Abstract
ABSTRACT This paper refutes Goran Hyden's conclusion that “economy of affection”, or various informal social and economic linkages, cannot play an important developmental role. This paper argues instead that when the state actively participates in and encourages various degrees of affective relationships, the human suffering caused by the destruction of the peasantry through the introduction of capitalism can be alleviated. As a case study, this paper assesses the development prospects of the small Himalayan kingdom of Bhutan, which was able to completely avoid foreign domination until the early-1960s due to its isolation. The paper concludes that the economy of affection can facilitate an improvement in the standard of living, while maintaining human equality and dignity, sustaining political participation, and retaining cultural integrity under specific circumstances.
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