Modernisation and Dependency Flashcards
Post 1945 development theories
Were rooted in the tradition of economic, political and sociological theorising, which developed in Europe from the 19th Century onwards.
Adam Smith
Saw the regulation that large trading companies enforced as detrimental to economic growth of the country and greater wealth for all citizens, rather than just the merchant classes. He argued for greater attention to be paid to production, rather than trade, in economic development.
Adam Smith theory
According to his theory, countries should concentrate on producing and then selling the goods that they had an advantage in producing because of their assets.
John Maynard Keynes, 1936
Argued that the free market was not necessarily the positive force that many believed. Keynes argued that the key to growth was real investment. This investment, he claimed, would have a positive effect on job creation and the further generation of wealth, through the multiplier effect.
Keynes governments
Keynes saw role for government in promoting economic growth. He said that governments could intervene to promote investment either through monetary policies or through government expenditure.
Walt Rostow, 1960 - ‘Development’
A state were the mass of the population could afford to spend large amounts on consumer products, the economy was largely agricultural and very much urban based. Rostow used the analogy of an aeroplane taking off and then soaring into the sky.
Michael Todaro (2000)
‘structural change models’ - The basic theme was how national economies shifted from a rural, agricultural bases to an urban, manufacturing one.
W, Arthur Lewis
Used his experiences of growing up in St Lucia to examine the nature of economic development. He conceived of the economy of ‘underdeveloped economies’ being dualistic. The ‘traditional’ sector consisted largely of subsistence agriculture The ‘modern’ sector was made up of commercial agriculture, plantations manufacturing and mining.
Lewis, 1995
Governments should encourage foreign countries to invest their capital into domestic industrial development through ‘industrialization by invitation’
Albert Hirschman (1958)
Spatially-unbalnced growth was a desirable part of the development process. He argued that rather than his attempt to achieve equal rates of growth throughout a country, it makes sense to allow economic development to be spatially concentrated.
Hirschman, 58 - growth poles
Would act as foci for economic development, but over time, the benefits of such processes would spread and the degree of polarization would reduce.
Myrdal (1957)
Did not believe that spatial polarization would automatically be reversed once economic development reached a certain level. He argued that once a region started to grow economically, people, resources and finance would be drawn to that area so contributing to future growth. These flows would leave other areas depleted of dynamic people and resources to contribute to development - ‘backwash effect’.
Myrdal - state intervention
The only way in which the exacerbation of spatial inequalities could be reduced was through state intervention. He argued that if state planning was efficient, there was no need for the regional variations in economic growth rates.
‘Aid’ defintion
Usually refers to ‘a transfer of resources on concessional terms’. These resources are usually transferred from one government to another directly (bilateral aid), or from one government through a multilateral agency or an NGO to governments or groups in poorer countries.
