DEVELOPING WORLD & WELFARE STATE

1. DEVELOPING WORLD & WELFARE STATE

2. Nature of Underdevelopment • Historical Origins of Developing World • Legacy of colonialism (European powers sought access to raw materials, new markets, and geographic advantage over rivals). • Decolonization after the WWII • Economic Underdevelopment • At national level, suffering of some combination of low per capita income, unequal income distribution, poor infrastructure. • As social level, there are widespread scarcity, substantial unemployment, poor health condition, lower literacy and educational levels, and inadequate nutrition. • Social and Political Underdevelopment • Suffering of poor social conditions, greater gender equality • Lack of fair and competitive election, opportunities for political participation, free and open media, minority rights

3. Modernization Theory • Features of Modernization Theory • Emergence following the demise of European colonialism during the 1950s and 1960s. • Developing world should follow a path of political and economic modernization similar to the one exercised by the advanced Western countries. • Developing countries should reshape their cultural values and create modern political and economic institutions. • Developing countries should reshape their political culture, culturally rooted attitudes to authority, legitimacy, and community. • Critics of Modernization Theory • Economic growth proved to be no guarantee of democracy, stability, equality, or autonomy. • The process of social and economic modernization often ushers in political instability and violence. • No country could achieve economic success without political stability.

4. Dependency Theory • No same path to development as Western nations had (little competition among the earliest industrialized nations but the developing countries face tremendous competition now) • Western influence over the developing world is not beneficial (colonial powers only focused on cheap food and raw materials, and dumping good to their markets). • Underdevelopment is the result of foreign domination and exploitation. • The creation of political and economic dependence on West. • Western powers maintain a political system in the developing world that benefits the powerful few at the expense of the many. • Against the West, some favor nationalization, state investment, and trade protectionism. • Given the role of local elites in maintaining dependency, some believe that radical revolutions are the solution.

5. Welfare State • The product of the interplay between political equality (democracy) and economic inequality (capitalism). • State provides free education and minimal protection against extreme poverty. • In an advanced welfare state, there is a shift in the balance of power in favor of the working class and social democracy. • In a developed welfare state, the more the mass of the population is organized as wage-earners the higher the quality (universalism, solidarity, redistribution) of the welfare arrangements tended to be and higher the extent of equality. • In an advanced welfare state, some important industries are nationalized, government provides the universal coverage of healthcare, imposes laws to guarantee job security. • Some welfare states more favor the middle classes than the effort for income distribution (universalistic and generous welfare programs associated with successful social democratic politics)

6. The Effects of Welfare States • Equality and Redistribution • Social policies structure, cause, reproduce, reinforce, or moderate social inequality caused by status or occupational groups, social classes, gender, and ethnicity. • Income redistribution is a matter not simply of social justice but also of macro-economic efficiency (Keynesianism—maximize economic performance and the prevention of mass unemployment). • Universalism vs Targeting • Social democratic model  a universal system; the liberal regimes  a targeting system (social policies are designed exclusively for those who need it most). • Universalism produces the most pronounced effects in reducing poverty while the targeting welfare state regimes, especially the US, have the highest levels of poverty and inequality.