Analysis of impact of recent global crises on development

In the Guardian’s Poverty Matters blog Lawrence Haddad, director of the Institute of Development Studies (IDS) in the UK, writes What impact have the global crises had on development thinking? He summarizes some of the findings from an effort at IDS to assess how the financial, fuel, and food crisis of the past several years have shifted the assumptions underlying development.

Economic growth can be a force for good, but it does not have to be

When many of us were taught economics, growth was sometimes seen as sufficient for development and always necessary. [Our study] concluded that some kinds of growth are necessary, others irrelevant, and some harmful. Growth should be treated like technology: with the right governance, it can advance human wellbeing. The growth we want is economic development that is potent in reducing poverty, uses natural resources sustainably and emits significantly fewer greenhouse gases. Too much research on growth is focused on how we get it, rather than how we get the type we need. We get the growth we want by focusing on: creating the right initial conditions (such as low inequality); reducing entry barriers for new, small businesses; setting key prices at appropriate levels (as with carbon production); and adopting stronger transparency mechanisms to allow society to pressurise corporations.

Views on growth are surprisingly homogenous. This is probably because only one type of economics (neoclassical) is taught the world over. But monocultures, nature has taught us, are particularly vulnerable to events.

Wellbeing and resilience are not panaceas, but neither are they fads

The crisis impact work indicated that while material goods were very important to the human condition, so too were the relationships and the psychological dimensions of human existence. Wellbeing brings these dimensions together in an explicit way. The emerging concern with resilience of systems is perhaps a good thing to come out of the bad news of the crises. Given the new global uncertainties (climate, the emerging powers, and resource scarcities deriving from current lifestyles) we think these concepts of wellbeing and resilience are here to stay. But if used lazily to provide politically correct gloss to issues of measurement of progress and interdependence, they will become devalued.

Unfortunately the full study only seems to be available as a book.

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