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”.