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DEVELOPMENTAL THEORIES - Coggle Diagram

- - - - I by I (Industrialisation by invitation):
        
        received most attention because of Lewis's (1950) foundations of modernisation theory: juxtaposition of a backward traditional sector with an advanced modern sector meant that an ‘unlimited supply of labour’ existed for development; industry can expand rapidly if industrialisation is financed by foreign capital leading to 'industrialisation by invitation' policy
        
        once the process started to move, it would develop its own self-sustaining momentum
    - - a very simplistic and eurocentric - primarily focuses on the experiences of Western countries and assumes there will be a similar path of development
      - limited relevance in today's globalised world - where economic development is influenced by a wide range of factors - Rostow's linear model may not adequately account for these complex dynamics
      - Rostow's theory primarily focuses on economic growth and industrialisation, often neglecting social development indicators such as education, healthcare and social equity - the narrow focus may lead to imbalances and inequalities in development outcomes
      - Rostow's theory downplays the role of structural inequalities, historical legacies and external factors such as colonialism and imperialism in shaping the development trajectories of countries - tends to overlook unequal distribution of resources and power in the global economy
    - - clear development path - linear path for countries to follow - structured framework for understanding the stages of development and transitiins between them
      - offers a sense of optimism by suggesting that all countires have the potential to achieve economic growth and development
      - Rostow's theory provides policymakers with a roadmap for designing development strategies and poliices - by identify the stages of development, policy makers can tailor interventions to address specific challenges and capatialise on opportunites at each stage
      - theory takes historical context into account by acknowledging the experiences of Western countries in their paths to industrialisation. This historical perspective can offer valuable for understanding the challenges and opportunites faced by developing countries
- - - - failed to see complexities in "backwards" / undeveloped societies
      - belief in Western rationality, science and technology
      - justified 'top-down' interventions
      - deeply eurocentric
      - problematic by labelling countries and saying thats what development looks like
      - colonial connotations to those kinds of labels that is historical and geographical
    - - exact same advantages of stages of economic development
- - - - Andre Gunder Frank (1971) argues that the developed West has ‘underdeveloped’ developing nations effectively by relegating them to a state of dependency
        
        Frank suggested the global capitalist system we know today developed in the 16th century
        
        strong graphical tie-in with the mercantile and plantopolis model
        
        development and underdevelopment opposite sides of same coin, both are the necessary outcome and manifestation of the contradictions of the capitalist system of development
        
        Thesis: condition of developing countries is not the outcome of misfortune, chance, climatic conditions etc, but rather a reflection of the manner of their incorporation into the global capitalist system
        
        so-called underdevelopment the direct outcome and reciprocal of development elsewhere
        
        The only real alternative for such nations: weaken the grip of the global system by means of trade barriers, controls on transnational corporations and the formation of regional trading areas, along with the encouragement of local or indigenous production and development
        
        dependency theory represents a holistic view because it describes a chain of dependent relations which has grown since the establishment of capitalism as the dominant world system, so its expansion is regarded as coterminous with colonialism and underdevelopment
        
        chain of exploitative relations witnesses the extraction of surplus-value via an unequal exchange, extending from the peasant, through the market town, regional centre, national capital, to the international metropole; terms of trade have always worked in favour of the next higher level in the chain, so that social surplus value becomes progressively concentrated (Castells, 1977; Harvey, 1973)
        
        Frank specifically cited the instances of north-east Brazil and the West Indies as regions of close contact with the core, but where processes of internal transformation had been rendered impossible due to such close contact
        
        Frank presents Brazil as clearest case of national and regional underdevelopment, argued that the expansion of capitalism beginning in the 16th century incorporated urban cores and their extensive hinterlands into the global economy as exporting nodes. Cities such as Rio de Janeiro, Sã o Paulo and Paraná figured most prominently in this expansion. Frank (1967) argued that this process witnessed the apparent development of these nodes, but in the long run led to the underdevelopment of the wider region.
        
        DISADVANTAGES
        
        disillusionment with failure of modernisation approach to deliever any development benefits (1970s and 80s)
        
        some parts of the world getting richer, meaning other parts had to get poorer
        
        capitalism was extracting raw materials and surplus from different parts of the world
        
        a focus on the core countries (metropole) of the world and discussion about those countries that are edges of the system or on the periphery of it
        
        development in this was is very extractive and destructive - abuse of environments and ecosystems
        
        economistic - seeing all as the outcome of a form of economic determinism, conforming with what Armstrong and McGee (1985: 38-9) have described as the 'impersonal, even mechanical analysis of structuralism'
        
        theory only appears to deal with class structure and other factors internal to a given nation insofar as they are the outcome of the fundamental economic processes described
        
        suggests that countries can only advance their lots by delinking from the global economy, whereas the capitalist world system is busily becoming more global and interdependent
        
        largely been out of fashion in the First World War since the 1980s (Preston, 1996)
        
        Goldethorpe (1975) suggests that some nations have benefitted from colonialism - such as India have developed in terms of transportation systems and communication networks, compared to a country like Ethiopia, which was never colonised and is much less developed
        
        Is Dependency Theory relevant in the 21st century? (Olusola Samuel Oyetunde)
        
        While the modernisation theory assumes a unilinear and progressive development of societies by holding industrialisation as a prerequisite for development (Regmi, 2018), the trickle-down theory contends that rapid economic growth automatically reduces inequality as wealth trickles down from the rich to the poor (Arndt, 1983)
        
        dependency theory argues that development is neither unidirectional nor economic growth in developed countries
        
        underdevelopment results from obstacles created by 'centre nations' through the intergration of 'peripheries' into the world capitalist system, leading to the economic reliance of the periphery on centre nations
        
        the theory still reamins relevant today in explaining economic and power relations between states in the twenty-first century globalised economy
        
        The manifestation of the unequal and exploitative relationships between the Global North and Global South countries can be seen in many spheres, including economic, political, military, and ideology (Galtung, 1971)
        
        example: the role of foreign aid by the International Monetary Fund in perpetuating the dependence of Global South countries.
        
        limits the decision-making capability of aid recipient countries
        
        this has led to the inability of the global south countries to take ownership of their national development schemes
        
        resultant effect is economic and political dependencies, which has further widened the developmental gap between the developed industrialised countries and the third world countries.
        
        Dependency theory was developed as a framework for understanding the reasons for the divergence in the development level between wealthier and poorer nations
        
        First used to explain the underdevelopment of Latin America
        
        Theory was used to expalin other underdeveloped countries like Africa (Rodney, 1972:Amin, 1974) and Asia (Ohno, 1998)
        
        The main argument of the dependency theory is that the incorporation of the 'satellites' into the world capitalist system dominated and controlled by the 'metropolis' has results in an unbalanced relationship that keeps the satellite countries dependent on the economies of the metropolis
        
        CENTRAL ASSUMPTIONS OF THE THEORY
        
        Underdevelopment - different from undevelopment.
        
        the world being polarised into two: the highly industrialised wealthy core nations and the less industrialised poor peripheries
        
        Periphery countries are poor because they are forcefully integrated into the international division of labour where they function as producers and suppliers of raw materials or repositories of cheap labour
        
        resource diversion is maintained through active collaboration of local elites and dominant states who share common interests (Namkoong, 1999)
        
        Critiques centre on its emphasis on external factors as causes of....
        
        Kvangraven (2021) argues that most criticisms of the dependency theory are based on a superficial, in correct and incomplete understanding of the theory's core assumptions
        
        underdevelopment (Sanchez, 2003)
        
        ecnomoic reductionism (Grosfoguel, 2000)
        
        tautology and lack of precision (Lall, 1975)
        
        Kvangraven mentions some critiscm such as tautology is valid in some cases, others represent minority perspectives within the dependency tradition
        
        Amsden (2003) criticised the dependency theory for suggesting the impossibility of acheiving development within the international capitialist framework and failing to account for the development of some traditional perphiery countries
        
        the rise of Hong Kong, Taiwan, South Korea and Singapores economies indicates the posssibility of attaining economic progress under the intergrated world economy (Sanchez, 2003)
        
        Kvangraven (2021) maintains that the economic transformation of these countries does not contradict the basic assumption of the depedency theory
        
        International Monetary Fund and Dependency Theory in the 21st century
        
        Initial function of the IMF was to maintain exchange rate stability by providing loans to countries experiencing temporary balance of payment crises (Ahmed, 2018)
        
        this then evolved to include structural reforms, domestic financial system stability, debt crisis management and pandemic response (Yoon, 2005)
        
        IMF is tied to the implementation of specific economic policy conditions (trade and financial liberalisation, deregulation, privatisation, currency devaluation and other market-liberalising reforms) known as structural adjustment programme
        
        aiming to facilitate the expansion of capitalism and the integration of developing countries into the world capitalist economy
        
        depednecy theory can be used to explain Nigeria's relaince on foreign aid from the IMF AS WELL AS HAITI - IMF Executive Board Approves US$105 Million Food Shock Window to Haiti. The Executive Board of the International Monetary Fund (IMF) approved today a disbursement of US$105 million to Haiti under the Food Shock Window of the Rapid Credit Facility
        
        The IMF quota formula considers each country’s Gross Domestic Product, openness, economic variability, and international reserves (Jha and Saggar, 2000)
        
        the weight of each country’s voting right reflects its quota (Mayer and Napel, 2020) - implies that decisions of the board primarily reflect the interests of economically developed countries that dominate world trade.
        
        The IMF loan conditionalities and their effects have further made the dependency theory relevant in the Twenty-First Century
        
        Besides reducing economic growth in Nigeria, the loan conditionalities infringe on the country’s national sovereignty and have restricted the Nigerian government’s capacity to manage the country’s internal economic affairs.
        
        Predetermined economic policies under the IMF packages have led to the failure of the Nigerian authority to govern its economy.
        
        the IMF fails to consider the unique causes of Nigeria’s economic challenges by imposing the Structural Adjustment Programme (SAP), which is seen as a ‘one-size-fits-all’ approach. As an aid recipient, Nigeria lacks the power to independently decide what to do with the loans received from the IMF without input from the international financial institution, as the donor’s interest remains paramount
        
        Ikejiaku (2008) argues that while developing countries demand loans to improve their economic situation, the conditions attached to the loans often worsen the situation
        
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