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
