World Development

1. World Development The Theories

2. Modernisation Theory • What stages of development did we have to go through?

3. The History of Modernisation Theory • World War 2 ends… • Countries are freed from colonial rule • The Cold War begins • Modernisation is the economic theory encouraged to those aligned with the west for development

4. Walt Rostow (1960) – The evolutionary ladder

5. How does modernisation help? • Financial assistance can kick start the economies of developing countries – Stimulus packages • But…this does not come without conditions • Capitalist values must be taken on by the country and capitalist systems introduced

6. But what was wrong with the way we were? • Modernisation stresses internal blocks to development • Traditional Values • High Birth Rates • Lack of Skills • Lack of infrastructure and institutions • Lack of technology

7. Why is capitalism better? • The wider state over the community • The ability to succeed as an individual – What McClelland (1961) refers to as ‘the need for achievement’ in his The Achieving Society. • The ‘cough’ ability to transcend social barriers • Hoselite (1952) – cities are key • They are centres passing on social and cultural developments • Allow for a centralised workforce • Transport links • Inkles (1997) – Media as an agent of development

8. Does it work? • Rostow predicted China and India would develop to the stage they are at now during this timeframe • We still use development aid • But…African countries (and others) have received large amounts of development aid and have failed to develop

9. Ethnocentric • It is an ethnocentric theory – It judges other cultures by the values of western civilization • It devalues traditional values and promotes western ones

10. Other Criticisms • It assumes that every country has the natural resources for industrial expansion • The investment in the economy often benefits the rich and not the poor (although there is supposed to be a trickle down effect) • It ignores historical context • The internal ‘blocks’ to development may be because of a lack of development not the cause of it

11. Consolidation • Do you agree? • How could you describe this theory in terms of a smaller human relationship? i.e. between a parent and child, husband and wife etc • Create 5 revision cards • One summarising Modernisation theory • One for Rostow • One for Hoselite • One for Inkles • One for McCelland

12. Traditional Marxism • Agrees that capitalism is the way forward for development • Disagrees with the distribution of wealth • Beyond modernisation there is a socialist next stage • Bill Warren (1980) – Capitalism is working to develop countries it is just happening slower than expected and being hindered by some misguided policies.

13. Dependency Theory • Dependency Theory focuses on historical factors • It sees the problem as external (caused by the developed countries) rather than internal (caused by failings in the developing countries)

14. Colonialism – Mercantile Era

15. Colonialism – Direct political control and the slave trade

16. The British Empire

17. Colonialism – Neo-Colonialism • Although we have let many subject nations become independent we still retain a huge amount of political and economic control • Capitalism is based on exploitation – the west exploits the LEDCs to further its own ends • We benefit from the poverty and lack of development in third world countries • We buy off a countries elites who then exploit the population

18. Andre Gunder Frank (1969) • Studies the Latin American Economy • Concludes that the development of the first world is reliant on the underdevelopment of the third world

19. Satellites/periphery nations (Reliant third world nations) Metropolis/core (Centre in the developed world)

20. Why does this mean that modernisation theory is rubbish? • As the first world was developing it was never exploited • It ignores the historical context and continuing legacy of colonialism • For more see Potter on the next slide!

21. Potter (2000) • Developing countries policies are not internal but dictated by outside demands (by core/metropolis) • Because the country was ruled for so long they have experience of democracy • Western powers have left a legacy legitimising force to quell uprisings • The skilled workers in society were never native so when the western powers left so did the skilled workforce • Colonialism leaves behind the idea of western invincibility

22. Pre-western influence Benin Empire (in modern day Nigeria)

23. Incans

24. What do they need to do to develop? • Keep out foreign capital • Isolate and become self sufficient • Break away when the core/metropolis is weak • Avoid capitalism

25. Criticisms • It is very pessimistic with no view of real development ever being possible • It does not give a guide to realistic action • It ignores the internal factors

26. Consolidation • Do you agree? • How could you describe this theory in terms of a smaller human relationship? i.e. between a parent and child, husband and wife etc • Create 3 revision cards • 1 for dependency theory • 1 for Gunder-Frank • 1 for Potter

27. World Systems Theory • Develops from the work of Immanuel Wallerstein 1970s • Based on dependency perspective • The factors influencing development are external but not a single individual country but the system itself • But…if a country is producing a desired commodity it can move up forcing other countries down • There will always be under developed countries which are taken advantage of

28. World Systems cont. • There is a modern world system in which countries move up and down not simply core and periphery but semi-peripheral (these countries have developed and un-developed areas) • It is a dynamic system with upwards and downwards movement • Globalisation of capitalism

29. Criticisms • Still no answer to overcome the problem • Deterministic • No internal factors – corruption

30. The Theory Impasse • David Booth (1985) Old Theories are no longer adequate • Modernisation cannot explain slow progress • Dependency cannot account for rapid growth of Asian Tigers • Communism’s end shows that traditional Marxism fails • Postmodernism emerges and there is no longer a single metanarrative

31. Neo-Liberalism • The new official theory of the 1980’s • There are internal blocks – economic institutions which inhibit development • Without these being removed capitalism cannot develop

32. Neo-Liberalism cont. • Increase the importance of capitalism values and reduce the value of the state • Sell off public assets to private sector • Stop government interference in economy • Reduce state spending • Cut taxed to allow more spending • Remove blocks on imports exports to allow integration in global economy

33. How it is imposed? • Voluntary – as in the UK • Structural adjustment programs imposed by the IMF and World Bank as part of the Washington Consensus (1989)

34. Has it worked? • It appears to in China and India • Where it has not the policies have not been properly introduced • On the other hand…The Centre for Economic and Policy Research (study carried out by Weisbrot et al. 2001) – found there was less growth from 1980-2000 than there had been between 1960-1980