Beyond economic growth: neo-liberalism, alternative theories, and the future of economic development

Abstract

Yet the idea of development has not always been the same, with early development thinking rooted in the idea that economic growth leads to progress. It was all about producing and consuming more goods and services, traditional theories confirmed that higher employment and richer living standards. But these approaches have been criticized for failing to address the broader social and human development. Other approaches, for instance Sen’s Capability Approach and the United Nations Development Programme (UNDP) Sustainable Human Development framework, contend development should not be measured just by the monetary side of things. These methods highlight how things for example life expectancy, education, poverty reduction and the freedoms those individuals have all factors into how developed a country may be. It explores the different schools of thought that have formed the understanding of development, tracing the debates around neo-liberalism and its alternatives. Neo-liberalism, first advocated in the 1980s, presents economic liberalization, privatization and minimal state as being the main drivers of development. Unlike the alternative theories that have a notion of progress which also incorporates social and human well-being besides only economic development. Post-second world war development theories are examined: modernization, dependency, and human development models are discussed in the paper and their influence on policies and global economic discourse is highlighted in the paper. This study contributes to a broader understanding of development by critically analysing the weaknesses of neo-liberal philosophy alongside the strengths of alternative perspectives. The research article concludes work on the concept of development is much more than just economic growth. The only way to make real progress and ensure long-term prosperity is a multidimensional strategy — taking into account social equity, sustainability and human well-being.