Topic 2

DEVELOPMENT AND THE VARIOUS PERSPECTIVE OF CHANGE

Definitions

Theories

DEFINITIONS OF DEVELOPMENT

• Important to first distinguish between:

Static• Development as a state or

condition

Dynamic• Development as a process

or course of change

KUALA LUMPUR

Native American People

The word “development” in different senses:

• Psychologists – Development of intelligence• Mathematicians – Development of equation• Photographers – Development of a film

(1) Todaro’s Definition of Development

“Development is not purely an economic phenomenon but rather a multi-dimensional

process involving reorganization and reorientation of entire economic AND social

system.”

Michael P. Todaro

Todaro’s 3 Objectives of Development

1. Raising peoples’ living levels, i.e. incomes and consumption, levels of food, medical services, education through relevant growth processes.

THEN

NOW

2. Creating conditions conducive to the growth of peoples’ self-esteem through the

establishment of social, political and economic systems and institutions which promote human

dignity and respect.

VIETNAM WAR ( BETWEEN 1962 & 1971)

VIETNAM TODAY AFTER THE WAR

3. Increasing peoples’ freedom to choose by enlarging the range of their choice variables, e.g.

varieties of goods and services.

(2) Alternative Interpretations of Development

• Development as Modernization

– emphasizes process of social change which is required to produce economic advancement; examines changes in social, psychological and political processes;

– How to develop wealth oriented behavior and values in individuals; profit seeking rather than subsistence and self sufficiency

– Shift from commodity to human approach with investment in education and skill training

• Development as Distributive Justice

– view development as improving basic needs– Interest in social justice which has raised three issues:

1. Nature of goods and services provided by governments

2. Matter of access of these public goods to different social classes

3. How burden of development can be shared among these classes

(3) Marxist’s View of Development

• Emphasizes Mode of Production - elements and activities necessary to produce and reproduce real, material life.

• Capitalist (market economy) mode depends on wage labor whose labor power produces a surplus which is accumulated and appropriated by the employer-result is often class conflict in capitalist societies.

Marxism is a worldview and method of societal analysis that focuses on class relations and societal conflict, that uses a materialist interpretation of historical

development, and a dialectical view of social transformation. Marxist methodology uses economic and sociopolitical inquiry and applies that to the

analysis and critique of the development of capitalism and the role of class struggle in systemic economic change.

Founder: Two German Philosophers - Karl Marx and Friedrich Engels

RECAP – Development Views

• Todaro

– Increase quality of life– Provide conducive conditions for promoting

human dignity and respect– Increase people’s freedom of choice

• Alternative Views– Development as modernization• Emphasize on social change• Develop wealth oriented behaviors and values• Shift from commodity to human skills

– Development as distribution of justice• Improving basic needs and social justice

• Marxist’s View– Development as a result of capitalist activities.

Sustainable Development

?

THEORIES OF DEVELOPMENT

Modernization Theory

• This theory suggests that economic dimension alone is insufficient and adds theories on institutional and social change.

• Incorporates non-economic elements such as social practices, beliefs, values and customs.

• Diffusion and speed of change is critical as is removal of various cultural and social barriers.

• Backward internal structures-rather than external factors-cause underdevelopment.

Summary• This theory focused on deficiencies in the poorer countries and speculated about

ways to overcome these deficiencies. • It viewed traditional society as a series of negative (stagnant and unchanging, not

innovative, not profit-making, not progressing, not growing).• This theory argue that science and entrepreneurship grew in Western Europe and

the engine of this economic growth was capitalism.• In Modernization Theory, ‘development’ meant economic growth and

industrialization.• Many underdeveloped/developing countries embarked on varying projects of

national development (infrastructures, highways, dams; social changes such as getting rid of traditional beliefs and practices etc) to catch up with the West.

• Choice of development made by the leaders of the countries.• Development standards almost entirely set by West-centric institutions (eg.

Education system, law system, political system)• Development means the process of Westernisation whereas the way they had

transformed and ‘developed’ became the blueprint for the rest of the world.

Dependency Theory• This theory opposed modernization theory (critique).

• The theory emerged first in Latin America, amongst social scientist such as Raul Prebisch (Argentinian Economist).

• This theory not homogenous – but the essence is:

“The origins of persistent global poverty cannot be understood without reference to the entire international economic system. Underdevelopment

is not a condition: it is an active process of impoverishment linked to development. That is some parts of the world are underdeveloped because others are developed. They are not separate processes but two aspects of

the same process.”

• In other words:1st Argument:– economic growth in advanced countries created

Third World poverty in its wake: not simply that the Third World is poor in comparison with the industrialized world: rather that it is poor because development of the industrial system in Western Europe and North America changed and impoverished many societies of Asia, Africa and Latin America, through colonialism, imperialism and extractive terms of trade.

Second Wife First Wife

• 2nd Argument:– Dependency argues that before the era of modern

economic growth (until about 500 years ago), the world’s major regions were not densely connected to each other (though extensive trade networks existed).

– When capitalism began to spread, the ceaseless search for profit began: through the production of agricultural goods in colonies or other lands and Western Europe’s ability to drive unequal bargains.

– This fundamentally changed the social structures of the Third World.

– Some say the exploitation of various regions for their raw materials and labor impoverished them and made them depend on the West.

– Others point out that in fact it is the way around: that the West has been dependent on the Third World though history in order to be able to grow and prosper.

– So, poverty in the Third World is not ‘traditional’ or accidential.

– It is a necessary companion to the richness of the developed world.

– The expansion of the industrial world deformed the rest of the world.

• Historian Eric Williams, for example, argues that the slave trade between Africa and the Caribbean islands was responsible for the emergence of a commercial middle class in Britain and eventually for Britain’s industrial revolution (between 1770-1850).

• Slaves were taken from Africa to the Caribbean; their unpaid and coerced labor produced such profitable commodities as sugar or cotton, which were taken to Europe for huge profits.

• This provide the conditions for “take-off” for Britains’s industrial revolution.

• Similarly, in the late 18th century, Haiti, now the poorest country in the northern hemisphere, produces one-half of all the sugar and coffee consumed in Europe and the Americas, as well as substantial amounts of indigo and cotton.

• The approximately 500,000 slaves working on the colony’s 8000 odd plantations generated two-fifths of France’s overseas trade.

• West Africa societies were uprooted by centuries of the slave trade: in the Caribbean the plantation system (set up to meet the needs of the colonists) met no local needs and impoverished workers.

• Mines in the Third World produced bauxite, tin, iron and other metals and minerals for the industries of the West.

• All of this depended on cheap indentured or slave labor.

• Many of the regions of the world were left with skewed, impoverished economies and devastated populations while the now-developed countries gained prosperity.

MALAY TIN MINING, 1930S

• These examples show the dependency approach:

“the actual creation of underdevelopment at the cost of

development.”

Key Arguments (Versus)

Modernization Theory

• Sees capitalism as a creative force, causing growth and progress.

• Sees rich countries as helpers of poor countries.

Dependency Theory

• Sees international capitalism as the ruin of the Third World.

• Sees rich countries as the main obstacle to the well-being of the poorer countries.

Some Common ‘Theories”

• Old view that absence of development caused by certain physical environments, particular cultural traditions and value systems-environmental and cultural determinism.

• Lack of natural resources certainly impediment to development but not impossible- example of Japan.

• Why has Japan succeeded?

Reasons for Japanese Success:

• Strong cooperation between government and business.

• Able to adapt to spatial-physical situation and acquire a maritime prowess.

• Early development (Meiji restoration) of transport and banking systems.

• Highly literate population.

• Niche development- technology driven

Underdevelopment

In economics, underdevelopment is when resources are not used to their full socio-

economic potential, with the result that local or regional development is slower in most cases

than it should be.

What Causes Underdevelopment?

• Very easy to focus on characteristics of development.

• For example we know that underdevelopment is usually characterized by: low per capita incomes, low literacy and educational attainment, lack of basic services- water and power.

• But how do we EXPLAIN underdevelopment?

Other Common Explanations of Underdevelopment

• Instability and other adverse internal situations- political factors.

• Some truth to this as extended periods of turbulence are not conducive to development- central African nations with tribal rivalries and ethnic cleansing.

• Poor physical environment- lack of rainfall, poor soils also may pose barriers to development.

• Underdevelopment must be seen as a product of an array of complex and continuously changing interactions between:

1. Past and Present2. Natural and Human Environments3. External and Internal Conditions

• Multitude of obstacles to development vary with place and time.

• Critical to remember that the above theoretical ideas aid us in asking pertinent questions