Human Development as an alternative paradigm Conceptual Foundations

1. Human Development as an alternative paradigm Conceptual Foundations GCC Regional Workshop on Human Development 9-11 May 2011– Doha, Qatar

2. Overview of presentation • Changing strategies in development thinking • The emergence of the human development paradigm • Human development re-affirmed and the way forward

3. The logic of changing strategies Advanced country thinking

4. CHANGING THEMES IN DEVELOPMENT ECONOMICS

5. Development thinking when countries gained independence • Major emphasis on economic growth (Rostow; Lewis; Hirschman). • Using ‘surplus’ labour. (Nurkse; Lewis) • On industrialisation and raising investment as mechanisms. (Mahalanobis; Rosenstein-Rodan) • In parallel, emphasis on costs of dependence (Prebish/Singer; Frank; Amin; Sunkel). • General neglect of ‘human’ dimension – thought it would be looked after automatically through growth.

6. But challenge to growth followed Why • Rising unemployment; high underemployment • Poverty still high and increasing in absolute terms • Dependency remained – finance, technology, management. • Growth of GNP neglects income distribution, public goods, employment – all essential for improving quality of life. The ILO '..it has become increasingly evident, particularly from the experience of the developing countries, that rapid growth at the national level does not automatically reduce poverty or inequality or provide sufficient productive employment' (ILO, 1976, Employment, Growth and Basic Needs: A One-World Problem, p 15)

7. Defects of focus on money incomes. • Income distribution critically important • Neglects public goods (and externalities more generally). • Assumes utilitarian philosophy. Money income measures utility. Utility should be maximised. • ‘Physical condition neglect’. Entrenched deprivation can become acceptable. • Is consequentialist. Neglects agency goals (how you get there – e.g. child labour). • Assumes people only consider OWN welfare.

8. Succession of challenges to growth only agenda from 1970s • ‘Dethronement’ of GNP (Seers) • Employment objective emphasised: ILO missions to Colombia, Sri Lanka – led by Seers. • Redistribution with growth (Chenery, Singer and others). • Basic needs (ILO, WB, Ghai, Streeten, Ranis, Stewart). • Capabilities (Sen) • Human Development

9. Human well-being goes beyond money incomes • Basic needs approach: • Poor need certain basic goods and services (BN). Income a means. But doesn’t provide public goods. And effectiveness of incomes of households depends on household distribution. Hence BN. • But how to identify what poor need? • True objective is not consumption of goods and services (commodity fetishism – Sen), but to lead a decent life (DL). • Metaproduction function of BN approach, translates BN goods and services into quality of life. E.g. DL = f(a, b, c d….), or Decent life depends on consumption of food, health services, shelter….

10. 2. Sen and capabilities • Goal of development is to enhance people’s potential to be and do. • Potential beings and doings are capabilities [but only things ‘people have reason to value’] • Actual beings and doings are functionings. • Incomes an important means but capabilities go well beyond incomes. • Freedom to choose critical in this approach– hence capabilities not functionings. • Big emphasis on personal characteristics in translation from resources to functionings. • Approach relevant to rich as well as poor countries, rich as well as poor people – big advantage compared with BN.

12. The international agenda, historically • BN dominant end 1970s – ILO and Macnamara at WB. (MahbubulHaq prominent) • Displaced by debt crisis, and adjustment. • Increased role of market; liberalisation • Growth and poverty displaced. • Rising poverty in the 1980s – led to reemphasis on poverty • UNICEF, Adjustment with a Human Face, 1987. • 1990 first Human Development Report.(and Poverty Report of World Bank) • 2000: MDGs

13. 1990 HDR on “Human Development” Inspired by Sen’s work on capabilities and the idea of development as freedom, 1990 HDR introduced and defined the concept as follows: “Human development is a process of enlarging people’s choices. The most critical ones are to lead a long and healthy life, to be educated and to enjoy a decent standard of living. Additional choices include political freedom, guaranteed human rights and self-respect…. The term … denotes both the process of widening people’s choices and the level of their achieved well-being.” Over time, “enlarging people’s choices” became the most commonly used definition. Based on data and techniques available in 1990, the measurement of HD (HDI) centred on long healthy lives, educational levels and living standard

14. Some key aspects of HD • Humans are ends not means • Incomes are means not end. • In practice major focus is on BN type goods and services, but also discusses other issues (freedom, democracy, gender, environment, communities, culture) – it is open ended. Considers topics relevant to more developed countries. All issues brought in which may affect human beings’ potential. • Freedom to choose given priority – I.e. HD concerns widening human choices. • Yet accepts that humans are an important resource too as well as being the objective of development.

15. Relationship between HD and economic growth

16. Diverse and ambitious themes since 1990 • Concept and Measurement • Financing • Global Dimensions • People’s Participation • Human Security • Gender • Economic Growth • Poverty • Consumption • Globalization • Human Rights • New technologies • Democracy • MDGs • Cultural Liberty • Aid, trade and security • Water • Climate Change • Human Mobility • Pathways to Human Development • (Sustainability and Equity) Global HDR launched in 1990, published annually since then, complemented and enriched by over 700 regional, national and sub-national HDRs

17. 2010: HD reaffirmed "Human development is the expansion of people’s freedoms to live long, healthy and creative lives; to advance other goals they have reason to value; and to engage actively in shaping development equitably and sustainably on a shared planet. People are both the beneficiaries and drivers of human development, as individuals and in groups.”

18. 2010: HD reaffirmed Three components: • Well-being: expanding people’s real freedoms so that people can fluorish • Empowerment and agency: enable people and groups to act – to drive valuable outcomes • Justice: expanding equity, sustaining outcomes overt time and respecting human rights and other goals of society

19. HD: The unfinished agenda • HD has too much been identified with HDI. • Beyond the HDI (health, education, income), exploring other measures of progress. • Many approaches used to define good life: • e.g. Rawls: ‘deliberative rationality’ in defining primary goods: ‘with careful consideration of relevant facts..and consequences’. • Finnis: practical reasoning ‘critical reflection about the planning of one’s life (Nussbaum). • Doyal and Gough (basic needs):avoidance of serious harm, where harm prevents people realising their plan of life). • Nussbaum, follows Rawls, ‘overlapping consensus’ • Consultation: Voices of the poor; quality of life consultation by WED research group. • N.B. ‘list’ approach famously avoided by Sen: process is ‘democratic consensus’.

20. HD: The unfinished agendaMajor priorities • Explore ways in which people can consider, and agree on defining and prioritising alternative dimensions. • Integrate with environmental framework. • Analyse underlying political conditions and strategies for promoting HD. • Push forward with revising measures of progress at macro-level in rich and poor countries. • Evaluate progress at micro-level with HD perspective.

21. Summary • HD represents an important alternative paradigm to the economic/market paradigm generally adopted by World Bank. • Interpretation of HD is very wide: it relates to all features of society that promote human flourishing, or prevent it. • New aspects still being developed 15 years after report started. • Human development goes well beyond the HDI.