In this article we will discuss about the social determinants of economic development.
While seeking to identify the social determinants of economic development, we should bear in mind that the causes of under-development vary from country to country. It follows, therefore, that the remedies must also vary. Rostow spoke of the stages of economic growth and suggested that each country must take up remedial steps by taking into account the specific requirements of that country.
A quotation from Galbraith would be illuminating:
“……. we must recognize that economic development is a process — one that extends in range from new nations of Africa but slightly removed from their tribal structure to the elaborate economic and social apparatus of Western nations. At each stage along this continuum there is an appropriate policy for further advance. What is appropriate at one stage is wrong at another.”
An example may be cited in order to bring home the truth of the statement. It is often assumed that capital is the greatest stumbling block to economic development. This is a wrong assumption in so far as the statement is accepted as relevant to all countries, irrespective of the stage of economic growth of each particular country.
The truth is that in one case capital may be a stumbling block, in another it may not be so.
We may consider Galbraith’s pertinent observation on the point:
“The ability to use capital in any considerable volume is itself the result of development. If it is available before the conditions for its use are available it will be ineffectively employed or possibly wasted.”
This illustration underscores the important point that employment of a factor of production is not simply a matter of choice but is very much conditioned by cultural and social factors. The people must have the ability, experience and knowledge to make the best use of the facilities that are made available.
The response ratio of people to the availability of facilities and resources varies in terms of its ability to use properly the avenues that are opened up. Economic development is, therefore, not a function of economic resources alone, but of social and cultural factors as well.
The social determinants of work ethics as well as cultural and social factors which have a close bearing on economic rationality are to be taken into account while we seek to identify the social determinants of economic development In addition, some other social determinants of economic development may be discussed briefly.
To begin with, adoption of technology is not governed by simple mechanical considerations. Technology can yield results only when appropriate social conditions are present. A technology which is functional in one society may prove to be dysfunctional in another.
It is, therefore, not proper to speak simply of technological development. Technological development becomes meaningful only under appropriate social conditions. Hence, the use of the term ‘socio-technological’ development is more apt.
Galbraith’s note of warning as regards adoption of appropriate technology is very pertinent. He observes as follows: “The borrowing of technology is …. a subtle matter. In principle, it is highly desirable…. One must know, however, why the thing was worked out.”
Was it a step forward in process or product of universal application? Or, was it an adaptation to the requirements of advanced economic development itself? …. They (the first type) are as appropriate and important for the less as for the more developed country.
But much of the technology of the more advanced countries represents an accommodation to labour shortages or reflects the other special requirements of the more advanced economy.’ The observations of R.T. Gill are equally illuminating.
“Ideally, the under-developed countries would employ a technology which is neither the Western technology but a third technology which consists of an adaptation of modern methods to the special conditions of the under-developed world. Despite some efforts in this direction, however, this third technology does not really exist. Lacking it, the modern under-developed country typically tries to import the ‘latest’ Western methods, with the consequence that it faces acute shortages in certain areas (capital and trained personnel) while it has idle surpluses in others (large numbers of unemployed, unskilled workers).”
We may next take up the requirement of innovative personality for economic development. The formation of creative and innovative personality is largely a function of early socialisation and the nature and contents of education to which the child is exposed from primary stage onwards. In some societies, a child is taught to solve problems independently and encouraged to be creative.
In some other societies, particularly the traditional ones, there is more emphasis on conformity and children are encouraged to accept uncritically the lore and practices handed down from previous generations. Obviously, innovative personality cannot grow in circumstances obtaining in such traditional societies. Economic development in these societies would naturally be slow and halting.
We noted that technology requires a favourable cultural support in order to yield desirable results. This means that there is a preparatory stage to the adoption of technology in a meaningful manner. Obviously, a time lag between preparation and adoption must exist. In Western societies such a time lag actually existed.
For several decades the cultural traits and social conditions appropriate to technology were developed prior to the actual discovery and adoption of sophisticated technology. In underdeveloped countries, however, the problem is “to accomplish simultaneously both the industrial revolution and the preparation for such a revolution”. (R.T. Gill)
The mass media of communication carry advertisements of products turned out by advanced technology of the West. The end result is what is called “a revolution in expectations of the people” in under-developed societies.
The democratic political process cannot ignore the rising expectations of the people and the government is obliged to go in for sophisticated technology in the absence of appropriate cultural and social support. This creates complications for smooth economic development.
We have also to take into account the explosive growth of population in the Third World countries.
The dysfunctional aspect of explosive population growth in relation to economic growth is brought out by Professor Gill in these words:
“… population growth is not a stimulant to development… but a depressant. Because of the lack of industrial capital the growing labour force cannot find jobs in the city and therefore adds itself to the already congested rural areas. Rapid population growth in such ‘labour surplus’ economies may mean that despite the attempts to increase industrial employment, the absorption rate is insufficient, and that open and disguised unemployment increases as a percentage of the labour force—the reverse of successful development”.
In economic development one has, therefore, to reckon with religion and values. Particular values stimulate the process of development.
There are also values which retard the process. For instance, acceptance and obedience constitute the only meaningful and appropriate attitude towards life among the eastern people. They have a tendency to be fatalistic and to resign themselves to their fate. The powerful role of astrology and even palmistry in the daily life of contemporary India needs no documentation.
While commenting on the attitude to life of the eastern people. Dr. Radhakrishnan observes:
“Eastern civilizations are interested not so much in improving the actual conditions as in making the best of this imperfect world, in developing the qualities of cheerfulness and contentment, patience and endurance. They are not happy in the prospect of combat. To desire little, to quench the eternal fires, has been their aim”.
Obviously, this kind of attitude is not at all conducive to economic development.