Quiz 1 Developmental Theories Flashcards
Well-enlightened explanations of a phenomenon
THEORIES
4 CLASSIC THEORIES OF DEVELOPMENT
- Modernization Theory and Neoliberalis
- Dependency Theories
- World System Theories
- Globalization
2 ASIAN THEORIES OF DEVELOPMENT
- Asian Values
- Developmental State
- Duplicating the conditions present in developed societies
MODERNIZATION THEORY
- Catalyst of modernization theory
diffusion of Science and Technology
- Underdevelopment to development (linear)
MODERNIZATION THEORY
- Colonial rule is more beneficial to the colonies
MODERNIZATION THEORY
The writer of “The White Man’s Burden”
Rudyard Kipling
Linear Theory of Development was exemplified by ______
Walt Whitman Rostow (WW Rostow)
Development is seen primarily as a matter of ECONOMIC GROWTH and secondarily as a problem of
securing social changes. ORGANIZING EFFORTS toward development is the prime concern of the government.
LINEAR GROWTH THEORY (1960)
5 STAGES OF ECONOMIC DEVELOPMENT ACCORDING TO ROSTOW’S MODEL
- Traditional Society
- Transitional Stage
- Take off
- Drive to Maturity
- High Mass Consumption
Rostow’s Stages of Econ Dev: hierarchical social structure, food producing agricultural economy,
pre-Newtonian S&T, power in religious group, strong family relations.
Stage 1 Traditional Society
Rostow’s Stages of Econ Dev: higher rate of accumulation, commercial market, risk taking entrep class, modernizing national government and higher investment in infrastructure.
Stage 2 Transitional Stage
Rostow’s Stages of Econ Dev: industrial revolution, rapid growth in certain sectors, institutionalization of the sources of capital
Stage 3 Take Off
Rostow’s Stages of Econ Dev: expansive use of modern technology, improvements in industrial skill,
expansion of urbanization, specialization of labor
Stage 4 Drive to Maturity
Rostow’s Stages of Econ Dev: abundance of consumer goods, market oligopoly, expansive military
expenditure and concern for external power
Stage 5 High Mass Consumption
According to Rostow development requires _____ ____ in capital.
substantial investment
STRENGTHS of ROSTOW’s MODEL
- We can identify the basis of the research focus.
- Analytical Framework.
- Methodology is based on general studies.
CRITIQUES of ROSTOW’s MODEL
- Development is NOT necessarily UNIDIRECTIONAL.
- The modernization perspective ONLY shows ONE possible model of development.
- Regards the need to ELIMINATE TRADITIONAL VALUE.
- Traditional and modern VLAUES are NOT necessarily MUTUALLY EXCLUSIVE (e.g. China and Japan
despite economic advances continue to operate on traditional values). - Base the ASSUMPTIONS and results on the NATION-STATE.
both a body of economic theory and a policy stance.
NEOLIBERALISM
T or F. Neoliberal theory claims that a largely UNREGULATED CAPITALIST SYSTEM (a free market economy) not only embodies the ideal of free individual choice but also achieves optimum economic performance with respect to efficiency, economic growth, technical progress, and distributional justice.
TRUE
Encourages the FREE MOVEMENT OF GOODS, SERVICES, AND MONEY between countries. but NOT PEOPLE
Neoliberalism
Neoliberalism:
_______ of public activities and assets; elimination of, or ____ in, social welfare programs; _______ of taxes on businesses and the investing class.
PRIVATIZATION; CUTBACKS; REDUCTION
- Objection to the modernization theory / linear view of development.
- 3rd world will remain poor because of 1st world countries (exploiters).
- Independence of most countries (1960-1970).
DEPENDENCY THEORIES
Who developed the dependency theory?
Raul Prebisch
FOUR MAIN POINTS OF THE THEORY OF DEPENDENCY
- To develop an important INTERNAL EFFECTIVE DEMAND in terms of domestic markets.
- To RECOGNIZE that the INDUSTRIAL SECTOR is crucial in achieving better levels of national development.
- To INCREASE WORKER’S INCOME as a means of generating more aggregate demand in national market
conditions. - To PROMOTE a more EFFECTIVE GOVERNMENT role in order to reinforce national development conditions
and increase national standards of living.
The theory of dependency combines elements from neo-marxist perspective with ______ economic
theory
Keyne’s
Poorer countries which export raw materials are losing capital from richer countries that export finished goods as these products have DIFFERENT MONETARY VALUES in the international market.
Cycle of Dependency
- When poorer countries reduce their connections to the core, they often develop faster. This is because they can focus on their own industries without interference from the core.
- Countries that were most connected to the core in the past (through colonialism or trade) are often the most underdeveloped today.
Dependency Theory
CRITIQUES OF DEPENDENCY THEORY
The basis of dependency in underdeveloped nations is derived from industrial technological
production, rather than from financial ties to monopolies from the core nations (Theotinio Dos
Santos).
Does not provide exhaustive empirical evidence to support its conclusions.
The theoretical position uses highly abstract levels of analysis.
Dependency movements consider ties with transnational corporation as being only detrimental to
countries, when actually these links can be used as means of transference of technology.
Base the assumptions and results on the nation-state.
STRENGHTS OF DEPENDENCY THEORY
New dependency studies and new
authors perceive a margin of movement of national government in terms of pursuing their own agenda
(originated in the writings of Nikos
Poulantzas).
- TOTALITY of the ECONOMIC SYSTEM of the world operated by a myriad of forces all interacting with one another.
- A DIVISION OF LABOR wherein it still rewards the rich and penalizes the poor.
WORLD SYSTEMS THEORY
WORLD SYSTEMS THEORY IS ALSO CALLED AS?
“Mutual interdependence”.
Five (5) types of Imperialism in world systems theory
(EPMiCoCu)
- Economic
- Political
- Military
- Communication
- Cultural
Types of imperialism was created by
Immanuel Wallerstein, a Marxist economist, 1974,
Parts of World Systems Theory
- Core – capital intensive
- Periphery – low skill labor, raw materials
- Semi-periphery – guarding trade routes, divide and conquer at the periphery level
GLOBALIZATION THEORY “…refers to INCREASING INTERDEPENDENCE of national economies in trade, finance and macroeconomic policy”
(Gilpin, 1987: p. 389).
GLOBALIZATION THEORY “…refers both to COMPRESSION of the WORLD and the INTENSITIFICATION of CONSCIOUSNESS of the world as a whole”
(Robertson, 1992: p. 8).
GLOBALIZATION THEORY “…DIFFUSION of PRACTICES, VALUES and TECHNOLOGY that have an influence on people’s lives worldwide”
(Albrow, 1997: p. 88).
GLOBALIZATION THEORY “…process leading to GREATER INTERDEPENDENCE and MUTUAL AWARENESS (reflexivity) among economic, political and social units of the world, and among actors in general”
(Guillen, 2001: p. 236).
Start of globalization is a _____ ______ (Held et al, 1999).
contested issue
Start of international organizations to foster ______ and _______ since 1850 (Murphy, 1994).
communication ; transportation
Who said that “social movements with transnational advocacies such as the abolition of slavery, women’s suffrage, etc. “
(Keck & Sikkink, 1998).
- POST WORLD WAR II and INDEPENDENCE OF COLONIES.
- Expansion of TRADE and INVESTMENT and the rise of
Northeast Asia (Gilpin, 1987, Kennedy, 1993,
McMichael, 1996). - Unraveling of the PAX AMERICANA in the early 1970s.
THIRD WAVE OF SCHOLARS
who pointed out that LIBERAL-CAPITALIST DEMOCRACY is the end point of history?
- Noted capitalism’s ability to reproduce itself
and outlast other alternatives.
Francis Fukuyama
Globalization almost synonymous to the DIFFUSION of ____ ______.
WESTERN VALUES
National economies are increasingly ______ .
Roadblocks to trade such as _____ have been decreasing worldwide.
interconnected ; tariffs
advocates of Asian values
Prime Ministers of Malaysia and Singapore:
Mahathir bin Mohamad and Lee Kuan Yew
A set of values is shared by people of many different nationalities and ethnicities living in East Asia. (‘Asian values’ are today usually associated solely with East and Southeast Asia).
ASIAN THEORIES OF DEVELOPMENT: ASIAN VALUES AND
DEVELOPMENTAL STATE THEORY
These values include:
- a STRESS on the ______ rather than the individual
- the privileging of _____ and _____ over personal freedom
community ; order and harmony
6 “ASIAN VALUES” ARGUMENT
- Refusal to compartmentalize RELIGION away from other spheres of life
- A belief that government and business need NOT ENEMIES
- A particular emphasis on saving and THRIFTINESS
- Insistence on HARD WORK
- Respect for POLITICAL LEADERSHIP
- Emphasis on FAMILY LOYALTY
6 “ASIAN VALUES” ARGUMENT:
1. Refusal to _____ _____ away from other spheres of life
compartmentalize religion
6 “ASIAN VALUES” ARGUMENT:
2. A belief that _____ and _____ need NOT necessarily be natural adversaries (ENEMIES)
government business
6 “ASIAN VALUES” ARGUMENT:
4. Insistence on ___ ___
hard work
6 “ASIAN VALUES” ARGUMENT:
3. A particular emphasis on _____ and _____
saving ; thriftiness
6 “ASIAN VALUES” ARGUMENT:
5. Respect for ____ ____
political leadership
6 “ASIAN VALUES” ARGUMENT:
6. Emphasis on _____ loyalty
family
ASIAN VALUES ARE FOR:
- RESPONSE TO WESTERN CRITICISM of Asia in areas such as
democracy and human rights. - LEGITIMIZE THE POLITICAL SYSTEM and regime in power.
- PROTECT necessary VALUES for good government and a good society.
- Genuine desire to DISCOVER what has promoted Asia’s economic growth.
(HAN, 1999: 1)
It deliberately MANIPULATED SELECTIVE ASPECTS OF ASIAN (mostly Confucian) VALUES while at the same time adapting them to the requirements of both the initial industrialization and post-globalization stages.
SINGAPORE’S CASE
Singapore has made maximum use of some elements of Confucian values such as:
- deference to authority,
- social discipline,
- government leadership, and
- emphasis on education, family values, and consensus.
The city-state that has overcome those negative aspects of Asian values - informality, favoritism toward family members and closed circles of friends and relatives, and the resultant tendency to corruption - and embraced those
values that have contributed to making Singapore a society that is rational and efficient in economic management, that is ________ , and that values ______ over personal relationships.
VIRTUALLY CORRUPTION-FREE ; ABILITY
Asian values as defined and used by the leadership, have been not only a useful tool to legitimize _____ ______ but also an instrument for bringing about rapid economic development and enabling the state to adapt to the changing world.
state paternalism
Today, three sets of traditions: - _____ , _______, and ________ inform the behaviors, practices, and institutions of China.
Confucian, communist, developmental state
The ______ tradition is operative mainly in interpersonal
relationships-deference toward elders and authority, adherence to dogma, and a stress on achievement.
Confucian
The _______ stage left an indelible mark on the Chinese egalitarian (equality) impulse and Leninist political structure.
communist
The pragmatic and developmental aspirations are reflected in the policies of the government and behaviors of individuals, many of whom now prioritize the accumulation of wealth over all other values.
CHINA’S CASE
ISI policies may be consistent with several types of
economic theories, though it is most closely associated
with Dependency Theory
Domestic production of substitutes for imported
commodities
Protectionist barriers to international trade in order to
encourage a domestic market
Government financing for new industrial projects
IMPORT SUBSTITUTION
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
- Democracies have better human rights records than non-democracies.
- Democracies have higher living standards than non-democracies.
- Democracies are more economically productive than non-democracies.
- Democracies do not fight wars against each other.
- Democracies do not experience famines.
- Democracies do not commit democide.
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
1. Democracies have better ___ _____ records than non-democracies.
human rights
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
2. Democracies have higher ____ ____ than non-democracies.
living standards
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
4. Democracies do not ____ ____ against each other.
fight wars
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
3. Democracies are more _____ _____ than non-democracies.
economically productive
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
5. Democracies do not experience _____ .
famines
PAUL’S 6 ARGUMENTS ABOUT DEMOCRACY:
6. Democracies do not commit _____ .
democide
Theory which explains East Asian INDUSTRIALIZATION
(Woo-Cummings, 1999: 1).
Seamless web of political, bureaucratic and moneyed influences that structures economic life in capitalist North Asia (Johnson, 1982 as cited by Bolesta, 2007: 105).
It is often conceptually positioned between a free market capitalist economic system and centrally planned economic system, and called a PLAN-RATIONAL CAPITALIST SYSTEM, ‘conjoining PRIVATE OWNERSHIP with STATE GUIDANCE’ (Woo-Cumings 1999: 2).
DEVELOPMENTAL STATE THEORY
is an embodiment of a normative or moral ambition to use the interventionist power of the state to guide investment in a way that promotes a certain solidaristic vision of national economy’ (Lariaux in Woo-Cumings 1999: 24).
DEVELOPMENTAL STATE THEORY
Ha-Joon Chang underlines that ‘economic development requires a state which can create and regulate the ECONOMIC and POLITICAL relationships that can SUPPORT SUSTAINED INDUSTRIALIZATION ’(Chang 1999: 183).
DEVELOPMENTAL STATE THEORY
Positioning the theory of developmental state
between a liberal open economy model and a
centrally planned model suggests its being neither
_____ nor _____ in texture.
capitalist ; socialist
CAN A DEVELOPMENTAL STATE BE CREATED
IN AN ECONOMY OF A NEO-LIBIRAL NATURE?
‘Politicizing certain “economic” decisions may not only be inevitable, but also desirable, because the
world is full of assets with limited mobility and owners who are naturally determined to prevent
changes that threaten their current positions’ (Chang 1999: 191).
‘The most important insight from early development economics was that systemic changes need
coordination’ (Chang 1999: 192).
Successful coordination requires a state which has the necessary tools to deal with the burden, and is
not merely the guardian of certain freedoms.
In East Asia, it had been judged that a theory of neo-liberal model of economy was not suitable as a
state policy aimed at accelerating socio-economic development, long before this very neo-liberal
ideology became the world dominating doctrine and a decade or so later turned out to be a failure
Create the two principal agents of economic growth
Create firms and build their capabilities (e.g.
chaebols of South Korea)
Park Chung Hee
Create and rely upon the “pilot” or coordinating
state agencies to guide industrialization (e.g., MITI
in Japan, Economic Planning Board in Taiwan and
SK, National Development and Reform Commission
in China)
Park Chung Hee
JAPAN: _____ KEIRETSU
ZAIBATSU
