SOSC 1910 Mid-term Review
Define the following terms and concepts. Briefly describe its significance in the context of the course.
1. Dominant Ideology - a set of interrelated beliefs that tell us how the world works and how it ought to
work (descriptive and prescriptive). Reinscribes and reinforces the status quo and resist change.
GNP – the total domestic and foreign output claimed by residents of a country in one year.
GDP – is simply an output measure, the total final output of goods and services produced by an
Significance: GNP and GDP are the most commonly accepted methods of assessment the relative value of
each national economy. However, they tell us nothing about income distribution and local purchasing
power of the people in the given place. Therefore, these measures fail to give a full identification of the
incidence of poverty.
3. Third World
The term “Third World” came out of the non-alignment movement.
1955 – meeting in Indonesia, Nasser (Egypt), Tito (Yugoslavia), Nehru (India) made an alliance called
“Third World”. The former colonies and developing countries could support each other as a block against
the agenda of the more powerful nations. Initially “Third World” was a term of resistance, meaning that
those countries wanted to develop in their own “third” way (neither capitalistic way as in the First World,
nor socialistic way as in the Second World).
With the moderate success the alliance performed until 1970s, and after that the term “Third World” came
to be known as the third best, the countries that lack economic development.
4. The Development of Underdevelopment is what G. Frank called the situation of developing countries
being negatively affected by their ongoing relationship with the developed West.
In our course the concept of “development of underdevelopment” represents Frank’s Dependency Theory
where he argues that the third world countries have historically been in the position of producing for the
colonial and later “metropolitan” centers of the industrialized world. It is clearly stated in the article
“Theories of Underdevelopment” by Andrew Webster that according to Frank the growth of the advanced
industrial centres in the world today meant the simultaneous underdevelopment of those countries (third
world countries) whose economic surplus the West exploited.
5. IMF/ World Bank are two global financial institutions that were initially created in order to help
Europe rebuilt itself after WWII.
IMF grants short-term loans for the financing of balance of payments deficits.
The World Bank offers long-term loans for the financing of specific programs and projects.
After Europe rebuilt itself, IMF & World Bank turned their attention to helping with the development of
the “Third World”.
Significance: While IMF & World Bank claim that they are helping Third World countries to develop, we
can see by taking a closer look at the Third World countries that it is not exactly true. In the movie
“Money Lenders” we see the living conditions of people in the Third World countries and from what
those people say in their interviews it doesn’t look like they have ever been helped by anybody. Also in
the article “The World Bank and Poverty” the author comes to conclusion that the WB demonstrated little
interest in the actual condition of the very poor and needy. • The origins of poverty remained undiscussed,
• There was no attempt to define basic human needs and to measure what was necessary to satisfy
6. “There is nothing objective about objectivity”
There is nothing objective about objectivity, both the notion of objectivity and the notion of the dominant
ideology go hand in hand. When something appears objective, it has a hidden bias in it.
Significance: For example if we will take a look at the situation where some Third World countries reject
paying their debts to IMF and the World Bank, it seems quite objective to think that people in the Third
World countries are irresponsible. However, there is nothing objective about objectivity, and when we
start looking at the reasons why those countries are rejecting their debts and calling them illegitimate
(increasing the interest rate from 6-8% to 22% against the terms of the initial contract, demands on adding
the insurance premiums, and overvaluation of US currency and devaluation of Third World currencies as
the result of change in the universal currency standard from gold to the US dollar), we can see that the
Third World countries are just trying to gain some fairness.
7. Metropolitan/ Satellite
Metropolitan – 1 world, head office, city/urban centres (where companies are originated and expand from
Satellite – 3 world, regional offices, country/ rural centres (profits made by Satellites transferred to
metropolitan where the head offices are.
Significance: The Metropolitan/ Satellite relationships model was used by A.G. Frank to demonstrate that
there is a ‘chain of dependency’ running down from the highly advanced countries of the world. Frank
argued that there is a chain of metropolises and satellites that runs from the world metropolis down to the
rural merchants who are satellites of the local commercial metropolitan centre but who in their turn have
peasants as their satellites. According to Frank the Third World countries while being dependent, can only
possibly expand if the dominant metropolis expands. But such expansion is always under control of the
metropolis since any expanded surplus is automatically passed upwards out of the satellite. According to
the dependency theorists the only way to stop this exploitation and break the chain of dependency is
socialist revolution by the Third World working class which will remove the comprador elite, the weakest
link in the chain.
8. The triangle of trade
1) British ships leave for Africa loaded with weapons, clothes, ect.
2) In Africa they exchange goods for slaves
3) In Caribbean Islands they exchange slaves for Caribbean produce (especially cotton and sugar)
and return for England.
Europeans were taking this route over and over again and making profits at every stage of the triangular
• The triangular trade had a serious impact on the growth of the African population.
• The European traders had a particularly harmful affect on the existing political and economic
patterns of African Society (conflict between dominant elite and the subordinate groups)
• It made African, Caribbean and other countries highly dependent on the export of their resources
(crops and labour) in exchange for the import of manufactured goods from capitalist societies.
This showed how Africa was supporting the development of European market instead of our
traditional view of the Europeans helping Africa to develop. 9. Outward vs Inward model of development
After experiencing colonization and the pressure of the metropolitan centres, development in the Third
World was geared outward to meet the needs and demands of the industrialized centres rather than devise
and implement development to meet these countries internal needs and goals.
Some proposed that Third World countries needed to concentrate on an inward model of development.
This means they would begin to manufacture their own goods and develop skills and markets based on
their manufacturing endeavours.
Significance: The idea of ‘Outward vs Inward model of development’ came out of the dependency school
of development. They dismissed the notions of modernization theory that a lack of development could be
attributed to a deficiency of modernizing values and that exposure to advanced industrialized countries
could only be of positive benefit to the Third World. Instead they argued that third world countries have
historically been in the position of producing for the industrialized countries.
10. Export-led economy – describes economies that are structured around meeting the needs of
industrialized countries. These economies are driven by the exports of raw materials and foodstuffs with
very little manufactured goods being produced or exported.
Significance: This is one of the many dilemmas faced by third world economies. Their ability to trade
these commodities for needed manufactured goods depends on the capital they can get for these
commodities. Economies that are dependent on an export-led economy encounter problems when they
find themselves producing an increasing amount of raw materials and foodstuff to buy smaller and smaller
amounts of manufactured goods needed from abroad. Since, commodity prices keep decreasing and the
prises of manufactured goods keeps increasing, G. Frank has called this cycle produced as a result of these
export led economies as “The Development of Underdevelopment”
11. Human Centered Development
12. Difficult Knowledge is knowledge that often challenges the dominant ideology that is either difficult
for us to accept, so we reject it and its source (because it deeply challenges some of our long held beliefs)
or we accept it without subjecting that knowledge to a critical evaluation. When you are in the grips of
difficult knowledge it is important to ask yourselves: what is it about this information that is causing me to
reject it so vehemently/ or what is it about this information that I find so seductive?
Significance: we can apply the concept of difficult knowledge when we learn about the reasons for
unequal development of the 1st world anst3 world countries. As a dominant ideolord, it is easily
accepted by people who live in the 1 world countries that the reason why 3 world countries are
underdeveloped is laziness and helplessness of the population in thos