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Development Theories

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Kate Thompson

on 28 January 2013

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Transcript of Development Theories

CED 230 Concept Map by Kate Thompson What is development?
An Explanation of Related Theories Modernization Theory World System Theory Who really benefits? (Wallerstein) Dependency Theory (Willis) -underdevelopment of "3rd world" nations is because of over exploitation in the capitalist system
-as the CORE nations grow, they exploit and cripple the PERIPHERY nations
-limited mobility between the CORE and PERIPHERY

-this school of thought added another dimension to the binary categories of CORE and PERIPHERY in dependency theory, called the SEMI-PERIPHERY
-like Dependency Theory, it examines development on a macroscopic level, considering the historical nations have had upon each other
-expressed a focus on trade systems
-individual systems don't develop, but entire trade systems do

Parasitic Development: a zero sum perspective
-people always want more, demand for goods and services is insatiable
-surplus are never given back to the 3rd world countries that exported the materials of the goods
-this increases the gap between CORE and PERIPHERY nations
-some policies may lead to "a race to the bottom" (Babb) in which underdeveloped nations jump into world trading and find themselves in a poor bargaining position, trapped into low wages for unskilled labor producing goods sold cheaply in foreign markets The Five Stages of Growth (W.W. Rostow) Critiques on Modernization Theory is mass consumption really good for every? eurocentric, assuming that all countries follow a single trajectory. what about history? doesn't look at relationships between nations and political, cultural and economic influences Sustainability: meeting the needs of the present without compromising the future (intergenerational justice) Soubbotina 2000 Traditional Society
-science isn't available
-high inputs into agriculture but with low per capita outputs
-largely self-sufficient Preconditions
for Take-Off
-begins of economic progress
-limited by old fashion production techniques
-new feelings of national pride The Take-Off
-growth with increased capital, better technology and high investment Drive to Maturity
-sustained progress
-must have investments in economic and human capital
-move beyond original industries
-keep making new innovations, technology continues to improve Age of High Mass Consumption
-strong market for durable goods and services
-income that covers more than basic needs
-hunger for more
Modernization Theory and
Measuring Growth: The limitations (Preet)
- modernization theory is often used by elites to justify their own progress GDP is one of the oldest ways to measure progress, but it does not look at resource allocation

-what about informal goods and service?
-what about education and health care? GDP doesn't look at non-economic factors in development
-sometimes a high GDP and industrialization can be WORSE in terms of human health and the environment, with increased resource scarcity and pollution output Because Modernization theory assumed countries
developed in isolation, a new school of thought emerged to look at how the complex political, cultural and economic histories of countries were intertwined another perspective Marxism (Willis) Capitalist Ideas (Babb) economic progress in history
is viewed differently
by socialists and imperialist capitalists -primitive societies were more egalitarian
-as industrialization occurred, a division formed between the haves and the have nots (proletariat who sold there labor and bourgeoisie who owned the means of production)
-wealth leaves the country and doesn't benefit workers
-massive redistribution and restructuring efforts must occur

- modernization theory automatically entails capitalism, democracy, industrialization, urbanization and increased well being
-all nations progress in the same fashion and eventually converge
-what is good for the West is good for everyone a sort of parasitic relationship I think that considering the current rates of consumption within the US, a "fifth stage" of high consumption is not sustainable for all nations. However, this doesn't mean that some countries are forced to live in conditions inferior to "developed" nations. Rather, expectations must be shifted, and countries like the US must take responsibility for consuming more realistic amounts of resources. If everyone "rises" through all the stages of the modernization theory, consumption will outstrip both production and resources. Policy Ideas from Structuralists (Willis and Babb) -dependency theory looks at historical context and believes that Latin American nations need a different path to development than Europe took
-government should protect national industries
-use import substitution with tariff barrier
-allow 3rd World countries to improve their "bargaining power" in the global markets
-agrarian reform
-the government should help funnel money from economic growth back into development efforts

many Latin American
countries been influenced in policy making by Marxist and Socialistic ideas - opening countries to trade
-governments in debt agree to reforms
-strict austerity
-fiscal policies to attract foreign investment
-WB and IMF Can capitalism save the day: Structural adjustment (Babb). goal: bring everyone up the ladder of modernization theory means: consequences (Babb)
-extreme dependence on foreign industries
-high interest rates
- generalized demands (such as privatization of social security by USAID) that may not be the best for a specific country
-new debts incurred our in foreign currencies I think many of the policies
that were born out of Modernization era thinking re-enforce global inequality, and thus play into Dependency Theory limitations
-black and white, binary thinking
-hard to explain exceptions like so called "Asian tigers" of China and Indian Because Dependency Theory features only two polarized categories that appeared to rigid to accurately fit all developing nations, a new, more interconnected theory evolved Definitions of development (Soubbotina) -economic development can be a means of growth but does not mean development
-must involved improvements of human continues (such as better health care and education) to continue in a sustainable fashion
-implies an improved quality of life Limitations to World Systems Theory
I think World Systems Theory can be too macroscopic, generalization the individual conditions of a country in order to focus on larger trade systems, but each nation needs specific attention to its development status, with consideration of its historical context -there is no linear path to progress
Assumption: trade brings room for development Can nations get lost in a larger world system? -zero sum concepts: as one country gains other lose (wealth, influence and power)
-some nations are incorporated into successful world systems (like China, and their work production American iPods) but are conditions truly better for that nation's workers?
-consumers must question the larger chains of trade History:
the Cold War sought to explain why some systems of economic development trumped others
-modernization advocated the "west" had the best system, and developing countries should emulate western science, culture and technology
-allowed Western nations to edge out "2nd world" communist nations by promising economic success tied to democracy History:
evolved as a response to the binary ahistorical nature of Modernization Theory in the 1960s and 1970s
-constructed by Fernando Cardoso and Enzo Faletto
-Latin American focus because of the authors' origins
-considered colonization as a major factor in how a national did, or did not develop
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