Transcript Lecture 3 - DCU Moodle 2011

MA in International Relations 2009-10
Development: Theory and Practice (LG540)
Lecture 3:
Formative Theories:
Modernisation and
Dependency
Dr. Barry Cannon,
School of Law and Government,
[email protected]
Introduction
• What are the main tenets of modernisation
theory?
• What has been the impact of modernisation
theory?
• What are the main tenets of dependency theory?
• What was the impact of dependency theory?
• What followed these two main currents in
development theory?
What are the main tenets of modernisation theory:
Sociological, Economic, Psychological, Political?
What are the main tenets
modernisation theory: influences?
What are the main tenets
modernisation theory: influences?
•
Auguste Compte (1798-1857)
– Positivism: that scientific principles can be applied to the social to
improve society
•
Herbert Spencer (1820-1903)
– Society evolves, become better and more rational
•
Emile Durkheim: (1858-1917)
– traditional versus modern
•
Max Weber (1864-1920)
– role of rationality in emergence of capitalism:
•
Calvinists of Geneva accumulated surplus and re-invested it - Capitalism
– contrast with static life of traditional societies governed by customs
What are the main tenets
modernisation theory: influences?
• Development seen as a transition from
traditional to modern
• Modernisation theory
– positive, rational, progressive
– view of social change as evolutionary
What are the main tenets of
modernisation theory? Four pillars
Sociology: Talcott Parsons:
•
structural functionalism:
–
•
Societal structures which lose
function will wither away –
biological, evolutionary metaphor
for society
evolutionary universals:
–
Society evolves through five
stages from primitive to modern,
judged through differentiation of
institutions.
What are the main tenets of
modernisation theory?
Economics: Walt Rostow
• Economy goes through five stages to achieve
“take-off” and become developed:
– LA, Asia, Middle East and Africa at stages two and
three
What are the main tenets of
modernisation theory?
Psychology: David
McClelland:
• achievement motivation
– Importance of domestic
entrepreneurs for
successful economy and
society
– People need to be
motivated by achievement
– need to inculcate in
children from a young age
What are the main tenets of
modernisation theory?
Politics: S.M. Lipset:
• Believed there is a
correlation between
democracy and
economic
development
What has been the impact of
modernisation theory?
• Provided rationale for development policies:
follow ways of West
• Not politically neutral: links with US policies and
worldview –
– All main thinkers were US and main institutions
(World Bank) based in US
• Real world not bearing out theories:
– As colonialism ended and Cold War developed newly
independent countries took own roads to
development
• These real-world challenges led to emergence
of dependency theory
What are the main tenets of
dependency theory?
What are the main tenets of dependency theory?
A critique of capitalism from the ‘periphery’
• ‘the first genuine Third World development school’
(Cristobal Kay)
• Raul Prebisch/CEPAL, 1950s
– challenged the neo-classical law of comparative
advantage, that each country has a particular
advantage in production of specific goods;
– formulated the ‘law of unequal development’:
• ‘peripheral’ countries rely on raw materials to export
• Raw materials command lower prices set in the core
countries;
• Primary goods transformed into manufactured goods in
core countries which accrue higher added value and
are exported to the periphery;
• Periphery cannot compete and so cannot develop.
What are the main tenets of
dependency theory?
Paul Baran:
• Underdevelopment as product of capitalism;
• Economic surplus (profits):
– drained away by imperialist countries
– squandered in luxury consumption by local
ruling class;
• Analysis based on class structures and
economic processes of ‘underdeveloped’
countries;
• First theorist to conceive of capitalism as a
system in which some countries exploit others
What are the main tenets of
dependency theory?
Andre Gunder Frank
• specified a chain-like relationship of exploitation reaching
from metropolitan centres (developed countries) to
developing countries in Third World;
• he called this the ‘development of underdevelopment’;
• argued there was a need to withdraw from system and
build a socialist economy
What are the main tenets of
dependency theory?
Fernando Henrique Cardoso
• rose to become President of
Brazil: 1994-2002
• foreign capital leads to
expansion of productive forces
but also increases poverty and
marginalisation
• calls the result ‘associated
dependent development’:
– Development dependent on west
• identifies ways it can be
challenged through local class
struggle
What are the main tenets of
dependency theory?
Immanuel Wallerstein
• distinctive unit of analysis as the
‘world system’, rather than individual
states
– takes long-term view of its
development
• takes core/periphery division from
Frank but adds semi-periphery
• seeks an ‘egalitarian democratic
world’ through world-wide class
movement
What was the impact of
dependency theory?
•
•
•
•
Emergence of radical regimes:
– African socialism
– Military socialism
– Other progressive governments, e.g. Manley in Jamaica
Import substitution industrialisation (ISI): Latin America
New International Economic Order (1970/80s): aimed at redressing global
imbalances:
– Stabilise and guarantee prices for TW commodity exports
– Give better access for TW goods to developed country markets
– Provide Debt relief
– Facilitate technology transfer
Eruption of the poor:
– conscientización: Bottom up educational ideas of Paulo Freire
– liberation theology: Gutierrez, Boff: option for the poor
– grassroots movements
What was the impact of
dependency theory?
Critique
• Critical assessment:
– external causes: focus on links to world economy to exclusion of
internal factors
• external causes of underdevelopment given precedence over
internal causes
• neglect of how local entrepreneurs, state, landowners act –
emphasis on structures not agency;
– brings politics in – development not just ‘technical’:
• emphasis on class struggle to change situation of dependency
– empowers national and civil society:
• not elitist or focused on copying West
– few practical policy prescriptions
– naïve view that delinking of national economies is possible
– undervalues benefits of Foreign Direct Investment (FDI)
What followed these two main currents
in development theory?
Rise of neo-liberalism in 1980s:
new expression of modernisation
New orthodoxy of the 1980s:
– Reaganism, Thatcherism
– Structural Adjustment Programmes of World Bank
• free market economics:
– liberalise, open to world economy
– export, FDI key to economic growth
– slim down the state: privatise state sector
• return to key tenets of modernisation:
– development will happen through Western advice, investment –
the return of the ‘technical’
– renewed emphasis on business values
– link with liberal democracy seen as crucial
• structural and unequal nature of world economic system forgotten
Conclusions
•
Modernisation theory roots:
– in ’traditional/ ‘modern’/’ dichotomy as set out in early social science;
– Society can progress towards the ‘modern’ through the application of scientific
rationality.
•
Modernisation theory tenets:
–
–
–
–
•
•
•
•
•
Social evolution from primitive to modern;
Economic evolution through stages;
Achievement motivated;
Democratic.
Western/US based viewpoints – challenged by dependency theory;
Dependency theory saw development as subject to world structures based
on capitalist, neocolonialist patterns of domination;
Formed basis for challenges to modernisation theory’s assumptions, with
countries in South adopting heterodox routes to development;
Too inward on economic level but laid ground for socially based challenges
to modernisation paradigm and to neoliberalism;
Was superseded by neoliberalism in 1980s which became the dominant
development paradigm.