Critique and Alternatives to Contemporary Approaches in International Economic Co-operation

The main objective of this chapter is to identify the humanistic perspectives of development co-operation. The chapter progresses in stages towards this goal by examining the socio-economic strategies of development co-operation pursued in the South in recent years, and by critically examining the various approaches to economic development currently being enunciated in the international fora. The chapter then turns to the formulation of a new set of prescriptions for development co-operation, namely, mobilisation of a socioeconomic formula financing of development projects, international economic co-operation favouring a better flow of concessionary resources to the developing countries, and self-reliant development of the South. The chapter also considers the feasibility of implementing the alternative approach to development co-operation introduced here. These strategies are shown to be based on the establishment of a viable capital market in the South; greater flow of communal resources through this capital market; effective exhortation and education at all levels of the international fora, particularly the South, on the institutional feasibility of such a common capital market and the urgent need for greater flow of external resources. In line with the prescription of economic development, the chapter then recommends a return to efficiency-equity-oriented development programmes as opposed to sheer growth-oriented ones in the process of development co-operation.