Khandakar Elahi | University of Technology (original) (raw)
Papers by Khandakar Elahi
Over the past several decades, globalisation has facilitated extraordinary expansions in worldwid... more Over the past several decades, globalisation has facilitated extraordinary expansions in worldwide human interactions. As a result, many social science scholars argue, aggressively perhaps, that the traditional nation-state model has become essentially obsolete. To correct this consequence, suggestions have been made for incorporating new actors in the nation-state governance model, who include supra-national agencies and inter-governmental bodies, executives of business corporations and civil society organisations. This paper argues that the suggested induction of new actors in the governance machinery is not necessarily needed. But the overwhelming globalising phenomenon does demand modernising the existing nation-state model so that it can adapt to the evolving worldwide human affairs. In this respect, the paper prescribes two electoral measures specifically related to democracy: (i) making electoral rule truly democratic and (ii) creating level-playing field in politics.
This short communication argues that Arrow’s Social Choice Theory, popularly known as the Arrow I... more This short communication argues that Arrow’s Social Choice Theory, popularly known as the Arrow Impossibility Theorem (AIT), is a misnomer. For, rational social choices are perfectly possible within Arrow’s own conceptual framework. Using Locke’s theory of human understanding, the paper additionally highlights why ordinary academics fail to see this obvious truth.
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Over the past several decades, unprecedented developments in modern sciences and technologies hav... more Over the past several decades, unprecedented developments in modern sciences and technologies have caused extraordinary expansion in worldwide human interactions, particularly economic. This global phenomenon is described by the buzzword globalisation, which, it is aggressively argued, has made the traditional nation-state model essentially obsolete. Accordingly, suggestions have been made to incorporate new actors, like business corporations, civil society organisations, modern media etc., in order to improve governance of the modern nation-state. This paper disagrees with this view and argues that the changed international context does not necessarily need inducting and introducing new actors in the governance machinery. But globalisation process does demand modernising the existing nation-state model so as to adapt it to the evolving national and international situations in human affair. In this respect, the paper prescribes three political measures: (i) making electoral rule truly democratic, (ii) creating level-playing field in politics and (iii) formulating public policies ordained by the principle of democracy.
Two conceptual errors, this paper argues, are responsible for the continued controversy over cust... more Two conceptual errors, this paper argues, are responsible for the continued controversy over customary land ownership. First, two related but distinct concepts, ‘customary land’ and ‘communal ownership’, are treated synonymous. In other words, the existence of customary land is understood to imply customary ownership.
Second, countries grappling with this controversy were mostly European colonies. They used to be inhabited by many tribes, who considered them as independent nations. This suggests that the lands colonised by the Europeans did not constitute single nation-states, as they exist today. The resident tribes achieved political independence by forming one nation-state, which implies the surrender of their independent status. This political change is supposed to transform the pre-independence distribution of land ownership in the country. More specifically, the national government is supposed to be the owner and distributor of land rights in the country. The existing customary land literature seems to be overlooking the importance of this point.
Finally, the paper suggests a general principle that may have the potential to help resolve the controversy. This principle, developed based on John Locke’s theory of property right, says that property in any object is created by the employment of human labour. In other words, a man can claim a piece of land as his property only if he has made this natural gift useful to him and/or others by expending his physical and/or mental labour. This Lockean principle may be used to generate solutions to the continuing Herculean controversy over customary land ownership.
Microfinance is emerging as an integral part of the new development paradigm, described by the ph... more Microfinance is emerging as an integral part of the new development
paradigm, described by the phrase "participation and development. "Although the
idea has become quite popular among donor agencies, development practitioners,
and academicians, theoretical premises on which this idea is founded seem entirely
unexamined. Accordingly, this article investigates the academic merits, as well as
potential consequences, ofthis popular poverty alleviating model from the supplyside
perspective and asks a provocative question: Do the microfinance ventures
have features which suggest that the establishment ofthis new finance industry in
the Third World countries might further complicate their pervasive poverty
problems? The answer to this question appears affirmative to be affirmative. First,
the microfinance idea is founded on two theoretical premises, both ofwhich are
very controversial. Second, the lack ofmicrocredit is not the cause ofthe Third
World's deplorable poverty situation--a fact that suggests that the supply of
microcredit cannot alleviate poverty in these countries. Finally, the promotion of
the microfinance ventures in the Third World has potentials to create private
groups, which have vested interests in perpetuating their prevailing poverty
situation.
Microfinance, a recently coined vocabulary in rural finance literature, refers to small-loan comm... more Microfinance, a recently coined vocabulary in rural finance literature, refers to small-loan commercial banking
facilities created specifically for meeting the financial needs of the poor. This financing program is different from
the traditional microcredit program in that the former has profit motives, while the latter being non-profit
NGOs, do not. Because of this commercial feature, microfinance programs are susceptible to criticism. To
undermine the severity of this criticism, suggestions are being made to treat them as social-consciousnessdriven
capitalist ventures and their owners as social entrepreneurs. This paper investigated this overwhelming
proposition, particularly in the light of Adam Smith's moral and economic theories. The analysis seems to suggest
that the proposition has difficulties both from theoretical and policy-making perspectives.
Customary land tenure (CLT) systems, pervasively practiced in many developing countries of Africa... more Customary land tenure (CLT) systems, pervasively practiced in
many developing countries of Africa, Asia, Latin America and
Oceania, are often considered an impediment to agricultural
development and rural poverty alleviation. This is because,
according to the conventional economic wisdom, individuals‟
ability and willingness to use productive resources are positively
related to ownership. Thus, the CLT systems are deemed
incompatible with the goal of encouraging individual aspirations
required for improving agricultural production, since lands are
owned communally. To overcome this difficulty, the
international donor community has recommended and helped
implement policy measures to individualise customary lands.
The outcomes of these policy measures, however, have not
turned out as expected. The basic reason for these disappointing
policy outcomes, this paper argues, is that the neoclassical
production theory, the conceptual foundation of this
individualisation policy, is inappropriate for analysing the issues
of economic efficiency and equity in the CLT system.
Behavioural economics (BE) appears to be founded on three alleged attributes of Homo Economicus (... more Behavioural economics (BE) appears to be founded on three alleged attributes of Homo Economicus (HE): (i) unbounded rationality, (ii) unbounded willpower and (iii) unbounded selfishness. It promises to improve economics’ theoretical insights for predicting field phenomena better and suggesting better
policy prescriptions by removing these alleged attributes. To evalaute this promise, behavioural reservations were directly inserted into the neoclassical partial equilibrium model of demand and suply. The exercise suggests that relaxation of
stronger versions of the neoclassical consumer and producer models, which the
behavioural economists are criticising, does not change the essential predictive
power of the basic neoclassical market model. Behavioural criticisms concern curvatures of demand and supply curves, not their slopes. Since curvature is an empirical issue, behavioual criticosms hardly affect the theoretical predictions of
neoclassical economics.
In many countries of Africa, Asia and South America, an overwhelming proportion of earth surface ... more In many countries of Africa, Asia and South America, an overwhelming proportion of earth surface has remained undemarcated, unrecorded and unregistered. This territory is popularly known as customary land, whose ownership is claimed by the tribe/clan living in the area for generations.
This vast track of land contains many valuable economic resources, including precious minerals, natural gases and oils etc., which are vital for accelerating the process of economic growth and poverty alleviation. Accordingly, since 1960’s, supranational organisations, including the World Bank, FAO and UNDP, began investing substantial sums of monetary and technical resources on developing these lands. The general policy principle they pursued is called individualisation. Under this scheme, the communally owned lands are first demarcated and recorded, and then registered under the names of individuals using them. Unfortunately, these policies, the customary land literature suggests, have failed to produce satisfactory outcome.
This paper puts up two points, which might be helpful to identify problems associated with the current policy regimes. First, the prevailing perception of customary land needs refinement, because it is conceptually confusing. Second, ownership of any property, including land, is basically a legal and political issue, meaning the customary land controversy belongs to the jurisdiction of legal and political philosophy. The paper suggests that John Locke’s theory of property right has necessary policy insights that might offer a kind of sustainable solution to this complex customary land controversy issue.
Globalisation, a social vocabulary, came in wide-use in the 1980’s. Although explained with vivid... more Globalisation, a social vocabulary, came in wide-use in the 1980’s. Although explained with vivid imaginations, the term can be described simply as a socioeconomic and political process of expanded human interactions. During the past few decades, the process accelerated at an extraordinary speed because of unprecedented developments in science and technology, particularly in the area information and communication technology. The most visible outcome of these scientific and technological developments is phenomenal growth in worldwide economic transactions.
While the process of globalisation has substantially enlarged the value of economic wealth and improved living standards in the industrially advanced countries, the developing world has lagged far behind in reaping its benefits. The reason, the international development community identified, is poor governance. The process of globalisation, it is argued, has dramatically changed the socioeconomic and political circumstances of governances. More specifically, the process has profoundly altered the traditional nation-state’s premises of politics as well as its ground-rules. Traditional local, national and international political institutions are no longer considered adequate to meet the challenges created by the process of industrial development. Therefore, governance of the nation-state needs new definition, which ought to include new actors, like national and multinational corporations, civil society organisations, public media etc.
In this context of globalisation, the paper investigates the nation-state’s role under the assumption that the prevailing governance perception is ambiguous, unconvincing and impractical. Fixing the nation-state’s governance mechanism does not need accommodating new actors. All it needs is to effectualise the traditional model by compelling political actors adhere to the fundamental principles of democracy. In order to establish this idea, the paper uses Rousseau’s social contract theory, which underlines the main objective of democratic governance and clarifies fundamental relationship among citizens, body politic and government. Finally, the paper prescribes three measures for making the prevailing nation-state model more effective: (i) making electoral rule truly democratic, (ii) creating level-playing field in politics and (iii) formulating public policies ordained by the principle of democracy.
This is my response to Olivier Rubin's critique of my paper 'Entitlement failure and deprivation:... more This is my response to Olivier Rubin's critique of my paper 'Entitlement failure and deprivation: a critique of Sen's famine philosophy'. I have examined his criticisms in the light of Hume's philosophy of human knowledge and consider them weak in logical content.
Purpose -Since the 1990s, most bilateral and supranational donor agencies have been pursuing "goo... more Purpose -Since the 1990s, most bilateral and supranational donor agencies have been pursuing "good governance" as their priority development policy. Yet, in their own evaluation, the speed of progress of this gargantuan governance project has remained unsatisfactory. The purpose of this paper is to examine the causes of this slow progress by scrutinizing its conceptual foundation. Design/methodology/approach -The analytical approach of this paper is purely speculative, which is occasionally supported by real world data and socio-political evidences. Since the paper uses Governance for Sustainable Human Development -A UNDP Policy Document as the ruling reference material, the paper has been so titled. Findings -First, defining governance as a process misrepresents its problematic nature, which is primarily political and therefore diverts world attention from its root-causes. Second, governance literature treats the state and government as synonymous and by that confuses their political nature. Finally, the paper assigns an all-impressing role to civil society organizations (CSOs) in promoting good governance in the developing world. However, experience shows that they are deeply involved in the creation and continuation of poor governance in the developing country. Practical implications -Humankind now lives in a global village divided into territorially demarcated political units. Accordingly, the peace and prosperity of the global village critically depend upon how democratically each of member state is governed. Good governance in turn hinges on politically trained intelligent and ethical individuals running public administration. The analytical opinions of the paper underline this notion. Originality/value -The paper shows that the ongoing development discourse on good governance revolves around a faulty conceptual foundation. By reviewing the major ideas of the governance paradigm, it clarifies the conceptual connections between political theories and democratic governance.
Many social scientists, particularly in North America, believe that democracy hinders development... more Many social scientists, particularly in North America, believe that
democracy hinders development. This paper discredits this obscure
opinion by clarifying the conceptions of democracy, capitalism and
development: Democracy, the theory of a political system of the non-communist state, is founded on the political wisdom that people are the sovereign authority of the state, and government, which executes this sovereign power, is their deputy. Capitalism, the economic system of the non-communist state, rests on the belief that an economy prospers rapidly if individuals are allowed to own and accumulate private property, because human beings are selfish by nature. Development is the performance of capitalism. Since democracy promotes individual’s liberty, including the
right to own and accumulate private property, it is supposed to be most agreeable to capitalism - the most trusted model of affluent society.
In social science, a passionate debate continues about the expected effect of democracy on develo... more In social science, a passionate debate continues about the expected effect of democracy on development. Many authors believe that democracy dampens development. This paper discredits this view by clarifying the debate’s critical conceptions - democracy, capitalism and development. In the non-communist state, private individuals inspire economic development, because they own the major portion of the nation's resources. Since individuals are selfish by nature, they ordinarily improve their economic welfare if they enjoy ‘fair freedoms’ meaning that the social environment of fair freedom is the key to economic development in the non-communist state. Capitalism guarantees this environment, which suggests that the desirable functioning of capitalism is the clue to economic development. Democracy is the only system of governance that
can guarantee long term peaceful functioning of the capitalist economy. Thus, a nation cannot remain poor if she is governed according to the principles of democracy.
This paper examines the academic soundness of the Pareto welfare criterion as a normative rule f... more This paper examines the academic soundness of the Pareto welfare
criterion as a normative rule for evaluating alternative economic inequality scenarios and suggests that the criterion has several weaknesses, which weaken its usefidness. First, the Pareto principle is of limited use in the inequality debate because labor markets hardly satisfy the conditions of perfect competition, the pivotal assumption of the theory. Second, the proposition that competitive equilibrium
leads to the "common good" of society is difficult to defend. Third, the
Paretian welfare economics barely answers the questions society demands, because perfect competition does not guarantee fairness in the determination of relative prices in the initial situation of income distribution. Fourth, in the distribution theory, the marginal productivity principle determines the rewards to the factors of production. If we assume that rent, wage and interest incomes are determined
by this theory, then questions arise about how profits, the potentially huge surpluses generated by the businesses, are distributed. Fifth, income distribution, being a public policy topic, is a political issue. However, Pareto's primary motivation in formulating the principle was to alienate the income distribution debate from political and policy discourses. Finally, by invoking the Pareto principle, economists are in fact avoiding the real issues of the public debate on personal
distribution of income. Personal income distribution truly refers to division of income generated by a group of people working together and therefore, ought to be analysed with reference to the sector of employment. Thus, Tommy Franks' earning should be compared with that of a private, while an ordinary worker's salary should be compared with that of the CEO. History testifies that the public
earning structure is much more equitable than that of the private sector. This poses a very serious question: Which earning structure reflects improvement in
Customary land tenure (CLT) is widely practised in many developing countries, including within Me... more Customary land tenure (CLT) is widely practised in many developing countries, including within Melanesia. This system differs from the more market-oriented tenurial arrangement, called here 'individualised land tenure' (ILT), with respect to ownership of land resources. Under CLT, land resources are owned by a kin group or a collection of kin groups and administered according to the unwritten customs of the concerned community. Group members retain use-rights, which they can enjoy hereditarily. In contrast, under ILT, lands are individually owned and publicly administered. Owners are allowed to exercise their rights however they like within the rules established by the government. The contemporary literature on CLT overwhelmingly portrays it as an impediment to rural development and economic growth. The basic reason, it is said, is the tenurial insecurity that discourages rural people from working harder to better their socioeconomic condition. This conventional wisdom, the paper argues, is ‘conceptually biased’. It rests on the assumptions of neoclassical microeconomic theory, which are inappropriate for analysing customary land issues. First, this theory assumes that the institution of private property motivates individuals in their pursuit of financial gain. Second, human beings are assumed to be selfish by nature, particularly with respect to wealth creation. The customary tenurial system, as practiced in many remote rural areas of developing world, shares neither of these premises. Therefore, the paper concludes that the characteristic policy recommendation for individualisation of customary land is conceptually biased.
Keywords: Customary Land, Group Ownership, Individualised Ownership, Neoclassical Economics, Conceptual Bias
Journal of Development Studies, May 2006
ABSTRACT This paper insinuates the conceptual foundation of Sen’s entitlement approach by pinpoin... more ABSTRACT This paper insinuates the conceptual foundation of Sen’s entitlement approach by pinpointing its major weaknesses. First, Sen’s critique of FAD is inadequate because speculative,
not actual, supply and demand forces determine short-run commodity prices. Second, Sen’s idea of ‘exchange entitlement’ is inconsistent with the principles of capitalism, since this economic
system operates on the conceptual and legal framework of voluntary exchange. Third, if food is considered as an entitled commodity, other basic necessities of life, such as healthcare, education etc. could claim the same status. Finally, the approach is founded on a hidden hypothesis that income distributions in non-communist states are economically and politically optimal.
Development in Practice, 2006
Over the past several decades, globalisation has facilitated extraordinary expansions in worldwid... more Over the past several decades, globalisation has facilitated extraordinary expansions in worldwide human interactions. As a result, many social science scholars argue, aggressively perhaps, that the traditional nation-state model has become essentially obsolete. To correct this consequence, suggestions have been made for incorporating new actors in the nation-state governance model, who include supra-national agencies and inter-governmental bodies, executives of business corporations and civil society organisations. This paper argues that the suggested induction of new actors in the governance machinery is not necessarily needed. But the overwhelming globalising phenomenon does demand modernising the existing nation-state model so that it can adapt to the evolving worldwide human affairs. In this respect, the paper prescribes two electoral measures specifically related to democracy: (i) making electoral rule truly democratic and (ii) creating level-playing field in politics.
This short communication argues that Arrow’s Social Choice Theory, popularly known as the Arrow I... more This short communication argues that Arrow’s Social Choice Theory, popularly known as the Arrow Impossibility Theorem (AIT), is a misnomer. For, rational social choices are perfectly possible within Arrow’s own conceptual framework. Using Locke’s theory of human understanding, the paper additionally highlights why ordinary academics fail to see this obvious truth.
[
Over the past several decades, unprecedented developments in modern sciences and technologies hav... more Over the past several decades, unprecedented developments in modern sciences and technologies have caused extraordinary expansion in worldwide human interactions, particularly economic. This global phenomenon is described by the buzzword globalisation, which, it is aggressively argued, has made the traditional nation-state model essentially obsolete. Accordingly, suggestions have been made to incorporate new actors, like business corporations, civil society organisations, modern media etc., in order to improve governance of the modern nation-state. This paper disagrees with this view and argues that the changed international context does not necessarily need inducting and introducing new actors in the governance machinery. But globalisation process does demand modernising the existing nation-state model so as to adapt it to the evolving national and international situations in human affair. In this respect, the paper prescribes three political measures: (i) making electoral rule truly democratic, (ii) creating level-playing field in politics and (iii) formulating public policies ordained by the principle of democracy.
Two conceptual errors, this paper argues, are responsible for the continued controversy over cust... more Two conceptual errors, this paper argues, are responsible for the continued controversy over customary land ownership. First, two related but distinct concepts, ‘customary land’ and ‘communal ownership’, are treated synonymous. In other words, the existence of customary land is understood to imply customary ownership.
Second, countries grappling with this controversy were mostly European colonies. They used to be inhabited by many tribes, who considered them as independent nations. This suggests that the lands colonised by the Europeans did not constitute single nation-states, as they exist today. The resident tribes achieved political independence by forming one nation-state, which implies the surrender of their independent status. This political change is supposed to transform the pre-independence distribution of land ownership in the country. More specifically, the national government is supposed to be the owner and distributor of land rights in the country. The existing customary land literature seems to be overlooking the importance of this point.
Finally, the paper suggests a general principle that may have the potential to help resolve the controversy. This principle, developed based on John Locke’s theory of property right, says that property in any object is created by the employment of human labour. In other words, a man can claim a piece of land as his property only if he has made this natural gift useful to him and/or others by expending his physical and/or mental labour. This Lockean principle may be used to generate solutions to the continuing Herculean controversy over customary land ownership.
Microfinance is emerging as an integral part of the new development paradigm, described by the ph... more Microfinance is emerging as an integral part of the new development
paradigm, described by the phrase "participation and development. "Although the
idea has become quite popular among donor agencies, development practitioners,
and academicians, theoretical premises on which this idea is founded seem entirely
unexamined. Accordingly, this article investigates the academic merits, as well as
potential consequences, ofthis popular poverty alleviating model from the supplyside
perspective and asks a provocative question: Do the microfinance ventures
have features which suggest that the establishment ofthis new finance industry in
the Third World countries might further complicate their pervasive poverty
problems? The answer to this question appears affirmative to be affirmative. First,
the microfinance idea is founded on two theoretical premises, both ofwhich are
very controversial. Second, the lack ofmicrocredit is not the cause ofthe Third
World's deplorable poverty situation--a fact that suggests that the supply of
microcredit cannot alleviate poverty in these countries. Finally, the promotion of
the microfinance ventures in the Third World has potentials to create private
groups, which have vested interests in perpetuating their prevailing poverty
situation.
Microfinance, a recently coined vocabulary in rural finance literature, refers to small-loan comm... more Microfinance, a recently coined vocabulary in rural finance literature, refers to small-loan commercial banking
facilities created specifically for meeting the financial needs of the poor. This financing program is different from
the traditional microcredit program in that the former has profit motives, while the latter being non-profit
NGOs, do not. Because of this commercial feature, microfinance programs are susceptible to criticism. To
undermine the severity of this criticism, suggestions are being made to treat them as social-consciousnessdriven
capitalist ventures and their owners as social entrepreneurs. This paper investigated this overwhelming
proposition, particularly in the light of Adam Smith's moral and economic theories. The analysis seems to suggest
that the proposition has difficulties both from theoretical and policy-making perspectives.
Customary land tenure (CLT) systems, pervasively practiced in many developing countries of Africa... more Customary land tenure (CLT) systems, pervasively practiced in
many developing countries of Africa, Asia, Latin America and
Oceania, are often considered an impediment to agricultural
development and rural poverty alleviation. This is because,
according to the conventional economic wisdom, individuals‟
ability and willingness to use productive resources are positively
related to ownership. Thus, the CLT systems are deemed
incompatible with the goal of encouraging individual aspirations
required for improving agricultural production, since lands are
owned communally. To overcome this difficulty, the
international donor community has recommended and helped
implement policy measures to individualise customary lands.
The outcomes of these policy measures, however, have not
turned out as expected. The basic reason for these disappointing
policy outcomes, this paper argues, is that the neoclassical
production theory, the conceptual foundation of this
individualisation policy, is inappropriate for analysing the issues
of economic efficiency and equity in the CLT system.
Behavioural economics (BE) appears to be founded on three alleged attributes of Homo Economicus (... more Behavioural economics (BE) appears to be founded on three alleged attributes of Homo Economicus (HE): (i) unbounded rationality, (ii) unbounded willpower and (iii) unbounded selfishness. It promises to improve economics’ theoretical insights for predicting field phenomena better and suggesting better
policy prescriptions by removing these alleged attributes. To evalaute this promise, behavioural reservations were directly inserted into the neoclassical partial equilibrium model of demand and suply. The exercise suggests that relaxation of
stronger versions of the neoclassical consumer and producer models, which the
behavioural economists are criticising, does not change the essential predictive
power of the basic neoclassical market model. Behavioural criticisms concern curvatures of demand and supply curves, not their slopes. Since curvature is an empirical issue, behavioual criticosms hardly affect the theoretical predictions of
neoclassical economics.
In many countries of Africa, Asia and South America, an overwhelming proportion of earth surface ... more In many countries of Africa, Asia and South America, an overwhelming proportion of earth surface has remained undemarcated, unrecorded and unregistered. This territory is popularly known as customary land, whose ownership is claimed by the tribe/clan living in the area for generations.
This vast track of land contains many valuable economic resources, including precious minerals, natural gases and oils etc., which are vital for accelerating the process of economic growth and poverty alleviation. Accordingly, since 1960’s, supranational organisations, including the World Bank, FAO and UNDP, began investing substantial sums of monetary and technical resources on developing these lands. The general policy principle they pursued is called individualisation. Under this scheme, the communally owned lands are first demarcated and recorded, and then registered under the names of individuals using them. Unfortunately, these policies, the customary land literature suggests, have failed to produce satisfactory outcome.
This paper puts up two points, which might be helpful to identify problems associated with the current policy regimes. First, the prevailing perception of customary land needs refinement, because it is conceptually confusing. Second, ownership of any property, including land, is basically a legal and political issue, meaning the customary land controversy belongs to the jurisdiction of legal and political philosophy. The paper suggests that John Locke’s theory of property right has necessary policy insights that might offer a kind of sustainable solution to this complex customary land controversy issue.
Globalisation, a social vocabulary, came in wide-use in the 1980’s. Although explained with vivid... more Globalisation, a social vocabulary, came in wide-use in the 1980’s. Although explained with vivid imaginations, the term can be described simply as a socioeconomic and political process of expanded human interactions. During the past few decades, the process accelerated at an extraordinary speed because of unprecedented developments in science and technology, particularly in the area information and communication technology. The most visible outcome of these scientific and technological developments is phenomenal growth in worldwide economic transactions.
While the process of globalisation has substantially enlarged the value of economic wealth and improved living standards in the industrially advanced countries, the developing world has lagged far behind in reaping its benefits. The reason, the international development community identified, is poor governance. The process of globalisation, it is argued, has dramatically changed the socioeconomic and political circumstances of governances. More specifically, the process has profoundly altered the traditional nation-state’s premises of politics as well as its ground-rules. Traditional local, national and international political institutions are no longer considered adequate to meet the challenges created by the process of industrial development. Therefore, governance of the nation-state needs new definition, which ought to include new actors, like national and multinational corporations, civil society organisations, public media etc.
In this context of globalisation, the paper investigates the nation-state’s role under the assumption that the prevailing governance perception is ambiguous, unconvincing and impractical. Fixing the nation-state’s governance mechanism does not need accommodating new actors. All it needs is to effectualise the traditional model by compelling political actors adhere to the fundamental principles of democracy. In order to establish this idea, the paper uses Rousseau’s social contract theory, which underlines the main objective of democratic governance and clarifies fundamental relationship among citizens, body politic and government. Finally, the paper prescribes three measures for making the prevailing nation-state model more effective: (i) making electoral rule truly democratic, (ii) creating level-playing field in politics and (iii) formulating public policies ordained by the principle of democracy.
This is my response to Olivier Rubin's critique of my paper 'Entitlement failure and deprivation:... more This is my response to Olivier Rubin's critique of my paper 'Entitlement failure and deprivation: a critique of Sen's famine philosophy'. I have examined his criticisms in the light of Hume's philosophy of human knowledge and consider them weak in logical content.
Purpose -Since the 1990s, most bilateral and supranational donor agencies have been pursuing "goo... more Purpose -Since the 1990s, most bilateral and supranational donor agencies have been pursuing "good governance" as their priority development policy. Yet, in their own evaluation, the speed of progress of this gargantuan governance project has remained unsatisfactory. The purpose of this paper is to examine the causes of this slow progress by scrutinizing its conceptual foundation. Design/methodology/approach -The analytical approach of this paper is purely speculative, which is occasionally supported by real world data and socio-political evidences. Since the paper uses Governance for Sustainable Human Development -A UNDP Policy Document as the ruling reference material, the paper has been so titled. Findings -First, defining governance as a process misrepresents its problematic nature, which is primarily political and therefore diverts world attention from its root-causes. Second, governance literature treats the state and government as synonymous and by that confuses their political nature. Finally, the paper assigns an all-impressing role to civil society organizations (CSOs) in promoting good governance in the developing world. However, experience shows that they are deeply involved in the creation and continuation of poor governance in the developing country. Practical implications -Humankind now lives in a global village divided into territorially demarcated political units. Accordingly, the peace and prosperity of the global village critically depend upon how democratically each of member state is governed. Good governance in turn hinges on politically trained intelligent and ethical individuals running public administration. The analytical opinions of the paper underline this notion. Originality/value -The paper shows that the ongoing development discourse on good governance revolves around a faulty conceptual foundation. By reviewing the major ideas of the governance paradigm, it clarifies the conceptual connections between political theories and democratic governance.
Many social scientists, particularly in North America, believe that democracy hinders development... more Many social scientists, particularly in North America, believe that
democracy hinders development. This paper discredits this obscure
opinion by clarifying the conceptions of democracy, capitalism and
development: Democracy, the theory of a political system of the non-communist state, is founded on the political wisdom that people are the sovereign authority of the state, and government, which executes this sovereign power, is their deputy. Capitalism, the economic system of the non-communist state, rests on the belief that an economy prospers rapidly if individuals are allowed to own and accumulate private property, because human beings are selfish by nature. Development is the performance of capitalism. Since democracy promotes individual’s liberty, including the
right to own and accumulate private property, it is supposed to be most agreeable to capitalism - the most trusted model of affluent society.
In social science, a passionate debate continues about the expected effect of democracy on develo... more In social science, a passionate debate continues about the expected effect of democracy on development. Many authors believe that democracy dampens development. This paper discredits this view by clarifying the debate’s critical conceptions - democracy, capitalism and development. In the non-communist state, private individuals inspire economic development, because they own the major portion of the nation's resources. Since individuals are selfish by nature, they ordinarily improve their economic welfare if they enjoy ‘fair freedoms’ meaning that the social environment of fair freedom is the key to economic development in the non-communist state. Capitalism guarantees this environment, which suggests that the desirable functioning of capitalism is the clue to economic development. Democracy is the only system of governance that
can guarantee long term peaceful functioning of the capitalist economy. Thus, a nation cannot remain poor if she is governed according to the principles of democracy.
This paper examines the academic soundness of the Pareto welfare criterion as a normative rule f... more This paper examines the academic soundness of the Pareto welfare
criterion as a normative rule for evaluating alternative economic inequality scenarios and suggests that the criterion has several weaknesses, which weaken its usefidness. First, the Pareto principle is of limited use in the inequality debate because labor markets hardly satisfy the conditions of perfect competition, the pivotal assumption of the theory. Second, the proposition that competitive equilibrium
leads to the "common good" of society is difficult to defend. Third, the
Paretian welfare economics barely answers the questions society demands, because perfect competition does not guarantee fairness in the determination of relative prices in the initial situation of income distribution. Fourth, in the distribution theory, the marginal productivity principle determines the rewards to the factors of production. If we assume that rent, wage and interest incomes are determined
by this theory, then questions arise about how profits, the potentially huge surpluses generated by the businesses, are distributed. Fifth, income distribution, being a public policy topic, is a political issue. However, Pareto's primary motivation in formulating the principle was to alienate the income distribution debate from political and policy discourses. Finally, by invoking the Pareto principle, economists are in fact avoiding the real issues of the public debate on personal
distribution of income. Personal income distribution truly refers to division of income generated by a group of people working together and therefore, ought to be analysed with reference to the sector of employment. Thus, Tommy Franks' earning should be compared with that of a private, while an ordinary worker's salary should be compared with that of the CEO. History testifies that the public
earning structure is much more equitable than that of the private sector. This poses a very serious question: Which earning structure reflects improvement in
Customary land tenure (CLT) is widely practised in many developing countries, including within Me... more Customary land tenure (CLT) is widely practised in many developing countries, including within Melanesia. This system differs from the more market-oriented tenurial arrangement, called here 'individualised land tenure' (ILT), with respect to ownership of land resources. Under CLT, land resources are owned by a kin group or a collection of kin groups and administered according to the unwritten customs of the concerned community. Group members retain use-rights, which they can enjoy hereditarily. In contrast, under ILT, lands are individually owned and publicly administered. Owners are allowed to exercise their rights however they like within the rules established by the government. The contemporary literature on CLT overwhelmingly portrays it as an impediment to rural development and economic growth. The basic reason, it is said, is the tenurial insecurity that discourages rural people from working harder to better their socioeconomic condition. This conventional wisdom, the paper argues, is ‘conceptually biased’. It rests on the assumptions of neoclassical microeconomic theory, which are inappropriate for analysing customary land issues. First, this theory assumes that the institution of private property motivates individuals in their pursuit of financial gain. Second, human beings are assumed to be selfish by nature, particularly with respect to wealth creation. The customary tenurial system, as practiced in many remote rural areas of developing world, shares neither of these premises. Therefore, the paper concludes that the characteristic policy recommendation for individualisation of customary land is conceptually biased.
Keywords: Customary Land, Group Ownership, Individualised Ownership, Neoclassical Economics, Conceptual Bias
Journal of Development Studies, May 2006
ABSTRACT This paper insinuates the conceptual foundation of Sen’s entitlement approach by pinpoin... more ABSTRACT This paper insinuates the conceptual foundation of Sen’s entitlement approach by pinpointing its major weaknesses. First, Sen’s critique of FAD is inadequate because speculative,
not actual, supply and demand forces determine short-run commodity prices. Second, Sen’s idea of ‘exchange entitlement’ is inconsistent with the principles of capitalism, since this economic
system operates on the conceptual and legal framework of voluntary exchange. Third, if food is considered as an entitled commodity, other basic necessities of life, such as healthcare, education etc. could claim the same status. Finally, the approach is founded on a hidden hypothesis that income distributions in non-communist states are economically and politically optimal.
Development in Practice, 2006
Smallholders cultivating oil palm (OP) under Land Settlement Scheme (LSS) in PNG are suffering fr... more Smallholders cultivating oil palm (OP) under Land Settlement Scheme (LSS) in PNG are suffering from low income and over-population. Under this OP project, introduced in 1967, smallholders were granted 99-year lease for 6.0 to 6.5 hectares block of government land. This paper argues that the existing land leasing-system is the root-cause of these problems. The lease system is a disincentive for the offspring of original block owners to leave the plantation area, which causes lower income due to the sub-division of OP blocks. This situation however might change if the lease-system is made fully transferable ownership system.