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Additional info for Foreign Aid and Development: Lessons Learnt and Directions For The Future (Routledge Studies in Development Economics, Volume 17)
In contrast, the ‘heterodox’ approach—best articulated by the concept of ‘adjustment with a human face’, embraced by the Unicef (see Cornia et al. 1987)—while supporting the need for adjustment, argued that the orthodox reforms focus extensively on short-term stabilisation and do not address effectively the deeprooted structural weaknesses of African economies that are the main causes of macro instability and economic stagnation.
It was not until the end of the colonial system in the late 1940s and 1950s, and the subsequent creation of independent states, that the revolution of rising expectations could start. Thus, the end of the Second World War marked the beginning of a new regime for the less developed countries involving the evolution from symbiotic to inward-looking growth and from a dependent to a somewhat more independent relation vis-à-vis the excolonial powers. It also marked the beginning of serious interest among scholars and policymakers in studying and understanding better the development process as a basis for designing appropriate development policies and strategies.
Suddenly, the achievement of external (balance-of-payments) equilibrium and internal (budget) equilibrium became the overarching objectives and necessary conditions to the restoration of economic growth and poverty alleviation. The debt crisis converted the 1980s into the ‘lost development decade’. Before the development and poverty alleviation path could be resumed, the third world had to put its house in order and implement painful stabilisation and structural adjustment policies. 5). The first one greatly enriched our understanding of the role of human capital as a prime mover of development.