Managing Development: Measures Of Success And Failure In Development

Managing Development Managing Development Measures of Success and Failure in Development Ernst G. Frankel © Ernst G. Frankel 2005 Softcover reprint of the hardcover 1st edition 2005 978-1-4039-4949-3 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2005 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N. Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-52572-0 ISBN 978-0-230-00629-4 (eBook) DOI 10.1057/9780230006294 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Frankel, Ernst G. Managing development : measures of success and failure in development / by Ernst G. Frankel. p. cm. Includes bibliographical references and index. 1. Developing countries–Economic policy–Management. I. Title. HC59.7.F693 2005 338.91–dc22 10 14 9 13 8 12 7 11 2004062472 6 10 5 09 4 08 3 07 2 06 1 05 This book is dedicated to my wife, Inna Frankel, for her love, understanding, and friendship as well as well-deserved criticism she so constructively lavishes on me. Contents Dedication v List of Figures xii List of Tables xiii Terms and Abbreviations xv Acknowledgements xvi Preface xvii Prologue xviii Introduction 1 1 Development Economics or Unrealistic Dream? 1.1 Why economic principles of development do not work 1.1.1 Democracy and development 1.1.2 The lost dream 1.2 Defining poor developing countries 1.2.1 GNP as a measure of development 1.2.2 General measures of development 1.2.3 The quality of development aid 1.2.4 The role of privatization and regulatory reform in development 1.2.5 Developing country government employment 1.3 Unrealistic dream 1.3.1 Managing the environment in developing countries 1.3.2 Weeding out corruption 1.3.3 Poverty elimination and health improvements 1.3.4 Education for development 1.3.5 Regional cooperation and economic development 1.4 The real developing world 1.4.1 Economic concentrations 1.4.2 Population concentrations 1.4.3 Western capitalist individualism 1.4.4 Changing western priorities 1.4.5 Economic impact of global aging 1.4.6 Modern slavery 1.4.7 Global inequity vii 10 11 12 13 14 15 17 18 18 19 21 22 25 33 34 35 36 37 38 38 40 41 53 54 viii Contents 2 Economic Trends 2.1 Real measures of economic performance 2.1.1 Measuring economic growth in development 2.1.2 Defining factors of economic growth 2.1.3 Economic development statistics 2.2 Development and trade 2.2.1 Currency polit