Read Small Is Beautiful: A Study of Economics as if People Mattered Online
Authors: E F Schumacher
Tags: #MacRoeconomics, #Economics, #Political Science, #Philosophy, #Aesthetics, #Environmental Policy, #Microeconomics, #Public Policy, #Business & Economics
But we do know something about the organisation and systematisation of knowledge and experience: we do have facilities to do almost any job, provided only that we clearly understand what it is. If the job is, for instance, to assemble an effective guide to methods and materials for low-cost building in tropical countries, and, with the aid of such a guide. to train local builders in developing countries in the appropriate technologies and methodologies, there is no doubt we can do this, or - to say the least - that we can immediately take the steps which will enable us to do this in two or three years' time. Similarly, if we clearly understand that one of the basic needs in many developing countries is water, and that millions of villagers would benefit enormously from the availability of systematic knowledge on low-cost, self-help methods of water-storage, protection, transport, and so on
- if this is clearly understood and brought into focus, there is no doubt that we have the ability and resources to assemble, organise and communicate the required information,
As I have said already, poor people have relatively simple needs, and it is primarily with regard to their basic requirements and activities that they want assistance. If they were not capable of self-help and self-reliance, they would not survive today. But their own methods are all too frequently too primitive, too inefficient and ineffective; these methods require up-grading by the input of new knowledge, new to them, but not altogether new to every- body. It is quite wrong to assume that poor people are generally unwilling to change; but the proposed change must stand in some organic relationship to what they are doing already, and they are rightly suspicious of, and resistant to, radical changes proposed by town-based and office-bound innovators who approach them in the spirit of: 'You just get out of my way and I shall show you how useless you are and how splendidly the job can be done with a lot of foreign money and outlandish equipment.'
Because the needs of poor people are relatively simple, the range of studies to be undertaken is fairly limited. It is a perfectly manageable task to tackle systematically. but it requires a different organisational set-up from what we have at present (a set-up primarily geared to the disbursement of funds). At present, the development effort is mainly carried on by government officials, both in the donor and in the recipient country; in other words, by administrators. They are not. by training and experience, either entrepreneurs or innovators, nor do they possess specific technical knowledge of productive processes, commercial requirements, or communication problems. Assuredly, they have an essential role to play, and one could not - and would not - attempt to proceed without them. But they can do nothing by themselves alone. They must be closely associated with other social groups, with people in industry and commerce, who are trained in the 'discipline of viability' - if they cannot pay their wages on Friday$ they are out! - and with professional people, academics, research workers, journalists, educators, and so on, who have time, facilities, ability, and inclination to think, write, and communicate. Development work is far too difficult to be done successfully by any one of these three groups working in isolation. Both in the donor countries and in the recipient countries it is necessary to achieve what I call the A-B-C combination, where A stands for administrators; B stands for businessmen; and C stands for communicators -
that is intellectual workers, professionals of various descriptions. It is only when the A-B-C combination is effectively achieved that a real impact on the appallingly difficult problems of development can be made.
In the rich countries, there are thousands of able people in all these walks of life who would like to be involved and make a contribution to the fight against world poverty, a contribution that goes beyond forking out a bit of money; but there are not many outlets for them. And in the poor countries, the educated people, a highly privileged minority, all too often follow the fashions set by the rich societies - another aspect of unintentional neo-colonialism - and attend to any problem except those directly concerned with the poverty of their fellow-countrymen. They need to be given strong guidance and inspiration to deal with the urgent problems of their own societies.
The mobilisation of relevant knowledge to help the poor to help themselves, through the mobilisation of the willing helpers who exist everywhere, both here and overseas, and the tying together of these helpers in 'A-B-C-Groups', is a task that requires some money, but not very much.
As I said, a mere one per cent of the British aid programme would be enough - more than enough - to give such an approach all the financial strength it could possibly require for quite a long time to come. There is therefore no question of turning the aid programmes upside down or inside out. It is the thinking that has to be changed and also the method of operating. It is not enough merely to have a new policy: new methods of organisation are required, because the policy is in the implementation To implement the approach here advocated, action groups need to be formed not only in the donor countries but also, and this is most important, in the developing countries themselves. These action groups, on the A-B-C
pattern. should ideally be outside the government machine, in other words they should be non- government voluntary agencies. They may well be set up by voluntary agencies already engaged in development work.
There are many such agencies, both religious and secular, with large numbers of workers at the 'grass roots level', and they have not been slow in recognising that 'intermediate technology' is precisely what they have been trying to practise in numerous in- stances, but that they are lacking any organised technical backing to this end. Conferences have been held in many countries to discuss their common problems, and it has become ever more apparent that even the most self-sacrificing efforts of the voluntary workers cannot bear proper fruit unless there is a systematic organisation of knowledge and an equally systematic organisation of communications - in other words, unless there is something that might be called an 'intellectual infrastructure'. Attempts are being made to create such an infrastructure, and they should receive the fullest support from governments and from the voluntary fund-raising organisations. At least four main functions have to be fulfilled:
The function of communications - to enable each field worker or group of field workers to know what other work is going on in the geographical or
'functional' territory in which they are engaged, so as to facilitate the direct exchange of information.
The function of information brokerage - to assemble on a systematic basis and to disseminate relevant information on appropriate technologies for developing countries, particularly on low-cost methods relating to building, water and power, crop- storage and processing, small-scale manufacturing, health ser- vices, transportation and so forth. Here the essence of the matter is not to hold all the information in one centre but to hold 'information on information' or 'know-how on know- how'.
The function of 'feed-back', that is to sag', the transmission of technical problems from the field workers in developing countries to those places in the advanced countries where suitable facilities for their solution exist.
The function of creating and co-ordinating 'sub-structures'. that is to say, action groups and verification centres in the developing countries themselves.
These are matters which can be fully clarified only by trial and error. In all this one does not have to begin from scratch - a great deal exists already, but it now wants to be pulled together and systematically developed. The future success of development aid will depend on the organisation and communication of the right kind of knowledge - a task that is manageable, definite, and wholly within the available resources.
Why is it so difficult for the rich to help the poor? The all- pervading disease of the modern world is the total imbalance between city and countryside, an imbalance in terms of wealth. power, culture, attraction, and hope. The former has become over-extended and the latter has atrophied.
The city has become the universal magnet, while rural life has lost its savour. Yet it remains an unalterable truth that, just as a sound mind depends on a sound body, so the health of the cities depends on the health of the rural areas. The cities, with all their wealth, are merely secondary producers, while primary production, the precondition of all economic life, takes place in the countryside. The prevailing lack of balance, based on the age-old exploitation of countryman and raw material producer, today threatens all countries through- out the world, the rich even more than the poor. To restore a proper balance between city and rural life is perhaps the greatest task in front of modern man. It is not simply-a matter of raising agricultural yields so as to avoid world hunger. There is no answer to the evils of mass unemployment and mass migration into cities, unless the whole level of rural life can be raised, and this requires the development of an agro-industrial culture, so that each district. each community, can offer a colourful variety of occupations to its members.
The crucial task of this decade, therefore, is to make the development effort appropriate and thereby more effective, so that it will reach down to the heartland of world poverty, to two million villages. If the disintegration of rural life continues, there is no way out - no matter how much money is being spent. But if the rural people of the developing countries are helped to help them- selves, I have no doubt that a genuine development will ensue, without vast shanty towns and misery belts around every big city and without the cruel frustrations of bloody revolution. The task is formidable indeed, but the resources that are waiting to be mobilised are also formidable.
Economic development is something much wider and deeper than economics, let alone econometrics. Its roots lie outside the economic sphere, in education, organisation, discipline and, beyond that, in political independence and a national consciousness of self-reliance. It cannot be
'produced' by skilful grafting operations carried out by foreign technicians or an indigenous elite that has lost contact with the ordinary people. It can succeed only if it is carried forward as a broad, popular 'movement of reconstruction' with primary emphasis on the full utilisation of the drive, enthusiasm, intelligence, and labour power of everyone. Success cannot be obtained by some form of magic produced by scientists, technicians, or economic planners. It can come only through a process of growth involving the education, organisation, and discipline of the whole population.
Anything less than this must end in failure.
Fourteen
The Problem of Unemployment in India
A talk to the India Development Group in London
When speaking of unemployment I mean the non-utilisation or gross under-utilisation of available labour. We may think of a productivity scale that extends from zero, i.e. the productivity of a totally unemployed person, to 100 per cent, i.e. the productivity of a fully and most effectively occupied person. The crucial question for any poor society is how to move up on this scale. When considering productivity in any society it is not sufficient to take account only of those who are employed or self-employed and to leave out of the reckoning all those who are unemployed and whose productivity therefore is zero.
Economic development is primarily a question of getting more work done.
For this, there are four essential conditions. First, there must be motivation; second, there must be some know-how; third, there must be some capital; and fourth, there must be an outlet: additional output requires additional markets.
As far as the motivation is concerned, there is little to be said from the outside. If people do not want to better themselves, they are best left alone -
this should be the first principle of aid. Insiders may take a different view, and they also carry different responsibilities. For the aid-giver, there are always enough people who do wish to better themselves, but they do not know how to do it. So we come to the question of know-how. If there are millions of people who want to better themselves but do not know how to do it, who is going to show them? Consider the size of the problem in India. We are not talking about a few thousands or a few millions, but rather about a few hundred millions of people. The size of the problem puts it beyond any kind of little amelioration, any little reform, improvement, or inducement, and makes it a matter of basic political philosophy. The whole matter can be summed up in the question: what is education for? I think it was the Chinese.
before World War II, who calculated that it took the work of thirty peasants to keep one man or woman at a university. If that person at the university took a five-year course, by the time he had finished he would have consumed 150 peasant-work-years. How can this be justified? Who has the right to appropriate 150 years of peasant work to keep one person at university for five years, and what do the peasants get back for it? These questions lead us to the parting of the ways: is education to be a 'passport to privilege' or is it something which people take upon themselves almost like a monastic vow, a sacred obligation to serve the people? The first road takes the educated young person into a fashionable district of Bombay, where a lot of other highly educated people have already gone and where he can join a mutual admiration society, a 'trade union of the privileged', to see to it that his privileges are not eroded by the great masses of his contemporaries who have not been educated. This is one way. The other way would be embarked upon in a different spirit and would lead to a different destination. It would take him back to the people who, after all, directly or indirectly, had paid for his education by 150 peasant-work-years: having consumed the fruits of their work, he would feel in honour bound to return something to them.
The problem is not new. Leo Tolstoy referred to it when he wrote: 'I sit on a man's back, choking him, and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by any means possible, except getting off his back.' So this is the first question I suggest we have to face. Can we establish an ideology, or whatever you like to call it, which insists that the educated have taken upon themselves an obligation and have not simply acquired a 'passport to privilege'? This ideology is of course well supported by all the higher teachings of mankind. As a Christian, I may be permitted to quote from St Luke: 'Much will be expected of the man to whom much has been given. More will be asked of him because he was entrusted with more.' It is you might well say, an elementary matter of justice. If this ideology does not prevail, if it is taken for granted that education is a passport to privilege then the content of education will not primarily be something to serve the people, but something to serve ourselves, the educated. The privileged minority will wish to be educated in a manner that sets them apart and will inevitably learn and teach the wrong things, that is to say, things that do set them apart, with a contempt for manual labour, a contempt for primary production, a contempt for rural life, etc., etc. Unless virtually all educated people see themselves as servants of their country - and that means after all as servants of the common people -