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Exam Review - Development&Underdevelopment.docx
Exam Review - Development&Underdevelopment.docx

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University of Guelph
Political Science
POLS 2080
Adam Sneyd

1 Exam Review Week One – Meaning, Measurement and Morality In International Development • Textbook chapter is vital What development is: • First time the issue of development came up – Truman’s address o Truman suggested several criteria for measuring development: o On the side of underdevelopment, he mentioned:  Inadequate food, disease, primitive economic life, and poverty o On the side of development, he mentioned:  Scientific advancement, industrial progress, skill, and technical knowledge o When he mentioned imperialism he was referring to:  The large numbers of countries inAfrica andAsia still under political rule by European powers  The countries ofAsia and LatinAmerica that had emerged from European colonial rule • Labels o Underdeveloped, developing, backwards, newly industrialized, third world, global south – know definitions  Developing (LDC – less developed country) – lower living standards, non-industrialized, low on the HDI compared to other countries; countries in transition from traditional lifestyles  Underdevelopment – resources in a state not used to their fullest potential, resulting in lower local or regional development  Backwards – underdeveloped, unadvanced  Newly Industrialized countries (NIC) – countries whose economies have not yet reached developed country status, but have outpaced their developing counterparts; economic growth and increasing industrialization are common factors; new term used to describe “underdeveloped” or “third world” countries, referred to as an “emerging market”; determined by 4 criteria: • Manufactured goods contributing to 30% of GDP • Manufactured goods as 50% of exports • Ashift in employment from agriculture to industry • Per capita income of $2000  Third world – arose during the Cold War to define countries that remained non-aligned with NATO (The US and Western Europe) or the Communist Bloc (SU, China); core countries dominate periphery ones  Fourth world – poorest of the poor; failed states; i.e.Aboriginal people societies 2  Global south – Nations ofAfrica, Central and LatinAmerica, and most ofAsia • Measures – o GNP GDP etc. o GDP – Gross National Income o HDI – The Human Development Index  Acomposite measure of three equally weighted factors: a long and healthy life, knowledge, and standard of living  Life expectancy, education, and income o PPP – Purchasing Power Parity o Useful for comparing levels of development; measures improvement and deterioration in levels of development o Developing countries – volatile growth rates o Developed countries – stable growth rates o Growth in GDP – caused by: o Increased productivity in agriculture o Increased natural resource extraction o Increased industrialization • Weaknesses and strengths of measuring – o GDP is a strength as being able to compare but at the same time it only gives you an average number o Growth doesn’t explain everything about poverty, nor does it reduce it o We must rely on the government to provide accurate information • How do we define poverty? – o World Bank definition, poverty is a multi dimensional issue, unfreedom that limits ability for individuals to increase their life, Human Development Index definition • Issues of morality and ethics in development Week Two – Studying Politics in the Developing WorldAnalyticalApproaches Chapter 3 – theories of development Modernization and Dependency Modernization Theory - Focused on local or national obstacles to modernization while ignoring the history of colonialism and imperialism - Changed focus from economics to modernization of traditional societies o Supplemented economics with sociological and political theorization in order to understand preconditions and obstacles for development - Assumed transition from traditional to modern society was inevitable, and that the end point of the transition is democracy - Rostow – 5 Stages of Economic Growth: 1. Traditional society – low levels of technology 2. Pre-conditions for takeoff – creation of a national state, trade expansion, and 3 increases in investments 3. Takeoff – higher productivity in industry and agriculture than population growth 4. Drive to maturity – greater technological development and integration into the world economy 5. High mass consumption society – higher incomes and consumption beyond basic needs Dependency Theory - Originated in LatinAmerica – 1960’s - Claims lack of development is due to neo-colonialism (‘informal imperialism’) - Focus on ‘capitalist world system’ rather than on single countries o Argues that, rather than focusing on underdevelopment as an ‘original stage’, attention must be paid to a single and integrated historical process which produced different outcomes for different parts of the world system o Says its impossible for traditional societies to catch up to modern ones – rejects the use of “traditional” and “modern” - Focus on “core” and “periphery” - Raul Prebisch – the Economic Commission for Latin America o There was a core and a periphery, and by continuing to encourage trade between the two, inequalities would continue to grow  When trade between the “core” and the “periphery” LatinAmerica countries was disrupted during the World Wars, the LatinAmerican countries diversified their economies and industrialized - Paul Baran o Underdevelopment – the product of capitalism o Surplus from underdeveloped countries is transferred to developed countries o Capitalism and imperialism go hand in hand o Socialism is needed to end capitalism and imperialism - Development Economics o The first theory of development that followed WWII o Mainly marked by Keynesianism  Saw capital crises as products of cyclical deficits of demand  Acceleration of growth through foreign capital and macroeconomic policies  Increasing the level of state spending and credit at the beginning of the downswing to keep investment consistent and to even out any decline that may occur  The larger role of the state to provide social services for citizens and the ownership of key industries • Making sure the state is investing money – what we had emerging from world war II – 1950s o State is doing everything with development 4 • Idea of external force having to invest in the economy to produce growth o Takes outside force to stimulate development • Critique of Modernization thinking which emerged into dependency theory o Emerged in LatinAmerica o It was a critique of the basic principles of what was wrong with modernization theory • Third world has been dominated and exploited by the West o The world system has created poverty where it is constructed in a way where wealth flows to certain countries and away from others Neoliberalism - 1980s neoliberalism becomes dominant ideology o Contested development strategies and goals o Opposed state intervention to regulate markets  State taking a backseat – free hand of the market o Pushed for market-friendly policies o Caused massive unemployment and growing inequality and poverty in developed countries o Caused even worse effects in developing countries:  Used the state to re-engineer economies in favour of private capital  Favored foreign over domestic capital  Favored financial capital over productive capital  Attacked Third World countries’ industrialization efforts  Made debt repayment harder by lowering exports’ prices  Caused massive transfer of capital from the Third World to the First World  Blamed Third World governments for the ‘lost decade’ of development  Caused ‘the end’ of development as originally conceived • Arguments that industrialization was NOT the future for the Third world • There was instead a belief that they should stay where they have a comparative advantage, i.e. agriculture, because they would do well there o State should stop regulating the economy and let economics deal with itself – politics and economics are two separate spheres • Washington consensus – John Williamson – main principles of neoliberalism • Welfare state retrenchment • Trade liberalization o The removal or reduction of restrictions/barriers on the free exchange of goods between nations o Includes the removal/reduction of tariffs 5 o Promoting “free trade” – lowers costs, increases efficiency, economic growth • Economic liberalization o Fewer government regulations and restrictions in the economy, in exchange for greater participation of private entities – the removal of controls to encourage economic development • Developmental state o The state needs to once again take a strong role in development o State taking very specific measures to intervene in the economy to produce the states vision of how it wanted development to happen o It came full circle Theory/Theme Emergence Thinkers Discipline The Problem The Solution Development 1950s Lewis, Keynesian Low-level Injection of capital Economics Rosenstei Economics equilibrium and management to n-Roden put economy on a growth path Modernization Late 1950s Rostow, Weberian/Parson Traditional Modernization Theory Shils, ian Sociology society through diffusion of Pye, modern values and Almond, institutions Huntingto n Dependency 1960s Cardoso, Prebisch-Singer Dependency Delinking, fully or Theory Frank, thesis, Latin within a world partially, or Wallerstei American capitalist socialism n, Amin approach system Marxism 1970s Brenner, Marxist theory Articulation of Development of Warren of modes of modes of capitalist relations of production production production/socialism Neoliberalism 1970s Bauer, Neo-classical State Free markets Balassa, thought intervention Kreuger, Lal Developmental 1970s Amsden, Listian neo- Free markets State the States Haggard, mercantilist management of the Chang, political economy to increase Reinert economy productivity, equality, and technological upgrading Week Three – Colonialism, Neo Colonialism and Post Colonial Development 6 • Difference between colonialism and imperialism o Colonialism  The control or governing influence of a nation over a dependent country, territory, or people o Imperialism  The policy of extending the rule or authority of an empir
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