Introduction
People are always on the move to live better lives by seeking efficient alternatives for survival. Development is an essential aspect that determines the future of human life, which is why there are many plans to ensure nations, societies and individuals develop by making proper use of their abilities. This discussion involves a case study to analyze various development theories and the link between development and social and economic well-being of the nation.
Four Major Development Theories
Analyzing the world economic situation, as well as the basic economic stages that an average country undergoes in the course of its development, researchers have offered several models of economic development. Among them, four key stages are worth taking a better look at. To be more exact, these are structuralism, linear-stages-growth model, neo-Marxist, or dependency, theory, and neoclassical revival theory, as Contreras explains.
Structuralism
Emerging in 1940s in Latin America, the given school of economic thought argued that “export-led growth of raw materials was no longer a feasible path to economic development” (Conteras), therefore, opposing the already existing idea that a state economics should be based on exporting goods to other countries. It seems that the given school of thought was a product of its time since the cost price of products was times higher than their market price at the time. It must be admitted that structuralism has done a good job by helping states keep their economic status higher than it could be expected during the WWII.
Linear-stages-growth model
Another idea of economic development, the linear-stages-growth model was offered by European economists in response to the theory of structuralism. Also known as the Marshall Plan, the given model of economic development presupposed “implementation of a program providing for a massive injection of capital coupled with public sector intervention designed to accelerate the pace of economic development” (Conteras). While proving viable for the states that suffered greatly because of the WWII, linear-stages-growth model does not seem to be helpful for a state in a peacetime.
Neo-Marxist/dependency theory
Spawned by the interpretations of the Marxist theories and the attempts to bring Socialist ideas to work, neo-Marxist, or dependency, theory offers a rather broad prospect of economic development. The theory also calls for focusing on the means to spur the growth of GNP and GDP, yet it tends to “bring a new coefficient – politics – into the development equation” (Conteras), as Conteras puts it. On the one hand, one might argue whether it is reasonable to mix political and economic goals. On the other hand, developing economic strategy without knowing the political assets of a state is quite unreasonable. Therefore, the given theory deserves more attention.
Neoclassical revival
Often called “classical” or “neoclassical”, the given model presupposes that “countries develop economically via the market” (Conteras). Therefore, the given system seems to be the most efficient, since it is aimed at developing international trade relationships and encouraging private companies and entrepreneurships development. Moreover, it is important to emphasize that neoclassical revival model encourages the process of globalization, helping companies expand. Since the given model does not tolerate any kind of monopoly within the existing market, it can be concluded that neoclassical revival is the optimum choice for any country to pick as guidelines for its economic growth.
Even though the theories described above belong to different epochs and represent completely different approaches towards economics analysis and enhancement, they are still worth considering when developing a new approach towards a specific economic situation. Once a specific problem is considered from every single viewpoint imaginable, one can surely come up with the ideas on how to solve it.
Development Focus
Development is a multi-faceted aspect of human life that should be approached from different angles. The Millennial Development Goals and Dreze and Sen suggest that people are in the center of all development and should be the focal point if nations want to develop. Individuals form communities that coalesce to form nations and thus an individual is a basic unit of a nation. Therefore, development should focus on the general advancement of human well-being, both economic and social.
The explanation above shows that there cannot be national development if citizens have not developed due to several reasons. First, people must be aware of the need to develop their nations and communities, which starts with self-realization. Education plays a significant role in self-realization and thus forms the basis of identity. People should go to school to identify their skills and shape them. There cannot be future leaders if the present day youths are not trained to be good leaders. There should be training and other programs that encourage people to improve their skills and abilities. Once individuals identify their strengths, it becomes easy for them to cultivate these potentials in preparation for the future. Educational programs should aim at helping people identifying skills, talents and abilities that can help the nation develop.
Secondly, people need to know the need for planning as a basic unit of development. Without planning there will be confusions, delays and frustrations that hinder development. Nations should develop long- and short-term plans that aim at addressing civilians’ needs in order to have a phased development approach. Development should focus on educating people how to plan their projects. An individual who effectively plans his/her personal projects is likely to succeed. Once individuals start succeeding in their own ventures, the progress of an entire state will be launched.
Thirdly, people need to build strong relations to facilitate interactions and the implementation of various recommendations. Communal bonding and integration are vital tools for development.
Considering the information provided by the Data on Millennium Development Goals, one must notice that the plan embraced not only economical issues, but also social concerns. According to the data on the economic development, for the efficient improvement in the sphere of state economy, not only economic, but also social changes are required. Analyzing the statistics on development of different states, one can see clearly that the states with low scores on economic growth also have high rates of poverty and inequality.
To be more exact, in the states of the European Union, the rates of economic growth are quite high; the GNI per capita in European countries makes around $34,033; likewise, social development is also quite high in Europe, with male/female ratio of labor participation practically making 1 (50%). Compared to Europe, Middle East and North Africa show rather low scores in both the social (20% of male-to-female ratio of labor participation) and in GNI per capita (only $3,865). Therefore, it is important to keep in mind that the social and the economical aspect of development are closely related.
Conclusion
National development supersedes individuals’ needs and aspirations and people should put national interests before personal gains. Proper planning, communication and coordination are indispensable aspects that facilitate rapid national and individuals’ growth and development.
Works Cited
Conteras, Ricardo n. d., Competing Theories of Economic Development. Web.
Data on Millennium Development Goals. 2013. Web.
Dreze, Jean and Amaraya Sen. “Economic Development and Social Opportunity.” India: Development and Participation. Oxford, UK: Oxford University Press, 2002. Print.