Theories of Development Flashcards
What is Modernisation Theory?
- 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
How was Modernisation Theory applied (The Marshall Plan, 1947)?
- 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
Rostow
- 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
The Rostow Model Stages
1) Traditional society
2) Preconditions for take-off
3) Take-off
4) Drive to Maturity
5) High Mass Consumption
How does Parsons use Modernisation Theory to explain development?
- Believed development was a form of evolution - more evolved = more capitalist
- Comes from theory of eugenics (survival of the best)
Parsons’ Barriers to Development
- Traditional values and attitudes
- Lacking a meritocratic drive
- High birth rates
- Lack of individuals’ desire to compete
- Lack of modern technology
What stages should countries progress through when they modernise?
- Technological
- Agricultural
- Industrial
- Geographical
- Political
- Social & Cultural
How can Modernisation spread liberal Western values? (Hoselitz, 1952)
- 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)
Modernisation supporters
Functionalists, New Right, Economic Liberals (believe in laissez-faire policy)
Modernisation critics
Marxists, Neo-Marxists, Socialists, Interventionist Economists (believe in state involvement to ensure equality)
What is Dependency Theory?
- Emerged in 1970s as the opposite to Mod.
- Influenced by socialism, protests, and Marxism
- Looks at development from poor countries’ perspective
What is Underdevelopment (Frank, 1969)?
- 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)
What evidence did Frank (1969) give for Underdevelopment?
- TNCs have ever increasing profits
- Sweatshops make our clothes
- Slaves grow our food
- Poor countries forced to buy products made with their own resources
How do Dependency Theorists believe capitalism is a form of empire-building?
- Capitalist West underdeveloped deliberately
- Creates Marxist superstructure on global scale
- Bourgeoisie = Capitalist West
- Proletariat = Poor non-cap.
What do Dependency Theorists mean by “neo-colonialism”?
- Old empires practiced colonialism
- New Cap. empire = neo-colonialism (taking charge through investment/aid and then exploiting them)
How does underdevelopment “kick away the ladder” for LLEDCs (Chang, 2003)?
- Rich countries keep some poor countries poor by ‘kicking away the ladder’
What are Metropolis and Satellite states?
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
What do Dependency Theorists identify as the 3 stages of economic history?
1) Mercantilism
2) Colonialism
3) Neocolonialism
Dependency: How can underdeveloped countries develop?
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
Negative Evaluation of Dependency Theory
- 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
Positive Evaluation of Dependency Theory
- Many ex-colonies remain some of the most underdeveloped
- Many Western countries reliant on LEDC and LLEDC for cheap goods
How did Traditional Marxists address the problems with Dependency Theory?
- 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
What is World Systems Theory?
- 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
How does the World System work?
- 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
How do countries move within the world system?
- 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
Traditional Marxism & the stages of development
- Primitive Communism
- Imperialism
- Feudalism
- Capitalism
- Socialism
- Communism
What was the theory impasse after 1980?
- There were 3 major development theories (Mod, Dep, W-S)
- No consensus among sociologists, called ‘theory impasse’ (Booth, 1985)
Why did the theory impasse happen (Booth, 1985)?
- 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
People-Centred Development Theory and Environmentalism
Socialist theory looking at happiness and health as indicators of successful development, popular in late 80s, interested in:
* Sustainability
* Participation
* Justice
* Basic Needs
Post-Development Theory
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
The Asian Tigers
Countries in Asia that became highly developed despite not following a Modernisation or Dependency model
* South Korea
* Taiwan
* Hong Kong
* Singapore
What is Neoliberalism?
- 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
Why did Neoliberalism Emerge?
- 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
Who developed and introduced neoliberalism in the West
Associated with Margaret Thatcher and Ronald Reagan - New Right Influences
What do neoliberal policies aim to do and when were they first active?
- 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
What are some key neoliberal policies implemented in the UK?
- Privatisation
- Cut state spending
- Cut taxes
- Encourage free trade
- Integrate into global economy
- Cut subsidies
- Abolish parastatal institutions
Which institutions were privatised first in the UK, and why?
- 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)
How do neoliberals approach social spending and taxation?
- 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
Neoliberalism and Development
- 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
