book1

understand these diff erences are major causes to policy failure (Sen, 1984;
1988; 1999a; 1999b). The Sen Approach puts people’s happiness, capabili� es,
en� tlement, well-being, opportunity, par� cipa� on, and freedom of choice
in the centre-stage of development, that greatly infl uence contemporary
policy of development aid as well (Akiyama et al., 2003; World Bank, 2006).
These concerns are also considered in the present day aid management.
Dasgupta (1993) views development as curbing ‘des� tu� on’ and
enhancing ‘well-being’ of the people, from economic perspec� ves.
‘Des� tu� on’, the extreme condi� on of ‘ill-being’, results in personal calamity
and social weakness that are obstacles to produc� vity and ‘development.’
Author argues for role of the government to provide adequate diet and
health care to enhance the ‘well-being’ of the individual and the society for
achieving meaningful ‘development.’ Government can adopt an appropriate,
produc� ve and contextual aid policy through ‘resource alloca� on mechanism’
that poten� ally enhances ‘well being’.
Current paradigm of development is dominated by broad ins� tu� onal
aspects of interconnected public-private � es grounded on social and
contextual reality. Tools for this are local ownership, local leadership and
capacity development of the benefi ciaries (North, 1990; S� glitz, 1998a;
1998b). Thus dynamics of development has been changed over � me in the
face of success and failures of the development process from macro to micro
impact on real life.
Earlier exogenous development models, like Walt W. Rostow's 5 stages
of economic transforma� on and "Harrod-Domer" model, where addi� onal
investment leads to increase in na� onal output were based on the Marshall
Plan experiences in the developed society (Meier and Rauch, 2000; Todaro,
2000), which may not always be of appropriate use in the developing
countries context. Bauer (1970) argues that the Marshall Plan is not
comparable to development aid because the context of the then Western
Europe and present day developing countries are totally diff erent. There
was abundant amount of social capital in Western Europe and the period of
Marshall Plan was only for four years, while developing countries have been
receiving aid for the decades. In this context, Bauer (1970:34-35) writes:
The economies of Western Europe had to be restored while those
of [developing countries] have to be developed. Europe a� er 1945 was
demonstrable short of capital resources, especially stocks of food and
raw material, but not in the necessary human resources and market
opportuni� es. Its peoples had the a� tudes, mo� va� ons and ins� tu� ons
favourable to development, as was clear from the performance of Western
Europe for centuries before the Second World War.
Riggs (1964) has developed ‘prisma� c model’ from public administra� ve
standpoint, which is known as li� le more revolu� onary model of
development. The theme is that the transforma� on of tradi� onal society
into modern society takes place either ‘exogenously’ or ‘endogenously’.
Riggs is scep� cal to Western models of exogenous development for being
too induc� ve, ethnocentric and less of use in developing countries. He
Changing paradigms of aid eff ec� veness in Nepal 53