Economic development versus economic growth : The distinction between growth and development is important from both theoretical and policy-making standpoints.
Economic growth is regarded as a process of simple increase in the inflation-adjusted market value of the goods and services produced by an economy over time.
Economic development is a process of structural change or improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.
Growth and development are considered to be complementary in the long-run but competitive in the short-run. 16
Agriculture versus industry : In the mid-1960s it began to be realized that rapid industrialization was an illusion. Agricultural growth came to take its place. Until that time the importance of the agricultural sector in development had been neglected – a sector that loomed large in the India in terms of employment for the bulk of the labour force. There also was to be found the majority of poor people, and many of the urban poor had migrated from the agricultural sector. Unfortunately, the debate over development strategy then, as now, often swirled around the relative importance of agriculture versus industry.
Basic needs approach : In the 1970s, the general thinking was that the poor masses had not gained much from development. This led to the adoption of policies in favour of distribution and the provision of basic needs for the poor. In this approach, the primary objectives were to provide opportunities for the full physical, mental and social development of the individual.
This approach focused on mobilizing particular resources for particular groups, identified as deficient in those resources, and concentrated on the nature of what was to be provided rather than on income.
The basic needs approach did not rely solely on income generation or transfers; it placed primary emphasis on the production and delivery to the intended groups of the basic needs basket through supply management and a delivery system
Shift from Public to Private sector : From the 1980s, the focus shifted to development initiated in the private sector. It was an important policy shift for India. After decades of growing government involvement, Indian economy goes into serious fiscal crises which necessitated a shift from the public to the private provision of goods and services.
Increased openness and reduced government intervention are generally associated with improved development performance.
Development management applies to the activities of governments to facilitate programmes of social and economic progress through the system of public administration. It mobilizes bureaucratic skills to assist in the development process. Development management requires efficient organization and management in a process of guiding institutions toward the achievement of given economic objectives and socio-economic development
Quantitatively inadequate or qualitatively defective system of development management will not merely retard the development process but may defeat the entire development effort in an even more decisive manner than any temporary shortage of capital or an unfavorable monsoon.
It was not until the 1970s that the international development agencies began to give serious consideration to development management. Before that time much of the thinking on development management was influenced by optimism in regard to availability of material, human and scientific resources. Currently, questions are being asked about the capacity of public administration to bring about the necessary re-adjustments and increases in productivity to enhance development and for good reason.
Development management has a major role to play.
It must supply the facts, apply the methods and evaluate the record.
It represents the instrument of implementation and accomplishment.
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Urban Development Management Study notes for M. plan Sem-III
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