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)