Capability Approach

Objectives of Development

" Development can be seen as a process of expanding the real

freedoms that people enjoy" - sen development as freedom

The goal of development is the " promotion and expansion of valuable capabilities " - sen, Development as Capabilitiy Expansion

Sens puts," Economic growth cannot be sensibly treated as an end in itself. Development has to be more concerned with enhancing the lives we lead and freedom we enjoy."

People are the real wealth of nations. The basic purpose of development is to enlarge human freedoms. The process of development can expand human capabilities by expanding the choices to live full and creative lives. People are both the beneficiaries and the agents of the progress and change. This process must benefits all individual equitably and build on the participation of each of them.

* Capability

Capability is the freedom to achieve valuable beings and doings. In other words ; it is the freedom to achieve something that an individual values in his life. Example of basic capabilities: to survive, avoid or escape povery, recover from disasters.

* Functioning's

It is valuable beings and doings. These are the 'ends' and means of human life. They can be elementary escaping morbidity and mortality; nourishment; mobility.  They can be complex self-respect , participation in community life, ability to appear in public without shame. Functioning are the various things a person may value doing or being. Functioning are costitutive of a person being . 

Achieved Functioning: measurable, observable, comparable.  Example; literacy, life expectancy. 

* Capabilities and Functioning 

(1) Functioning are an achievement whereas capability is the ability to achieve. 

(2) Functioning's are observable whereas capabilities are unobservable.

(3) Example of functioning ; escaping from hunger, acquiring knowledge, self esteem etc and Example of capability; to survive, avoid or escape poverty, recover from disasters.

 (4) For functioning's Outcomes= what people can be functions whereas for capabilities = what people can do freedoms. 

* Development as freedom 

Consequently development requires to remove unfreedoms- poverty, tyranny, poor economic opportunities, social deprivation and unfreedoms constitutes famine, malnutrition, lack of access to health, inequality, denial of politicial liberty and civil rights. Development is an integrated process of expanding economic, political and social freedoms.

Bottom-up Approach

Bottom-up Development: A western influence over the traditional development practices in Nepal.
Concepts of Bottom-up Development
During 1970s , the concept of the 'Bottom-up' development emerged as an antithetical view to 'top-
bottom' development process, and thus claimed to reverse the directionality of the development decision making. Main focuses were given on community participation, conscientization, self-
reliance, freedom of choices and empowerment. Also it challenged the main feature of the 'top-bottom' paradigm, mainly ' planning arrogance ' of the experts and technocrats, and even questioned the paternalistic nature of the state in development process. Moreover, the overall idea of development shifted to 'people/community - centric' approach to which the Non Governmental Organizations (NGOs), on the other side, responded as care takers. Since then, the role of NGOs in giving life to 'bottom-up ' development has been hugely recognized and appreciate. The theoretical advantage of the NGOs over the state were one of the main reasons that helped in gaining tremendous popularity.
Major Argument:
(1) The Bottom-up Development has its root on the ' community participation' ; Community participation is the much followed essences of the traditional development practices in Nepal. Therefore, bottom-up development is not a new concept in Nepal.
(2) NGOs driven Bottom-up Development is the western influence over the traditional development practices in Nepal.
Evidences:
The traditional development process in Nepal was community based and followed the traditional voluntary practices. The manifestation of such voluntary works, for instance, were public wells ( kuwa), stone taps ( dhunge dhara), resting places ( Chautaas), and guest houses( pati- pauwas). In addition to this, the concept of 'dhikur' or 'dhikuri' , 'guthis' were also of major highlights.
The concept of 'dhikur' or 'dhikuri' is very old tradition of Nepal which is mainly popular among Thakali, Newar and Gurung communities. 'Dhikuti' is an association comprising of five to over 20 members belonging to the same ethnic group forming a sort of non formal credit cooperative.
Likewise, the concept of ' Guthi' , a voluntary organizations, manages socio-cultural activities of a community and mobilizes resources in a participatory approach. The Guthi system was very famous those days and is still in operation in some of the communities, especially Newar community.
'Parma' , one of the many other traditional practices, holds the intrinsic concept of volunteerism. It is still prevalent in some rural regions of the country. Under the Parma system each household, depending upon the size of the family, contribute voluntary labor to its community. The practice is prominent mostly in the agricultural sector, but it is even extended to other sectors as well.
Also, 'Badghar' and 'khula chaudary' became very effective traditional development practices in managing the water resources and irrigation system in Terai. Another important highlights of the traditional voluntary development is that almost all the schools and college's during 1950 to 1960 were built up with community support. Likewise, Aama Samuha( Mother's Group), which started with the Gurungs of Western Nepal, is also an example of traditional informal institutions.
But after the restoration of democracy in 1990, many NGOs came into existence as a part of the western influence. The spirit of traditional development process in terms of rendering 'self-service' and 'sustainability' in the community participation was hugely affected by the western concept of development. The tradition meaning of 'Swayemsewa' and its spirit, and philosophy of self services was changed over time with the beginning of the invasion of the western concept.
With this western intervention, the sustainability, volunteerism, self service and participatory notion of traditional development started to be understood as 'welfare ' done only by those who have ample time, money and capacity. The culture of dependency left no stone unturned to flourish its ambience over the communities and its people resulting to a decline of community aspirations and commitment over their own resources. Thus, the introduction of NGOs initiated a new traditiona of dependency in community.
Hence, it can be concluded that the overall programs referring to community development and welfare of people initiated by the traditional voluntary institutions were of participatory and sustainable in nature. The spirit of development was always kept alive in the name of serving people selflessly with the combined participation of community people and proper mobilization of community resources. This clearly suggests that 'bottom-up' development was never a new paradigm in Nepal. In addition, it also suggests that NGOs driven bottom-up development in Nepal is an ultimate western influence which has produced nothing except

Hence, it can be concluded that the overall programs referring to community development and welfare of people initiated by the traditional voluntary institutions were of participatory and sustainable in nature. The spirit of development was always kept alive in the name of serving people selflessly with the combined participation of community people and proper mobilization of community resources. This clearly suggests that 'bottom-up' development was never a new paradigm in Nepal. In addition, it also suggests that NGOs driven bottom-up development in Nepal is an ultimate western influence which has produced nothing except the culture of financial dependency to the western donors in the name of 'bottom-up' development.

Sustainable Development

Definition of Sustainable Development
The term sustainable development came into popular use after the 1987 report of the World Commission on Environment and Development popularly known as the Brundtland Report and the
Brundtland commission respectively. The report was largely a response to the growing international Environmental and Ecological lobby. It defined sustainable development as " Development that meets the needs of present generation without compromising the ability of future generations to meet their own needs".
According to Robert Repetto "The core idea of sustainability is that current decision should not impair the prospects for maintaining or improving future live standards .This implies that our economic system should be managed so we can live off the dividends of our resources. "
Objective of Sustainable Development
The Brundtland commission outlined a series of 'Strategic Imperatives ' or 'Critical Objectives ' inherent in the sustainable development.
1. Maintenance of high and stable levels of economic growth and employment.
2. Social progress that recognizes everyone's need of food, energy, water and sanitation.
3. Ensuring a sustainable level of population growth.
4. Conserving and enhancing the resource base; prudent use of natural resources.
5. Reorienting technology and managing risk.
6. Merging environment and economic in decision making.
Dimension (Pillars) of Sustainable Development
Sustainable Development consists of three dimension. They are:
1. Economic dimension
2. Environment dimension
3. Social dimension
1. Economic dimension
Economically sustainable system must be able to produce goods and services on a continuing basis, to maintain manageable size of government and external debt and to avoid sectoral imbalances. Economic sustainability which occurs when development, which moves toward social and environmental sustainability, is financially feasible .
2. Environmental dimension
Environmental dimension aims to improve human welfare through the protection of natural capital (e.g. land, air, water, minerals etc.). Initiatives and programs are defined environmentally sustainable when they ensure that the needs of the population are met without the risk of compromising the needs of future generations. Use of the environment as a waste sink on the basis that waste disposal rates should not exceed rates of managed or natural assimilative capacity of the ecosystem.
3. Social dimension
Social sustainability which requires that the cohension of society and its ability to work towards common goals be maintained. Social sustainability aims to preserve social capital by investing and creating services that constitute the framework of our society. Individual needs, such as those for health and well being, nutrition, shelter, education and cultural expression should be met.
Conclusion

The pattern of social and structured economic development which optimizes the economic and social benefits available in the present , without jeopardizing the likely potential for similar benefits in the future. The resources are managed so as to maintain production opportunities for the future . Social equity, the fulfill of basic health and education needs and participatory democracy are crucial elements of development as they are interrelated with sustainability. Sustainable Development doesnot mean that resources must not remain untouched, rather it means that their rates of uses be choosen so as not to jeopardize future generations . It doesnot imply constant technology, new technology can reduce on natural resources and yield increasing flow of resources and efficient use of available resources. It satisfy minimum condition of eco-system stability and resilence through time.

Rostow Stages of Growth Theory

Rostow's stages of growth theory was published by American economist Walt Whitman Rostow in 1960. Rostow's stages of growth theory is one of the major historical model of economic growth.
According to Rostows economic progress is linear and historical process. He attempted to explain development through stages of economic progress. He distinguishes five stages of economic growth.
1. Traditional society
2. Precondition for take off
3. Take-off
4. Drive to maturity
5. The Age of high mass assumption
1. Traditional society
Traditional society is characterized by subsistence economy- subistence agriculture, almost wholly a " primary" sector economy. It has non-existence of trade . It has limited technology and lack of individual economic mobility.The existence of barter system of exchange in this system. People exchange goods for goods, there is no money for their own consumption. This is where society generally beigns before progressing towards the next stages of growth.There is no centralized nation or poltitical system .Wars, famines and epidemics like plague cause initially expanding populations to halt or shrinks, limiting the single greatest factor of production; manpower.
Some historical evidences.
* Pre- Newtonian era in England and Europe during 14th and 15th century.
* The stage existed in China during before the dynasties of China.
* The stages was relevant during and before mediaeval period of Europe.
The stage generally existed when there were Aristocracts and existence of feudal lords. In this stage investment share never exceeds 5% of total economic production. People are interested in spritual and religious pursuits only.
2. Precondition for take off
In the second stage of economic growth the economy undergoes a process of change for building up of condition for growth and take off. Rostow said that these changes in society and the economy had to be of fundamental nature in the social political structure and production techniques. The precondition for substained growth were created slowly in Britain and Western Europe from the beginning of the 16th centuries when the medieval age ended and modern age began. Precondition for take off encouraged 4 forces: Renaissance, New Monarchy,New world and new religion or reformation. There are three important dimension to this transition.
1. Firstly the shit from an agragian to an industrial or manufacturing society begins, albert slowly.
2. Secondly, trade and other commerical activities of the nation broaden the market's reach not only to neighbouring areas but also to far-flung regions, creating international markets.
3. Lastly, the surplus attained should not be wasted on the conspicuous consumption of the land owners or the state , but should be spent on the development of industries, infrastructure and thereby prepare for self-sustained growth of the economy later on.
Furthermore, agriculture becomes commercialized and mechanized via technology advancements; shift increasingly towards cash or export orinted crops and there is a growth of agricultural entrepreneurship.The strategic factor is that investment level should be above 5% of the national income.The dogmatic views are replaced by new ideas. Technological development can be seen in this stages due to which there is increased capital formation. In this stage individual social mobility begins. Widespread and enhanced investment in changes to the physical environment to expand production.
3. Take-off stage
Take-off stage is characterized by dynamic economic growth. Take off is the great watershed in the life of a society 'growth becomes normal condition'. The main feature of this stage is rapid , self- sustained growth. Take-off occurs when sector led growth becomes common and society is driven more by economic process than traditions. Value and interest of the traditional society makes decisive break through. Take-off period is supposed to be of 2-3 decade's. Per Rostow there are 3 main requirements for take-off:
* The rate of productive investment should rise from approximately 5% to over 10% of national income.
* The development of one or more substantial manufacturing sectors; with a high rate of growth.
* Existence of political, social and institutional frameworks to exploit the impulse to expansion in modernization.
Industrialisation becomes crucial phenomenon as it helps to prepare the basic structures for structural changes on massive scale. Take-off requires a large and sufficient amount of loanable funds for expansions of the industrial sector which generally come from two sectors:
* Shift in income flows by way of taxation, implementation of land reforms and various other fiscal measures.
* Re-investments of profit earned from foreign trade.
The ability of a country to make it through this stage depend on the following main factors.
* Introduction of new productive technologies and techniques in these sectors.
* Existence of enlarged, sustained Society increasing capacity to generate or earn enough capital to complete the take-off transition.
An example of a country in the take-off stage of development is Equatoria Guinea. It has the largest increases in GDP growth since 1980 and the rate of productive investment has risen from 5% to over 10% of income or product.
4. Drive to maturity
After take-off, there follows a long interval of substained growth known as the stage of drive to maturity. Rostow defines it "as the period when a society has effectively applied the range of modern technology to the bulk of its resources. Some 10-20% of the national income is steadily invested permitting output regularly to outstrip the increase in populations. The make up of the economy changes unceasingly as technique improves, new industries accelerate , older industries level off. The economy finds it place in the international economy;goods formely imported are producted at home; new requirement develop and new export commodities to match them. On comparing the dates of take-off and drive to maturity in the approximately 60 years.
The structural changes in the society during this stage are in three ways:
* work forces composition in agriculture's shifts from 75% of the working population to 20% . The workers acquire greater skill and their wages increase in real terms.
* the character of leadership changes significantly in the industries and a high degree of professionalism is introduced .
* environmental and health cost of industrialization is recognised and policy are thus made.
During this stage a country has to decide whether the industrial power and technology it has generated is to be used for the welfare of its people or to gain supremacy over others, or the world in too. A prime example of a country in the drive to maturity stage in South Africa. It is developing a world-class available energy, and sophisticated telecommunications facilities. Additionally, the commercial farm sector shed 140,000 jobs, a decline of roughly 20% in the eleven year period from 1988 tp 1998.
5. Age of high mass assumption
It refers to the period of the contempory comfort afforded by many western nations, where in consumers concentrate on durable goods and hardly remember the subsistence concerns of previous stage. In the age of high mass assumption, a society is able to choose between concentrating on military and security issues , on equality and welfare issues or on developing great luxuries for its upper class. There is a desire to develop an egalitarian society and measures are taken to reach this goal. Its offers great security's, leisure and comfort to working class. Attempt to enlarge its power and influence in international sphere. United States was first to reach this stage in 1920, followed by great Great Britain in 1930 and Japan in Western European nation in 1950s.
Criticisms

1. It is based towards western model of modernization.
2. The stages are not identifiable properly as the condition of the take-off and pre take-off stages are very similar and aslo overlap.
3. Rostow model doesnot apply to the Asian and the African countries as events in these countries are not justified in any stage of his model.

Green Revolution

Introduction of Green Revolution
The green revolution or third agricultural revolution is a set of research and technology transfer initiatives occurring between 1950 and the late 1960s , that increased agricultural production
worldwide particularly in the developing world. The initiatives resulted in the adoptation of new technologies including high yielding varieties of cereals, especially dwarf wheat and rices, in association with chemical fertilizer and agro-chemicals, controlled irritation and mechanization. All of these together were seen as package of practices to supersed traditional technology and adopted as a whole.
History of Green Revolution
The beginning of the Green Revolution are often attributed to Norman Borlaug, an american scientists interest in Agriculture. In the 1940s, he began conducting research in Mexico and developed new disease resistance high yield varieties of wheat. By combining Borlaug's wheat varieties with new mechanized agricultural technologies. Mexico was able to produce more wheat than was needed by its own citizen, leading to its becoming an exporter of wheat by the 1960s. Prior to the use of these varieties, the country was importing almost half of its wheat supply.
Due to success of the Green Revolution in Mexico, it's technologies spread worlwide in the 1950s and 1960s. The united states for instance, imported about half of its wheat in the 1940s but after using Green Revolution technologies, it became self-sufficient in the 1950s and became an exporter by the 1960s.
The term "Green Revolution" was first used in a speech on 8 March 1968 by the administrator of the U.S. Agency for International Development (USAID), William S. Gaud, who noted the spread of the new technologies: "These and other developments in the field of agriculture contain the makings of a new revolution. It is not a violent Red Revolution like that of the Soviets, nor is it a White Revolution like that of the Shah of Iran. I call it the Green Revolution."
Countries all over the world in turn benefited from the Green Revolution work conducted by Borlaug and this research institutions . India for example was on the brink of mass famine in the early 1960s because of its rapidly growing population. Borlaug and the Ford Foundation then implemented research there and they developed a new variety of rice, IR8 that produced more gain per plant when grown with irrigation and fertilizer. Today , India is one of the world's leading rice producers and IR8 rice usuage spread throughout Asia in the decades following the rices development in India.
Plant technologies of the Green Revolution
The crops developed during the Green Revolution were high yield varieties- meaning they were domesticated plants bred specifically to respond to fertilizer and produce an increased amount of grain per acre planted. The two kinds of technologies were used in the Green Revolution and aim at cultivation and breeding area respectively. The technologies in cultivation are targeted at providing excellent growing condition which include modern irrigation project's, pesticides and synthetic nitrogen fertilizer. Breeding technology aimed at improving crop varieties developed through the conventional, science-based methods available at the time.
Impact of Green Revolution
Since fertilizer are largely what made the Green Revolution possible, they forever changed
agricultural practices because the high yield varieties developed during this time cannot grow successfully without the help of fertilizer.
Irrigation also played a large role in the Green Revolution and this forever changed the areas where various crops can be grown. For instance before the Green Revolution, agriculture was severely limited to areas with a significant amount of rainfall, but by using irrigation, water can be stored and sent to drier areas, putting more land into agricultural production - thus increasing nationwide crop yields.
In addition, the development of high yield varieties meant that only a few species of stay, rice started being growth. In India for example there were about 30,000 rice varieties prior to the Green Revolution, today there are around ten - all the most productive types. By having this increased crop homogeneity though the types were more prone to disease and pests because there were not enough varieties to fight them off. In order to protect these few varieties then, pesticides use grew as well.
Finally, the use of Green Revolution technologies exponentially increased the amount of food production worldwide. Places like India and China that once feared famine have not experienced it since implementing the use of IR8 rice and other food varieties.
Criticisms of the Green Revolution
Along with the benefits gained from the Green Revolution, there have been several criticisms. The first is that the increased of food production has led to overpopulation world-wide.
The second major criticisms is that places like Africa have not significantly benefited from the Green Revolution. The major problems surrounding the use of these technologies here through are a lack of infrastructure, governmental corruption and insecurity in nations.

Despite these criticisms though , the Green Revolution has forever changed the way agriculture is conducted worldwide, benefiting the people of many nations in need of increased food production.

Industrialization

Introduction of Industrialization
Industrialization is the period of social and economic change that transforms a human group from
Agrarian society into an Industrial society involving the extensive reorganization of economy for the purpose of manufacturing. Industy promotes secondary as well as tertiary production as employment. It sometimes also refers to primary production related activities too. So,far 'industry' refers to a wide range of activities, like farming (primary), manufacturing (secondary) and services/tourism(tertiary) production system , it encompasses production at any scale, from the local (cottage) to global (multinational/ transnational) production system. Manufacturing, in real sense mean to 'making by hand'; however, with the course of industrialization, it is understood as mechanical production in factories, mills, and other industrial plants.
History of Industrialization
The first transformation from an agricultural to an industrial economy is known as the industrial revolution and took place from the mid nineteen to early nineteenth century in certain areas in Europe and North America; starting in Great Britain, followed by Belgium Germany and France. The characteristics of this early industrialization were technologically progress, a shift from Rural work to Industrial labour, financial investment in new Industrial structure and early development in class consciousness and related to this. Later commentators have called this the first Industrial Revolution.
"Second Industrial Revolution " labels the later changes that came about in the mid nineteenth century after the refinement of the steam engine , harnessing of electricity, invention of internal combustion engine and construction of canals, railway and electric power lines. Invention of the Assembly line gave this phase a boost. Coal mines, steel works and textile factories replaced home as the place of work. By the end of the twenty century, East Asia had become one of the most recently industrialized.
Consequences of Industrialization
1. Environment Consequences
The negative consequences of industrialization are sometimes more apparent in developing countries than in countries with established industrial structure where the social dislocation and environmental problems that often accompany development long ago. In all countries whatever their level of development, there are long term problems associated with industry. Environmental safeguards may be overlooked leading to serious problem of air land and water pollution. One of the most 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 events.
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 effect of industrial waste, thermal pollution from power stations, atmospheric fallout containing high level of lead, oil spilled from ships, and radioactive material from nuclear power station.
2. Social Consequences

The production occuring on a massive scale causes mass migration of people to cities. Differentiation ( in division of labor, class or government) has a significant impact on social relationships. Family roles changed due to the changes occuring and varied among classes. Wealth grew dramatically during the early nineteenth century but the middle and upper class are benefited the most. The living condition in the factory towns often were deplorable overcrowded.

Human Development Approach

Human Development Approach concerns regarding widening the range of choices of people. It enhancing capabilites to shape the lives of people as they wish and enabiling them to live with
dignity. Human Development is reflected as ability of a person:
* to lead a long and healthy life.
* to obtain education and further knowledge.
* to have a control over key resources .
* to engage in productive employment of his or her choice.
* to participate effectively in the activities of community and the state.
Emphasis of human development approach
* Personal security
* Sustainability
* Environmental preservation
* Social Integration
* Guaranteed human right.
History of Human Development approach
The human development approach, developed by the economist Mahbub Ul Haq, is anchored in Amartya Sen’s work on human capabilities, often framed in terms of whether people are able to “be” and “do” desirable things in life .
Human Development Approach arose in part as a result of growing criticisms to the leading development approach of the 1980s, which persumed a close link between national economic growth and expansion of individual human choices. Human cost of structural adjustments programmes became more apparent. Social ills even in case of strong and consistent economic growth. Wave of democratization in the early 90's raised hopes for people centred models.
Amartya Sen - Human development, as an approach, is concerned with what I take to be the basic development idea: namely, advancing the richness of human life, rather than the richness of the economy in which human beings live, which is only a part of it.
Common feature of Human Development approach
1) Human Development is analyzed and understood in terms of people.
2) Success of development policies becomes the betterment of people's lives.
3) Human development approach's two sides:
a) formation of human capabilities - such as improved health, knowledge and skills.
b) make people to use their acquired capabilities - for employment, productive activities, political affairs or leisure.
c) people are regarded as the ends.
d) political, cultural, social factors are given as much attention as the economic factors.
e) people are not regarded as mere instruments for producing commodities.
Issues of Human Development
* Social progess - greater access to knowledge, better nutrition and health services.
* Economics - importance of economic growth as a means to reduce inequality and improve levels of human development.
* Efficiency - in terms of resources use and availability. It is pro-growth and productivity raising.
* Equity - in terms of economic growth and other human development parameters.
* Participation and freedom - particularly empowerments, democratic governance, gender equality, civil and political rights and cultural liberity particularly for the marginalized groups defined by sex, age, religion, ethnicity , physical / mental parameters.
* Sustainability - for future generations in ecological, economic and social terms.
* Human security - security in daily live against such chronic threats as hunger and abrut disruptions including famine, conflict etc.
Human Development as Holistic concept
It covers all aspects of development - whether economic growth or international trade, budget deficits or fiscal policy, saving or investment or technology, basic social services or safety nets for poor. No aspect of development model fails outside its scope. All aspects of life - economic, political or cultural - are viewed from this perspective.
Aspects of Human Development

* Development must put people at the centre of its concerns.
* The purpose of development is to enlarge all human choices, not just income.
* Human Development has essential pillars; equality, sustainability, productivity and empowerment.

Rural Development

Concept of Rural Development
According to Robert Chambers, Rural Development is a strategy to enable a specific group of people.
It involves helping the poorest among those who seek a livehood in the rural areas to demand and control more of the benefits of rural development. This group includes small scale farmers, tenants and landless.
According to Singh (1999), the term rural development includes over all development of rural areas with a view to improve the quality of life of rural people.
According to World Bank(1975), Rural Development is a strategy designed to improve the socio-economic life of rural poor; as such it involves extending the benefits of development to poorest in rural areas example; small farmers, tenants, landless and other disadvantages group.
The goal of Rural Development cannot be achieved without available infrastructural development, commercialization of agriculture, proper utilization and mobilization of resources inclusive development. Rural Development seeks to alleviates poverty, mass utilization of resources, commercialization of agriculture, food security, creating opportunities, infrastructural development of rural community and modernization of overall society.
Conditions Necessary for Rural Development
1) Technological change and Innovation
* Need to do change in agricultural production
a ) Mechanized agriculture to replace human labor, mechanization would increase the Agricultural productivity
b) Inputs for Green Revolution
* Need to promote use of hybrid seeds, water control(irrigation ), chemicals ( fertilizer, pesticides, insecticides) to increase production.
2) Appropriate Institutional and Government policies
* Government policies should be conductive to small farmers, tenants and landless agricultural laborers.
* Often large landowners have better access to inputs and low interest government loans while small holders turn to money lenders.
* Must create incentives for small farmers. This often means less government intervention.
3) Land reform
* Farm structure and land tenure patterns need to be adapted to increasing food production and promoting benefits of Agrarian society.
* Highly unequal structure of land ownership probably single most important determinant in explaining inequitable distribution of income.
4. Supportive policies
* Need government policies that provides incentives and opportunities and access to needed inputs.
* Must be corresponding changes in rural institutions that control production(bank, money lenders)
* Must be corresponding changes in supporting government services( credit,education,rural trasport and feeder roads)
Objectives of Rural Development
The main objective of Rural Development is improving living standards of rural people by utilizing the easily available natural and human resources.
The other objective of rural development programmer are as follow:
1) Development of agriculture and allied activities.
2) Development of village and cottage industries and handicrafts.
3) Development of socio-economic infrastructure which include setting up of rural banks, co-operative, schools etc .
4) Development of community services and facilities ie; drinking water, electricity, rural roads , health services etc.
5) Development of human resources mobilization.
Importance of Rural Development
1) Improvement in the quality of life of rural people is the important agenda of rural development programme.
2) A country where the number of people living in rural areas , rural development programme is necessary aspect.
3) Rural Development implies both the economic betterment of people as well as greater social transformation.
4) The basic objective of all rural development has been the welfare of millions.
5) With time and experience, it is realized that accelerated and meaningful development can be achieved only if people of the grass root are involved " people's participation " has became keyword in rural development programme.
Rural Development in Nepal
Government of Nepal has tried to adopt rural development approach for the development of rural areas after 1950s by the integrated development program. First rural development program in Nepal was Tribhuvan Village Development Program which mainly focused on the development of agriculture, road, drinking, water, education and health. Different rural development program like rural infrastructure work, rural infrastructure development program, agriculture road program, rural access program, district road support program, poverty alleviation project, Remote and specific area development program, periodic district development plan have been implemented during and after ninth five year plan.

Rural development in Nepal is a complex phenomenon involving an interaction of economic, social, political and cultural factors. The concept of rural development is a process of development and change to improve rural social life entirely. It is linked to infrastructural development, commercialization of agriculture, proper utilization and mobilization of resources, food security, creating opportunities, inclusive social development in the rural community and modernization of overall society. However, achievements of rural development efforts in Nepal are not satisfactory because of imposed development, unstable political situation, absence of people's participation, lack of research and political commitment.

Right Based Approach

Definition of Right Based Approach(RBA)
A right based approach is framework that integrates the norms, principles, standards and goals of the international human rights system into the plants and process of development. It is characterized by
methods and activities that link the human rights system and its inherent notion of power and struggle with development. Right based approach is able to recognize poverty as injustice and include marginalization, discrimination and exploitation as central cause of poverty. In right based approach, poverty is never simply the fault of the individual, nor can its solution be purely personal. A central dynamic of right based approach is thus about identifying root cause of poverty, empowering right-holders to claim their rights and enabling duty bearers to meet their obligation.
Features of Right Based Approach(RBA)
The acknowledgement that severe poverty is a human rights violations and that poverty in itself is a root cause of a number of human rights violations. Looking at poverty through a lens of justice calls attention to fact that poverty is something that often is imposed on people as an active act of discrimination and marginalization. Its also calls attention to what is done. Every human being is a right-holders and that every human rights has a corresponding duty bearers.
A Right Holder
A right holder is entitled to rights. It is entitled to claim rights. It is entitled to hold the duty bearers accountable. It has a responsibility to respect the rights of others. Consequently, those who have the obligation to respect, protect and fulfill the rights of the right-holders are duty-bearers. The overall responsibility for meeting human rights obligation meets with the state. This responsibility includes all the oragans of the state such as parliament, ministries, local authorities, judges and justice authorities, police, teachers or extension workers. All these are legal duty-bearers.
Highlight of Right Based Approach (RBA)
RBA offers a framework to address the problem of the poorest and most vulnerable human beings. RBA has considerable potential to achieve positive change in people's lives due to its focus on injustice, inequality, discrimination, exploitation and denial. RBA offers better focus on root cause of poverty by stressing the accountability of duty-bearers. RBA offers a dynamic view on poverty by including a focus on power balances and politics through the inclusion of the full range of inalienable and indivisible rights. RBA offers legitimacy through a common and internationally recognized framework for development. RBA understands poverty not only as a personal circumstances, but places it within the context of the community, the government and international society. RBA recognizes and assists states in fulfilling their international obligations towards their citizen without discrimination. RBA enhances empowerment by building accountable relations between state structure, social groups and the individual.
Principles of Right Based Approach
(1) Participation
Everyone has the right to participate in decisions which affect their human rights. Participation must be active, free and meaningful, and give attention to issues of accessibility, including access to information in a form and a language which can be understood.
In relation to the care of older people this means that individuals should participate in all decisions about the care and support they are receiving. This could range from participation in the commissioning and procurement of social care services by local authorities to participating in daily decisions about the care and support being received.
There is a lot of guidance about how care providers can involve people who use care services and their families and friends, such as the Care Commission’s guidance for care service providers, ‘Involving people who use care services and their families, friends and supporters.
(2) Accountability
Accountability requires effective monitoring of compliance with human rights standards and achievement of human rights goals, as well as effective remedies for human rights breaches. For accountability to be effective, there must be appropriate laws, policies, institutions, administrative procedures and mechanisms of redress in order to secure human rights.
Effective monitoring of compliance and achievement of human rights goals also requires development and use of appropriate human rights indicators.
(3) Non-discrimination and equality
A human rights based approach means that all forms of discrimination in the realisation of rights must be prohibited, prevented and eliminated. It also means that priority should be given to people in the most marginalised or vulnerable situations who face the biggest barriers to realising their rights. Giving priority and suport, principally and in practice, to the most marginalized and vulnerable society and to the groups most affected by rights, violation and abuses regardless of gender, age, ethnicity, religion, health status, etc.
There are times when older people receiving care and support services can be amongst some of the most vulnerable and marginalised people in our society - a human rights based approach means we must pay particular attention to the protection and realisation of their rights. Sometimes, because of their age, older people are discriminated against in access to services or in opportunities to express their views. Older people also have different identities based on their gender, ethnicity, religion and many other grounds. Each of these identities should be respected when receiving care and support services.
(4) Empowerment
Everyone is entitled to claim and exercise their rights and freedoms. Individuals and communities need to be able to understand their rights, and to participate fully in the development of policy and practices which affect their lives.
This means that everyone, including older people, should understand what their rights are and how they can claim these rights. Achieving this may require the provision of appropriate advocacy support.
(5) Legality
A human rights based approach requires that the law recognises human rights and freedoms as legally enforceable entitlements, andthe law itself is consistent with human rights principles.
Care providers and all other accountable bodies must be sure that their practices and procedures are grounded in human rights law. Under the law they must not breach the human rights of anyone.
(6) Commission work

A human rights based approach for ageing and health. Human rights based approach is vital to adress the challenges in indigenous communities. Submission to Inquiry into Slavery, Slavery-like conditions and People Trafficking.

Nepalese Agrarian System

Nepal is an agricultural country having 74 percent people directly engaged in farming. Farming is subsistent in nature and crop is mostly integrated with livestock. Since the formulation of the Fifth
Five-Year Plan (1975–80), agriculture has been the highest priority because economic growth was dependent on both increasing the productivity of existing crops and diversifying the agricultural base for use as industrial inputs.
Nepal is richly endowed with agro-biodiversity. Rice, maize, millet, wheat, barley and buckwheat are the major staple food crops. Similarly, oilseeds, potato, tobacco, sugarcane, jute and cotton are the important cash crops whereas lentil, gram, pigeon pea, blackgram, horsegram and soyben are the important pulse crops. Nepal is also famous for orthodox tea, large cardamom, turmeric and zinger too. Most Nepalese farmers grow diversified crops in order to hedge against erratic and uncertain weather and other unfavourable agronomic conditions.
Livestock is one of the important sources of cash income of the farm households. Livestock products which are sold for cash. The cash needs of the farm families are mainly met through the sale of milk, yoghurt, cheese, ghee, Chhurpi, meat, egg and live animals and poultry. Generally, farm families in mountains raise Yak or Chauri (Himalayan breed of cow) and sheep, in hills cow, sheep, goat and rural poultry and in Terai buffalo, cow, goat and poultry. Poultry husbandry is emerging enterprise in Terai and hills. Human and animal labours are major sources of farm power.
In addition, Nepal grows a number of fruit and vegetable crops. Some important ones are Apple, peach, pear, plum, walnut, orange, lime, lemon, mango, lichi, banana, pineapple, papaya, cucumber, lady’s finger, brinjal, pumpkin and several leafy vegetables.
Fresh water fish culture is another emerging enterprise in Terai whereas rainbow trout in the hills and in the lower mountains.
On April 25th 2015, a 7.8 magnitude earthquake struck Nepal, with a series of strong aftershocks including one of 6.7 magnitude, and triggering avalanches in the mountains. It was the worst earthquake to hit Nepal in 80 years. Estimates indicated more than 8000 people died and many more were injured. On May 12th 2015 , a second, 7.3 magnitude earthquake struck Nepal, again with strong aftershocks. The United Nations estimated that approximately eight million people had been affected by the earthquakes. Destruction of buildings, roads and other infrastructure will make re-building a long-term challenge. In addition, the seeds, food grains, agricultural tools, implements and machineries were also buried into the debris of the housed which has severely disrupted the food production system and livelihoods in the 40 most affected districts.

About 40% national income comes from agriculture . People's living standards improves by its development. Its development increases the national income. The agriculture sector has provided most employment in Nepal. Agriculture has been the primary means of livelihood for the Nepalese people. Most of the raw materials needed for industrt have come from the agriculture. So development of industries and trades are also dependent on agriculture. This is also the main source of foodstuffs. Not only the human beings but animals and poultries also get their foods from agriculture. 50% of export products come from agriculture . More than 40% of the total national production is generated by agriculture.

Agrarian Society and Agrarian Reform

An agrarian society is one relying for its subsistence on the cultivation of crops through the use of plows and draft. An agrarian system is the way of life of common peasant farmer around world. For
these farmers cultivation is a family affairs and they tile their farms as his forefathers. They cannot produce much more than meeting the livehood of their . There is little hope for the hundreds of millions who work in their feild with almost bare hands. Majority of rural population is engaged in Traditional farming. This type of farming is based on factors of production that have been used by farmer for many generations: the future possibilities are very limited.
An agrarian society is built on maintaining itself through farming and the production of food. An agrarian society focuses its economy primarily on agriculture and the cultivation of large fields. How much the nation’s population depends on agriculture economically also define an agrarian society. It’s not that in this society all people engage themselves in agricultural practices, but majorly it is practiced and stressed upon while other means of livelihood exist too.
Agrarian Reform
Agrarian reform is closely related to redistribution of land but also provisions of roads, rural , electricity, rural credit , extension services. Traditional agrarian system of farming needs to apply the most recent knowledge, technology produces an abundance of food even if the land is poor. Agrarian reform need for commercial farming practices if we want to change the face of rural people. Agrarian reform can include credit measures, training, extension, land consolidation etc. The World Bank evaluates agrarian reform using 5 dimensions:
(1) stocks and market liberalization
(2) land reform (including the development of land markets)
(3) agro-processing and input supply channels
(4) urban finance
(5) market institutions.
Procedure for Agricultural transformation
(a) Diversified or mixed farming
(b) Divergence to specialization: modern commerical farming
(1) Diversified or mixed farming
The diversified or mixed farming means farming of animals, crops cultivation, agroforestry etc are good together in very planned manner. The farming of crop can be both subsistence and commerical in nature. Mixed farming is common worldwide, in spite of a tendency in agribusiness, research and teaching towards specialized forms of farming. In this stage staple crop no longer dominates and new crops such as fruits, vegetables can be introduced in the slack season to take advantage of both idle land and family labour. Use of better seeds, fertilizer, and irrigation to yields staple crops like wheat, maize and rice can free part of the land for cash crop cultivation. It stablizes the income of the farmer because the farner is not depending solely on one activity. Should one activity fail ( due to low price or pests or disease) , the farmer can still get income from the other activities. Diversified farming can also minimize the impact of staple crops failure and provide a security of income previously unavailable.
(2) Divergence to Specialization: modern commerical farming
It is the most prevalent types of farming in advanced industrial nations. It involved in response to and parallel with development. Commercial farming is practiced for the purpose of making a profit. It involves the rearing of animals and or growing of crops on a large scale to increase production and profits. Technology and machinery are used with a few workers to operate them. This type of farming often involves monoculture, the growing of a single type of cash crop such as flowers or coffee. General rise in living standard, biological and technological progress, and the expansion of national and international markets have provided the main impetus for its emergence and growth. Pure commerical profit becomes the criterion of success, and maximum per hectare yields derived from synthetic ( irrigation, fertilizer, pesticides, hybrid seeds etc) and natural resources became the object of farm activity.
Condition Necessary for Agricultural transformation
(a) take full advantage of new and better opportunities.
(b) the decision-making process must remain on the farm.
(c) government must create a friendly environment for change.
(d) policy-makers must base their decision and policies on the behavior of farmers.
(e) note that the subsistence farmer may react differently from commerical farmers to economic stimulants.
Importance of Agriculture for Development

* Security for food.
* Source for the demand of Industrial products.
* Source of foreign exchange earnings.
* Employment opportunities for rural people.
* Improving rural welfare.
* The creation and expansion of the infrastructure.
* The lions share in national income.
* This increase the purchasing power of developing country consumers who typically spend more than two thirds of their income on food.
* Lower food prices improve nutrition, allowing an increase in labor productivity in every sector.
* Lower agricultural prices allow cost reductions to industries that use agricultural inputs.
* It increases demand for the output of other sectors.
* It demand for inputs to agricultural production such as fertilizer, transportation, commerical services, construction and technological inputs and demand for consumer goods and services, as a rural standards of living increases.

Dependency Theory

Meaning of Dependency
According to the dependency economists, the whole world is divided into two sets of countries DCs
and LDCs. The former are in the centre( Western Europe, Britain and united states) and the latter are in the periphery(backward countries of Asia,Africa and Latin America). According to Frank, DCs are metropolis and LDCs are satellite countries. There are unequal centre periphery relationships whereby LDCs are dependent on DCs in trade, investment and technology etc. This dependency results in underdevelopment of the periphery because the centre is dominated by the powerful capitalist countries that exploit the former for their benefit.
According to Santos," dependency is a situation in which the economy of certain countries is conditioned by the development and expansions of another economy to which the former is subjected."
A dependent relatioship between two or more economies is one when some countries (the dominant ones) can expand and be self sustaining while the others ( the dependents) can do this only as reflection of that expansion, which can have either a positive or a negative effect on their immediate development.
Explanation of The Theory
(1) Dependency: A historical International Process
Dependency theorists hold the present economic and socio-political conditions prevailing in the periphery are the result of a historical international process. Today's developed countries and less developed countries are the outcome of the capitalist system. Development at the centre occurs at the cost of underdevelopment at the periphery. The surplus generated at the periphery is successively drawn off the centre, impoverishing the periphery, increasing misery and poverty thereof.
(2) Foreign Capital
The LDCs are heavily dependent on the centre for foreign capital. Foreign capital leads to external orientation of LDCs by exporting primary commodities, importing manufactured goods and making them dependent for industrialization of other economies. Foreign investors exploit LDCs by insisting on the choice of project's, making decisions on pricing, supply of equipment etc. In fact, they impose development pattern which is not compatible to peripherals countries. Foreign investment and aid signify dependence and as a means of exploitation of the periphery by the centre.
(3) Technological Dependence
The peripheral countries use excessively capital-intensive technologies imported from the developed countries of the centre. The technologies are inappropriate to the production and consumption needs of LDCs and are sold by the MNCs of developed countries. The technological dependence of the LDCs arises because of the urgency of importing technologies as they cannot innovate them. Capital intensive technologies have limited labor absorption capacity and thus add to unemployment, wage differential, income inequality and social tension in the LDCs.
(4) Trade and unequal exchange
Santos give the following reasons for BoP deficit. DCs keep the prices of their exports to LDCs very high and that their imports from LDCs very low. Foreign capital from DCs control major sectors of LCDs which result that there are large outflows of profit, interest and principal. Since wages in LDCs is low, cost of production of the commodity is also low, so is its price. On the other hand, wages being high in DCs, the cost of production is high, so high price, thus unequal terms of trade between the two.
(5) Dualism
The notion is explicit in the views of the dependency theorists. Internationally, the countries are divided into DC and LCDs or metropolitan and satellite or centre and periphery or advanced imported capitalist system and indigenous pre-capitalist system. The interrelationships between the two dualistic system are such that the developed region with the result that there is development of underdevelopment in the LDCs.
Critical Appraisals of Dependency Theory

(1) Dependency Theory is not a complete theory.
(2) Dependency Theory doesnot explain development and underdevelopment.
(3) Dependency Theory ignores production relation.
(4) In this theory, Surplus product is not explained fully.
(5) Dependency Theory ignores the role of internal class structure.
(6)In this theory, capitalist is not always harmful.
(7) Weak empirically.

Difference between Dependency and World System Theory

The differences between the world-systems theory and the dependency theory are:
(a) The unit of analysis in the dependency theory is the nation-state level, for the world-system it is
the world itself.
(b) Concerning methodology, the dependency school posits that the structural-historical model is that of the boom and bust of nation states, the world systems approach maintains the historical dynamics of world-systems in its cyclical rhythms and secular trends.
(c) The theoretical structure for the dependency theory is bimodal, consisting of the core and the periphery; according to the world systems theory the structure is trimodal and is comprised of the core, the semiperiphery and the periphery.
(d) In terms of the direction of development, the dependency school believes that the process is generally harmful; however, in a world systems scenario, there is the possibility for upward and downward mobility in the world economy.

e) The research focus of dependency theorists concentrates on the periphery; while world systems theorists focus on the periphery as well as on the core, the semiperiphery and the periphery.

World System Theory

Background
Immanuel Wallestein has developed the best-known version of world-systems analysis, beginning in the 1970s. Wallerstein traces the rise of the capitalist world-economy from the "long" 16th century (c.
1450–1640). The rise of capitalism, in his view, was an accidental outcome of the protracted crisis of feudalism (c. 1290–1450). Europe (the West) used its advantages and gained control over most of the world economy and presided over the development and spread of industrialization and capitalist economy, indirectly resulting in unequal development.
Meaning of World System Theory
World system theory is a multidisciplinary, macroscale approach to world history and social change which emphasizes the world system(and not nation states) as the primary (but not exclusive ) unit of social analysis. World system theory has been examined by many political theorists and sociologist to explain the reason for the rise and fall of nations, income inequality, social unrest and imperialism.
For Wallestein , world system analysis is a mode of analysis that aims to transcend the structures knowledge inherited from the nineteenth century, the divisions within the social sciences, and those between the social sciences and history.
World system theory like dependency theory, suggests that wealthy countries benefits from other countries and exploit those countries citizen. In contrast to dependency theory, however, this model recognizes the minimal benefits that are enjoyed by low status countries in the world system. The theory originated by the sociologist Emmanuel Wallestein, who suggests that the way a country is integrated into the capitalist world system determines how economic development takes place in that country.
Characteristics of World System Theory
World system theory is a macro-scale approach to analyzing the world history of the mankind and social changes in different countries. The definition of the theory refers to the divisions of labor, be it inter-regionally or transnationally. According to Wallestein, the world economic system is divided into a hierarchy of three types of countries: core, semi-peripheral and peripheral.
(1) Core nations
Core nations apperas to be powerful, wealthy and highly independent of outside control. They are strong central government, controlling extensive bureaucracies and powerful militaries. Core countries eg US, Japan, Germany are dominant capitalist countries characterized by high level of industrialization and urbanization. Core countries are capital-intensive, have high wages and high technology production patterns and lower amount of labor exploitation and coercion. Core countries own most of the world's capital and technology and have great control over world trade and economic agreement. They are also the cultural centres which attracts artists and intellectual. Core countries extract raw material with low cost. They can also set the prices for the agricultural products.
(2) Peripheral nations
Peripheral nations are the nations that are the least economically developed. Peripheral countries eg most African countries and low income countries in South America are dependent on core countries for capital and are less industrialized and urbanized. One of the main reasons for their peripheral status in the high percentage of the uneducated people who can mainly provide cheap unskilled labor to the core nation. They have relatively weak government and have relatively weak institutions and have a small bourgeois and a large peasont classes. The wealthy in the peripheral countries benefits from the labor of poor workers and from their economic relations with core country capitalist.
(3) Semi-peripheral Nations
Semi-peripheral countries are less developed than core nations but more developed than peripheral nations. They are the weaker members of advanced regions or leading members from the former colonial ones. They tend to be countries moving towards industrialization and more diversified economies. They tend to export more to peripheral nations and import more from core nations. Example of semi-peripheral nations are South Korea, Taiwan, Mexico, Brazil, India, Nigeria, South Africa.
Assumption of World System Theory
The main assumptions of the world-systems theory are:
(a) There is a strong link between social sciences - especially among sociology, economics and political disciplines. This school recognizes that more attention is usually given to the individual development of each one of these disciplines rather than to the interaction among them and how these interactions affect in real terms the national conditions of a given society.
(b) Instead of addressing the analysis of each of the variables, it is necessary to study the reality of social systems.
(c) It is necessary to recognize the new character of the capitalist system.
Criticisms of World System Theory

(1) Specialization in low-tech production may produce profits in short term.
(2) The culturalists argue that world system theory puts too much importance on the economy and not enough on the culture.

Karl Marx Development Theory

Background
Karl Marx was born in 1818 and completed Ph.D at the university of Jena at the age of 23. He
involved in radical journalism and settled in Germany, Belgium and France. In 1849 he settled in England for the rest of hBackground Karl Marx was born in 1818 and completed Ph.D at the university of Jena at the age of 23. He involved in radical journalism and settled in Germany, Belgium and France. In 1849 he settled in England for the rest of his life. His great work Das Capital was published in 1867. He is great socialist thinker. Assumption of the Theory (1) There are two principal classes in society: Bourgeoisie and Proletariat. (2)Labor is the main source of value generations. (3) Factors of production are owned by capitalist. (4) Labor has inherent tendency to produce above subsistence. (5) Wages of worker are determined at subistence level. (6) Capitalist exploit the worker. (7) There is inevitable demise of the Capitalism in the world. Some Propositions of Marxist Economics * Accumulations of capital increases unemployment(labor reserve army). * Lower wages for employed and unemployment increase misery. Increases misery create conditions for successful workers organizations. Worker organizations overthrow the capitalist social class. Marx's stages of growth and Social Change It is based on materialistic interpretation of history. Historical events are result of a class struggle in a society. The main cause are ' mode of production' ( the arrangements of production) and the ' 'relations of production' ( class structure of society). Marxist Development Theory * A materialistic interpretation of history. * Mode of production determine the entire social, political and religious ways of living. * Historically society has passed through five different stages: (a) Primitive communism (b) The Slavery stage (c) Feudal Stage (d) The capitalist stage (e) The socialist or communist stage (1) Primitive communism * First stage in evolution of society, use sticks and stones by man, product produced shared equally, just subsistence, relation of production was common owernship of means of production, Barter system economy. * Clan began to break into families, institutions of private property come into existence, in the later period some people began to produce more than subsistence. * Above subistence production leads to appropriation of the surplus produce and exploitation of other. * This paved the way for the emergency of the slave society. (2) The Slavery stage * Slave owner owned both means of production and produce. * Let to develop slave owing cities like Rome and Greece. * Ore mining and smelting of metal began. * Canals, water raising devicies were used to irrigate land. * With growth of cities commerce and trade developed internal and external. * In this society, there was subjugation and exploitation of slaves by few owners. * With the passage of time slave society class structure led to conflict. * Entire structure of slave society was overthrown and on its ruins there rose feudal system. (3) Feudal Stage * Feudal lords owned the land and serfs as the main means of production. * Serfs worked liked slaves for feudal lords. * But serfs could own land, livestock etc. * State grew on the strength of feudal lords who had their own army. * There was much progress in this society. * Agriculture developed ; water mill and wind mills. * Small handicrafts workshop gave place to manufacturing units. * Discovery of new countries like America. * Feudalism led to class struggle between serfs and feudal lords. * The revolution replaced feudal relations of production to capitalist relations. (4) The capitalist stage * In this stage capitalist own the means of production. * The Worker is free to work for any capitalist. * Labor doesnot have any means of production * Labor sells his labor power. * According to Marx, the value of labor power is same as the value of commodities. * It is the unique characteristics of labor power to produce more than that is needed to produce wage goods necessary for his own. * The excess of total produce over subistence produce is termed as surplus value - capitalist profit. * To increase this profit capitalist introduce labor saving or capital intensive production. * In next stage there is concentration of capital in big enterprises. * To earn high profits labor saving machines are introduced. * The process of replacing labor by machines creates the industrial reserve army of labor. * Capitalism leads to a class struggle between proletariat and bourgeoisie. (5) The communist or Socialist stage * The last stage is communism brought by proletarians. * Dictatorship of the proletariat is established. * Each individual will contribute to national product and receive according to his needs. * But followers of Marx refer means of production owned and regulated by state. * There is no class struggle. Criticisms of Karl Marx Theory 1) Surplus value unrealistic. 2) Technological progress help to increase employment. 3) Finally tendency of profit is not correct. 4) Marx couldnot understand flexibility in capitalism.is life. His great work Das Capital was published in 1867. He is great socialist thinker.
Assumption of the Theory
(1) There are two principal classes in society: Bourgeoisie and Proletariat.
(2)Labor is the main source of value generations.
(3) Factors of production are owned by capitalist.
(4) Labor has inherent tendency to produce above subsistence.
(5) Wages of worker are determined at subistence level.
(6) Capitalist exploit the worker.
(7) There is inevitable demise of the Capitalism in the world.
Some Propositions of Marxist Economics
* Accumulations of capital increases unemployment(labor reserve army).
* Lower wages for employed and unemployment increase misery.
* Increases misery create conditions for successful workers organizations.
* Worker organizations overthrow the capitalist social class.
Marx's stages of growth and Social Change
It is based on materialistic interpretation of history. Historical events are result of a class struggle in a society. The main cause are ' mode of production' ( the arrangements of production) and the ' 'relations of production' ( class structure of society).
Marxist Development Theory
* A materialistic interpretation of history.
* Mode of production determine the entire social, political and religious ways of living.
* Historically society has passed through five different stages:
(a) Primitive communism
(b) The Slavery stage
(c) Feudal Stage
(d) The capitalist stage
(e) The socialist or communist stage
(1) Primitive communism
* First stage in evolution of society, use sticks and stones by man, product produced shared equally, just subsistence, relation of production was common owernship of means of production, Barter system economy.
* Clan began to break into families, institutions of private property come into existence, in the later period some people began to produce more than subsistence.
* Above subistence production leads to appropriation of the surplus produce and exploitation of other.
* This paved the way for the emergency of the slave society.
(2) The Slavery stage
* Slave owner owned both means of production and produce.
* Let to develop slave owing cities like Rome and Greece.
* Ore mining and smelting of metal began.
* Canals, water raising devicies were used to irrigate land.
* With growth of cities commerce and trade developed internal and external.
* In this society, there was subjugation and exploitation of slaves by few owners.
* With the passage of time slave society class structure led to conflict.
* Entire structure of slave society was overthrown and on its ruins there rose feudal system.
(3) Feudal Stage
* Feudal lords owned the land and serfs as the main means of production.
* Serfs worked liked slaves for feudal lords.
* But serfs could own land, livestock etc.
* State grew on the strength of feudal lords who had their own army.
* There was much progress in this society.
* Agriculture developed ; water mill and wind mills.
* Small handicrafts workshop gave place to manufacturing units.
* Discovery of new countries like America.
* Feudalism led to class struggle between serfs and feudal lords.
* The revolution replaced feudal relations of production to capitalist relations.
(4) The capitalist stage
* In this stage capitalist own the means of production.
* The Worker is free to work for any capitalist.
* Labor doesnot have any means of production
* Labor sells his labor power.
* According to Marx, the value of labor power is same as the value of commodities.
* It is the unique characteristics of labor power to produce more than that is needed to produce wage goods necessary for his own.
* The excess of total produce over subistence produce is termed as surplus value - capitalist profit.
* To increase this profit capitalist introduce labor saving or capital intensive production.
* In next stage there is concentration of capital in big enterprises.
* To earn high profits labor saving machines are introduced.
* The process of replacing labor by machines creates the industrial reserve army of labor.
* Capitalism leads to a class struggle between proletariat and bourgeoisie.
(5) The communist or Socialist stage
* The last stage is communism brought by proletarians.
* Dictatorship of the proletariat is established.
* Each individual will contribute to national product and receive according to his needs.
* But followers of Marx refer means of production owned and regulated by state.
* There is no class struggle.
Criticisms of Karl Marx Theory

1) Surplus value unrealistic.
2) Technological progress help to increase employment.
3) Finally tendency of profit is not correct.
4) Marx couldnot understand flexibility in capitalism.

Public Private Partnership

A public private partnership is a legally-binding contract between government and
business for the provision of assets and the delivery of services that allocates responsibilities and business risks among the various partners. The private sector is responsible for the more commerical functions such as project design , construction, finance and operations. In a P3s arrangement, government remains remains actively involved throughout the project's life cycle. P3s take a variety of forms, with varying degree of public and private sector risk. In fact, risk transfer from the public to private sector is critical elements of all P3s. The goal is to combine the best capabilities of the public and private sectors for mutual benefit. For example; if a private company assumes responsibility for financing and building a highway, it also assumes responsibility for related risks; interest rates could rise; construction could be delayed; labour costs could increase; and so on.
If the company also takes responsibility for highway operation and maintenance, it assumes even more risk. For example; traffic volumes might not be as high as anticipated, and unforeseen circumstances such as mudslides, snowstorms or an earthquake could add significantly to maintenance costs. Why would the private sector be willing to assume these risks? Because where risk exists, so does opportunity. The private sector partner gains a relatively stable, long term investment opportunity. Revenues are in the form of either a fee for service, paid by government, or fees collected from users, as in the case of high way tolls.

Benefits of P3s for Government and Tax payers

(1) Improve service delivery

By allowing both sectors to do what they do best. Governments core business is to set policy and serve the public. It is better positioned to do that when the private sector takes responsibility for non-core functions such as operating and maintaining buildings.

(2) Improve cost-effectiveness

By taking advantage of private sector innovation, experience and flexibility, P3s can often deliver services more cost-effectively than traditional approaches. The resulting saving can then be used to fund other needed services.

(3) Increase investment in public infrastructure

Investment in hospitals, schools, highway and other provincial assets have traditionally seen funded by the Province and, in many cases, have added to levels of overall debt. P3s can reduce government's capital costs, helping to bridge the gap between the need for infrastructure and the Province's financial capacity.

(4) Reduce public sector risk

By transferring to the private partner those risks that can be better managed nt the private partner. For example, a company that specializes in operating buildings may be better positioned than government to manage risks associatied with the changing demands of commerical real estate.

(5) Deliver capital projects faster

Making use of the private partner's increased flexibility and access to resource.

(6) Improve budget certainty

Transferring risk to the private sector can reduce the potential for Government cost overruns from unforeseen circumstances during project development or service delivery. Services are provided at a predictable cost, as set out in contract agreements.

(7) Make better use of assets

Private sector partners are motivated to use facilities fully, and to make the most of commerical opportunities to maximize returns on their investment. This can result in higher levels of service, greater accessibility, and reduced occupancy costs for the public sector. The P3s approach also encourages a "life cycle" approach to planning and budgeting, through the use of long-term contracts. For example, a company that agress to operate and maintain a building for 50 years will have to ensure that the asset remains in a certain condition and, therefore, must include maintenance costs in its budget for the life of the agreement. By contrast, public sector planning is based on three-year cycles in British Columbia. Maintenance costs can sometimes be deferred in response to budget pressure, which can reduce the value of an asset over time.

Benefits of P3s for the private sector

P3s give the private sector access to secure, long-term investment opportunities. Private Partner can generate business with the relative certainty and security of a government contract. Payment is provided through a contracted fee for service, or through the collection of users fees- and the revenue stream may be secure for as long as 50 years or more. Private sector partners can from P3s by achieving efficiencies, based on their managerial, technical, financial and innovation capabilities. They can also expand their P3s capacity and expertise - or their expertise in a particular sector - which can then be leveraged to create additional business opportunities.

Modernization Theory

Meaning of Modernization

Modernization is understood as a process which indicates the adaptation of the
modern ways of life and values. The term modernization symbolizes process of change in the economy. It is transformation of agricultural to industrial economy, changes in values, beliefs and norms of society. Modernization indicates change in people's food habits, dress habits, speaking styles, taste choices, preferences, ideas, values, recreational facilities and so on. As a result social changes involving the elements of science and technology.

Defining Modernization

Daniel Learner who introduced the term " Modernization " for the first term in his study of the middle eastern societies- usues it to refer to the changes brought about in non-western country by contract, direct or indirect with a Western country.
Daniel Learner, " Modernization is the current term for an old process of social change whereby less developed societies acquire the characteristics common to more developed societies."
Smelser, " Modernization refers to a complex set of changes that takes place almost in every part of society as it attempts to be industrialized. Modernization involves ongoing changes in a society's economy, politics, education, traditions and religion."

Process of Modernization

(a) Globalization and mass consumption

Globalization is the process of interaction and integration among people, companies and government worldwide. It is argued that globalization is related to the spreading of modernization across borders. The expansion of global markets liberalize the economic activities of the exchange of goods and funds. Communication is another major area that has grown due to modernization. Communication industries have enabled modernization to spread throughout the world.

(b) Democratization and Modernization

The relationship between modernization and democracy is one of the most researched studies in comparative politics. Relatively greater measures of public participation in the policy. There is academic debate over the drivers of democracy because there are theories that support economic growth as both a cause and effect of the institution of democracy.

(c) Technology and Modernization

Since modernization entails the social transformation from Agrarian society to industrial one, it is important to look at the technological view point. The process of modernization begins with industrialization of economy and adopting a scientific technology in industy, agriculture, dairy farming to make them highly productive. Technology makes innovated society and broad social change. For example; cell phone have change millons of lives in Africa and other parts of Asia where there is a low cost communication infrastructure, with cell phone technology, widely dispersed population are connected, which facilities business-business communication and provides internet access to remote areas with a rise in literacy .

(d) Secularization of Ideas

Modernization leads to secularization of ideas. Diffusion of secular ideas removes the dogmas, superstitions and other forms of social, religions and cultural ill practices. It establishes the rationality and norms in cultural and social practices.

(e) Help from Western countries

Western investment in factories, expertise and equipment. Western funding to introduce meritocratic education. Mass media to disseminate modern ideas. Example; nuclear families.

Characteristics of Modernization

(1) The countries that are seen as modern are also seen as developed which means that they are generally more respected by institutions such as UN and even as possible trade partner for other trade countries.
(2) Increase in standard of living.
(3) High expectancy of life at birth.
(4) Improve structural differentiation.
(5) High production and Manufacturer.
(6) Greater measure of public participation.

Criticisms of Modernization

(1) It assumes unlimited natural resources for industrial expansion.
(2) Erosion of indigenous socio-cultural values.
(3) Loss of indigenous knowledge and skills .
(4) Can lead to dependency.
(5) Not guarantee that it will solve the problem of under development and poverty.
(6) It is Americanization, Westernization and Europeanization = new form of colonization.