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)