Notes

I. The Role of the State and Public Planning: Central Tasks
Maintain civilized order law and order provision of publicgoods

II. Rationale for Development Planning
Market Failure
Resource Mobilization
Psychological Impact
Foreign Aid

III Strengths of the Public Sector rep commonweal provision of public goods cap to improve equity

III Weaknesses of the Public Sector: public purpose pressure bureacracy

IV Failures in State Planning theory vs practice poor history

V What Markets Do allocate resources communicate - incentives - orchestrate

V Advantages or Strengths of the “Market Mechanism” spontaneous incentive to self-activation economic discipline

V Weaknesses or Disadvantages: “Market Failures” public goods not provided pop social issues bad - equity etc! prone to fail

Legal and Economic Factors Facilitating the Functioning of Markets property right currency stable legal framework freedom to operate a business

VI Development Roles of NGOs and the “not for profit” and Cooperative Sector
Nonprofit provididng financial and technical assistance

Potential comparative advantages of NGOs motives innovative flexible special knowledge trustworthy Why NGOs Fail own agenda lack adequate incentives fundraising problems no feedback

Weaknesses of the “Washington Consensus” equity issues; implementation problem over emphasize market underemphasize state

Lead to Santiago Consensus
Market based
Public sector based
Government resposible at national regional, local

VIII Corruption -
Appropriation of public – or private – resources for private profit or use through the use of official power, influence, or access.

theft personal use of property bribes discrimination nepotism Consequences of Corruption unfair income distribution impacts on well being

Solution free media and open democracy

Democracy and Development
Main conclusion?
Development --> Democracy, and