Perspective of Development in Sociology and Anthropology

Concepts related to issue of development

 Development as a modern of social change

 Dimensions of development processes

(a) Economic Development

Social Development

Human Development

Equitable Development

Participatory Development

Women and development

Environment & Development

Inclusive development

Self-reliant or Sustainable development

Human Right and Development

 Approaches to Development

(a) Paternalistic vs Wright based approach to development

(b) Supply driven or induced vs demand driven or participatory democratic approach to

development

(c) Development and Under Development

Perspectives on Development

(a) Modernization Theory

Historical context and key assumptions Implications and criticisms with particular references to

W.W. Rostow.

(b) World System Theory in development

 In with references Immunal Walterstein.

(d) People centered Theory in development

 David Kortein.

 Evolution and Dialectical Notions of development

Contemporary Development: Ideology and Practices in Nepal

(a) State led Development Strategy

(b) Market led development Strategy

(c) People centered Development Strategy

(b) Market led development strategy

- Economic liberalization, privatization, Globalization,

Socio-economic life of People.

NGO/INGO led development strategy

Development

Introduction:

These days the term ‘development’ is used frequently in every sector of human life. It is like a

hot cake notion of the present world. However, it is not a new term as it was used in ancient

Greek Period of middle age as well as during the period of Renaissance. In ancient period

development was understood as a natural modernism like phases of renewable, expansion,

construction and decomposition of society. Society followed each other sequencelly accordingly

to a perpetual recurrent cycle. Those people forgot to think to link with human progress and

level of knowledge with development. During Renaissance period Charles Darwin coined the

word Development as growth, change, and refinement of specials of lower level to highest level.

Similarly, another scholar Herbert Spencer's used the term for the growth and change of society

in his book organic analogy. He was not clear about the planned and unplanned change of

society.

Therefore, development is the modern of change towards positive direction in the form of

betterment, refinement, and progress. In other words development is defined as the means to

carry out the notions of development worlds in promoting Economic growth, equity, equality and

self reliance. Only Economic growth cannot be development and there should be Economic

development. Economic growth means quantitative development like growth of per-capita

income, rising of more number of Industries, construction of roads, Hydropower or other

physical facilities. On the other side economic development is a qualitative concept which

includes way of social life, education, health status, social security, human right, gender equity

and equality etc. Hence, development is a multi-dimensional issue in recent time.

According Hyo Slim (1998) "Development is essential about change: just any change in a

definite improvement changes for the better." If development is change then what brings

changes in the society? The agent of development changes are norms and values, culture,

technology, attitude, migration as well as geographical and environmental changes. W.W.

Rostow says that simple traditional society changes to maturity or development (especially from

production and consumption using technology). Similarly, some scholar thinks that development

is a means of changes in psychological approach of human life like freedom growth of personal

capacity and skills, humanity or human dignity self encouragement etc.

In the past development was taken as deep beliefs in unseen force, expansion of religion,

religious books, High respect to the king or the ruler etc. In medieval age having more number

of slaves under a lord and high respect towards. Plebians was called development. During

colonial period having more number of colonized countries was taken as development. In this

sense Netherland, Spain, Portugal and Great Britain became developed or Hegemonic country

during their respective periods. After World War I and II wave of freedom was a part of

development likewise, the concept of development from 1890 to 1930 expansion of city area and

its physical development was taken as development whatever was the condition of rural areas

and poor people.

In 1949, the world was divided into two categories on the basic of Economy- Developed and

underdeveloped. There was brought the then American president Henery Trumann. Especially

after the World War II, those developed countries started to impose their development policy

over the under development nations. This type of development from Top to Bottom is called

tickle down approach of development. This approach followed by most countries within the

state as the main principles of development. It is said that the approach "the development for,
the poor countries", but not development by the poor countries." The tickle down approach

influenced the world up to 1970's. At the end of 1970’s Buttom of approach of development was

developed for the development of poor people. This approach appeared in Nepal after 1990's.

According to M.P. Todaro: Development is the modern of improving the quality of human life

using three aspects of development:-

(1) Raising people's living levels i.e. their income and consumption of food, medical, services,

education etc. through relevant economic growth process.

(2) Creating condition to the growth of the establishment of social, political and economical

system and institution which promote human dignity and respect.

(3) Increasing people's freedom to choose by enlarging the range of their choice variables i.e.

goods and services.

The Todaro's definition shows that the development is related to the developing policies to

underdeveloped and developing countries. In those countries there is low living standard, less

human dignity and limited freedom. They are deprived from the consumption of natural

resources freely.

In the name of development of under development, the developed nations imposed there, policies

over the under developed countries. Especially, the system came into highlight after World War

II. It distributed local and traditional norms and value, political system, social processes and

economic structure. Then, the underdeveloped countries remained as indirect colonial system

from the developed countries. (Like G8) U.S.A, Russia, Canada, Italy, Japan, France.
As we have stated above development is change towards betterment then it bring changes in two

aspects: Qualitative and Quantitative change:-

S.N. Qualitative Change S.N. Quantitative Change (Indicate)

1. Freedom, human right, Health 1. GDP, GNP, Trade balance, physical

services and health status, functions, telephone, media,

education, decision making power, transportation, electricity.

peace and social security,

cooperation and mutual

understanding.

Development is the result of human effort upon natural resources improving overall living

standard of man. It can be shown in the chart below:

Development

Human Effort Natural Resources

Qualitative change Quantative Change

Improvement of human
living standard

From sociological and Anthropological point of view the definition of Development—

Development must be redefined as an attack on the chief evils of the world today: malnutrition,

disease, illiteracy, slums, unemployment and inequality measuring in terms of aggregate growth
rates; development has been great success. But measured in terms of jobs, justices, and

elimination of poverty, it has been a failure or only a partial success.

When above mentioned elements will be reduced then there will be development up to grass root

level people in a sustainable way. According to Selly, "Development with unemployment, slums

and poverty is meaningless. A successful development' should fulfill following human needs.

(1) Very basic needs:

Food, clothes, security, health, shelter, education, and work.

(2) Sense of participation and freedom:

(3) Creative Opportunities and sense of belongingness:

(4) Mutual Understanding and Cooperation:

Therefore, development is multidimensional term including from evaluation civilization and

presents social and individual phenomena. In ordering usages development means a gradual

unfolding a fuller working out of the details of any thing, the growth of what is in the term

(Oxford Dictionary).

Indicators of Development:

A) Social Indicators:

Cooperation and mutual understanding. Social efficiency, Broadness of society (Interaction

and exchange in social national and International level). Freedom and civil right.

Increase in personal responsibility and morality. Change in life style. Good health status (low

fertility rate i.e. low population growth rate, lo child death rate).
Literacy rate and skill manpower.

B) Economic Indicators:

Increase in per capita Income, GDP, and GNP.

Increase in investment capacity.

Increase in Purchasing Power Parity (PPP)

Increasing in living standard.

Use of more physical facilities.

Use of modern technologies.

Commercialization of Agriculture.

(C) Political Indicators:

- Right to involve in Political Institutions.

- Right to voting.

- Equal participation in government and politics by male and female.

- Increase in Accountability

- Responsible Government.

- Respect of Human Right.

- Freedom of Press and Publication; expression of opinion and migration.

Historical Background of Development:

Development has been started with the development of Human Civilization. So, we do not use

the term undevelopement but use underdeveloped. Hence, we can say that there is no negative

point in development. However, sometime the direction of development goes back ward. In the

past, economic growth was taken as development whether a limited number of people used to
achieve high economic growth rate. The classical economist gave priority for quantitative

development (physical development) rather than qualitative. During the period of Renaissance

(16th, 17th century). In the development of technological field manual work was displaced by

machines. On the other side there was a strong belief on mercantilism. It means if a country

could collect large amount of silver, gold, diamond and other precious gems, than the country

would be rich. The concept was replaced by lassbize fair (freedom) of Adam Smith. Similarly,

the British Empire controlled over large number of other nations for market and political

purpose. It gave them satisfaction as well as source of income. After World War I & II, those

concepts were replaced by free and competitive market as well as controlled over

underdeveloped countries by developed countries using economic assistances and development

policies.

During the meantime, the sociologist and anthropologist gave different concepts on development

through qualitative change in human life. On the other side, the division of world on the basic of

economic development clears the way to dominate the underdeveloped nations by the developed

in the name of development. Hence, slogan became development is the development of

underdevelopment." The new concept of development was concerned with efficient allocation

existing scarce resources, production and their sustainable growth over time including economic,

social, political and institutional development.

The emergency of development and global hegemony of the powerful state.

Development Historical Context Hegemony Explanation

Thinking
1. Progressivism/ 1. 19th century 1. Britain 1. Colonial
Evaluationism anthropology and
 social Darwinism
2. Classical 2. 18th- 1930 2. Late commerce 2. Classical political
development colonist, France, economy
German, USA
3. Modernization 3. World War period 3. U.S.A. 3. Growth theory,
1914 to 1940's structuralism and
functionalism.
4. Dependency 4. `De-colonization 4. Nationalism 4. New- Marxism
5. Neo-liberalism 5. 1980 onwards 5. Globalization, 5. Neo-classical
corporate France economism
and Capital
6. Human 6. 1990's onward 6. Rise of Asia and 6. Capability
Development Pacific region Development

In recent concept of development, three values are taken as importance part of human life.

Sustenance. People needs basic needs without which life is impossible. For a continuous and

pregisteous life, a sustenance and reliable economic progress at individual and societal level is a

must. For this realization of human potentiality and development is necessary for substances.

(2) Self stem: (to be a person):

A second universal component of good life is self stem- A sense of worth and self respect, if not

being used as a tool by others for their own ends. It helps to identify self identity, respect,

owner, human dignity and personal recognition.

(3) Freedom: (Free from Servitudes):

To be able to choose. The third components of universal expects of development is freedom-

freedom to choose leisure, to have more goods and services as well as freedom of human rights.
In a well developed society every person should have the capacity of choosing personal

belongings.

Development History in Nepal:

(1) In the past, people used to work for human welfare in the name of religion and God.

(2) So developed welfare institutions like Guthi, Bheja, Rodhi, Dhikur, fulfill human needs and

support for community development.

(3) From Ancient period to end of panchayat era the development was practiced through

Tickle Down approach. Especially, during Rana Period Development was consternated

only for Rana families.

(4) After 2007 B.S. Nepal was open for the rest of the world but the country itself was like a

sick man. Therefore, different development programs were introduced in country with the

introduction of Democracy- Village Development programmed. (1952 A.D), women

Development Training, Panchayat Development Programme (1961A.D.), Development

Training Centre, 5 year Planning System (1955 A.D.) 2012 B.S, Tickle Down Approach of

Development during Panchayat. Tickle Down period - IRD (Integrated Rural

Development), SFDP (Small Farmer Development Programme), Bottom up approach of

Development, Sustainable and participatory development, Economic privatization and

liberalization after 1990- NGO centered development.

(5) Gender based development 1990's- Gender empowerment, Gender consciousness, Gender

equity and equality (Gender related development Index (GDI).

(6) Inclusive model of development:

- Equal participation.
 - Inclusion of all groups of people. (Jati, caste, class, ethnicity, age, sex, geography) in

politics, government, government services and development activities, decision making

power. For e.g. 33% quota or seats are reserve in government sector any other public

affairs for women.

(7) Development of grassroots level people.

Note: 12th 3years interim plan 2067-2068 - 2077/78)

INGO - 500
NGO - 54,000

Goat Borrow Program:

Co-operatives (Agriculture, diary product, Animal husbandry, small income generating work).

Development and Underdevelopment:

Obviously, we know that development is a progressive change towards improvement and

betterment. In other words, development is the development of underdevelopment. Therefore,

the term development and development processes is concern with situation of underdevelopment.

If so, what is underdevelopment?

The concept of under development came into practices after the World War II, and especially

with the speech of then American President Hendry Trumann. Then the world was divided into

two blocks developed and underdeveloped. Economically, ideologically and technologically

advanced country are called developed nation (like G20), whereas, backward in those terms are

categorized as under developed nation. The third concept of groupism is called developing

countries. Like India, China, Brazil, Thailand, Malaysia, S.Korea, Tiawan.

Underdevelopment is the stage of scarcity of resources, technology, skilled manpower,

cooperation and mutual understanding social security etc. In other words, high poverty rates,

low per capita income rate, High infant mortality rate are the prevailing features. Main purpose

of those countries is to fulfill daily human needs and to seek help from developed countries. The

governments of these rate cannot pay their attention to national development like road,

electricity, education, Industry etc. (According to UN, "the term underdevelopment is applied to

countries in which per-capita income is low when compared with the per capita areal Income of

U.S.A., Canada, Australia, and Western Europe. In this sense an adequate synonyms would be

poor."). It is said that this concept of division is very biased because there is no scientific reason

to take the base of per capita income from those countries. Only the per capita Income rate

cannot measure the development level of the country.

According to Michael Todaro (Under development is economic situation in which there are

persistent low levels of living with following characteristics- Absolute poverty, Economy, High

death rates, High birth rate, Vulnerability to and dependences of foreign economic growth and

limited freedom to chooses between variables that satisfied human wants).

Causes of Under Development:

(1) War:

- National income goes for war purpose.

- Youth male involves in war and development work affected.

- Government and state cannot give time for agriculture, development, development work,

pieces and security, e.g. Mozambican, Angola, Swaziland, and Afghanistan.

(2) Natural Hazards:

 - Developmental structure and hamper for further development. Eg. Volcano, soil erosion,

floods, landslides, draught (African country) Haiti

(3) Lack of Natural Resources:

It is also one of the major factors to develop a nation. The countries which are rich in

natural resources are developed or rich (Opec Country- Organization of petroleum export

country). America, Canada, China, Brazil. On the other side Namibia, Eretria, Botswana etc.

are backward because of lack of natural resources.

(4) Corruption:

Nepal, Nigeria, Afghanistan, Bangladesh-

(4) Non Corruption:

Norway, Finland Canada, Sweden, Australia.

(5) Weak Trade system or unfair trade mechanism:

Generally, underdeveloped country cannot export readymade goods and their exporting goods

are raw materials and agro based product which are cheap in prices value. On the other side they

should import high price ready-mades goods which increase trade deficit.

(6) Malnutrition:

(7) Colonization: Economic colonization.

Features of underdeveloped:

(1) Economic Features:

- Low per capita Income.

- Traditional Technology.
 - Deficiency of Capital.

- Lack of Investment.

- Dual Economic System (State owned and private Industries)

- Poor market system.

- Export of low value primary goods and import of expensive readymade goods.

- High unemployment/unskilled manpower and lack of technical knowledge and training.

- High dependency on agriculture, unequal distribution of land as well as its fragmentation.

(2) Social Features:

- Traditional society and less responsive to change (Towards modernity).

- High regards on traditional norms and values and more cultural expense.

- More social and cultural taboos.

- Poor social network especially in International level.

- Traditional healing system (Samanism).

(3) Demography Features:

- High Birth rate

- High death rate

- High fertility rate rural

- More mobility of people

- High dependency ratio

- Lack of nutrition, unhealthy and uneducated people.

(4) Political Features:

- Weak human right and lack of freedom.

- Lack of accountability from government and other

 - Concern agencies.

- Impunity

- Nepalism and favourism

- Centralization of the power (lack of decentralization).

- Frequent strike, riot, clash, group fighting.

- External interfere in government, election development plans and policies etc.

- Unstable government.

Social Development:

Social development is related with qualitative aspects of human life. In broad sense, it is upward

movement of society from less energy consumption to higher level of energy efficiency

(Culture= Energy  Technology) social efficiency, quality of life, complexity and

heterogeneity, creativity, choice of leisure and services, variability in consumption etc. the

major aspects of social development. It is driven by conscious will of society for advancement

betterment and improvement. Such social will seek progressive fulfillment of social needs-

security of society and broader, law and order, self sufficiency in food and shelter -organization

for peace and prosperity, entertainment, modern knowledge and ideologies and so on. The

conscious development is best on conceptual knowledge of social process, for progress with

plans and policies to minimiz9e errors and imbalances.

Such development requires large amount of investment of Economic capital, human capital and

human values so that the investment, can break exist in negative social norms and values, beliefs,

tradition and backwardness. Traditional superstitions and some religious practices hamper the

development which should be eradicated from the society for e.g. (Chaupadi).
In the past, social development was taken as that mercy of rulers and god. Therefore, some

progressions of 18th century changed the concept of fatalistic development and Introduces

method of human efforts on social development. In modern type all the welfare state are

concerned with social development and had allocated large amount of annual budget in social

sector.

Some Indicators of Social Development:

(1) Social efficiency

(2) Broadness of society.

(3) Cooperation and mutual understanding.

(4) Responsible and moral society.

(5) Human Right freedom and civil right.

(6) Gender equity and equality.

(7) Good health status and high literacy rate.

(8) High value of HDI & GDI.

(9) Lo Infant mortality rate and fertility rate.

(10) Qualitative Population.

Some Social Development Indicators:

(1) Population:

Population is one of the important resources for the state. Only the presence of population is not

important but population should be healthy, skilled, creative and qualitative. Similarly,

population size should be appropriate according to available resources of family, society and

state. For e.g. the population size of Nepal is 32 million and 40% of them are appropriately
useful in economic sector and large part of population size is in rural area without skills and

education.

(2) Living Standard:

It is another important indicator of social development. Quality of commodities, amount of

energy consumption, personality, politeness, skilled manpower etc. are the factors of living

standard. In average Nepali people are deprived from those qualities. It is because some of the

poor people cannot consume. 2200 Cal per day and market commodities are not available in

good condition.

(3) Water and Sanitation:

According to World Bank 87% of people of world have access to drinking water. Similarly,

African people are suffered from clean drinking water as well as at least presence of water. In

the recent time it is one of the growing problems due to climate change, deforestation and

urbanization. Therefore, measurement of quality life should be connected with water and safe

drinking water. WHO standard  300l per day person Nepal government 

In Nepal, 39% rural people have access to tap water, about 85% urban people has access to safe

drinking water and in average 65% of Nepali people use tap water.

Similarly, environmental condition personal hygiene, pollution etc. are other important factor to

measure the social development. Specially, quake people and slum areas communities have the

problem of sanitation and personal hygiene.

(4) Education and Employment:

Main base of development, awareness and consciousness is education. Therefore, it is a measure

factor of social development. For real and equal social development every person should have

access to easy and cheap education. It is measured by literacy rate, level of knowledge and

intellectuals. Employment also support for quality life because it is source of income in one hand

and method of engagement and satisfaction on the other hand.

(5) Health:

(6) Social Security:

(5) Health:

Health is important part of human life because only the healthy people can support for

development like developed nations, there is no health facilities in under developed countries. In

Nepal health services is an expensive part for the people and there is very weak health facilities

in rural areas. The child mortality rate of Nepal is about 60 per thousand and maternal mortality

rate about 365 per lakh. According to government policy there should be at least one serve

health post in each VDC but it is not fully implemented. In recent time medical and para

medical persons are increasing from national and regional institutions however, it is not

sufficient to fulfill the national demand.

(6) Social Security:

It is psychological part of human life people should fill secure in home, community, society and

while travelling. A secure society means a strong and efficient government that can maintain

law and order in the country. In recent time Nepalese people are not filling security in the

society because there is frequent murder, abduction they, rape cases etc. There is more insecure

in Terai region because of open border between Nepal and India.

(c) Economic Development:

It is modern concept in the development of society and nation including some qualitative and

quantitative indicators from economic perspectives. It is the stemming of living standard with

sustainable growth from a simple low income economy to modern high Income economy. For

such sustainable growth, the quality of living standard must be improved from local and rural

areas. In other words economic developments refer to social and technological progress that

supports for national and international relationship, prestige and identity of society and nation.

Economic development has close relationship with modernization, westernization and world

system with some qualitative indicators. Therefore in economic development health education,

gender equity in equality, social security, mutual understanding should be included. We can see

the relationship between development and economic development in 3 different perspectives.

Firstly, increase in average income, leading to improve health and nutrition, capacity

development, expansion of social identity etc. Secondly, it is believe that social output can be

improved from reducing the economic gap from different societies. Thirdly, social development

is possible from qualitative development of infrastructure.

Sustained economic development is possible from creative self's sustaining and skilled man

power from local level and grass root level people. To support the situation government must

manage reliable market mechanism, transportation and basic facilities of agriculture and

business.

Indicators of Economic Development:

- National income GDP and GNP, Trade balance.

- Per capita Income (470)

- Transparency and good habits of paying tax.

- Welfare states towards economic activities.

- Improve living standard.

- High level of cooperation and mutual understanding.

- Use of Modern technologies.

Problems of Economic Development:

(1) Vicious circle of poverty or capital deficiency

(2) Socio-cultural problems.

(3) Problem of use of technologies and internalization of change

(4) Population problem

(5) Lack of proper training and awareness.

(6) Lack of proper planning and strategy of government.

(7) Substances of agriculture rather than commercial.

(8) Political instability.

(9) Corruption and Impunity

Sustainable Development

In simple words, sustainability means durability, long lasting and having the capacity of

continuity without external support. In development sector sustainability is the use of natural

resources and energy in such a way that does not harm the environment for a long time.

Therefore, sustainability is directly related with environment and its products. It is the term
sued in current time challenges of contemporary human development and future progress with

the protection of environment.

The concept of sustainable development was emerged from 1980's in the modern of re-

organization and re-defining of human societies in global level for global environment. Human

activities have influenced his environment at global level and hence global ecological system has

been changed. Often people contribute for further degradation of already poor environment in

the course of trying to meet their survival requirements. So in present time the challenges of

sustainable development are-- rapid population growth, increasing number of people in absolute

and acute poverty, spread of ill health, rapid growth of urbanization, high level of

unemployment's, lack of skilled manpower, lack of clear plans and policies of government.

According to world commission on world environment and development, "The core issues on

sustainable development are- population development, food security, species and ecosystem, the

industry and its management, energy consumption and urban challenges.

For the development sustainability following issues are required:

(1) A political system that secure effective people's participation in decision making level.

(2) And economic system that provides solution for the Henson arriving from disharmony of

development.

(3) A production system that respects to the rules and regulations for the protection of ecology

base development.

(4) A technological system that fosters for sustainable patterns for trade and finances.

(5) An administrative system that is feasible and has the capacity for self correction.
According Park (1997) the principle of sustain able development are respect and care for

community of life, improve the quality of life, consume conserve th4e earth's validity and

diversity, minimize the depletion of non-renewable resources (fossil fuels), change the personal

attitude and practices, enable the communities to care for their own environment for e.g.

(community Forest of Nepal) Provide a national framework for integrated development and

conservation. Environment, create a global alliance (e.g. The Earth summit of 1992) in Rio De

Generio to Copenhagen Summit) Denmark). Related institutions that work for IUCN, ICIMOD,

UNEP, WWF, ACAP, and ACAP.

(i) Self-Reliance

The ultimate goal of development is sustainability and self- reliance. The term self-reliance

means to be independent in terms of natural resources, capital goods, political, ideologies,

development plans and strategies, skilled man power, etc. This concept was developed after

World War IInd, when the Latin American countries rejected the free support from Western

Europe, USA and USSR. Those nations try to develop their own knowledge technologies,

ideologies and skilled manpower according to local cultural ecology. In this way, the wave of

self reliance was developed in the world.

According to the concept, every community, society and state is supposed as empowerment and

self-sustained for their existence. Without the modern of self-reliance and sustain ability, the

globalization, modernization and industrialization destroy local, culture, tradition, identity and

indigenous skills of the community, state. Independency on one's own capabilities, judgment,

resource, skills, knowledge or wisdom etc enhances political, economic, social and attitudinal

freedom that leads to self reliance.

(c) Human Development

It is a new concept which was developed from 1980's in the field of development. It is different

concept then the rise and fall of national income, GDP, GNP, economic growth rate etc.

However, its one part is connected with those elements. It is about creating an environment in

which people can developed their full potentiality and lead to productive and creative life's in

accordance with their needs and interest. Therefore, development is about the expanding of

choices of people to lead lives that have values.

The concept of Human Development Approach arises in the part of as a result of growing

criticism to the leading world development approach of 1980's with the concept of economic

growth and expansion of individual choices. Dr. Mahbub UL Haq, develop the concept of

human development and played an important role to publish Human Development Index

reported from UNDP in 1990. He showed the need of human development measurement with

following development factors:

(1) Growing evidences that did not support. The then prevailing belief in the tickle down

power of market forces to spread economic benefits and to end the poverty.

(2) The Human cost of structural Adjustment Programme became more apparent.

(3) Social (crime weakening of social fabric, MIU, AIDS, family disorganization etc.), where

still spreading in the case of strong economic growth.

(4) Aware of democratization raised the hopes of people centered development for qualitative

development.

For human development some basic elements are included which are qualitative in nature. Some

of them are equity, sustainability, empowerment, awareness, interest and attitude, human right,
education health status, social behavior, social responsibility, mutual understanding etc.

Similarly, sustainability is the view that we all have to earn a living that can sustained us and

have access on reliable natural resources. Empowerment is awareness and skilled development

makes people qualitative and responsive.

While calculatedly HDI following elements and indicators are included:

(1) Literacy rate in percentage.

(2) Life expectancy (Highest life expectancy and lowest life expectancy).

(3) Per capita Income (Highest and lowest per capita income of the world countries).

Therefore, HDI is a ratio of these elements and remains the ration between 0 to 1. If the HDI

value is above 0.7 or 0.8 then the human development of that country is said to be good. It

means the status of people of these countries is high with good facilities of health, education,

social security, gender equity, human right etc. Likewise, if the HDI value is 0.5 to 0.7 then it

suppose as medium level human development and below 0.5 value of HDI is categories as

underdeveloped nations. In the history of HDI, Nepal has got 2 times success in the HDI value.

In 1990 HDI value of Nepal was about 0.25 and now it is above 0.5. Similarly Canada, Island,

Netherlands, Finland, U.K., U.S.A., Japan have the HDI value more than 0.9. On the other side,

some African nations Burundi, Swaziland, Madagascar, Nizer etc. have HDI value less than 0.4.

It means these countries are least developed nations and there is the problem of education, health

facility, social security, employment, gender equity etc. According to UNDP the HDI value of

Nepal in sp12

(G) Women in Development:

(1) WID- Women in Development (1970's)

(2) WAD - Women and Development (1980's)

(3) GAD - Gender and Development (1990's)

The term women and development is concern with overall development status of women

including social and economic sector, human right, decision making power, equal participation

in politics, government and development, law and order etc. It is a feminist perspective in

development sector. This concept has long history but little achievement in under developed

nations. The issue was raise by the feminist activist of Dominican Republic, U.S.A. and China

in 1830's. After world War II nd during the development model of "tickle down", the concept of

women development was including ads priority sector. However, this model also could not

function properly and was replaced by gender and development.

By size of population number of women is about 50% in the world as well as in Nepal. In this

sense development of women is must in each and every sector from different struggle, efforts

and intellectual movements some contribution have made in this sector. From the struggle of

women from China in 1810 to SEDAW conference of Beijing 1995 has made much development

in the sector of women development. Therefore, different positive discrimination has been made

for the special facilities for the women. The Beijing conference of 1995 had declared some

compulsory rights of women in social sector like economy, decision making power, health

facilities, reproductive right, and action again violation of women, etc.

In Nepal, the concept of women development was raised after the introduction of democracy in

2007 B.S. However, It was not the priority sector of government for their development. It is

because the most conservative and injustice Muluki Ain was amended only 2020 B.S. Women

Training Center was started for the development of women when there were only 0.5% women

literate in 2007 B.S. The New Muluki Ain 2020 B.S. (country code 2010) allowed for
remarriage, widow marriage and inter-caste marriage. Similarly, the code ended caste system

from legal provision. This situation helps for the development of women from slow and steady

process.

There are about 45% literate women in Nepal in present time. Similarly, 12% in constitutional

assembly, 15% in government service, 26% in teaching sector, 19% in media are represented by

women. According to UNDP, the GDI of Nepal of 2009 is 0.513; it means the gender status of

Nepal is medium condition which is 0.9262 of Norway and 0.292 of Niger. According CEDA,

only 10% Nepali women have land ownership certificated and 30% women exercise decision

making power in their home (male 65%, female 30% and both 5%).

(J) Human Right in Development

In modern time human right is taken as basic need of every individuals and society. It is related

with prestige, human dignity and quality life of human being. It is linked with development,

economic growth, and social modern and social security. The concept was developed from mid

1990's and "right based approach of development" was emerged from after 2000. Human Right

is connected with or against violence, poverty, vulnerability, conflict, social inclusion and

exclusion, gender equity etc. Human right is taken as a part of development because, it plays

important role in mobilizing the social change, transforming state, society relation; removing the

barriers of poor people to access the services, justifiable distribution of natural resources and

opportunities and etc. It constitutes a unique internationally shared accepted normative

framework for all global people with human values. The rights like civil, political, economic,

social and cultural etc. makes man free, independent and survive his/her life with full of human

dignity and self respect.

Therefore, the development including those elements will be sustainable and can fulfill

requirements of all people. Development means change according to time and place and access

to opportunities for all people from grass root level to high class family. The people from

grassroots level have equal opportunity and respect from the sense of human right. Therefore,

from human right development perspective, all the opportunities can reach up to all work of

people. It is an effective method to develop the society because it includes all level of people in

the opportunity compulsorily. The state has the completion to provide facilities to the people in

the name of development for e.g. Nepal Government is taking the policy of reservation for

women, Dalits, and other backward communities. In government services and other public

opportunities. Similarly, government has provided allowance to such backward communities

through the principles of positive discrimination. For e.g. Raute, Kusunda, Jirel, Widow, people

above 70 years are getting allowance Rs. 1000 and Rs. 500 per month.

(H) Inclusive Development

It is latest model of development in which people of every sector are included in development,

government, semi-government and private organizations. The concept has long history but short

applied period. The concept was developed from Europe in 1970's. According to the concept, to

be most democratic, all types of people should be treated equally by government and sometime

should initiate positive discrimination for the social inclusion.

According to World Bank, "Social inclusive is the removed of institutional barriers and

enhancement of insensitive to increase the access of diverse individuals and the groups to the

development opportunities. Therefore, social inclusion is a developmental concept to provide

opportunities and researches to the people within a country. In other words it is connected with
human right with respect to development activities which supports for participation in

development. Government, politics, decision making process, employment opportunities etc.

Further it is said that development would be sustainable when all groups of people are includes

within it. If someone or some communities are excluded from the development then,

automatically the excluded group will be dissatisfied and start to oppose or strike.

The concept of social inclusion was emerged in Nepal only after people's movement II 2nd

2062/63. From the concept restructuring of the nation, government system, Federalism etc. are

included in the development of "New Nepal." This model of development is institutionalized by

the Interim Constitution of Nepal 2064 and for it permanent provision CA of Nepal is trying to

formulate or draft in constitution.

Features of Inclusive Development:

(1) It is the inclusion of all class, caste, ethnicity, religious group and geographical territory

without any discrimination.

(2) Institutional access on development and decision making power.

(3) Special programmed for backward group and marginalized group communities. e.g. Raute,

Chepang, Kusunda.

(4) Secularization and political inclusion.

(5) Decentralization local autonomy and local self-government in the modern of development.

(6) Changing of people towards resourceful through empowerment.

(7) Identity of minorities with respect and humanity.

Included Fields of Inclusive Development:

(1) End of inequality and discriminative laws.

(2) Inclusion of marginalized and backward community in the development.

(3) Reservation programmed for women, dalit and other marginalized communities.

(4) Regional balances, sustainable development and self-reliance.

Equitable Development

It is based on social justices, based on positive discrimination for the backward communities. It

was developed from 1980's from the west. Its main aim is to reduce economic gap between the

rich and poor. To distribute development opportunities employment, natural resources, etc. to all

levels of people can be termed as equitable development.

During the period of Trickle Down model of development only the rich and elite group used to

enjoy withy government facilities. Political powers and development which was unfair for the

grassroots level people. It is assumed that equitable development would be sustainable because

it has the capacity to include all walks of people using local resources, traditional, knowledge

and skills through people participation.

According to Doughlas Lummin, "Equity indicators are the kind of justices or fair treatment.

Equality indicates sameness or homogeneity." For International level example of equity.

America to levy tax for imported goods from developed countries and allow for free import from

under developed nations. For equity development government should follow some special

programmed for poor people, backward communities and marginalized group. For the purpose

Nepal government has followed positive discrimination and reservation programmed for those
kinds of people. For e.g. some marginalized communities have got- 1000, per month as

allowance from government. Similarly, old ages people above 70 years and widow women have

been getting Rs.500 for person per month. To reduce regional imbalance of development, Nepal

government has given special facilities for investments in remote areas like Karnali region.

These concepts of development are supported from Robert Chambers and David Kurten

including from the principles of social justices and human right.

(G) "Environment Development"

The issue of environment and social development are hot issues in recent time. These issues are

directly related with climate change, global warming and degradation of renewable and non-

renewable energy. The developments that are related with human life are directly related with

environmental energy and its exploitation. As Manin Harris said, "Human culture is depended

upon the level of exploitation of environment. Therefore, without touching environment and its

components human activity and development is impossible. Developed nations have harnessed

(exploited) large part of energy from the environment including minerals from mines and fossils

fuels. On the other side poor countries are heavily dependent on environment and especially on

forest or agro-product.

Therefore, the degradation of environment is increasing rapidly day by day. During World War

II2nd and 1950's and 60's, the environment was highly effected either from war or for its re-

construction. Hence, the issue of environment protection was raised from 1970's and the concept

of sustainable development was taken as important, part of development from mid 1980's. The

first issue of environment protection was highlighted in UN conferences of Nairobi (of Kenya) in

1973 and formed a committee related to environment. After that U.N.D.P. and UNEP are
working in the field of environment, environment and development, and sustainable

development. The 'Earth Summit' of 1992 drafted women rules and regulation regarding

environment protection, ozone hyer depletion and reduction of CFC (Charlo, Faloro, carbon).

After 1990's, the issue of environment is taken as priority sector while constructing other

developmental structure. UN and other country have made some provision while establishing

new industry, fuel plant, construction of road and Hydroelectric Power etc. It is said that about 4

million tons of Carbon dioxide is thrown in environment atmosphere everyday which is

contributing for Global warming and climate change. For its reduction, the principles of 4 R are

applied in different sector of development.

In Nepal the issue of environmental protection came into protection with the restoration of

democracy in 2046. At first step we can take concept of community forest to protect the rapid

deforestation. It is one of the best methods to protect forest from local people. In 2053 B.S.

environment protection Act was formulated and in the same year. Ministry of Environment and

Population was introduces. Similarly, Nepal ahs signed for different international protocol to

save the environment in global level. Similarly, a cabinet meeting was held in Kala Pathar of

Solukhumbu in 2066 to highlight the raise of temperature or global warming and its effect in

Himalayans. Cabinet meeting of Maldives under the sea.

Approaches to Development

(A) Paternalistic Vs Right based approaches to development. (Paternalistic is closely related

with tickle down approach of development and right based development is closely related

with Bottom up approach of development).

Different processing of development have been practices since the human civilization. Among

different models of development tickle down approach remain for long time. Obviously, we

have known that Tickle down approach imposes development activities upon local people

without their consciousness, consensus, discussion and needs. In other words, this type of

development can be term as centralized govern development. Those models of development are

called paternalistic approach in which people are treated as the subjects. This approach was

prevalent up to 1980's and in Nepal up to 1990's.

In the opposite of paternalistic development, the concept of right based development appeared in

the world in 1970's. This model was highlighted by Robert Chamber and David Korten when

they published different books highlighting the grass root level people as the center of

development. Then, the development is taken as need of people and part of human life. From

this concept different dimensions of development have development like decentralization,

people's participation, gender equity, self reliance etc.

In the context of Nepal, Rana government remained as autocratic and followed paternalistic

approach of development. Similarly, party less panchayat system followed the approach.

However, the government introduced concept of decentralization in 2039 as the policy of

development. The panchayat government could not implement in actual practices. After the

restoration of democracy, Nepal Government has followed the principle of right-based approach

of development and people have got the right to choose their development according to their

local need. This modern of development is called Bottom up approach of development.

Assumption of right-based approach of development:

(1) people's participation

(2) Accountability

(3) Non-discrimination and equal development of grass-root level people.

(4) Empowerment of local people.

(5) Linkage between human right and development.

(6) Sustainability of development.

(7) Use of local resources as well as local knowledge, skill and ideas.

Assumption of Paternalistic approach of development:

(1) Imposed development from ruler to rule.

(2) People have no right to choose the development according to their need.

(3) People's participation in development.

(4) No accountability but more impunity

(5) A system of development by autocratic government.

(6) Violation of human right.

(7) People have no role in decision making level.

(B) Supplied driven Induced Vs Demand Driven participatory/Democratic Approach to

Development:

This concept is developed from Neo-classical economic concept. According to the principle

development is a part of human life which has values. In supply driven development approach,

government or any other development agencies make plans and policies according to their will.

They do not consent with local people and make the strategies in the centre. Some time the

target group does not know about program its output and duration. In this approach local
resources skilled, knowledge and interest of local people are neglected. Therefore, it cannot be

sustainable and useful for the people. Generally, it practices by Non-democratic government.

In the opposite of supply driven development, demand based approach of development is

practised in modern welfare state and democratic government. In this approach, people are taken

as centre of development, local people involve in development from the level of plans and

polices making to implementation, evaluation, and consumption of the development local

resources traditional knowledge, skills and real problem of the local people are utilized

development and real problems of the people are addressed. It promotes for participation people

in development and people can take part in decision making level.

Advantages of Demand-driven Development Approach:

(1) People’s participation in development in decision making level.

(2) Sustainability and durability of the project.

(3) Democratic practices and respect of human right.

(4) Access of development to grassroots level people, marginalized group and backward

communities.

(5) Use of local resources, knowledge and skills.

(6) 'We feeling’ among the consumers of the development.

Perspectives on development

Modernization Theory:
In conventional usage, to be modern means to give up old-fashion and to be up-to-date or to re-

shape something out of date to fit with requirements of modern time. Thus, people speak of

modernization as characterizing all effort to improve technology democratization of life, social

institutions modes of production as fashion and personal behavior individuals. According to

modernization is a phenomena that may appears in a more or less intensive form and it is

therefore gradable" A society is considered as modern to the context that its member use a

continuous sources of power and/or tools to multiply their efforts in their daily life. In actual

practices those concepts may not be applicable equally in all societies.

According Bendis, "Modernization pertains to the kind of social changes which has occurred

from 18th century or those changes that have led to economy and political break through is some

pioneering societies which have continuous changes is follower societies. This definition has

stressed on 2 levels of societies according to technology, knowledge and ideas. Therefore,

modernization denotes a modern of social change and a bridge between the levels of

development in different societies. Generally, a backward society followed the way of life from

developed societies or the advanced societies imposed different knowledge, ideas and technology

over the backward communities. Hence, it affect the patterns of behavior, mode of action, ways

of thinking which are regarded as more refine, rational or profitable and generally more

instrumental or mechanical.

The concept of modernization was developed from 1950's with the reconstruction of different

countries that were affected from World War IInd. So, the developed countries got the chance to

control over colonized countries from different aspects. These aspects are:

(1) Changes in the role of society.

(2) Economic growth and economic development.

(3) Freedom (country) / civil right and democracy especially in underdeveloped nations.

(4) Exploitation of Energy or environment using technology.

(5) Change in personal attitude.

Context of Modernization:

Everything is changing with respect to time in the world, the community, society and their

attitude had changed with the change in mode of production, size of population as well as social

conflict and problem. Especially, the Renaissance period of Europe brought drastic change with

the development of technology, knowledge and ideas. Those elements change their socio-

cultural and economic life than the previous period like middle age. With the help of new

technology mode of production was changed from manual work to machinery work and

subsistence agriculture was changed to high productive commercial agriculture with the use of

hybrid seeds, improved animals and chemical fertilizer. The whole situation introduces

urbanization and industrialization in Europe and their neighboring countries. Hence, their

working styles, level of skills, modern of production, living standards, consumption patterns,

social, network etc. was changed. They also followed those methods in their colonized countries

of Asia, Africa, North America and South America. This system bought the wave of

modernization in the world with the development of transportation, communication, in

substances and its subsequent result of migration.

The rapid population of the world helps to migrate the people in the search of employment,

resources, as well as marketing network. Similarly, eastern nationalism, dictatorship and

completion among the debtors lay towards conflict and then the world involved in World War 1 st

which brought great change among the countries with the compulsory background of
modernization. The re-construction of physical structure of under developed nation inspired to

follow or adopts new technology knowledge and ideas of developed countries. Therefore, the

concept of modernization spread easily among the underdeveloped nations.

Assumptions:

(1) When the western societies and states change their social cultural and economic life style

towards advertisement; many societies and states of non-western expected their technology

and knowledge for the development.

(2) Change is the universal phenomena and which needs time and space for its changing

process. Therefore, background of modernization created of both developed and

underdevelopment nations.

(3) Every individual community or society wants to change their living status towards

betterment and accordingly they want to follow new social and economy system,

technology and knowledge.

(4) Imitations and copy of others towards betterment is universal characteristics of human

beings.

(5) It is self-conscious use of the term "modern" and its root was developed from European

intellectual life especially from 20th century. It was believe that the output of development

through modernization would get by grass root level people from the centered (core

countries) G20).

(6) Development is the unillinear modern of socio cultural and economic changes towards

modern and away from the traditional stages, thought and life style.
(7) Modernization is compared with the development stages of society on the basics of

technological sue.

Variants of Modernization:

Modernization theory and world system theory are the frame work of political economy that

deals with issue of development and underdevelopment in the Third World. It was developed

from 1950's and 1960's to explain the poverty of underdevelopment on the basic of structural and

psychological frame work. Therefore, modernization concentrates on the imitation of western

culture by the non-west to be like USA and Western Europe. The concept emphasizes

professionalization of work, rationality of events, planning and progress as defined by the west.

Talcot Parsons as explained the modernization from structural point of view. He sees the

development of society from progressive differentiation with the traditional society.

Neil J. Smelser (related technology)(IMP) Highlighted the transformation of society through

modernization. He says that technology transfer from one place to another with migration of

human being and their interest help to change the society towards modern. In this process, the

behavior and psychology of individual migrate from one place to another with technological

views. So, the transformation of society is possible using new technology, improve agriculture

system as well as urbanization and industrialization (For e.g. Junga Bahadur Rana imported

different European culture when he return from the Europe). Similarly, Wilbert Moore also

believes on the transformation of society from modernization using new technology knowledge

and ideas. He says that those elements flow from developed to underdevelopment nation.

W.W. Rostow is an American economist who has explained about the development and

transformation with respect to economic production and its consumption pattern. According to
him society changes from one stage to another on the basis of (production, use of technology

upon the production and volume of consumption). He wrote a book "Non-communist manifesto-

1960", to oppose the theory of Karl Marx and his book "The Communist Manifest 1848."

According to him, every society posses through certain development stages. For this he has

given such stages of society.

(1) The Traditional Society:

It is pre-Newtonian period. The society of this period was simple with simple technological use.

The society was based on Agricultural production and the production was limited within the

community or society. Similarly, the consumption pattern was also limited with respect to area

and variety. He says that there was low social mobility and people, used to believe on religious

faith and fatalism.

Feature:

(1) Method of production was manual and limited technology.

(2) Limited social mobility.

(3) Fatalistic development concept.

(4) The world view pre-Newtonian.

(2) Pre-Condition of Take-Off:

This is post Newton period. He (Rostow) has given the name "Stage of growth” with transitional

phase from more traditional society to technologically developed society. In this period limited

technology was developed and little number of industries was established. As a result,

urbanization and transportation was started.

Features:

(1) Progress in agriculture and agro-based production.

(2) Initiation of urbanization and industrialization.

(3) Formal and technical education system was started.

(4) Entertainment was taken as part of human life and respective institutions were established.

(3) The Take-off Stage:

According to him this stage was advanced with respect to technology. Therefore, industrial

production and productivity of agriculture was increased. Therefore, market mechanism and

transportation system was Broaden. Similarly, level of knowledge, political system, philosophy,

and literature was developed specially in European countries. Therefore, those developed

countries started to colonized other poor countries to expand their market and political system.

Features:

(1) More technological use.

(2) Increase in market and market network.

(3) Share market system was developed.

(4) Investment capacity was increased.

(5) Both academic and technical education was initiated.

(4) Drive to Maturity:

This stage was prevailed from machinery work rather than manual work. He says that this stage

remained for about half century and then colonial system was decreased. The developed

countries established market network and hence demand based production was developed.
Features:

(1) Initiated of free market mechanism.

(2) Development of urbanization and industrialization.

(3) Political and economical betterment with democracy, freedom and welfare state.

(5) The Age of High-mass-consumption (That is Modernization):

This is modern stage of society in which advanced technology, with computer is sued in

every sector of production and other institution. There is high mass production as well as mass

consumption in the World Global market mechanism itself demands the commodity for world

level consumption. Therefore, this is the time of modernization and people have accepted

advanced technology.

Features:

(1) Modern of modernization.

(2) Advanced and computerized technology.

(3) Rational and developed society.

(4) Majority of import and export of goods.

(5) Commercialization of agriculture and professionalization of work.

Criticism of Rostow:

It is said that, theory of Rostow is unable to explain the development of society in a clear way.

There is confusion on the explanation of production and consumption level of community

according to development of knowledge and technology. Similarly, all the societies do not

necessarily passed through same sequence of development including all stages. Some societies

jump from one stage to third or Fourth stage when they come to contact with other developed
societies. We can take its example from Raute and Chepang community of Nepal other example

is Hausa and Massi community of Sahara desert of Africa.

Criticism of Modernization:

Although modernization was one of the important and famous theory. It has some weaknesses.

Specially, theorists of dependency and world system theory criticize it.

(1) It cannot cover whole world from the modern of development and hence it is narrow.

(2) According to A.G. Franc, "modernization is insufficient on durable and practically

incapable to explain the development."

(3) Rostow's development stage of society is not available in actual practices and no

necessarily developed the society through each stage step.

(4) It is ethnocentric bias because west thinks them as superior and ideal then the non-west. In

this west sense, the theory was developed.

(5) The theory is unable to explain the Talcot Parson's theory of economic development and

cultural change. Development and culture of society and cultural change are interrelated

but modernization theory is in differences with the modern of cultural change.

(6) Modernization theory is a photography or static theory rather than cinematography because

it cannot explain the past societies and their future development.

(7) According to diffusions, diffusion of technology, knowledge and idea from developed

society to underdeveloped society is not modernization but diffusion.

Implication of Modernization:
Although, modernization has some weakness, it has some positive aspects in the field of

development. It is said that modernization is the modern of transformation, reformation, use of

new technologies and ideas as well as psychological and sociological change. In 1950's, whole

world was affected by world war second and the destructed part was renovated through the

modern of modernization. During the mean time the non-west societies or underdeveloped

nations adopted new technology, capital goods, political system, and level of thinking from the

west. This modern was called development or modernization or social and cultural change.

Development and agriculture including their commercialization, professionalization was possible

from the modern of modernization. Similarly, many traditional societies accepted new concept

leaving their conservation thinking to adjust with modern global world.

(B) "World System Theory":

The relationship within a country between and among the countries on the basis of social,

economic, political and commercial aspects can be term as world system theory. Although, the

system was in practices from ancient period, it is highlighted in recent time by Neo-Marxist

theorists. Therefore, it is a neo-Marxists concept concerned with global economic system on

recipolocal relationship. It is closely related with dependency theory. The systems analyze

world economic system and give emphasis to the unity of world countries through market and

trading mechanism. It talks about division of labor and its direction of flow (including quality

and skills of the labors), economic activities of global market without the boundaries of any

c8untry. The division of labor and its volume determined by market activities area and global

relationship of the world. On the other side, modern world economy is characterized by unequal
distribution of resources, exploitation, vast economic gap, tough economic competition among

the powerful countries with their monopoly over global economic.

The system tries to show:

(1) Economic interaction between and among few countries (i.e. developed nations)

(2) Level of presents of world countries on global economy.

(3) Control over market mechanism through development different economic development and

political strategies.

Due to the world marketing system, local and small scale industries, as well as traditional skills

are displaced by global level industries and have created dependency in under developed national

or local area.

Dependency Theory:

Core country and satellite. The core, semi periphery and peri-pheri (metro and satellite).

Core country means G8 and G20 which is change to 20.n Semi peripheri developing nations

and NIC (newly industrialized country South Korea, Taiwan, Malaysia. Pheri under developed

country under developed nations (poor countries). Core country readymade goods are sold in

high cost or high price in periphery country.

Context of World System Theory:

As we know that the theory is related with economic activities of world people. Therefore, it is

one of the oldest systems which were identified only after modernization. i.e. in 1960's. For e.g.

during the period of "Kublai Khan"; "Silk road” was developed to export the silk from China to
West Europe. Similarly the activities of Marcopolo, Columbus and long before that Alexander

the Great, Sikandar the great show the system of world system theory in ancient period.

Therefore, Walter stein believe that the system was developed before medieval period. In this

context the theory can explain with following time period.

Note: Familiarity of Nepali Blankets in South India during the period of Mandev and

Amsuvarma (The Licchavi period of Nepal)

(A) Intellectual enlightment

It covers the time period up to Renaissance period of Europe including Greek and Roman

civilization. During the period different ideologies, knowledge, and philosophy was developed

in every sector of human life such as economy, political system, science and technology,

education etc. Therefore, it became the floor for the development of world system theory.

(B) Scientific Invention:

The development of new technology and auto machines in Europe led to industrial revolutions.

The mass production from large scale industries required large area of market system. In the

search of new market area, the Europeans broaden their economic relationship with different

countries. Similarly, social life mode of production political system, etc. was changed with

respect to industrial revolution.

(C) Mode of production:

Due to the development in science and technology and inventions of different machines, the

amount of production was multiply in drastic volume. Therefore, federal mode of production was
changed to capital mode of production and subsistence economy changed to competitive market

system. This condition became a strong background of world system theory.

(D) Global Economic:

Colonization of western countries and expansion of market brought the countries close to each

other for trading, common development policy and political system. Then, the countries bound

to a compulsory dependent situation for economic reciprocal system.

(E) Open Market System:

With the change of economic policies and competitive market mechanism, a world economic

system developed in the beginning of 20 th century with the motives of profit and prestige, the

owner of industries expanded their market area to sell their good. It was the main floor of global

economic system.

Assumption of World System Theory:

(1) Change in level of knowledge, mode of production and political system, expanded the

social and economic boarder after renaissances period of Europe. Similarly, mass

production forces the developed countries to expand their market system through political

and economic system.

(2) It was developed from the monopoly of economic production and capital goods of some

limited countries. For e.g. petroleum product is regulated by Golf countries and /OPEC

nations, monopoly of capital goods from western country USA and Canada. In recent time

China is nearly center of production for garments and electronic goods.

(3) Formation of two class countries in the world as producer and consumer supported for

global economic system. In this situation commodities and capital goods flow from core

countries through semi-periphery. Similarly, the cash flow in opposite direction.

(4) Rise of global inter- state from the exchange of goods and market flourished for world

system. Each country most maintained economic diplomacy with other countries for trade

and commerce.

(5) Open and commercial market has supported world system global economy, global market.

(6) In the flow of goods and cash money there are three levels of economic areas

(countries)/the core, Semi-periphery and the periphery.

Peripheri
Semi peripheri
Flow of capital goods

(Raw materials
agro-based)
Core

Cash
Variants of World System Theory:
I.M.P. Reform

(a) Immanuel Agrahari:

Argrahari has explained the world system theory from unequal exchange of goods, services and

cash. He developed his concept in 1972 to show the flow of those elements in the world.
According to him, the labors of poor countries work as high wages but for the same work the

labours of poor country (the periphery) work at very low wages which helps to concentrate the

cash in the core. Similarly, the periphery should depend upon a single and nearest core country

for trade and other purposes which makes the periphery more weak and dependent. For e.g. in

the comparison of Nepal and India, India is core country and Nepal is totally dependent upon

India. Likewise, the periphery states exports raw materials with low price and core countries

export high price readymade goods. It also helps to concentrate the cash in core countries. For

e.g. export of coffee from Nepal to Japan in low wages/low priced agro-based goods and import

of vehicles and electronic appliances readymade goods from Japan to Nepal, Nepali carpet in

European countries.

(World System Theory)

(b) Immanuel Wallenstein:

Wallenstein was born in 1930 in New York and got education from different university of U.S.A.

He holds the title of "Doctorate from the University of Columbia and taught sociology in

different university of U.S.A. He remained the head of department of sociology in Columbia

University from 1958 to 1971. Then he went Africa for the study of History and development of

capitalism and different aspects of development in the world. He always influences from any

social system that is taken as totality, the only kind of social system that has been existing as

mini system (closet local economy). In the world empire (central authorities) and global

economic. There a world system does not necessarily cover the world globe; it is a unit with a

single division of level and multiple cultural systems. In this concept, world economy is a world

system without a single or central authority. For e.g. Golf countries are the central authority for

petroleum product, U.S.A. is the central authority for IT (Information Technology) and dollar,
China is suppose as the factory of the world. To verify the different centers of authorities of the

world, he has given the example of dollar and Japanese yen, If dollar becomes weak it affects

whole world and Yen becomes strong. So, be believe that world economy and capitalism are

two side of a coin and go side by side. He has divided the world into 2 economic categories:

(block)- one is the world empire which is ancient Rome and the other is modern capitalist world

economy. A world empire is based on political (and military) political domination whereas the

capitalist world economy relies on economic domination.

Similarly, he has shown old world system and new world system- old world system- (1) African

produces slaves and labor (2) South Euro produces peasant and tenant farmers, (3) Western

Europe produces wage workers.

New World System:

(1) The core region has free labor.

(2) The periphery has forced labor.

(3) The semi-periphery has share- cropping.

Among those three categories of world, the powerful states have the central mechanism of world

system theory. The core countries produces high price, capital goods and other readymade goods

in large amount and export towards semi-periphery plays the role of core countries for the

periphery and plays the role of the periphery to the core countries. Similarly, the core countries

import low wages or unskilled man power, agro-based goods and raw materials. On the other

side the periphery imports ready-mades goods and capital goods with high price which creates un

ending dependent relationship with the core countries. It is resulted in core periphery

relationship which is determined by technological development and market mechanism.

Similarly, he says that over de3pendent of the periphery has created psychological-cultural

dependence of the periphery towards the core. The fundamental, political ideologies world

political economic, support for world system theory including class consciousness vs ethno

national consciousness within the nations as well as among the nation.

Criticism of Immanual Walleistein:

(1) His theory keeps the close relationship Andre Gunder Franks (A.G. Frank) dependency

theory. Both of them talk about core and periphery relationship with circulation of goods

and labors.

(2) As said by Wallenstein market 'determines the development the Europe’ is not supported

by all scholars.

(3) He has employed only core and periphery concept ignoring economic class relationship.

"World System Dependency Theory and Nepal":

(1) Most of the Nepali people are migrated from other country.

(2) In ancient period, Nepal had relationship with China, Tibet and India.

(3) They were nomadic and gradually changed to settlement like.

(4) Education system, politics and administrative system was guide by vides and other

religious books.

(5) Up to unification period of Nepal, the small states were independent and used to export

different goods to foreign countries. It continued to 2007 B.S. and then ration of

dependency increase gradually.

(6) The Sugauli Treaty of 1816 (1817 B.S.) made Nepal dependent with other countries for

ever.
(7) During Rana period, the Rana Government and families used national property and Income

as there private property and push Nepal to the state of poverty.

(8) After the independents of India and other industrial development of the world also affect

the mode of production of Nepal and other economic structure.

(9) Two Giant Asian countries India and China got high economic achievement which also

affects Nepal but in adverse direction.

(10) After 1990, the dependency ratio of Nepal has increased greatly including economic sector,

politics and development plans and policies. Therefore, there is no positive achievement in

industrial sector of Nepal. Many Nepali youth are going abroad for employment. Now

days, Nepal imports all of the things from daily commodities to capital goods from other

countries (semi- periphery and the core).

(11) Within the country there is credited different economic area as the core semi periphery and

the periphery. For e.g. (Kathmandu core and Banepa semi periphery).

Criticism of world System Theory:

The theory sees only economic relationship among the countries and market mechanism

determined by the level of hegemony of a few countries.

1. The scholars say that the relationship among the country can be creating not only from

economy but also geographical, political, historical aspects.

2. The rich country exploited under developed nation in different aspects like politics, culture,

as well as sometime psychological aspects.

3. They system sees only macro- level and it is unable to explain local level exchange

moderns micro level within a country. We can fine different expiator and exploited group
 or area within a country and there form the state of core-periphery relationships (e.g.

overhead bridge of Kathmandu and suspension road in different rivers of Nepal in the

remote areas).

4. It is not explained about investment in military activities and weapon exchanges or export

which is also an important part of economic determinism in the world.

5. The theory is unable to explain about advantages and disadvantages of world system in

under developed nation because the poor nations would not survive without the help of

core countries.

Implication:

1. The system shows that how capital goods, services and labor forces connected or interrelate

different countries of the world especially, the core and semi-periphery.

2. The theory has explained about the flow or accumulation of commodities in the world with

its causes and consequences.

3. Either the help of the theory we can predict the direction of the flow of capital and capital

goods between and among the countries.

4. With the help of the theory the periphery or underdeveloped nations have got the idea of

aids and assistances and its impact in these countries.

5. The backward communities or countries have got different ideas, knowledge and

technologies with the system in the world.

6. The theory has revealed the economic activities of the world its processes and necessarities

from mercantilism to modern capitalism.

(c) People Centered Development Approach:

It is a modern method of development of the world. It has many advantages then the previous

development approaches. In the past people used to take as subject by the state and it was

through that people were unable to do any developmental work by themselves using their

knowledge and skills. Similarly, people were taken as ignorant idealess and only the consumer

of development. Therefore, the state followed tickle down model of development for long time.

Hence, state used to distribute the development from top to bottom. From 1980's new concept of

development was emerged with modify concepts of development over the community people. In

other words, tickle down approach of development was gradually replaced by bottom up

approach of development. According to the concept people and development processes are two

side of the coin. Therefore, it is assume that:

(1) People are source of knowledge, skills, knowledge and ideas which is feed for the local

area.

(2) People are active actor of development but not consumer only.

(3) Possibility of sustainable development using local people.

(4) Maximum utilization of local technology and resources.

(5) Development is by the people not for the development.

Context of People Centered Development:

After World War Second most of the countries paid their attention for the reconstruction of

demolished part from the war. During the same period, trickle down model of approach was in

practice and dictatorship was falling down. In this situation, the daily life of poor people was
decorating day by day. Therefore, decades of 1960 and 1970 remained in worst situation and it

was called decade of crisis. Mainly three problems appeared during the crisis- poverty, rapid

degradation of environment and social violence. These problems were connected with social

justices, human right, sustainability and inclusion. This situation led to a vast economic gap

between rich and poor. According to World Bank, the between rich and poor was 40 times in

1960 and reached to 80 times in 1980. During this time development was taken as means of

social improvement from external agencies. In other words, knowledge, ideas, technology, plans

and policies were imported either from central government or limited developed countries. The

development elements were not fact in the local areas and hence, a new concept of development

was needed. There was a famous saying "think globally act locally."

To overcome such problems development activist brought different concepts for the

development of backward communities and marginalized group. For e.g., Robert Chamber

wrote a book "Putting the Last First", Salman wrote listen to the people, and Serenea wrote

putting the people first. Similarly, Davin Korten led down the theory of people centered

development approach. Likewise, Clark brought the concept of think locally, act globally

replacing the previous concept think globally, and act locally. Therefore, tickle down model of

development gradually changed to bottom of development model.

In Nepal, the concept of people centered development was introduced from 8 th five year plan. To

achieve its goal, government introduces different program like IRDP (Integrated Rural

development Program), SFDP (small Farmer Development Program), PCRW Productive Credit

for Local Women.

Assumptions of People Centered Development:

(1) Community people are experts, skilled and familiar with local resources rather than

unskilled, lazy, irrational and ignorant.

(2) Development should target to the local level or grass root level people because

development is for the people by the people.

(3) To improve living statement of local people, local knowledge, ideas and skills are useful

and those imported elements are hot fit.

(4) Sustainable development is possible from people’s participation because they take

development as their own property when they participate in development.

(5) Local market mechanism should be managed by local people so that they can sell their

production in the market with logical price. It helps to increase their income level.

(6) Development should be understand from etic and emic perspectives and emic perspective is

useful for internal perception of local development.

(7) People centered development reduce dependency of local and rural area because they are

actor, planner and consumer of development.

(8) Local people can utilize traditional. Knowledge, skills and local resources that reduces

expense of development investment.

Variants of People Centered Development:

Robert Chamber:

He is one of the world famous development activists. He was American citizen, got his master

degree from U.S.A. and came to India for his Ph.D. degree. During his researches period, he

visited different rural area and poor people of India. Then he developed new concept over
development method and processes from the experiences of people below poverty line of India.

Mainly, his theory is concerned with people's participation in development and equal

contribution of people (cash and kind) people over development activities. He says that

development should be able to change living standard of people towards positive direction with

quality life style. According to him community people are expend, skilled, and have the ability

to sue local resources in development. Therefore, he think that, people should be at the centered

of development involving them as actor and expert but not as subject.

He had highlighted that:

(1) There must be controlled market mechanism in favor of local people state should play

important role for the co-ordination of market and people.

(2) There must access of grass root level people in development, plans and policies and in

decision making level. Likewise, law and order, human right, and gender equity are other

important factor of development.

(3) Qualitative social and economic changed can support for sustainable development. It leads

towards quality life and mutual understanding.

(4) Basic human needs must be fulfilled (Food, clothes, shelter, education, health, work).

For such development of people, he has highlighted two method (PRA and RRA)- in which local

people realized the development as their own property. In this method people used local

resources traditional knowledge, ideas and technologies that have the capacity of sustainable

development.

Criticism of People Centered Development:

Although it is useful theory for the development of backward communities, marginalized group

and local people, has some draw back in its processes, implementation and decision making

level.

(1) All people are not equally capable to crab the opportunity so only the elite and cunning

person capture or utilize opportunities and local resources.

(2) Generally development activists criticized for external knowledge, technologies and

policies. However, in actual practice, the development of local communities without those

elements is very difficult or nearly impossible. It means we should take help from others.

(3) The theory has not explained about class struggle and conflict in local area.

(4) There is no clear explanation of social inclusion which is taken as major part of social

justice and equity.

(5) There is no explanation of political influences and it impact in community development. In

under developed countries, politics affect every part and sector of community development

like in Nepal.

(6) The theory does not speak about environment and its impact on development in local level

communities.

(7) Coordination between state and local level market mechanism is important for community

development and users group. The theory is unable to explain about the relationship.

(8) The theory is unable to take positive impact of global economy, WTO (World Trade

Organization), MNCs (Multinational Companies).

Implication of People's Centered Development:

(1) There is high rate of poverty reduction in local level after the implementation of this

development approach.

(2) It has highlighted compulsory people's participation in development and other public

activities. Therefore, local people have felt it as their own property.

(3) Sustainable development is supported from the development approach.

(4) Self-reliance, independency and social inclusion are taken as major part of development.

(5) Local knowledge, ideas, skills and technology as well as natural resources are utilized.

(6) Cultural ecology is connected with development and hence it has supported ecological

balance.

(7) Decentralization is another part of local level development which has supported for politics

and political inclusion.

(8) Income level of local people has increase from group work, co-operatives and participation.

(9) The voice of grass root level people has started to hear from central government because of

group effort.

Evolutionary and Dialectical Notions of Development:

There are different perspectives towards development of society and their transformation as

regular or sequential change. Evolutionary and dialectical developments are two development

visions explained by sociologist and anthropologist using Neo-Marxist perspectives.

(A) Evolutionary Notion of development:

Different scholars have explained the modern development through compulsory and continuous

evolution of the nature. According to them development is a continuous transformation of

society towards betterment using higher level of knowledge than before. Every elements of

society like social thought, level of knowledge, education, technology, infrastructure of

development have changed the society as well as those elements are also improved within

themselves. They change the society according to changing situation of environment,

environmental challenge and need of society. Therefore, we can see differentiation in society

with modified cultural practices.

We know that there are different changing trends of society and they are unilinear and

multilinear processes.

Unilinear type of development goes forward with refinement but not from differentiation. On

the other side, multilinear development takes place with different forms regarding cultural and

ecological variation. In broad sense, evolutionary development has following features.

(1) It is universal and continuous process.

(2) The development goes in a sequential order and sometimes in irregular way.

(3) The development takes place from simple to complex and homogeneity to heterogeneity

(Herbert Spencer).

(4) It is a transformation of society with differentiation.

(5) It symbolizes the change in social structure and cultural practices.

(6) It fulfills human needs according to time and situation.

(7) The rate of change of development is not equal because of it depends upon need of society

and situation of environment.

(8) Evolutionary development in general trend does not go backward.

 From sociological and anthropological point of view different scholars have given different

concepts about evolutionary development of society.

Auguste Comte:

Theological, metaphysical, age of positivism.

E.B. Talyor:

- Savagery, Barbarism, civilization from religion point of view Animism, Polytheism,

Monotheism.

Herbert Spencer:

- Organic analogy which means every society goes from simple to complex and homogeneity

to heterogeneity.

J. Steward- Cultural ecology (TE = C)

T = Technology

E = Energy

C = Cultural

(B) Dialectical Notion of development:

It is Marxist perspective on development according to the concept development is the

compulsory modern which emerges from community struggle, conflict and exploitation. In other

words, there are 2 opposite elements from which society goes forward with tension and

confrontation. Those elements are the exploiter and the exploited/or haves and have not,

capitalists and workers, landlords and serfs, masters and serfs. The high class people try to

control low class people and low class people try to be free from servitude. Similarly, different
interest and attitudes of individuals encourage for social conflict. To solve such every society go

forward with some change and transformation.

According to Neo-Marxist followers conflict is a universal modern and it help for social change

Karl Marx has explain the conflict modern of society through dialectical materialism, historical

materialism and classism. Similarly, he has given the concept of "law of negation of the

negation."

Features of Dialectical Notion of Development:

(1) External forces materials and struggle of society affect human thought, level of knowledge,

interest and attitude of community people.

(2) Individual or group of people struggle for property, prestige, power, and social status in the

society.

(3) Struggle and conflict of society is compulsory and continuous modern which brings

changes in the society.

(4) Economy and control over natural resources is the central theme of class struggle and it is

also a dialectical perspective of development.

Different Neo-Marxist like Sameer Amin, Paul Barren and Immunal Wallenstein have

developed different theories (world system theory, Dependency theory, modernization theory)

that are developed form Marxist theory and see the world developed from conflict perspective.

In the context of Nepal, the developments have gone through dialectical and conflict perspective

using political change. For e.g. overflow of Rana Government and Panchayat system brought

the platform of development in the country. For e.g. Rapid educational development after Rana

Government and communication development after (2046) restoration of democracy.

Contemporary Development Strategy: Ideology and Practices in Nepal

(A) State Led Development Strategy & Plan:

State is a permanent and legitimized institution with unlimited power authority as well as duties

and responsibilities. Generally, state consists of Territory, people, government, sovereignty.

States should play the role of facilitator regulator and mediator among these elements for their

smooth functioning and the welfare of the people. To perform different functions in the country,

state can make different plan policies, strategies for the development of the country and the

whole modern can be termed as state led development approach or strategy. In this approach,

state should have responsibility of development of the people from grass root level to the

national level. In this strategy, regional development distribution of natural resources and other

production, distribution of capital goods, employment opportunities, as well as involvement of

people in those activities has controlled and regulations of the state.

The role of state was inevitable before and during merchantalism period. During that time, state

was more autocratic and people had no facilities from the government and the state. After the

merchantalism, Adam Smith brought the concept of free market to reduces the burden of state

in industrial and business sector. Similarly, Karl Marx brought systematic plans and policies of

the state for the equal opportunity of people in the country. Therefore, most of the communist

country followed state led development strategy. Likewise, the capitalist countries also have

raised the role of state for the development of those nations. For e.g. during recent economic

crisis, the capitalist countries have supported for the industrialist reducing their taxes or from

cash money. In under developed nations, the role of state is more important because the state
must provides services oriented productions to the people with minimum cost. For e.g.

Education, health, social security.

Context of state Led Development strategy in Nepal:

Before unification of Nepal different small states had no clear territory and role for the

development of people and state. After the unification those petty states were unified and Nepal

became a sell defined greater country. Then, the role and responsibility of the state were

broadening with some rules and regulation. Specially, P.N. Shah and other courtiers laid down

some laws and acts and bi-laws to run the country using some scientific procedures, and then the

state established or conducted certain small scale industries, mines and other economics under

the controlled of the state. Upton Rana Government, state had sole responsibility of the

development of whole country with central plans and policies. On the other side, the Rana's

families used the national property as their private property. Judha Shamsher Rana establishes

some industries with the investment of Nepal government. After the introduction of democracy,

the role of state was realized for the development of people with centralized and decentralized

programme. In the similar context, Nepal started periodical development system as planned

economy. According to the program First Five year Plan was launched from 2012 B.S. It is

continued up to now and current plan is 12 th Three Years Interim Plan. Panchayat system also

gave continuity for planning economy with more responsibility the state. Only from 8th five

year plan decentralization, development of grass root level people and regional balance were

highlighted. In recent time government has provided Rs. 1 million per year to each VDC which

is the example of decentralization.

The geographical structure of Nepal is diversified with difficult topographics there is vast

economic and living standard gap among the people of rural and urban area. In this situation, the

state must play important role for the development of all walks of people. Similarly, Nepal is

highly affected from global economy and globalization, so state must protect traditional skills,

knowledge and cultural for the identity of the country.

Assumption of state Led Development Strategy:

(1) Market mechanism is profit oriented and gives priority for trade able goods. In this

condition state should give priority for service oriented production, infrastructure of

development, social security and justices other development from the principle of social

inclusion and welfare state.

(2) There is gap between the rich and poor in Nepal. State should support for poor people,

providing some special provision and positive discrimination for their betterment

(allowance for old age people for 70 years).

(3) Local market is important for small income generating people. State must manage the

local market mechanism and transport ant to sell the local production in local market or

national level market (Price of ginger in village is Rs. 5 in Kg and 60 Rs. per Kg in

Kathmandu).

(4) For economic growth and development state plays the role of mediator among different

ministries, department and companies.

(5) State allocates natural resources in a justifiable way for all levels of people. It helps to

increase productive and utility of the resources.

(6) Market mechanism is profit oriented and cannot fulfill all demands of people during the

period of scarcity. In this situation state must play important role to fulfill the demand.

(7) Although market is related with private sector government should manage its quality,

production area impact on environment, rules and regulations for sustainable production.

Similarly, it is the duty of state to create international market for the export of goods

(Economic Diplomacy).

(8) In modern time local market, traditional skills, cottage industries are displayed by global

market and MNCs (Multi National Companies). It is the duty of state to protect such

activities.

(9) State should support for backward communities and marginalized group to increase their

income level.

(10) State must keep friendly relationship with other countries and bi-lateral and multi-lateral

economic institution for better economic network.

(1) Planning In Nepal:

Development activities and economic plans with specified program's duration target group in

area can be term as planning. The history of planned development is not so long and shorter than

that Nepal. First time, it was introduced by Former USSR- United (Socialist Soviet Republic) in

1925, and then other countries also followed the planning system. It is said that planned

development is Marxist perspective and a major methods of development of a state or country.

In Nepal, the issue of planned development was raised during Rana Government and Juddha

Shamsher introduced planned development 1990 B.S. for 15 years. However, due to political
situation it was not materialized. After the introduction of Democracy 5 year planning was

introduced in 2012 B.S. as First Five Year Plan with the budget of 330 million.

In the beginning of planning infrastructure of development and agriculture was kept as centre of

development. From 8th five year plan, social development, decentralization, poverty reduction,

regional balance, sustainable development is taken as main objectives of the planning. Specially,

from 9th five year plan, poverty reduction, regional balance and sustainable development are only

objectives of the planned. Due to political disturbances 2 nd 11th & 12th are 3 years interim plan

and others were 5 year plan. Similarly, there was plan holiday in 2007 and 2059 to 2064. In this

sense, Nepal's planning history is not so good and it is satisfactory. In each planning government

cannot achieved or goals or objectives of a plan budget in ministry of finance. (It is called freeze

of a budget).

(2) Weakness of Planning:

(1) In the case of Nepal, most of planning is formulated without any feasibility.

(2) It is a kind of tickle down approach of development the grass root level of people cannot

take part in decision making level and selection of the program

(3) With plans and policies at the centre and such plans cannot reach up to target area.

(4) Nepali planning is highly influenced from foreign knowledge skills, plans and strategies.

They cannot fit in our locality.

(5) Rampant corruption.

(6) Lack of accountability.

(7) Weak government, political instability as well as frequent change of government.

(8) Lack of coordination and mutual understanding among the political parties for the

continuity of any ongoing project, plans, and strategies.

Strength of Planning:

(1) It makes easy to formulate development plans and policies with leisure period.

(2) Normal conditions external factors cannot affect the plan.

(3) Fixed social income, expenditure and target of plan that helps to finish within specified

time period.

(4) If political sector does not affect the plan, it is a good way to involve local people in the

development.

(5) A long term plan helps to expect level of development of the nations within certain period.

(6) To allocate resources and employment opportunities national level planning is the best fit.

Strength of State- Led Development Strategy:

(1) State helps for reduction of poverty (32%).

(2) It plays important role in the co-ordination of dual economy or mixed economy. (Capitalist

and socialist).

(3) State helps for import and export of goods as well as search of market in the global

perspectives.

(4) State can play role of mediator and facilitator for the commercialization of agriculture.

Likewise, government manages local markets to sell agro based goods.

(5) Only the state can reduce economic gap between rich and poor providing special

programmers for the poor.

(6) It is the duty of state to preserve traditional culture, knowledge, skills and technology of

different community people.

(7) State maintains peace and security in the country according to needs and situation.

(8) It provides opportunity to private sector to involve in economic activities. For this state

can introduce different programmers. Like privatization, economic liberalization, public

private partnership (PPP).

Weakness of state Led-Development Strategy:

(1) State is highly influenced from political parties and enlightens families.

(2) Monopoly of centre government while allocating natural resources.

(3) Lack of accountability in development activities.

(4) Lack of co-ordination of state with INGO's, NGOs and private sector. So, we can see

repetition and overlap of work or project upon same sector of development.

(5) Government is unable to mobilize its staff in full extend.

(6) Lack of far sightless in development plans and policies.

(7) Impunity and rampant corruption.

(8) Weak evaluation and monitoring system in development activities.

(9) Highly influenced from foreign knowledge, politics, and policies.

(10) High ambitious plans and policies with weak knowledge and administrative system.

Decentralization:
It is modern concept of democratic process. Every welfare state tries to facilitate local level

people in different development activities. To provide such facilities decentralization is

supposed major modern of political and democratic system. Decentralization means distribution

of power and authority to the local level government or public agencies. In other words, it is

called devolution of authority of delegation of authority.

It's concept was developed after II World War in the world and in Nepal, the issue was formally

introduced from 8th five year plan. However, after the introduction of democracy,

decentralization modern was appeared through different programmers like village Training

Centre, Panchayat training centre, concept of co-operative etc. The Act of decentralization was

introduced from 2048 B.S. and formally came into action in 2055 with some reformation.

According to the Act there are three tiers of local level autonomous authority.

(1) There must be mutual understanding and commitment among the political parties.

(2) The state should be welfare state with democratic and parliamentary system of government.

(3) Local self government should have authority and power to formulate plans and policies in

local level.

(4) The local level authority should have the right to collect taxes, and to mobilize natural

resources.

(5) The role of civil society, good governance principle of self reliance etc. are other bases of

decentralization.

After restoration of democracy, the modern of decentralization and its basic theme taken as

central part of political system and development activities. Therefore, the local autonomy has

got enough power from the centre for its politically mobilization of local people, use of local
resources, formulation of plans and policies, decision making power etc. Similarly, there is the

provision of 20% women involvement in politics at the ward level of VDC and municipality.

Unfortunately, the election of local level has disturbed since 2056 B.S. For the better

development of local level people, government directly provided Rs. 1 million to each VDC per

year and municipality get

Importance of decentralization:

(1) It supports for people's participation in development activities.

(2) Possibility of maximum utilization and mobilization of local resources.

(3) Development and conservation of local culture, tradition, traditional skills, technology and

knowledge.

(4) It brings co-ordination and cooperation between local level people and government.

(5) Supports for sustainable development with environmental balance E.g. (Community

Forestry).

(6) Justifiable and equal distribution of Natural resources and development and employment

opportunities.

(7) It reduces dependency of local people from the centre.

Market Led Development:

Human society is developed from preliminary stage to modern developed stage. From the

beginning of human civilization they used to exchange goods and services to fulfill their daily

needs. There was barter system for long time as means of trade and commerce. Up to the 6 th

century merchantalism was the major system of trade in the world. During this period, state had
the role responsibility functions and power of all trading goods. There was no concept of free

market, privatization and competitive trans-national market.

Adam Smith the only person who developed the concept of Laissez fair market mechanism. He

had explained it in his book "The wealth of nation" 1776. After him, Neo-classical economist

and Neo-liberal economist highlighted the important of market led development approach in the

world. The principles of merchantalism were collections of Gold, Silver, Diamond and other

precious gems to be the rich and developed countries. In state of flow of cash between and

among the countries.

With the rise of capitalism, the importance of market was realized and then private level

companies and industries were appeared in European Region. The rise of free market also

supported for colonization as well as search of new market. With the rise of capitalism, free

market stern nationalism competitive market was developed and the world engulfed in World

War I and II. After the World War, the capitalist countries developed a market as global

economy. Then, different program plans and policies were introduced to support the

marketization. Some of the programs were economic liberalization, privatization, globalization,

economic adjustment program etc. Local and private level industries change to global economic

units.

According to this concept, the company market itself controlled price and quality of the

production. Similarly, the demands and supply of the service also controlled the price

mechanism. In Nepal, the concept of market led development strategy was introduced from 8 th

five year plan. From the plan the modern of privatization, economic decentralization.

Involvement of private sector in production field, private bank was highlighted and supported by
the state. Prior to that, importance of market was not taken as main side of development.

However, Juddha Shamsher introduced company Act in 1936 A.D. and established some

industries and one commercial Bank (Nepal Bank Limited).

In recent time, according to economic liberalization and privatization, Nepal government has

given different facilities to the private sector. Likewise, foreign investors are welcomed to

conduct their business within the country. Eg. (Ncell, The Last Resort). It believed that, the

private sector mobilize natural resources, provide employment opportunities and increase export

as well as decrease the import.

Assumption of Market Led Development:

(1) Market mechanism performs its function freely without any corruption, extra expenses and

over staff burden.

(2) Private ownership and entrepreneurship can flourish easily because the owner has the sole

responsibility.

(3) It is a form of economic liberalization and privatization which support for economic

globalization that increase production.

(4) State can pay its attention to the development and welfare works of society when the

private sector involve in economic activities which creates competitive market.

(5) The price mechanism is controlled by competitive market demand and supply of the goods

and services. The state should control only the quality of the goods.
(6) Private sectors are one hand away from political influence but state-owned industries are

suffered from politics. Especially, it occurs in under developed countries like Nepal

(Trolly Bus, Sajha Bus, DDC).

(7) In market led development strategy, community or individual involve in productive sector

which increase their income level as well as support for their prestige, identity, healthy and

busy life. It also keeps them away from frustration, conflict, and unemployment.

Role of market in Production, distribution and consumption sector of economy in the peripheral

context of Nepal.

According to world economy Nepal is one of the member of LDC's (Least Developed Countries)

and lies in periphery on the basis of world economic system. It has followed different modern

economic practices for the development of local level people. For the policy, Nepal has

followed mixed economy, planned economy decentralization, privatization, economic

liberalization, membership of WTO etc.

For this policy, the concept of liberal economy was developed from third five year plan and

materialized it in development from 8th Five Year Plan. After that the private sector gradually

involved in industry, hydropower, communication, health, education etc. Especially, after the

restoration of democracy the liberal economy was flourished in the country. Therefore, in recent

time people are getting fast and easy services from the private sector. Nepali economy is

characterized from two types of production-

(1) The rural economy and production (feudalistic nature of production), and

(2) Urban economy and production. (Capitalistic nature of production).

The rural economy is based on traditional technology and skills, substance agriculture

production, narrow market mechanism etc. It is practiced in rural area because lack of

transportations, trainings, improved seeds and chemical fertilizers commercial market, reliable

price etc.

Features of Rural Economy:

(1) Agro-based production

(2) Traditional division of labor.

(3) Subsistence agricultural production.

(4) Traditional technology and skills.

(5) Limited market area.

(6) Farmer's do not get actual price of agro production

(7) Weak market mechanism.

On the other side, urban economy and production is based on modern technology and skills with

board market mechanism. Division of labor is clearly defined with technical knowledge.

Therefore, the goods are produce in mass amount. The need of rural and urban people is fulfilled

from this production. Similarly, being a peripherial country, the urban production of Nepal is

supported from global market mechanism with core periphery relationship. Further, if we

compare rural and urban economy of Nepal with world system theory, the urban is core and rural

area is periphery. Hence, the urban always exploited the rural.

Role of Market:

(1) Market plays important role for economic activities between rural and urban areas.
(2) The capital or investment flows from urban to rural because the rural area products

different agro-based goods.

(3) For rural professionalization of agriculture, its commercial business urban economy

encourage.

(4) Competitive urban market have supported for financial institution, insurance company and

Business Company in rural areas. For eg. Different co-operative in the villages, private

bank and finances in rural areas.

(5) The concepts of competition have emerged among the people of remote area.

(6) Rural tourism is the result of competitive market, and rural people have increased their

income level. For this, local culture and tradition has flourished or commercialized. For

e.g. Ghale Gaun, Sirubari and Syanja.

(7) Market helps for the internationalization of local agro-based product. For e.g. coffee of

Gulmi and honey of Chitwan and Nawalparasi has sold in Tokyo, London, New York.

(8) Market helps to organized scattered money in rural area.

Economic Liberalization and Globalization:

Economic liberalization means open market policy and involvement of private sector in industry,

trade and commerce. It is the main theme of capitalistic mode of production. It concept was

developed from 16th century, especially by Adam Smith. The concept of liberal economy rapidly

developed after World War II and gradually adopted by under developed nation like Nepal.

When the liberal economy supported for competitive market in international level then it is

called Global economy.

Economic Globalization means free flow of economic goods, capital goods, investment,

knowledge and ideas for commercial purpose. During World War II large part of development

sector was damaged in the world. For its reconstruction, global economy and free flow of

product got chance to cover the whole world either in the name of assistance, politics, or market

networking. During the course of time and institution called GATT (General Agreement on

Trade and Tariff) was established 1966 which was changed to WTO in 1996 with highly

commercial motivation.

On the other side, global economy was supported by world class financial institution like World

Bank, IMF, (International Monetary Fund), ADB Bank (Asian Development Bank). These

institutions increase their impact in the world investing large amount of capital in important

development sector. In 1985, a new program was launched by these institutions and the program

was structural adjustment program (SAP). Its main aim was to impose more loan upon

underdeveloped nations through which the rich countries got chance to controlled over the third

world.

Impact of Economic Globalization:

Economic globalization is the product of modern of capitalist mode of production. Every nook

and corner of human life is affected from global economy. Therefore, Wallenstein has said the

present world is the situation of single division of labor with multiple cultural diversity. It has

both positive and negative impact in different countries:

Positive Impact/Strength of Global Economy:

(1) It opens opportunities in world market for a capable individual product or industry.

(2) Local people can sell goods and skills in global market.
(3) Any country can involve in international forum.

(4) It helps to import foreign investment in the country.

(5) Human right, democracy and freedom are common issue of world people which is

indirectly supported by global economy.

(6) It helps to diffuse culture and