DEVELOPMENT STRATEGIES

DEVELOPMENT STRATEGIES NOTES

Industrialization

In its broadest sense, industry is any work that is undertaken for
economic gain and that promotes employment. The word may be applied to a
wide range of activities, from farming to manufacturing to tourism. It
encompasses production at any scale, from the local—sometimes known as
cottage industry—to the multinational or transnational. In a more
restricted sense, industry refers to the production of goods, especially
when that production is accomplished with machines. It is this limited
definition of industry that is embodied by the notion of
industrialization: the transition to an economy based on the largescale,
machine-assisted production of goods by a concentrated, usually urban,
population of workers. Manufacturing, which literally means “making by
hand”, has come to describe mechanical production in factories, mills,
and other industrial plants

Classifying Industry

An industry is usually classified as belonging to one of the following
four groups:

Primarily
Secondary
Tertiary
Quaternary.

Primary industries, which collect or extract raw materials, are located
where the resources are found.
Secondary industries are those that process or convert the raw materials
into finished products. Some of these manufacturing industries must be
situated close to the raw materials they use, others are tied to their
largest markets, and still others—independent of both resources and
markets—are often located wherever it is cheapest at the time.
Tertiary industries are the service industries. These include retailing,
wholesaling, transport, public administration, and the professions, such
as law.
Quaternary industries comprise activities that provide expertise and
information. Consultancy services and research organizations belong to
this category. These are generally market oriented, but since electronic
communication permits swift contact and the easy transmission of data,
they may be located almost anywhere.

Industrial Transition

Changes to the industrial structure of a country can be measured using
either the value of manufactured output or alterations to the employment
structure. For the established industrial nations, there has been a
clear shift in the relative importance of different types of industry,
and this has been accompanied by a change in employment. Since the
mid-19th century, the proportion of the US workforce employed in primary
industry has declined from about 70 per cent to its present level of
just 3 per cent. Employment in secondary industry reached a peak of 30
per cent in the 1950s, after which it dropped back to 23 per cent.
Tertiary and quaternary industries now employ 74 per cent of the workforce.

The corresponding figures for the UK are nearly identical: primary
industry has just 2 per cent, secondary 23 per cent, and tertiary and
quaternary 75 per cent of the workforce. In Germany, the distribution is
3 per cent in primary industry, 37 per cent in secondary, and 60 per
cent in tertiary and quaternary.

These figures stand in marked contrast to those of the Emerging and Less
Developed Ccountries (ELDCs). In India, for example, 65 per cent of the
workforce is engaged in primary industry, 19 per cent in secondary, and
11 per cent in tertiary. Not all ELDCs display similar figures,
however-much depends on their history and their links with the rest of
the world. In Nigeria and South Africa, for example, approximately 44
per cent and 50 per cent of the workforce respectively is engaged in
tertiary activity.

De-industrialization
De-industrialization describes the decline in the contribution made by
manufacturing industry to a nation’s overall economic prosperity. The
process might better be termed reindustrialization, because the shift is
not away from industry altogether, but from secondary to tertiary and
quaternary industry. In other words, a de-industrializing economy moves
away from the manufacture of goods and towards the provision of
services. Those countries to industrialize first—the UK, France, and the
United States—are now undergoing de-industrialization. The ascendancy of
the service economy in the context of the post-industrial society is
characterized by a number of apparently negative features, such as a
decline in manufacturing employment and a dependence on imports across a
wide range of sectors.

Although the loss of the manufacturing base is likely to create
unemployment at first, it may not be an adverse development in the long
term. Ironically, de-industrialization in the three countries mentioned
above has been accompanied by a growth in the high-tech industries in
areas such as the Côte d’ Azur in France; Silicon Valley in California;
and along the M4 motorway, around Cambridge, and in central Scotland—the
so-called Silicon Glen—in the UK. The long-term impact of
de-industrialization has yet to be felt. It may be the speed of the
process, rather than the process itself, that needs careful management.

Transnational Corporations
Probably the most significant industrial development since the 1960s has
been the rise of the multinational or transnational company. Examples of
these companies, which operate in many countries, are Ford, General
Motors, IBM, Siemens, and Matsushita Electrical. United Nations (UN)
estimates that investment by transnational companies has risen by 13 per
cent per year over the last 20 years, largely because more and more
governments are accepting these firms into their countries.
Nevertheless, the growth of multinational corporations has raised a
number of concerns. An enormous amount of production power is
concentrated in the hands of a few controllers, which means that the
countries involved become directly susceptible to economic changes in
other parts of the world. The transfer of assets from one country to
another may be difficult for governments to manage or prevent, and there
are likely to be disparities in the treatment of different countries.

Manufacturing countries experiencing the decline of home-based industry,
such as the UK, have proved attractive targets for multinationals. So
have countries in Asia and South America, where energy and labour are
relatively inexpensive. By contrast, few African countries have
benefited from investment by transnational corporations because of the
general lack of skilled workforce and adequate infrastructure. Not all
transnational have their origins in the developed nations. The
development of such companies is encouraged in the NICs as a means of
securing expanding export markets.

Consequences of Industrialization

Most countries regard industrialization as a positive development
capable of generating rapid wealth, revitalizing run-down areas, and
conferring influence in world affairs. Most also now recognize the need
for a diversified industrial base to safeguard their economies from
fluctuations in the market price for their own specialized product.
Industrialization schemes commonly require a parallel development of
energy sources. In the case of hydroelectric plants, there is social
dislocation, since large areas may be flooded to create the necessary
water reserves behind the so-called super-dams.

Environmental safeguards may be overlooked, leading to serious problems
of air, land, and water pollution. One of the worst incidents occurred
in Minamata, Japan, where mercury residues from nearby chemical plants
contaminated the water of Minamata Bay, were ingested by fish, and then
entered the human food chain to cause death and illness for up to 30
years after the event. Another notorious example was Bhopal, India,
where a leak of poisonous gas killed thousands of people and blinded or
otherwise injured many others.

In Europe, the North Sea is suffering from the effects of industrial
waste, thermal pollution from power stations, atmospheric fallout
containing high levels of lead, oil spilled form ships, and radioactive
materials from nuclear power stations. Increasing industrialization
means that pressures to conserve resources are rising. Urbanization and
associated problems such as housing, crime unemployment etc

The Future of Industry

Several trends are likely in the global pattern of industrialization.
First, only certain countries, and not the world as a whole, may
experience a post-industrial future. A second trend will be the
efficient and careful use of resources and the growth in recycling as
the concept of sustainability becomes better established. Recycling
industries are a growth area themselves, and established manufacturers
are increasingly operating product recycling schemes. A final trend will
be the growing need for alternative technologies to reduce the
consumption of resources for industrial production and to protect the
natural environment. Worldwide cooperation will be necessary if all
nations are to gain from the potential benefits of industry.

Modernization

Modernization is a concept used in sociology and politics. It is the
view that a standard, teleological (the explanation of phenomena by the
purpose they serve rather than by postulated causes) evolutionary
pattern, as described in the social evolutionism theories, exists as a
template for all nations and peoples

According to theories of modernization, each society would evolve
inexorably from barbarism to ever greater levels of development and
civilization. The more modern states would be wealthier and more
powerful, and their citizens freer and having a higher standard of
living. According to the Social theorist Peter Wagner, modernization can
be seen as processes, and as offensives.

The former view suggests that it is developments, such as new data
technology or dated laws, which make modernization necessary or
preferable. This view makes critique of modernization difficult, since
it implies that it is these developments which control the limits of
human interaction, and not vice versa.

The latter view of modernization as offensives argues that both the developments and the altered
opportunities made available by these developments are shaped and
controlled by human agents. The view of modernization as offensives
therefore sees it as a product of human planning and action, an active
process capable of being both changed and criticized. This was the
standard view in the social sciences for many decades. It was also
viewed as a “development of the rational and universal mind towards
self-consciousness and freedom.” This theory stressed the importance of
societies being open to change and saw reactionary forces as restricting
development. Maintaining tradition for tradition’s sake was thought to
be harmful to progress and development.

This approach has been heavily criticized, mainly because it conflated
modernization with westernization. In this model, the modernization of a
society required the destruction of the indigenous culture and its
replacement by a more westernized one.

Technically modernity

simply refers to the present, and any society still in existence is
therefore modern. Proponents of modernization typically view only
Western society as being truly modern arguing that others are primitive
or ‘unevolved’ by comparison. This view sees ‘unmodernized’ societies as
inferior even if they have the same standard of living as western
societies. Opponents of this view argue that modernity is independent of
culture and can be adapted to any society. Japan is cited as an example
by both sides. Some see it as proof that a thoroughly modern way of life
can exist in a non-western society. Others argue that Japan has become
distinctly more western as a result of its modernization. In addition,
this view is accused of being Eurocentric, as modernization began in
Europe with the industrial revolution.

Science and Technology and Development

Science is the intellectual and practical activity encompassing the
systematic study of the structure and behavior of the physical and
natural world through observation and experiment, while technology is
the application of scientific knowledge for practical purposes
Over the past 150 years, progress in science and technology has been a
key driver of human and societal development, vastly expanding the
horizons of human potential and enabling radical transformations in the
quality of life enjoyed by millions of people. The harnessing of modern
sources of energy counts among the major accomplishments of past
scientific and technological progress. And expanding access to modern
forms of energy is itself essential to create the conditions for further
progress. All available forecasts point to continued rapid growth in
global demand for energy to fuel economic growth and meet the needs of a
still-expanding world population. It is useful to distinguish between
several generally accepted phases of technological evolution, beginning
with basic scientific research and followed by development and
demonstration, RD&D. When all goes well, RD&D is followed by a ‘third
D’—the deployment phase— wherein demonstrated technologies cross the
threshold to commercial viability and gain acceptance in the marketplace.

Typically, government’s role is most pronounced in the early research
and development phases of this progression while the private sector
plays a larger role in the demonstration and deployment phases.
Nevertheless, government can also make an important contribution in the
demonstration and early deployment phases, for example, by funding
demonstration projects, providing financial incentives to overcome early
deployment hurdles, and helping to create a market for new technologies
through purchasing and other policies.

Many demonstrated technologies encounter significant market hurdles as
they approach the deployment phase; for some—hybrid vehicles, hydrogen
as a transport fuel, solar energy, coal-based integrated gasification
combined cycle (IGCC), and fuel cells— cost rather than technological
feasibility becomes the central issue. Established private-sector
stakeholders can be expected to resist, or even actively undermine, the
deployment of new technologies, thus necessitating additional policy
interventions.

Participatory Development

The meaning of “participation” is often a rendition of the
organizational culture defining it. Participation has been variously
described as a means and an end, as essential within agencies as it is
in the field and as an educational and empowering process necessary to
correct power imbalances between rich and poor. It has been broadly
conceived to embrace the idea that all “stakeholders” should take part
in decision making and it has been more narrowly described as the
extraction of local knowledge to design programs off site. Differences
in definitions and methods aside, there is some common agreement
concerning what constitutes authentic “participation”.

Participation is involvement by a local population and, at times,
additional stakeholders in the creation, content and conduct of a
program or policy designed to change their lives. Built on a belief that
citizens can be trusted to shape their own future, participatory
development uses local decision making and capacities to steer and
define the nature of an intervention. Participation requires recognition
and use of local capacities and avoids the imposition of priorities from
the outside. It increases the odds that a program will be on target and
its results will more likely be sustainable.

Ultimately, participatory development is driven by a belief in the
importance of entrusting citizens with the responsibility to shape their
own future, systems and as resources, from salaries to food parcels and
reconstruction materials are delivered. With no awareness of social or
political context it is never certain if an intervention is warranted at
all. And when there is blind engagement, ignorance of context makes each
choice a round of roulette, potentially explosive and liable to overrun
the self-development potential of the target population while
undermining the effectiveness of assistance delivery in the first place.
At worst, we aid and abet the violence and become accomplices to
adversity. Participatory methodologies, as part of political development
programs or not, increase awareness of the social and political context
and better the odds this will be avoided.

Four separate studies of participatory programming have found that such methods often cost less
in the long run and are consistently more effective at getting
assistance where it needs to go. Such methods were also found to be
unmatched in fostering sustainability, strengthening local self-help
capacities and in improving the status of women and youth. Finally, by
establishing platforms where organizations may access and involve
citizens in their programs, participatory development methods often
extended the reach of traditional development approaches by leveraging
local resources with national and foreign assets.

Benefits of Participatory Development

Coverage- to reach and involve on a wider scale the disadvantaged rural
people through institution building that is the creation of adequate
“receiving” systems at grassroots level as well as of corresponding
“delivery” systems Efficiency- to obtain a cost-efficient design and
implementation of a project. The beneficiaries will contribute more in
project planning and implementation by providing ideas, manpower, labour
and/or other resources (cost-sharing). Consequently project resources
are used more efficiently

Effectiveness- the people involved obtain a say in the determination of
objectives and actions, and assist in various operations like project
administration, monitoring and evaluation. They obtain also more
opportunities to contribute their indigenous knowledge of the local
conditions to the project and thus facilitate the diagnosis of
environmental, social and institutional constraints as well as the
search for viable solutions;

Adoption of innovations- the beneficiaries can develop greater
responsiveness to new methods of production, technologies as well as
services offered;
Production- higher production levels can be achieved while ensuring more
equitable distribution of benefits;
Successful results- more and better outputs and impact are obtained in a
project and thus
longer-term viability and more solid sustainability. By stressing
decentralization democratic processes of decision-making and self-help, various key problems can be
better solved, including recurrent costs, cost-sharing with
beneficiaries as well as operation and maintenance;
Self-reliance- this broad, ultimate objective embraces all the positive
effects of genuine participation by rural people. Self-reliance
demolishes their over-dependency attitudes, enhances awareness,
confidence and self-initiative. It also increases people’s control over
resources and development efforts, enables them to plan and implement
and also to participate in development efforts at levels beyond their
community Supporting institutions like government agencies and NGOs can
fulfill better their mandates

National Sustainable Development Strategies

National development strategies over the last few years have identified
strategic management as a new pattern of governance and policy making.
Being strategic entails developing an underlying vision through
consensual, effective and iterative process; and going
on to set objectives, identify the means of achieving them, and then
monitor the achievement as a guide to the next round of this learning
process.

It also entails shifting grand planning schemes to adaptive strategy
processes, from authorities to competencies, from pure hierarchies to a
combination of hierarchies and networks, from control to monitoring evaluation and feedback, and from knowing to learning
are promising steps in the right direction. The success of this shift is
typically a function of process aspects such as leadership,
planning, implementation, and monitoring and review. The latter
represent some of the fundamental tenets of strategic management.

Leadership – “developing an underlying vision through consensual,
effective and iterative process; and going on to set objectives”.
Leadership is perhaps the most critical aspect of strategic management.
Through a consultative process, it provides the vision for development
activities and services. At its foundation, leadership must be grounded
in the fundamental principles of sustainable development, that is, it
must represent both existing and future generations, and it must
understand the interdependency among economic, social and environmental
systems. It requires identification of:

Type of strategy approach
Demonstrating commitment and focus
Incorporating the inter-generational SD principle
Incorporating the interdependency SD principle

Some of the characteristics of leadership include the following:

people-centered approach;
strong political commitment;
consensus and long-term vision;
sound leadership and good governance;
comprehensive and integrated (economic, social, and environmental;
intergenerational consideration);
shared strategic and pragmatic vision;
comprehensive and reliable analysis;
linking short-term to medium and long-term;
country led and nationally owned;
effective participation; and
Realistic and flexible targets.

Planning – identifying the means of achieving objectives (institutional
mechanisms, programmatic structures and specific policy initiatives). It
requires identification of:

Legal basis
Institutional basis
Policy assessment

Implementation – employing and financing a mix of policy initiatives
Monitoring, learning and adapting – development, monitoring and
reporting of indicators to measure:

Progress in implementing policy initiatives
The economic, social and environmental state of the nation.
Also includes formal and informal feedback mechanisms to ensure that
monitoring results continually inform the adaptation of leadership,
planning and implementation.

Approaches for the Strategy Process

Comprehensive, multi-dimensional SD strategy

A single document and process that incorporates economic, social and
environmental dimensions of SD. This approach is most commonly
associated with the term National Sustainable Development Strategy. The
national strategy provides a long-term perspective of the key SD
challenges facing the country, and presents options for addressing
priority issue areas. The strategy is described as a catalyst for
change, and provides a framework to guide policy development and
decision making.

Cross-Sectoral SD strategies relating to specific dimensions of SD

A strategy that spans multiple sectors and covers one or two dimensions
of sustainable development, e.g., national environmental management
plans or poverty reduction strategy papers (PRSPs). PRSPs describe a
country’s macroeconomic, structural, and social policies in support of
growth and poverty reduction, as well as associated external financing
needs and major sources of financing.

Sectoral SD strategies
A strategy that incorporates economic, social and environmental
dimensions of SD, but that is focused on a specific sector. Rather than
create a single, national strategy for the government, responsibility
for sustainable development to individual government departments and
agencies (e.g., SD strategy for a ministry of transportation).

Guiding Principles of Sustainable Development Strategies

Primacy of Developing Full Human Potential;
Holistic Science and Appropriate Technology;
Cultural, Moral and Spiritual Sensitivity;
Self-Determination;
National Sovereignty
Gender Sensitivity;
Peace, Order and National Unity;
Social Justice, Inter-, Intra-Generational and
Spatial Equity;
Participatory Democracy;
Institutional Viability;
Viable, Sound and Broad-Based Economic Development;
Sustainable Population;
Ecological Soundness;
Bio-geographical Equity and Community- Based Resource Management; and
Global Cooperation.

Regional Integration

Regional integration refers to the process by which states within a
particular region increase their level of interaction with regard to
economic, security, political, and also social and cultural issues.
Regional integration arrangements are mainly the outcome of necessity
felt by nation-states to integrate their economies in order to achieve
rapid economic development, decrease conflict, and build mutual trusts
between the integrated units Closer integration of neighboring economies
is seen as a first step in creating a larger regional market for trade
and investment. This works as a spur to greater efficiency, productivity
gain and competitiveness, not just by lowering border barriers, but by
reducing other costs and risks of trade and investment. Bilateral and
sub-regional trading arrangements are advocated as development tools as
they encourage a shift towards greater market openness.

Such agreements can also reduce the risk of reversion towards
protectionism, locking in reforms already made and encouraging further
structural adjustment.

Functions of Regional Integration

the strengthening of trade integration in the region
the creation of an appropriate enabling environment for private
sector development
the development of infrastructure programmes in support of economic
growth and regional integration
the development of strong public sector institutions and good
governance;
the reduction of social exclusion and the development of an
inclusive civil society
contribution to peace and security in the region
the building of environment programmes at the regional level
the strengthening of the region’s interaction with other regions of
the world

Co-operatives and Development
Cooperatives are voluntary organizations that are democratically
controlled by members. Cooperatives are also patronized and controlled
by their owners and hence the term “owner user” and ‘owner controller’.
The concept of cooperatives has sometimes been misunderstood to the
extent that cooperatives have been associated with socialism, communism
as a result some governments have not allowed cooperatives to function
properly.

It’s vital to note that Cooperatives provide organizational framework
which enables the members of the community to handle tasks that enhance
production and productivity, marketing and value addition, employment
creation thus enhancing incomes and meeting social needs. For
cooperatives to succeed and also benefit the owners, the value of self
help must be fully embraced. However, More often than not, one hears a
question like what has a cooperative done to assist its members, and yet
the valid question would have been how the members have utilized the
cooperatives to enhance the socio economic status? Cooperatives differ
from other forms of businesses in that they are member centered as
contrasted to companies where capital is at the centre in order to earn
profits.

Contribution of Cooperatives to Development

Through their varied activities, Cooperatives are in many countries
significant social and economic actors in national economies, thus
making not only personal development a reality but, contributing to the
well being of the entire humanity at the national level.
Production and productivity enhancement: Cooperatives play an important
role in delivery of agricultural in puts so that they are easily
accessed by the producers. Such in puts are required by farmers to
increase productivity and produce good quality, increase farm income and
become more competitive. i.e. they form a link between farmers and input
dealers. Since they are organized, they can readily afford hiring of
agricultural extension services all aimed at production and productivity
improvement.

Infrastructure development: Through pooling resources members are able
to put up infrastructure for production, agro-processing and marketing
e.g. establishment of ginneries processing plants e.g. coffee hullers,
dairy products processing, storage facilities market information, agro
processing and value addition. Employment creation: where there is a
well functioning cooperative organization at least 2 people are employed
directly and many others indirectly through various trades facilitated
by a cooperative.
Investment opportunities: by investing shares into a well performing and
genuine cooperative returns are generated on shares and depending on how
one has economically patronized the organization, patronage bonus is
always paid

Financial intermediation: Availability of financial services helps
farmers in a number of ways. Farmers can be able to get in puts in time
through the available credit services. Secondly when farmers products
are bulked in the stores while awaiting better markets, farmers can
borrow from their own SACCOs to cater for their pressing needs as they
wait for marketing of their products.

Social services provision: These include among others health, housing,
utilities e.g. rain water harvesting, solar power scheme, and
transport-bodaboda.

Human resources development: All round training is always provided to
membership, staff and leaders of any genuine and well performing
cooperative organization

Social Impact of Co-operatives

By putting cooperative principles and values and ethos in practice, they
promote solidarity, tolerance and accountability; while as schools of
democracy, they promote the rights of each individual-women and men.
Cooperatives are socially conscious responding to the needs of their
members whether it is to provide literacy or technical training. Through
partnership building they are able to tackle social issues like HIV/AIDS
pandemic, environmental conservation among other things. Through their
varied activities, cooperatives are in many countries significant social
and economic actors in national economies, thus making not only personal
development a
reality but, contributing to the well being of the entire humanity at
the national level.

Natural Resources and Development

Natural resources are distinguished by their renewability and ownership
regimes. Renewable resources include forests, fisheries and wildlife.
Exhaustible resources include minerals that can only be replenished over
geologic time. Ownership regimes frequently dictate the rate at which
natural resources are degraded, with open-access regimes often leading
to the highest levels of degradation. The use of natural resources also
poses difficult social and distributive questions. Poverty can lead to
unsustainable use and environmental degradation, and threatens fragile
ecosystems. The poor suffer disproportionately from over-exploitation
and degradation of resources, yet they lack sufficient political or
economic representation.

Disputes over natural resources could therefore arise for a number of
reasons: Actions of one group may intentionally or unintentionally
impinge upon the ecological well-being of others. Those with greater
access to power also tend to control natural resource use and
distribution. As well, rapid environmental change, unequal distribution
of power, and changing consumption patterns exacerbate natural resource
scarcity. This can lead to fierce competition between groups impacting
on development negatively. Finally, people define natural resources in
ideological, social, and political terms. Thus, land, forests, and
waterways not only represent material resources that people struggle
over, but are often culturally and symbolically important.

Because natural resource conflicts are complex, pluralistic approaches
are more effective in identifying barriers to progress and peace
building strategies. Multi-stakeholder analysis, in particular, offers
researchers and policymakers an effective means of understanding the
different interests and power relations among those involved. Various
research methods can further enhance this approach. They include
participatory rural appraisal, participatory action research, gender
analysis, and the analysis of differences in class interests and power
relations. Greater opportunities for change emerge when local
stakeholders are involved in analyzing the causes and alternatives to
conflict.

However, conflict-resolution strategies have limitations. Collaborative
approaches such as conciliation, negotiation and mediation based on
western experiences with alternative dispute resolution (ADR) may not
work in conflicts involving natural resources.
ADR techniques require both cultural and legal conditions, such as a
willingness to publicly acknowledge conflict, the voluntary
participation of all relevant actors, and administrative and financial
support. Such conditions may prove elusive in many contexts in both
North and South. Moreover, ADR may lead to greater frustration if the
causes of conflict remain beyond the stakeholders’ understanding and
control. At the same time, Western traditions of conflict management
must be balanced with the study of local practices, insights, and
resources. Even more important, they note, conflict itself may be a
catalyst for positive social change in certain circumstances, but only
if violence can be avoided.