FANA HAGOS BERHANE (LL. B) (LL.M)
Sponsored by the Justice and Legal System Research Institute
UNDERSTANDING THE CONCEPT OF DEVELOPMENT
Chapter 1- PRINCIPLES AND CONCEPTS OF DEVELOPMENT
The study of economic development is one of the newest, most exciting, and most challenging branch of the broader disciplines of economics and political economy and this chapter is mainly to give you highlight about the important concepts and nature of development economics, core values, and objectives of development , and indicators of development and growth. At the end of this chapter you will be able to
§ describe the importance of studying development economics
§ identify the difference between growth and development
§ assess the core values of development
§ elaborate the important objectives of development
1.1 The Nature of Development Economics
Traditional economics is concerned primarily with the efficient least – cost allocation of scarce productive resources and with the optimal growth of these resources over time so as to produce an ever – expanding range of goods and service. By traditional economics it simply means the classical and neoclassical economics taught. Traditional neoclassical economics deals with an advanced capitalist world of perfect markets. consumer sovereignty. automatic price adjustments. decisions made on the basis of marginal, private – profit and utility calculations; and equilibrium outcomes in all product and resource markets. It assumes economic “rationality’’ and a purely materialistic, individualistic and self- interested orientation towards economic decision making. Political economy goes beyond traditional economics to study, among other things, the social and institutional processes through which center groups of economic and political elites influence the allocation of scares productive resources now and in the future, either exclusively for their own benefit or for that of the larger population as well. Political economy is, therefore, concerned with the relationship between politics and economic decision making.
Development economics has an even greater scope. In addition to being concerned with the efficient allocation of existing scarce (or idle) productive resources and with their sustained growth over time, it must also deal with the economic, social, political, and institutional mechanisms, both public and private, necessary to bring about rapid (at least by historical standards) and large-scale improvements in levels of living for the masses of poverty – stricken, malnourished, and illiterate peoples of Africa, Asia, and Latin America. Unlike the more developed countries, in the Less Developed Countries (LDCs), most commodity and resource markets are highly imperfect, consumers and producers have limited information, major structural changes are taking place in both the society and the economy, and disequilibrium situations often prevail (prices do not equate supply and demand).
In many cases, economic calculations are dominated by political and social priorities such as building a new nation in Africa, replacing foreign advisors with local decision makers, resolving tribal or ethnic conflicts, or preserving religious and cultural traditions, religious and cultural traditions. At the individual level, family, clean, religious, or tribal considerations may take precedence over private, self – interested utility or profit – maximizing calculations.
Thus, development economics, to a greater extent than traditional neoclassical economics or even political economy, must be concerned with the economic, cultural, and political requirements for effecting rapid structural and institutional transformations of entire societies in a manner that will most efficiently bring the fruits of economic progress to the broadest segments of their populations. As such a larger government role and some degree of coordinated economic decision making directed toward transforming the economy are usually viewed as essential components of development economics.
We, who study law and development economics, must therefore be sensitive to the uniqueneness and diversity of third world societies. We must also recognize that there are few, if any, truly universal principles or “laws’ of economics governing economic relationships that are immutable at all times and in all places. There are at best only tendencies. For example, increased consumer demand tends to elicit a greater quantity supplied. But, as we shall discover later, conditions do exist in many developing countries under which this positive supply response may not operate.
Because of the heterogeneity of the developing world, there can also be no single development economics, no universal third world economics applicable to any or all LDCs. Rather, development economic must be eclectic, attempting to combine relevant concepts and theories from traditional economic analysis along with new models and new broader multidisciplinary approaches derived from studying the historical and contemporary development experience of America, Asia, and Latin America. Today development economics is field on the crest of a breaking wave theories and new data continuously emerging. These theories and statistics sometimes confirm and sometimes challenge traditional ways of viewing the world. The ultimate purpose of development economics, however, remains constant: to help us better understand third world economies on order to help improve material lives of three-quarters of the global population.
PROCLAMATION NO. 90/1997 A PROCLAMATION TO ACCEDE TO THE CONVENTION ESTABLISHING THE WORLD INTELLECTUAL PROPERTY ORGANIZATION
PROCLAMATION NO. 90/1997
A PROCLAMATION TO ACCEDE TO THE CONVENTION ESTABLISHING THE WORLD INTELLECTUAL PROPERTY ORGANIZATION
WHEREAS, it is found essential that Ethiopia accedes to the convention establishing the World Intellectual Property Organization signed at Stockholm on 14th July, 1967, and amended on the 28th day of September, 1979;
WHEREAS, the House of Peoples' Representatives of the Federal Democratic Republic of Ethiopia has ratified said convention at its session held on the 23rd day of October, 1997;
NOW, THEREFORE, in accordance with Article 55 sub-Article (1) and (12) of the constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short Title
This proclamation may be cited as "the Convention Establishing the World Intellectual Property Organization Accession Proclamation No. 90/1997."
2. Accession to the Convention
The Convention establishing the World Intellectual Property Organization signed at Stockholm on the 14th day of July, 1967 and amended on the 28th day of September 28, 1979, is acceded.
3. Powers of the Ethiopian Science and Technology Commission
The Ethiopian Science and Technology Commission is hereby empowered to undertake all acts necessary for the implementation of the Convention.
4. Effective Date
This Proclamation shall enter into force as of the 23rd day of October, 1997.
Done at Addis Ababa, this 23rd day of October, 1997.
NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA