( Lesson 6) DEVELOPMENT POLICYMAKING AND THE ROLES OF MARKET, STATE, AND CIVIL SOCIETY

Question 1

this is Deliberate governmental attempt to coordinate
economic decision-making over the long run and to
influence, direct, and in some cases even control the
level and growth of a nation’s principal economic
variables (income, consumption, employment,
investment, saving, exports, imports, etc.)

Answer 1

Economic planning

Question 2

a specific set of quantitative
economic targets to be reached in a given
period of time, with a stated strategy for
achieving those targets.

Answer 2

Economic Plan

Question 3

sets its target to cover
all major aspects of national economy.

Answer 3

Comprehensive Plan

Question 4

covers only a part of national
economy (industry, agriculture, public sector)

Answer 4

Partial Plan

Question 5

government chooses social
objectives, targets, and create framework to
implement, coordinate and monitor planning.

Answer 5

Planning Process

Question 6

Developing economies have limited resources and
they cannot put them into waste

limited skilled human resources and financial capacity
should be invested in areas/ sectors in which the
economy can profit from

Answer 6

Resource Mobilization and Allocation

Question 7

detailed economic planning and strengthened social
objectives can eliminate factions and divisive attitudes
among the people

Answer 7

Attitudinal or Psychological Impact

Question 8

A detailed economic plan is attractive for donations,
bilateral, and multilateral foreign aid

Answer 8

Foreign Aid

Question 9

Factors in the failure for economic
planning

Answer 9

Deficiencies in Plans and implementation

Insufficient and Unreliable Data

Unanticipated Economic Disturbances, External and
Internal

Institutional Weaknesses

Lack of Political Will

Question 10

—protection of consumers’
preferences from influence by producers and
purveyors

Answer 10

Autonomous tastes

Question 10

—provisions for maintaining adequate
consumption for individuals affected by certain
economic misfortunes, especially involuntary
unemployment, industrial injuries, and work
disabilities

Answer 10

Safety nets

Question 10

Provision of fundamental public goods including
institutions such as protection of property rights and
broad access to opportunity

Answer 10

The New Consensus

Question 10

John Williamson coined the term in 1989

A 10-point policy concerning free trade, and free
market ideas supported by the IMF, World Bank,
and the U.S.

Gaps: did not tackle ways to combat absolute
poverty and development strategies

1. Fiscal discipline
2. Redirection of public expenditure priorities toward
   health, education, and infrastructure
3. Tax reform, including broadening of tax base and
   cutting marginal tax rates
4. Unified and competitive exchange rates
5. Secure property rights
6. Deregulation
7. Trade Liberalization
8. Privatization
9. Elimination of barriers to direct foreign investment
   (DFI)
10. Financial liberalization

Answer 10

Washington Consensus

Question 10

Ensuring environmentally sustainable
development and ecological protection

• Providing export incentives
• Helping the private sector overcome
  coordination failure

Ensuring “shared growth” by acting to reduce
poverty and inequality and to ensure that as the
economy grows, the poor share substantially in
the benefits

• Prudential supervision and regulation of the
  financial sector

Answer 10

The New Consensus

Question 10

Poverty alleviation

Market mechanisms but enhanced role of
government in fighting against poverty

Emerging role of NGOs and Civil Society

1. Development must be market-based, but there are
   large market failures that cannot be ignored.
2. Government should not be in the business of direct
   production, as a general rule.
3. Nevertheless, there is a broad, eclectic role for government in
   the following areas:

• Providing a stable macro environment
• Infrastructure, though in fewer sectors than necessary in the
  past
• Public health
• Education and training
• Technology transfer (and for advanced developing
  economies, the beginnings of original R&D)

Answer 10

A New Consensus

Question 10

any non-profit, voluntary citizen’s group which is organized on a local,
national or international level. Task oriented and driven by people with a
common interest,

Answer 10

NGO (Non-profit organization)

Question 10

can design and implement policies addressing
poverty alleviation

Answer 10

Innovation

Question 10

NGOs have technical
expertise and knowledge from working with local
communities.

Answer 10

Specialized technical knowledge

Question 10

NGOs are not constrained with local,
national, or foreign pressures. They may tailor their policies
based on their existing funding (donor capture).

Answer 10

Program flexibility

Question 10

they can provide and explore
opportunities for people who are socially excluded from
basic goods and services

Answer 10

Targeted local public goods-

Question 10

training, assistance, organizational
development

Answer 10

Common-property resource management design and
implementation-

Question 10

greater trust among the poor
population

Answer 10

Trust and credibility

Question 10

better understanding of
poverty in community level

Answer 10

Representation and advocacy

Question 10

tendency of NGOs to be weak because of
structural problems

Answer 10

Voluntary Failure

Question 10

Challenges to development

Answer 10

Corruption

Decentralization

Development Participation