependent

countries-the form of this predominance varying according to the

particular historical moment-and can therefore exploit them, and extract

part of the locally produced surplus. Dependence, then, is based upon an

international division of labor which allows industrial development to

take place in some countries while restricting it in others, whose growth is

conditioned by and subjected to the power centers of the world16”

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3.2.6.3.2 The False-Paradigm Model

A second and a less radical international-dependence approach to

development, which we might call the false-paradigm model, attributes

underdevelopment to faulty and inappropriate advice provided by well-meaning

but often uninformed, biased, and ethnocentric international "expert" advisers

from developed-country assistance agencies and multinational donor

organizations. These experts offer sophisticated concepts, elegant theoretical

structures, and complex econometric models of development those often lead to

inappropriate or incorrect policies. Because of institutional factors such as the

central and remarkably resilient role of traditional social structures (tribe, caste,

class, etc.), the highly unequal ownership of land and other property rights, the

disproportionate control by local elites over domestic and international financial

assets, and the very unequal access to credit, these policies, based as they often

are on mainstream, Lewis-type surplus labor or Chenery-type structural-change

models, in many cases merely serve the vested interests of existing power groups,

both domestic and international. As a result, proponents argue that desirable

institutional and structural reforms, many of which we have discussed, are

neglected or given only cursory attention17.

3.2.6.3.3 The Dualistic-Development Thesis

According to this thesis the world is divided into two as rich nations and

poor nations. Even within the developing countries, there are pockets of wealth

within broad areas of poverty. It is implicit in structural-change theories and

explicit in international-dependence theories, the notion of a world of dual

societies. Dualism is a concept widely discussed in development economics. It

represents the existence and persistence of increasing divergences between the

rich and poor nations and the rich and the poor people at various levels. One of

the elements of dualism is that there is a co-existence of wealthy, highly educated

elites with masses of illiterate poor people within the same country or city.

According to this theory, there is a co-existence of powerful and wealthy

industrialized nations with weak, impoverished peasant societies in the

international economy. This co-existence is chronic and not merely transitional. It

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is not due to a temporary phenomenon, in which within the capacity of time, the

discrepancy between superior and inferior elements would be eliminated.

In 1980s and early 1990s a fourth approach called the Neo-classical

Counter-revolution has come into prevalence.

3.2.6.4 The Neo-classical Counter-revolution: Market Fundamentalism

Neo-classical theories represent a radical shift away from International

Dependence Theories. Neo-classical theories argue that governments should not

intervene in the economy; in other words, these theories are claiming that an

unobstructed free market is the best means of inducing rapid and successful

development. Competitive free markets unrestrained by excessive government

regulation are capable of ensuring the allocation of resources with the greatest

possible efficiency and in raising and stabilizing the economic growth.

The central argument of the Neo-classical Counter-revolution is that

underdevelopment results from poor resource allocation due to incorrect pricing

policies and too much state intervention by overly active developing-nation

governments18. Contrary to the claims of the dependence theorists, the Neo-

classical Counter-revolution argue that the Third World is under-developed not

because of the predatory activities of the of the First World and the international

agencies that it controls but rather because of the heavy hand of the state and the

corruption, inefficiency, and lack of economic incentives that permeate the

economies of developing nations.

It is important to note that there are several different approaches within

the realm of Neo-classical theory. These different takes on Neo-classical theory

are the free market approach, public-choice theory, and the market-friendly

approach. Of the three, both the free-market approach and public-choice theory

contend that the market should be totally free, meaning that any intervention by

the government is necessarily bad. The market-friendly approach, unlike the

other two, is a more recent development and is often associated with the World

Bank. This approach still advocates free markets but recognizes that there are

many imperfections in the markets of many developing nations and thus argues

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that some government intervention is an effective means of fixing such

imperfections

3.2.6.4.1 Free-market Analysis

Free-Market analysis argues that markets alone are efficient-product

markets provide the best signals for investments in new activities; labor markets

respond to these new industries in appropriate ways; producers know best what to

produce and how to produce it efficiently; and product and factor prices reflect

accurate scarcity values of goods and resources now and in the future.

Competition is effective, if not perfect, technology is freely available and nearly

costless to absorb; information is also perfect and nearly costless to obtain. Under

these circumstances, any government intervention in the economy is counter-

productive. Free-market development economists have tended to assume that

developing-world markets are efficient and that whatever imperfections exist are

of little consequences.

3.2.6.4.2 Public-Choice Theory or New Political Economy Approach

Public-choice theory, also known as ‘new political economy approach’,

goes even further to argue that government can do nothing right. This is because

those politicians, bureaucrats, citizens and states act solely from a self-interested

perspective, using their powers and the authority of government for their own

selfish needs. Citizens use political influence to obtain special benefits from

government policies. Politicians use government resources to consolidate and

maintain positions of power and authority. Bureaucrats use their positions to

extract bribes from rent-seeking citizens and to operate protected business on the

side. And finally state uses its power to confiscate private property from

individuals. The net result is not only a misallocation of resources but also a

general reduction in individual freedoms. The conclusion, therefore, is that

minimal government is the best government.

3.2.6.4.3 The Market- Friendly Approach

This is the most recent variant on the Neo-classical counter revolution. It

is associated principally with the writings of the World Bank and its economists,

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many of whom were more in the free-market and public-choice camps during the

1980s. This approach recognizes that there are many imperfections in LDC

product and factor markets and those governments do have a key role to play in

facilitating the operation of markets through “nonselective’ interventions. The

Market-friendly approach also differs from the free-market and public-choice

schools of thought by accepting the notion that market failures are more

widespread in developing countries in areas 19 such investment coordination and

environmental outcomes.

3.2.7 Recent Developments

The most prominent contemporary development economist is perhaps the

Nobel laureate Amartya Sen. Recent theories revolve around questions about

what variables or inputs correlate or affect economic growth the most:

elementary, secondary, or higher education, government policy stability, low

tariffs, fair court systems, available infrastructure, availability of medical care,

prenatal care and clean water, ease of entry and exit into trade, and equality of

income distribution, and how to advise governments about macroeconomic

policies, which include all policies that affect the economy. In short development

is a multifaceted concept than any single ended approach. It is very much evident

in UNDP Reports. Along with its first chairman Mahabub Ul Haq, Amartya Sen

too has played an important role in the formation and presentation of UNDP

reports, and the 20th years report. These reports itself create many indices to

measure development. It is a continuing and ongoing process and it presents its

reports annually. The summary of these reports since 1990 is presented below.

3.3 A Journey through UNDP Reports

3.3.1 Concept and Measurement of Human Development (HDR, 1990)

Human Development Report 1990 introduced a new human development

index, (HDI), which combines life expectancy, educational attainment and

income indicators to give a composite measure of human development. The

Report's central conclusions and policy messages are clear, and some of their

salient features are summarized as given below:

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1. The developing countries have made significant progress towards human

development in the last three decades

2. North-South gaps in basic human development have narrowed

considerably in the last three decades, even while income gaps have

widened.

3. Averages of progress in human development conceal large disparities

within developing countries - between urban and rural areas, between men

and women, between rich and poor.

4. Fairly respectable levels of human development are possible even at fairly

modest levels of income

5. The link between economic growth and human progress is not automatic

6. Social subsidies are absolutely necessary for poorer income groups.

7. Developing countries are not too poor to pay for human development and

take care of economic growth

8. The human costs of adjustment are often a matter of choice, not of

compulsion and human progress is not automatic

9. A favourable external environment is vital to support human development

strategies in the 1990s

10. Some developing countries, especially in Africa, need external assistance

a lot more than others

11. Technical cooperation must be restructured if it is to help build

developing human capabilities and national capacities in the countries

12. A participatory approach including the involvement of NGOs is crucial to

any strategy for successful human development

13. A significant reduction in population growth rates is absolutely essential

for visible improvements in human development

14. The very rapid population growth in the developing world is becoming

concentrated in cities.

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15. Sustainable development strategies should meet the needs of the present

generation without compromising the ability of future generations to meet

their needs.

3.3.2 Financing Human Development (HDR, 1991)

The main conclusion of Human Development Report 1991 runs like this-

the lack of political commitment and not the absence of financial resources is the

real cause of human neglect. The report emphasized the need to restructure

national budgets and international aid in favor of human development. The main

theme has been discussed under the titles like, economic growth for human

development, optimizing human expenditure, restructuring national budgets,

reallocating social expenditures, cost savings and efficiency, international aid,

political strategy, national compacts for human development and a global

compact for human development.

Human Development Report 1991 proposed a new human freedom index

(HFI). This report lays the foundations for a fresh set of priorities. It explains

how it chose, how it assessed-and why we can afford to pay for them. The aim

will be to refine further the concept and the methods of measurement- and to

distil more practical experience from many countries. Another aim will be to

conduct more research and analysis on participatory development and to examine

the global dimensions of human development by looking at familiar international

issue from a human perspective. The final message of the Report was that, if we

could mobilize the political base for action-nationally and globally- the future of

human development is secure.

3.3.3 Global Dimensions of Human Development (HDR, 1992)

Human Development Report 1992 looked at the workings of the global

markets-at how they meet, or fail to meet, the needs of the world's poorest people.

Markets are the means. Human development is the end. The issue is not only how

much economic growth, but what kind of growth. A new methodology was

suggested for the construction of a Political Freedom Index (PFI) to assess the

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status of human rights according to the generally accepted concept and values.

The important conclusion of the report was,

1. Economic growth does not automatically improve people's lives, either

within nations or internationally20.

2. Rich and poor countries compete in the global market-place as unequal

partners. If developing countries are to compete on a more equal footing,

they will require massive investments in human capital and technological

development.

3. Global markets do not operate freely. This, together with the unequal

partnership, costs the developing countries $500 billion a year-l0 times

what they receive in foreign assistance

4. The world community needs policies in place to provide a social safety

net for poor nations and poor people

5. Industrial and developing countries have the opportunity to design a new

global compact-and to ensure sustainable human development for all in a

peaceful world.

Human Development Report 1992 analyzed the functions of global

markets from this human perspective. The basic message of the Report was that

the world has a unique opportunity to use global markets for the benefit of all.

Removing many of the restrictions on world trade will help global markets to

deliver more fully the benefits they have always promised. And by making a

substantial investment in human capacity building, economic management and

technology, developing countries can engage in world trade as equal partners and

earn equal benefits.

3.3.4 People’s Participation (HDR, 1993)

The 1993 HDR explored the following themes in some detail. It was the

overall vision of all societies built around people's genuine needs. This called for

at least five new pillars of a people centered world order:

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1. New concepts of human security must stress the security of people, not

only of nations

2. New models of sustainable human development are needed-to invest in

human potential and to create an enabling environment for the full use of

human capabilities

3. New partnerships are needed between the state and the market to combine

market efficiency with social compassion

4. New patterns of national and global governance are needed to

accommodate the rise of people's aspirations and the steady decline of the

nation-state.

5. New forms of international cooperation must be evolved-to focus directly

on the needs of the people rather than on the preferences of nation-states.

The implications of placing people at the centre of political and economic

change were thus profound. They challenged traditional concepts of security, old

models of development, ideological debates on the role of the market and

outmoded forms of international cooperation. They called for nothing less than a

revolution in thinking. The Report touched on only a few aspects of a profound

human revolution that made people's participation the central objective in all

parts of life. Every institution-and every policy action-should be judged by one

critical test: how does it meet the genuine aspirations of the people? 21

3.3.5 New Dimensions of Human Security (HDR, 1994)

The 1994 Report introduced a new concept of human security, which

equates security with people rather than territories, with development rather than

arms. It examines both the national and the global concerns of human security22.

The Report seeks to deal with these concerns through a new paradigm of

sustainable human development, capturing the potential peace dividend, a new

form of development co-operation and a restructured system of global

institutions.

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It proposed that the World Summit for Social Development approve a

world social charter, endorse a sustainable human development paradigm, create

a global human security fund by capturing the future peace dividend, approve a

20:20 compact for human priority concerns, recommend global taxes for resource

mobilization and establish an Economic Security Council.

Increasing human security entails: Investing in human development, not

in arms; Engaging policy makers to address the emerging peace dividend; Giving

the United Nations a clear mandate to promote and sustain development;

Enlarging the concept of development cooperation so that it includes all flows,

not just aid; Agreeing that 20 percent of national budgets and 20 percent of

foreign aid be used for human development; and Establish an Economic Security

Council.

A Proposed action agenda for the social summit was,

1. Approve a world social charter as a new social contract among all nations

and all people.

2. Endorse a new development paradigm of sustainable human

development- with economic growth centered on people and sustainable

from one generation to the next.

3. Give the United Nations the mandate to draw up a comprehensive

blueprint for ensuring global human security and protecting people from

threats in their daily lives-poverty, unemployment, drugs, terrorism,

environmental degradation and social disintegration.

4. Agree on a targeted reduction of 3% a year in global military spending for

the decade 1995-2005, and direct that a certain proportion of this potential

savings-say, 20% by industrial countries and 10% by developing

countries-be credited to a global human security fund.

5. Approve a human development compact for the next ten years (1995-

2005) whereby all nations pledge to ensure the basic human development

levels for all their people, and endorse the 20:20 proposal requiring

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developing nations and aid donors to earmark a minimum of 20% of their

budgets for human priority concerns.

6. Recommend to ECOSOC that it examine the feasibility of various forms

of global taxation-especially taxes on global pollution and on speculative

movements of capital-to raise adequate financing for setting up a new

global fund for human security.

7. Urge the international community to strengthen the role of the United

Nations in the socio-economic field and to vest more decision-making

powers in the UN by establishing an Economic Security Council to

manage the new dimensions of global human security.

3.3.6 Gender and Human Development (HDR, 1995)

The message of Human Development Report 1995 was simple but far

reaching,“Human Development, if not engendered, is endangered”. The Report

analyzed the progress made in reducing gender disparities in the past few

decades, highlighting the wide and persistent gap between women's expanding

capabilities and limited opportunities. It introduces two new measures for ranking

countries on a global scale by their performance in gender equality, Gender

Empowerment Measure (GEM) and Gender-related Development Index (GDI),

and analyses the under-valuation and non-recognition of women's work. It

offered a five-point strategy for equalizing gender opportunities in the decade

ahead.

1. National and international efforts must mobilize to win legal equality of

the sexes within a defined period;

2. Many economic and institutional arrangements need revamping to extend

more choices to women and men in the work place;

3. A critical 30% threshold should be regarded as a minimum share of

decision-making positions held by women at the national level;

4. Key programs should embrace universal female education, improved

reproductive health and more credit for women; and

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5. National and international efforts should target programs that enable

people, particularly women, to gain greater access to economic and

political opportunities.

3.3.7 Economic Growth and Human Development (HDR, 1996)

The 1996 Report opened with a fundamental statement: "Human

development is the end - economic growth a means." The Report argued that

economic growth, if not properly managed, can be jobless, voiceless, ruthless,

rootless and futureless, and thus detrimental to human development. The quality

of growth is therefore as important as its quantity; for poverty reduction, human

development and sustainability”.

The Report concluded that the links between economic growth and human

development must be deliberately forged and regularly fortified by skillful and

intelligent policy management. It identified employment as critical for translating

the benefits of economic growth into the lives of people.

To support economic growth as a means to enrich people's lives, the

Report demonstrates why:

1. Over the past 15 years the world has seen spectacular economic advance

for some countries - and unprecedented decline for others

2. Widening disparities in economic performance are creating two worlds -

ever more polarized;

3. Everywhere, the structure and quality of growth demand more attention -

to contribute to human development, poverty reduction and long-term

sustainability;

4. Progress in human development has mostly continued - but too unevenly;

5. New approaches are needed to expand and improve employment

opportunities, so that people can participate in growth - and benefit from

it; and

6. Economic growth is not sustainable without human development.

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3.3.8 Human Development to Eradicate Poverty (HDR, 1997)

Eradicating poverty everywhere is more than a moral imperative - it is a

practical possibility. That was the most important message of the Human

Development Report 1997. The world has the resources and the know-how to

create a poverty-free world in less than a generation.

The Report focused not just on poverty of incomes but on poverty from a

human development perspective - poverty as a denial of choices and

opportunities for living a tolerable life. The strategies proposed in the Report go

beyond income redistribution - encompassing action in the critical areas of

gender equality, pro-poor growth, globalization and the democratic governance of

development.

Eradicating poverty entails:

Removing barriers that deny choices and opportunities for living a

tolerable life;

1. Safeguarding people from the new global pressures that create or threaten

further increases in poverty;

2. Building assets for the poor;

3. Empowering men and women to ensure their participation in decisions

that affect their lives;

4. Investing in human development - health and education; and

5. Affirm the eradication of absolute poverty in the first decades of the 21st

century are feasible, affordable and a moral imperative.

3.3.9 Consumption for Human Development (HDR, 1998)

The 1998 Report investigated the 20th century's growth in consumption,

exceptional in its range and diversity. The benefits of this consumption have

spread far and wide. Yet the Report state that the benefits of this consumption

have been badly distributed, leaving a backlog of shortfalls and gaping

inequalities.

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Furthermore, ever-expanding consumption puts strains on the

environment - emissions and wastes that pollute the earth and destroy

ecosystems, and growing depletion and degradation of renewable resources that

undermines livelihoods. The world's dominant consumers are overwhelmingly

concentrated among the well-off - but the environmental damage from the world's

consumption falls most severely on the poor.

The Reports demonstrates that:

1. Rising pressures for conspicuous consumption can turn destructive,

reinforcing exclusion, poverty and inequality;

2. Globalization is integrating consumer markets around the world and

opening opportunities. But it is also creating new inequalities and new

challenges for protecting consumer rights;

3. There is a need for the development and application of technologies and

methods that are environmentally sustainable for both poor and affluent

consumers;

4. There is a need to strengthen public action for consumer education and

information and environmental protection and to strengthen international

mechanisms to manage consumption's global impacts; and

5. There is a need to think globally, and act locally, to build on the initiatives

of people and foster synergies in the actions of civil society, the private

sector and government.

3.3.10 Globalization with a Human Face (HDR, 1999)

Global markets, global technology, global ideas and global solidarity can

enrich the lives of people everywhere. The challenge is to ensure that the benefits

are shared equitably and that this increasing interdependence works for people—

not just for profits.

The Report argued that globalization is not new, but that the present era of

globalization, driven by competitive global markets, is outpacing the governance

of markets and the repercussions on people. Characterized by “shrinking space,

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shrinking time and disappearing borders”, globalization has swung open the door

to opportunities.

Breakthroughs in communications technologies and biotechnology, if

directed for the needs of people, can bring advances for all of humankind. But

markets can go too far and squeeze the non-market activities so vital for human

development. Fiscal squeezes are constraining the provision of social services. A

time squeeze is reducing the supply and quality of caring labor. And an incentive

squeeze is harming the environment. Globalization is also increasing human

insecurity as the spread of global crime, disease and financial instability outpaces

actions to tackle them.

As argued in the Report, globalization requires leadership because:

1. People everywhere are becoming connected - affected by events in far

corners of the world;

2. The 1990s have shown increasing concentration of income, resources and

wealth among people, corporations and countries;

3. Poor people and poor countries risk being pushed to the margin in this

proprietary regime controlling the world’s knowledge;

4. With stronger governance, the benefits of competitive markets can be

preserved with clear rules and boundaries, and stronger action can be

taken to meet the needs of human development;

5. Narrowing the gaps between rich and poor and the extremes between

countries should become explicit global goals; and

6. An essential aspect of global governance is responsibility to people — to

equity, to justice, to enlarging the choices of all.

3.3.11 Human Rights and Human Development (HDR, 2000)

Human rights and human development share a common vision and a

common purpose-to secure, for every human being, freedom, well-being and

dignity. Human Development Report 2000 looked at human rights as an intrinsic

part of development-and at development as a means to realizing human rights. It

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shows how human rights bring principles of accountability and social justice to

the process of human development.

The research and critical positioning of this Report shows that:

1. Human freedom is the common purpose and common motivation of

human rights and human development;

2. The 20th century’s advances in human rights and human development

were unprecedented—but there is a long unfinished agenda;

3. The 21st century opens with new threats to human freedoms; and Bold

new approaches are needed to achieve universal realization of human

rights in the 21st century—adapted to the opportunities and realities of the

era of globalization, to its new global actors and to its new global rules.

3.3.12 Making New Technologies Work for Human Development (HDR, 2001)

The 2001 Report was about how people can create and use technology to

improve their lives. It was also about forging new public policies to lead the

revolutions in information and communications technology and biotechnology in

the direction of human development.

This Report looks specifically at how new technologies will affect

developing countries and poor people. Many people fear that these technologies

may be of little use to the developing world—or that they might actually widen

the already savage inequalities between north and south, rich and poor. Without

innovative public policy, these technologies could become a source of exclusion,

not a tool of progress. The needs of poor people could remain neglected, new

global risks left unmanaged. But managed well, the rewards could be greater than

the risks.

The technology divide does not have to follow the income divide.

Throughout history, technology has been a powerful tool for human development

and poverty reduction.

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The 2001 Report demonstrates that:

1. People all over the world have high hopes that new technologies will lead

to healthier lives, greater social freedoms, increased knowledge and more

productive livelihoods;

2. The 20th century’s unprecedented gains in advancing human development

and eradicating poverty came largely from technological breakthroughs;

3. In the network age, every country needs the capacity to understand and

adapt global technologies for local needs; and

4. Policy, not charity, will determine whether new technologies become a

tool for human development everywhere.

3.3.13 Deepening Democracy in a Fragmented World (HDR, 2002)

This Report is about politics and human development. It is about how

political power and institutions-formal and informal, national and international-

shape human progress. And it is about what it will take for countries to establish

democratic governance systems that advance the human development of all

people-in a world where so many are left behind.

Politics matter for human development because people everywhere want

to be free to determine their destinies, express their views and participate in the

decisions that shape their lives. These capabilities are just as important for human

development-for expanding people’s choices-as being able to read or enjoy good

health.

The Report argues that:

1. For politics and political institutions to promote human development and

safeguard the freedom and dignity of all people, democracy must widen

and deepen;

2. Just as human development requires much more than raising incomes,

governance for human development requires much more than having

effective public institutions;

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3. To be plural and independent, the media must be free not only from state

control but also from corporate and political pressures;

4. Increased pluralism in global politics has been aided by new forms of

collaboration between governments and global civil society groups;

5. International efforts to promote change do not work if national actors feel

excluded.

3.3.14 Millennium Development Goals: A Compact among Nations to End Human Poverty (HDR, 2003)

The new century opened with an unprecedented declaration of solidarity

and determination to free the world of poverty. In 2000 the UN Millennium

Declaration, adopted at the largest-ever gathering of heads of state, committed

countries - rich and poor - to doing all they can to eradicate poverty, promote

human dignity and equality and achieve peace, democracy and environmental

sustainability. World leaders promised to work together to meet concrete targets

for advancing development and reducing poverty by 2015 or earlier.

Emanating from the Millennium Declaration, the Millennium

Development Goals bind countries to do more in the attack on inadequate

incomes, widespread hunger, gender inequality, environmental deterioration and

lack of education, health care and clean water. They also include actions to

reduce debt and increase aid, trade and technology transfers to poor countries.

The 2003 Report explores constraints that are crucial for sustainable

human development:

1. The need for economic reforms to establish macroeconomic stability;

2. The need for strong institutions and governance—to enforce the rule of

law and control corruption;

3. The need for social justice and involving people in decisions that affect

them and their communities and countries; and

4. The structural constraints are that impede economic growth and human

development.

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5. The Millennium Development Compact presented in this Report proposes

a policy approach to achieving the Millennium Development Goals that

starts by addressing these constraints.

3.3.15 Cultural Liberty in Today’s Diverse World (HDR, 2004)

Accommodating people’s growing demands for their inclusion in society,

for respect of their ethnicity, religion, and language, takes more than democracy

and equitable growth. Also needed are multicultural policies that recognize

differences, champion diversity and promote cultural freedoms, so that all people

can choose to speak their language, practice their religion, and participate in

shaping their culture-so that all people can choose to be who they are.

The 2004 Report builds on that analysis, by carefully examining—and

rejecting-claims that cultural differences necessarily lead to social, economic and

political conflict or that inherent cultural rights should supersede political and

economic ones. Instead, it provides a powerful argument for finding ways to

“delight in our differences”, as Archbishop Desmond Tutu has put it. It also

offers some concrete ideas on what it means in practice to build and manage the

politics of identity and culture in a manner consistent with the bedrock principles

of human development.

The Report makes a case for respecting diversity and building more

inclusive societies by adopting policies that explicitly recognize cultural

differences - multicultural policies:

1. Cultural liberty is a vital part of human development because being able

to choose one’s identity is important in leading a full life;

2. Cultural liberty allows people to live the lives they value without being

excluded from other choices important to them such as education, health

or job opportunities;

3. Several emerging models of multicultural democracy provide effective

mechanisms for power sharing between culturally diverse groups;

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4. Power sharing arrangements have broadly proven to be critical in

resolving tensions; and

5. Multicultural policies that recognize differences between groups are

needed to address injustices historically rooted and socially entrenched.

3.3.16 International Co-operation at a Crossroads: Aid, Trade and Security in an Unequal World (HDR, 2005)

This 2005 Human Development Report takes stock of human

development, including progress towards the MDGs. Looking beyond statistics; it

highlights the human costs of missed targets and broken promises. Extreme

inequality between countries and within countries is identified as one of the main

barriers to human development-and as a powerful brake on accelerated progress

towards the MDGs.

International aid, one of the most effective weapons in the war against

poverty, needs to be renovated and reshaped. It should be thought as an

investment as well as a moral imperative. In this respect, three conditions for

effective aid are: Sufficient quantity, Better quality, and Country ownership.

The 2005 Report presents:

1. A comprehensive overview of international development assistance,

looking at both its quality and quantity;

2. A critical review of progress in the “Doha Development Round” of trade

negotiations, highlighting how unfair trade rules reinforce inequality; and

3. Evidence of the human development costs of violent conflict, and a

review of strategies for conflict prevention.

3.3.17 Beyond Scarcity: Power, Poverty and the Global Water Crisis (HDR, 2006)

Throughout history water has confronted humanity with some of its

greatest challenges. Water is a source of life and a natural resource that sustains

our environments and supports livelihoods – but it is also a source of risk and

vulnerability. In the early 21st Century, prospects for human development are

threatened by a deepening global water crisis. Debunking the myth that the crisis

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is the result of scarcity, this report argues poverty, power and inequality are at the

heart of the problem.

In a world of unprecedented wealth, almost 2 million children die each

year for want of a glass of clean water and adequate sanitation. Millions of

women and young girls are forced to spend hours collecting and carrying water,

restricting their opportunities and their choices. And water-borne infectious

diseases are holding back poverty reduction and economic growth in some of the

world’s poorest countries.

Beyond the household, competition for water as a productive resource is

intensifying. Symptoms of that competition include the collapse of water-based

ecological systems, declining river flows and large-scale groundwater depletion.

Conflicts over water are intensifying within countries, with the rural poor losing

out. The potential for tensions between countries is also growing, though there

are large potential human development gains from increased cooperation.

The Human Development Report continues to frame debates on some of

the most pressing challenges facing humanity. Human Development Report

2006:

1. Investigates the underlying causes and consequences of a crisis that leaves

1.2 billion people without access to safe water and 2.6 billion without

access to sanitation

2. Argues for a concerted drive to achieve water and sanitation for all

through national strategies and a global plan of action

3. Examines the social and economic forces that are driving water shortages

and marginalizing the poor in agriculture

4. Looks at the scope for international cooperation to resolve cross-border

tensions in water management

3.3.18 Fighting Climate Change: Human Solidarity in a Divided World (HDR, 2007/8)

Climate change is the defining human development challenge of the 21st

Century. Failure to respond to that challenge will stall and then reverse

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international efforts to reduce poverty. The poorest countries and most vulnerable

citizens will suffer the earliest and most damaging setbacks, even though they

have contributed least to the problem. Looking to the future, no country-however

wealthy or powerful-will be immune to the impact of global warming.

The Human Development Report 2007/8 shows that climate change is not

just a future scenario. Increased exposure to droughts, floods and storms is

already destroying opportunity and reinforcing inequality. Meanwhile, there is

now overwhelming scientific evidence that the world is moving towards the point

at which irreversible ecological catastrophe becomes unavoidable. Business-as-

usual climate change points in a clear direction: unprecedented reversal in human

development in our lifetime, and acute risks for our children and their

grandchildren.

There is a window of opportunity for avoiding the most damaging climate

change impacts, but that window is closing: the world has less than a decade to

change course. Actions taken-or not taken-in the years ahead will have a

profound bearing on the future course of human development. The world lacks

neither the financial resources nor the technological capabilities to act. What is

missing is a sense of urgency, human solidarity and collective interest.

Human Development Report 2007/8 argues, climate change poses

challenges at many levels.

1. In a divided but ecologically interdependent world, it challenges all

people to reflect upon how we manage the environment of the one thing

that we share in common: planet Earth.

2. It challenges us to reflect on social justice and human rights across

countries and generations.

3. It challenges political leaders and people in rich nations to acknowledge

their historic responsibility for the problem, and to initiate deep and

early cuts in greenhouse gas emissions.

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4. It challenges the entire human community to undertake prompt and strong

collective action based on shared values and a shared vision.

3.3.19 Overcoming Barriers: Human Mobility and Development (HDR, 2009)

Migration, both within and beyond borders, has become an increasingly

prominent theme in domestic and international debates, and is the topic of the

2009 Human Development Report (HDR, 2009). The starting point is that the

global distribution of capabilities is extraordinarily unequal, and that this is a

major driver for movement of people. Migration can expand their choices —in

terms of incomes, accessing services and participation, for example— but the

opportunities open to people vary from those who are best endowed to those with

limited skills and assets. These underlying inequalities, which can be

compounded by policy distortions, are a theme of the report.

The report investigates migration in the context of demographic changes

and trends in both growth and inequality. It also presents more detailed and

nuanced individual, family and village experiences, and explores less visible

movements typically pursued by disadvantaged groups such as short term and

seasonal migration.

There is a range of evidence about the positive impacts of migration on

human development, through such avenues as increased household incomes and

improved access to education and health services. There is further evidence that

migration can empower traditionally disadvantaged groups, in particular women.

At the same time, risks to human development are also present where migration

is a reaction to threats and denial of choice, and where regular opportunities for

movement are constrained.

National and local policies play a critical role in enabling better human

development outcomes for both those who choose to move in order to improve

their circumstances, and those forced to relocate due to conflict, environmental

degradation, or other reasons. Host country restrictions can raise both the costs

and the risks of migration. Similarly, negative outcomes can arise at the country

levels where basic civil rights, like voting, schooling and health care are denied to

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those who have moved across provincial lines to work and live. HDR 2009 shows

how a human development approach can be a means to redress some of the

underlying issues that erode the potential benefits of mobility and or force

migration.

3.3.20 The Real Wealth of Nations: Pathways to Human Development (HDR, 2010)

HDR 2010 celebrated the contributions of the human development

approach, which is as relevant as ever to making sense of our changing world and

finding ways to improve people’s well-being. The past 20 years have seen

substantial progress in many aspects of human development. Most people today

are healthier, live longer, are more educated and have more access to goods and

services. Even in countries facing adverse economic conditions, people’s health

and education have greatly improved. And there has been progress not only in

improving health and education and raising income, but also in expanding

people’s power to select leaders, influence public decisions and share knowledge.

Yet not all sides of the story are positive. These years have also seen

increasing inequality-both within and across countries— as well as production

and consumption patterns that have increasingly been revealed as unsustainable.

Progress has varied, and people in some regions—such as Southern Africa and

the former Soviet Union-have experienced periods of regress, especially in

health. New vulnerabilities require innovative public policies to confront risk and

inequalities while harnessing dynamic market forces for the benefit of all.

This Report introduced three indices-the Inequality-adjusted Human

Development Index, the Gender Inequality Index and the Multidimensional

Poverty Index. These state-of-the-art measures incorporate recent advances in

theory and measurement and support the centrality of inequality and poverty in

the human development framework. The Report introduced these experimental

series with the intention of stimulating reasoned public debate beyond the

traditional focus on aggregates.

The 2010 Report continues the tradition of pushing the frontiers of

development thinking. For the first time since 1990, the Report looks back

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rigorously at the past several decades and identifies often surprising trends and

patterns with important lessons for the future. These varied pathways to human

development show that there is no single formula for sustainable progress—and

that impressive long-term gains can and have been achieved even without

consistent economic growth.

Looking beyond 2010, this Report surveys critical aspects of human

development, from political freedoms and empowerment to sustainability and

human security, and outlines a broader agenda for research and policies to

respond to these challenges.

3.3.21Sustainability and Equity: A Better Future for All (HDR, 2011)

The 2011 Human Development Report argues that the urgent global

challenges of sustainability and equity must be addressed together – and

identifies policies on the national and global level that could encourage mutually

reinforcing progress towards these interlinked goals. Bold action is needed on

both fronts, the Report contends, if the recent human development progress for

most of the world’s poor majority is to be sustained, for the benefit of future

generations as well as for those living today. Past Reports have shown that living

standards in most countries have been rising - and converging - for several

decades now. Yet the 2011 Report projects a disturbing reversal of those trends if

environmental deterioration and social inequalities continue to intensify, with the

least developed countries diverging downwards from global patterns of progress

by 2050.

The Report shows further how the world’s most disadvantageous people

suffer the most from environmental degradation, including their immediate

personal environment. They disproportionately lack political power, making it all

the harder for the world community to reach agreement on needed global policy

changes. The Report also outlines great potential for positive synergies in the

quest for greater equality and sustainability, especially at the national level. The

Report further emphasizes the human right to a healthy environment, the

importance of integrating social equity into environmental policies, and the

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critical importance of public participation and official accountability. The 2011

Report concluded with a call for bold new approaches to global development

financing and environmental controls, arguing that these measures are both

essential and feasible.

In the coming years also, we hope, UNDP will publish its annual reports

in relation with different aspects and concepts of development. It will help to

understand the pros and cons of the subject in detail and will create in the people

an awareness to strive for a more just and equitable society.

3.4 Pieterse’ Summary

In this chapter we have journeyed through the history of development

economics from its pre- classical beginnings to present post development

discussions. Pieterse has given the whole discussion in a tabular form which is

self explanatory about the history of development economics and the meaning of

development overtime.

Table 3:1 Meanings of development over time

Period Perspectives Meanings of development

1870> Latecomers Industrialization, Catching up.

1850> Colonial economics Resource management, Trusteeship.

1940> Development economics Economic growth, Industrialization.

1950> Modernization theory Growth, Political and social modernization.

1960> Dependency theory Accumulation, national, autocentric.

1970> Alternative development Human flourishing

1980> Human development Capacitation, enlargement of people’s Choices

1980> Neoliberalism Economic growth- structural reform,

Deregulation, liberalization, privatization.

1990> Post development Authoritarian, engineering, disaster.

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He also presents a map of the main contours of development thinking in

different periods. He places them in the context of the pattern of hegemony in

international relations and the structures of explanation prevalent at the time.

Table 3:2 Development theories and global hegemony

Development Thinking

Historical context Hegemony Explanation

Progress Evolutionism

19th century British empire Colonial anthropology. Social Darwinism

Classical Development

1890-1930s Latecomers colonialism

Classical political economy.

Modernization Post-war boom U S hegemony Growth theory, structural functionalism

Dependency Decolonization Third world Nationalism

Neomarxism

Neoliberalism 1980s> Globlization monetarism

Neo-classical economics, Finance and corporate capital

Human development

1980s> Rise of Asian and Pacific Rim, big emerging markets

Capabilities,

developmental state

Though he has explained the meaning of development only up to 1990s it is

relevant to the present period. As Pieterse opined the researcher would like to

conclude that:

‘There are several ways of making sense of the shift of meanings of

development overtime. One is to view this kind of archaeology of

development discourse as a deconstruction of development, i.e. as part of a

development critique. Another is to treat it as [art of historical context: it is

quite sensible for development of change meaning in relation to changing

circumstances and sensibilities. ‘Development’ then serves as a mirror of

changing economic and social capacities, priorities and choices. A third

option is to recombine these different views as dimensions of development

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i.e., to fit them all together as part of a development mosaic and thus to

reconstruct development as synthesis of components’ (Pieterse, 2001).

This is the theoretical frame work within which the researcher is presenting this

thesis and the underlying principle of the thesis.

3.5 Previous Studies

Previous studies were helpful and conducive to the researcher to understand

the different aspects of the topic theoretically and practically. The researcher has

tried to incorporate into this study some of the earlier researches regarding

development involvement of the Churches at different levels. These studies are

presented in a more or less satisfactory chronological pattern. The review of the

previous studies has enabled the researcher to understand the novelty and

uniqueness of the present topic. It can undoubtedly be said that the present study

clearly differs from all the previous studies conducted on the theme ‘Church and

development’.

3.5.1 Church, Society, and Labor Resources: An Intra-Denominational Comparison

This paper, a comparative analysis of two Latter-day Saint bodies, deals

with the independent role of the external situation on social system structure and

functioning. The Mormons and the Reorganites, closely similar in value

orientations and beliefs but historically involved in widely different situations, have

established contrasting solutions to the strategic missionary manpower problem.

Significant intra-Church consequences flow from these differences. In the Mormon

case the historical situation created the conditions for the full institutionalization of

both the mission role and volunteer labor. In the second case situational

imperatives required the Reorganization to postpone collective goal action and

there-by decreased the organization's need to channel religious loyalties into labor

resources (Vallier, 1962).

3.5.2 The Church and Social Change in Latin America.

This book consists a collection of writings is an outgrowth of Cornell

University's celebration of Latin American Year in 1965-1966. It includes a

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number of papers presented as part of that program and several others written

expressly for this volume. The book is divided into four parts.

Part I includes a brief introduction by the editor and a rather lengthy

analysis by Ivan Vallier of the sociological bases of Church influence, the

strategies of influence used in the past, the changing patterns that are emerging, and

the relation of these patterns to the problems of secular modernization.

Part II is historical in content. Renato Poblete, S.J., summarizes the

principal developments in the history of the Church beginning with colonial times.

Fredrick Pike illustrates the multiple character of Latin American Catholicism in

his study of the divergent results of interplay between political and spiritual forces

in Argentina, Chile, and Peru during the present century. Henry Landsberger

focuses attention on the role of the hierarchy and elite groups in the formulation

and implementation of social doctrine in Chile since the 1880's.

Part III deals with the effects of Vatican Council II on Church doctrine and

social change. Archbishop Marco McGrath of Panama stresses the religious

function of the Church in fostering social initiative and a sense of community in the

approach to basic problems. Abbot Francois Houtart examines the changes that are

taking place in ecclesiastical institutions (parishes, dioceses, religious

congregations, Catholic Action groups) and in the roles and attitudes of workers

within those institutions. Richard Shaull compares two forms of Catholic lay

activism: Christian Democracy in Chile and the New Christian Left in Brazil. He

attributes the diminishing appeal of the former to its attempt to reshape society

through the imposition of a preconceived order. Similarly, he contends that

Marxism is also being repudiated in many areas precisely because it, too, is a

priori. Brazilian radicalism suffers from neither of these handicaps. By rejecting

ecclesiastical affiliation and by assuming a secular, pragmatic posture, it offers an

attractive alternative to Marxism as an instrument of social revolution.

Part IV concentrates on specialized sectors and internal structures. John

Kennedy surveys the legal status of the Church in Latin America and comments on

the meaning of the Vatican accords of 1964 and 1966 with Venezuela and

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Argentina. Cecilio de Lora Soria outlines the aims and activities of the Latin

American Episcopal Council (CELAM) in promoting international integration and

development. In the concluding essay Emanuel de Kadt traces the rise of Catholic

radicalism in Brazil, with major emphasis on the Catholic University Youth

Movement (JUC) and Popular Action (AP). It is worth noting that both of these

groups considered emancipation from Episcopal control a requisite condition of

effective action. This should have meaning for members of the hierarchy in other

countries (Landsberger, 1970).

5.3.3 Evaluation as a Development in Religious Research

The development of religious research, as this has occurred in home

missions departments of major denominations, is traced through a sample of

Church research documents. The early phase (from the 1920s to 1950) was

characterized by an interest in describing the Church as a social institution. An

implicit need of the researcher seemed to be the development of his stature within

the social science community. The development phase (1950s) was one in which

Church research needs were dictated by an institutional development philosophy

within denominations. An action research phase (1960s) was characterized by

increasing questioning of the effectiveness of programs and a need for a rational

basis for allocating resources. Implications of evaluative research for the Church

may include attempts at specific goal and objective setting for programs; a closer

working relationship between program developers, researchers, and clients, and

some efforts at interdisciplinary or interagency research work (Johnson, 1972).

3.5.4 Political Cohesion in Churches

The political cohesiveness of religious groups varies widely. Some

Churches develop an all-most complete identity with a political party or tendency

while others exhibit a high degree of political pluralism. This paper explores some

of the mechanisms that might account for the variability in political solidarity from

one Church to the next. On the basis of data from a survey of Protestant

congregations, we find that cohesiveness around the norm of moral conservatism is

associated with the same distinctive syndrome of traits that Dean Kelley has linked

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to Church growth and vitality. "Strong" Churches, defined by a combination of

theology, social practices, and demographic characteristics, apparently possess the

necessary resources to promote attitudinal conformity on some political issues

(Wald, Owen, & Hill, 1990).

3.5.5 Direct Democracy and the Puritan Theory of Membership

This essay explores the political implications of seventeenth century

American Congregationalism. The essay describes the Puritan theory of Church

membership and relates it to contemporary liberal and democratic notions of

citizenship. While the relationship of American Puritanism with liberalism has

been previously examined, few commentators have discussed the Puritan

connection with direct democracy. Here the author argues that he distinguishes

between the political theories of democracy and liberalism, and discovers that the

Puritans were "proto-democrats" in their advocacy of small, highly autonomous

participatory communities. The Puritan theory of covenanted Church membership

reveals the nature of citizenship in a direct democracy. "Universal membership" is

more characteristic of the large nation than it is of the small democratic community

because the latter places more power and responsibility in the hands of the voters,

and because a democracy is identified with its citizens rather than with its leaders

or agents (Miller, 1991)

3.5.6 The Social Teaching of the Church

John Desrochers’ “The Social Teaching of the Church” presents in a

comprehensive whole most of the social teachings of the Church: the papal

encyclicals from Leo XIII to John Paul II, the main statements of the World

Council of Churches from the Amsterdam Assembly to the post-Nairobi period and

the key reflections of the Vatican Council, the Pontifical Commission Justice and

Peace, the Catholic Episcopal Conferences of Latin America, Asia and India. With

his understanding, but critical approach, the author situates these documents in

their historical setting, lets them speak for themselves, and shows their deep and

manifold evolution. In a thought-provoking conclusion, he offers an overview of

the major insights already acquired, highlights the new developments and

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directions urgently needed, and tackles the burning issue of relevant action. This

book illustrates how the Christian faith can be meaningfully lived in today’s

pluralistic world and challenges all men and women of good will to build a more

just, participatory, fraternal and human world. (Desrochers, 1992)

3.5.7 Providing Culturally Relevant Mental Health Services: Collaboration between Psychology and the African American Church.

John E. Queener, Juanita K. Martin elaborately describes the role of Church

in the promotion of culturally relevant mental health services in their study

“Providing Culturally Relevant Mental Health Services: Collaboration between

Psychology and the African American Church”. Many African American

psychologists are concerned about the delivery of culturally relevant mental health

services to their community. Recognizing the limitations of traditional

psychotherapies and traditional mental health delivery systems, psychologists have

developed African-centered models of therapy that Emphasize spiritual

development. Using African-centered therapies as a conceptual framework, the

African American Counseling Team (AACT) was formed to overcome the

limitations of traditional mental health systems. AACT provides mental health

services to African Americans by integrating clinical assistance into a support

system (the African American Church) that, historically, African Americans have

trusted, embraced, and used for a variety of personal, social, and spiritual needs.

Specifically, AACT provides individual, group, and couples counseling. It offers

life skills workshops and consults with mental health and other organizations to

enhance the delivery of culturally relevant services by these organizations. The first

section presents the connection between African psychology and religion. The next

sections focus on barriers to and strategies for collaboration between psychologists

and the African American Church. The final section describes a model of

collaboration between psychologists and the African American Church. (Queener

& Martin, 2001)

3.5.8 Right Relation Revisited: Implications of Right Relation in the Practice of Church and Christian Perceptions of God

One of the famous feminist theologians Anne Spalding critically evaluates

some practices of Church in her article “Right Relation' Revisited: Implications of

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Right Relation in the practice of Church and Christian Perceptions of God”. The

idea of right relation embodies mutuality and personal autonomy. Disagreement,

anger, chaos, pain and helplessness are openly recognized within the community

rather than suppressed in order to maintain what is held in common. Right relation

has both personal and political benefits, and enables the promotion of love and

justice in Church and society. Sadly, right relation has often been far from the

practice of Church and, as a result, many Christian feminists have preferred to

build right relation outside the Church based on ideas of sisterhood and friendship.

This paper explores the possibilities for personal and political relationships both

within and beyond the Church. Since the practice of Church is inevitably connected

to our understanding of the divine, the paper also explores how the divine is being

art of right relation. (Spalding, 2001)

3.5.9 Africa's Churches Wake Up to Oil's Problems & Possibilities

Ian Gary critically evaluates the role of Catholic Church in Cameroon in

connection with the Chad-Cameroon Pipeline project in the article, “Africa's

Churches Wake Up to Oil's Problems & Possibilities”. Fr. Patrick Lafon, Secretary

General of the Catholic Church of Cameroon, argue that the Church would stick to

preach and minister its flock as a powerful social, political as well as a religious

institution in the country. But the Catholic Church in Cameroon, like sister

Catholic and Christian Churches in many countries across Africa, is not 'minding

its own business' when it comes to sometimes harmful impacts that oil exploitation

and development can have on African citizens. Indeed, it is speaking out in bold

new ways on the problems and possibilities of oil exploitation and the paradox of

pervasive poverty amidst massive mineral wealth. Fr. Lafon says that our advocacy

on the Chad-Cameroon Pipeline Project is part and parcel of preaching the gospel

of Jesus Christ (Gray, 2002).

3.5.10 Rural Development as a Frame Analytic Challenge for Religious Communities: The Case of Rural Parishes of the Evangelical Lutheran Church of Finland.

Lori A Fox opines that the field of career guidance and development is

beginning to integrate individuals’ religion and spiritual beliefs and it seems the

Church as a source of career assistance. “Role of the Church in Career Guidance

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and Development: A Review of the Literature 1960-Early 2000s” review

professional literature, from 1960-early 2000s, is an essay regarding the role of the

Church in the United States in career guidance and development. The focus is on

vocational themes in relation to the Church, Church involvement in career

guidance and development programs, and recommendations for the role of the

Church in career guidance and development. The author came in to a conclusion

that over the past 40 years, the professional literature on this topic has declined.

The Church has made grassroots efforts at providing career guidance, but only

through improved communications of idea and program results will the Church

provide effective career programming on a larger scale. (Fox, 2003)

3.5.11 Taking the Sanctuary to the Streets: Religion, Race, and Community Development in Columbus, Ohio

This study,” Taking the Sanctuary to the Streets: Religion, Race, and

Community Development in Columbus, Ohio”, focuses on how institutional,

organizational, and political contexts construct the involvement of black Churches

in the politics of local community development. It is used a contextual theory of

politics to analyze how black urban Churches get involved in community

development issues and the specific contributions that such involvement makes.

Overall, contextual factors in Columbus presented an environment of exclusion, in

which blacks were locked out of mainstream avenues of participation and

representation. The study shows that despite a general context of exclusion from

Columbus mainstream politics, a group of black Baptist ministers have created a

strong organizational association used to share information, resources, and

expertise necessary to participate collectively in housing, welfare, and community

banking issues. The results of this study demonstrate the continuing relevance of

the black urban Church in helping to ameliorate inner-city problems associated

with community development. (Alex-Assensoh, 2004)23

3.5.12 The Black Church as a Social Welfare Institution: Union United Church and the Development of Montreal’s Black Community, 1907-1940

This article, The Black Church as a Social Welfare Institution: Union

United Church and the Development of Montreal’s Black Community, 1907-

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1940”, examines the role that Union United Church, the oldest Black Church in

Montreal, Quebec, played as a social welfare institution from 1907 to 1940 during

the establishment of the city’s Black community. The Union Church and its

affiliated Church groups played a significant role in the Black community. As a

social welfare institution, it provided the community members with basic

necessities, particularly during a downturn in the economy. Social, recreational,

and educational activities were organized through the Church to promote a sense of

community. Through its ministers, community members battled against the “Color

Line” that excluded members of the community from equitable employment and

educational opportunities. (Este, 2004)

3.5.13 Transformational Development on the Western Pacific Agenda? Aspects of Church, State and the Colonial Legacy in Papua New Guinea

In this article, the writer outlines the problems that face PNG, how various

aspects of Church, state and the former colonial power impact on its present and

future, and what an important role there is for the Church in PNG if only it were

able to disentangle itself from more than a century of paternalism and racism.

The failure of the patron cultures of the Australian political administration

and the mission societies to accept responsibility for the dependency culture they

have created, permeates much present thinking on their part, and has a major

influence on the development policy within both the donor state and the mission

societies.

The resultant new agenda is represented in two major ways. The first,

which is the basis for future aid relations between the Australian administration and

PNG, is the Enhanced Co-operation Package (ECP) described above.

The second is an AusAid initiative, the PNG Church Partnership Program

(PNGCPP). This program reflects the view that aid directed through Churches

produces far more cost effective outcomes than aid directed through beneficiary

governments. (Malone, 2005)

In this article the author emphatically proves that the Church is a stronger

agent of development than government.

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3.5.14 The Role of the Roman Catholic Church in the Service Provision of Education in Slovenia and Hungary

The author presents a comparative analysis of the development of the

countries, Slovenia and Hungary in this study “The Role of the Roman Catholic

Church in the Service Provision of Education in Slovenia and Hungary “. The

analysis shows that there are important differences between the countries in the

education policies as they relate to denominational educational institutions, and

how these institutions are embedded in the education system. This is manifested in

different models of the relations between government and denominational

educational institutions.

The article examines the development of the role of the Roman Catholic

Church as a service provider in education in Slovenia and Hungary during the first

decade of the transition period from 1990 until 2000. In European countries,

different state policies towards denominational educational institutions exist, and

post-socialist states are no exception. Therefore, the approach will describe and

attempt to explain both the similarities and differences between the countries

relating to the following questions: What kind of government policy developed

around this set of institutions? What is the current role of denominational

educational institutions in the education system? How extensive was the

development of denominational educational institutions? (Rakar, 2005)

3.5.15 Are Church and State Substitutes? Evidence from the 1996 Welfare Reform

Churches provide community services similar to those provided by the

governments, but there has been no convincing analysis of the extent to which

Church activity can substitute for government activity. To address this important

issue, this paper uses a new panel data set of Presbyterian Church (USA)

congregations to regress both Church –member donations and a Church’s

community spending on a number of variables, including government welfare

expenditure. A provision of the 1996 welfare law that decreased the availability

and use of welfare services by non-citizens serves as an instrument to identify the

causal effect of government spending on Church activity. The results show that

Church activities substitute. (Hungeman, 2005).

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3.5.16 Churches and Social Development: A South African Perspective

‘Religious institutions do much more than connect people to God – they

connect people to one another24.’

The advantages offered by social development compared with material aid

to deal with the hardships of poverty have been highlighted. The inference is that

the actions taken by Churches concerning social development present positive

signals for changing mindsets towards new ways of helping poor and needy

communities. The article, “Churches and social development: A South African

perspective”, has tried to show the approaches necessary for participants in social

development to become significant players in the transformation process in the

country. This can be achieved by harnessing resources, including the dogma of

caring, inherent in most Faith Based Organizations ( FBOs). Churches and FBOs in

South Africa face the inescapable responsibility and challenge to undertake

substantive and sustainable social development programs25. (Nieman, 2006)

3.5.17 Catholic and Non-Catholic NGOs Fighting HIV/AIDS in Sub-Saharan Africa: Issue Framing and Collaboration

According to Lisa L. Ferrari, in her study “Catholic and Non-Catholic

NGOs Fighting HIV/AIDS in Sub-Saharan Africa: Issue Framing and

Collaboration”, governments in sub-Saharan Africa work to provide in-country

relief for the HIV/AIDS crisis, much health care and infrastructure comes from

local or international non-governmental organizations (NGOs). The literature on

NGOs suggests that collaboration increases their efficacy. Many non-Catholic

NGOs do not work collaboratively with Catholic NGOs on HIV/ AIDS, though the

Catholic Church has rich and varied resources at its disposal for relief work.

Observers often characterize the incompatibility of Catholic and non-Catholic

NGOs as tactical, especially with regard to condom use. However, divergent issue

framing is a critical and more fundamental distinction between the two groups.

Contrasting the Catholic Church’s unique spiritual frame with the scientific frame

of many non-Catholic NGOs highlights the epistemological and teleological

differences between the two. Reconciling these differing approaches, or finding

ways to cooperate despite them, is a key element of promoting broader NGO

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collaboration on HIV/AIDS relief work. This theoretical analysis suggests

directions for future empirical research. (Ferrari, 2006)

3.5.18 Rural Development as a Frame Analytic Challenge for Religious Communities: The Case of Rural Parishes of the Evangelical Lutheran Church of Finland.

This article examines how the congregational employees deal with the

potential tension and view the role of parishes, on one hand, as rural actors, and, on

the other, as religious actors. (Pesonen & Vesala, 2007). In many parts of the

European countryside religious communities are facing serious challenges caused

by changing social structures. This is also the case with the Finnish Evangelical

Lutheran parishes that are in many ways affected by migration from the

countryside to city areas. This development has increased pressures on the Church

and its parishes to take a stand in favor of rural development policies and to

contribute to the attempts to maintain and enhance the capability of rural areas.

This kind of involvement is by no means self-evident because the Church has

traditionally occupied a neutral and guarded position in relation to political

questions.

3.5.19 Money, Sex and Religion: The Case of the Church of Scotland

This empirical study addresses whether the gender of a minister has any

effect on remuneration in the Church of Scotland in 2004. The data set merges

three cross-sectional sources, namely denominational data, Church census

information and local geographic characteristics. We find that male ministers are

more likely to be matched to affluent Churches permitted to pay a voluntary

stipend premium all else equal. Moreover, conditional on eligibility, there is

evidence that male clergy are more likely to receive this bonus. The data are unable

to discriminate between demand and supply side explanations of these findings

(Smith, Sawkins, & Mochrie, 2007).

3.5.20 The Role of Protestantism in Democratic Consolidation among Transitional States

Rollin F. Tusalem, in his study, “the role of Protestantism in democratic

consolidation among transitional states”, argued that, historically, Protestantism has

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also been linked to generating a political culture that promotes individualism,

tolerance, the pluralism of ideas, and civic associationalism. Recent empirical

evidence also shows how Protestant countries are more likely to be democratic

compared to largely Islamic and Catholic states. Drawing from established cultural

theories, the author empirically tests the argument whether or not transitional states

with larger Protestant populations are more likely to strengthen their democracies.

Findings indicate that transitional states that have higher Protestant populations are

more likely to have higher levels of voice and accountability, political stability,

citizenship empowerment, and civil society pluralism. The author contends that

transitional states with higher Protestant populations are more likely to consolidate

their democracies. In other words, Protestantism in transitional states has facilitated

higher levels of mass public support and commitment to democracy both in

principle and in practice. He indicated some previous studies which have

examined the causal link between Protestantism and democratization, primarily in

shaping a nation-state’s cultural ethos and its tendency to affect the outcome of

democratic politics. (Tusalem, 2009)

3.5.21 Churches as a Stock of Social Capital for Promoting Social Development in Western Cape Communities

This article present a perspective on the manner and extent to which

Churches may be considered as an important stock of social capital for promoting

social development outcomes in selected communities in the Western Cape, South

Africa. Taking the recently presented policy outline on social capital formation in

this province as the contextual framework for analysis and reflection, the results of

recently executed demographic and socio-empirical research are utilized in

particular to advance a perspective on Churches. It is argued in conclusion that

Churches and other faith-based organizations in the researched communities have

an important strategic significance for a social capital formation agenda, despite

their apparent lack of progressive social praxis. Their comparative advantage over

other institutions, the considerable levels of trust invested in them and the manner

in which they inspire activities of voluntary outreach, caring and social service are

highlighted as special features of the Churches (Swart, Churches as a Stock of

Social Capital for Promoting Social Development in Western Cape Communities.)

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3.5.22 Poverty and Morality: Religious and Secular Perspectives

This book explores how ‘great moral traditions, secular and religious,

Western and non-Western, wrestle with basic questions about poverty and the

poor’ based on an assumption that ‘addressing poverty across – not just within –

national boundaries requires a better understanding of the variegated intellectual

and religious traditions that have shaped our global civilization’ (p. 14). The

introductory chapter provides a comprehensively referenced introduction to the

‘foundational issues’, including conceptions of self and society, human nature and

the good life; moral obligations to individuals and groups; distinctions between the

deserving and undeserving poor; the links between gender and poverty; whether

poverty is regarded as a moral challenge that must be addressed; the status of

human rights; and the responsibilities of governments. They stress that the

contributions discuss ethical or normative theories and ‘provide a sense of the

contemporary status and the historical development of ethical and moral

approaches to poverty and the poor’ to enable both comparison between and an

appreciation of differences within traditions.

The first chapter, by Sakiko Fukuda-Parr, who was Director of the UNDP’s

program for producing the annual Human Development Report between 1995 and

2004, is empirical: it provides an overview of contemporary trends and issues in

global poverty and unequal development. It is followed by 11 chapters on

particular ethical, moral, religious and philosophical traditions: Buddhism,

Christianity, classical liberalism, Confucianism, feminism, Hinduism, Islam,

Judaism, liberal egalitarianism, Marxism, and natural law. Michael Walzer’s

afterword sets up a series of polar opposites (such as voluntary–involuntary,

deserving– undeserving, alleviation–abolition, private–public, and particular–

universal) as a framework for a brief comparison of those traditions.

This book has an important aim and many of the expositions of the

normative thinking associated with various religious and secular philosophical and

moral traditions will be useful to those concerned with poverty and inequality in

poor countries, especially the chapters on Buddhism, Hinduism and Islam, and

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parts of those on liberal egalitarianism and natural law. (Galston & Hiffenberg,

2010)

3.5.23 Religion, Community and Development

Religion, Community and Development is a newly published book edited

by Gurpreet Mahajan and Surinder S. Jodhka. In the editor’s note it is described

that, “social science research and popular discourse in ‘religion and public life’

have gradually moved away from binaries such as communal-secular, tradition-

modern, or community-individual. It is now widely recognized that religion and

cultural traditions do not simply disappear from public life with economic

development. This book contains 14 articles. The sixth and seventh articles in this

book are in relation with Christianity. Rudolf C. Heredia’s, “Development as

Liberation: An Indian Christian Perspective” takes a quick look at the trajectory of

Christianity in India in order to understand the idea of development as it has

emerged and evolved within the community and the religious tradition. In this

perspective this article analyses and addresses the issue of development and the

Christian community (Heredia, 2010). Rowena Robinson, in the article, “Indian

Christians: Trajectories of Development” attempt to use the data available to

construct a picture of the socio-economic development of Indian Christians. The

author argues that the Christians appear to do better than some other communities,

for instance Muslims or OBC Hindus, in the areas of literacy, education,

employment and the like, though they constitute only about 2.3 per cent of the

Indian population (Robinson R. , 2010).

3.5.24 Some Other Important Studies

Some other important studies are David E. Mutchler’s, “The Church as a

Political Factor in Latin America: With Particular Reference to Colombia and

Chile”. This study explains the role of the Church as a political factor especially

within the Latin American context (Mutchler, 1971).

Flavia Agnes presents the background history, need and present arguments

about divorce laws. She argues that the current public debate prompted the bill

aimed at reforming divorce laws has been silent on important issues. She explains

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the demands put forward by the Church for incorporation of the new bill which

could affect women’s rights. (Agnes, 2000)

Prakash Louis presents the present day issues of Dalit Christians in his article

“Dalit Christians: Betrayed by State and Church”. He explains elaborately the doubly

miserable situation of Dalits faced by the Church and the state (Louis, 2007).

A journey through the articles, writings and books, such as, ‘Religion,

Revolution and Reform: New Forces for Change in Latin America’ (D'Antonio &

Pike, 1964), ‘Christian Understanding and Concern for Development’ (Chandran,

1970), ‘Christian Involvement in Development’ (Fernandez, 1970), ‘Ethos of

Development in India and the role of Religion’ (Dietrich, 1972), ‘Development

and Mission’ (Ukur, 1974), ‘Solidarity with the Poor: The Role of the Church in

the Conflict over Development’ (Linneribrink, 1975), Development: Priorities and

Guidelines’ (Parmar S. L., 1975), Development in the 70s: Seven Proposals’

(Pronk, 1975), ‘Religion and Human Development’ (Diwakar, 1978), ‘The

Christian call for Revolution and Development’ (Vineeth, 1978), ‘The Ruling

Trinity: A Community Study of Church, State and Business in Ireland’ (Eipper,

1986), ‘Liberation, Solidarity, Development’ (Thampy, 1981), ‘Mar Thoma

Development Projects’ (Alexander, 1991), ‘Christian Theology and Development’

(Robinson, 1994), ‘Evangelical Church and the Development of Neo-liberal

Society: A Study of the role of the Church and its NGOs in Gautimala and

Honduras’ (Hoksbergen, 1997), ‘Influence of Local Church Participation on Rural

Community Attachment’ (Liu, Qiaoming, & et.al, 1998), ‘Our Earth, Our Future:

Towards a Sustainable Ecological Development, A Challenge to the Churches”

(Stanley, 1999), ‘Missionary Contributions to the Literary and Social Development

in India 17th and 18th Centuries’ (Kingston, 2003) ‘ Church and Social

Development in a Tribal State of North East India: A Case Study of Mizoram’

(2006 Mphil thesis),‘Contributions of the Syro-Malabar Priests to the Socio-

economic Development of Kerala’ (Kuriedath, 2010), will help any reader to

understand the theological position of the Church towards development and the

involvement of Churches in development activities in its width and depth.

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3:6 Importance of the Present Study

A number of studies have been conducted and published on the theme of

‘Church and development’. These studies have mainly focused on the role of

Church in development activities either in theoretical, philosophical formulation or

in its practical involvement in different realms. But this study is about ‘Church as

an agent of development: A case study of the Mar Thoma Church’. This study has

three parts. In the first part the researcher assess the awareness level of the

members of the Church. The perception of the Church members about the Church’s

involvement in the promotion of development ideas is evaluated in the second part.

The third part of the study, which is the exploratory part, tries to find out the

practice level of the members on development concepts, especially in the three

issues of water preservation, agriculture and waste disposal. It is the self-evaluation

process which is more helpful to identify and correct the unscientific practices on

development issues. The three-fold pattern of this study differs from the earlier

studies and can be regarded as a pioneering work in this area.

3:7 Summing up

This chapter is mainly divided into three sections and each section provides

elaborate literature to understand the subject of the thesis, its theoretical frame,

recent discussions, and the previous studies. The theoretical background analyses

the evolution and growth of modern development economics. The discussion

which extends from the pre-classical beginning to recent developments is a lengthy

journey through classical economics, the Neo-classical interlude, dynamic analysis,

Keynesian growth theory, development economics and its recent developments.

The discussion of the development economics consists of four theories and its

varied forms such as, the linear-stages-of-growth model, theories and patterns of

structural change, the international- dependence revolution, the Neo-classical, free-

market Counter-revolution etc. The second and third sections elaborately discuss

the summary of UNDP Reports since 1990 and the previous studies. This chapter

concludes with mentioning the importance and relevance of the present study.

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Endnote

1 This is the central theme of the Heraclitean philosophy- the reality of change, the

impermanence of being, and the inconsistency of everything but change itself”.

2 According to Malinowski,” culture is cumulative and handy works of man.”(cited,

in Shankar Rao).

3 (Pieterse, 2001)

4 (Todaro, 1993)

5 (Peet & Hartwick, 2005)

6 (Foucault, 1972)

7 Every commodity had a true, absolute value. True value was determined by common

estimation of the cost of production, which usually meant the amount of labor

contained in a product. There was concern also that the price set by the market for a

commodity should be just and equitable, a concern that went back to the Greek

philosopher Aristotle, if not to earlier thinkers.

8 See the philosophical statement of Rene Descartes "Cogito ergo sum" (English: I

think, therefore I am), found in part IV of Discourse on the Method (1637 – written

in French and part I of Principles of Philosophy, 1644 – written in Latin). It is

considered as the foundation of the theories of modernity. (http://en.wikipedia.org/

wiki/Ren% C3%A9_Descartes, Retrieved on 02.01.2013

9 In the late middle Ages in Europe the notion began to emerge of labor as the virtuous

source of wealth , where as Augustinian Christianity defined work as punishment

for Adam’s disobedience of God. The most radical version of this new idea is

associated with the sixteenth century Protestants. According to Martin Luther (1483-

1546), God might grant gifts to humans, but people had to lend a hand by working-

people had to give God a mask behind which he could act.

10 To achieve this favorable balance, trade was controlled by the state. In an early

statement about economic growth the mercantilist Philipp von Hornick said: “Gold

and silver once in the country…are under no circumstances to be taken out…but

must always remain in circulation… Under these conditions, it will be impossible for

a country that has once acquired a considerable supply of cash…ever to sink into

poverty; indeed it is impossible that it should not continually increase in wealth and

property.” (von Hornick, 1961)

11 The idea of free markets was based on a number of principles: potential harmony

between individual self-interest and the public interest without state intervention; the

equilibrating tendencies of the forces of supply and demand in free markets; the

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achievement of higher productivity through specialization and the division of labor;

and, most importantly, the ability of the market to yield natural or even just prices.

12 Neoclassical economic harmony was disturbed by the critical institutional economist

Thorstein Veblen. Veblen differentiated between the rational, technical aspects of

modern, mechanized production and the business and entrepreneurial aspects. …

Rather than class conflict creating the dynamic of capitalist history, Veblen

emphasized conflicts between three cultural tendencies: the machine process,

business enterprise, and warlike or predatory beliefs. Business enterprise, he thought,

would eventually fail and the future system would either involve domination by

engineers or reversion to archaic absolutism under military domination. Veblen

reversed the arguments of neoclassicism.

13 (http://answers.yahoo.com/question/index?qid=20071127153323AAuQ0CC)

14 (http://marriottschool.net/emp/WPW/pdf/class/Class_6-

The_Dependency_Perspective.pdf)

15 We can see the replica within all developing countries, socially and economically

upper class; knowingly or unknowingly perpetuate the international capitalist system

of inequality and conformity by which they are rewarded.

16 Theotonio Dos Santos, ‘The crisis of development theory and the problem of

dependence in Latin America’, see also, Pope John Paul II in his widely quoted 1988

encyclical letter Sollicitude rei socialis, in which he declared: “One must denounce

the existence of economic, financial, and social mechanisms which, although they

are manipulated by people, often function almost automatically, thus accentuating

the situation of wealth for some and poverty for the rest. These mechanisms, which

are maneuvered directly or indirectly by the more developed countries, by their very

functioning, favor the interests of the people manipulating them. But in the end they

suffocate or condition the economies of the less developed countries.”

17 (http://wiki.answers.com/Q/What_is_The_false_paradigm_model)

18 Lord Peter Bauer, Deepak Lal, Ian Little, Harry Johnson, Bela Belassa, Jagdish

Bhagawati, and Anne Krueger, argue that it is this very state intervention in

economic activity that slows the pace of economic growth.

19 (http://maeconomics.webs.com/Economics_of_Planning/models_of_economic _

growth.htm)

20 The richest 20% of the world's people are at least 150 times richer than the poorest

20% (UNDP, 1992).

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21 All nations were committed to meet in1995 at a World Summit on Social

Development. It was a chance to focus on the building blocks for a new people-

centered world order. It was a time to agree on a concrete agenda of national and

global actions. That agenda was the theme of the 1994 Human Development Report

(UNDP, 1993).

22 (Behind the blaring headlines of the World’s many conflicts and emergencies, there

lies a silent crisis- a crisis of underdevelopment, of global poverty, of ever-mounting

population pressures, of thoughtless degradation of environment. This is not a crisis

that will respond to emergency relief or to fitful policy interventions. It requires a

long, quiet process of sustainable human development.)

23 Yvette Alex-Assensoh is an associate professor of political science at Indiana

University in Bloomington. She conducts studies in the areas of political behavior,

racial/ ethnic politics, and urban politics and has received funding support from

several agencies, including the National Science Foundation, Spencer Foundation,

National Academy of Education, and Council for the International Exchange of

Scholars. Her published books include Neighborhoods, Family and Political

Behavior in Urban America (1998), Black and Multiracial Politics in America

(2000), and African Military History and Politics (2001).

24 See, Zuckerman, P. (2002) ‘The Sociology of Religion of W.E.B. du Bois’,

Sociology of Religion 63(2): 239–54.

25 The article initially deals with three issues considered as critical in social

development endeavors. First, the dire needs presented by poverty and inequality

necessitate that a case be made for embracing social development. The second is

empowerment, because it should be seen as an integral part of social development;

and third, organizations should work together by collaborating. The article further

describes initiatives by religious bodies and groupings worldwide, as well as in

South Africa, to establish links and dialogue between different religions and social

development movements. It ends with a brief account of a study showing that

Church membership and spirituality represent strengths to tap into for social and

community workers. Thus, the article aims to show that social development provides

a tool with which Churches, by taking cognizance of important key elements and

strategies can help build bridges to overcome the chasm of poverty and

underdevelopment in the country.