IDSB06 Lecture 12.pdf

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Ethical Concerns with Economics
Ethical concerns with Macroeconomic Development
Prime minister of Japan: People are a means, not an end. Fundamental capitalism
Neoliberalism of Washington Consensus is different from Adam Smith's capitalism
The failure of development is to bring the haves and have nots closer to each other. There have been pockets of improvement b ut no
Stiglitz (Globalization and its Discontents): International institutions are not solely economic instruments; they are merged with geopolitical
interest and ideology. These policies are either failing or not working very well.
Orthodoxy: to- down neoliberal policies (IMF/ World Bank) stipulating strict conditions for economic and social policy reforms for aid-
recipient countries. A fundamentalism that can't create provisions that need to be customized, not a cookie cutter model.
Anti- democratic practice: No negotiations or alternative models can be proposed. No broad- based consultations with gov'ts or any
member of nation or global civil society
Ethical concerns of macroeconomic development policies:
Fundamental critique: the neoliberal policies are ostensibly wanted to promote economic development in 3d world but didn't use these policies
in the 1st world. The policies have faired to fail implications.
Reduction of government services/ provisions: education, health care
Deregulation: remove labour laws, environmental protection, health standards, etc.
Promote privatization- sell state- owned enterprises to private sector, including schools, etc.
Promote an export economy: focus on export pdouction by devlauing national economy
Since the 1980s SAPs were designed to restructure nation economies, intended to help countries acehive long term accelerated growth. In a
few countries these neo- liberal policies had some good effects but far more countries endured economic instabilities and entrenched poverty.
Increase aid to NGOs to try to resist SAPs
Growing research that policies have failed alongside politilcal pressure and popular resistance
Pressure to democratize decision- making and promote greater country ownership instead of top- down policies. Secret meetings were
taking plaec; this was a clandestine affair.
PRSPs: The International Finacial Insitutions replaced SAPs with PRSP because of two key reasons:
There's a switch in the language of the practice and conceptualization of practice. PRSP focus on building broad- based capacities and
onwership of policties through increasing the participation of public (governemtn) officials and civil society (develop orgs, churches and
business community) in the writing of their own national development plans.
IFIs internal review:
Participatory methodologies are now institutionalized for nation economic development frameworks.
Policies are now considered to be customized. They are no longer cookie cutter models.
Larger social welfare budgets and better public expenditures
Looking at more than just economic indicators to discuss poverty
Results oriented- concrete improvements for poor
Narrowly defined agendas established beforehand
No debates on policies, just respponses that are processed
Limited time and budget allocated for participatory process, often misses rural majority
Larger organizations and business groups have greater access and influence more so than trade unions, local NGOs and
religoius groups (often dismissed for their lack of knowledge on marcoecnomic frameworks)
IFIs maintain final approval over outcomes
Process is marked by token participations, peoples voices are often dismissed or dliuted
The final development remains neoliberal in design because IFIs have a number of institutional backstops to secure their
desired policy outcomes
Greater external checks and mnitoring on gov't policies and implemetnation strategies under the World Bank's "budget
montioring" initiative
No major shifts in marco- economic policies and greater "surveillance" of gov'ts
International NGOs are not part of the process and have become advocates of PRSPs. This has undermined their abilitity to
resist and protest development plans. Oxfam's Guie to PRSP accepts the legitimacy of the PRSP prcoess and advises Southern
parnters that they should engage with thep rocess "constructively" and work within the system
The depoliticization of civil society
Lecture 12
Tuesday, April 05, 2011
11:08 AM
IDSB06 Page 1
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