Topic 2
DEVELOPMENT AND THE VARIOUS
PERSPECTIVE OF CHANGE
Definitions
Theories
DEFINITIONS OF DEVELOPMENT
• Important to first distinguish between:
Static
• Development as a state or
condition
Dynamic
• Development as a process
or course of change
KUALA LUMPUR
Native American
People
The word “development” in different
senses:
• Psychologists – Development of intelligence
• Mathematicians – Development of equation
• Photographers – Development of a film
(1) Todaro’s Definition of Development
“Development is not purely an economic
phenomenon but rather a multi-dimensional
process involving reorganization and
reorientation of entire economic AND social
system.”
Michael P. Todaro
Todaro’s 3 Objectives of Development
1. Raising peoples’ living levels, i.e. incomes and
consumption, levels of food, medical services,
education through relevant growth processes.
THEN
NOW
2. Creating conditions conducive to the growth
of peoples’ self-esteem through the
establishment of social, political and economic
systems and institutions which promote human
dignity and respect.
VIETNAM WAR ( BETWEEN 1962 & 1971)
VIETNAM TODAY AFTER THE WAR
3. Increasing peoples’ freedom to choose by
enlarging the range of their choice variables, e.g.
varieties of goods and services.
(2) Alternative Interpretations of
Development
• Development as Modernization
– emphasizes process of social change which is required to
produce economic advancement; examines changes in
social, psychological and political processes;
– How to develop wealth oriented behavior and values in
individuals; profit seeking rather than subsistence and self
sufficiency
– Shift from commodity to human approach with investment
in education and skill training
• Development as Distributive Justice
– view development as improving basic needs
– Interest in social justice which has raised three issues:
1. Nature of goods and services provided by governments
2. Matter of access of these public goods to different social
classes
3. How burden of development can be shared among these
classes
(3) Marxist’s View of Development
• Emphasizes Mode of Production - elements
and activities necessary to produce and
reproduce real, material life.
• Capitalist (market economy) mode depends
on wage labor whose labor power produces a
surplus which is accumulated and
appropriated by the employer-result is often
class conflict in capitalist societies.
Founder:
Two German Philosophers - Karl
Marx and Friedrich Engels
Marxism is a worldview and method of societal analysis that focuses on class
relations and societal conflict, that uses a materialist interpretation of historical
development, and a dialectical view of social transformation. Marxist
methodology uses economic and sociopolitical inquiry and applies that to the
analysis and critique of the development of capitalism and the role of class
struggle in systemic economic change.
RECAP – Development Views
• Todaro
– Increase quality of life
– Provide conducive conditions for promoting
human dignity and respect
– Increase people’s freedom of choice
• Alternative Views
– Development as modernization
• Emphasize on social change
• Develop wealth oriented behaviors and values
• Shift from commodity to human skills
– Development as distribution of justice
• Improving basic needs and social justice
• Marxist’s View
– Development as a result of capitalist activities.
Sustainable Development
?
THEORIES OF DEVELOPMENT
Modernization Theory
• This theory suggests that economic dimension alone is
insufficient and adds theories on institutional and social
change.
• Incorporates non-economic elements such as social
practices, beliefs, values and customs.
• Diffusion and speed of change is critical as is removal of
various cultural and social barriers.
• Backward internal structures-rather than external factorscause underdevelopment.
Summary
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This theory focused on deficiencies in the poorer countries and speculated about
ways to overcome these deficiencies.
It viewed traditional society as a series of negative (stagnant and unchanging, not
innovative, not profit-making, not progressing, not growing).
This theory argue that science and entrepreneurship grew in Western Europe and
the engine of this economic growth was capitalism.
In Modernization Theory, ‘development’ meant economic growth and
industrialization.
Many underdeveloped/developing countries embarked on varying projects of
national development (infrastructures, highways, dams; social changes such as
getting rid of traditional beliefs and practices etc) to catch up with the West.
Choice of development made by the leaders of the countries.
Development standards almost entirely set by West-centric institutions (eg.
Education system, law system, political system)
Development means the process of Westernisation whereas the way they had
transformed and ‘developed’ became the blueprint for the rest of the world.
Dependency Theory
• This theory opposed modernization theory (critique).
• The theory emerged first in Latin America, amongst social
scientist such as Raul Prebisch (Argentinian Economist).
• This theory not homogenous – but the essence is:
“The origins of persistent global poverty cannot be understood
without reference to the entire international economic system.
Underdevelopment is not a condition: it is an active process of
impoverishment linked to development. That is some parts of the
world are underdeveloped because others are developed. They are
not separate processes but two aspects of the same process.”
• In other words:
1st Argument:
– economic growth in advanced countries created
Third World poverty in its wake: not simply that
the Third World is poor in comparison with the
industrialized world: rather that it is poor because
development of the industrial system in Western
Europe and North America changed and
impoverished many societies of Asia, Africa and
Latin America, through colonialism, imperialism
and extractive terms of trade.
Second Wife
First Wife
• 2nd Argument:
– Dependency argues that before the era of modern
economic growth (until about 500 years ago), the
world’s major regions were not densely connected to
each other (though extensive trade networks existed).
– When capitalism began to spread, the ceaseless
search for profit began: through the production of
agricultural goods in colonies or other lands and
Western Europe’s ability to drive unequal bargains.
– This fundamentally changed the social structures of
the Third World.
– Some say the exploitation of various regions for their raw
materials and labor impoverished them and made them
depend on the West.
– Others point out that in fact it is the way around: that the
West has been dependent on the Third World though
history in order to be able to grow and prosper.
– So, poverty in the Third World is not ‘traditional’ or
accidential.
– It is a necessary companion to the richness of the
developed world.
– The expansion of the industrial world deformed the rest of
the world.
• Historian Eric Williams, for example, argues that
the slave trade between Africa and the Caribbean
islands was responsible for the emergence of a
commercial middle class in Britain and eventually
for Britain’s industrial revolution (between 17701850).
• Slaves were taken from Africa to the Caribbean;
their unpaid and coerced labor produced such
profitable commodities as sugar or cotton, which
were taken to Europe for huge profits.
• This provide the conditions for “take-off” for
Britains’s industrial revolution.
• Similarly, in the late 18th century, Haiti, now
the poorest country in the northern
hemisphere, produces one-half of all the sugar
and coffee consumed in Europe and the
Americas, as well as substantial amounts of
indigo and cotton.
• The approximately 500,000 slaves working on
the colony’s 8000 odd plantations generated
two-fifths of France’s overseas trade.
• West Africa societies were uprooted by centuries of the
slave trade: in the Caribbean the plantation system (set up
to meet the needs of the colonists) met no local needs and
impoverished workers.
• Mines in the Third World produced bauxite, tin, iron and
other metals and minerals for the industries of the West.
• All of this depended on cheap indentured or slave labor.
• Many of the regions of the world were left with skewed,
impoverished economies and devastated populations while
the now-developed countries gained prosperity.
MALAY TIN MINING, 1930S
• These examples show the dependency
approach:
“the actual creation of
underdevelopment at the cost of
development.”
Key Arguments (Versus)
Modernization Theory
• Sees capitalism as a creative
force, causing growth and
progress.
• Sees rich countries as
helpers of poor countries.
Dependency Theory
• Sees international
capitalism as the ruin of the
Third World.
• Sees rich countries as the
main obstacle to the wellbeing of the poorer
countries.
Some Common ‘Theories”
• Old view that absence of development caused by
certain physical environments, particular cultural
traditions and value systems-environmental and
cultural determinism.
• Lack of natural resources certainly impediment to
development but not impossible- example of
Japan.
• Why has Japan succeeded?
Reasons for Japanese Success:
• Strong cooperation between government and business.
• Able to adapt to spatial-physical situation and acquire a
maritime prowess.
• Early development (Meiji restoration) of transport and
banking systems.
• Highly literate population.
• Niche development- technology driven
Underdevelopment
In economics, underdevelopment is when
resources are not used to their full socioeconomic potential, with the result that local or
regional development is slower in most cases
than it should be.
What Causes Underdevelopment?
• Very easy to focus on characteristics of
development.
• For example we know that underdevelopment is
usually characterized by: low per capita incomes,
low literacy and educational attainment, lack of
basic services- water and power.
• But how do we EXPLAIN underdevelopment?
Other Common Explanations of
Underdevelopment
• Instability and other adverse internal situationspolitical factors.
• Some truth to this as extended periods of
turbulence are not conducive to developmentcentral African nations with tribal rivalries and
ethnic cleansing.
• Poor physical environment- lack of rainfall, poor
soils also may pose barriers to development.
• Underdevelopment must be seen as a product of an
array of complex and continuously changing
interactions between:
1. Past and Present
2. Natural and Human Environments
3. External and Internal Conditions
• Multitude of obstacles to development vary with place
and time.
• Critical to remember that the above theoretical ideas
aid us in asking pertinent questions