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Abstract:
Recent literature has contrasted Human Development, described as the ultimate goal of the development process, with economic growth, described as an imperfect proxy for more general welfare, or as a means toward enhanced human development. This debate has broadened the definitions and goals of development but still needs to define the important interrelations between human development (HD) and economic growth (EG). To the extent that greater freedom and capabilities improve economic performance, human development will have an important effect on growth. Similarly, to the extent that increased incomes will increase the range of choices and capabilities enjoyed by households and governments, economic growth will enhance human development. This paper analyzes these relationships and the two-way linkages involved.

Economic Growth, Human Development

Abstract:
This paper explores the two-way relationships between Economic Growth (EG) and Human Development (HD), building on an earlier work by Ranis, Stewart, and Ramirez (2000). Here, we show that HD is not only a product of EG but also an important input to it. The paper develops new empirical strategies to estimate the strength of the two-way chains connecting HD and EG. Building on existing growth literature, we explore the empirical determinants of positive growth trajectories running from HD to EG and find that HD plays an essential role in explaining growth trajectories. Our findings point to the empirical relevance of endogenous growth models in general, and threshold effect models in particular. We also develop a measure of the strength of the EG to HD relationship and explore some of its empirical determinants. A strong sequencing implication of our findings that HD must be given priority for the achievement of both higher EG as well as HD.

Human Development, Economic Growth, Threshold Models

Abstract:
This paper makes an effort to trace the course of development thinking and associated development policy over the past six decades.

Section I focuses on the early Post-War Consensus, with theory focused on extensions of classical dualism theory and policy concentrating on creating the pre-conditions for development. Section II traces the increasing awareness of the role of prices, a diminishing reliance on the developmentalist state and an increased reliance on structural adjustment lending associated with IFI conditionality. Section III illuminates the search for silver bullets which can be identified as key to the achievement of success. Finally, Section IV presents the author's assessment of where we are now and where we will, or should be, heading in the effort to achieve the third world's basic development objectives.

Development Theory, Development Policy

Abstract:
Arthur Lewis' seminal 1954 paper and its emphasis on dualism appeared at a time when neither the work of Keynes or Harrod-Domar nor the later neoclassical production function of Solow seemed relevant for developing countries.

As a consequence, his model, rooted in the classical tradition, plus its many extensions, generated an extensive literature at the center of development theory. The approach also encountered increasingly strong criticism, some of the red herring variety, but some, spearheaded by neoclassical microeconomists like Rosenzweig, also raised serious challenges, focused especially on its labor market assumptions.

This paper reviews this landscape and asks what theoretical or policy relevance the Lewis model retains for today's developing countries.

Development Theory, Dualism, Labor Markets

Abstract:
Human development, reflected in the status of people's levels of health and education, affects future growth and, in turn, is affected by decentralization. Unlike earlier exclusive emphasis on budgetary issues, this study focuses on the impact of fiscal decentralization on the level of human development. It traces the origin and recent development of revenue-sharing arrangements across Argentina's provinces over time (1970-94). The study regresses two indicators of health and educational status on two decentralization measures. It highlights the link between decentralization and human development outcomes and suggests that devolutionary decentralization has a positive influence on the effectiveness of public policy directed towards an improvement in the level of human development. Decentralization is shown to reduce intra-regional disparities and increase levels of human development. While the paper also recognizes problems associated with decentralization, including addressing inter-regional disparities, the positive impact of decentralization schemes on human development is seen to be of relevance in evaluating the Argentine co-participation regime which is currently under negotiation.

Fiscal Decentralization, Human Development, Argentina

Abstract:
The dual economy model, built on classical foundations, served as the cornerstone of development theory for several decades after World War II. It subsequently came under neo-classical micro-econometric attack and has fallen into general disuse, at least within the Anglo-Saxon academic establishment. This paper presents a brief intellectual history of the framework and tries to respond to some of the criticisms that have been leveled against it - some peripheral, others central. We then proceed to inquire into the usefulness of the dual economy model for understanding both historical and contemporary real world situations and for development policy. We conclude by asking whether recent theoretical developments in economics offer an opportunity for reassessing the relevance of the model.
New-Classical Theory

Dualism, Economic Development, Classical Theory,

Abstract:
This paper explores ways of enlarging the measurement and understanding of Human Development (HD) beyond the relatively reductionist Human Development Index. From the extensive literature on well-being, we derived eleven categories of HD. Within each category, we then identified a potential set of indicators which were measurable and reflect performance with respect to that category. In order to reduce the number of indicators representing each category, we included only one for any set highly rank order correlated with each other, as well as including indicators not correlated with any other indicator in that category. Our aim was to retain only indicators which are broadly independent of each other.

We subsequently investigated the extent of correlation between the retained indicators and such generally accepted core indicators as the HDI, per capita income and under five mortality rates. We found that HDI and under five mortality performed equally well in eliminating additional indicators, while per capita income did somewhat less well. A further consolidation of indicators, possibly with the help of principal components analysis applied to each category, should help us identify typologies of countries concerning success or failure with respect to the various dimensions of HD.

Human Development, Quality of Life, Comparative Country Performance

Abstract:
This paper seeks to examine the interdependence between economic growth (EG) and human development (HD). It is concerned with changes in per capita income and its two-way relationship with the basic societal objective of human development. Regressions across various Latin American countries are run for 1960-92. Country performance is separated into virtuous/vicious cycles or HD/EG lopsidedness. The study makes an attempt to correct the commonly held view that ensuring increases in economic growth automatically leads to advances in human development. Human development has to occur prior to or simultaneous with improvements in economic growth, if a country is to reach a virtuous cycle. The Latin American experience indicates that a balanced approach to development has to be adopted. It is imperative to focus on human development from the outset of any reform program, as policies that emphasize economic growth alone are futile in sustaining high levels of human development.

Human Development, Economic Growth, Latin America

Abstract:
This paper explores the two-way links between Economic Growth and Human Development by examining the performance of some countries which have been successful in both dimensions and a few which have not. The specific aim is to examine the historical experience of six countries in order to determine how a system can move to a situation in which improvements in Human Development accompany and support higher rates of growth which, in turn, contribute to further improvements in Human Development as the basic societal objective.

Economic Growth, Human Development, Comparative Country Studies

Abstract:
This study presents a comparative analysis of farmers' organisations in Korea and Taiwan during 1950-80 in order to help us understand the role of group behavior in affecting development outcomes. It highlights the linkages between group behavior, parastatal organisational structures and economic performance. The paper examines the historical and political economy contexts that led to the creation of both countries' farmers' organisations and highlights the institutional characteristics that impacted their operational effectiveness. The study discusses elements in internal and external policies that affected group motivation and traces the implications of such differences in group behavior for bottom line performance. Though there existed many similarities in both organisational structure and operations, it is argued that differential intra-group behavioral dynamics led to differences in agricultural performance. Although, with the declining importance of agriculture, the relative importance of such organisations has declined in recent years, the study is relevant for developing countries at every stage of development.

Farmers' Organizations, Korea, Taiwan, Group Behavior

Abstract:
At the very time that professional skepticism concerning the effectiveness of foreign aid has reached new heights, donors seem to be ready to substantially increase the volume of aid they are willing to make available. This paper attempts to address this paradox by first examining the record of aid in the past, distinguishing between cross-country regressions and select country experience. It subsequently proceeds to propose the establishment of a new modus operandi for foreign aid, based on a much more passive, bankerlike posture by donors, leaving the initiative for defining what reforms are feasible, plus the establishment of self-conditionality, to third world recipients before they approach the international community of donors.

foreign aid, development

Abstract:
The labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ratios. In such situations, the marginal product of labor is likely to fall below a bargaining wage, related to the average rather than the marginal product. The reallocation of such disguisedly unemployed workers by means of balanced intersectoral growth ultimately permits the entire economy to operate on neo-classical principles. Finally, the paper introduces open economy dimensions, indicates the existence of other labor surplus sub-sectors and briefly responds to neo-classical critiques on both theoretical and empirical grounds.

Development theory, labor markets

Abstract:
Migration of the unskilled clearly benefits the origin country, mainly due to the flow of remittances but also if the departure of some raises the ability of others to migrate. This depends on whether trade is a complement or a substitute for migration. The impact of such flows on the destination country is more ambiguous, although most research indicates that wages and employment are not likely to be seriously affected.

Migration of the skilled is ambiguous with respect to the origin country since the impact of brain drain on local development must be weighed against the signaling effect for additional education plus the contribution of remittances. With respect to the destination country, the inflow of skilled labor is generally considered an unambiguous plus as it contributes to the enhancement of productivity.

The paper concludes with policy recommendations aimed at seizing the opportunities arising from the fact that international migration remains the most constrained element of globalization.

Migration, Trade, Globalization

Abstract:
This paper adopts a more expansive definition of Human Development than that encompassed by the Human Development Index in order to explore diverse country patterns of behavior in relation to these broadened dimensions. We proceed by first identifying the dimensions to be investigated and subsequently present the methodology adopted for clarifying country behavior with respect to these dimensions. Countries are shown to differ substantially in terms of their choices among the independent dimensions of well-being which may or may not be constrained by history or culture. We then group countries by level of per capita income, experience with internal conflict, region of the world, oil, wealth, distance from the equator, distance from the sea, in the search for identifiable differential behavior patterns by country typology. We find that choices do exist across the board. For example, even low income countries can achieve well in all categories while high income countries do poorly.

Human Development, Quality of Life, Happiness, Capabilities, Country Behavior

Abstract:
This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions are important determinants of adverse development outcomes. The role of decentralization, democracy and markets as potential remedies are discussed. The paper then presents a number of preliminary hypotheses on the relationship between diversity and instability in order to stimulate future research.

Africa, diversity, economic growth, instability

Abstract:
This paper suggests that area studies and economics have a better chance to be married successfully if we shift our attention from the exclusive emphasis on economic growth towards improvements in human development, especially the much broadened version of that concept. Different areas are shown to differ substantially in terms of the choices they make among the various independent dimensions of well-being and the various indicators within each dimension. The particular characteristics of each area play an important role in determining the choices societies make and the extent to which they are constrained by their initial conditions.

economics, human development, area studies

Abstract:
Arthur Lewis's seminal 1954 paper and its emphasis on dualism appeared at a time when neither the work of Keynes and Harrod-Domar nor the later neoclassical production function of Solow seemed relevant for developing countries. As a consequence, his model, rooted in the classical tradition, plus its many extensions, generated an extensive literature at the center of development theory. The approach also encountered increasingly strong criticism, some of the 'red herring' variety. Some, spearheaded by neoclassical microeconomists like Rosenzweig, raised serious challenges and focused especially on its labor market assumptions. This paper reviews this landscape and asks what theoretical or policy relevance the Lewis model retains for today's developing countries.

Abstract:
This paper examines the causes of Taiwan's exceptional economic performance, focusing on the influence of organizational and policy choices and how Taiwan's example differs from those of more typical less-developed countries. After briefly citing cultural factors as proposed by his late colleague John Fei, Ranis proceeds to explore the issues of organic nationalism, natural resource endowment, access to foreign capital and other political factors that have produced such economic success. The author demonstrates how Taiwan's unique combination of strong organic nationalism, meager natural resources and limited access to foreign capital helped curb the Extended Dutch Disease phenomenon endemic in many LDCs. In addition, the government's non-oscillatory, relatively laissez-faire fiscal and monetary policies, encouragement of technological innovation, plus generous educational, R&D and infrastructural expenditures have contributed to low rates of inflation and high rates of GDP growth. The paper finally suggests a positive correlation between democracy and economic development.

Abstract:
This paper explores the links between economic growth and human development, identifying two chains, one from economic growth to human development, the other from human development to economic growth. The importance of various links in each chain are explored empirically with the help of cross-country statistics for the period 1970-92. Public expenditures on health and education, notably female, represent especially important links determining the strength of the relationship between economic growth and human capital development. The investment rate and income distribution are significant links determining the strength of the relationship running from development to economic growth. These two-way chains can generate self-reinforcing, virtuous or vicious cycles of development, as well as identifying lop-sided performers. Over time we find that lop-sided development seldom persists: countries initially in favor of economic growth lapse into the vicious category, while countries favoring human development advance into the virtuous category. This finding implies that, although both human development and economic growth should be jointly promoted, human development should be given sequential priority.