Theories of Development Flashcards

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1
Q

What is Modernisation Theory?

A
  • Functionalist theory from the 1960s developed in capitalist nations
  • Does not separate development and capitalism
  • Offered 3rd World countries a way to develop through investment
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2
Q

How was Modernisation Theory applied (The Marshall Plan, 1947)?

A
  • USA offered loans to European countries after WWII
  • Tied Euro economies to US, making them dependent
  • Ensured captive market for US goods/ services, which were bought with US loans
  • Effectively paying 2x
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3
Q

Rostow

A
  • Economist working for US govt, created staircase model
  • Believed it would take ~60 years for a ccountry to modernise
  • Functionalist model (subtitled ‘an anti-communist manifesto’)
  • Model has been criticised for ethnocentrism and for being neo-imperialist
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4
Q

The Rostow Model Stages

A

1) Traditional society
2) Preconditions for take-off
3) Take-off
4) Drive to Maturity
5) High Mass Consumption

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5
Q

How does Parsons use Modernisation Theory to explain development?

A
  • Believed development was a form of evolution - more evolved = more capitalist
  • Comes from theory of eugenics (survival of the best)
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6
Q

Parsons’ Barriers to Development

A
  • Traditional values and attitudes
  • Lacking a meritocratic drive
  • High birth rates
  • Lack of individuals’ desire to compete
  • Lack of modern technology
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7
Q

What stages should countries progress through when they modernise?

A
  1. Technological
  2. Agricultural
  3. Industrial
  4. Geographical
  5. Political
  6. Social & Cultural
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8
Q

How can Modernisation spread liberal Western values? (Hoselitz, 1952)

A
  • People had to accept new patterns of work
  • Ideas can be spread through education and media
  • Cities could act as centres of values and spread them to rural
  • Typical pattern of empire-building (criticised as being imperialist)
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9
Q

Modernisation supporters

A

Functionalists, New Right, Economic Liberals (believe in laissez-faire policy)

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10
Q

Modernisation critics

A

Marxists, Neo-Marxists, Socialists, Interventionist Economists (believe in state involvement to ensure equality)

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11
Q

What is Dependency Theory?

A
  • Emerged in 1970s as the opposite to Mod.
  • Influenced by socialism, protests, and Marxism
  • Looks at development from poor countries’ perspective
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12
Q

What is Underdevelopment (Frank, 1969)?

A
  • Modernisation encourages and facilitates exploitation
  • It’s in the interests of rich cap. countries to keep come poor, which is deliberate and prevents development
  • Poor countries have low value currency and cheap labour costs (good for capitalism)
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13
Q

What evidence did Frank (1969) give for Underdevelopment?

A
  • TNCs have ever increasing profits
  • Sweatshops make our clothes
  • Slaves grow our food
  • Poor countries forced to buy products made with their own resources
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14
Q

How do Dependency Theorists believe capitalism is a form of empire-building?

A
  • Capitalist West underdeveloped deliberately
  • Creates Marxist superstructure on global scale
  • Bourgeoisie = Capitalist West
  • Proletariat = Poor non-cap.
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15
Q

What do Dependency Theorists mean by “neo-colonialism”?

A
  • Old empires practiced colonialism
  • New Cap. empire = neo-colonialism (taking charge through investment/aid and then exploiting them)
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16
Q

How does underdevelopment “kick away the ladder” for LLEDCs (Chang, 2003)?

A
  • Rich countries keep some poor countries poor by ‘kicking away the ladder’
17
Q

What are Metropolis and Satellite states?

A

Metropolis states are rich countries that keep satellite states poor for their own benefit
* Development of metropolis exploits the satellite
* Western nations buy off small elite in underdeveloped countries

18
Q

What do Dependency Theorists identify as the 3 stages of economic history?

A

1) Mercantilism
2) Colonialism
3) Neocolonialism

19
Q

Dependency: How can underdeveloped countries develop?

A

Escaping the capitalist system and the ‘master-servant’ relationship
1. Development must be state-led (eg. belt & road)
2. Isolation: attempt to be self-reliant and have little contact with the rest of the world
3. Breaking away at a time when global powers are weak
4. ‘Associate Development’: some limited development can happen when locked into capitalist system

20
Q

Negative Evaluation of Dependency Theory

A
  • Pessimistic message that never provided guidance on development
  • North Korea struggling (no capitalist influence)
  • Bottom Billion Theory - underdevelopment cannot be reduced to history of exploit.
  • China’s failed attempt of state-led development
  • More than 1.2 B lifted out of poverty since 1990, when capitalism became the main system
21
Q

Positive Evaluation of Dependency Theory

A
  • Many ex-colonies remain some of the most underdeveloped
  • Many Western countries reliant on LEDC and LLEDC for cheap goods
22
Q

How did Traditional Marxists address the problems with Dependency Theory?

A
  • Marx supported capitalism for development, but didn’t think it was the final goal; it was essential before socialism
  • Warren (1980) - dvp. in non-dependent 3rd World countries is evidence that capitalism coudl work without depending on the West
23
Q

What is World Systems Theory?

A
  • Core - highly developed capitalist, low tax, exports based on services/finance
  • Semi-Periphery - industrialised capitalist stable, high tax, manufacturing and food prod.
  • Periphery - pre-industrial unstable, irregular tax, income from cheap labour/tourism
24
Q

How does the World System work?

A
  • P provide cheap labour/raw materials to SP and C, receive cheap tech in return
  • SP use raw materials to create consumable products, with sell to C, purchase from P
  • C employ cheap labour from P, provide services (eg. IT) to SP, sell surplus tech and food to P
25
Q

How do countries move within the world system?

A
  • C can become over dependent, service industries disenfranchise working class, which raises labour costs and strains economy - turn into SP
  • SP can become wealthy through trade with C, turning them into C countries. Can also be undercut by P, and growth limited by rising costs/less availability
  • P can learn from tech sold to them, low labour costs means they can manufacture directly, so SP and P can swap places
26
Q

Traditional Marxism & the stages of development

A
  1. Primitive Communism
  2. Imperialism
  3. Feudalism
  4. Capitalism
  5. Socialism
  6. Communism
27
Q

What was the theory impasse after 1980?

A
  • There were 3 major development theories (Mod, Dep, W-S)
  • No consensus among sociologists, called ‘theory impasse’ (Booth, 1985)
28
Q

Why did the theory impasse happen (Booth, 1985)?

A
  • Development Theories Failed - Mod couldn’t explain Asian Tigers, Dep couldn’t explain fall of Communism
  • Postmodernists appeared - Called all theories ethnocentric, wanted to look beyond cap. dvp.
  • Globalisation - state lines blur/lose meaning, some argue old theories were out of date
  • Environmentalism - not all agreed that dvp was sustainable or desireable if it damaged the planet
29
Q

People-Centred Development Theory and Environmentalism

A

Socialist theory looking at happiness and health as indicators of successful development, popular in late 80s, interested in:
* Sustainability
* Participation
* Justice
* Basic Needs

30
Q

Post-Development Theory

A

Argues earlier theories outdated because:
* We are now living in a post-structuralist society
* Development theories too ethnocentric
* Pluralist multicultural societies need new approaches that consider humanist issues like wellbeing and happiness

31
Q

The Asian Tigers

A

Countries in Asia that became highly developed despite not following a Modernisation or Dependency model
* South Korea
* Taiwan
* Hong Kong
* Singapore

32
Q

What is Neoliberalism?

A
  • Free market capitalism in its modern form. Main goal is to reduce state influence in the economy, especially through privatisation and austerity
  • Aims to maximise the role of private business
33
Q

Why did Neoliberalism Emerge?

A
  • 1970s: global economic slowdown due to oil price increases of 1973 & 1979
  • Recession in Global North & ‘debt crisis’ in Global South
  • Disillusionment in North with goc’s record led to belief in the ‘magic of the market’
  • Belief that selling off inefficient public enterprises could save the government’s money
34
Q

Who developed and introduced neoliberalism in the West

A

Associated with Margaret Thatcher and Ronald Reagan - New Right Influences

35
Q

What do neoliberal policies aim to do and when were they first active?

A
  • Obstacles to dvp are internal - certain things limit free market
  • Developing countries must remove these limits and create an environment where private enterprise can flourish, to encourage competition and innovation
  • Replaced modernisation as guiding approach to development in the 80s
36
Q

What are some key neoliberal policies implemented in the UK?

A
  • Privatisation
  • Cut state spending
  • Cut taxes
  • Encourage free trade
  • Integrate into global economy
  • Cut subsidies
  • Abolish parastatal institutions
37
Q

Which institutions were privatised first in the UK, and why?

A
  • Mines - Replaced with cheaper imports
  • Schools - League tables and academisation
  • Trains - Privatised, while subsidised by public money
  • Royal Mail - Gov. sold 70% of it
  • NHS - ‘Trusts’ created (privately run, get public money)
38
Q

How do neoliberals approach social spending and taxation?

A
  • Believe in meritocracy, so they want to ensure that ‘being in work pays’
  • Dramatically cut state subsidies and help for businesses, meaning they needed bank loans
  • Benefits reduced and made more difficult to claim, so more in poverty needed to find jobs
  • Social housing sold off to those who could afford it
  • Taxes reduced on individuals and businesses, aiming to improve meritocracy
39
Q

Neoliberalism and Development

A
  • Development = natural consequence of allowing corporations complete freedom & selling all publicly-owned infrastructure to private organisation
  • Gov fund fewer institutions = lower tax
  • Lower tax = lower wages = higher profits
  • Employees driven to work harder & longer because state support is cut - need own money for everything