Theories of development Chapter 4 School of modernization Theories of development main ideas Theories explaining underdevelopment Modernization Dependency The new theories 1
Theories explaining underdevelopment Why is development fast in some countries and slow in others? This is the question that the theories of development try to answer. This question affects: The political models (market or mixed economy) Sensitive historical issues (colonization) National sensitivities (national sovereignty, reign of traditions, local mentality...). Evolution of thought in the development theories Four major periods: The pioneer period (1945-1960) Simplified vision of development: Dvpt = Growth under-dvpt = delay with internal causes (school of modernization) Linear vision of dvpt. The radicalization phase (1960-1980) Failure in many countries Affirmation of the school of dependency Under dvpt = delay with external causes The period of crisis management (1975-1990) Theoretical vacuum Challenging previous theories The new theories (1990-...) Approach centered on the local actor Takes into account the situation of each country Takes into account the role of culture in creating development programs. 2
DevelopmentTheories Modernization School Dependency School New Theories Geographical Conservationist theories Competition Stages of growth Moderate theories Democracy Socio-cultural theories Poverty vicious circle Radical theories (imperialisme, unequal exchange) Post-development Development theories Modernization School According to the theories of this school, the differences between the countries of the North and those of the South are mainly related to cultural problems: Inability to implement adequate policies due to socio-cultural backwardness or unfavorable data from the natural or economic environment 3
Modernization school The solution to underdevelopment is as follows: The North (developed countries) must support the South (developing countries) in a transition to appropriate attitudes, values and institutions. Their technical assistance can help the countries of the South to reform their political and economic institutions. These reforms are commonly referred to as "modernization". Modernization school Geographical : Also called environmental or geographical determinism. Appeared in France around 1960 Explains the economic backwardness by an unfavorable natural environment. Claims that the physical environment predisposes societies and states towards particular development trajectories. 4
Modernization School Sociocultural : The evolution of social values and structures is fundamental to the economic development of a country: Religious values do little to promote the individual and social mobilization required by economic governance. Traditional values must be replaced by modern values favoring individualism and rationality in order to promote economic growth. Modernization school Stages of growth (Rostow): Economic growth is linear The delay can be filled by a catch-up policy Rostow reduces the process of economic growth to 5 stages: 5
The five stages of development Traditional Society Primitive technology Agricultural production for self-consumption Lack of social mobility Stationary demographic Transition development Appearance of the State Development of internal and external trade Creation of financial institutions Increase in school enrollment Take off Development Innovation of means of transport Increase in the rate of investment Development of economic sectors Sociocultural environment Improving the conducive standard to of growth living Increased Maturity investment in services Increased Rationalization investment of management Industrial Realization Diversity of social security Rapid technological development Remarkable rural exodus Mass consumption Moderniztion School Poverty vicious circle Underdevelopment is caused by insufficient savings: Due to weak low-income internal Demand, underdeveloped countries are unable to invest in projects capable of triggering the development process. The expresses the circular relationships that afflict both the demand and the supply side of the problem of capital formation in economically backward areas. According to this, a society or country is poor because it is poor. 6
The vicious circle of poverty Low income = Poverty Low production Low savings Low investment Synthesis of the theories of modernization Cause Definition Solution Actors A cultural problem. Traditional mentality, cultural customs resist the penetration of modernity (conception of the world, modes of organization and life, technology...) Development is the gradual and controlled transition from traditional society to modern society. A modernization policy: infrastructure, economy (currency, trade, agrarian reform, import substitution), public administration, nation building, army, urbanization, and above all, education and culture. Democracy: if possible! The modernizing elites of the State. 7