Local and Global Development

Professor: Paola De Vivo

Najet Atfi (P20000154)

CHAPTERS : 4/5/13

Chapter 4: the invention of development

Following, the second world war many cities including some of the leading
industrial and cultural centers of Great Britain, France, Germany, Italy
and Belgium, had been destroyed.

However, Europe in order to free itself from Nazism, had to place itself in the
hands of the new greatest powers, the United States and the Soviet Union. The
United Nations organization had replaced the defunct league. This period
characterized by the adoption of New Universal declaration of human rights
which reaffirmed that everyone was equal.

On 5 June 1947, following a meeting of the participating European

states the reconstruction coordinated under the Marshall Plan was
formulated. It was for: to help the European economy and to provide
America’s huge production capacity

President Truman’s point four

By the end of 1984, Truman extended the Marshall plan to less

developed countries. The presidential speechwriter during elaborating
meetings came up with the following three points to be inserted into the
text of the president is speech: first of all, the United States would
continue to support UNO, then would be also keep the European

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reconstruction effort through the
Marshall plan. The third point, the US would create a NATO to meet the
Soviet threat.

Then, some of them suggested adding a point four program

inaugurated the ‘development age’, it was first proclaimed by a presiden t
of the US

The content of the point four based on the improvement and growth
of underdeveloped areas.

Less developed countries still living in misery and extreme poverty,

they don’t have inadequate food; they live in stagnation, and infectious
disease. In order to help them The United Sates started to develop their
strategies through the benefits of technical knowledge.

The cooperation with other nations through the United Nations and
with specialized agencies for the achievement of peace, plenty and
freedom. Also the cooperation of business, private capital, agriculture
and labor for increasing the industrial activity.

Expanding the foreign investment and international trade

“commerce” with developing countries, in way that they can improve
their standards of living and achieve the prosperity.

Eliminating the old imperialism, particularly the exploitation for

foreign profit and the natural resources of poor countries.

Democracy can be the key, we can say as way to modern society, in

which eliminate the hunger, misery, despair. And lead to freedom and
happiness for all. While this new point makes no promises but simply
points to achieving, it was a shortlist of intentions which refers to the
role of United Nations.

A New world view UNDERDEVELOPMENT

The adoption of t point four’s text it is possible to see the notion of

underdeveloped. Defined an adjective in which used in several times.
firstly, it used in 1942 by an international labor organization, functionary
in article about “economic Advancement of Underdeveloped Areas”.

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In that case, marx and leroy-Beaulieu
both of them employed it by in the stages of development exactly in
Article 22 of the Covenant of the League of Nations . The concept of
development used also by Lenin, Schumpeter, and Rosenstein, etc…..

In December, 1948, the Un General Assembly had adopted a pair of

resolutions: ‘economic development of Underdeveloped Countries’ and
‘Technical Assistance for economic development’ based on the example
of western Countries as developed countries. We can mention that the
noun development was not new word in a socioeconomic context. But
the appearance of underdevelopment evolved some changes in
perception of development. In this way, “development” took a transitive
meaning

These contextual changes radically transformed, until the north south

relations was arranged on colonizer colonized opposition. However,
newly invented ‘developed’/‘underdeveloped’ dichotomy proposed a
different relationship, in conformity with the new Universal declaration
of human rights and the progressive globalization of the system of states.

While, the confrontation between the colonizer-colonized existed,

however, ‘underdeveloped’ and ‘developed’ were members of a single
family. ‘Underdevelopment’ was not the opposite of ‘development’ it
was just incomplete from of development. To meet that gap the only way
is acceleration the growth in underdevelopment regions.

US HEGEMONY

Before the war, Britain and other European countries maintained

colonies all over the world, which provided valuable manpower and
strategic bases. First of all, the new dichotomy was much more effective
in discrediting colonialism; the US led the process of decolonization and
started its hegemony. By eradication the colonial empires, the US gained

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access to new markets, and the
‘development program could allow US to deploy a new anti-colonial
imperialism.

Secondly, the introduction of underdevelopment as state suffering the

basic needs for humans and development as wealthy and rich country
kept a gap between two parts of the world. The only thing that matters to
decrease this gap is ‘international effort’, a ‘collective enterprise’ based
upon an increase in production and better use of the world’s natural and
human resources. It means is ‘to make resources available’, ‘to help
others help themselves’

Finally, the US asserted its hegemony by standing beyond the

separation between communism and capitalism, which considered way to
prosperity and happiness was increased production. We can note that the
point four simply imposed a new standard called GDP which classified
the US in the top.

A new paradigm

The new paradigm of development has an orientation of reinforcing human

values along with economic development. The point four was relatively
interesting first recalls the desperate straits in which more than half the world is
population. Secondly, provides auditory with the hope that something in hand
that will bring happiness and make it possible transformation for their lives. And
finally if people effort is seized the chance of an era of happiness, peace and
prosperity will come

This new belief in development in its credibility and affirming necessity of

development as the only solution to the problems of humanity also a way to
accelerate the growth and to redistribute its effects.

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The development age

The point four considered the new era is opening act for several
reasons: first of all forms of discourse express more clearly accurately
than others a reality. And finally the per formative aspect of the text in
which involve changing reality, but, rather, inserting it into a different
problematic situations.

All this is contained in point four, we can say that point four managed to
chart a global strategy.

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Chapter 5: the international
doctrine and institutions take root
We will continue explaining the Point four in which attributed important
implications in political scene that should be taken seriously. After,
Truman’s speech and the marshal plan the United Nations and NATO
started to believe in the future of ‘development assistance”, they argued
that for achieving it, we should create institutions directing the project,
and the future beneficiaries had to organize themselves and seize the
opportunity being offered them

International politics show many important movements starting from

1850s were evidently dominated by the Cold War, more than one event
happened for example the Korean War, the death of Stalin, the French
defeat at Dien Bien Phu in 1945. However the cold war had really an
effect on the international policy. First of all, the Cold War had at least
two consequences. First, it constituted the ‘third World’ as an
ideological battleground of the major powers, second; it blocked the UN
decision-making system.

For that reason, international organizations and underdeveloped

countries of third world created the new rules and values of development
that are to be discussed now.

The Bandung conference

Under the political analysis of the proceedings at Bandung,

representatives from twenty-nine governments of Asian and African nations,
met to discuss the role of the Third World in the Cold War, economic
development, and decolonization.

The governments underlined the sharp criticism of colonialism, the

demand for the independence of all colonial countries particularly

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Tunisia, Algeria and Morocco, the
request for UN membership for participating countries and the creation
of a platform on which the people’s republic of China could assert its
status as a major power.

We can note that the Bandung Conference included mostly Asian and African
countries due to the continuing colonialism in Africa by that time the absence of
Latin America.

However, the core principles of the Bandung Conference were political

principles such as; respect of basic human rights, sovereignty and territorial
integrity, equality of races and nations, non-interference in internal affairs, the
right of national or collective self-defense, abstention from acts or threats of
aggression or the use of force, peaceful settlement of disputes, international
cooperation based upon mutual interests, respect for justice and international
obligations. Also they referenced to the racial discrimination in South Africa and
the ‘rights of the Arab people of Palestine. These references would later be taken
in official manner in countless resolutions of the Un General Assembly.

In this paragraph, development was seen in terms of economic cooperation,

of economic cooperation an economic we can mention as example in the first
section of the final communiqué the Asian–African Conference which
recognized the urgency of promoting economic development in the Asian–
African region, among the participating countries on the basis of mutual interest
and respect for national sovereignty. However, the Asian–African Conference
recommended: the early establishment of the special United Nations fund for
economic development; the allocation by the international Bank for
reconstruction and development of a greater part of its resources to Asian–
African countries

The Asian–African Conference recognized the vital need for stabilizing

commodity trade in the region. Also recommended that collective action be
taken by participating countries for stabilizing the international prices through

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bilateral and multilateral arrangements of
enlarging the scope of multilateral trade and payments was accepted.

The Asian–African Conference attached considerable importance to

shipping. They argue that the establishment of national and regional banks and
insurance companies is important for achieving the development. Also they
emphasized the particular significance of the development of nuclear energy for
peaceful purposes, for the Asian–African countries. Finally, the Asian–African
Conference recommended that there should be prior consultation of participating
countries in international forums

The development is based upon private investment and external assistance,

through the role that will be played in this by modern technology, the process of
industrialization and the expansion of free trade

At the same time, a number of new institutions or political orientations were

portrayed. In 1958, the UN would create SUNFED, the special United Nations
fund for economic development, the World Bank, in 1956 to allocate nearly all
its funds to the third World, the international finance Corporation for promotion
of private investment. For the stabilization of raw materials prices and the
problems of transport they created of UNCTAD in 1964.

While, the Bandung Conference has maintained in the collective memory as

the launching pad for third World demands. The conference emphasized
‘cultural cooperation’ in which criticized the internal colonialism. As result, in
any event, the ritualistic condemnations of ‘colonialism, neo-colonialism and
imperialism’ did not make their debut at Bandung. Although the final
communiqué insisted that ‘all nations should have the right freely to choose their
own political and economic systems and their own way of life’

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The new international development agencies

As we observed the article 5a of the Charter required the United Nations; to

develop the standards of living, opportunities of employment, and social
progress, there was the role that must be played by UN secretary General
together with the economic and social Council and other UN institutions.
Truman’s point four gave encouragement to establish a series of special
agencies for the promotion of ‘development’. We mention as examples, the
creation of an ‘expanded program of technical Assistance’ by the general
assembly of UN on 16 November 1949, comprising the specialized agency
directors to set up the programs of development in the third world. However the
key role played by Technical Assistance Committee in which drawn from
members of the economic and social Council. It is important to know that the
technical assistance was not enough and had to be complemented by capital
transfers. Initially, the economic and social Council tried to solve the problem
through the World Bank, but the Bank refused. After that, the creation of a
special United Nations fund for economic development ended in failure in 1953.

Moreover, in 1965 the World Bank founded an international finance

Corporation, and then an international development Association whose mandate
was to make loans to the poorest countries. Eventually, in 1965 this special fund
was merged with the expanded program of technical Assistance to form the
United Nations development program. We conclude with the pressing of UN in
three related issues: human rights, decolonization, and development.

After the death of dag hammarskjöld in the Congo, following a speech by

president Kennedy, in his Proposals did not promise that the problems of
underdevelopment would be solved within ten years, but he proposed a number
of themes which would later become the basis of all discourse on
‘development’. First of all, he argued that development is not just economic
growth it is change, which after the UNDP confirmed that and maintained that
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development as economic growth is
necessary for human development. From the important points in the president’s
speech we can mention: ‘The principle of capital assistance to developing
countries is one of the most striking expressions of international solidarity. Also
the unsatisfactory of foreign trade cause of trade barriers and the tariff measures,
in which that developed countries protect their national products from other
countries. Beside the problem of international trade another point must be added
is the importance of human factor and ‘the urgent need to mobilize human
resources.

We can close this chapter with the value of international organizations and their
contribution to mobilize growing resources, in which developing countries could
themselves benefit from offers of international aid.

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Chapter 13: From the struggle
against poverty to the Millennium development goals

Historically, the question of poverty existed in the 1970, when the

president of the World Bank mentioned the condition of those living in
‘absolute poverty’ he also proposed that their ‘basic needs’ should be
met in order gradually to integrate them into the economic system.

However, the poor constitute a serious problem, and have been a

part, often disturbing part of every society. That’s why a majority of
international agencies have recently involved themselves to a ‘strategy
of struggle against poverty. Now let us take a little detour into history,
poverty have taken three forms: the first one was philanthropic or
charitable it was based on comparison between rich and poor people
which the rich people were expected to be generous, to give and to
distribute donations.

The second was political linked to the maintenance of law and the
third solution involved constraining the poor to make them useful to earn
the succor afforded them by society, as in the English workhouses or the
German Zuchthäuser. In this chapter more than one question must be
posed: what is the problem? Who are exactly the poor, and how the
millennium goals effective and if is it able to reduce the absolute
poverty?

What is the problem?

We already know that poverty is the problem, “No one seems to

remember that for such ‘problems’ to arise two sets of actors must be involved:
rich and poor, white and black, men and women. In other words the rich do not
exist without the poor…” In reality, the poverty emerges with a social

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relation in which separates the poor and
the rich, a reality that the international agencies cannot ignore it.

However, the UNDP has calculated the rate of the differences

between the two classes through the annual income index in what it does
do is calculate exactly, national and international inequalities, and
deplore the fact that they are increasing. Probably that was the reason
created by the capitalist system. The question is actually whether one can
talk about poverty without talking about wealth.

Who are the poor?

The poor are those who ‘lack necessities or have only the bare
necessities, those who do not have sufficient money or means to meet
their needs. In another way is the lack of economic resources, such as in
Africa, Latin America etc. We mean the third World country often say
‘these people have nothing’

However the international agencies argued that poverty is not about

income alone, but is multidimensional, and that low level of education,
bad sanitary conditions, powerlessness and a general social vulnerability
all contribute to the condition of the poor. After all we cannot forget the
role played by the UN system in which searching for better way of
getting the poor out of the way once and for all than encouraging them to
join the rich, or the ‘less poor’ at any rate.

We can mention as an example the UNDP in which insisted to

fighting poverty and spending more money for poor, also helping the
states to enhance strategies against this problem and this entails not just
putting the main emphasis on infrastructure (roads, sewerage, education)
in poorer regions, but also giving the poor access to jobs in agriculture,
construction and small business, better integration of the poor into the

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market system and encouraging public
authorities to increase more their wages.

The difficulties to combating poverty explained by the complexity of

development as the World Bank calls it, is used by the international
agencies to justify the extension of their activities to every domain of
social life: economic growth, social services, the environment, gender
issues, public administration, decentralization, social capital,
mobilization of the poor, international aid, debt management, good
governance.

THE MILLENIUNM GOALS: Development in shreds

The first experiment to manager this complexity of development,

there is a number of suggestions for improving economic growth,
making markets perform better for poor people, as we can say the failure
of state institutions unfavorable to poor people. Indeed these strategies
have not been abandoned, but now they are placed under the auspices of
supposedly unanimous millennium Goals. The 2007 report on
millennium development Goals happily notes that the proportion of
people living on less than one dollar a day has fallen considerably as a
result of economic growth, especially in Asia.

We know all that millennium development goals were adopted for

reducing poverty, the fight against illiteracy, progress in life expectancy
and preserving the environment. In this context, the concept of
development was reformed from a complex dimension to a set of goals,
but they were hard to achieve it, because the international agencies
pretended to abundant the multidimensional view of poverty. For instance,
al- though the numbers of the poor have declined, especially in Asia, while it is
too early to say whether the millennium Goals will be achieved or not. But the

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forecasts are pessimistic. After that into this
new ‘challenge’, the secretary-General of the United Nations indicated moderate
optimism, and success is still possible in most parts of the world. Although we
cannot ignore that, in half the ‘developing’ countries, health systems are still
inadequate; the number of deaths due to HIV/AIDS is on the rise, inequalities
are growing, carbon dioxide emissions increased.

DEVELOPEMNT AID: MASSAGING THE FIGURES

For the UN secretary-General, Ban Ki moon, these ‘mixed’ results should be

blamed on the low level of development aid in the world, also should be
increase to establish an international partnership. But there is some hesitations
about an approach that assigns the main responsibility for the millennium Goals
to ‘development aid’

While ban ki moon, denounced the ‘lack of any significant increase in

official development assistance since 2004 but tthe Development Assistance
Committee (DAC) of the OECD tries to show that its members’ efforts have
been considerable. At the end, the aid increased from 1997 to 2005, then fell
back again in 2006. The volume of assistance reported by members of the DAC
has also been artificially swollen through the inclusion of elements only
remotely connected with ‘development’. We can mention as an example
Switzerland considered as a country under ODA not only study grants but also
since 2004, welfare payments to asylum- seekers from those countries during
their first year of residence, gifts of military material for humanitarian purposes.
The other countries as France, Canada, Austria and Germany official aid for
foreign students from developing countries in higher education

Unfortunately, Ban Ki-moon is therefore right, at least with regard to the low
assistance level covered up by the OECD figures, but he always insisted that
OECD will be capable of achieving the Millennium Goals.

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In another way, we cannot forget the
preponderant role played by ‘private sector contributions have considerably
increased from 2001 to 2005, also the foreign public and private investment
from developing countries toward the industrialized countries. Finally, the level
of new public loans is markedly lower than that of repayments: in 2005, for
instance, Argentina, Brazil, turkey and Russia all discharged major loans
granted by the IMF.

The combat against poverty in not easy process because poverty posed
several other problems as the nagging problem of social disparities in which that
can be solved through the expanding of development in the entire world
especially in sub-Saharan Africa and parts of Asia, we can say that no one of
them has been successful and now is worse than before.