Originally Posted by
M-A Lagrange
From vertnyc
Stabilization, development and economic are all but linear. In fact there are very little linearity in passing from a stabilization (non regulated economical environment) to development and even less from development to economic development. The linearity understanding is issued from Rostow theory in which we all start in stone age to end up in ultra capitalist liberal market. But time has shown that it does not work this way.
In developing countries or in recovery economy, the stabilization phase is the initial moment we would like to impose an initial take off. But this is mainly restricted by the comparative advantages the place has to offer (production, work cost, market access…). So in rural economy with low level of technology (not mechanized mainly) the first level for the populations is to accumulate enough to generate savings. What is called going out of the circle of poverty. This first step is realized by several means, one of them being neighbors' resources pillages. This very first step is not to be mistaken with the initial recovery step in which populations are trying to recover what they had previously. Marxist theorist call that the mercantile stage. Liberal will call it precapitalist or pre market stage. The reality is much unclear and both are mixed.
At this stage the artificial introduction of huge quantities of money may have a kick off effect. This is what is described in so many manuals: high intensity man power work as cash for work… It does work with very specific conditions.
First you need a minimum security. This is the F@*#ing rule nb 1. No way to get out of it. If you do not have it then you expose the populations and they turn against you.
Second, effects have to be immediate. Telling someone he will earn good money next harvest just doesn't work. People need to be paid at the end of the week. This will allow them first to increase their household revenues and then generate savings.
Third: include as much as possible everyone and let the elders or local traditional authorities solve out the question of who get employed or not. It will end up like this. So just start with it. You may discover that some insurgents are being employed. Well that is not that bad: you are more careful when it comes to attack the bank that feeds you. But also, make sure that every villages around has the same access to the programs. Nothing is worst than a village benefiting from all efforts and the surrounding ones having nothing. Because them you are not capable to provide rule nb 1.
Bookmarks