Ineffectiveness of development for developing countries

In 1945 the United Nations (UN) in order to prevent another world war. Another objective of the UN was to eradicate poverty in developing countries. This goal was and remains one of the main reasons for the existence of the UN. The most important “tool” to accomplish was the creation of the International Bank for Reconstruction and Development (IBRD) or better known as the World Bank. In October 2005 the UN celebrated its 60th anniversary. What has succeeded in eradicating poverty in developing countries? The sad truth is that 80% of the world, only 20% of funds in the control world, this means that 20% of the population 80% of resources controls the world. This is not a kind of ‘secret’ truth, but something that most people know. Why is this a sad reality?

The first problem is related to the policy itself. This process is unfortunately not done in a manner contrary simple and rational. He is full of ambiguities and conflicts. The second problem I would like to discuss in this article can be found in theories of development. I’ve never come across a universal theory of development. This is not surprising, given the strong influence of the theories about the development of policies for the development is not fully realized. Therefore, the development policy are incomplete because there is no universal strategy available to deal with the problem of development.

Development policy
In general, the literature concerned with the political process is dominated by a particular vision. This view is linked to the “rational actor paradigm. This model of rational policy, encompassing a decision based solely on rational and objective. The role of objective information obtained forms the basis of policy in this model. This standard model is assumed universally applicable in ‘system’ all sectors, policy or problem.

The following aspects represent this model:

1. Clarification of values or objectives distinct and usually a prerequisite for the empirical analysis of alternative policies;
2. Policy formulation is therefore approached through means-end analysis. First the ends are isolated, then the means to achieve them are sought;
3. The test of good policy is that it can be shown that the most appropriate “tool” to achieve certain goals;
4. The analysis is comprehensive and all important and relevant factors into account;
5. Theory is often heavily relied upon.

The separation of policy, planning and preparation or execution or performance is an important feature of the comprehensive rational approach. Implementation is seen as a logical outcome of well-prepared and formulated a plan. But in the implementation of state aid policy, many projects failed due to negligence in the implementation of the objectives formulated. This implementation issue is not limited to development but is also found in many other areas.

A second feature of rational-comprehensive model is the consensus of the problem. It is believed that the development of a country is not problematic at all. All stakeholders (donors and developing countries) have reached an agreement and the strategy chosen is the result of a consensus among all parties involved. None of these are true in reality. The development is the result of negotiations between the actors involved. Actors with commercial interests, the participants from developing countries and last but not least, the actors constantly talks with political interests. It is not difficult to imagine that the actor with a strong bargaining position of power to overwhelm the actors actor possesses. Not the scientific objective planner or other specialist who has the last word. In most cases it is the most powerful actor (s) wins.

A final aspect of this model, the role of objective knowledge as an important pillar in the decision. It is assumed that knowledge is the key to success. The more knowledge available about the problem, the easier it is to solve the problem in this case, the “development problem”. This knowledge is not a magic box. Rather, it is a strictly scientific research. Thus, research is the source of knowledge and now plays a crucial role in political processes. The influence of the actors are neglected because they reached a consensus. In fact, scientific research plays a very marginal and small businesses in the political process. Lawmakers just use the scientific discoveries, when it is in accordance with their own ideas. Policy makers are devising policies on the foundations of good decisions and their own experience rather than scientific discoveries. So they tend to really objective findings to support their policy, which was formulated long before the survey.

Theories of development

The reader should be warned because I can not give a complete description of the existing theories of development, few theories are discussed. In the fifties, modernization theory dominated the foreign aid was designed to “underdeveloped countries. The development is seen as a progressive linear movement of a society” traditional “in a state that could be construed as a” modern society “. The example of the emergence of nations in the northern hemisphere is used to define the term “modern.” Moreover, development is seen as a result of technological innovations. The World Bank can now be identified as the largest producer of modernization theory. Growth economic status is the key concept in this theory. If the problem of capital shortage in developing countries continues, poverty will disappear and an autonomous development process will move. economic dualism – the existence of one hand, a modern sector export-oriented economy and a local industry producing raw materials for the national side – is seen as an obstacle. The traditional sector (or the informal sector) should be removed in this view.

Developing countries, in turn, responded by introducing their own theories. In the years 1949-1950, Prebisch (Secretary of the Economic Commission for Latin America) proposed a theory called the vision center and periphery. The economies of Latin American countries are located in the periphery, while the western industrialized countries are located in the center. Given this situation, only stored underdevelopment, Prebisch proposed a rapid industrialization by substitution to introduce changes. The school dependence (guarded by Frank and Dos Santos) goes even further than the school center-periphery. In this school, the importance of shape and intensity of international relations is seen as a strong variable that economic progress in developing countries are suffering.

In the west, new ideas emerged in reaction to the shortcomings of ‘traditional’ beliefs. The so-called unified approach arise (advocated by Myrdal and Gamini Corea – Secretary of UNCTAD and UNRISD). The main argument of this approach is that aid should be targeted at groups with lower incomes and the poor. But developing countries do not accept this view changed, because they view it as an intervention in its internal affairs. Furthermore, developing countries demanded a New International Economic Order. This new economic order should be based on justice, sovereign equality, interdependence, common interest and cooperation among States. Unfortunately, structural changes in the international system for the Third World that has not happened. But the discussion around the new economic order resulting from the project called Rio. Members of the Rio project developed a new development strategy that emphasizes the aspect of self-sufficiency in developing countries. But Western countries have encouraged this self-concept.

Personal reflections

I lived for over 30 years in a developing country (Indonesia) and the country has received billions of dollars in aid and loans. What is the end result? Tens of millions of people still live in poverty. Except for the lucky few, some were able to live their lives through a combination of education and happiness improve. A minority (mostly of Chinese descent) has been able to improve their situation through their skills as merchants. However, corruption is rampant and democracy newborn was not able to solve all these problems. It will take many years before the “sustainable development” can be achieved. Even with the training of more people, the situation will not improve in the short term. Despite the availability of abundant natural resources, the situation continues to be weak. If nothing is done to combat deforestation, all tropical forests in the country were in 2010, which is only four years from now. The situation may worsen because of the inability of the majority of competing with other countries in the fields of industry, commerce and services.

Better future?

Today everyone is talking about globalization as a “cure for all diseases.”
Developing countries are still suffering from poverty, underdevelopment and violations of human rights. How globalization can solve all these problems? The early 21st century is marked by a better world situation, but the overall instability in most states struggling to nuclear weapons, a war “senseless terror, the destruction of the environment, and population doubling within 40 years. Is a great effort of all people in developed and developing countries for all these problems and a better world for our children and grandchildren.

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