Announcements

1. Announcements

2. CLUE sessions for 204 start this week! • Sessions will be held every Thursday 6:30-8:00pm, Mary Gates Hall Room 248.

3. We will study 4 important theories that claim to explain development • Modernization (Lipset) • Dependency (Evans) • Statism (Gerschenkron) • Neo-liberalism (Smith) • Note change in order of reading Smith

4. Economic→ development Democracy Modernization Theory: Basic Relationship

5. Economic→ development →Democracy Modernization Theory: What’s in the black box?

6. Economic→ Modern → Democracy developmentvalues Modernization Theory: What’s in the black box?

7. Modernization Theory:Implications • Implications of a value-based understanding of development • Value diffusion as a possible substitute for economic development • Agents of diffusion therefore seen as desirable • Colonialism • “Desirable” because bearers of “modern” values

8. Human RitesAfrica's Culture War: Old Customs, New ValuesBy HOWARD W. FRENCH February 2, 1997 • ADIDOME, Ghana— Mark Wisdom is a 54-year-old Baptist preacher and a native Ghanaian. • “Mr. Wisdom's campaign against slavery -- not to mention witchcraft, demon worship and ritual sacrifice -- is emblematic of a much broader struggle taking place across Africa. Throughout much of the continent, from the ritual slavery of the Ewe to female genital mutilation to polygamy, ancient practices that strike both Westerners and many Africans as abhorrent coexist side by side with modernity, and show no sign of imminent abandonment. • The clash between modern values shaped by colonialism and contact with the West and ancestral ones is by no means unique to Africa. In China, for example, the last imperial eunuch only recently died, and in rural villages elderly women whose feet were bound as infants can still be found, relics of another time. Under the harsh interpretation of Islamic law governing Afghanistan today, criminals are often punished with amputation.”

9. Modernization Theory:Implications • Implications of a value-based understanding of development • Agents of diffusion are as desirable • Multi-national corporations (MNCs) • “Desirable” because bearers of “modern” values

10. Multinational Corporations as Diffusers of Modern Values • Motorola is investing a lot of money and time in developing its corporate culture in China and elsewhere in the world. As Glenn Gienko, Motorola's executive vice-president and director of human resources, trumpets, "Motorola's facilities in China are world-class in all aspects and demonstrate what is possible when you apply Motorola's global values of `Constant Respect for People and Uncompromising Integrity' with the talents of our Chinese associates." The human resources objectives and corporate values that underpin this corporate culture are as state-of-the-art as the high-tech machinery in Tianjin. The company is trying to create a first-class corporate workforce of Chinese workers. It wants its line personnel and managers to take initiative, exert leadership, assume responsibility, manage rapid change, and work in teams. These kinds of behaviors and the values that underpin them are typical of successful organizations in the United States and Europe. In many respects, however, they are antithetical to the values and behaviors a Chinese worker would typically learn by working in a state-owned enterprise and living in Chinese society. ”

11. A173.- Some people feel they have completely free choice and control over their lives, while other people feel that what they do has no real effect on what happens to them. Please use this scale where 1 means "none at all" and 10 means "a great deal" to indicate how much freedom of choice and control you feel you have over the way your life turns out. →

12. Dependency Theory Emerged in late 1960s – early 1970s as a critique of modernization theory: Ethnocentric Simplistic Wrong 12

13. Dependency Theorists —Modernization Theory was wrong • Take Brazil and Argentina in 1960s • 65% of population of Lat Am • 75% of region’s industrial output • Economic growth • BUT • Massive inequality • “transnational kernel” • Military coups leading to dictatorship • Brazil 1964, Argentina 1966 • Why?

14. Dependency Theory Key elements of dependency theory: • focuses on country’s position in global political economy • countries are located in either core or periphery 14

15. The “core” is comprised of earlier industrializing countries that could use industrial might to pursue imperial expansion controls capital, technology needed by periphery 15

16. Origins of “core” countries Two waves of imperial expansion First wave 1400s-1700s Second wave mid-1800s-1900s 2nd wave coincided with industrialization: 1. Countries that could industrialize successfully could exercise of domination over less developed areas. 2. Not only European industrialized states (first Britain, than France, Germany, others) but also non-European industrialized states (US, Japan) became imperial powers in the late 19th and early 20th C. Such domination took the form of colonialism and “neo-colonialism.” 16

17. Colonialism by core countries • The establishment, through military force, of a formal government administration, controlled by a conquering imperial power in a foreign territory, leading to economic, cultural, and political domination of that territory by the imperial power. 17

18. Neo-colonialism by core countries • The exercise of economic and cultural domination over a nominally sovereign state by a core power, often through the presence of multinational corporations based in the core and through the extension of bilateral military aid, without establishment of a formal colonial administration. 18

19. Motivations for colonialism and neo-colonialism by core countries new sources of raw materials in short supply in the core country new markets for products from the core country new, profitable outlets for investment capital based in the core country 19

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21. The “periphery” • is comprised of countries historically integrated into global political economy in subordinate positions--often as colonies of imperial powers 21

22. Characteristics of countries in the periphery provide raw materials, cheap labor for core concentrate on few primary commodities (commodity concentration) Example: cocoa are vulnerable to volatility of raw material prices Example: oil are often dependent on one core country (trade partner concentration) depend on core for capital, technology 22

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24. Predicted outcomes for periphery economic results in continued underdevelopment, i.e. poverty social produces inequality, conflict w/in periphery (“transnational kernel”) political reinforces authoritarian government w/in periphery 24