election of social democratic governments, with the explicit platform of moderating market
excesses, although global forces have restricted the ability of such governments to adopt
market-restricting policies.
The view that the exclusively pro-market stance of the early 1980s was 'A reaction too far'18
came to be widely shared. While the economic critique taken as a whole did not gain
dominance in such institutions as the World Bank and the Fund, three aspects were accepted
there - the importance of human resources, the need to raise investment rates (see, e.g.,
World Bank, 1993) and the priority to be given to poverty reduction. A further criticism (see
Chambers) was the lack of popular participation in either Keynesian or market models; the
desirability of a more participatory model, as an objective in itself and also to improve
efficiency and equity, gained wide acceptance among the aid community, and some
developing country governments.
Implications of liberalisation and globalization for group behaviour
Liberalisation has introduced a strong market ethos into norms of behaviour across the world.
Numerous enterprises have been moved from the public into the private sector. For those
that remain in the public sector, the soft budgets that previously permitted satisficing
behaviour have been largely stopped. Increasingly, the public sector has been required to
compete with the private sector, contract out to it, and to adopt market incentives in its own
transactions. In numerous ways, the culture of reforming societies has become oriented
towards M behaviour, replacing both P/C and COOP. This change has been reinforced by
rising inequalities within most economies (Cornia, 1999; Stewart and Berry, 1998). Rising
wage differentials - which occurred in most countries - have increased potential private sector
earnings for the more skilled and professional classes, while maximising individual earnings
has been accepted as a correct way of behaving, making it difficult for non-market groups, for
example in the health and education sectors, to avoid providing similar differentials. Another
consequence of the market-orientation and emphasis on incentives is that in many societies
provision for the poorest members has been weakened. Numbers of people in developed
countries, as well as developing, have been marginalised; they are often homeless and resort
18 A term used by Killick, 1988.
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