Public Administration

(Development Dynamics)

Development Administration
 Development
• Development is the most important concept defining the character
of the 3rd world.
• The term development administration originated with the
emergence of the newly independent countries that had come out
of colonial rule after the 2nd world war.
• The term first coined by [Link] in 1955.
• But formal recognition and elaboration of the concept done by
American Scholars.
• Scholars:- Fred W. Riggs, Edward W. Weidner, [Link] Palombara,
Albert Waterson etc.
• Development administration emerged as an independent discipline to
deal with the central issue of transforming the socio-economic conditions
of newly independent nations.
• Weidner defined it as
“the process of guiding an organisation towards the achievement of
progressive political, economic and social objective that are authoritatively
determined in one manner or the other”.

• Fred W. Riggs says that development administration covers the area from
“administration of development programmes to the methods used by large-
scale organisations, notably governments to implements policies and plans
designed to meet their development objective.
• To sum up, development administration is concerned
with:-
1. The formulation and implementation of plans, policies,
programmes and projects for national development
2. Development of administrative machinery and process
adequately suited to the task of national government
It is “an action-oriented and goal oriented administrative
system”.
Development administration and traditional administration

• Traditional administration concerned with “law & order” administration

• Distinctive character of development administration have been identified

by George Gant in terms of
– Its purpose :- change & innovation
– Its loyalties:- accountability to people
– Its attitude:- positive and innovation

• The law and order orientation of general/bureaucratic administration has

its own utility for the maintenance of the total system of administration.
• Even development administration will be nullity if there would be an
absence of law and order in a country.
Traditional administration Development administration
• Regulatory • Adoptive and dynamic
• Efficiency/economy- • Growth-oriented
oriented • Relationship-oriented
• Task-oriented • Flexible and changing
• Hierarchical structure • Participative decision-
• Centralised decision making making
• Status quo-oriented • Future oriented
 Nature
• The multifunctional nature of “development
administration” was ably described by J.N. Khosla
1) Formulation of development goals and policies
2) Programme formulation and programme management
3) Reorganisation of administrative structures and
procedures
4) Evaluation of results
5) People’s participation in development efforts
6) Promotion/growth of social and political infrastructure
 Public Administration
(Development Dynamics)

Concept, Theory & Approach

• Concept of development contains the answer to what
development is. Obviously, this cannot be value free. It will
always reflect notions of what ought to be understood by
development.

• These notions can be formulated as development

objectives either in terms of particular conditions which
must be achieved or in terms of a certain direction of
change.
 Theory of development
• It seeks to answer questions like
– How can the selective and specified developmental
objective be promoted
– What conditions will possible obstruct, delay progress
– What actors play dominant roles
• These are not value-neutral questions
 Strategy of Development
• It is an abstract notion referring essentially to the
actions and intervention that can be appropriately
used to promote strictly defined development
objective.

• These are value loaded.

Modernization Theory Dependency Theory

Theory

Market Orientation
World System Theory
Theory
 Modernisation Theory
• It is the first attempt to articulate the problem of development.
• Development is conceived as an evolutionary process
• The country that are found at the low stage of development are
advised to follow the development pattern of developed nations.
• Modernisation theorist outlined the western model of
development as indispensable solutions to the development
problematic of the 3rd world countries.
• They focused on economic growth accompanied by political
stability, not on social transformation itself.
• They suggested that the developing countries
should blindly follow the example of western
developed nations.
• The role of traditions was dysfunctional to
development and hence this has to be dispensed
with.
 Criticism of Modernisation Theory
• Critics pointed out that the early modernisation
theorists viewed ‘traditions’ as an obstacle to
development.
• They neglected external factors and conflict as source
of change.
• In the 1980s modernity theorist like Winston Davis and
Samuel Huntington treated traditions as an additive
factors of development.
• They suggest multidirectional paths of development.
 Dependency Theory
• First to challenge the main thesis of modernisation.
• This theory had its origin in Latin America in early 1950s.
• Economic aspect of ‘underdevelopment’ was given greater focus by
the dependency theories.
• They stressed that underdevelopment is the historical outcome of
the functioning of the capitalist system.
• The basic theoretical thrust was thus “capitalist penetration” leads
to and reproduces combined and unequal development of its
constitutive parts
• Classical dependency theorist -- Andre Gunder Frank, Samir Amin
• The flow of economic surplus to European and North American
developed countries kept 3rd world underdeveloped.
• In the historical process, the colonialist have made the 3rd world
‘dependent’ on the colonial powers.
• New dependency theorists viewed the nature of dependency in
socio-political terms.
• They focused on historical-structural aspects of dependency,
emphasising internal aspects, class conflict and the role of the state.
 World-System Theory
• The development of nation states is dependent upon
the expansion or the spread of their market control.
• In their view, the origin of ‘underdevelopment’ is
based upon the inclusion of 3rd world countries within
an unfair world capitalist system.
• Recommendation has been that a socialist world
government was the solution to the development
trajectories of 3rd world countries.
 Market Orientation Theory
• During 1980s & 1990s most of the developed countries
suffered from fiscal imbalance which they attributed to
overspending on welfare items.
• The focus now was to get away from ‘welfarism’ and
reduce the role of the state.
• According to this model, development means success
in the marketplace, with little or no attention paid to
the distributive effects of aggregate economic gains
either between or within countries.
 Other Approaches
Basic needs approach:-
• Originated during 1970s.
• Under this, development emphasis is shifted from a
singular concern with restructuring of the world
economy to that of restructuring of domestic economy.
• It focused on new internal economic order, primarily
aimed at the eradication of mass poverty and social
injustice.
Alternative modes of production perspective
• Originated in 1980s
• Under this, contemporary 3rd world societies
are seen essentially characterised by the
coexistence of sharply contrasting sectors.
Sustainable livelihood approach

Institutionalist approach

Feminist approach

Capability approach
 Public Administration
(Development Dynamics)

Changing Profile of Development

Administration
• Born in cold war era, development administration was mainly US-
Sponsored.
• Beginning of development administration  creation of new nations &
Speedy socio-economic reconstruction.
• Colonial system was found unsuitable for the accomplishment of the
global task of nation building.
• Development administration stood for definite and planned institutional
capacity to accomplish the specific goals of development through
formulation of appropriate policies, programme and projects and their
successful implementation.
• Participative, responsible and accountable management constituted the
essence of development administration.
 Characteristics
• Change orientation that is, bringing about socio-economic change
rather than maintenance of status quo.
• Goal orientation that is achieving progress in social, economic,
political and cultural goals.
• Commitment towards high morale and motivation in work to
achieve the development goals.
• Citizen-participative orientation, in enlisting popular support and
involvement in the formulation and implementation of
development programmes.
• Replacing or improving the administrative structures, methods ad
procedures for the effective realisation of development goals.
• Achieving effective coordination between the multiple
specialised units and programmes.
• Responding to the popular needs and demands
• Meeting the needs of the specific target groups like
women, children, tribal and small farmers etc.
1950-1970s
• State-Led Development

1980s
• Disillusion with the state

1990s
• Re-thinking in managing development
 1950s-1970s
(State-Led Development)
• Aim:- transforming lives of those living in the newly independent
developing countries and to attain the living standards of the Western
Countries.
• Focus on upgraded administrative system.
• Modernisation which was sought to be achieved was externally induced.
• Improving the administrative capacity was found to be central to
economic growth.
• The bureaucratic institutions developed more than the political
institutions and soon it was found that in many countries a new
“Bureaucratic Elite” had developed which was more powerful than even
the political class.
• As bureaucracy had centralised all powers, it started acting as an
interest group which advanced only its interest.

• 1973:- CAG was disbanded.

• The CAG conceptualisation of development administration was
criticised on several grounds.
• In place of systemic changes, turmoil proliferated throughout Asia,
Middle East, Latin America and Africa.
• The recession of the late 1970s and early 1980s led to the demise
of western developmental strategies.
 1980s
(Disillusion with the state)
• Scholars such as Gerald Caiden & Milton Esman, social scientist, policy
advisors and international institution such as world bank etc. continued to
enrich the field of development administration.
• They maintained continuity in the field.
• The 1980s was a radical turn in the concept of development administration
where scholars wanted administration to be flexible and people should be
included in the process.
• The state was considered as failure in carrying out development
administration.
• Debt was increasing on developing countries. Earlier strategies made them
economically dependent on the west.
• Emphasis was given on reducing the size of the public sector in developing
countries.
 1990s
(Re-thinking in managing development)
• Before 1990s, developing countries were faced with the debt crises and the
purchasing power of the governments eroded substantially.
• This precipitated crisis in early 1990s.
• Towards 1990s the very influential “New Right Philosophy” sprung up which was
neo-liberal and also the Public Choice Theory emerged that brought a new
paradigm to the concept of development administration.
• This led to the good governance concept.
• Neoliberal model of development was advocated which accords minimal role to
government.
• The major role of government was to ensure macroeconomic stability.
– Reduction of govt. institution and structures
– Decentralisation
– Multiplicity of institutions
World Development Report 1997 suggests a
two way approach
– The state should assume that much role only
which it can accomplish effectively.
– The public institutions should be strengthened to
raise the capability of administration
 Agenda for 21ST Century
• The area of development administration is highly dynamic and ever
changing field.
• In 21st century the problems faced by the citizenry are
multifaceted
• The agenda of development administration in the times to come is
quite challenging
• The challenge before political leaders and the administrators is to
achieve sustainable development and at the same time providing
basic human needs with limited resources.
• The development administration in the 21st century has to be such
that it enhances the capabilities of the individuals to attains their
full potential and to develop their human faculty.
• Nowadays, the discourse theory of development administration is doing
the rounds that asserts that development administration should have two
major criteria:-
– Human need based approach
– Sustainable approach

• They examined five strategies

– Liberal capitalism, communist, liberation theology, Islamic fundamentalism,
sarvodaya
• It was found that Sarvodaya was the only model that contained both
criteria and if implemented properly will lead to optimum result in
development administration.
 Public Administration
(Development Dynamics)
Anti-Development Thesis
&
Bureaucracy & Development
 Anti-Development Thesis
• The western countries started the path of ‘development’ in developing
countries assuming and claiming that there was underdevelopment in
these countries.
• This model of development was more capital intensive and technology
centred.
• This approach was countered by anti-developmental theorists.
• It is not against development but only against the western theory of
development in developing countries
• It was precursor to the Good Governance policy.
• Anti-development supporters argue that it is not the matter of identifying
most efficient way of delivering development but they questioned the
very concept of development.
• They opined that the real aim of western development is linked to
modernisation which is basically a way of increasing dependency of
developing countries on western countries.
• Development processes undermine and destroy the diversity of
social, cultural, economic and political systems.
• This diversity is replaced by externally imposed model of
development.
• They out rightly reject the western model of development
administration.
• They say there is no fixed approach to develop a country.
• It advocates for a strong involvement of civil society and community
based organisation.
• It is proposed by the scholars that when the development
projects are planned and framed then the local situation
of the countries should be given prime importance.
 Bureaucracy & Development
• Since development had been conceived as planned, state
sponsored and state-directed, the role of bureaucracy assumed
critical significance.
• Development both as process and end-result had been considered
to be dependent on a country’s administrative capacity.
• The role of bureaucracy was acknowledged as crucial, but the
advocacy was to modify Weberian Bureaucracy and substitute it by
development bureaucracy.
• The entire development administration movement revolved around
the crucial role of bureaucracy in bringing about speedy socio-
economic change.
• Viable political institutions and strong political elite are necessary to
restrain the tendency of the bureaucracy to gain autonomous power.
• S.N. Eisenstadt writes about the tendency of bureaucracy in the new
states “not only to monopolise some central political functions but also
to become a major interest group”.
• Lucian Pye feared that over-developed bureaucracy might lead to “a
greater imbalance between the administrative and the political”.
• Fred Riggs traced the root of administrative malfunctioning in the
developing countries to the absence or weakness of extra-bureaucratic
institutions in those countries.
• Thus to correct the imbalance of development bureaucracy a power
model of political development has been suggested. This model focus on
the role of political elite, development of autonomous political institutions
and effective popular participation in authoritative decision-making.
• Study of Lee Sigelman points out that highly developed
bureaucracies, measures in terms of administrative efficiency do
not dominate less developed polities.
• There is strong correlation between low or weak-performing
bureaucracy and bureaucratic dominance.
• It is inefficient bureaucracy that poses a threat to political
development.
• This study suggests that an efficiency-oriented bureaucracy does
not compete with political institutions
• In the context of developing countries bureaucracy and
development are complementary and inter-dependent.

• In order to sensitise the bureaucracy for development

process it is suggested to provide them training in
attitudinal changes.
 Public Administration
(Development Dynamics)

State vs. Market Debate

• State vs. market debate is a debate about the respective roles of the state
and the market in the society and economy.

• The theoretical base for this debate lies in the Public Choice approach.
• This approach argues for the “institutional pluralism”. In the provision of
public goods and services to promote the consumers’ preferences.
• It states that the administrators and politicians are concerned with the
self-interest rather than public interest.
• It questioned the role of state and the very basis of the govt.

• PCA has given rise to a new paradigm “NPM” with a dominant market-
orientation.
• This calls upon the govt. to play a more and more enabling role rather
than the traditional “doing” role.
• Following Events in the 20th century marked the large
scale intervention of state in society and economy:-
– Russian revolution of 1917
– Great depression of 1930s
– Destruction caused by 2nd world war
– Emergence of newly independent country
• Initial phase of development was state-led.
• In the developed countries of West Europe and USA, the state
intervened to implement the Keynesian Theory.
• Keynes stated that state intervention through huge investment is
necessary to ensure full employment as it is not automatic in
capitalism.
• The success of state intervention in socialist countries greatly
influenced the policy-makers in the favour of state intervention.
• In newly independent countries, state intervened to accelerate the
process of development.
• These countries did not even possess the preconditions for
development.
 Failure of State
• Huge growth in public expenditure  high inflation  high taxation
• Fiscal crisis of the welfare state
• State failed in providing fundamental goods and services
• Collapse of USSR and East Europe
• High growth rate by Japan, Singapore, South Korea which have
adopted a policy of limited state intervention
• Dismal performance of various public enterprise
• Excessive state intervention led to market distortions, inflated
bureaucracy and corruption.
• Failure of state led to Liberalisation, privatisation and globalisation
• The role of state is not denied, it is argued that such intervention must
be ‘market friendly’.
• The world bank report (1991) explained the meaning of ‘market friendly’
state intervention as follows:-
– Intervene reluctantly i.e. allowing market to work unless it is demonstrably
better to step in.
– Apply checks and balances
– Intervene openly
• However, there are also various problems in the market regulated
system:-
– Widespread imperfections in market of developing economies.
– Market decisions do no ensure optimum allocation of resources
– Market cannot ensure equilibrium between aggregate demand and aggregate
supply
– Market mechanism ignores equity.
• The emerging view is that the market must be allowed to work
wherever it can function efficiently and State must step in
wherever market cannot.
• The world bank report (1997) endorsed the same view.
• The report mentioned 5 fundamental task of govt.:-
– Establishing a foundation of law
– Maintaining macroeconomic stability
– Investing in basic social services and infrastructure
– Protecting the vulnerable
– Protecting the environment
 World Bank Report (1991)
“A central issue in development is the interaction between govt. and market.
This is not a question of intervention versus laissez faire – a popular dichotomy.
Competitive markets are the best way yet found for efficiently organising the
production and distribution of goods and services.
Domestic and external competition provide the incentives that unleash
entrepreneurship and technological progress.
But market cannot operate in vacuum – they require a legal and regulatory
framework that only govt. can provide.
And, at many other tasks, markets sometimes provide inadequate or fail altogether.
That is why government must, for example, invest in infrastructure and provide
essential services to the poor.
It is nor a question of state or market; each has a large and irreplaceable role.”
 Public Administration
(Development Dynamics)

Impact of Liberalisation on
Administration in developing countries
• When a nation becomes liberalised, the economic effects can be intense
for the country and as well as for the investors.
• Economic liberalisation is relaxing the government regulations in a
country to allow the private sector companies to operate business
transactions with fewer restrictions.
• With reference to the developing countries, this term denote to opening
of economic borders to MNCs and foreign investment.
• There are lot of barriers in emerging market countries such as legal
issues, tax laws, foreign investment restrictions.
• The economic liberalisation begins by relaxing these obstacles & controls
• This often involves some form of deregulations and a privatisation of
corporations.
• The policies and programmes are still to be determined and formulated by
the state only in the favour of social justice and development.

• The beliefs in ‘Government by the Market’, opined by Peter Self (1993),

rest upon the proposition that the market system is inherently a better
method of satisfying human wants and aspirations than recourse to
government.

• The State needs to be regulatory in nature, providing for mechanisms for

ensuring efficiency, setting standards of service, removing market
distortions, providing appropriate regulatory/legal framework for players
in the market; and protecting the interests of consumers, employers,
employees, and the other stakeholders.
 Positive Impact
1. Free flow of capital:- liberalisation has improves flow of capital
into the country which makes it inexpensive for the companies to
access capital from investors. This leads to higher growth rate.

2. Political risks reduced:- liberalisation policies in the country

lessens political risks to investors. The govt. can attract more
Foreign investment through liberalised economic policies.

3. Diversification for investors:- in a liberalised economy, investors

gets benefits by being able to invest a portion of their portfolio
into a diversifying asset class.
 Negative Impact
1. Destabilization of the economy:- tremendous redistribution of economic power
and political power leads to destabilizing effect on the entire economy.

2. Threats from MNCs:- prior to liberalisation, MNCs did not play much role in a
country’s economy. On account of liberalisation, competition has increased.
MNCs are big which has turned out a threat to local firms.

3. Technological impact:- rapid increase in technology makes small scale industries

hard to survive.

4. Mergers and acquisitions:- these are increasing day-by-day. It leads to re-skilling

and cast burden on the capital of the company.
• Osborne and Gaebler (1992) in their work Reinventing
Government have made a case for government having a
key role in restructuring of markets through:-
– Setting rules in market place
– Facilitating the provision of information
– Augmenting demand
– Catalysing private sector supplies and new market sectors
– Creating market institutions
– Risk sharing; and
– Regulating through application of market-oriented incentives
 Public Administration
(Development Dynamics)

Women Empowerment: Self Help

Movement
• Self Help Group and micro credit movement have initiated in the
year 1975 at Bangladesh by Mohammad Yunus.

• According to NABARD, “SHG is a homogenous group of rural poor,

voluntary governed to save whatever the amount they can
conveniently save out of their earning and mutually to contribute
to a common fund to lend to the members for making their
production and emergency consumption credit needs”.

• SHG movement aims to provide livelihood security as well as

betterment in livelihood of poor.
• A self help group (SHG) is a small voluntary association of poor
people.
• It can be an all women group, all men group or a mixed one and
micro credit is given to them for their enterprises.
• However, it has been found that women’s groups perform better in
all the important activities of SHG.
• SHG in India are a catalyst for the economic empowerment of
women and poverty eradication.
• It is usually composed of 10-20 women who make regular small
contributions of their savings for a period of time.
• Grameen bank of Bangladesh is pioneer of micro finance providing
institutions.
 Women Empowerment
• Women empowerment occurs in real sense when women achieve
increased control and participation decisions making that leads to their
better access to resources it often involves the empowered developing
confidence into heir own capacities.
• Women empowerment aims at realising their identities, power and
potentiality in all spheres of lives
• In the past, the positions of women was miserable in the society.
• Women of today are not like the early days.
• SHG have been emerged as powerful instrument in order to alleviate
poverty and for the empowerment of women.
• Progress of any nation is inevitably linked with social and economical
plight of women in that particular country.
• SHG phenomenon definitely brings groups consciousness among
women, sense of belongingness, adequate self confidence.
• She develops sufficient understanding about her own rights, roles,
privileges and responsibilities.
• When she becomes a member of SHG, her sense of public
participation, enlarged horizon of social activities, high self-esteem,
self respect and fulfilment in life expands.
• SHG is an effective instrument to empower women socially and
economically which ultimately contributes in the overall
development of country.
• Thank You

• Next Topic:- Personnel Administration

Subscribe || Like || Comment