A World Fit for People. - book reviews

American Journal of Economics and Sociology, The,  April, 1995  by S.K. Kaushik

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Part 2 on Economic Development has essays by G. Arthur Brown, Paul Streeten, Nemir A. Kirdar, I. G. Patel, Goran Ohlin, Alexander Love, Makoto Taniguchi, Ravi Gulhati and Keith Bezanson. There are papers on economic policy and its underlying models and on international aid in support of development. The role of government in investment, in infrastructure, creation and management of public enterprises, providing and enforcing rules and regulations on private enterprises and other interventions in the economy is found to have helped the developing countries temporarily in the 1950s and 1960s. During the last two decades, mostly negative results from this heavy role of government in the economy seem to have been attained. Thus a major shift in the Third World toward abandonment of this public sector led model for economic development has occurred in favor of the market based economy, where private enterprise takes the center stage. An open economy, with internal liberalization and competition among market participants, is the new paradigm for economic development. The role of government in the achievement of economic progress is nevertheless found to be high in the absence of a fully developed industrial state and a functioning of the market mechanism in developing countries.

Also raised is the question of whether developed industrial countries have done enough for the Third World countries in terms of technology transfer, foreign aid and opening of their markets for imports from them. While financial markets have become global and the turnover of daily financial flows is almost as large as the annual flows of global trade in goods and services, the developed countries have also stopped being engines of growth. It is not obvious that liberalization of financial markets in developed economies leads to higher economic growth, at least in the short term.

Part 3 on Human and Ecological Values covers human, social, cultural, ethical, religious values, women and family, self-respect and environmental aspects of progress. The papers are by Mahbub ul Haq, Mary Chinery-Hesse, Talat Sait Halman, Charles William Maynes, Gedaliahu G. Stroumsa, Princess Basma Bint Talal, Nicholaa Malet de Carteret, Joseph C. Wheeler, Neva Goodwin and Sveneld Evteev. Relationships between governmental structures, social values and economic development are examined. The authors discover the emergence of a new philosophy of putting people first, a focusing of ". . . national and international policies on improving the education, skills, job opportunities, and personal liberties of the people and on correcting the social ills - the abuses of human rights, the racial, ethnic, and sexual discrimination, and the environmental degradation that threaten people's lives." Good governance, the correction of market failures and social ills, a strong role of private organizations, improvement in the role and status of women, and respect for human rights are advocated to improve the quality of life.