Although Robert Klitgaard’s book "Tropical Gangsters" is a "compelling and entertaining account of the author’s two-and-a-half year adventure in Equatorial Guinea," its deeper exploration of the failure of economic development offers a realistic and in-depth description of the difficulty in transferring the Western model of economic theory to the developing world. From this book, one can draw various conclusions in reference to the reasons for this failure; the possibility of these criticisms is founded upon Klitgaard’s own neoclassical explanations and other alternative economic theories in reference to conditions of the country’s life and political processes. Although the neoclassical reasoning prevails, as it does in all other IMF and World Bank policies, the general lack of variety in global developmental approaches brings up the possibility of more significant and complex factors than traditional theory proposes. Both neo-Marxism and humanism offer points of view that address some of these overlooked issues. The former stresses the significance of ulterior motives of such aid organizations as the IMF and World Bank; the latter delineates the importance of non-traditional economic variables and outcomes in the overall success of economic development. In regard to the explanatory and prescriptive power of both of these policies, I find that humanism portrays more clearly the problems within the current paradigm of economic development and shows potential correctives for the future in order to increase effectiveness of foreign development efforts.
At a glance
- Applies humanist and neo-Marxist perspectives to Klitgaard’s Equatorial Guinea account
- 17 sources in the bibliography
Table of Contents
The document does not contain a table of contents.
Objective and Themes
This essay examines why economic development efforts in Equatorial Guinea fell short, using Robert Klitgaard’s account in Tropical Gangsters as the basis for comparing neo-Marxist and humanist explanations. It asks which perspective better explains the difficulties of development policy and offers more promising directions for future efforts.
- Neo-Marxist interpretations of dependency and exploitation
- Humanist approaches to well-being, equality and capabilities
- Structural adjustment and international development institutions
- Culture, history and local participation in development planning
- Competing explanations and policy prescriptions
Excerpt from the Book
II.
Humanism is an alternative lens through which one can look at the situation of economic underdevelopment. This approach claims to address a wide range of fundamental issues related to development, many of which are neglected in traditional theories of economic development; humanism focuses on choices and well-being rather than numerical data and general macroeconomic representations of society. Thus more relevant considerations of economic development are needed in order to obtain successful outcomes. The most important idea within this school of thought is that wealth, rather than being the goal per se, is a means toward the end of general well-being. Therefore, GDP as an indicator of economic development is insufficient and irrelevant. This is because “different people and societies typically differ in their capacity to convert income and commodities into valuable achievements” (Clark 2006, 2). Also, goals and desired outcomes are not adequate in defining the traditional indicator of utility; maximizing utility is only one of the many aspects of a fulfilled human existence, which also includes attainment of freedoms and available opportunities.
Thus to expand these capabilities, the ability of individuals to participate in governmental decisions that affect their freedoms is essential. Equality of participation is essential because this determines equal access to outlets of well-being and is indicative of a country’s level of justice in general. Inequalities in these domains not only diminish a country’s average level of well-being but also further reduce the well-being of the marginalized because of the significance of relative, rather than absolute, equality.
The emphasis on relative equality, which addresses the amount gained (or lost) in relation to others who are gaining (or losing) at the same time, is especially important for the study of economic development. For example, this approach does not purport that person A will benefit just as much value from an x percent gain if person B gained nothing as opposed to the same percentage (which would constitute the idea behind absolute equality). Rather, person A’s perceived well-being is higher in the situation where person B gains nothing because they feel as if they are better off relative to their previous situation. The “temporary” inequality brought about by shock therapy and policies such as structural adjustment are not supported by the humanist approach because of the misery that certain parts of the population must live with. Thus, the inequalities of a society not accounted for by GDP are an important factor to recognize if we are seeking to reach as many people as possible with economic development policy.
Section Summaries
I.: This section outlines neo-Marxist accounts of exploitation, dependency and the relationship between developed and developing countries. It also considers differences in economic history and the effects of integrating poorer countries into capitalism.
II.: This section introduces humanism as an approach to development that emphasizes well-being, capabilities and participation rather than economic indicators alone. It discusses inequality, cultural context and the value of bottom-up perspectives.
III.: This section applies both perspectives to Klitgaard’s account of Equatorial Guinea and compares their explanations and prescriptions. The author argues that humanism provides the more persuasive account and considers its implications for development policy.
Keywords
economic development, Equatorial Guinea, neo-Marxism, humanism, structural adjustment, foreign aid, dependency, capabilities, inequality, World Bank, International Monetary Fund, Robert Klitgaard, Tropical Gangsters
Frequently Asked Questions
What is the essay about?
It examines competing explanations for the difficulties of economic development in Equatorial Guinea through a discussion of Robert Klitgaard’s Tropical Gangsters.
What are the central themes?
The essay addresses dependency, exploitation, human well-being, inequality, structural adjustment and the importance of social and cultural context.
What is the main question?
The author asks how neo-Marxist and humanist perspectives explain the development effort described by Klitgaard and which offers more useful guidance for future policy.
What method does the author use?
The essay uses comparative theoretical analysis, applying neo-Marxist and humanist perspectives to Klitgaard’s account and drawing on published scholarship. It does not report an original survey or interviews conducted by the author.
What does the main section discuss?
It applies the two perspectives to development efforts in Equatorial Guinea, discussing foreign aid, policy conditions, inequality, cultural differences and government institutions.
Which keywords characterize the work?
Key terms include economic development, Equatorial Guinea, neo-Marxism, humanism, structural adjustment, foreign aid, capabilities and inequality.
How does the essay describe the neo-Marxist perspective?
It presents neo-Marxism as emphasizing exploitation and dependency within a global capitalist system, including relationships between powerful countries and national elites.
How does the humanist approach assess development?
It emphasizes people’s well-being, freedoms, capabilities and participation, rather than treating economic output as a sufficient measure of development.
Which perspective does the author find more persuasive?
The author favors the humanist perspective, arguing that it more clearly identifies neglected social and political factors and suggests ways to improve development efforts.
- Citar trabajo
- Kaia Smith (Autor), 2011, Humanist and Neo-Marxist Explanations of the Failure of Economic Development, Múnich, GRIN Verlag, https://www.grin.com/document/412000
