ABSTRACT
Developmental agencies share the conviction that we can improve the welfare of distant societies by intentional efforts. Offering a constructive helping hand to the disadvantaged societies involves conceptualizing development by thinking simultaneously about its two dimensions: the individual dimension and the macro-societal dimension. The social dimension of development economics is decisively established. Economist, Dani Rodrik, looks at development in the context of globalizing economic networks and growing interconnectedness among individuals and states. Such globalizing trends are having a transformative effect on social norms and expectations. The concept most closely associated with Adam Smithis the invisible hand or laissez-faire capitalism, which describes an economic system where the government's involvement in the economy is kept at minimum. According to Karl Marx, capitalism has become a stage of history when the commodification of social life has reduced every societal relation "to a mere money relation".
