What is Development?

Today, it is imperative for humanity as a whole, and for us as individuals, to think more clearly about our individual and collective goals. Without explicit discussion, we have been deceived into adopting the idea that the goal of life is to earn money as individuals, and to accumulate wealth as a society. At the individual level, pursuit of wealth is poisonous for our happiness, which depends on cultivating social relationships, and characteristics of gratitude and generosity, rather than greed. At the collective level, the mad desire to make more and more money at any cost, has led to deaths of millions and destruction  of lives of billions, just for the sake of corporate profits. [short link for this post: bit.do/azwid]

The following lecture at National Institute of Management (NIM), Peshawar, on Friday, 17th Nov 2017 addressed the topic of “What is Development?” and presented radical alternatives to conventional views. (52m YouTube Video)


A Brief Summary of Some Key Concepts in the Lecture above is available from the following article (Published in The Express Tribune, May 18th,  2015.)

Changing Our Development Paradigms (LinkedIn) (WEA Pedagogy Blog)

Growing up in British India, my father learnt that Great Powers had certain special characteristics. For global influence, they had to have sea power which required indented coastlines and natural harbours, coal mines for energy, extensive telegraph cables for communications. Furthermore, they had to have a cold climate to make them hardy, and be isolated from the mainland so as to have natural defences against potential rivals and enemies. In light of these criteria, it would be obvious even to a child, that the UK was the sole and unrivalled leader of the world.

The 1930s editions of Encyclopedia Britannica did not even have an entry for the word ‘democracy’. However, the emergence of the US as a world power changed everything. The First World War ruined European economies, leaving the US as the wealthiest. The winners redefined the criteria for development as being wealth alone. However, when certain oil-based economies with small populations overtook the US in GNP per capita, the criterion was revised to include an equitable income distribution. Later, when Switzerland and certain Scandinavian economies with good income distribution overtook the US, development theorists added the possession of infrastructure and natural resources. The gigantic US with its huge network of highways, dams, railroads, fertile agricultural land, etc. cannot be matched by the tiny European economies. But the point of this story is that the winners define the criteria for development, and ensure that the ongoing discourse acknowledges their leadership. To a much bigger extent than is commonly recognised, leadership and power are built upon structures of knowledge created by the powerful.

How world leaders define development is tremendously influential in setting the goals which everyone strives for. The British aristocrats preferred culture and philosophy, leaving technology to the working classes. Followers like Sir Syed established Aligarh University which emphasised arts; engineering was added only 50 years later. With the rise of the Americans, wealth, which was considered crass by the British, gradually became the sole criterion for development. All over the world, countries are pursuing GNP per capita as the single-most important goal. We need to change this definition of development, which has caused tremendous harm to society and environment.

One of the greatest surprises to economists has been the Easterlin paradox — huge amounts of increasing levels of wealth have not led to corresponding increases in happiness. A book by Professor Richard Lane documents the “Loss of Happiness in Market Democracies”. Studies of Happiness are re-discovering the ancient truths that money cannot buy love and friendship, and that social relationships are key components of happiness. Our development experience reinforces the need to change developmental paradigms. Mahbubul Haq implemented conventional growth policies in Pakistan and learnt that wealth does accumulate, but only in the hands of a select few. He then pioneered the Human Development Index as a superior alternative. Followers like Amartya Sen have pursued the concept to argue that we should concentrate on development of human capabilities. Taking this idea seriously would create radical changes in our approach to development.

Every human life is unique and infinitely precious. All babies are born with amazing potential, with capabilities to astonish the whole world. Our job as a society is to nurture these capabilities and provide an environment which allows them to come to fruition, instead of crushing them beneath the burden of economic deprivations. All our planning, resources and our institutional structures must be adapted towards the achievement of this goal. As a society, we must take collective responsibility to ensure that all children have the chance to achieve their potential. This is radically different from the current view of human beings as a resource to be used for the production of wealth. Education is designed to remove all irregularities and uniqueness, so as to allow the human cogs to fit together well, as interchangeable parts, to be plugged into the capitalist machine for the production of wealth. Shifting the target of our efforts to human development requires building social capital and empowering of communities. The greatest obstacle in our path is a top-down bureaucratic mindset which insists on centralised planning and control. We must learn to ‘trust people daringly’. Engaging citizens is a game-changer in the development process.

CENTRAL LISTING on: AZ Articles: Video/Talks: What is Development? Re-blogged on AZ Seminars. 



This entry was posted in Uncategorized by Asad Zaman. Bookmark the permalink.

About Asad Zaman

BS Math MIT (1974), Ph.D. Econ Stanford (1978)] has taught at leading universities like Columbia, U. Penn., Johns Hopkins and Cal. Tech. Currently he is Vice Chancellor of Pakistan Institute of Development Economics. His textbook Statistical Foundations of Econometric Techniques (Academic Press, NY, 1996) is widely used in advanced graduate courses. His research on Islamic economics is widely cited, and has been highly influential in shaping the field. His publications in top ranked journals like Annals of Statistics, Journal of Econometrics, Econometric Theory, Journal of Labor Economics, etc. have more than a thousand citations as per Google Scholar.

6 thoughts on “What is Development?

  1. No Doubt Sir Citizen’s play a critical role in development but I think the role of state is more critical then citizens. State have to provide a healthy atmosphere to its citizens. Role of state is surely a game changer for its citizens a healthy economic atmosphere reduce income inequality and poverty and these two things are big hurdles in the way of harmony and Development.

  2. Pingback: Prosperity as Human Development, not Wealth | WEA Pedagogy Blog

  3. Pingback: Prosperity as human development, not wealth | Real-World Economics Review Blog

  4. Pingback: Re-defining Prosperity | An Islamic WorldView

  5. Pingback: Quest for Prosperity: Culture & Economy – AZ Seminars

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