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Suza dds 01 development theories of development show
1. THE STATE UNIVERSITY OF ZANZIBAR
(SUZA)
DDS 0111 DEVELOPMENT STUDIES
PERSPECTIVES
THEORIES OF DEVELOPMENT
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2. What is development
• Different people have different understanding of
the term. However they all end comparing space
and time because development is a relative term.
• Is a process of economic and social
transformation which is based on complex
cultural and environmental factors and their
interactions.
• Development is a process of improved standard
of living.
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3. WHAT IS DEVELOPMENT?
• Development was a process in which
‘societies’ defined as nation states pass
through similar stages of development on the
road to an end state.
• Development is a multi-dimensional and
multi-sectoral process, involving social,
economic and political change aimed at
improving people’s lives.
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4. Human Development
• It is the process of enlarging people choices it
has about four aspect:-
• For people to lead a long and a healthy life
• For people to acquire knowledge
• For people to have access to resources needed
for a descent standard of living.
• People enjoyed self respect and guaranteed
human right.
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5. Under Development.
• US-President Truman’s ‘bold new program’
announced on January 20, 1949, defined Africa, Asia
and Latin America as ‘underdeveloped areas’ in need
of ‘development’
• Underdevelopment is the absence of modern
economic growth that characterizes Third
world countries by comparison with the
developed nations of the West.
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7. Modernisation Theory
• Has cultural, political and
economic component
• Different authors stress
different aspects of the
argument
• After WWII, the poverty
and backwardness of
some of the world
countries became
extremely conspicuous
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8. Modernisation theorists aimed to:
a) explain why poorer countries failed to evolve
into modern societies
b) Reduce the spread of communism by
presenting capitalist values as the solution to
poverty
Modernisation theory has become increasingly
influential, especially since post collapse of USSR
9. Modernization
• Modernization is an
encompassing
process of massive
social changes, that
once set in motion
tend to penetrate all
domain of social life,
from economic
activities to social
life, to political
institutions, in a self
reinforcing process.
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10. Five stages:
• WALT WHITMAN ROSTOW(1916–2003)
1) traditional society
2) preconditions for change
3) take-off
4) drive to maturity
5) mass consumption
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12. Traditional Societies
• Extended kinship
• Little spatial and social
mobility
• Primary economic
activities
• Tendency towards
autarchy of social units
• Undifferentiated political
structures with
traditional elites
• Hierarchical source of
authority
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13. Traditional Societies
• These are societies
which have pre-scientific
understandings of
gadgets
• Believe that gods or
spirits facilitate the
procurement of goods,
rather than man and his
own ingenuity.
• The norms of economic
growth are completely
absent from these
societies.
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14. Preconditions for Take-off
• The preconditions to take-off are, to Rostow,
that the society begins committing itself to
secular education, that it enables a degree of
capital mobilization, especially through the
establishment of banks and currency, that an
entrepreneurial class form, and that the
secular concept of manufacturing develops,
with only a few sectors developing at this
point. This leads to a take off in ten to fifty
years.
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15. The Take-off
• Transition from traditional to modern
economy
• The economic transitions are accompanied by
the evolution of new political and social
institutions that support industrialization.
• The growth is self-sustaining as investment
leads to increasing incomes in turn generating
more savings to finance further investment.
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16. The Take-off
• Industrialization increases with workers
switching from the agricultural sector to the
manufacturing sector.
• Growth is concentrated in a few regions of the
country and within one or two manufacturing
industries.
• The level of investment reaches over 10% of
GNP. People save money.
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17. The Drive to Maturity
• The drive to maturity refers to the need for
the economy itself to diversify. The sectors of
the economy which lead initially begin to level
off, while other sectors begin to take off. This
diversity leads to greatly reduced rates of
poverty and rising standards of living, as the
society no longer needs to sacrifice its comfort
in order to strengthen certain sectors.
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18. The Drive to Maturity
• The economy is diversifying into new areas.
Technological innovation is providing a diverse
range of investment opportunities.
• The economy is producing a wide range of
goods and services and there is less reliance
on imports.
• Urbanization increases.
• Technology is used more widely.
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19. Age of High Mass Consumption
• The age of high mass
consumption refers to
the period of
contemporary comfort
afforded many western
nations, wherein
consumers concentrate
on durable goods, and
hardly remember the
subsistence concerns of
previous stages.
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20. Age of High Mass Consumption
• in the age of high mass consumption, a society is
able to choose between concentrating on military
and security issues, on equality and welfare issues,
or on developing great luxuries for its upper class.
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21. Traditional / Modern societies
• Traditional Society –
- Family, Proximity,
Friendship
- Customs
- Barter
- Traditions
- Habit
- Inertia (need no change)
- Religion
- Man as Social Man
- Communal Property
• Modern Society –
- Anonymous relationships
- Contract
- Market exchange
- Innovation
- Novelty (being new)
- Progress
- Secular
- Individualism
- Private Property
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22. Implication of the theories
• Urbanization
• Education
• Socialization
• Industrialization
• Free trade and openness
• Property rights and law
• Deregulation
• Privatization
• Democratization
• Key component was to
change culture and
attitudes of individuals
living in traditional societies
so that they are open to
modernization and
development, rationality
and reason
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23. Major critics
• modernization theory is criticized as biased and
ethnocentric, that is, the development categories,
stages, and processes involved are all derived from
the Western experience rather than from the
developing countries. There are other paths
available to the Third World countries, and these
alternatives neither have to use democratic
institutions nor do LDCs need to reach a Western
level of development to be considered successful.
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24. Major critics
• The alleged ‘backwardness’ of ‘underdeveloped’
countries, regions and peoples, was itself a
product of the development of the core,
developed areas.
• Development and underdevelopment could not
be considered in isolation, and nor could it be
assumed that contact with ‘the West’ was a
benign process; indeed, the development of ‘the
West’ rested on the underdevelopment of ‘the
Rest’.
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25. Major critics
• modernization theory misinterprets the role
of traditional values and institutions in the
economic development, social coherence,
and political stability. It was often possible
for a Third World country to retain their own
traditional cultural attributes along with a
modern economy;
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26. Major Critics
• some radical critics even charge that
modernization theory is a political ideology
that is tended to promote the Western
values and used to justify Western
dominance and to keep the Third World in
control or “in chains” by which they could
resist communist appeals.
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27. Major Critics
• You cannot simply ignore the structures of the global
economy
• The economic solutions it proposes will exasperate
poverty in the medium term
• Political solutions questionable?
• Does not properly delineate between different
societies
• All cultural explanations of growth pose problem of
hitting the target (Catholicism, Confucianism etc )
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28. Background
• Dependency Theory developed in the late
1950s under the guidance of the Director of
the United Nations Economic Commission for
Latin America, Raul Prebisch. Prebisch and his
colleagues were troubled by the fact that
economic growth in the advanced
industrialized countries did not necessarily
lead to growth in the poorer countries.
29. Background
• Poor countries exported primary commodities
to the rich countries who then manufactured
products out of those commodities and sold
them back to the poorer countries. The "Value
Added" by manufacturing a usable product
always cost more than the primary products
used to create those products
30. What is Dependency
• An explanation of the economic development of
a state in terms of the external influences--
political, economic, and cultural--on national
development policies.
• An historical condition which shapes a certain
structure of the world economy such that it
favours some countries to the detriment of
others and limits the development possibilities
of the subordinate economics.
32. What is Dependency
• A situation in which the economy
of a certain group of countries is
conditioned by the development
and expansion of another
economy, to which their own is
subjected.
33. Common features dependency
theorists share
• Dependency characterizes the international
system as comprised of two sets of states,
variously described as dominant/dependent,
center/periphery or metropolitan/satellite
• External forces are of singular importance to the
economic activities within the dependent states.
These external forces are means by which the
advanced industrialized countries can represent
their economic interests abroad.
34. Common features dependency
theorists share
• The relations between dominant and
dependent states are dynamic because the
interactions between the two sets of states
tend to not only reinforce but also intensify
the unequal patterns.
• Dependency is a very deep-seated historical
process, rooted in the internationalization of
capitalism
35. The Central Propositions of
Dependency Theory
• 1. Underdevelopment is a condition
fundamentally different from undevelopment.
The latter term simply refers to a condition in
which resources are not being used.
• Underdevelopment refers to a situation in
which resources are being actively used, but
used in a way which benefits dominant states
and not the poorer states in which the
resources are found.
36. The Central Propositions of
Dependency Theory
• 2. The distinction between underdevelopment
and undevelopment places the poorer countries
of the world is a profoundly different historical
context.
• South is poor because it was coercively integrated
into the European economic system only as
producers of raw materials or to serve as
repositories of cheap labour, and were denied the
opportunity to market their resources in any way
that competed with dominant states.
37. The Central Propositions of
Dependency Theory
• 3. Alternative uses of resources are preferable to
the resource usage patterns imposed by
dominant states.
• 4. There exists a clear "national" economic
interest which can and should be articulated for
each country. that this national interest can only
be satisfied by addressing the needs of the poor
within a society, rather than through the
satisfaction of corporate or governmental needs.
38. The Central Propositions of
Dependency Theory
• 5. The diversion of resources over time is
maintained not only by the power of
dominant states, but also through the power
of elites in the dependent states.
• These elites are typically trained in the
dominant states and share similar values and
culture with the elites in dominant states.
hence, a dependency relationship is a
"voluntary" relationship.
39. The Policy Implications of
Dependency Analysis
• The success of the advanced industrial
economies does not serve as a model for the
currently developing economies.
• Market alone is not a sufficient distributive
mechanism. It does not allocate the rewards
of efficient production in a rational and
unbiased manner.
40. The Policy Implications of
Dependency Analysis
• Their is a very important distinction between
economic growth and economic development.
Dependency theorists clearly emphasize social
indicators far more than economic indicators
hence greater attention is paid to indices such
as life expectancy, literacy, infant mortality,
education, and the like than the GDP or trade
indices
41. The Policy Implications of
Dependency Analysis
• Dependent states, therefore, should attempt
to pursue policies of self-reliance. i.e.
endorsing a policy of controlled interactions
with the world economy: pour countries
should only endorse interactions on terms
that promise to improve the social and
economic welfare of the larger citizenry.
42. Policy difficulties
• The internal markets of the poorer countries
were not large enough to support the economies
of scale used by the richer countries to keep their
prices low.
• The political will of the poorer countries as to
whether a transformation from being primary
products producers was possible or desirable.
• The extent to which the poorer countries actually
had control of their primary products, particularly
in the area of selling those products abroad.
43. Criticism of Dependency
• See economic growth as the main component
of development
• Maintain the idea that Tradition is the main
obstacle to development
• If Western colonialism and Imperialism is the
main reason for underdevelopment in the
Third World, What aboout China, Ethopia
were colonies of western Europe and are
developed.
44. Criticism of Dependency
• Impractical ideas: If Third World Countries
totally dissociate themselves from First they
will not gain development. The relationship
between Third world and First World is not
dependent but interdependent. Globalization
• Undermines the ability of the States to charter
development: (Russia and Germany)
• Does not explain the relevance of the
Situation of the New International Division of
Labour.
45. World systems perspective
• This perspective builds on the “dependency”
approach. But it has a “world systemic” angle.
• Immanuel Wallerstein (1974): The Modern
World Economy
• Wallerstein argues that capitalism is a “world
economy.”
47. World systems perspective
• The unit of analysis for studying the world
economy is the “world” rather than individual
nation-states (contra modernization theory)
• The capitalist world economy emerged in the
16th century in western Europe in the wake of
the “discovery” of the Americas
48. World systems perspective
• The capitalist world economy consists of a
“core,” a “periphery,” and a “semiperiphery.”
• Historically, the core was western Europe,
which became industrialized by “extracting
surplus” (funneling raw materials and precious
metals) from the “periphery.”
• The semiperiphery stood in-between the core
and the periphery in terms of incomes and
levels of industrialization.
49. World systems perspective
• In this world economy, the core exploited, or
extracted surplus from the periphery in terms
of cheap labor, natural resources, raw
materials and as markets for European
manufactures.
• Example: In the 19th century, the Ottoman
Empire was an exporter of dried fruits and
nuts to Europe and was dependent on imports
of manufactures (“English cloth,” for
example). It was heavily indebted to European
countries.
50. World systems perspective
• 1) Surplus extraction from the periphery to
the core is still ongoing.
• 2) Only a few countries have entered the semi
periphery or the core (e.g. South Korea) in the
postwar period.
• Wallerstein calls this situation, “development
by invitation.”
51. World systems perspective
2) The South Korean “miracle”S. Korea was a
special case for two reasons:
a) having geo-political importance for the U.S.
and therefore a “favored” economic
relationship with it
b) having an authoritarian state which
prioritized industrialization at the expense of
workers’ rights and democracy until the
early 1990s
52. “Commodity chains”
• A commodity chain: a chain of activities from the
manufacturing to the distribution of a final product.
• Peripheral countries are usually specialized in low-
profit and labor-intensive links in international
commodity chains. Core countries are usually
specialized in high profit links of commodity chains.
• Example: the apparel (ready-to-wear clothing)
commodity chain includes, cotton growing, textile
mills, stitching of garments, design, marketing,
distribution, retailing
53. Apparel commodity chain
• Multinational companies are concentrated in
the high profit end of the apparel commodity
chains such as design, brand names, high
technology and marketing
• Companies in countries such as Turkey and
Mexico are concentrated in labor-intensive
activities such as the stitching of garments
54. Apparel commodity chain
• Example: when Levi’s manufactures jeans in
Turkey and sells them in Europe, it retains a
higher proportion of the profits because of its
world-popular brand name.
• In a nutshell, according to the world systems
perspective, the capitalist world economy is
still a system with structural inequalities
between richer and poorer countries
55. Major Critics
(1)The above discussion has shown that
both world-system and dependency
theorists, while somewhat different
from each other, share the same
methodology – “looking outward” and
attributing underdevelopment to its
external relations in the world market
and international system that are
governed by the interests of dominant
nations and of certain classes and
groups in them.
56. Major Critics
(1)However, both dependency and
world-system theorists overlook the
impact of the internal constraints of
the underdeveloped countries -- the
economic, political, social, and
cultural characteristics and structures
of these countries -- upon the
development of the underdeveloped
areas and countries.
57. Major Critics
(2) For the policy implications under this
category, breaking-up of the old system
is seen as necessary before the
establishment of “an equalitarian
world-system;” in the meanwhile, the
periphery states should cooperate to
offset the power of the core.
58. Major Critics
(2) However, this involves them in a
problematic relation with the global
economic dynamics that underlies the
change of the world-system and the
possibilities in the direction of
development at every occurrence of
upward and downward turns in the
world-economy.
59. References:
• Clark, D.A (2006)The Elga Companion to Development
studies. Elga: USA
• Deneulin,S. and Shahani, L (2009) An Introduction to
Human Development capability approach. Earthscan. NY
• Pieterse, J.N (2004) Development Theory. Vistaar: New Delh
• Rapley, John. (2002) Understaning development, theory
and practice in the third world. Lynne Rienner. London
• Simon, David. (2006) Fifty Key Thinkers in Development.
Routledge. London
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