Concept Note Development Paradigms ENG

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Alternative development models and practices from feminist perspectives Debate Issues1

I. Background For the past two decades, the dominant development model has centered on neo-liberal economic policy, emphasizing open markets, trade liberalization, foreign investment and macroeconomic stability and the reduction of the role of the state. Within this paradigm, international trade and the private sector have been flaunted as the best means by which to achieve national development and wealth.2 As a result, resources have progressively shifted away from an “aid for development” model that supports public intervention in development policies, to an “aid for trade” agenda that advances the notion that aid is most effective when used to increase private sector competitiveness and production.3 Although the International Monetary Fund (IMF) and the World Bank (WB) began imposing structural adjustment policies4 in the 1980s, global economic liberalization became stronger in the 1990s. The privatization of basic services such as water, education and health care has further increased inequality by decreasing both the quantity and quality of public health and education services.5 Empirical evidence and civil society voices, including voices from women’s rights organizations, have shown that fiscal privileges for businesses and the privatization of public goods have not resulted in broad based economic growth, or in gender-sensitive development.6 The effects of economic liberalization policies are gendered, affecting men and women differently. Women, for instance, carry a disproportionate burden of the effects of privatization through the absorption of duties once performed by the State (i.e. water, health care). While macroeconomic policy decisions have been imbued with technical jargon – 1

This document was developed by Natalie Raaber, Cecilia Alemany, and Anne Schoenstein (AWID). Iorio, Maria Rosaria, “Global Governance, International Development Discourses and National Policy-Making: Highlights of Critical Issues,” produced by IGTN, available at http://www.ifiwatchnet.org/?q=en/node/3826 3 Ibid. 4 Structural adjustment is a term used to describe the policy changes implemented by the International Monetary Fund (IMF) and the World Bank (the Bretton Woods Institutions) in developing countries. These policy changes are conditions for getting new loans from the IMF or World Bank, or for obtaining lower interest rates on existing loans. Through conditionalities, Structural Adjustment Programs generally implement "free market" programs and policy. These programs include internal changes (notably privatization and deregulation) as well as external ones, especially the reduction of trade barriers. Countries that fail to enact these programs are often subject to severe fiscal discipline, higher risk country indexes and lack of financial support from the international financial institutions. 5 Social Watch: http://www.socialwatch.org/en/informesTematicos/122.html 6 Ibid Ref.2. 2

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Concept Note Development Paradigms ENG by AWID - Issuu