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DVA2603 assignment 2-7 solutions 2020
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DVA2603/202/1/2020Tutorial Letter 202/2/2020
Urban Development
DVA2603
Semester 1
Department of Development Studies
IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
, 2
Feedback on assignments 02 - 07 for DVA2603
Dear Student
This tutorial letter contains feedback on assignment questions 02 – 07 for DVA2603. This
tutorial letter also contains important tips for exam preparation.
ASSIGNMENT 02
Discuss how neoliberalism has affected environmental sustainability in developing
countries through the following:
1. Economic growth
2. Industrialisation
3. Poverty
4. Population growth
5. Deregulation and privatisation
Readings:
• Study guide – learning unit 2
• Sustainable Urban Development Reader (2017) – contributions by: Lele; Haque
Assessment evidence shows that you can:
• Provide a brief description of the neoliberal policy framework adopted by various
developing countries.
• Provide a brief definition of environmental sustainability.
• Discuss how neoliberalism has affected the natural environment through;
o economic growth
o industrialization
o poverty
o population growth
o deregulation and privatisation
• Use examples from the reader to support your answer.
How to approach the question:
Provide a brief description of the neoliberal policy framework adopted by various
developing countries
The neoliberal policy framework is an economic framework that was initiated by the West in the
1980’s and it is still going strong today. It advocates maximizing the role of the market, trade
liberalization, open competition, attracting foreign investment, enhancing mass production and
consumption whilst at the same time limiting the role of the state. This includes advocating
reduced spending on welfare and poverty eradication programmes and deregulation and
privatization.
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Deregulation is when there is a reduction of government intervention in industries. An example
of this for instance is when government removes protectionist measures such as subsidies to
protect its country’s agricultural or domestic industries. Governments also have to abolish export
controls, import tariffs and import licensing. All these measures open up the countries’ industries
to aggressive competition and as a result the industries become vulnerable to international
market forces.
Privatization is when ownership of businesses is transferred from government to the private
sector. This usually means selling state enterprises to the private sector and contracting out
government services such as water, power and telecommunications to the private sector. A
good example is the privatization of Telkom.
Almost all developing countries have been affected by these neoliberal policies. This was as a
result of the fact that countries were forced to adopt these policies to secure international
assistance and loans from the World Bank. Neoliberal policies were part and parcel of the
Structural Adjustment Programmes that developing countries had to adopt to qualify for World
Bank loans.
Provide a brief definition of environmental sustainability
Lele (2017) states that sustainable development is about the following:
1) Integration of conservation and development,
2) satisfaction of basic human needs,
3) achievement of equity and social justice,
4) provision of social self-determination and cultural diversity and
5) maintenance of ecological integrity.
Sustainable Development is popularly defined as “development that meets the needs of the
present without compromising the ability of future generations to meet their own needs.” It was
accepted in this report (i.e. the 1987 Brundland report) that sustainable development is about
economic, social and environmental sustainability. All economic and social interventions must
be environmentally sound if it is to be sustainable”
The concept of Sustainable Development is widely contested. Therefore, there is a vast amount
of literature that exists on Sustainable Development. Students are encouraged to learn more
about the concept and the different perspectives on Sustainable Development by exploring
different sources of literature.
Discuss how neoliberalism has affected the natural environment
Haque (2017) states that neoliberal policies had the following outcomes: increases in poverty
and inequality, decline in state capacity, an upsurge of export-led production and foreign
investment and an expansion of industrialization and consumerism. All these have had a very
detrimental impact on environmental sustainability.
1. Economic growth
It is a primary objective of neoliberal policy to enhance economic growth and productivity
based on the principles of market competition. However, neo-liberal policies tend to over-
emphasise economic growth while underestimating the importance of economic equality and
environmental sustainability. Moreover, structural adjustment programmes have failed to
internalise environmental costs associated with production and disposal of commodities and
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