Modernisation and Dependency Structure of the Lecture
Section One: Brief Historical
Introduction
Section Two: Modernisation Theory
Section Three: Dependency Theory
Section our: !apitalist Structuralism
Historical Introduction
or ideas of development economics or
development theory to ma"e sense it necessary to reco#nise difference $etween developin# and developed societies
In many respects $oth Mar%ists and
li$erals did not reco#ni&e differences in !'(th and early !)*th
or Mar% Imperialism was a$out the
e%port of capital
The e%pansion of capitalism led to
uniformity
+ot that different from li$eral political
economy
,ven critics of Imperialism -Ho$son.
saw it as /developmental0
Modern Development ,conomics was
$orn in Latin 1merica in the '(2*s in response to world depression
The main early contri$utions of
Development economics come under headin# of the /structuralist0 school
The wor" of these early scholars was
3uic"ly dwarfed $y contri$utions of 4S $ased li$eral scholars in the early post5 war period who sou#ht to frame a comprehensive theory of development -Modernisation theory.
,%plicit ant5communist political a#enda
'(6*s -in wa"e of the !u$an revolution.
formation of a radical e%planation of underdevelopment Modernisation Theory
Has cultural7 political and economic
component
Different authors stress different
aspects of the ar#ument
,volutionary Theory of Human History:
Third 8orld Societies are less /evolved0 than first world societies
9olicy framewor" to fi#ht communism
9arsons overtly uses $iolo#ical
metaphor
1 num$er of levels of the analyse
irst and third world /man0 are seen as
different physiolo#ically -Oscar Lewis and David Mc!lelland .:
irst world /man0 is individualist7 rational and
#oal orientated:
Third world /man0 is collective7 irrational and
fatalist
Second7 first and third world social
systems are fundamentally different in terms of levels of evolution:
9arsons Ideas of evolutionary
/universals that all societies need to evolve $eyond a particular level0: Basic: Social stratification7 !ultural Le#itimatin# 1dvanced: Bureaucratic Or#anisation7 Money and the Mar"et !omple%7 ;eneralised 4niversalistic +orms7 and finally Democracy
9olitically modernisation theorists did
not simply promote li$eral democracy
!oncerned with pro$lems of transition
-the confluence of the modern and the underdeveloped.
+eed mechanism of inte#ration7
depersonalisation7 mediation and moderation to ma"e democracy wor"
Order -anti5communism. most important
1rmy appeared as a rational modern
institution: 1 medium term political solution
9ye7 <1rmies in the 9rocess of 9olitical
Moderni&ation=
Democracy ideal in lon#5term
,conomic Theory of Modernisation
>ostow and Sta#es -Traditional Society7
9reconditions for ta"e5off7 Ta"e off7 Drive to Maturity7 Mass !onsumption.
?alues and ideas of traditional society
are a pro$lem
1fter this rates of investment: : Invest
'*5)* per cent of national income:
Lewis: Dual ,conomy and ,%pandin#
!apitalist nucleus
Two economies in underdeveloped
state -capitalist and traditional.
The "ey to achievin# #rowth is e%pand
capitalist sector
It is necessary to channel additional
resources to the sector:
S3uee&e the peasantry
Importantly there is no serious
consideration of e%ternal constraints
!riticisms of Modernisation:
Tradition simply $ecomes a residual
characteristic -not seriously analysed.
Theory of evolution is crude
@ou cannot simply i#nore the structures
of the #lo$al economy
@ou cannot simply i#nore the structures of the
#lo$al economy
The economic solutions it proposes will
e%asperate poverty in the medium term
9olitical solutions 3uestiona$leA
Does not properly delineate $etween different
societies
1ll cultural e%planations of #rowth pose
pro$lem of hittin# the tar#et -!atholicism7 !onfucianism etc . Dependency Theory
Mar% turned on his head
ocus on e%chan#e than production
4nderdevelopment and development two
sides of the same coin
The idea of a traditional sector is nonsense
The pro$lem is how third world is inte#rated
into the #lo$al economy
ran"
4ne3ual ,%chan#e: 1ll trade is monopolist an
controlled $y the centre for its over $enefit -source of control chan#es.: Same systems wor" internally -MaBor cities e%ploit the countryside.
Lumpen$our#oise:
1ll development is simply the development of
underdevelopment
The entire economy is thorou#hly
penetrated $y #lo$al capital
1lthou#h capital may lose interest in
re#ions and periods of passive and active involution -Su$ Saharan 1frica e%ample of passive involution.
or ran" active involution has limits
The 1min variation
Different e%planation of 4ne3ual
,%chan#e: 8a#es and Dynamic 1dvanta#e
,%cepts that there is pre5capitalist
elements in the third world
However7 these elements are penetrated $y
and their development is shaped $y capitalism
Some development is possi$le $ut only
e%traverted development auto centric development is impossi$le
Thus for 1min -'(C2: )(). there no direct
correlation $etween underdevelopment and ;D9:
!riticisms of Dependency:
Hopelessly rid#ed -particularly ran".
Insensitive to variations within the Third 8orld
-corrected $y !ardoso.
De#rees of dependency: It is not Blac" and 8hite
Belittles the real achievements of the third world
-development of underdevelopment or e%traverted development.
8hat is e3ual e%chan#eA
,conomic Theory of Modernisation
Lewis: Dual ,conomy and ,%pandin#
!apitalist nucleus
Two economies in underdeveloped
state -capitalist and traditional.
The "ey to achievin# #rowth is e%pand
capitalist sector
It is necessary to channel additional
resources to the sector:
S3uee&e the peasantry
Importantly there is no serious
consideration of e%ternal constraints !apitalist Structuralism
8e deal with this last $ecause it
represents a /middle #round0 understandin# of third world states interactions with the world economy -urtado.:
It primarily theory devised $y
economists and is not necessarily a comprehensive theory of development
Some parallels with Lewis $ut differences
More sensitivity to e%ternal -fact you are
developin# in relation to the developed.
Terms of Trade
,mphasis on the domestic mar"et and third
world common mar"ets
9rimary focus on $alance of payments rather
than savin#s constraint
9olicy Instruments:
!apitalist plannin#
Trade $arriers
Moderate 8a#e Increases -e%pand
mar"ets and drive productivity.
Ta% the >ich not the peasants -the rich
have a $ad pattern of consumption. !onclusion Duestions for @ou: 8hat do these two approaches a#ree uponA 8hat can $e salva#edA !lass ,%ercise:
,lection ever
There is a election in a middle income state
-say Bra&il.:
Divided into 2 #roups -one representin#
modernisation7 one dependency7 one capitalist structuralism.: 9ut forward a manifesto with main policies -and rational for these policies.: +ominate a candidate who #ave a $rief election address: