Theories on Global Development

Question 1

What type of thinkers favour modernisation theory?

Answer 1

MODERNISATION THEORY: (Favoured by functionalists, New-right thinkers, and economic liberals)

Question 2

What is modernisation theory?

Answer 2

Modernization theory is a functionalist theory of development that emerged in the 1960s (during the cold war with the capitalist USA and communist USSR). Modernization theory offered third-world countries a way to develop through investment and aid.

Question 3

What is the Rostow model?

Answer 3

Rostow was an economist working for the US government.

Rostow came up with a model that describes how capitalism allows countries to develop through investment and aid. This model is often referred to as the staircase model (also subtitled as the anti-communist manifesto) and is evidently a capitalist idea. The creation of the model brought the intention to draw European countries towards capitalism (America) and defer it away from communism (Soviet Russia) during the heat of the cold war.

1) traditional society: subsistence, fishing, and farming
2) Pre-conditions for take-off: infrastructure
3) Take-off: a rapid growth of manufacturing (I REV)
4) Drive to maturity: new tech replaces industries
5) High-mass consumption: wealth, welfare, trade, consumer society.

Question 4

What was Talcott Parsons evolutionary view of Global Development?

Answer 4

• Talcott Parsons was a structural-functionalist that saw
  development as an evolutionary process
• He contended that as society improves or becomes
  ‘more developed’, it would naturally become
  functionalist and capitalist like the USA (similarly to
  humans evolving from apes)

Question 5

Parsons barriers to development:

Answer 5

• Traditional norms, values, beliefs, and attitudes
• Lack of meritocratic drive
• High birth rates (it goes against the functionalist view of
  the sacred nuclear family)
• Lack of an individual’s competition (entrepreneurship)
• Lack of modern technology

Question 6

What was Hoselitz view (1952)?

Answer 6

• Modernising social systems meant people had to accept
  new patterns of work (transition from manufacturing
  economy to a service economy - mechanical to organic
  solidarity)
• He suggested that western ideas can spread through
  social institutions, such as education and mass media
• Cities could act as centres of western values and spread
  them to rural areas.

Question 7

How does modernisation happen according to modernisation theorists?

Answer 7

1) Technological: A shift from traditional machinery to
specialized machines
2) Agriculture: The change from subsistence farming to
commercial mass production of agriculture
3) Industrial: The shift of labour from humans and animals
to machines
4) Geographical: The shift of the population moving from
rural areas (villages and farms) to urban areas (towns
and cities). Urbanization
5) Political: From ascribed status (kings, barons, knights,
serfs) to a more liberal democracy.
6) Social and cultural: The cultural change of living in
kinship groups to the nuclear family. Modernisation
theorists would also advocate for the socialisation of
deferred gratification rather than immediate
gratification as it benefits their lives in a capitalist
society.

Question 8

What is Dependency Theory?

Answer 8

• Dependency theory emerged in the 1970s (during the
  heat of the Vietnam war) and was a direct challenge to
  modernisation theory from a neo-Marxist/socialist
  ideology and theology.
• Dependency theory looks at development from poorer
  nations’ perspectives (particularly south American
  countries where the theory and the ideas surrounding it
  were being formulated)
• Andre Gunder Frank (1969) introduced the term
  ‘underdevelopment’ in this theory.

Question 9

Frank’s theory of underdevelopment:

And how does the West underdevelop the global East

Answer 9

• Frank highlighted the exploitation encouraged and
  facilitated by modernisation theory
• He contended that the interests of rich countries
  promote the underdevelopment of poorer nations
  because it benefits them
• He also argued that the rich capitalist countries
  deliberately prevented and discouraged the
  development of some nations
• Keeping poor nations poor is a good idea for rich
  capitalist countries because poor countries have low-
  value currency and cheap labour costs.
• In a global society, capitalist companies can build
  facilities in LEDCs and use their population for very
  cheap labour, in turn increasing profits for firms (interest
  of MEDC). - e.g call centers and swat shops
• Sweat shops are where poor countries are forced to buy
  products made in the rich West using their own natural
  resources.
• Preventing development means we can extract material
  and labour value from underdeveloped/poor nations
  while also using them for technology and expertise.
  THIS IS UNDERDEVELOPMENT

Question 10

Dependency theory on neo-imperialism

Answer 10

• Dependency theorists believe the capitalist west
  underdeveloped LEDC deliberately
• This creates the Marxist idea that there is a
  superstructure on a global structure
• The bourgeoisie are now the capitalist western
  countries and the proletariat are now the poor non-
  capitalist countries
• This was called the three worlds at the time; which
  implies that there is a quantitative difference; some are
  better than others.
• The old empires practised colonialism - taking charge
  and control of countries by using an army and exploiting
  its population and natural resources
• The new capitalist empire practices neo-colonialism-
  taking charge of other countries with investment or aid
  and exploiting their population and natural resources -> - - Pushes people to conform with the system and not
  revolt.

Question 11

Frank’s model of dependency

Answer 11

CC

Question 12

Dependency theory in modern times

Answer 12

• Rostow’s model shows how countries can climb a ladder
  to development. However, rich countries keep some
  poor countries poor (underdevelopment) by “kicking
  away the ladder” -Chang,2003
• In the industrial revolution, cottage industry went
  bankrupt as factories emerged
• In the modern world, economically small nations are as
  poor as the talent they have are encouraged to leave for
  rich countries in search for better lives.
• Development theorists say that this strips poor countries
  of value and keeps them dependent on the exploitative
  rich countries.
  It has been argued that the west steals poorer nations
  talented members of its populous to keep them poor
  and.
• This has been regarded as the metropolis (big city) and
  satellite (poor city) chain.

Question 13

Metropolis and its satellites model

Answer 13

National Metropolis –> Regional center –> Local center

• -> Landowners/merchants –> small peasants/tenants
• -> landless labourers

Question 14

What type of theorists favour worlds systems theory and when did it emerge?

Answer 14

WORLD SYSTEMS THEORY: 1980s (NEO-MARXIST, but it is heavily influenced by traditional Marxism)

Question 15

What is Worlds systems theory?

Answer 15

Post dependency theory: Dependency theory was useful as a guide to governments in underdeveloped countries
- Dependency theory was neo-Marxist
- The message of dependency theory was more or less
become capitalist or suffer underdevelopment, with
some exceptions, they become capitalist through the
free market

Question 16

For Worlds systems theorists, what are the stages of development?

Answer 16

Later on, traditional marxists examined the dependency narrative:
Marx himself actually supported capitalism as an efficient route towards development
Marx thought that capitalism was not the final goal of development
Marx argued that it was a necessity before socialism - a country should become wealthy, then look to distribute its wealth in order to improve the life for all of its citizens and create a more economically egalitarian society.

primitive communism - slavery - feudalism - capitalism - socialism - communism

Question 17

What did Warren believe (1980) (Worlds systems theorist)

Answer 17

Development in non-capitalist third world countries are evidence that capitalism could perform this purpose without negative dependency on the west.

Question 18

What is WALLERSTEIN’S idea of the modern world system

Answer 18

Wallerstein developed his modern systems theory during the 1980s and contended that capitalism had a purpose for countries to be able to move up in the system by taking actions/steps in order to improve. He argued that periphery nations could move up by providing richer nations with cheap labour and raw materials.

Question 19

What was the theory Impasse? (1980s)

Answer 19

A stop in sociological progression when it came to development theories. It was also a period where there was little consensus on which development theory held the most weight.

There was no consensus among sociologists; this is called the ‘theory impasse’ (Booth,1985)

Question 20

WHICH THREE THEORIES HAD BEEN BEFORE THE THEORY IMPASSE?

Answer 20

Modernisation theory (functionalist)
Dependency theory (neo-marxist)
Worlds systems theory (traditional marxist)

Question 21

Reasons for the Theory Impasse:

Answer 21

• Old development theories failed:
  The 1980s are known as the ‘lost decade’ for
  development. A series of financial crashes were
  responsible (Inflation rising, unemployment rates rising
  with strike action, wealth disparity broadens, and the
  OPEC oil crisis)
  Dependency theorists couldn’t explain the 4 Asian
  tigers while Marxist and Neo-Marxist theories couldn’t
  explain the fall of communism in Europe.
• Postmodernists appeared:
  They called out development theories for being
  ethnocentric and no longer representative of the fast
  changing and increasingly diverse society in which we
  live in today.
  They wanted to look beyond capitalist development
  and count other types.

Question 22

What is people centered development

Answer 22

People-centered development theory was a socialist theory looking at happiness and health as indicators of successful development; which became popular in the late 1980s.

Question 23

What are people centered development theorists interested in

Answer 23

• Sustainability - support your own people; everyone
  benefits
• Participation - communities should get a say in
  development in their area
• Justice - include marginalised groups and ensure
  equality in law
• Basic needs - welfare, health, education, food and water

Question 24

What is Post-development

Answer 24

Post-development is a 1980s postmodernist theory that says earlier development theories were outdated:

We are now living in a post-structuralist society
- Globalisation and neoliberalism removed past structures

Development theories were too ethnocentric:
- Focused on US and Europe, they failed to explain the 4
Asian tigers

Question 25

WHAT ARE NEOLIBERALISM’S INFLUENCERS AND WHAT DID THEY ARGUE FOR?

Answer 25

• Neoliberalism is commonly associated with former
  Prime Minister of Great Britain, Margaret Thatcher, as
  well as former US president, Ronald Reagan.
• Neoliberalism is heavily influenced by New-Right
  ideology - the belief in rolling back the state/minimizing
  state power
• Neoliberalism believes in the modernisation theorist
  belief that limiting factors to develop are internal. There
  are things that limit the free market and Neoliberals
  want to remove barriers around it to make sure that the
  economy full of private enterprise is flourishing with
  dynamism and efficiency.

Question 26

What is Neoliberalism?

Answer 26

Neoliberalism is the economic and political philosophy that emerged in the 1980s; which is used to describe free-market capitalism in modern times. Eliminating price controls, deregulating capital markets, lowering trade barriers are all crucial features. The main goal is to reduce the state’s involvement and influence in the economy, especially through privatisation and affluence (cuts to public services).

Question 27

WHY DID NEOLIBERALISM EMERGE DURING IN THE 1980s?

Answer 27

• In the 1970s global economy, an enormous slowdown in
  growth occurred due to the OPEC oil crisis (as well as
  industrial unrest +inflation issues caused by Keynesian
  economics that endorse government planning in the
  capitalist economy); which caused prices of oil to rapidly
  increase in 1973 and 1979 in particular (caused by the
  inability to acquire oil from countries like Egypt and
  Syria due to the fact that the UK and USA funded
  Israel’s military; which would be used against Egypt and
  Syria.
• Consequently, they introduced an embargo against the
  USA and UK for oil) - Yom Kippur war 1973.
• As a result, a recession occurred in the North and a
  “debt crisis” emerged in the global south.
• Disillusionment in the North with a record of gov led to
  the belief in ‘the magic of the market’
• The belief that selling off loss-making and inefficient
  public enterprises could save the governments a lot of
  money - Government industries were inefficient in the
  eyes of Neoliberals.

Question 28

EXAMPLES OF NEOLIBERAL POLICIES:

Answer 28

Privatization: Government selling national assets like the railway, post, schools, NHS, etc. to the private sector.
Abolish parastatal institutions: The belief that the government (state) shouldn’t have to regulate markets. The market regulates itself in a ‘race to the bottom’. Consumers spend less while bosses make more.
Subsidies: No funding for struggling businesses - if a market fails, then another market will replace it (e.g coal mining industry)
Affluence/spending cuts: The government shouldn’t have to pay. The individual should pay their own way - pensions, welfare needs, national insurance, and education (e.g uni costs increased drastically over past two decades alone)
Encourage free trade: Cut tariffs on as many goods as possible - Affluence allows this.
Integrate into a global economy: If a foreign company does something better, then they can do it for other countries. People still get jobs in the other countries, but the companies are not located in the countries, so the typically richer countries encouraging free trade around the globe do not have to pay much tax if not any tax at all -> Companies make more profits + Prices drop for consumers