Assessing the impact of Neo Liberal thinking on Least Developed Countries

This paper is going to define and explain neo liberal ideology; it will outline the main feature of the ideology. The essay will look at a brief history of the ideology and then analyse the impact of the ideology on Least Developed Countries (LDCs). According to the United Nations LDCs are countries which exhibit the lowest indicators of socio-economic development, with lowest human development index ratings of all the countries. (Wikipedia). In addition the United Nation Office of the High Representative for the least Developed Countries , land locked Developing Countries and small island developing states (UN-OHRLLS ) explained that LDCs socio –economic development is characterized weak human and institutional capacities, low and unequally distributed income and scarcity of domestic financial resources. LDCs are constrained by political instability internal and external conflicts. In addition LDCs rely on a handful of primary commodities for as major export and fiscal earning.  (www.unohrrlls.org/en/ldc/25) In short these countries are the poorest of the world. Currently 49 countries are under the LDCs, 34 are African, 14 Asian and the Pacific and 1 Latin American. Africa LDCs including Zambia, Angola, Benin, and Burundi among others, in Asia there is Bangladesh, Cambodia, and Myanmar and in Haiti is the only country which is an LDC in Latin America and the Caribbean. (www.unohrrlls.org/en/ldc/25. The characteristics of these countries is important in explain the impact of neo-liberalism ideology to their socio-economic survival. For the purposes of this paper LDCs  will include less developed countries  the so called third world nations like Zimbabwe, DRC , Botswana among others.

Neo-liberalism is term which became prominent in the 1980s, scholars generally agree that it was a phenomenon which saw a resuscitation of classical liberal thinking after its demise due to state based developmental thinking. Scholars like Simon Clarke dates neo-liberalism foundation to Adam Smith and his famous Wealth of the Nation in 1776. He argues that Smith laid the foundations of neo-liberalism with his argument that free exchange was a transaction from which both parties necessarily benefited, since nobody would voluntarily engage in an exchange from which they would emerge worse off. (Clarke 2005). Liberalism embraced the notion that one man for himself and God for us all, the theory was premised on the assumption that each man pursues his interests and thus free trade should be the order of the day.  The State was to protect rights to property and leave the invisible hand (market forces) to determine economies. Thorsen and Lie contrary to the above assertion argues that neoliberalism could therefore scarcely be understood as the recovery of a lost tradition of liberal, political thought. It is an ideology different from, and often opposed to, what is more commonly described as liberalism. (Thorsen and Lie 2006). He argues the term liberalism is a generic term which is problematic in that it has passed in different times to mean different things. He argued on the basis of the difference between the views of classical liberals and modern liberals on the involvement of the state. He thus argues that neoliberalism is a revision of the classical liberalism not a mere revival of liberalism. For the purposes of this essay Thorsen and Clarke differ in terms of semantics however neoliberalism is a new and revised classical liberalism.

The point of difference between Classical liberalism and the Neoliberalism is the involvement of the state. Classical liberalists like Adam Smith paradigmatic shift from development thinking was premised on the failure of the state during Merchandist era to achieve economic growth hence his views that the state’s role should minimal and should be relegated to protection of property and restoring public order as the night watchmen. Laissez faire policy was the main feature of classical liberalism which stated that states were too parasitic too is involved in the economies, the state should not interfere with the market only market forces of demand and supply will lead to more freedom, prosperity and real democracy. (Thorsen and Lie 2006)

Contrary to Classical liberalist notion mentioned above neoliberalists argued that the state had a role to play in the economy which is to provide enabling environment for market thus by erecting infrastructure such as roads, providing education and primary health care. . According to Friedman the duty of the state was defence, law and order, the provision of public works that private enterprise does not find profitable to provide and lastly the protection from members of community who were regarded as not responsible. Peter Bauer argued that the state was to provide basic health and education and manage fiscal system thus taxation and spending system. http://www.hwd.wales.gov.uk .  Harvey cited that the role the state was limited to being a preserve the institutional framework of free market, guarantee the quality and integrity of money through its defence, police and legal structures and where there was no market it was the role of the state to provide infrastructure. (Harvey 2005). Their explanation argued that government interference will distort the balance of supply and demand and that regular giving aid would upset the price of goods and supply of labour. Clarke sees neoliberalism emerging from the failures of Keynesian State Model which had unseated liberalism after the Second World War , it had argued that market failures had caused the war hence state intervention was necessary in market regulations. (Clarke 2006). The cold war and the US war on Vietnam coupled by a recession led to a demise of Keynesian model of development and this rekindled neoliberalism in the 1980s. Clarke states what was seen as a mark of the abject failure of Keynesianism was acclaimed as a positive virtue by neoliberals, who reasserted the traditional liberal dogma of the purgative powers of the market amid the recession of the early 1980s, a reassertion that appeared to be justified by the subsequently resumed expansion of global capital on the basis of the further liberalisation of the world market. (Clarke 2006).

Neoliberalism is an ideology that was embraced by ‘special-interest power’ groups like the International Monetary Fund, World Bank and World Trade Organisation. (Todaro and Smith 2003). Martinez cites that around the world, neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank. (Martinez and Garcia 2000). The IMF and World Bank provide financial assistance to countries seeking them, but they apply a neoliberal economic ideology or agenda as a precondition to receiving the money. These financial institutions prescribed Structural Adjustments Programmes (SAPS) on third world countries. J. Sniegocki highlighted that two of the main embodiments of neoliberal principles have been “structural adjustment “policies and “free trade” agreements. (Sniegocki 2008). SAPS puts strong emphasis on production for export (rather than production to directly meet local needs), decreased governmental spending (which has often led to decreased investment in areas such as health and education),privatization of government enterprises (which has often led to higher prices and reduced access for poor consumers), reduced regulations on the activities of multinational corporations, the elimination of policies protecting small farmers, currency devaluation, increased interest rates, and related measures. (Sniegocki 2008:323.). It will be naive to assess the impact of neoliberalism without looking at impact of SAPS on LDCs.  

Neoliberal thinking prescription of SAPS is and has been disastrous to LDCs socially and economically. Rolling back of government on health and education impacted LDCs negatively. McMurtry claimed that in Africa an estimated 500,000 more children died from the imposed restructuring of their countries’ economies to ensure increased flows of money to external banks, while spending on health care declined by 50 per cent and on education by 25 per cent since these structural adjustment programs began. (McMurtry 1998). Oxfam International estimates that, in the Philippines alone, IMF-imposed cuts in preventative medicine resulted in 29,000 deaths from malaria and 90,000 in the number of untreated tuberculosis cases. (Brecher 1999). In Zimbabwe, the civil society made the following observations the removal of subsidies and cost recovery in education and health sectors, resulted in swelling numbers of children out of school, people dying of curable diseases in their homes and women giving birth at home or in scotch carts on their way to health centers. Civil society also contended that several health indicators deteriorated. Participation in prenatal services declined; maternal death and mortality rates of babies. Wages of health personnel declined since 1990 resulting in a mass exodus of qualified staff, low morale and general discontent. Hospitals faced critical drugs and equipment shortages; they faced congestion at casualty departments and mortuaries. The quality of health care deteriorated at most hospitals. (Dhliwayo 2001).

The microeconomic and macroeconomic impacts of Foreign Direct Investments (FDI) and the Multinational Companies on LDCs need to be looked in light of neoliberalism thinking. Neoliberalism can be said to be a ‘market led development’. (Söderberg 2002). Neoliberals argue that opening the market would attract foreign direct investments, which will lead to the following macro impacts such as technology transfer through increased cooperation. Gaur (2012:6) pointed out the developing economies which are capital starved can take advantage of the available technological spill overs to improve upon their competitiveness.

Walton and Seddon assert that neo liberal thinking maximize the role of the market and minimize the interventionist role the state. (Walton and Seddon 1994).  Liberal authors admit that opening up for FDIs may lead to adjustment costs in the beginning. The domestic market has to adjust to international demands and foreign competition. According to Prof E Epstein neo liberals strongly believes:

TNCs and FDI... will contribute significantly to the development process by (a) bringing in financial resources; (b) creating jobs; (c) transferring technology; (d) increasing exports by raising efficiency and enhancing marketing opportunities;(e) increasing the tax base; and, (f) increasing the availability, and reduce the costs of public utilities, consumption goods and investment goods, both in the short and in the long run. (www.twnside.org.)

Gaur points out that not all TNC are into manufacturing of goods but some TNCs engage in non-production functions like accounting, engineering, marketing, etc. these are high valued activities that promote manufacturing competitiveness and local capabilities for example TNC Limited which specialize in creating websites and marketing.

However it should be noted that the domestic market suffers from competition from Transnational Companies (TNC). While neoliberal’s scholars like Kono (1997) argues that competition with TNC will lead to efficiency and growth. Growth through FDIs mainly benefits the people who are directly or indirectly employed in the TNC, and their families. Soderberg (2002) argues that in Zambia, FDIs mainly benefits the people who are directly or indirectly employed in the TNC, and their families.  According to the World Investment report (1999), TNCs might "crowd out" more dynamically productive local businesses that cannot compete with TNCs for labour, finance and/or markets. Therefore opening up to TNCs without some support or protection for domestic firms may be unwarranted. (www.twnside.org). In Zimbabwe opening of markets led to the closure of companies like David Whitehead due to the cheap importation of textiles and clothes. S Carter observed the influxes of imported goods of perceived superior quality are eroding local manufacturer’s market shares. Imported products have often got demonstrable superiority over local products due to the lack of investment of local manufacturers. www.sba.muohio.edu. Below is a table of other small companies that closed in 1996 due to excessive competition from cheap importations.

Name of Enterprise	Date of closure	Workers who lost jobs
G and D Shoes	January 1996 2000	2000
Bulawayo Clothing	March 1996	1200
WS Craster Clothing	June 1996	950
Fashion Industrial Holding	July 1996	2000

Source: UNDP/UNCTAD Country (Zimbabwe) Assessment Report 1996

However while the TNCs have out competes the host industries, the consumers enjoyed reduced prices of goods. In addition the goods are of better quality in some cases. It is in this context that liberalism has in some cases beneficial to the consumers.

African countries cannot compete with Developed countries because of the weak infrastructure of developing countries. Most Third World countries cannot compete in terms of exporting in that they are landlocked countries it is expensive for them to export. Trade liberalization efforts cannot yield results in an environment marked by the weak infrastructure that exists in a number of African countries. High transport costs, the inefficiency of logistical services to international trade and weaknesses in support services shape the export performances of the African economies (Limao and Venables, 2001). Transport costs for landlocked countries are 200 per cent higher compared with those at the nearest port. Also, handling costs at African ports are markedly higher than those in developed countries. Thus, weak transport infrastructure and poor support and logistical services negatively affect the export performance of African countries, heavily reducing the impact of the reforms undertaken.( Hammouda and Jallab 2007)

The Neoliberal thinking of “free trade” brings unfair competition to local companies. TNCs such as Grafax ,Olam and Cargill have led to the demise of local cotton companies such as Cottoco. These foreign cotton mechanists acquire loans at low interests rates from their countries while Cottoco receives these loans at a high interest rate. While Cottoco a parastal is forced by the government to give inputs to farmers, these companies are exempted to do so. To repay the loan Cottoco has to buy cotton at a low price unlike the merchant companies. The farmers are forced to side market their produce to the merchant companies. The parastatal is struggling to achieve around 58 000 metric tonnes in Zimbabwe as a whole which Gokwe South as a district managed to achieve last year. (From an interview which the writer of this essay held with a management employee from Cottoco 24/8/13)

TNCs and MNCs have a tendency of employing the management from their parent countries thus perpetrating inequality. Workers from the host nation are paid according to the local standards while the management are paid according to International standards. In addition MNC employ indigenous people on contract basis hence giving them no prospects of pensions. MNCs only develop the area they are working on such as constructing roads for their benefits for example Natural Export Company in Mutoko, Zimbabwe. According to the Financial Gazette of 23 April 2010, Mutoko council filed a case against the company for non payment of development levies of US $68 540 , the paper further states that the company export companies were willing to pay US$400 per unit against US $1000 per unit that had been resolved by the Mutoko council. (The Financial Gazette of 23 April 2010). These MNCs in most cases are there to enrich themselves on the expense of the locals.

Thirlwall (2012) observed that trade liberalisation a component of neloliberalism did not raise the growth of exports, but raised the growth of imports more, thereby worsening the balance of trade as a percent of GDP and the trade-off between growth and the balance of payments. These insights have been codified in the principle of comparative advantage which, in turn, leads to the neo- liberal prescription that countries should specialize in the production and export of those commodities in whose production they enjoy a comparative advantage. Oyejide noted that a major plank of this view rests on the idea that the structure of trade of the developing countries and the underlying dynamics of the world economy imply that the gains from active participation in international trade are biased against the developing countries because their patterns of specialization fail to bring about significant dynamic and growth-inducing effects and they tend to specialize in those goods and sectors in which linkages with the rest of the economy are tenuous and weak. (Oyejide 2003). Smith seems to concur with assertion he observed that developed countries grow rich by selling capital-intensive (thus cheap) products for a high price and buying labor-intensive (thus expensive) products for a low price. This imbalance of trade expands the gap between rich and poor. The wealthy sell products to be consumed, not tools to produce. This maintains the monopolization of the tools of production, and assures a continued market for the product. [Such control of tools of production is a strategy of a mercantilist process. (Smith 1994). It should be noted that most LDCs do not have the capacity to surpass the rate of imports with their export capacities. Below is a table and graph which shows the exports and imports of African countries in 2010.

 Third World is struggling to export except Nigeria which is exporting crude oil. However Nigeria unemployment rate in 2010 was 4.3% against a population of 155 million. While the export industry through trade liberalisation has managed to create employment, 70% people live below the poverty dictum line. (CIA FACT SHEET 2010).

Neoliberalisation thinking encourages the exploitation of LDCs through unequal exchange of goods. For example a vast majority of developing countries depend on commodities as a main source of revenue. Primary commodities account for about half of the export revenues of developing countries and many developing countries continue to rely heavily on one or two primary commodities for the bulk of their export earnings. (Tan 2002). Laidlaw observed that more than 50 developing countries depend on three or fewer commodities for over half of their export earnings. Twenty countries are dependent on commodities for over 90 percent of their total foreign exchange earnings. (Laidlaw 2001)Most LDCs are producers of primary goods such as mining products such as oil, gold, copper , iron ore and petroleum and agricultural products such as cotton, sugar , coffee, cotton, sugar, and lumber. Below is a table which shows the share of developing countries in merchandise export.  It can be deduced from the table that the manufacturing and value additions capacity of developing countries is weak. However the strength of most developing countries is exporting primary commodities which usually fetch the least price on the world market.

Share of Developing countries in world merchandise exports , 1973-1995 ( % based)

	1973	1980	1985	1990	1995
Agricultural products	27	28	29	25	26 1/2
Mining Products	55	64	49 1/2	50	47 1/2
Fuels	68 1/2	72	54 1/2	60	57
Manufactures	7	10	13	15 1/2	20
Total merchandise	19	28	23	21 1/2	22 1/2

 Source: www.wto.org

However developed countries tend to benefit more than LDCs, in that they import cheap raw materials from developing countries, then export expensive value added goods back to the LDCs. Robbins cited a country that exports raw or unprocessed materials may gain currency for their sale, but they lose it if they import processed goods. The reason is that processed goods—goods that require additional labor—are more costly. Thus a country that exports lumber but does not have the capacity to process it must then re-import it in the form of finished lumber products, at a cost that is greater than the price it received for the raw product. The country that processes the materials gets the added revenue contributed by its laborers. (Robbins 1999, p 95)

Foreign Direct Investment has led some foreign nations into increased debts. According Ibrahim the flows of international capital to underdeveloped economies have not stimulated the process of economic growth and development because such flows are mainly in the form of official development finance, export credits, international bank loans, and bond issues with short term maturity, which serves the purpose of facilitating the import dependent behaviour of the underdeveloped economies, rather than trigger a process of domestic production that could evolve into industrialization process. (Ibrahim 2004).

According to King Neo liberalism is an ideological position based on strong beliefs of the general good by following the principles of free market and open competition, limited state intervention and welfare, individualistic self-interest, rational utility-maximization, and comparative advantage in free trade. (King 1987). Jajati K Pattnaik observed that globalisation is an instrument used to spread neo-liberalism. According to Pattnaik globalisation espouses the diffusion of knowledge and technology stretching de-territorialised economic growth. (Pattnaik 2008). John Sniegocki argues that neo-liberalism is synonymous with globalisation.  However scholars like Hutton & A. Gidden sees the economic growth as destructive. He asserted that ‘The main mantra of globalisation is “international competitiveness”. In the context of the environment this translates into the largest corporations competing for the natural resources that the people of the Third World need for their survival … Globalisation and liberalised trade and investment create growth through the destruction of the environment and local sustainable lifestyles. They therefore create poverty instead of removing it.’ ( Hutton & A. Giddens eds (2001) )

Another component of neoliberal has been global free trade agreements such as  the General Agreement on Tariffs and Trade (which led to the creation of the World Trade Organization [WTO]), regional agreements such as the North American and Central American free trade agreements (NAFTA and CAFTA), and a variety of bilateral agreements. Common features of these treaties include measures to reduce or eliminate tariffs and other “barriers” to trade, deregulation of investments and other capital flows, and increased protection of intellectual property rights such as corporate patents. The negative consequences of free trade to Third World Nations have been harm of small farmers. According Sniegocki, ‘free trade requires the elimination of tariffs that had previously protected them; small farmers in the Third World are forced to compete with the often highly subsidized products of First World agribusiness.’  (Sniegocki 2008, pp 325). In Mexico for example it was estimated that two million farmers were displaced since they implemented NFTA and this explains the migration of Mexicans to the United States of America .(http://www.globalpolicy.org/globaliz/econ/2003/11unfairtrade.pdf). In addition the loss of farm lands there is loss of cultural and spiritual heritage which is rooted in the land. In Greece the European Union policies on agricultural policies liberalisation and free trade led thousands of small and medium farmers out of their traditional occupation. (Sullivian 2004) In Greece unemployment level reached 12 per cent and the number of people below poverty 25 per cent in 2003. India while ninety-five farmers committed suicide in 1988 [in Punjab, India], there was a 10-fold increase by 1999 with 986 farmers committing suicide. [In Karnataka, India] more than 500 farmers have killed themselves since 1995. (Sullivian 2004) These suicides were protest against foreign competition and loss of land to foreign capitalists and TNCs.

Neoliberal policies have impacted LDCs negatively; in terms of food security hence it would be naive to prescribe them as wholly developmental. United Nation Development Programme (UNDP) reported in 1996 that Africa a once food surplus continent was reduced into food deficit. (UNDP-HDR 1996). In addition E. Vivas observed that ‘countries of the South that until forty years ago were self-sufficient and even had agricultural surpluses amounting to billions of dollars today have become fully dependent on

the international market and import an average of $11,000 million in food annually ... in the 1960s, for example, Africa exported $1,300 million in food, today the continent imports 25% of its food’ www.internationalviewpoint.org. According Malawi faced chronic food shortages because of the failures of the IMF/World Bank policies in Malawi’s agricultural sector, supported by the bilateral aid donors, (OWUSU & NG'AMBI 2002).Haiti was forced to apply a series of structural adjustment programmes and trade liberalization with the reduction of tariffs protecting the production of crops, including rice. This opening allowed the indiscriminate entry of subsidized US rice sold far below the

price at which local farmers could produce it. This resulted in loss of work for the peasantry and do date Haiti imports rice. www.internationalviewpoint.org. Many developing countries, especially LDCs, which are traditionally food-exporters, have become net food-importers over the past 20 years. Recent data for 2006 show that, on average, 20 per cent of the LDCs food consumption is imported, and in some countries the share is much higher (in Lesotho 67%, Gambia82%, Mauritania 32%, Malawi 31%, for example). (UNCTAD 2008).While in developed countries they are combating obesity many third world countries are fighting malnutrition. 

Food crises as mentioned above have led most LDCs into receiving Genetically Modified Foods as food handouts or aid and importation of biotechnology. It is believed that biotechnology affects the environment through loss of biodiversity, especially on natural food chains and the emergence of more aggressive pathogen populations. Health risks include the possible occurrence of undesirable toxic by-products in the crop, the transmission of antibiotic resistances (used as marker genes) to micro-organisms of human digestion and unknown allergic reactions by food consumers. (Virchow 1999).

Those who support free trade argues that openness to trade will signal commitment to outward-looking, market-oriented policies and enhance trading opportunities thereby attracting foreign investor’s intent on taking advantage of the new trading opportunities. (Dupasquier and Osakwe 2005).  To validate this claim they point to Taiwan, Singapole and South Korea.

Neoliberal thinking buttress American hegemony on the world. Embracing liberal thinking is embracing being Americanised. Neoliberalism thinking has a created a new form of imprealism which colonies economies rather than states. The former head of State of America in 2001 George Bush to his Congress remarked:

America has a window of opportunity to extend and secure our present peace by promoting a distinctly American internationalism. We will work with our allies and friends to be a force for good and a champion of freedom. We will work for free markets, free trade and freedom from oppression. Nations making progress toward freedom will find America is their friend. www.comms.dcu/ie/cm117/neoliberal.ppt

Friedman and Buer asserts that the production, distribution and trade of goods and services are best left to private (profit making) rather than public (government owned and regulated) organisations. http://www.hwd.wales.gov.uk. Neoliberals believe that privatization of state enterprises would bring efficiency and attract FDI. Neoliberalism has benefited America and other developed countries than developing countries. There has been large consumerism for American products such as Pepsi, Nike, Fubu and McDonalds etc. American programmes movies and music dominates the internet and Satellite Cable. It should be noted according to 2013 Index of economic freedoms the United States is ranked number 10 with 76% liberalization meaning that it uses its influence to lure other countries into liberalization while it protects its market. www.heritage.org.

Neoliberal thoughts of free trade have negative impact on environmental sustainability. Most MNCs emit hazardous chemicals into Third World countries. In effect, such neo-liberal policies are likely to expand industrialization (causing environmental pollution); globalize consumerism (encouraging consumption of environmentally hazardous products); multiply the emission of CO2 and CFCs (worsening the greenhouse effect and ozone layer depletion);Overexploit natural resources (depleting non renewable resources); increase the number of urban poor and rural landless (forcing them to build more slums and clear more forests); and, thus, threaten the realization of sustainable development objectives. (Hague 1999)These benefits do not tally with chemicals dumped in the LDCs. An examination of a wide range of regions from the Amazon Basin to northern Saskatchewan, to tropical rain forests of the Amazon, to the remote state of Borneo in Malaysia, to sub-Saharan Africa and Southeast Asia, reveals that the exploitation of natural resources, including energy production, timber harvesting, mineral extraction, oil exploration, hydro-electric and other mega-industrial projects by MNCs and host governments, has caused significant damages. These damages include dislocation and decimation of numerous indigenous communities and their entire ways of life. (Adeola 2001 p 41). Below is a graph to show the amounts of toxic worst that are emitted in the third world countries under the guise of free trade and neoliberal globalization (the spreading the neoliberal thinking globally.) by MNCs and developed countries. The table below shows that while toxic waste is increasing; the outputs per capita is declining; meaning that the damage surpasses the gains.

Transnational toxic waste schemes and CO2 emission in selected developing countries, 1980-1996

Country	Proposed Toxic Waste 1989-94	Place of Origin	CO2 Emissions (million metric tons)
			Metric tons		Per Capita
			1980	1996	1980	1996
Argentina	10,000 tons/month (sewage sludge)	U.S.	107.5	129.9	3.8	3.7
Bangladesh	60,000 tons/month (municipal waste)	US	7.6	23.0	0.1	0.2
Colombia	million tons/month (incinerator ash)	UK/US	39.8	65.3	1.4	1.7
Nigeria	Unspecified volume	UK	68.1	83.3	1.0	0.7
Papua New Guinea	600,000 metric tons/mo. (toxic waste)	MNC	1.8	2.4	0.6	0.5
Venezuela	40,000 tons of sewage sludge/year	MNC	89.6	144.5	5.9	6.5

Source: “Environmental Injustice and Human Rights Abuse:The States, MNCs, and Repression of Minority Groups in the World System” 2001

Supporters of neoliberalism argue that issues of environment sustainability should not be prioritised because host nations need to combat poverty first before they try sustaining the environment. J. Noberg cited that ‘A country that is very poor is too preoccupied with lifting itself out of poverty to bother about the environment at all. Countries usually begin protecting their natural resources when they can afford to do so. When they grow richer, they start to regulate effluent emissions, and when they have still more resources they also begin regulating air quality’. (Noberg 2003 pp. 225-6). Scholars like A. Moran are even blunt in their approach; he suggests that endangered species should exported for the benefit of human development than preserving. He states:

Restraint to trade in endangered species has done a great deal to prevent the use and hence harvesting and protection of wild animals. The rhino and the elephant are dangerous creatures that destroy village crops unless their ownership is vested and the villagers can harvest them and otherwise gain, for example by protecting them for tourism. Similarly, such issues are present in Australia where we foolishly prevent the export of parrots and other wildlife which transforms them into vermin competing for fodder and water rather than the incubator for a new farming industry. http://www.ipa.org.au/Speechesandsubmssns/amglobenv.html

It should be noted that the above assertion is parochial, myopic and destructive. There is need to ensure that the environment is preserved for long term benefits rather than destroy it for short term benefits. Devastation of the land has led to climate change and global warning.

Economic growth under the contemporary neo-liberal model does not appear to be solving unemployment (although much is done in the name of job creation). Trends indicate that the neo-liberal model (and the way it is being implemented) is creating a global trend towards ‘jobless growth’. Trans-national corporations control over 33% of the world’s productive assets, but as they tend to focus on capital intensive industries, they employ only about 5% of the global workforce. In South Africa unemployment rose 2.3 million to 4.2 million from 1995-2002 (Southern African Regional Environmental Education Programme 2006, p 5).  It should be noted that unemployment coupled with minimized state intervention creates absolute poverty. Below is a table reflecting the growth of poverty due to concepts neo- liberal thinking. Neoliberal principles are against aid and handouts hence government is rolled back from supplying subsidized services such food, health and education. This has detrimental effects on the poor through malnutrition and squalid living conditions.

The positive effects of globalization on productivity are also thanks to the transfer of advanced technologies and to the opportunities that developing countries can obtain from the flow of FDI, for example computers, cellphones and state of art equipment. However some of the technology is counter reproductive in that they sometimes lend people jobless. As machinery comes to LDCs new technologies replace manpower leading to retrenchment and more poverty. For example the introduction of the prepaid metres by ZEDTC will mean metre readers will be laid off.

Neoliberal thinking and globilisation has some positive impact on LDCs such as proliferation medicine through Doctors without Borders. However the neoliberal thinking put emphasis on patents and intellectual rights. This means that certain drugs will be protected by patents and  intellectual property rights which makes it difficult for the poor to access these drugs because huge sums of money is required to access them.

In conclusion neoliberalism thinking has negative consequences to LCDs to a greater extent. This paper has demonstrated that neoliberalism concepts such as market liberalism negatively affects domestic industries, environmental sustainability, exploit host countries employees, causes poverty, hunger and further more proliferation of GMOs which have adverse implications on health. This paper also observed that American culture and hegemony is exported at the expense of LDCs. The writer has also linked IMF and World Bank prescription of SAPS to LDCs as part of following neoliberalism dictates and its effects to LDCs. However neoliberalism thinking allows consumers to enjoy cheap and quality goods, acquire certain services such as medicine through oragnisations like Doctors without borders. Trade liberalism sees trickling of new technologies however the paradox is that such technologies has positive and negative effects as pointed out in the essay.

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Dr.Rashid Alleem, Sustainability Fact or Fiction Presentation , New Dehli, November, 2012.

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Interview

Cottoco Management employee, Approx Aged 32, Green Valley Gokwe 24/8/13.

                                                                  

Assessing the role of parents in schools.(By Chipo Chikambura)

Introduction

The school counseling and guidance program is a part of the total school program and complements learning in the classrooms. The program encourages students’ social, emotional, and personal growth at each stage of their development. With a comprehensive developmental counseling program, counselors work as a team with parents, and the community to create a caring atmosphere whereby children’s needs are met through prevention, early identification and intervention. Parental involvement in school guidance and counseling programs helps to establish good rapport between the school and the community from which children come from , enables both parents and teachers to have a shared understanding of children’s fears, hopes and needs, enables both parents and teachers to monitor the developmental progress and challenges of children, gives room for cooperative support between parents and the school with regards the guidance and counseling of needy children, helps parents to appreciate the children’s aspirations, ambitions and wishes, enables parents to have insights into the vocational needs their children. It also enables the counselor to have insights into the family background of the child, allows for networking which promotes the cultivation of productive relationships between parents and teachers, helps teachers to learn and practice tolerance and appreciation of other people’s way of life and their perspectives, gives parents the opportunity to freely interact with and guide their children in the context of and outside the school. The essay bellow shall discuss the above points on the role played by parents in school based guidance and counseling. 

. Definition of terms

Guidance                     : is the provision of information to groups or individuals, with common problems, so that the concerned individuals can reach informed decisions and choices for personal and social development

Counseling                  : is a process that enables a person to calmly address their psychosocial problems and issues in a supportive environment so that a greater understanding can be achieved. This can assist a person to make positive changes or it may help someone accept a difficult situation and become more resilient.

School                         : an educational institution where learners and staff members are involved in classroom and school practice.

Parental involvement in school counseling and guidance program is part of the total school program and complements learning in the classroom. It is child-centered, preventive, and developmental. Parents can contact a school counselor to help their children with a variety of issues, such as academic achievement; new school registration, orientation and transition; test interpretation; special needs; student crisis situations; family transitions; and higher education issues. When contacting a school counselor, parents often have many obstacles to overcome, such as culture, language, and their own bad experiences in school, a lack of understanding or feeling intimidated. Schools encourage parental involvement, and the school counselor is the primary contact for many parents in connecting with the school. The purpose of counseling with students, parents, and teachers is to help students maximize their potential.

According to Salawu (2000) children have greater academic achievement when their parents are involved in their education. Motivation, positive attitudes about self and sense of control over their environment improve with parental involvement in the schools. Children from minority and low-income families benefit the most from parental involvement. The parent is the most important resource for the school counselor and others. Parental involvement is critical in helping their children to be successful.

Counseling and guidance programs provides elementary students with assistance in understanding self and developing a positive self- image, showing respect for the feelings of others, understanding the decision-making process, developing effective study skills, being prepared to make the transition to the intermediate school, and gaining an understanding of the world of work (Makinde 1987). Counseling is conducted with students and parents individually and in small groups when requested and determined appropriate. It is short- term, voluntary, and confidential.

Parental permission is obtained prior to any extended individual or group counseling. Students are seen by the counselor when parents request and indicate a need and desire that the counselor meet with their children, students request counseling, and teachers, administrators, or other school staff refer the student. Parents are informed of counseling groups for children and adults. Group counseling sessions for children focus on building self-esteem, learning how to make or keep friends, developing good study habits, improving communication skills, preparing for the intermediate school, and coping with changing family situations. Topics for parent groups include child-rearing concerns, child development, and methods parents may use to help children experience healthy development and success in school (Egbo 2008). The elementary school guidance counselor works with parents through individual consultation, joint consultation with the children’s teachers, and parents’ discussion groups. In these ways the counselor assist parents to understand their children’s progress in school, select strategies to motivate their children, develop realistic goals with their children, become actively involved in their children’s school life, and understand the educational program.

The counselor may lead parent education and discussion groups and serves as a resource when parents study or discuss child-related issues. The counselor consults with parents to identify students with special abilities and/or needs. In this capacity the counselor helps parents understand the services available from other school staff such as the school psychologists, social worker, and resource teachers. The counselor helps parents find other professionals within the school system or within the larger community when extra support is needed.

Parental involvement enables both parents and teachers to have a shared understanding of children’s fears, hopes and needs. Children’s problems can also be identified when parents and teachers work together. Comprehensive developmental counseling is based on prevention, providing goals, which are integrated into all aspects of children lives. Early identification and intervention of children’s problems are essential to change some of the current statistics regarding self-destructive behaviors. If they wait until children are in middle or high school to address these problems, they lose the opportunity to help them achieve their potential, as well as feelings of dignity and self-worth. For many children, the school counselor may be the one person who provides an atmosphere of safety, trust, and positive regard (Kolo 2001).

School counselors work with principals, teachers, parents, and other staff to develop and implement school safety, and to prevent school violence. Students who have counseling programs reported being more positive, and having greater feeling of belonging and safety in their schools. Guidance counseling and parental involvement studies verify that when parents or guardians are involved and interested in their child’s academic life, the student is more likely to succeed. According to Makinde (1987), parental involvement should begin early in a child’s education. By demonstrating concern and interest in what a child is learning, support and encouragement can be easily attained. Parental involvement is an issue that needs to be continuously addressed.  Schools must encourage parent involvement. For example, community volunteer programs allow parents to get involved. Information about these programs must be provided through the guidance office. Another action geared toward increasing parents’ awareness is sending out a newsletter from the guidance department specifically addressed to parents.

Parental involvement allows students and their parents to work through difficult problems. Schools must encourage parent involvement in solving serious problems such as depression and drug abuse and coping with others such as pregnancy. Additionally, counselors can provide encouragement for parents who have become discouraged when their child does not live up to their academic expectations. If a student is doing poorly, the parents may think that nothing else can be done, and will give up on their child. In some cases, the parents may be unable to provide positive support for their child due to their own personal problems. For example, divorce can cause a parent to pull out of involvement with the student. Teachers respect the rights and privacy of students, but some issues need parent involvement.  Parent involvement improves student achievement.

In career guidance the child is taught about careers by parents sub-consciously. Thus by observation the child can decide to follow a parents or guardians career path. While children observe their parents career path, they happen to have direct experience. A number of parents bring work home, others often take their children to their work places, and some do not even discuss their work with their children while others rarely spend time with their families because of work. These experiences have a substantive impact on how children decide on their careers.

Hence, by unique experiences kids can decide to follow a parents/guardians career path or not. However, other children can decide to take certain career paths because of rather indirect family career experiences. Children can witness a cruel robbery and loss of a parent or sibling and thus decide to be a policeman/woman. A child can witness the incarceration of an innocent close relative and decide to be a lawyer or judge. Children can also admire a community friend who puts on a shiny blue air force uniform and just decide to follow the career path because of the intriguing uniform. Others can just have a relative who is no-longer addressed by name but job title like Doctor and just fall in love with the career related to the title. Lastly by advice parents/guardians can help shape their children’s career paths. Parents can thus not take a leading role in career decisions of their children but they walk side by side with their children and assist them to come up with the best career paths.

Conclusion

Involvement of parents in school-based guidance and counseling programs is vital as it helps to establish good rapport between the school and the community from which children come from , enables both parents and teachers to have a shared understanding of children’s fears, hopes and needs, enables both parents and teachers to monitor the developmental progress and challenges of children, gives room for cooperative support between parents and the school with regards the guidance and counseling of needy children, helps parents to appreciate the children’s aspirations, ambitions and wishes, enables parents to have insights into the vocational needs their children. Parents provide with information about family background of the child, allows for networking which promotes the cultivation of productive relationships between parents and teachers, helps teachers to learn and practice tolerance and appreciation of other people’s way of life and their perspectives, gives parents the opportunity to freely interact with and guide their children in the context of and outside the school.

Bibliography

Akinade, E.A (2002). Concise  counselling practicum. A basic text for colleges and universities. Ibadan, Olu Akin Publishers.

Egbo, A.C (2008) Organization of Guidance and counselling in schools, Enugu; Joe Best Publisher.

Kolo, F.D (2001) Elements of psychological testing for counsellors and psychologists, Zaria; Amadu Bello Co.

Makinde O. (1987), Fundamentals of guidance and counselling. London; Macmillan publishers,

Nnabuike, E. K. (2012), Practical Guide to effective Teaching .Enugu: Hallmark publishers.

Oladejo .O. (2006) Guidance and counselling. A functional approach, Lagos; John Lad

publishers Ltd.

Peters, S and Shertzer, B. (1974) Fundamentals of Guidance. Boston; Houghton Mifflin.

Salawu, A.A (2000) Introduction to guidance and counselling reading in education, Vol. 1.

Evaluating the role of Growth Pole (point) Policy in Promoting Rural Industrialisation (by BUHE S. NLEYA ,OSWALD S. CHISANGA AND LINDERRROSE MOYO

Growth Pole Policy has failed to promote rural industrialisation in developing countries because of a number of underlying factors such as failure of strategic positioning of growth points, lack of massive financial support and infrastructural development, siphoning of funds by the elites in the government meant for industrialisation into personal coffers, lack of consultation of rural people to participate in the process as well as lack of incentives to encourage the private sector to expand and open up branches in rural areas. This has resulted in designated growth points becoming white elephants with no meaning full industrial sector to talk about serve for beer halls, little grocery stores and grinding mills.

Growth points (GPs) are centres of economic activity which are artificially created for stimulated growth, through industries that will trigger a chain of reaction of production and promotion of associated services with the ultimate goal of improving quality life of the periphery surrounding that particular growth point (Conyers, 2001 pg 11). Growth Point (GPs) also denotes settlements which are earmarked or designed for economic and physical development (Wekwete, 1987).  The concept of growth pole was developed by (Perroux, 1955) and indicated that that development has to be brought about a certain concentration and agglomeration of economics in an abstract space and with variable intensities; the growth spreads by different channels and eventually affects the economy as a whole.

It is widely argued that Perroux’s initial concept of growth pole denoted an individual plant; one that occupied an abstract economic space, rather than a specific geographical space such as a city or region (Vanneste, 1971; Monsted, 1974; Mitchell-Weaver, 1991). In his latter writings, as Vanneste (1971) points out, Perroux refined his concept of growth pole as a dynamic unity in a defined environment. The unit is simple or complex: (a) a firm, or (b) group of firms not institutionalized, or (c) group of firms institutionalized, such as private and semi-public undertakings. Based on these features of the growth pole concept, other authors (Davin, et al, 1959) associated a functional attribute to the concept. They postulated that a growth pole is formed when an industry, through the flow of goods and incomes which it is able to generate, stimulates the development and growth of other industries related to it (technical polarization); or determines the prosperity of the tertiary sector by means of the incomes it generates (income polarization); or stimulates an increase of the regional economy by causing a progressive concentration of new activities ‘‘psychological and geographical polarization’’. Industrialization is defined as modernization process; where by social change and economic development are closely related with technological innovation resulting in largely transforming a human group from agrarian society to industrial one.

The conception of growth poles in the urbanization process sparked a momentum to jumpstart economic growth in developing and industrializing countries in the 1960s and 1970s, mostly countries in Latin America and Southeast Asia, by pursing a growth pole strategy. Planners and development economists set about identifying locations, which they believed, could act as growth poles or growth centers in the national urban system. In Africa the ‘growth point’ strategy remnants were first adopted in the of colonial era, with the strategy part of a broader initiative to reduce rural urban disparities, for instance in Zimbabwe it was adopted in the late 1970s (Manyanhaire et al, 2011 pg 3).

It brought much enthusiasm among governments at independence in most African countries as they viewed growth pole policy as the highway to industrialise rural areas and transform them through encouraging decentralization of investment in industry, so as to correct imbalances between rural and urban areas instigated by colonial governments through marginalising and under developing rural areas, in favour of development of cities, mining and commercial farms that proved to be a sphere financial benefits (Kambudzi, 1992 pg 268-74). This would help in decongestion cities and towns curb rural to urban migration due to creation of employment opportunities and availability of basic services to people in rural areas leading to a nationally balanced development pattern. However this policy has been practiced in several developing countries but most of the growth poles have never been successful because of different factors overlooked by the responsible governments (Dixon, 1990 pg 34).

Political gimmicks in many African governments have contributed to the failure of growth pole policy to industrialise rural areas from the onset, as despite the critique used to select a place and evaluate its potential as a growth point being set up in terms of economic considerations, the practical process of identifying GPs, departed from the set character and was heavily influenced by political considerations, for example in Zimbabwe (Zwizwai at.el,  2004     pg 21) notes that political influence, prestige, support and party structures were considered more important than the location of a growth point and in some areas proximity of a place to a rural home of a political heavyweight sufficed to locate growth points.

This resulted in the government not seriously considering the differences and diversity of rural areas, in terms of resources and potential business efforts that would in turn encourage industrialisation, such as certain resource based industries or agro based industries for a particular growth point. In Tsholotsho in Matabeleland North and Nyika in Eastern Highlands, the government did not support saw milling and furniture industries despite availability of timber (Conyers, 2001 pg 270).Therefore government incompetence in terms of implementation  of the growth pole policy in terms of resource availability has contributed to lack of industrialisation of rural areas in Zimbabwe since independence. Parr(1999) state that  the strategy is inappropriate when the pursuit of the growth pole strategy and the related concentration of infrastructure are not in keeping with the character of the location or the region in which it is being pursued.

Furthermore governments in developing nations have failed to channel development grants and action towards enhancing massive infrastructural development of growth points such as construction of roads to open up linkages and markets, provision of electricity in abundance and tap water which in turn act, would entice various industries to open new branches and spread their investment opportunities.  This has resulted in many industries being ignorant to invest in growth points, for example in South Africa growth points were established in national states after 1969 such as Isithebe in Kwazulu Natal   but until this present day, investor attitudes continue to favour established towns and cities, the chief reason being the investor goes where or she expect positive cost benefit analysis and minimal risk to business (Manyanhaire et al, 2011 pg 6).

The growth pole strategy is not feasible when various enabling factors are absent of sufficient capital outlay for successful implementation of the strategy effective policy instrument by which the strategy can be implemented and an administrative capacity equal to the task of implementing and coordinating the strategy. Therefore South African government failure to support infrastructural development has contributed to lack of industrialisation of rural areas as they are still caught in the downward spiral depopulation and decline.

Another mistake made by developing nations such as Tanzania and Kenya in as far as industrialisation of rural areas is concerned in terms of growth pole policy, was being overambitious immediately after independence in trying to redress rural urban inequalities as soon as possible through extensively establishing many growth points based on inappropriate western concepts and experiences and not the beneficiaries’ experiences (Henderson, 2000 pg 13). Thus one can articulate that wrong assumptions and no careful planning analysis to guide its application and implementation growth poles resulted in failure to capture different scenarios or situations of rural areas so as to come up with appropriate growth pole centre which would then spear head industrialisation.

Another reason for failure of growth pole policy to industrialise rural areas is that most developing countries seem to ignore essential ingredient for growth, as most centres designated for growth poles do not have the requisite potential or strong human resource base from where to ignite the processes of cumulative causation and subsequent growth. Thus, the decisions concerning these growth centres continue to be controlled from central government whom do not have information at finger tips of what is actually happening on the ground. In Zimbabwe an apparent continued lack of capacity among most district councils reflects the nature of disarray within the planning system making it difficult to achieve the elusive industrialisation of rural areas through growth points (Manyanhaire et al, 2011 pg 8).

Furthermore growth points have failed to achieve their mandates because of plethora of corruption that exists in most developing states due to lack of effective checks and balances to maintain transparency and accountability of funds designated for propelling growth points. This has resulted in the financing resources meant for industrialisation of rural areas being siphoned and diverted into personal use by elites at the expense of majority that live in rural areas and constitute almost 70% of developing nation’s population.

According to (Gantsho, 2008 pg 20-23) a growth point to become viable and sustainable there should be the right mix of policy and planning. A successful growth point planning strategy captures the wide base of the social and economic dynamics, as well as a clear plan to maximize the utilization of the resource base available to propel growth. Also other factors must be at play, like innovation or identification of new resources, in conjunction with favourable government policy support.

A number of innovative and flexible regional planning tools and development strategies that are been employed in other areas that could be considered in the African context. The approaches may differ due to variations in local and historical circumstances but nevertheless, the underlying principle is basically the same. Countries like India (Mukherjee, 2007; Bhandari, 2006) and Estonia (FAO,1997) have resorted to the growth poles strategy as the planning tool to accomplish rural developments that are functionally linked to the urban system, for instance The Indian Growth Pole Strategy for Rural Development in order to attract private sector initiative to accelerate employment-generating activities in the rural areas, the Indian government adopted a rural development strategy titled: Providing Urban Amenities in Rural Areas(PURA) with the sole objective of stimulating high growth in rural economies.

PURA envisages a combination of physical, electronic and knowledge resources at the local level in selected rural settlements by selecting a ring of 10 to 15 villages, connecting them with high quality transportation and telecom system, setting up key education and health facilities around the ring, attracting industry and commerce to the ring, and enabling internet connectivity for linking up with “far-flung areas”.

After regaining political independence Estonia adopted in 1995, a National Agricultural Strategy for the development of the rural economy. An important objective was to promote the development of competitive enterprises, efficient markets structures and international trade relations. The strategy viewed the development of competitive enterprises, efficient markets structures and international trade relations as necessary prerequisites to achieving the broader goal of improving the rural standards of living (FAO, 1997).In order to accomplish this vision of rural development, the strategy conceives a concrete program of developing regional growth centers aimed at strengthening local governments’ financial and administrative capabilities,  and improved channels for effective citizen participation in solving problems of common concern. For this to occur, the Estonian government is seeking to promote the emergence of regional growth poles through additional investments in infrastructure and the provision of transitory incentives for industries and services to locate in those poles.

In a nutshell one can say that as long various loopholes exists in the planning and implementation of growth pole policy in developing countries, industrialisation of rural communities will continue being a dream. Therefore the government needs to wake up and tighten their screws so as to gradually improve the living conditions for the poor in rural areas, which in turn would limit rural-urban migration.

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