Blakemore - Key Idea 1 Flashcards
What are the positive aspects of modernisation theory?
1) More high skilled jobs (Clark Fisher Model)
2) Better standard of living and quality of life
3) Stable, growing, efficient economy
4) Frees up a labour market with greater ‘individual choice’
What are the negative aspects of modernisation theory?
1) Cultural homogenisation (erosion of culture)
2) Individualism
3) Inequality/Division/Social Problems with dual economy (Arthur Lewis 1954)
4) Creates trade traps and dependant/unfair relationships (dependancy theory)
What are the 5 Stages of the Rostow Model?
1) Traditional Society
2) Transitional Stage
3) Take-off
4) Drive to Maturity
5) Age of High-Mass consumption
What is Neo-Colonialism?
Although colonial powers have given up direct political rule, they have continued to exert enormous influence through continued economic power. Former colonies are left with economies constructed for the benefits of their foreign rulers.
Why do colonial powers still influence their former colonies today?
1) Often influence political decisions as they have a lack of experience in democracy
2) Exploit them for resources they are dependant as a result of colonisation
What is dependency theory and who is behind the idea?
Argues that development is a smoke-screen for exploitation and highlights the conditions of unequal exchange between countries. Championed by economist Andre Frank
What do dependency theorists argue is wrong with western development models?
Western intervention has led to exploitation and inequality rather than universal growth and development.
Theorists argue that those claiming to promote ‘modernisation’ are actually secretly forcing poorer countries to supply them with resources creating ‘dependant’ relationships
What are the pro Modernisation theory arguments in Rwanda?
1) Electricity connections have more than doubled from 91,000 (2005) to 215,000 (2011)
2) GDP has risen, $750 million (1994) to $8 billion (2015)
3) Malaria deaths have fallen by 85% since 2005
4) School enrolments risen from 87% to 93%
5) HDI increased from 0.291 (1980) to 0.506 (2013)
6) Urbanisation - 4.5% annual increased (1.8% worldwide)
What are the anti Modernisation arguments in Rwanda?
1) Cultural homogenisation. Belgians scraped the religion (90% are catholic) French was introduced over traditional languages.
2) Relies heavily on AID (Dependency)
3) Exports mainly primary products (PPD)
4) Inequality - richest 10% earned 3.2 times the income of the poorest 40%
What is the Washington Consensus?
Supports the theory of neo-liberalism. It is a set of 10 economic policy ‘prescriptions’ considered to constitute the ‘standard’ reform package for crisis-wracked developing countries. Include, privatisation, tax reform and property rights.
Why did Senegal require a loan from the World Bank?
Because Senegal is one of the worlds most indebted countries and were on the verge of bankruptcy.
What did the World Bank force Senegal to do?
The World Bank encouraged Senegal to focus on the production of Groundnuts (Comparative Advantage).
Insisted on the removal of tariffs and cuts in public spending.
What problems did the World Bank cause Senegal?
The price of groundnuts fell in the country to due to the removal of tariffs. This caused profits to fall and Senegal now pay more back in debt than they do on education and health combined.
The IMF gave Mozambique a loan for their debt, but insisted on removing export taxes, was this successful?
Initially this was successful as foreign buyers and the processing factories competed to buy the raw nuts, meaning farmers prices rose.
What went wrong for Mozambique?
The price eventually forced the processing centres out of business, causing 9,000 job losses. This meant there was no longer any competition causing the market price of raw Cashew Nuts to fall.
