Agencies of Development Flashcards
What are the Agencies of Development?
States IGOs NGOs TNCs
Define STATES as an agency of development
Governments AND other institutions like the military, police, judicial/legal system, civil service
What is the NEOLIBERAL view of states as an agency of development?
- Favour a small state & limited economic interference-free market capitalism
- allow TNCs to be the driving force rather than states because they will make a profit
But…they do accept states have some responsibility in maintaining a stable & secure social situation (if a country can’t do this they’re ‘failed states’)
What view do DEPENDENCY THEORISTS hold of states as an agency of development? …evaluations?
- internal, state-led development is VITAL
- central state planning etc
^ Not always a good idea, state-led development led to China’s ‘great leap forward’ causing the largest famine in the world
Evaluations of the NEOLIBERAL perspective of states as an agency of development…
POSITIVE:
- has led to decent growth rates over the last 40 yrs
- rising living standards
- has lifted nations out of poverty (Since 1990, 1.2 billion have been lifted out of poverty)
NEGATIVE:
- widens inequality gap, ‘trickle down’ takes time
- severely negative effects of the environment
What view do MODERNISATION THEORISTS hold of states as an agency of development?
Like Neoliberals but less intense
- there is some role for the state in development but
Capitalism should do most the work
- evident via the ‘Asian Tigers’ where some state
interference generated wealth
What is a ‘development state’? (Leftwich, 1995)
A state which focuses on development goals and works closely with the private sector (promotes growth)
^ China is following this approach
What is a ‘predatory state’? (Evans, 1989)
A state which exploits its people for the profit of elites with the support from rich countries & the World Bank (discourages growth)
^ Mobutu’s Zaire (now DRC)
What are TNCs?
Corporations that have globalised operations, they produce & sell around the world with global supply chains and global employment.
What do some sociologists argue about the relationship between TNCs and States?
- As globalisation progresses, the power of TNCs will soon overtake that of states
- most countries today have smaller economies than large TNCs
- TNCs are quickly gaining enormous economic power
What are EPZs & why are they used?
EPZ = Export Planning Zones
^ Where TNCs can operate without restrictions
- Developing countries use them to seek investment from TNCs & hope their presence has benefits even if it initially appears as exploitation
What is the MODERNISATION THEORISTS/NEOLIBERALS view of TNCs as an agency of development?
- TNCs are essential for development
- Introduce modern/Western values which kickstart the economy
- although they have elements of exploitation the pain of Industrialisation is necessary
What is the DEPENDENCY THEORIST view of TNCs as an agency of development?
- presence of TNCs intensify dependency because it prevents local industry from growing
- ensures the country stays poor
- weaken workers & strengthens capitalism
What are the negatives of TNCs?
- The jobs created tend not to go to locals
- Profits do not remain in the developing country, they’re exported to the West
- Bio-piracy, TNCs are able to take traditional medicines, sources of food and make money from other resources as well as exploiting/ruining the environment
What are the positives of TNCs?
- Brings in investment regarding terms of money, resources & technology
- Because they need modern infrastructure, TNCs are often enough willing to pay for it
- They provide opportunities for all, western values allow women to work (perhaps on a lower wage though)
Why are TNCs able to act in unethical ways?
- Global economic influence (pressure states & IGOs)
- parent-subsidiary relationship (subsidiary companies)
- Regional economic influence (pressure governments)
- No grounded legal system to prosecute them
- No specified person or way to punish them
What are NGOs?
Non-profit organisations set up by concerned citizens who pull together for humanitarian/charitable causes. Often funded by the general public or donors.
Is the work of NGOs far-reaching?
- the aid they provide is small in comparison to government aid
- struggles to make a global difference, but has achieved national improvement
However…
- INGOs have played a vital role in disaster relief (DEC coordinates fundraising)
- Tend to respond quicker than IGOs (Medecines Sans Frontieres, Ebola outbreak))
What did Edwards and Hulme (2013) argue about the growth of INGOs?
INGOs rapid growth have caused large organisation which lose sight of their original idealism/lose touch with their roots
Also, they’re becoming closer with governments/other sources of funding
What are the positives of INGOs?
- smaller & more effective than states
- continuity (aid will not be affected by elections etc)
- not driven by profit
- able & willing to take risks
What are the negatives of INGOs?
- may rely on government funding/work too closely with them
- unclear accountability
- inappropriate spending of funds
- portrayal of people in developing countries as pity objects/victims
- faith-based
- too concerned with publicity/brand building
What is the Global Civil Society?
A loose collection of INGOs, activist groups and others who all oppose globalisation/the spread of neoliberalism across the world
^ an anti-globalisation movement
What are IGOs?
An organisation of countries that collect together to tackle/solve world problems
What programmes/agencies does the UN provide for development?
- UN Development Programme (produces the Human Development Report)
- WHO
- World Food Programme (WFP)
- Food & Agriculture Organisation (FAO)
- Office of the UN High Commissioner for Refugees (UNHCR)
What is special about the EU?
It is the world’s largest aid donor
over $50 million given bilaterally or through EU institutions
Which IGOs run the world economy?
- IMF
- World Bank
- WTO
What is the role of the IMF?
They currently behave as financial police for the countries in debt & give loans to countries willing to adopt their economic programme - SAPs
What are the criticisms of the IMF’s role in development?
- adheres strictly to neoliberal policies, despite lack of evidence of their effectiveness
- It is unconcerned with the human effects of SAPs
- It imposes the same conditions on all, regardless of the extent of development/resources
- tends to deal with short term economic problems rather than longer-term development
- It has failed to foresee economic crises
What is the role of the World Bank?
Provides loans with low-interest rates & zero interest for the poorest countries
(mostly focused on poverty eradication recently)
What are the criticisms of the World Bank?
- In the past, it has been restricted to lending for specific projects e.g dams which were often inappropriate
- It works closely with the IMF, so still associated with SAPs
What is the WTO?
World Trade Organisation:
- Aim = push neoliberal reforms in the area of trade.
- no votes are taken & decisions are reached by consensus
- decision making is, therefore, difficult and WTO talks often end without agreement
What are the criticisms of the WTO?
- Its decision making is undemocratic - in practice, poor countries are excluded from important discussions
- It’s ineffective in making rich nations reduce subsidies & tariffs
- It gives free trade priority over all other considerations, including sustainable development
