Theories of Development Flashcards

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1
Q

Development

A

Process of change on an international change or when a good change has occurred

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2
Q

Modernisation Theory

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  • 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)
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3
Q

Modernisation: Parsons

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  • 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.
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4
Q

Modernisation:Parsons Example

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  • 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
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5
Q

Modernisation: Rustow

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  • 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.
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6
Q

Modernisation: Rustow Example

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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

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7
Q

Modernisation Evaluation

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  • 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
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8
Q

Neo-Liberalism and Modernisation

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  • 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’.
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9
Q

Neo-Liberalism (TNR)

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  • 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)
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10
Q

Neo-Liberalism: Hayek

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  • 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.
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11
Q

Neo-Liberalism: Examples

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  • 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.
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12
Q

Neo-Liberalism: Solutions

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  • 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
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13
Q

Neo-Liberalism Evaluation

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-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.’

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14
Q

Dependency Theory

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  • 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
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15
Q

Dependency Theory: Gunder-Frank

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  • 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)
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16
Q

Neo-Conolosim

A
  • New form of economic exploitation. End of colonialism didn’t end exploitation
  • Former colonial powers to maintain political and economic dominance over a former colony.
  • Three-Forms of Oppression: World Trade, TNCs and Aid
17
Q

Neo-Colonialism: Frank

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  • Separated world into the exploitative ‘core’ and the exploited ‘periphery’
  • Colonies are a source of labor, raw materials and food/vast plantations of tea, sugar cane, fruit and coffee for Western Markets
  • Gained independence a new form of colonialism. Fragile and newly independent nations had tensions caused by historical issues.
18
Q

Neo-Colonialism: Englebert

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  • Corrupt and undemocratic leaders depended on aid to maintain power and aided by political powers of west
  • So are recolonised by dominant countries through trade.
19
Q

Neo-Colonialism: Englebert Example

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First president of the Republic of Ghana stated when they gained independence, the prices of primary products began to decay whilst manufactured ones rose. Exports increased but earning decreased.

20
Q

Neo-Colonialism: Hayter

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  • Crops are ‘false riches’ and ‘cash crops’. Foreign aid acts as a new form of imperialism by creating dependency on handouts from the west. Demand something in return.
  • ‘Tied-Aid’
21
Q

Neo-Colonialism: Hoogvelt

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  • Interests of elites in the developing world become ‘intertwined’ with both TNCs and the interests of developed countries.
  • International ‘management of instability’
  • A growing ‘mosquito cloud’ of local resistance movements challenging aspects of this neo-colonialism.
22
Q

Neo-Colonialism: Hoogvelt Example

A
  • The Fairtrade movement /fair trade goods
  • ‘Fairtrade’ implies normal trade is not ‘fair’.
  • When developing countries frequently rely upon one or two cash crops it is important that farmers receive a sufficient price for their goods.
  • The Fairtrade movement argues it is necessary because world trade is balanced in favour of the DCs
23
Q

Effects on Neo-Colonialism on LDCs

A
  • Overproduction of Primary Products.
  • Raw Materials have little value.
  • Limits through tariffs and quotas.
  • Western inflation.
  • Money earned by exports of primary commodities.
24
Q

Solutions by Dependancy and Neo-Colonists

A

1.) Isolation: Escape exploitation by escaping the capitalist system altogether.
=China or North Korea, suggest that this is not successful. China’s subsequent embracement of global capitalism as the key to its recent success.
2.) Dependent Development: Shift towards import substitution industrialisation whereby local industries produce goods that would normally be imported from the developed world.
=Green (1995) has documented how ISI advanced Latin America’s economic development, In the 1960s domestic production provided 95% of Mexico’s and 98% of Brazil’s

25
Q

Evaluation of D and N-C

A
  • Frank doesn’t define dependency or how it is measured
  • Ignores internal factors like kleptocracy and cultural factors that contribute.
  • Modernisation theory would argue that aid and inward investment by TNCs do bring some benefit to developing countries often taking them to ‘take-off’
  • Cannot explain the rapid development of countries like the Asian ‘tiger economies’ or emerging economies such as Mexico, Brazil and Argentina.
  • Goldthorpe, argued that colonialism provided developing countries with a basic infrastructure
  • LDCs are not homogeneous, they don’t share the same experiences and predicament. Too Simplistic as it depends many factors (politics, elite priorities, resources and culture and values)
26
Q

World Systems Theory

A
  • Developed to evolve Frank’s theory and combats the criticisms of the rigid Dependency Theory.
  • Wallerstein argued that individual countries exist within a broad political, economic and legal framework he calls the ‘modern world system’
  • Adds semi-periphery
  • The powerful core states exploit the semi-periphery and the periphery using trade barriers and quotas, exploiting cheap labour, resources and dumping
  • The semi-periphery exploits the periphery.
  • The power of the core facilitates the accumulation of capital in the hands of the few.
27
Q

World Systems Theory: Wallerstein and Frobel

A
  • Wallerstein embraced FROEBEL who termed the ‘new international division of labour’. Shift manufacturing to the LDCs and take advantage
  • Production occurs in EPZs which are specifically built to facilitate TNC production to be exported back to the developed world consumer markets
28
Q

World Systems Theory Evaluation

A

-Economically deterministic and ignores the influence of political and cultural factors
-Ignores trade unions and worker organisations
-Singapore, South Korea and Hong Kong were considered underdeveloped but are now highly urbanised and developed
= 50 years ago, Singapore was an undeveloped country with a GDP per capita of $320. Today its GDP per capita is $60,000, the 6th highest. Lacks territory and natural resources, open and corruption-free, stable prices. Its economy depends heavily on exports, (consumer electronics and information technology products)

29
Q

Postmodernism

A
  • Both M and D treat DCs as homogeneous.
  • Each countries individualism and reject ‘one size fits all’ approach
  • Assumption that change evolutionary is wrong as there is no truth. Only socially constructed.
  • The nature and extent of development are dependent on the characteristics of a country (Time and power relations)
  • Development occurs individually
  • Understanding the conflicts that can hinder development, especially where there is a diversity of ethnic identities.
30
Q

Evaluation on Postmodernism

A
  • Strength as focuses on culture, discourse, values and identities
  • Cannot be used to analyse the development