criticism of the Keynesian model came almost entirely from Western trained economists,
sponsored by major Western institutions - e.g. the O.E.C.D., the World Bank, and the US
government. A predominantly M mode of behaviour was advocated for relationships across
the economy.
Policies in the 1970s: Over the 1970s, the dependencia approach was most effective in terms
of changing policies, though its effects were short-lived. As far as general economic policies
were concerned, most countries sustained the previous inward-looking macro-economic and
interventionist policies, in many cases supported by heavy borrowing from abroad. The
basic needs approach had a strong influence on donor philosophy but little impact on
developing country policy, while the neo-liberal philosophy only began to have major effect
in the 1980s.
The underlying belief of the dependency school was of unfairness in the world's economy:
this formed the background to OPEC and its successful efforts to raise oil-prices and the New
International Economic Order (NIEO) put forward by the G 77 in 1974. Other policy
manifestations of the dependency approach were the restrictions on direct foreign investment
and controls over technology transfer which were introduced most comprehensively by the
Andean Pact countries and India, although elements were adopted in many other countries.
The BN approach was widely adopted by the international community, first the ILO , then
taken up by the World Bank under MacNamara as well as by major bilateral aid agencies and
the United Nations special agencies which adopted a series of BN-style targets, such as
Universal Primary Health care and Universal Primary Education. However, few developing
countries put BN at the centre of their development strategy, or pursued serious redistributive
policies. In general, developing country governments were more impressed by the
conclusions of the dependency school, regarding the BN-approach, as an excuse by the
advanced countries to avoid the demands of the New International Economic Order.
Consequences: the employment/basic needs strand of thought had some effect in altering aid
priorities. It is less clear that it had much effect on developing country policies. While
progress in meeting basic needs over these years continued, there was no evidence of
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