Lecture 3 theories
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Modernization Theory is a theory of development which
states that the development can be achieved through
following the processes of development that were used by
the currently developed countries.
Scholars such as Walt Rostow and A.F.K. Organski
developed stages of development through which every
country develops. Samuel Huntington determined
development to be a linear process which every country
must go through.
Modernization Theory, in contrast to Classical Liberalism,
viewed the state as a central actor in modernizing
"backward" or "underdeveloped" societies.
Talcott Parsons' functional sociology defined the qualities
that distinguished "modern" and "traditional" societies.
Lecture 3 theories
Modernisation ideals
1. Rationality (in policy, in the application of
technological knowledge, in structuring
social relations, in thinking about objectives and
means).
2. Planning for development; searching for a
coherent system of policy measures in order
to change situations
undesirable.
3.
that
are
considered
Increases in production per capita and
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6. More efficient institutions and attitudes that
are conducive to an increase in
productivity and to development in general (for
example, institutions that allow for
mobility, initiative, entrepreneurship, effective
competition and equal opportunities;
attitudes like efficiency, diligence, orderliness,
punctuality, economy, honesty,
rationality, openness to change, solidarity and
future-orientedness).
Lecture 3 theories 2
Dependency Theory
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While Modernization Theory understood development and
underdevelopment as a result from internal conditions that
differ between economies, dependency theory understood
development and underdevelopment as relational.
It saw the world's nations as divided into a core of wealthy
nations which dominate a periphery of poor nations whose main
function in the system is to provide cheap labour and raw
materials to the core.
It held that the benefits of this system accrue almost entirely to
the rich nations, which become progressively richer and more
developed, while the poor nations, which continually have their
surplusses drained away to the core, do not advance.
Developed in the 1950s, dependency theory shared many points
with Rosa Luxembourg's and V.I. Lenin's earlier, Marxist,
Lecture 3 theories 3
Dependency Theory
Basis its roots in the Latin American historical experience
1. which had been long in long contact with European
imperialism.
2. Been colonized in the 15th century BC and did not regain
independence until first two decades of the 19thh century.In the
1960s social scientist begun to construct theories to explain the
inability of Latin American countries to escape from limits imposed
upon them by their former colonial powers and by both political and
economic dominance by the USA.
B. Dependence- means a situation in which the economy of certain
country is conditioned by the development and expansion of other
economies to which the former are subjected.
C. Sometimes termed neo colonialism- the survival of the colonial system
in spite of formal recognition of political independence in emerging
countries.
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Dependency Theory
Tenets:
1. All developing and underdeveloped states are
depended on the developed as for technology,
finance and capital, monetary systems and trade.
Capitalist has monopoly over means of production.
2. Dependency and monopoly is synonymous with
control of exploitation.
3. Dependency is a result of the incorporation of
the developing countries into the capitalist
systemIncorporation was a result of imperialism
and colonialism which saw the building of the first
networks not for the integration of all countries
economies but for the facilitation of the
exploitation of raw materials to the capitalist center
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Dependency Theory
Reasons for failures:
1. Third world industries had no comparative advantage
thereby creating inefficient industries
2. The strategies were not aimed at export led growth
hence crippled performance of their economies.
3. Third world markets are small and products cannot
be absorbed completely by the domestic marketDue to
excessive protection the quality of goods diminished
2.
Because of the need to imports machinery
and technology there was Balance of payment
and debt problems
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Dependency Theory
Critique of the theory:
1.criticised for believing that the problems faced by LDCS are
external rather than internal.
2. Degree of exploitation cannot be measured
3. Criticized for circular reasoning (the chicken egg reasoning)
underdevelopment and dependency.
4.use of single independent variable
5. Tends to emphasize conflict, revolution and violence
6. Failed to define development
Has contributed to the understanding of the
mechanism of poverty and underdevelopment, the
complexity and intensity of interaction between the
developed and developing countries, the impact of
internal
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Dependency Theory
If ruling is Comparable why do they need to realign
with others .
V.?Singapore developed as a result of linkage
with the west-Opened up the economy for
MNCs hence became a regional headquarters
BENEFITED:
- Employment, Infrastructure, Generates economic spill
off to the locals
Foreign exchange $90 billion exchange reserves
4 million population, 1 million foreigners, 3 and ½
thousand MNCs
Lecture 3 theories 7
World systems theory
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In response to some of the criticisms of Dependency Theory
came World Systems Theory, which the division of periphery
and center was further divided into a trimodal system consisting
of the core, semi-periphery and periphery.
In this system, the semi-periphery lies between the core and
periphery and is exploited by the core and exploits the
periphery.
This division aims to explain the industrialization within lesser
developed countries.
World Systems Theory w focuses on inequality as a separate
entity from growth in development and examines change in the
global capitalist system.
One distinguishing feature of this theory is a distrust for the
Lecture 3 theories 8
STATE THEORY
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This division aims to explain response to the distrust of the state
in World Systems Theory, is state theory.
State Theory is based upon the view that the economy is
intertwined with politics and therefore the take-off period in
development is unique to each country.
State Theory emphasized the effects of class relations and the
strength and autonomy of the state on historical outcomes.
Thus, development involves interactions between the state and
social relations because class relations and the nature of the
state impact the ability of the state to function.
Development is dependent upon state stability and influence
externally as well as internally.
State Theorists believe that a developmentalist state is required
Lecture 3 theories 8
Democracy theories
Importance of democracy (class debate/in class test)
Democracy peace theory- holds that democracies, for some
appropriate definition of democracy,[2] rarely go to war with one
another.
Types of democracies
List the types based on dsh 114.
Democracy does not work
Currently, opposition to democracy exists in communist states,
absolute monarchies, and Islamic governments, which appear to
Lecture 3 theories 8
Political instability
More recently, democracy is criticised for not offering enough
political stability. As governments are frequently elected on and off
there tends to be frequent changes in the policies of democratic
countries both domestically and internationally. Even if a political
party maintains power, vociferous, headline grabbing protests and
harsh criticism from the mass media are often enough to force
sudden, unexpected political change. Frequent policy changes with
regard to business and immigration are likely to deter investment
and so hinder economic growth. For this reason, many people have
put forward the idea that democracy is undesirable for a
developing country in which economic growth and the reduction of
poverty are top priority.
Democracy is also criticised for frequent elections due to the
instability of coalition governments. Coalitions are frequently
formed after the elections in many countries (for example India)
Lecture 3 theories 8
Vote Buying-This is a simple form of appealing to the
short term interests of the voters. This tactic has been
known to be heavily used in north and north-east
region of Thailand.Another form is commonly called
Pork barrel where local areas or political sectors are
given special benefits but whose costs are spread
among all taxpayers.
Mere elections are just one aspect of the democratic
process. If one examines the central tenets of
democracy, i.e., equality and freedom, these are
frequently absent in ostensibly democratic countries
such as Pakistan and Afghanistan. Moreover, in many
countries, democratic participation is less than 50% at
times, which makes them democracies only in
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Volatility and unsuitability
The new establishment of democratic institutions in
countries where the associated practices have as yet
been uncommon or deemed culturally unacceptable,
can result in institutions, that are not sustainable in the
long term. One circumstance supporting this outcome
may be when it is part of the common perception
among the populace that the institutions were
established as a direct result of foreign pressure.
The 20th Century Italian thinkers Pareto and Mosca
(independently) argued that democracy was illusory,
and served only to mask the reality of elite rule.
Indeed, they argued that elite oligarchy is the
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Facts about democracy
In practice it may not pay the incumbents to conduct fair
elections in countries that have no history of
democracy. A study showed that incumbents who rig
elections stay in office 2.5 times as long as those who
permit fair elections.[72] Above $2,700 per capita,
democracies have been found to be less prone to
violence, but below that threshold, more violence.
The same study shows that election misconduct tends to
fall in countries with low per capita incomes, small
populations, rich in natural resources, and a lack of
institutional checks and balances. Sub-Saharan
Lecture 3 theories 8
Neo-colonialism
Neocolonialism is a term used by post-colonial critics of
developed countries' involvement in the developing
world.
Writings within the theoretical framework of
neocolonialism argue that existing or past international
economic arrangements created by former colonial
powers were or are used to maintain control of their
former colonies and dependencies after the colonial
independence movements of the post World War II
period.
The term neocolonialism can combine a critique of
current actual colonialism (where some states continue
Lecture 3 theories 8
Critics adherent to neocolonialism contend that private,
foreign business companies continue to exploit the
resources of post-colonial states, and that this
economic control inherent to neocolonialism is akin to
the classical, European colonialism practiced from the
16th to the 20th centuries.
In broader usage, neocolonialism may simply refer to the
involvement of powerful countries in the affairs of less
powerful countries; this is especially relevant in modern
Latin America.
In this sense, neocolonialism implies a form of
contemporary, economic imperialism: that powerful
nations behave like colonial powers of imperialism, and
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Nkrumah argues that "In place of colonialism as the
main instrument of imperialism we have today neocolonialism. [...] Neo-colonialism, like colonialism, is an
attempt to export the social conflicts of the capitalist
countries." He continues:
The result of neo-colonialism is that foreign capital is
used for the exploitation rather than for the
development of the less developed parts of the world.
Investment under neo-colonialism increases rather
than decreases the gap between the rich and the poor
countries of the world. The struggle against neocolonialism is not aimed at excluding the capital of the
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We, politely referred to as 'underdeveloped', in truth are
colonial, semi-colonial or dependent countries. We are
countries whose economies have been distorted by
imperialism, which has abnormally developed those
branches of industry or agriculture needed to
complement its complex economy.
'Underdevelopment', or distorted development, brings
a dangerous specialization in raw materials, inherent in
which is the threat of hunger for all our peoples. We,
the 'underdeveloped', are also those with the single
crop, the single product, the single market. A single
product whose uncertain sale depends on a single
market imposing and fixing conditions. That is the great
formula for imperialist economic domination."
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In lieu of direct military-political control, neocolonialist
powers are said to employ financial, and trade policies
to dominate less powerful countries. Those who
subscribe to the concept maintain this amounts to a 'de
facto' control over less powerful nations ('see
Immanuel Wallerstein's World Systems Theory').
Both previous colonizing states and other powerful
economic states maintain a continuing presence in the
economies of former colonies, especially where it
concerns raw materials. Stronger nations are thus
charged with interfering in the governance and
economics of weaker nations to maintain the flow of
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Critics of neocolonialism also argue that investment by
multinational corporations enriches few in
underdeveloped countries, and causes humanitarian,
environmental and ecological devastation to the
populations which inhabit the neocolonies.
This, it is argued, results in unsustainable development
and perpetual underdevelopment; a dependency which
cultivates those countries as reservoirs of cheap labor
and raw materials, while restricting their access to
advanced production techniques to develop their own
economies. In some countries, privatization of national
resources, while initially leading to immediate large
scale influx of investment capital, is often followed by
dramatic increases in the rate of unemployment,
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Critics of neocolonialism portray the choice to grant or to
refuse granting loans (particularly those financing
otherwise unpayable Third World debt), especially by
international financial institutions such as the
International Monetary Fund (IMF), and the World Bank
(WB), as a decisive form of control.
They argue that in order to qualify for these loans, and
other forms of economic aid, weaker nations are forced
to take certain steps favorable to the financial interests
of the IMF and World Bank but detrimental to their own
economies. These structural adjustments have the
effect of increasing rather than alleviating poverty
within the nation.
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In postcolonialism theory
Postcolonialism is a set of theories in philosophy, film,
political sciences and literature that deal with the
cultural legacy of colonial rule. Postcolonialism deals
with cultural identity in colonized societies, referencing
neocolonialism as the background for contemporary
dilemmas of developing a national identity after
colonial rule: the ways in which writers articulate and
celebrate that identity (often reclaiming it from and
maintaining strong connections with the colonizer); the
ways in which the knowledge of the colonized
(subordinated) people has been generated and used to
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Globalization or globalisation
describes an ongoing process by which regional
economies, societies, and cultures have become
integrated through a globe-spanning network of
communication and execution.
The term is sometimes used to refer specifically to
economic globalization: the integration of national
economies into the international economy through
trade, foreign direct investment, capital flows,
migration, and the spread of technology.
However, globalization is usually recognized as being
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Is globalisation a recent phenpmenon? Class debate
Discovery continents, slavery, colonisation, neocolonisation, globalisation
Mordern globalisation
Since World War II, barriers to international trade have
been considerably lowered through international
agreements — GATT. Particular initiatives carried out
as a result of GATT and the World Trade Organization
(WTO), for which GATT is the foundation, have
included:
* Promotion of free trade:
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Effects of globalisation
* Industrial - emergence of worldwide production
markets and broader access to a range of foreign
products for consumers and companies. Particularly
movement of material and goods between and within
national boundaries. International trade in
manufactured goods increased more than 100 times
(from $95 billion to $12 trillion) in the 50 years since
1955.[35] China’s trade with Africa rose seven-fold
during 2000-07 alone.[36][37]
* Financial - emergence of worldwide financial markets
and better access to external financing for borrowers.
By the early part of the 21st century more than $1.5
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Effects of globalisation
# Political - some use "globalization" to mean the creation
of a world government which regulates the
relationships among governments and guarantees the
rights arising from social and economic
globalization.[45] Politically, the United States has
enjoyed a position of power among the world powers,
in part because of its strong and wealthy economy.
With the influence of globalization and with the help of
The United States’ own economy, the People's
Republic of China has experienced some tremendous
growth within the past decade. If China continues to
grow at the rate projected by the trends, then it is very
likely that in the next twenty years, there will be a major
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* Competition - Survival in the new global business
market calls for improved productivity and increased
competition. Due to the market becoming worldwide,
companies in various industries have to upgrade their
products and use technology skillfully in order to face
increased competition.[49]
* Ecological - the advent of global environmental
challenges that might be solved with international
cooperation, such as climate change, cross-boundary
water and air pollution, over-fishing of the ocean, and
the spread of invasive species. Since many factories
are built in developing countries with less
environmental regulation, globalism and free trade may
increase pollution. On the other hand, economic
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# Social - development of the system of nongovernmental organisations as main agents of global
public policy, including humanitarian aid and
developmental efforts.[59]
# Technical
* Development of a Global Information System, global
telecommunications infrastructure and greater
transborder data flow, using such technologies as the
Internet, communication satellites, submarine fiber
optic cable, and wireless telephones
* Increase in the number of standards applied globally;
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Negative effects of globalisation
Globalization has also generated significant international
opposition over concerns that it has increased
inequality and environmental degradation.
Globalization, the flow of information, goods, capital and
people across political and geographic boundaries, has
also helped to spread some of the deadliest infectious
diseases known to humans.[66] Modern modes of
transportation allow more people and products to travel
around the world at a faster pace, they also open the
airways to the transcontinental movement of infectious
disease vectors.[67] One example of this occurring is
AIDS/HIV.
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The Worldwatch Institute said the booming economies of
China and India are planetary powers that are shaping
the global biosphere. In 2007, China has overtaken the
United States as the world's biggest producer of
CO2.[74] At present rates, tropical rainforests in
Indonesia would be logged out in 10 years, Papua New
Guinea in 13 to 16 years.[75] A major source of
deforestation is the logging industry, driven
spectacularly by China and Japan.[76] Thriving
economies such as China and India are quickly
becoming large oil consumers.[77][78] China has seen
oil consumption grow by 8% yearly since 2002,
doubling from 1996-2006.[79] Crude oil prices in the
last several years have steadily risen from about $25 a
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The United Nations Office on Drugs and Crime (UNODC)
issued a report that the global drug trade generates
more than $320 billion a year in revenues.[92]
Worldwide, the UN estimates there are more than 50
million regular users of heroin, cocaine and synthetic
drugs.[93] The international trade of endangered
species is second only to drug trafficking.[94]
Traditional Chinese medicine often incorporates
ingredients from all parts of plants, the leaf, stem,
flower, root, and also ingredients from animals and
minerals. The use of parts of endangered species
(such as seahorses, rhinoceros horns, saiga antelope
horns, and tiger bones and claws) has created
controversy and resulted in a black market of poachers