Lecture-3-4 - The Rise of Development Problem

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Lectures 3 – 4. The Rise of
Development Problem in
the Global Scale
The rise of capital-function as the
effect of the internal contradiction
of commodity production between:
- a goal to increase
a mass of
exchange value
• and
• - a necessity to
diminish value of
each commodity
unit and to sell as
many goods as
possible
What is Statism?
• a social system organized around the
appropriation of the economic surplus
produced in society by the holders of power
in the state apparatus.” … “Statism is a
specific social system oriented toward the
maximization of state power, while capital
accumulation and social legitimacy are
subordinated to such an over-arching goal.”
(Castells M., 1998. The Information Age: Economy,
Society and Culture. Vol. III. End of Millennium. Oxford
(U.K.), Malden (Ma): Blackwell Publishers, pp. 7, 9)
What was Cold War?
• Samuel Huntington: “The conflict between liberal
democracy and Marxism-Leninism was between
ideologies which, despite their major differences,
were both modern and secular and ostensibly
shared ultimate goals of freedom, equality, and
material well-being. … A Western democrat
could carry on an intellectual debate with a
Soviet Marxist. It would be impossible for him to
do that with a Russian Orthodox nationalist.”
[Huntington S., 1997. The Clash of Civilizations
and the Remaking of World Order. New Delhi:
Penguin Books India (First published by Simon
& Schuster in 1996), p. 142].
The essential features of the
post-war capitalism (1)
• Technological base:
• mass conveyor production upon the base
of rational, scientific organisation of labour
and management for mass consumption;
• the principle of rhythmical input-output
(rhythm in input-output);
• standardisation of equipment, tools and
output
The essential features of the
post-war capitalism (2)
• Big corporations and strong trade unions,
oligopolistic competition;
• Planning and the state regulation of markets for
maintaining an effective demand
(Keynesianism), mixed economy
• Budget deficits and moderate inflation
• Hard regulation of financial and banking sectors,
fixed exchange currency ratios.
• Socialist-liberal, or liberal-socialist, consensus.
“The Stages of Economic Growth”
by Walt Rostow (1960)
- Traditional society
- Transition
- Take-off
- Maturity
- Mass consumption society
- Post-industrial society (added in
1971)
Theories of development – review in brief
• Hans Singer (1911-2006)
• Raúl Prebisch (1901-1986)
• Franz Fanon (1925-1961), “Les damnés de la
terre” (“The Damned”, “The Wretched of the
Earth”), 1961
• K.G. Myrdal (1898-1987): “The Asian Drama: An
Inquiry into the Poverty of Nations”, vols. I – III,
1968 (German edition of 1973)
• Aníbal Pinto Santa Cruz(1918 -1996)
• Celso Furtado (1920-2004)
Dependientistas and their main
ideas.
•
•
•
•
•
Underdevelopment is not the stage of
development but the effect of development in the
global scale;
Dualism of society (co-existence of
traditional and modern sectors) has been
reproduced in the process of development;
Minimal contacts with the First World
countries are necessary;
Development of capitalism cannot abolish
pre-capitalist, traditional sector of economy and
society because it reproduces the latter;
Industrialisation does not allow abolishing
the external dependency.
Andre Günder Frank (1929-2005)
• Capitalism and Underdevelopment in Latin
America: Historical Studies of Chile and
Brazil (1967)
• Latin America: Underdevelopment or
Revolution. Essays on the Development of
Underdevelopment and the Immediate
Enemy (1969)
• World Accumulation, 1492-1789 (1978)
Samir Amin (born 1931)
• L’accumulation à l’échelle mondiale:
critique de la theorie du sousdéveloppement (1971)
• English edition: Accumulation on a World
Scale: A Critique of the Theory of
Underdevelopment (1974)
Immanuel Wallerstein (born in 1930)
• The Modern World-System, vol. I: Capitalist Agriculture and the
Origins of the European World-Economy in the Sixteenth Century
(1974)
• The Modern World-System, vol. II: Mercantilism and the
Consolidation of the European World-Economy, 1600-1750
(1980)
• The Modern World-System, vol. III: The Second Great Expansion
of the Capitalist World-Economy, 1730-1840's (1989)
• Historical Capitalism, with Capitalist Civilization (1995)
• Decline of American Power: The U.S. in a Chaotic World (2003)
• World-Systems Analysis: An Introduction (2004)
• European Universalism: The Rhetoric of Power (2006)
Fernando Henrique Cardoso &
Enzo Faletto
• Dependencia y desarrollo en América
Latina: Un ensayo de interpretación
sociológica, México: Siglo XXI, 1969
• Dependency and Development in Latin
America. Translated by Marjory Mattingly
Urguidi. Berkeley, Los Angeles, L.:
University of California Press, 1978
Searching for New Development
Strategy
• Mahbub ul-Haq (1934-1996) and the UN
Development Programmes (Human
Development Report).
• Amartya Sen (born in 1933):
• Development as Freedom (1998)
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