The global economic crisis and the impact on children in Sri Lanka

By the 1970s, Sri Lanka had already achieved a high level of mass well-being, literacy and labour force skills, making it possible to mount a massive investment programme in the late 1970s. Measures taken in 1977 to open the economy emphasized foreign investment and expansion of production, export promotion and employment. Because structures and levels of outlays on essential social welfare were maintained and external resource flows increased, Sri Lanka's economic and health indicators over the 1970s show on balance an improvement in living conditions although pockets of disadvantaged households exist.     

Anatomy of financial retardation in a less developed country: The case of Sri Lanka, 1951–1976

An attempt is made in this paper to analyse the experience of Sri Lanka during 1951–1976, particularly in relation to its financial sector development. It is shown that the interventionist regime held the key to the pace and pattern of the economy's development. Whether it was the skimpy growth of the financial system, the faltering progression of GNP, the precarious foreign exchange position, or the persistence of inflationary pressure, they were all traceable to the impact on the financial system of a particular set of policies pursued. The year 1977, however, marked a watershed in Sri Lanka's long quest for economic development. The Government began to unwind the entire paraphernalia of administered controls on consumption, investment and foreign exchange. Most of the price controls were removed, subsidies phased out and public corporations were allowed greater autonomy in their pricing and distribution policies. It is necessary to contrast this situation with what existed prior to 1977 in order to assess its impact on the real economy of Sri Lanka. Only then can the cost of financial retardation be measured.     

Stabilization: The political economy of overkill

This paper considers whether national and international aspects of the IMF's stabilization programmes during the 1970s and early 1980s have resulted in a process of ‘overkill’ — or, in other words, a process of economic retrenchment which went much further than was strictly necessary in terms of what could have been regarded as reasonable objectives. In the international context, the author describes how the attack on inflation has become an end in itself, at the expense of other stated objectives of the IMF, thus creating a distortion of its priorities. The paper discusses errors of diagnosis which have led to this disorientation and explains why deflationary policies should not be regarded as a panacea. The paper then considers the nead for equity and efficiency in the distribution of the political and economic costs of adjustment.The next section of this paper discusses the assumptions underlying the IMF's treatment of Fund members and to what extent ‘even-handedness’ in the application of stabilization measures may result in inequality of burden-sharing among borrowers. Problems related to monetarist theories and the consequent policies are examined, followed by a consideration of the dangers involved in devising ‘straightforward’ performance criteria in the form of precise monetary targets that can readily be monitored by the IMF. This means of evaluating the national adjustment policies' success is seen to be unsatisfactory, viz. the frequency of stand-by arrangement breakdowns and mistakes in forecasting.The paper concludes that the concept of unilateral adjustment is not an acceptable basis for IMF supervision of the international monetary system. In addition, care should be taken to avoid overkill in determining the degree and character of adjustment needed in stabilization programmes. One possible solution to the extra burden imposed on the LDCs might be a liberalization of the compensatory financing facility with the objective of applying the same kind of regime to imports as to exports.     

Integrated rural development programmes: A historical perspective

The pervasive poverty in rural areas has represented a continuing concern of national governments and development assistance agencies. One response to pervasive poverty has been the design of local institutions to enable rural communities to mobilize their own resources to generate growth and improve the quality of life. Programmes organized under the rubric of ‘community development’ were a major focus of development assistance during the 1950s and early 1960s. During the early 1970s concern about the distributional implications of economic growth again emerged as a major theme in development thought and development policy. This concern gave rise to two new development assistance approaches — ‘integrated rural development’ and ‘basic needs’ programmes. In this paper, I attempt to trace the development, accomplishments and limitations of the community development, integrated rural development and basic needs approaches.     

The political economy of controlling transnationals: The pharmaceutical industry in Sri Lanka (1972–1976)

This paper analyses the experience of Sri Lanka in reforming the structure of production, importation and distribution of pharmaceuticals, a sector dominated by transnational companies. It traces the complex interplay of economic, political and ideological factors that affected the process of regulating transnationals and of establishing a State Pharmaceuticals Corporation, stressing the role of the medical profession in resisting reform and of political leadership in initiating and, later, retarding it. Sri Lanka's experience offers valuable lessons for understanding the transnational phenomenon in general, and the difficulties of reforming the pharmaceutical industry in particular: it also illustrates clearly the advantages that developing countries may gain from such reform.     

Basic human needs: The plateau curve

The satisfaction of basic human needs in developing countries follows a nonlinear curve relative to per capita income, asymptotically approaching a limiting level. Within this general relationship, some countries are more ‘efficient’ than others in improving basic needs at lower per capita income levels. Infant mortality rates in 116 countries, from 1950 to 1980, are analyzed to identify factors affecting a country's efficiency in reaching infant mortality targets relative to its Gross Domestic Product per capita. The determinants of efficiency include export structure, internal distribution, late development and access to education. Implications for development policy are discussed.     

Increasing employability in the emerging tourism sector in Mozambique: Results of a qualitative study

Mozambique’s tourism sector could play a key role in the country’s socio-economic development, especially in the region of Cabo Delgado where the demand for tourist services is expected to increase. Nonetheless, several constraints (e.g. the lack of adequate training) are hindering the capacity of local people to take full advantage of this opportunity. Qualitative research has been performed in order to align vocational training programmes with the needs of the emerging tourism sector. Local and foreign key informants were interviewed in order to gain a better understanding of training needs and to gain insights into developing training programmes that can enhance local people’s employability. The main findings highlight the lack of symbolisation of tourism and its correlates from local communities. Therefore, rather than just delivering technical skills, training programmes should also promote a ‘culture of tourism’ and a more favourable attitude towards ‘working in the tourism sector’.     

Effects of the current world recession on the welfare of children: The case of Korea

The remarkable growth of Korea's GNP during 1963–1978 was achieved through export-led industrialization. The accelerating rate of growth in labour-intensive export industries provided job opportunities to the growing labour force. However, during the last years of the 1970s the Korean economy experienced bottlenecks and strong inflationary pressures which eroded its export competitiveness. As a response to these problems, the government implemented stabilization and restructuring programmes which did not affect the expansion of social welfare programmes for the poor and the vulnerable.     

Basic needs,agropolitan development,and planning from below

Current treatment of ‘basic needs’ programmes as mere adjuncts to main-stream growth strategies leads to but another version of the well-known strategy of redistribution with growth. The result is emphasis on short-run improvements in consumption levels of target groups below the ‘poverty line’ while primary allocations and effort are devoted to growth in GNP. Distinct from this main-line approach, a normative theory is proposed in which production and distribution would be encompassed within the context of face-to-face political decision-making in appropriately sized ‘agropolitan’ districts. Decision on economic activities would thus be subordinated to a territorial will in an act of reciprocal entitlement between individual and community.     

Options for cement production in Papua New Guinea: A study in choice of technology

This paper examines the technical options for local production of cement to satisfy Papua New Guinea's needs. Both rotary and vertical kiln methods and different plant sizes are compared on economic grounds and also assessed against national objectives. Because of Papua New Guinea's small and scattered demand for cement and high internal transport costs, the smaller vertical kiln units are more economic while small-scale manufacture is also more in line with national objectives.     

Participation's place in rural development: Seeking clarity through specificity

Over the past few years, development specialists have expressed increasing concern over the lack of progress in altering the plight of the rural poor. Towards this end they are shifting from the capital-investment growth models of the 1960s to the more people-centred basic- needs approaches that are increasingly dominating development thinking in the 1970s. In the process, they are turning to a number of related development strategies, one of the most important and least understood of which is ‘popular participation’. Increasing numbers of studies and activities are being undertaken to bolster government and donor capacity to promote participation in development programmes. Yet, with all these activities the disturbing fact is that there is little agreement on what participation is or on its basic dimensions. This article seeks to provide some order to the emergence of participatory concerns in the development literature, and to offer a carefully elaborated framework that clarifies the notion of ‘rural-development participation’ and make it applicable to total-development projects.     

The objectives of development

As the author was one of the early writers stressing the well-being of the mass of the people and treating growth as a means rather than an end, the Editor asked him to describe the circumstances and add his present thoughts on the subject. The early part of the paper describes the evolution of the author's thinking on the objectives of development up to the publication of Accelerating Development (1966), and the Colombian Plan of the Four Strategies (1971).The latter part seeks to define objectives, pointing out that concern with poverty does not necessarily imply a direct attack on poverty.Further overriding objectives include the lessening of the ‘deprivation effect’ by reducing the gap in international consumption levels, and better control over the environment in its many aspects, primarily to ensure survival and ultimately to promote well-being.     

Mexico from bust to boom: A political evaluation of the 1976–1979 stabilization programme

This paper evaluates Mexico's recent experience of economic stabilization policies (under the the 3-yr Extended Fund Facility arranged with the IMF in September 1976) from a comparative politics standpoint. By comparison with various South American experiences of inflation and stabilization that were discussed in the same Wilson Centre workshop, Mexico's short-term performance must be rated quite favourably. This was not a case in which Fund orthodoxy prevailed at every point, nor was the Fund analysis accepted without qualification by Mexico's policy-markers. At the end of the period, economic disequilibria, as measured by IMF criteria, remained considerably larger than the 3-yr plan had envisaged, but ‘confidence’ had been restored and rapid growth was in prospect. The interpretation offered in the paper is that Mexico's cyclical pattern of presidential politics largely determined the effective contents of the stabilization package, and that the resilience of the Mexican system of political management goes far to explain why the economic outcome was more favourable than in the South American cases. An accident of geological endowment (the nation's huge oil resources) certainly accentuated the process of recovery from ‘bust’ to ‘boom’, but this factor did not operate in isolation, and should not be considered an adequate explanation on its own. The impact of a geological endowment upon economic conditions depends upon political mediation. However, although this paper seeks to highlight the contribution of Mexican political management to the recent short-term economic improvement, it concludes with some qualifications. The final section considers some constraints on the scope and efficacy of Mexican ‘reformism’, particularly in relation to longer-term and more structural problems.     

Basic needs and human rights

This paper discusses the relationship between basic needs and human rights and addresses such questions as: is the satisfaction of basic needs a human right? or, are human rights themselves basic needs? are there basic needs other than material needs which embrace human rights? do the respect for rights and the satisfaction of needs go together or car there be conflict? The paper attempts to distinguish between a variety of ‘rights’ — positive, negative; social, economic, political, civil — and to clarify the best means by which to achieve maximum fulfilment of these ‘rights’.     

Constraints on assistance to refugees: Some observations from the Sudan

The plight of refugees in Africa is compounded by the fact that they often seek asylum in poor host countries which are as politically and economically fragile as their countries of origin. Attempts to help these refugees become self-sufficient demonstrate the underlying contradictions of all aid programmes.This paper discusses these contradictions in the light of the author's experience in the Sudan. It shows how the concept of ‘humanitarian assistance’ and the relief programmes designed by aid agencies, as well as the laws and regulations designed by governments, have contributed to the increasing powerlessness of the refugee recipients. Refugees themselves have been ignored throughout the decision-making process in the three phases of relief, rehabilitation and development. Aid agencies and host governments often have conflicting goals which result in exacerbation of the refugees' situation.The author suggests that assistance has been directed towards the symptoms of the refugee problem but not the root causes. As a result, there is an urgent need to reassess the assumptions underlying refugee assistance and to propose new strategies and options.     

American agricultural assistance and the new international economic order

Combining ethical, political and economic elements, this paper studies the relationship between American food aid and agricultural assistance and the evolution of demands made by developing countries for a new international economic order. The ethical viewpoint is based on John Rawls' theory of ‘distributive justice’ and argues that the ‘Right to Food Resolution’ does not meet the developing countries' calls for redistribution. After analysing the political and economic differences in outlook of the developed and developing countries, it is concluded that the conduct of American agricultural assistance policies towards the developing countries has failed to appreciate the needs expressed in their demands for a new order.     

The fourth mobilization: New phase of the Tachai movement

By the early 1970s the ‘Learn from Tachai’ campaign in China was seen there as having had a marked effect in increasing agricultural production. In 1975 the movement was made the subject of a national conference and then launched afresh on a broader and more intense scale, with the unit for emulation becoming the country rather than the village. It is now commensurate with the great mass movements of the 1950s which transformed China's rural society. The paper describes the new movement, illustrating its impact from the writer's field experience. (The paper may be seen as a sequel to the writer's ‘Learning from Tachai’, World Development. Vol. 3, Nos. 7 & 8 (July – August 1975)).     

Employment creation through the provision of social development services: exploring the options

The high unemployment rate in South Africa is a central concern of policy makers. Because there are only a few substantial labour intensive industries, led by the private sector, it has become essential to explore other less mainstream avenues for employment creation. The role of public works programmes has historically focused on the infrastructure sector, but the Expanded Public Works Programme includes the social sector. The government has at its disposal a strong policy instrument – the provision of a range of services to meet basic needs – and so could, in the medium term, create a large number of jobs through social development services, the demand for which vastly exceeds their provision. Basic social development needs programmes target a large number of unskilled unemployed and promise the possibility of affordable employment creation. Such programmes include Early Childhood Development (ECD) and Home and Community Based Care (HCBC) as identified by the Social Sector Plan. This article explores these options.     

Guaranteeing employment to the rural poor: Social functions and class interests in the employment guarantee scheme in Western India

Numerous observers rightly term the landless rural population the ‘most intractable development problem’ in poor societies. Given the extraordinary political and administrative obstacles to redistrubution of rural assets in India (the widely-recognized failture land reforms), attention and finances have recently been focused on public rural employment programmes to alleviate rural distribution. Within India, the State of Maharashtra, with a size and population of a large European nation, has instituted a striking departure from traditional rural works programmes: a guarantee of employment to rural adults on demand. The Employment Guarantee Scheme in one state has since become a significant policy model, and the experience in that state provides something like a laboratory for its analysis. Based on analysis of previous studies and original field work in rural Maharashtra, the article argues that the scheme is something of a rare bird: a programme which seems to be in the objective and subjective interests of the rural poor, as well as consistent with the interests of the rural landed elite, despite their early political objections. The fiscal structure of the scheme is a direct contradiction of Lipton's (1977) model of ‘urban bias’ in Third World development strategies; the Employment Guarantee Scheme is rather more a manifestation of ‘kulak power’. Though promulgated as an alternative to policies entailing redistribution of rural assets, and clearly superior to doing nothing about rural distribution, the scheme is inferior to genuine redistribution in terms of altering the rural political economy. The functions, if not the motivations, of the scheme are profoundly conservative in a structural sense, politically and economically; the philosophical underpinnings, and perhaps, potentially, the consequences for mobilization of the rural poor, are quite the opposite.     

Marxism and development sociology: Interpreting the impasse

There is an increasing sense that the ‘new’ Marxist-influenced development sociology which emerged in the early 1970s has reached some kind of impasse. This paper suggests that there are good reasons for this sense of unease; that the weaknesses and lacunae in current sociological development research cannot be attributed entirely to the influence of any particular radical perspective (e.g. dependency theory); and that understanding the impasse requires standing back from the theoretical controversies of the past decade and a half to examine some underlying commonalities of approach. A key problem, it is argued, is Marxism's metatheoretical commitment to demonstrating the ‘necessity’ of economic and social patterns, as distinct from explaining them and exploring how they may be changed.