Theories of Development Flashcards
Development
Process of change on an international change or when a good change has occurred
Modernisation Theory
- LDCs develop when they commit to free-market capitalism to modernise
- ‘Evolutionary Process’ (Huntington) by adopting Western cultural values, LDCs go through several stages to finally bring about a modern society of mass consumption (American Dream)
- Countries develop quicker because they don’t have an internal factor issued: traditional values and others
- When traditional values are very strong they act as a brake to development. (Durkheim, Mechanical Solidarity, the importance of traditional values)
Modernisation: Parsons
- Cultural changes are essential for modernisation
- ‘shifting equilibrium’ to describe how societies evolve and change. Evolution is due to cultural diffusion and progression through societies and any traditions and values that undermine modernity and prevent change occurring.
- Modern values: Achievement over Ascription, Individualism over Collectivism
- Rational scientific practice over tradition. Countries unwilling to do so as they are rooted within religion.
- Need to Adopt:
1. ) A Meritocratic education system. Speeds up the spread of Western values. Children of elites if educated with western values will demisable western value to the mass population
2. )Encourage the Expansion of the Media, rapidly diffuse ideas
3. )Encourage Urbanisation easier to spread values to concentrated city populations.
Modernisation:Parsons Example
- Islam and Hinduism are blamed for hindering the development progress in India as there are traditions that are anti-western and against science.
- Child marriages and large families has resulted in uncontrolled population growth. 1b people due to early marriages, illiteracy and lack of birth control awareness
Modernisation: Rustow
- Stages of development that countries must go through in order to modernise. Western capitalist societies are the furtherest along and benefit from economic prosperity and political stability.
- Five stages:
1. )Traditional Society (Aid and investment they rid traditional values)
2. )Pre-Conditions for takeoff (Infrastructure, healthcare, education development)
3. ) Take off (Development momentum leaves the ground)
4. )Drive to Maturity (High econ growth and investment in tech. Export goods to west)
5. ) Society of High Mass Consumption (High living standards, welfare, education) - To develop they need Advanced tech, capital for investment, entrepreneurs and a mobile workforce to fill the needs of the new economy.
Modernisation: Rustow Example
The USA is furthest and this is due to it’s technology sector fostering innovation paired with a system of democracy that protects entrepreneurs and proprietary rights
Modernisation Evaluation
- Ethnocentric (No American Dream) Japan and the ‘Asian Tiger economies’ that the traditional values in the form of non-Christian religious beliefs and the extended family can successfully coexist
- Ignores Crisis of Modernism (crime, poverty) Associated with polarisation. Rich elites are frequently linked to kleptocracy. Bribes and defrauding. Focus on internal obstacles ignores external obstacles
- Not enough resources on the planet for every country to become a society of mass consumption. Encourage false needs; cigarette and alcohol consumption
- Postmodernists challenge the idea that you can make generalisations about the developing world. Argue development can only be understood in relation to historical conditions and the individual characteristics
Neo-Liberalism and Modernisation
- Mod dismissed but laid foundations for the neo-liberalism
- Mod influence over organisations like the UN, WB, IMF
- The ‘people first’ policies of global charities or NGOs are based on the modernisation principle of ‘intervention’.
- Act as external agents, seeing themselves as the catalyst to stimulate change in attitudes=development.
- Critics of NGOs argue this approach is paternalistic and patronising, ‘knowing what is best for people’.
Neo-Liberalism (TNR)
- Like Mod failure due to internal factors like an excessive government interfering in the economy by for example providing subsidiaries for farmers preventing the market from establishing the real price of the commodity.
- Will develop if they embrace free-trade within global capitalism (cutting taxes, dismantling welfare services, privatisation of gov-owned assets, encourage entrepreneurship, outside investment)
Neo-Liberalism: Hayek
- Capitalism is dynamic and benign, prosperity and reward to those who demonstrate initiative /hard work.
- ‘Washington Consensus’ because its ideology dominates the worldview of US-based IMF and World Bank
1. ) Marketisation: Services/industries are sold. Political pluralism and democracy aid emergence of individualistic ideogley through capitalism. Find a niche through the free market to bring new wealth into both nations and individuals lives. Rising living standards and encourage hard work
2. ) SAP and ‘Tied Aid’: Loans from the IMF or WB with conditions money only used to open markets for foreign markets/exports. Cut back on public spending (Education) Open markets/encourage the movement of goods without gov interference
3. )IMF and WB: Were set up to bring global order but shifted to deal with trade between nations and handle disputes.
Neo-Liberalism: Examples
- Taiwan encouraged land ownership. Poor 30 years ago, now as rich as Spain.
- Tanzania was offered an SAP. One of the conditions imposed was to change the countries economy to a free market economy. Including the privatisation of the Public Sector, Number investors and outputs increased.
Neo-Liberalism: Solutions
- Free Trade
- Find Niche, no one else can and do it cheaply
- Exploit natural resources for the sake of development
- Removes an obstacle to Free Market
- Not aid as that encourages dependency
Neo-Liberalism Evaluation
-Polarisation. Generate wealth and poverty at the same time. Economic success (GNP/TNC profits) are weighted against economic deprivation (low wages, long hours and limited health and safety laws) These countries have poor HR and no trade unions. Just widening the gap globally and within countries.
-IMF/World Bank SAP only work in return for cuts in state spending, replacement of crops for domestic consumption with cash crops for export, and the privatisation of key industries. Washington consensus is about cutting gov spending of LDCs but unwilling to address their own fiscal responsibility/huge budget deficits.
=2015 the federal budget deficit for the USA is $564 b.
-Neo-liberal development models. The USA protect their own agriculture and industries with tariffs and trade barriers
=US President Nixon admitted: ‘main purpose of aid is not to help other nations but to help ourselves.’
Dependency Theory
- Not internal factors but lack of development is due to being forced into a position of dependency by the West
- Reliant economically on DCs. DC’s keep them that way as it benefits/no interest in letting them develop
- They benefit from cheap land, labour and resources
- Marxist principles
Dependency Theory: Gunder-Frank
- Constant state of underdevelopment through imperialist and colonial policies from West. True development can only be achieved by breaking away
- Satellites (Kenya): Underdeveloped, dominated due to a weaker economy/wealth is extracted/kept underdeveloped through manipulative trade/Foreign investments transfer wealth to west
- Metropolises (USA): Colonial Powers/Extract Surplus/Economic growth through exploitation/TNCs invest in satellites for high returns
- Chains of Dependency (Runs from met to merchants in satellites in which satellites are dependent on met due to surplus they take from their countries leaving them in poverty/paying debts from IMF)