How Nations Achieved Wealth According to Adam Smith's Wealth of Nations

Adam Smith
- Renowned Scottish economist, philospher and author
- Studied Latin, Mathematics, history and writing at the
Burgh School, England
- Enrolled into the university of Glasglow at the age of 14
and the University of Edinburgh
- Appointed as a member of faculty at the Unversity of
Glasglow in 1751
- Appointed as the rector of the University of Glasglow
- Died in 1790 at the age of 67

Main Message
◇The main message of wealth of
nations is the path taken by
developed nations to arrive at the
wealthy nation status.

DIVISION OF
LABOUR
• Surge in production quantity
is evidence of a thriving
society
• Division of labor ensures a
faster approach for
production
• Higher dexterity for each
worker ensures better
output

DIVISION OF
LABOUR
◇Smith recognizes certain problems
with division of labor eg.
• It may encourage automation –
leading to the loss of jobs
• It is not always applicable. – the
periodicity of farming practices for
instance does not allow for division of
labor.
◇Given that the pros outweigh the cons,
division of labor is still highly advocated
for.

NATURAL
WAGES
- Alternative to achieving
prosperity
- Capitalist Society
- Production Minimum
- Time derivative

DEMAND AND SUPPLY
- Individual’s willingness
- Employment inequalities
- Rent
- Modernization
- Produce of silver and its value

Foreign Trade
- He argues against
mercantililsm and
advocates for unregulated
foreign and domestic trade
- He argues for specialisation
with the claim of reducing
the cost of trading
- Free trade without
restrictions

CONTRIBUTION
TOWARDS SOCIETY
- Liberty : Limited Government Intervention
- Efficiency : Division of Labour and
Specialization
- Community : Free Trade
- Equality : Equal Employment

CRITIQUE
- Adam Smith mostly talks about things in relation to England
- Specialization has its pros but also presents some cons as well.
- Free Trade might not be the best form of generating wealth in a
country.
- Style of writing used by Adam Smith makes it difficult for modern
English users to follow what he is putting across.
- Some examples used in his book are not relatable in present
day.
- Adam Smith says that people work or make products based on
their self-interest. Not necessarily the case.
- He also advocates for reduced intervention by the government
on trade. This can serve as a grounds for mischievous conducts.

IMPLICATIONS FOR
CONTEMPORARY
LEADERS
- emphasis should be placed on self-sufficiency
- Government or organizational institutions with board of leaders
should select people based on their specialization
- Leaders should not have the pursuit of self interest
- Government leaders should not over-step the boundaries of their
power

OUR VIEWS
- Relevance of Specialisation
- Free trade
- Equal opportunities

Background of Ha-Joon Chang
◇Born: 7th October 1963
◇South Korean
◇Wrote a thesis on The Political Economy of Industry- Reflections on the role of
state intervention for his PhD, which relates to his book, Kicking Away the Ladder.
◇Institutional Economist, Reader in Political Economy of Development at
the University of Cambridge
◇Ranked one of the top 20 World Thinkers by the Prospect magazine in 2013
◇Served as a consultant in the World Bank, Asian Development Bank, European
Investment Bank, Oxfam and various UN agencies.
◇A fellow at the Center for Economic and Policy Research, Washington D. C.
◇Serves on the advisory board of Academics Stand Against Poverty
◇Has been an important academic influence on the president of Ecuador.
◇His book, Kicking Away the Ladder, won the 2003 Gunnar Myrdal Prize of the
European Association for Evolutionary Political Economy, as well as the 2005
Wassily Leontief Prize

Good Policies
1. Conservative macroeconomic policy
2. Liberalization of international trade and investment
3. Privatization
4. Deregulation
Chapter 1

Key Institutions
1. Democracy
2. ‘Good’ bureaucracy
3. An Independent Judiciary
4. Strongly protected private property
5. Transparent and market-oriented corporate
governance Chapter 1

Questions the Book Tries to answer
1. Are these recommended policies and institutions appropriate for developing
countries?
2. Aren't they kicking away the ladder for the developing countries?
Chapter 1

The Orthodox Myth About USA and Britain
◇The myth states that The two countries adopted free trade and laissez faire during their
development.
◇Claims that other countries consequently adopted it because of the “benefits”.
◇Describes the 19th century as the free trade era- Britain, other European countries and
their colonies adopted unilateral free trade.
Despite the orthodox myth:
◇The NDCs used protectionist policies during world wars 1 and 2, and even after, when
they did not need to.
◇Even after reaching technological peaks, they still used protectionism to pull themselves
from competition.
Some Policies they used to pull from competition
◇Controlling skilled workers migration and machinery export.
◇Pressuring less developed countries to open up their markets
However, these other economies retaliated by smuggling machinery and poaching of
workers.
Chapter 2

The Pioneers
BRITAIN
◇Promoting local industry by banning import of woolen cloth.
◇Walpole's law of 1721 -dropping import duties on raw materials for exporting manufacturers, export
duties on manufacturers abolished, export subsidies increased, regulation to control quality of
manufactured products.
◇Widening technological lead over other countries by high tariffs on manufactured products.
◇Ban imports of superior products from some of its colonies if they happened to threaten British industries.
USA
◇Alexander Hamilton argued that competition from abroad would mean that infant industries that could
soon become internationally competitive could not be started in USA, unless initial losses were provided by
the government, and these initial losses were import duties and prohibition of imports.
◇ In 1816, a new law was introduced to keep tariff level close to those of wartimes (high).
◇When America finally resorted to free trade, it still administered hidden protectionist measures such as
voluntary export measure.
Chapter 2

◇Some strategies countries adopted to promote their industrial success in Europe:
◇To develop Britain’s wool manufacturing industry, King Henry VII sent royal missions to
scout potential locations for manufacturing, he acquired workers from the Low Countries,
increased duties and temporarily banned export of raw wool.
◇The French state recruited skilled workers from Britain and promoted espionage to
procure information on new technologies. Through this, France was able to close the
technology gap with Britain leading to successful industrialization.
◇Germany pursued a range of policies to promote new industries: Tariff protection,
monopoly grants and cheap supplies from royal factories were used. Overall, the state’s
direct involvement in industrial development was key.
◇Netherlands adopted a laissez-faire regime which led to sluggish economy and shallow
industrialization. So the country introduced interventionist policies, promoting the
development of the aluminium industry and key infrastructures.
Catch-Up Strategies
Chapter 2

◇Switzerland was one of Europe’s early industrializers, thus the technological gap
meant that infant industry protection was not very necessary for Switzerland, as it would
have been costly for Switzerland to maintain.
◇In the early years of its development, Japan was not able to use trade protection and
so State involvement was crucial to infrastructural development. So the state adapted
institutions from more advanced countries that were regarded as necessary for
industrial development.
◇Belgium was one of the most industrialized parts of central Europe but they had to
adopt tariff protectionism because of the country’s small size and political weakness.
◇Sweden established strong tariff laws, similar to Britain’s, to protect the agricultural
and industrial sectors. This strategy contributed to Sweden’s successful industrial
upgrading.
Catch-Up Strategies Cont.
Chapter 2

The Pulling-Ahead Strategy by the Leader and
the Responses of the catching-up Countries –
Britain and its followers.
◇Policies intended to prevent the development of manufacturing in the colonies
◇Attempts to impede the development of manufacturing in semi-independent
countries (less developed countries).
◇Use of alternative methods against Competitor nations.
Chapter 2

Institutions and Economic Development:
“Good Governance in Historical
Perspective”
SECTIONS
How the institutions advanced in the
NDC’s when they were now
developing
Economic developments
preconditioned by the ‘good
institutions’ were attained by the
NDC’s in the past compare with
developing countries at comparable
levels of development
Chapter 3

APPROACHES
◇To understand what institutions will be good and will work for the developing country by
transplanting them and analyzing how they fare
◇To wait for a “spontaneous institutional evolution” – letting the institutions evolve naturally like it
happened to the NDCs
◇Learn from History – looking at institutional development from
historical perspectives to obtain lessons
ANALYSIS ON EACH “INDENSPENSIBLE” INSTITUTION
DEMOCRACY
Voting – Universal Suffrage -- Decades
France males above 30 (0.3%), USA Black
males were not allowed to vote, In Spain
there was a war when universal suffrage
was introduced
Racial and Gender Restrictions
Secret Balloting and Vote Buying
BUREAUCRACY
Nepotism
Spoils System – Government gives civil
service jobs to supporters after election win
Sale of Public enterprises to Private
companies
France and Germany--about 23 percent among
the high-ranking bureaucrats had fathers who
served as elite administrators

JUDICIARY
Political Influence in Judiciary--USA an
UK the boundary between their judiciary
and legislature were blur
‘class justice’ --military and middle-class
rimes were hardly brought to court and less
severely punished
PROPERTY RIGHTS REGIMES
Weak Patent Rights systems – UK, France
and Germany lacked “disclosure
requirements” incurred very high costs in
filing and processing patent applications and
were provided inadequate protections to the
patentees”
Chapter 3

The History of Institutional Development in The Developed
Countries.
Corporate Governance
- Limited Liability
- Bankruptcy Law
- Competition Law
Financial Institutions
- Central Banking
- Securities Regulation
Social welfare institution
Chapter 3

INSTITUTIONS REGULATING CHILD LABOUR AND ADULT WORKING
CONDITIONSCHILD LABOUR
 Heated debate on child labour since early days of industrialization
 Proposals by NDCs for developing countries to stop child labour through imposing trade sanctions
 Wide spread concern that the developing countries cannot afford these institutional demands
Attempts taken to regulate child labour
• First serious attempt -1833 Factory Act that only involved cotton, wool, flax and silk industries
The act banned the employment of children under 9 and restricted the number of working hours for children
NB- In the1870S no cosmetic legislation existed on child labour
• 20th Century – reasonably serious child labour regulations prevailed in the NDCs
• WW1 – nearly every state had introduced laws banning the employment of children and limiting the number of working hours for children
ADULT WORKING CONDITIONS
 Don’t attract much attention as those regulating child labour
 Substantive issues involved in their implementation are essentially the same as those regulating child labour
Characteristics of Adult Working Conditions
• Working hours exceeded 12hours, Immigrants 16hours
• Factory Act banned women to work at night
• The exploitation of various legal loopholes by employers and the poor enforcement of safety laws
• Legislation for special industries such as railways and mining companies
Chapter 4

 The process of institutional development in the NDCs has been slow and uneven with frequent reversals in the process
 Contemporary developing countries actually have much higher levels of institutional development than the NDCs had at comparable stages of
development
Characteristics of early industrialization(18th century)
 Presence of nepotism , spoils and sinecures in bureaucratic offices
 Limited liability was not a generalized institution
 Highly deficient bankruptcy laws-Banks were still a novelty
 No social welfare institutions or labour regulations
 Highly inadequate security market regulations
Industrialization(1875)
 Most things remained the same as in the early industrial stage
Characteristics of the industrial maturity(1913-Onwards)
 Institution of professional bureaucratic systems
 Development of democracy
 Institution of labour regulation
A BIRD’S EYE VIEW OF THE HISTORICAL DEVELOPMENT OF THE
NDCs
Chapter 4

LESSONS FOR THE PRESENT
◇A consistent pattern emerges in which all the catching up economies use activist
industrial, trade and technology(ITT) policies.
◇The counter argument against activist industrial, trade and technology(ITT) Policies being
based on the fact that times have changed
◇Effects of the Neo-liberal Reforms: reform not being able to achieve economic
◇growth
◇1. Rethinking institutional Development
◇Deciding exactly which variety of which institution is necessary for every type of country.
◇Good institutions promote growth only when they are combined with good policies.
Chapter 4

IMPLICATIONS FOR
CONTEMPORARY LEADERS
◇No one best practice is good for the development of
countries.
◇Institutional development when done in a more realistic
way can play a positive role in the development process.
◇Learning from history.
◇Leaders must be well vexed in issues relating to economic
development( backed by Adei’s four dimensions of nation
building)
◇Leaders must focus on developing locally first before
thinking internationally.
◇Leaders should be innovative and also try out new
Chapter 4

Main message of Chang’s Ideas
The developed
countries did not get
where they are now
through the policies and
the institutions that they
recommend to
developing countries
today
Rich countries have ‘kicked away
the ladder’ by forcing free-
market, free-trade policies on
poor countries. Already
established countries do not
want more competitors emerging
through the nationalistic policies
they themselves successfully
used in the past

What matters for economic
development is not simply the
protection of all existing property
rights regardless of their nature, but
which property rights are protected
under which condition
The best way to boost the economy
is to redistribute wealth downward,
as poorer people tend to spend a
higher proportion of their income.

Contribution to Good Society
◇Use of Tariff Protection and subsidies to develop
industries and not free market and free trade
◇Redistribution wealth downwards – Solve rich getting
richer and poor getting poorer
◇More of Equality and Efficiency

Positive Critique
◇The NDCs did not use these policies and institutions they
recommend to the developing countries
◇The policies don’t work for every developing countries

Negative critique of Kicking Away the Ladder
◇Chang uses sample selection bias: a questionable scientific and historical method.
◇Chang credits only infant industry promotion for America’s economic success.
◇Chang disregards the role that colonialism and imperialism played.
◇Chang overstates the degree to which developing countries today are prevented from pursuing
interventionist trade and industrial policies.
◇The book is a scathing attack on Alexander Hamilton’s economic ideologies.
◇The book falls short of persuading and acknowledging other historical sources
◇“Correlation therefore attribution” approach not explained and backed with proper evidence.

How our minds have changed
towards leadership

Conclusion
The book raises fascinating question and succeeds in
being provocative but it ultimately fails to be convincing.
If Chang had focused in-depth analysis on one
particular question e.g. the degree to which protectionist
policies account for the success of today’s developed
countries and came to terms with the work of economic
historians more directly, he might have made more of a
contribution

GROUP 1
THE MYSTERY OF
CAPITAL
KENNEDY YAW MINTAH MAAME EFUA DADZIE
ETONAM YAW DOTSE PAULINE OWINO
MAAME AKUA WUSU-ANSAH TAMAKLOE CLAUDE-NOEL

ABOUT THE
AUTHOR◇Hernando De Soto Polar
◇Born 2nd June 1941
◇A Peruvian Economist
◇His father sought exile in Switzerland, after military coup in Peru.
◇Completed his undergraduate at International School of Geneva and Post graduate at the Graduate
Institute of International Studies
◇Worked as a Peruvian diplomat in Lima, New York and Geneva.
◇Received a Milton Friedman Prize for Advancing Liberty in 2004.
◇Other books written include Realizing Property Rights and The Other Path: The Economic Answer

Main Message
◇De Soto argues that even if countries liberalize and open their economies
to foreign investment, they will not succeed in bringing prosperity to ordinary
people until they have established a formal system of property rights.
◇Key Concepts in Book
￭Dead Capital
￭Extralegal activities
￭Bell Jar

Mystery of Missing
Information
￭The possessions of developing and former
communists nations are not represented in a
way to produce additional value (dead
Capital)
￭Why Extralegal activities?
￮It is hard to get and maintain legal title or right
.

◇The reason capitalism works in the west and nowhere else is
because only western countries have the tool needed to create capital.
◇What is capital?
￭Capital is the potential in an item has to produce surplus value
◇He identified six effects of a formal property right system
◇1. Fixing the Economic Potential of Assets 2. Integrating Dispersed
Information into One System 3. Making People Accountable 4. Making
Assets Fungible 5. Networking People 6. Protecting Transactions
Mystery of Capital

◇Political awareness as a mystery why capitalism succeeds in the west
◇Migration, the development of extra-legals and the legalization of their activities.
◇Blind spots as main problem of non-westernized nations.
◇Blind Spot I :- This talks about how governments fail to recognize the flow of extra-
legal activity that has created a new class of entrepreneurs with their own legal laws
◇Blind spot II :- This touches on the inability of governments of developing countries
to learn from experiences of countries who have already passed through this stage.
Mystery of Political Awareness

◇The author views the US from a different angle and strives to show what people do
not see.
◇He researched on the history of how the property rights were established and
discusses the process and noted that it was formed over centuries hence it is
practically unknown.
-This boosted the system of property rights and improved the US.
-Formal system of property rights brings prosperity to ordinary people.
-The author repeatedly argues that capitalism in countries outside the West is a
failure.
Mystery of Legal
Failure

Contribution towards
the Good Society
◇Mystery Of Capital touched on all the four coordinates of a good society.
◇However, De Soto was strong on efficiency and equality but weak on
community and liberty.
◇For efficiency he believed in capitalism.
◇For equality, he believed that, the bell jar should be opened to consider
the poor.
◇For community, he believed in the peaceful co-existence between people.
◇For liberty, he believed that, if people have the right to their property, they
would have the freedom to do anything legal with it.

CRITIQUES
◇He acknowledges availability of wealth in developing countries and
suggests ways of improving it
◇He is not for redistributing capital but rather encouraging development of
capital
◇He acknowledged the fact that extralegal rights were best suited for the
Western countries and could not be developed in the former communist
nations.
◇He emphasized property formalisation as the only reason behind
economic growth of western countries.
◇Poverty is not homogeneous, therefore a single solution can't work

Implication for
contemporary
leaders
◇It informs contemporary leaders of developing countries
about the importance of opening the formal property system
to the poor.
◇It informs contemporary leaders about the situation and
potential of the poor need to be better documented
◇It informs contemporary leaders that all people in the
society are capable of saving.

How it informs group
members’ leadership
thinking and
development.
◇The importance of focusing on improving the condition of
the poor.
◇Brings about the importance of falling back on historical
leadership decisions to inform present leadership decisions.
◇We should not look far and wide in the generation and
addition of value to capital.
◇Society should focus on patronizing locally made goods.

Presented by:
Okoh-Asirifi Elvis
Hubert Akita
Gloria Sekyere
Genesis Nchopereu
Joshua Kasirye
Stephan Ofosuhene

About the authorMilton Friedman was born on 31st July 1912 in Brooklyn, NY
He graduated from Rahway high school in 1928 and awarded a competitive scholarship to
Rutgers university and graduated in 1932He financed the rest of his college by working as a
waiter and a clerk in a retail store
Friedman initially specialized in mathematics intending to become an actuary but later gained
interest in economics. He continued his economics studies at university of Chicago in 1933, and
his PhD in Columbia university in 1946

About the authorHe became an adviser to US president Ronald Regan and British prime minister Margaret
Thatcher
Milton once stated that his proudest accomplishment was his role in eliminating the US
conscription. He published this book, Capitalism and Freedom in 1962 in which he advocated
many policies such as volunteer military, floating exchange rates, abolition of negative income
taxes and school vouchers, which led him to found the Friedman foundation for Educational
Choice, later renamed EdChoice.
Died on 16th November 2006 in San Francisco, California

Main message of the author
Economic freedom promotes political freedom and Capitalism is a necessary condition for
political freedom, but it is not a sufficient condition.
The roles of the government in a free society include defense, administrative rules or legal
structures (the majority rule), enforcement of law and order
The government’s interference in private free enterprises must be reduced rather than increased
The problem facing the international monetary arrangement is the difference in the national
currencies and conversion rates

Main message cont’d
Licensure should be eliminated as a requirement for the practice of medicine
A major problem of interpreting the distribution of income is determining whether it has long
run or short run differences in income
Measures government can use to alter the distribution of income include graduated taxes
income redistribution has fostered welfare programs with unintended outcomes
To alleviate poverty, government’s support to the poor must be in cash

Main message cont’dGovernment should alter the tax levels in order to address swings in the economy instead of
adjusting its spending because it is not sustainable and does not always yield the expected results
Government should subsidize education for individuals instead of institutions in order to
promote competition which will lead to an increase in the quality of education.
Capitalism reduces discrimination because it is more expensive to discriminate in a free
enterprise economy
Monopoly is undesirable in a capitalist economy and must be stopped by the government
Social responsibilities of businesses “inappropriate use of corporate funds” and that the fact that
businesses pay taxes is enough.

contribution towards the “good society”
debate
Created awareness on the importance of quality basic education
He proposes more sustainable fiscal policies to help build the good society
The book points out various flaws in the society and provides various solutions to these flaws
The book brings to light the need for the government to take care of the poor (take necessary
steps to alleviate or reduce poverty)
He advocates for freedom and liberty of people in the society

critique
the ideas he suggests are quite radical and he does not emphasize how they can be moved from
ideas to reality
The free market gives people the power to inflate prices and exploit consumers
He suggests that to alleviate poverty, support for the poor should be in the form of cash so that
they will have the chance to choose whatever they want for themselves
He argues that social security is unfair and inefficient but he does not give any suggestions to
improve on it.
He argues against licensure even though it helps bring out the best people for the job
He argues that corporate social responsibility is an inappropriate use of funds, even though it
serves as a corporation’s way of paying for some of its negative externalities and a way to help the
society in which they operate

Implications for contemporary
leaders
Leaders should put some humanity into efficiency as okun suggests
Leaders should preach and encourage unity and togetherness among followers – the color of a
man's skin or the religion of his parents is, by itself, no reason to treat him differently ; a man
should be judged by what he is and what he does and not by these external
characteristics
Leaders should think about the welfare of their followers (care) as suggested by adei
Leaders should plan for unintended consequences of their decisions

leadership thinking and development
We should not accept the system just as it is, we should always find better ways of doing things
We should empower people to lead themselves out of poverty rather than spoon-feed them
Power should not be concentrated in one area
We should encourage cultural inclusion and avoid racism and discrimination
We should show care and empathy towards followers

Video to summarize the main points of the book

SILENT
SPRING
GROUP 5
Benjamin Jnr. Asare Henrika
Amoafo
Kwasi Korboe Christine
Buckle
Fauziya Mudasir Delasie

Born in May 1907 and died in April 1964 as a result of breast cancer
Her mother bequeathed to her a life-long love of nature
Attended Pennsylvania College for Women in 1925-1929
Won scholarship to Woods Hole Marine Biological Laboratory and
obtained her MA in Marine Biology, and received her MA in zoology
from Johns Hopkins University in 1929-1932.
Carson became a marine biologist later
She began a fifteen-year career in the federal service as a scientist
and editor in 1936 and rose to become Editor-in-Chief of all
publications for the U. S. Fish and Wildlife Service.
She wrote pamphlets on conservation and natural resources and
edited scientific articles
Biography

She is the author of Under the Sea-Wind, The Sea Around Us, and The Edge
of the Sea
The publication of these books made Carson famous as a naturalist and
science writer
She resigned from U. S. Fish and Wildlife Service and devoted herself and time
to writing
She wrote several other articles designed to teach people about the wonder
and beauty of the living world, including "Help Your Child to Wonder," (1956)
and "Our Ever-Changing Shore”(1957)
She was disturbed by the excessive use of synthetic chemicals in controlling
Biography

Rachel’s
MessageThough the book Silent spring isn’t a novel, it has a plot. The main theme in this
book is written along the lines of an initial state of harmony and productivity.
It shows the drastic and profound fall in the wellbeing of the environment as well
as that of humans.
In the first three chapters she talks of the ideal world we all want to live in with
birds singing and healthy crops and livestock which quickly vanishes into the grim
reality of the poor state of our present world.
She embarks on an awareness campaign in her book to bring to light the harm
were are causing our environment with the use of poisonous chemicals in our
daily lives as individuals and by the government as a whole.

Rachel’s
Message
She advocates for the ban on DDT and other chemicals.
In her book she uses two rhetorical stand points to make her point.
She first tugs on the reader’s sense of right or wrong then moves on to make
logical argument about how our actions over time have great effects on us.
She tries to paint a picture of a spring when there is no sound of birds singing
due to the poor state of our environment.

Summary
Discusses the environment as a whole and how insecticides affects the various
aspects of the environment
The question of why we must consider “natural beauty” to be weeds—talks about
how weeds are cleared from highways to be used for utility lines and other projects
The killing of other animals—the case of sage bush(affected the prong-horn
antelope and the sheep)
How weed killers destroy some plants—the case of rag weed

Summary
Talks about the ineffectiveness of massive spraying operations
Killing of non-targeted birds and animals through some actions
Little funding for natural control of insects
The Japanese beetle case

Summary
Carson speaks about how poisoning has now overtaken the personal frontier
with people using dangerous chemicals in their gardening and use of
insecticides in the home
She then goes on to say how humans need to be on the look out for a
cumulative effect of multiple exposures over years.
Carson talks about the medical research that links pesticides/insecticides to
death and diseases in humans
Carson then talks about man’s destruction of the natural balance of the
environment, giving examples of animals becoming resistant to the pesticides
and the use of alternate methods such as male insect sterilization

Summary
Insect control programs are threatening to the balance of nature
New development of immunity of insects to chemicals as
another argument against pesticides
People underestimated the power of nature to adapt to these
chemicals and therefore waged a war with chemicals
The ignorance and neglect of nature by humans can cause
dangers to humans whether they see it or not

Importance of Work &
Contribution to A Good Society
Her work started environmental awareness in the west through
the creation of the EPA.
Brought awareness of global warming before it became a “big”
issue and the effects of pesticides.
Her book led to the ban on DDT usage by showing it was
cancer-causing.
Development and implementation of chemicals that reduce
environmental and human hazards

Critique
She appealed
to both the
moral and
logical sides of
people
1
She focused
more on
putting
humanity into
efficiency
2
She lacked
objectivity after
some point due
to most of her
information
coming from
friends
3
She heavily
relied on
alarmism in
making her
claims
4

Implication for
Contemporary
LeadershipLeaders should work on sustainability of the environment and
the long lasting effects of their policies.
Adei - focus on wellbeing and democracy
Tolerance to opposing opinions

Leadership Thinking &
Development
Ethics/consideration for the people over monetary gain
Leaders should be receptive to the voices of the people and implement things to
better their issues
Leaders need to focus equally as much on the environment as they do with
economics

Small is beautiful
Economics as if people mattered. By E.F Schumacher
BENJAMIN ANNAN
ENAM NANEMEH
FREDERICK PETER PLANGE
KWAME BOAHENE
MALIHA ABDULIA
NANIS KANANA
BENJAMIN BANOR

About the Author
◇Ernest Friedrich Schumacher was born on the 19th of August 1911, in
Germany.
◇Studied at New College, Oxford and later at Columbia University,
earning a diploma in economics
◇After the Second World War, Schumacher worked as an economic
advisor to the British Control Commission
◇Between 1950 and 1970, he operated as the Chief Economic Adviser
to the National Coal Board
◇In Burma, he developed a set of principals known as Buddhist
economics – a spiritual approach to economics which seeks to minimize
suffering for all people.
◇In 1973, he saw the publication of his book, Small is beautiful: a study
of economics as if people mattered

Main Message
Buddhist economics
◇He advocates for maximum satisfaction from minimum consumption and that mass
production should not be our focus.
◇Production of local resources for local needs is the most rational way of economical
progress
◇He argued that modern economic policies had created rampant inefficiency, environmental
degradation and dehumanizing labor conditions
◇The Buddhists care about every aspect of production, but with the western economics all
they care about is end product

Continuation
of Main
Message
A question of size
◇Excessive materialism and meaningless
growth is an obstacle to human
development. Thus smaller sized
appropriate technologies and societies will
be beneficial to both humans and the
environment.
◇Advancements in technology in
transportation and communication caused
mass movement
◇His core philosophy is “enoughness”,
appreciating both human needs,
limitations and appropriate use of
technology
◇Faults conventional economic thinking
of “bigger is better”

economics and Modern economics
Modern Buddhist
Interested in goods and creation of
wealth. Economic thinking is based
on greed as manifested in the efforts
of business to maximize profits.
Interested in liberation.
It doesn’t oppose wealth, what it
opposes is attachment to wealth, not the
enjoyment of the things but the craving
for them
Think that annual consumption is the
measurement, more is better than
enough.
Consumption is merely one measure of
well-being.
Try to maximize human satisfaction
by the optimal pattern of
consumption.
Maximize consumption by the optimal
pattern of productive effort.

Contribution towards a good society
◇Community
oLocal industrialization; local resources should be used for local needs
oEnvironment preservation and human sustainability; planting trees helps to ensure we are safe in
the environment which allows the community to progress
◇Equality
￭Not for equality
◇Liberty
oEnjoyment of work and leisure by ensuring that work involves less toil but more time for artistic
expression
◇Efficiency
oMaximum satisfaction from minimum consumption of resources

Critique◇Schumacher implies that imports and exports should be kept to the barest minimum forgetting the idea
of comparative advantage
◇Reliance on human labor as Schumacher suggests would become difficult as population growth occurs
◇Schumacher forgets that technological advancement could help in conserving non-renewable
resources
◇He claims that mothers with outside jobs is considered a serious sign of economic failure
◇Technological advancement in transportation wouldn’t only lead to humans being footloose, but goods
and services too
◇Schumacher’s ideologies seem to be the cry of a romantic idealist

Implications for Contemporary
leaders
◇Leaders need to implement policies that are not solely centered on
industrial growth but include the satisfaction of individuals in the economy in
mind.
◇Leaders should focus on maximizing satisfaction from minimum
consumption
◇Leaders should strive to avoid depending on imports. Develop economy
so it can be self-reliant with regard to most resources.
◇Production from local resources for local needs is the he most
rational way of economic life
◇Leaders should implement policies on how resources should be
extracted

members’ leadership
thinking and
development
◇A happy people make for a thriving economy. Thus empathy is a vital quality needed by
leaders.
◇Leaders should employ policies to encourage and facilitate the usage of local resources to
solve local needs
◇There should be a fine balance between technological advancement and human labor to
bring satisfaction
◇He challenges our current perception about work and organization of work to give it a
human face
◇Leaders should consider the type of economy present in their country before adopting
certain economic systems

EQUALITY AND EFFICIENCY:
THE BIG TRADEOFF by Arthur
M. Okun
GROUP 3
AMY KPENTEY
WAYNE GAKUO
HADDIJATOU TOURAY
CYNTHIA MUHONJA
DORCAS NAKACHWA
EKAB-OSOWO TAWO
ADWOA AMOABA WILSON

BACKGROUND
◇Born November 28, 1928.
◇An American economist
◇Chairman of the Council of Economic Advisers (1968 – 1969)
◇Economic advisor under Kennedy and Johnson (White House)
◇Professor at Yale University
◇Fellow at the Brookings Institute
◇Particularly known for propagating Okun’s Law, which states that
for every 1% increase in the unemployment rate, a country’s GDP
will be roughly an additional 2% lower than its potential GDP.

RIGHTS
◇RIGHTS AND DOLLARS
•Equal justice and equal political rights.
•“Find a job or go hungry”, “succeed or suffer”
•Double standard of a capitalist democracy
•Monitoring of a society that is both capitalist and democratic
◇THE DOMAIN OF RIGHTS
•Features of rights
•Negative side of rights
•The three routes for the justification of rights: libertarian, pluralistic and
humanistic.

THE REASON FOR RIGHTS
◇LIBERTY
•Limited government intervention.
•Rights are conferred on people against the state.
◇PLURALISM
•The market needs to be kept in its place.
•Rights are checks on market domination.
◇HUMANISM
•Human dignity of all citizens.
•Reference to John Rawls (justice as fairness)
•John Rawls advocates for equality

THE SCOPE OF
RIGHTS & THE
FUZZY RIGHT TO
SURVIVAL
◇How does the society draw a boundary between rights and the market?
◇Rights lack an economic price tag.
◇The emancipation proclamation – took human beings out of the market
scope.
◇Rights are paid through taxation.
◇Every person regardless of their merit should have access to medicine and
food in the face of illness or malnutrition.
◇Statute books do not state explicitly the rights to survival
◇The fulfilment of survival rights is expensive.

THE DISTRIBUTION OF
ECONOMIC WELFARE
◇Income and wealth determine a person’s
economic standing.
◇Income is more important
◇The accumulation of wealth
◇The difference in saving patterns among the
different parts of the income pyramid.

EQUALITY OF OPPORTUNITY
◇The notion of fair race
◇The line of unequal opportunity: Inheritance of natural ability and advantages of
family position.
◇Clear cases of unequal opportunity occur outside family relationships- Racism
and discrimination in offices as well as favoritism.
◇Conservatives- No need for a fight to equalized society as it is okay the way it is.
◇Radicals- No amount of equality measure taken can cure the wounds of
inequality as the system is rotten.
◇Okun’s point of view- Involves the fact that much of the inequality in wealth and
income reflects the inequality in opportunities and hopes certain policies can
change this. Such efforts deserve a real try he says.
◇Okun believes that the greater equality of opportunities would produce an
equality of income.
◇Equality of opportunity as a value.
◇Trade-off between equality of opportunity and equality of income.

THE AREA OF
COMPROMISE
◇Okun believed that if equality and efficiency conflict in a
society, one has to be sacrificed for the other. And any sacrifice
of either has to be a means of obtaining more of the other.
◇Equality and efficiency have to be balanced. He agreed with
John Stuart Mill that economic misery and deprivation should be
eliminated in a democratic capitalism society.

THE LEAKY
BUCKET
EXPERIMENT
◇A $28000+ income-earning family levied a tax of $4000 & a $1000 grant is given
to a $7000 income-earning family through Tax-and-Transfer Equalization Act in the
name of equality.
◇However, the grant is transported using a leaky bucket and while on transit
some money is lost. The low-income families don’t get the full $1000 while the rich
have given up all the $4000.
◇Compares to those who would opt for the switch as long as something remains
in the bucket, with those who will not support the switch because whatever leaks
out is the “water needed to irrigate the next crop”.
◇Okun opposes Rawl’s view of “Give priority to equality” for it represents those
who don’t know what their future holds as per their income. He also disagrees with
Friedman’s view of “Give priority to efficiency” for he believes the switch is only
efficient when the leakage is about 10%.
◇He emphasizes on the need to come up with other alternative prescriptions
whose aim is to reduce the disparity between the rich and poor (move from fair
jobs to good jobs).

WHAT CAN
CONTEMPORARY
LEADERS
LEARN??◇Leaders can learn the role of markets and fairness.
◇Leaders can learn to bridge the gap between
equality and efficiency for instance, increasing access
to higher education.
◇You have to choose between equality and efficiency,
you cant have both.
◇Understanding the economy and striking a balance.

OKUN’S
CONTRIBUTION TO
THE GOOD
SOCIETY
◇Liberty
There should be limited government intervention.
◇Equality
He was indifferent.
◇Efficiency
He wanted a balance between equality and efficiency
◇Community
He wanted policies to reduce disparity between the rich and the
poor.

CRITIQUE
◇He was right, income distributive policies have major effects on the
economy.
◇His suggestions might not apply to the current economy since it has
changed.
◇I agree with Okun that in society, equality and efficiency cannot be
achieved altogether. They are a great trade off and I believe trying to achieve
both at the same time, will always result into losing more of the other.
◇To me, Okun’s argument was too vague. No figures were attach to make
things a bit clearer. He was just making his argument without putting in
conclusion or guidance on to how his points can be implemented in society.
◇In short, he didn’t give a clear conclusion. How much of equality and
efficiency is needed in order to achieve a good society? Is the question I
can’t find answer to from Okun’s book.

CONCLUSION
◇Okun concluded that the bottom fifth should be assisted by giving them the content
of the Leaky bucket and should be granted greater equality of opportunities.
◇Capitalism and Democracy need each other in order to put some rationality into
equality and some humanity into efficiency.
◇There should be a balance every society should strive for a balance between
equality and efficiency.

GROUP 2
Verissa Owusu
Zaneta Asare
Emma Forson
Selassie Suka
Felix Oyoo
Samuel Bunyan
Thomas Cramer Sam

Karl Marx
◇Karl Heinrich Marx was born in Trier, Prussia on May 5, 1818.
◇He witnessed the exploitation and misery of the working class people, and
was inspired to fight for social justice.
◇After graduating with a doctorate in philosophy from the University of
Berlin in 1841, Karl went to Cologne and worked as an editor for the liberal
democratic newspaper Rheinische Zeitung.

Friedrich Engels
◇Friedrich Engels was born on 28 November 1820 in Barmen, Prussia.
◇As a young man, his father sent him to England to help manage his
cotton-factory in Manchester, but Engels was shocked by the poverty in this
city.
◇In 1845 Engels met Marx and the two men became close friends.

Features of The
Communist Manifesto
◇Bourgeoisie and Proletarians
◇Proletarians and Communists
◇Socialist and Communist Literature
◇Position of the Communist in relation to the
various existing opposition parties
◇Principles of the communist

Importance of The
Communist Manifesto
◇It provides an analysis of the limitations of capitalism and class struggle,
and it presents the main principles of communist ideology in detail.
◇It explains that each class of people in the society will work towards the
destruction of classes that are inferior to them, and in it is suggested that all
classes and governments should be abolished.
◇It has influenced many politicians and scholars around the world, and has
inspired revolutions that have resulted in the formation of communist states.

◇Marx first introduces the idea that economic concerns of a nation drive history,
and that the struggle between the rich bourgeoisie and the hard working
proletariat would eventually lead to Communism.
◇Marx sites positives that were done by the proletariat, but he certainly seemed
more reflective on the negatives committed by the bourgeois.
◇Marx states that the bourgeoisie "has agglomerated population, centralized
means of production, and has concentrated property in a few hands.“
◇He then describes the proletarians, or the labor class, and how they were
formed, how they have suffered, and how they must overcome their struggles.

…
◇Formation of the proletariat into a class to limit bourgeoisie
power
◇In the process, the proletariat are going to limit power of any
single group. As a result, they would not have power themselves
but power will be shared amongst all groups
◇Examples of the ways it is going to be accomplished is by the
abolition of property in land and application of all rents of land to
public purposes, centralisation of the means of communication
and transport in the hands of the state, free education for all
children in public schools, among others

…
◇The communists were chiefly focussed on
Germany because the proletariat at that time and
place were more educated/ civilised than those of
the 17th and 18th centuries. They believed that this
revolution would be carried out under more
advanced conditions.
◇They supported every revolutionary movement
against the existing social and political system.
◇The communists laboured everywhere to bring
together the democratic parties of all countries.

…
◇The book also talks about a Paris Commune which was a government led by the
working-class people in France to go against the bad leadership of the ruling class.
The Commune was to serve as a lever for uprooting class rule, with labor
emancipated, every man becomes a working man and productive labor ceases to be
a class attribute and abolish the class property which makes the labor of many the
wealth of the few.
◇Basically, the book focuses on the critical struggles of the 19th century proletariat,
stressing on the uniqueness of their situation and measures to come out of it

CRITIQUE
◇Marx didn’t lay out a clear plan as to how they would get into power. He just gave
information on what they would do when they got into power
◇Marx assumes that all bourgeoisies are evil and they have no form of personal
relationship with proletarians , which might not always be the case.
◇Marx does not justify why the revolution need be violent
◇He also exaggerates the treatment of the proletarians, by comparing them to
slaves
◇Marx work has inspired the creation of trade unions that stand in solidarity to
support the workers’ social security welfare.
◇The Communist Manifesto focused more on the political aspect and failed to
regard the economic state of the nation

Contribution to the debate of a
“good society”
◇Makes current bourgeoisie aware of the wails of the proletarians and therefore
they try to make the lives of the proletarians better. As they do so, the
proletarians are able to acquire property of their own and hence are able to
increase their standard of living
◇Marx advocates for the equal distribution of resources and that’s what a good
society is all about
◇A good society is characterized by democracy
◇O’Toole describes a good society as where these factors; liberty, equality,
efficiency and communication meet and Marx talks a bit about how these factors
would be met. E.g. free education for all children, centralization of means of
communication and transport in the hands of the state, equal liability of all to
work, etc.

Implications for
contemporary leaders
◇Marx has influenced leaders of social institutions to provide scholarships and
other opportunities for less-privileged people in order for them to be on the
same level as everyone else
◇Leaders put in place rules that ensure democracy and which also brings a
form of equality among people in a country, e.g. elections
◇The government leaders have formulated tax payment policy such as
progressive tax , where there higher income earners /wealthy pay more tax to
foster distribution of resources

How it informs our leadership
thinking and development
◇It hammers on the need for ethics but corrupt leaders make that impossible for
some.
◇We see the importance of focusing more on improving the conditions of people
rather than trying to immediately abolish existing classes.
◇The strength of empathy and vision portrayed in the manifesto shows us that
leaders must possess these qualities to truly unite the people .
◇African leaders need a higher sense of urgency for development.

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