By Paul Streeten (auth.)
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Aluations must be 'given' from outside, although in fact they may result from empirical appraisals. 4 Analysis and prognosis may harbour ideologies. They may be formulated in a manner that does not bring out the facts, but that rather attempts to reconcile conflicts in beliefs and valuations. Awareness of his own valuations, and of the limitations of his conclusions, are among the theorist's safeguards against falling into the ideological trap. 5 Although analysis and prognosis must take the actual or possible beliefs and valuations of people as data, by analysing them and bringing them into the open, they tend to change them.
An indifference map between utility and justice may be said to reflect these preferences. One of the merits of this analysis is that it removes the ambiguities, implicit in the compensation principle, of the notion of "equally good distribution", when real income has increased, but nothing is known about 44 Development Perspectives the valuation of the distribution of the increment. If the (sufficient) condition for an improvement were that no one should be worse off and some should be better off, we might get a situation as illustrated in Fig.
This defence of the compensation principle depends upon a formidable list of unrealistic assumptions. 20 But even if those assumptions were granted, there is a flaw in it. It is illegitimate to assume that the D and the U curves are independent of each other. Distributional value judgements depend on the amount available for distribution, and satisfactions derived from a collection of goods depend on the desires generated by a particular distribution. Thus equality may be considered imperative in siege conditions, or in a lifeboat, but may be a matter of indifference or even undesirable if there is abundance.
Development Perspectives by Paul Streeten (auth.)