Colonial and Post-Colonial Development - PowerPoint Presentation

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Colonial and Post-Colonial Development

Empire & Aftermath

February 2017Slide2

Introduction

Economic

development

– a term used frequently in 20th century by economists, policymakers, intellectuals. Concept has a longer history, connected to ideas about modernisation, industrialisation, westernisation.‘Development’ usually refers to policy interventions and aid projects that focus on alleviating poverty and improving living conditions in the global SouthThis lecture provides a historical overview of international development, from the late colonial era to the present day.Development never a straightforward benevolent act, but a historically contingent and politically/ideologically driven projectSlide3

Development Aid

Development

Aid

(development assistance, technical assistance, international aid, overseas aid, official development assistance (ODA), foreign aid)Financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countriesDistinguished from humanitarian aid by focusing on alleviating poverty in the long-term

Bilateral (70%) and Multilateral (30%)80-85% of global development aid comes from governments as official development assistance (ODA). $135 billion total ODA in 2014

Remaining 15-20% comes from private sources:

non-governmental organisations (NGOs),

foundations, remittances, etc

.Slide4
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Global Poverty

In 2010, were an estimated 1.2 billion people living under the extreme poverty line ($1.25/day), 2.3 billion people under the poverty line ($2/day)

800 million people go hungry every night

19,000 children die each day from preventable health problemsMore than 58 million primary-age children do not attend schoolEvery day, billions experience extreme forms of deprivationGlobal poverty concentrated in South Asia and sub-Saharan AfricaSlide7
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Development Aid

Aid projects

Budget support (payments to recipient government's general or sectoral budget)

Technical assistance (expertise)Debt reliefClimate changeAt different times, different forms of aid have been have been judged most conducive to successful development. Budget support currently growing in importanceInternational community subscribes to poverty reduction as the overarching purpose of aid. In practice, political and security considerations have always shaped aid allocationsSlide10

History of Development

Late colonial era

Post-1945: Truman’s Point IV

1960s: The Development Decade1970s: Reorientation1980s: The ‘Lost Decade’1990s: Washington Consensus2000s: Millennium Development GoalsSlide11

Colonial Origins

Ideas about

‘improvement’

of colonial territories and people have long history in European imperialism, and in Western thought as a whole (Enlightenment, modernity)Late 19th century ‘new imperialism’: more aggressive colonial policies of Britain, Belgium, France, Germany, Netherlands. More importance attached to science and technology, new possibilities of state planning, more systematic development of coloniesDevelopment a response to problems and disorder generated by late colonial rule (Great Depression, fears of environmental and population crisis). Helped reinvigorate imperial

missionBritain’s Colonial Development Act (1929), Colonial Development and Welfare Act (1940) – ushered in era of state-led, large-scale development projects

Late colonial development

largely failed

... but left important

legaciesSlide12

Colonial Origins: The Kariba Dam

Kariba Dam

:

hydroelectric dam in the Kariba Gorge of the Zambezi river basin between Zambia and Zimbabwe Built by Federation of Rhodesia and Nyasaland in 1950s. Huge project to dam the Zambezi and provide hydroelectric power to surrounding region40% of colonial state's GNP to complete, required submergence of 57,000 local homesCombined many key elements of late colonial development ideology:

grand scale, new technology, desire for industrialisation, modern aesthetics and materials, technological fix to perceived population crisis, sacrifice of indigenous lands/ways of life, reaffirm white European

rule and dampen African nationalismSlide13

Post-1945: Truman’s Point IV

Marshall Plan,

1948:

Reconstruction of Europe. US gave $12bn to rebuild European economies ($120bn in 2016 value)President Truman's 1949 Inaugural Address, Point IV: “we must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas”‘Underdevelopment’ a new worldview. ‘Developed/underdeveloped’ distinction more attuned to post-war world than

‘coloniser/colonised’Economic growth equated with successful development. Industrialisation the engine of

growth, measured in gross domestic product (GDP)

Development aid already linked to security objectives of

the United

States: weapon to address

the threat

of

communism.

Share

US expertise, help

‘third world’

nations to develop, raise standard of living, show that

democracy

and capitalism could provide for the welfare of the individualSlide14

1960s: The UN Development Decade

The UN ‘Development Decade’ – zeal and optimism to improve living standards and eradicate poverty

Modernisation

theory and Walt Rostow's 5 stages of growth(traditional society; preconditions for take-off; take-off; drive to maturity, age of high mass consumption)Impressive growth rates, dramatic improvements in

life expectancy, treatment of disease, education, health, infant mortalityGreen Revolution

huge

increases in global agricultural

production which

peaked

in 1960s:

HYV cereal grains, irrigation, modernisation, hybridized seeds, fertilizers, pesticides, etc

.

Many

disappointments by end of 1960s:

hunger, malnutrition, unemployment, inequality, living standardsSlide15

1970s: Reorientation

Growing dissatisfaction with orthodox development model

Calls for re-examination and re-orientation: new focus on poverty reduction, grassroots projects, ‘basic needs’

Shift away from investment projects in power, transport, telecommunications >> agriculture, rural development, social services, direct interventions to benefit the poorest groupsOPEC oil ‘shock’, Oct 1973 – Mar 1974New International Economic Order, 1974 – the ‘revolt of the third world’?Slide16
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1980s: The ‘Lost Decade’

Debt crisis

Causes: sharp rise in oil prices;

big decline in foreign demand for exports; decreasing primary product prices; rising international interest rates. Commercial banks flushed with OPEC deposits, eager to recycle as loans to third worldSolutions: devised by creditor countries, banks, global financial institutions. In return for debt rescheduling/cancellation, indebted countries had to pursue set of policies under IMF supervision (structural adjustment)Reduce public spending; increase revenue; currency devaluation; removal of price

controlsSlide18
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1980s: The ‘Lost Decade’

Part

of broader shift to neoliberal

ideology and governance: objectives of poverty reduction/growth best served by relying on market forces and private enterprise. Restrict the role of the state.The ‘lost decade’ – stagnation, decreasing output, unemployment, falling wages, reduced public spending on social services, aggravation of poverty, growing inequalityAid becomes a stop-gap to salvage shaky international financial system: service debt, stay afloat, implement adjustment

Vocal criticism of aid in many donor countries, attempts to privatise and outsource to NGOsSlide20

The Rise of Development NGOs

Non-governmental organisations (

NGOs)

non-profit, non-state, non-violent, organised on local/national/international level to address issues in support of public goodDevelopment NGOs championed as having ‘comparative advantage’ from 1970s onwards - efficient, experts, less bureaucratic, more adept at reaching poorest communities‘Pro-NGO norm’ in development arena from 1980s – NGOs promoted as more efficient and cost-effective service providers, part of shift to

neoliberalismIncreasing amounts of official aid channelled through NGOs: now central actors in aid systemSlide21

Cumulated income (£m) of British Red Cross, Christian Aid, Oxfam and Save the Children, 1945-2009 (adjusted for inflation, 2009)Slide22

1990s: The Washington Consensus

Economic ‘Shock therapy’

in former Soviet bloc

nations after the Cold War ends: sudden release of price and currency controls, withdrawal of state subsidies, trade liberalisation, privatisation of state assets. Applied to post-communist states with mixed resultsWashington Consensus: standard reform package by Washington based institutions (WB, IMF, UST)cut public spending; currency devaluation; liberalisation of trade and foreign investment; privatisation; deregulation

Neoliberal model challenged but not overturned, renewed focus on poverty reduction as primary goal of development aid in broad sense (health, education, employment, access to public services) by end of 1990sSlide23

21st

Century: UN Millennium Development Goals

UN Millennium

Development Goals8 international development goals adopted by the UN in 2000. Embodies poverty reduction norm. All member states committed to achieve by 2015: 1: Eradicate extreme poverty and hunger

2: Achieve universal primary education 3: Promote gender equality and empower women

4

: Reduce child

mortality

5

: Improve maternal

health

6

: Combat HIV/AIDS, malaria, other

diseases

7

: Ensure environmental

sustainability

8

: Develop a global partnership for development

Uneven progress: success in some areas more than others, varying results across regions

Post-2001 War

on Terror:

Development aid

still linked

to

foreign policy and security

objectives.Slide24

21st

Century: Post-2015

UN

Millennium Development Goals replaced by UN Sustainable Development Goals - adopted September 2015. 17 Sustainable Development Goals, to be achieved by 2030More

complex and inclusive process than MDGs. Recognise that eliminating poverty will also require reducing inequality, combatting climate change, strengthening labour rights, etc.Also contradictory – old

model of ever-increasing industrial growth

to

fuel developmentSlide25

Critiques & Alternative Visions

Soviet communist model of

development

central planning, one-party state, nationalisation, rapid industrialisation. Centrally planned economies considered an attractive model by many in the Global South. Ensured full employment but with low productivityDependency theoryRejection of modernisation theory, popular in the 1970s, argues resources flow from a ‘periphery’

of poor and underdeveloped states to a ‘core’ of wealthy states (neo-colonialism)Alternative models: grassroots, small-scale, appropriate technologyPost-Development

theory

Argues

the entire concept and practice of development is Eurocentric, unsustainable, ineffective, unjust, and a reflection of Western hegemony.Slide26

Conclusion: Questions to Consider

Imperial

legacies and continuities

The Development ‘Industry’Rise of non-Western ‘emerging donors’. China: aid to Africa an important part of ‘soft power’Does aid actually work? “Foreign aid is... a phenomenal investment. Foreign aid doesn't just save lives; it also lays the

groundwork for lasting, long-term economic progress” (Bill Gates, 2014)

“Giving

more aid than we currently give

– at least

if

it were

given as it is given

now – would make

things

worse

, not

better”

(

Angus Deaton, 2013)Slide27
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Development in Reverse

Statistics show poverty rates declining due to Millennium Development Goals: successful aid, or false accounting?

Rich nations provide

over $100 billion annually in aid. But much more flows in other direction: debt servicing, capital flight, tax avoidance, cheap labour, patent fees, etc. Poor countries actually ‘developing’ rich countries?Jason Hickel: We will never successfully

eradicate global poverty until we dismantle the ‘global wealth extraction system’, prevent capital flight and tax avoidance, cancel debt, halt land grabs, democratise global economic institutions,

and renegotiate all ‘free trade’ deals.

Convincing, or utopian?