Development theory

From Wikipedia, the free

encyclopedia
Jump to navigationJump to search

Sociology

 History
 Outline
 Portal

Main theories

 Conflict theory
 Structural functionalism
 Symbolic interactionism

Methods

 Comparative
 Computational
 Critical theory
 Ethnography
 Ethnomethodology
 Historical
 Mathematical
 Network analysis
 Positivism
 Qualitative
 Quantitative

Subfields and other major theories

 Conflict
  Criminology
 Culture
 Demography
 Development
 Deviance
 Economic
 Education
 Environmental
 Family
 Feminist
 Gender
 Health
 Immigration
 Industrial
 Inequality
 Knowledge
 Law
 Literature
 Medical
 Military
 Organizational
 Political
 Race and ethnicity
 Religion
 Rural
 Science
 Social change
 Social constructionism
 Social movements
 Social psychology in sociology
 Stratification
 Technology
 Terrorism
 Urban

Browse

 Bibliography
 By country
 Index
 Journals
  Organizations
 People
 Timeline

 v
 t
 e

Development theory is a collection of theoriesabout how desirable change in society is

best achieved. Such theories draw on a variety of social science disciplines and
approaches. In this article, multiple theories are discussed, as are recent developments
with regard to these theories. Depending on which theory that is being looked at, there are
different explanations to the process of development and their inequalities

Contents

 1Modernization theory
o 1.1Sociological and anthropological modernization theory
o 1.2Linear stages of growth model
o 1.3Critics of modernization theory
 2Structuralism
 3Dependency theory
 4Basic needs
 5Neoclassical theory
o 5.1Structural adjustment
 6Recent trends
o 6.1Post-development theory
o 6.2Sustainable development
o 6.3Human development theory
 7See also
 8References
 9Further reading

Modernization theory[edit]
Main article: Modernization theory
Modernization theory is used to analyze the processes in which modernization in societies
take place. The theory looks at which aspects of countries are beneficial and which
constitute obstacles for economic development. The idea is thatdevelopment
assistance targeted at those particular aspects can lead to modernization of 'traditional' or
'backward' societies. Scientists from various research disciplines have contributed to
modernization theory.
Sociological and anthropological modernization theory[edit]
The earliest principles of modernization theory can be derived from the idea of progress,
which stated that people can develop and change their society themselves. Marquis de
Condorcet was involved in the origins of this theory. This theory also states that
technological advancements and economic changes can lead to changes in moral and
cultural values. The French sociologist Émile Durkheimstressed the interdependence of
institutions in a society and the way in which they interact with cultural and social unity. His
work ‘The Division of Labor in Society’ was very influential. It described how social order is
maintained in society and ways in which primitive societies can make the transition to more
advanced societies.[1]
Other scientists who have contributed to the development of modernization theory
are: David Apter, who did research on the political system and history of
democracy; Seymour Martin Lipset, who argued that economic development leads to social
changes which tend to lead to democracy; David McClelland, who approached
modernization from the psychological side with his motivations theory; andTalcott
Parsons who used his pattern variables to compare backwardness to modernity.
Linear stages of growth model[edit]
The linear stages of growth model is an economic model which is heavily inspired by
the Marshall Plan which was used to revitalize Europe’s economy after World War II. It
assumes that economic growth can only be achieved by industrialization. Growth can be
restricted by local institutions and social attitudes, especially if these aspects influence
the savings rate and investments. The constraints impeding economic growth are thus
considered by this model to be internal to society.[2]
According to the linear stages of growth model, a correctly designed massive injection
of capital coupled with intervention by the public sectorwould ultimately lead to
industrialization and economic development of a developing nation.[3]
The Rostow's stages of growth model is the most well-known example of the linear stages
of growth model.[3] Walt W. Rostow identified five stages through which developing
countries had to pass to reach an advanced economy status: (1) Traditional society, (2)
Preconditions for take-off, (3) Take-off, (4) Drive to maturity, (5) Age of high mass
consumption. He argued that economic development could be led by certain strong
sectors; this is in contrast to for instanceMarxism which states that sectors should develop
equally. According to Rostow’s model, a country needed to follow some rules of
development to reach the take-off: (1) The investment rate of a country needs to be
increased to at least 10% of its GDP, (2) One or two manufacturing sectors with a high rate
of growth need to be established, (3) An institutional, political and social framework has to
exist or be created in order to promote the expansion of those sectors.[4]
The Rostow model has serious flaws, of which the most serious are: (1) The model
assumes that development can be achieved through a basic sequence of stages which are
the same for all countries, a doubtful assumption; (2) The model measures development
solely by means of the increase of GDP per capita; (3) The model focuses on
characteristics of development, but does not identify the causal factors which lead
development to occur. As such, it neglects the social structuresthat have to be present to
foster development.[4]
Economic modernization theories such as Rostow's stages model have been heavily
inspired by the Harrod-Domar model which explains in a mathematical way the growth rate
of a country in terms of the savings rate and the productivity of capital.[5] Heavy state
involvement has often been considered necessary for successful development in economic
modernization theory; Paul Rosenstein-Rodan, Ragnar Nurkse and Kurt
Mandelbaum argued that a big push model in infrastructure investment and planning was
necessary for the stimulation of industrialization, and that the private sector would not be
able to provide the resources for this on its own.[6] Another influential theory of
modernization is the dual-sector model by Arthur Lewis. In this model Lewis explained how
the traditional stagnant rural sector is gradually replaced by a growing modern and dynamic
manufacturing and service economy.[7]
Because of the focus on the need for investments in capital, the Linear Stages of Growth
Models are sometimes referred to as suffering from ‘capital fundamentalism’.[8]
Critics of modernization theory[edit]
Modernization theory observes traditions and pre-existing institutions of so-called
"primitive" societies as obstacles to modern economic growth. Modernization which is
forced from outside upon a society might induce violent and radical change, but according
to modernization theorists it is generally worth this side effect. Critics point to traditional
societies as being destroyed and slipping away to a modern form of poverty without ever
gaining the promised advantages of modernization.

Structuralism[edit]
Main article: Structuralist economics
Structuralism is a development theory which focuses on structural aspects which impede
the economic growth of developing countries. The unit of analysis is the transformation of a
country’s economy from, mainly, asubsistence agriculture to a modern, urbanized
manufacturing and service economy. Policy prescriptions resulting from structuralist
thinking include major government intervention in the economy to fuel the industrial sector,
known as import substitution industrialization (ISI). This structural transformation of the
developing country is pursued in order to create an economy which in the end enjoys self-
sustaining growth. This can only be reached by ending the reliance of the underdeveloped
country on exports ofprimary goods (agricultural and mining products), and pursuing
inward-oriented development by shielding the domestic economy from that of the
developed economies. Trade with advanced economies is minimized through the erection
of all kinds of trade barriers and an overvaluation of the domestic exchange rate; in this
way the production of domestic substitutes of formerly imported industrial products is
encouraged. The logic of the strategy rests on the infant industry argument, which states
that young industries initially do not have the economies of scale and experience to be able
to compete with foreign competitors and thus need to be protected until they are able to
compete in the free market.[9] ThePrebisch–Singer hypothesis states that over time
the terms of trade forcommodities deteriorate compared to those for manufactured goods,
because the income elasticity of demand of manufactured goods is greater than that of
primary products. If true, this would also support the ISI strategy.
Structuralists argue that the only wayThird World countries can develop is through action
by the state. Third world countries have to push industrialization and have to reduce their
dependency on trade with the First World, and trade among themselves.
The roots of structuralism lie in South America, and particularly Chile. In 1950,Raul
Prebisch went to Chile to become the first director of the Economic Commission for Latin
America. In Chile, he cooperated with Celso Furtado, Anibal Pinto, Osvaldo Sunkel,
and Dudley Seers, who all became influential structuralists.

Dependency theory[edit]
Main article: Dependency theory

Dependency theory is essentially a follow up to structuralist thinking, and shares many of

its core ideas. Whereas structuralists did not consider that development would be possible
at all unless a strategy of delinking and rigorous ISI was pursued, dependency thinking
could allow development with external links with the developed parts of the globe.
However, this kind of development is considered to be "dependent development", i.e., it
does not have an internal domestic dynamic in the developing country and thus remains
highly vulnerable to the economic vagaries of the world market. Dependency thinking starts
from the notion that resources flow from the ‘periphery’ of poor andunderdeveloped states
to a ‘core’ of wealthy countries, which leads to accumulation of wealth in the rich states at
the expense of the poor states. Contrary to modernization theory, dependency theory
states that not all societies progress through similar stages of development. Periphery
states have unique features, structures and institutions of their own and are considered
weaker with regards to the world market economy, while the developed nations have never
been in this colonized position in the past. Dependency theorists argue that
underdeveloped countries remain economically vulnerable unless they reduce their
connections to the world market.[10][11]
Dependency theory states that poor nations provide natural resources and
cheap labor for developed nations, without which the developed nations could not have
the standard of livingwhich they enjoy. When underdeveloped countries try to remove the
Core's influence, the developed countries hinder their attempts to keep control. This means
that poverty of developing nations is not the result of the disintegration of these countries in
the world system, but because of the way in which they are integrated into this system.
In addition to its structuralist roots, dependency theory has much overlap with Neo-
Marxism and World Systems Theory, which is also reflected in the work of Immanuel
Wallerstein, a famous dependency theorist. Wallerstein rejects the notion of a Third World,
claiming that there is only one world which is connected by economic relations (World
Systems Theory). He argues that this system inherently leads to a division of the world in
core,semi-periphery and periphery. One of the results of expansion of the world-system is
the commodification of things, like natural resources, labor andhuman relationships.[12][13]

Basic needs[edit]
Main article: Basic needs
The basic needs model was introduced by the International Labour Organization in 1976,
mainly in reaction to prevalent modernization- and structuralism-inspired development
approaches, which were not achieving satisfactory results in terms of poverty alleviation
and combating inequality in developing countries. It tried to define an absolute minimum of
resources necessary for long-term physical well-being. The poverty line which follows from
this, is the amount of income needed to satisfy those basic needs. The approach has been
applied in the sphere of development assistance, to determine what a society needs for
subsistence, and for poor population groups to rise above the poverty line. Basic needs
theory does not focus on investing in economically productive activities. Basic needs can
be used as an indicator of the absolute minimum an individual needs to survive.
Proponents of basic needs have argued that elimination of absolute poverty is a good way
to make people active in society so that they can provide labor more easily and act as
consumers and savers.[14] There have been also many critics of the basic needs approach.
It would lack theoretical rigour, practical precision, be in conflict with growth promotion
policies, and run the risk of leaving developing countries in permanent.

Neoclassical theory[edit]
Neoclassical development theory has it origins in its predecessor: classical economics.
Classical economics was developed in the 18th and 19th centuries and dealt with the value
of products and on which production factors it depends. Early contributors to this theory
are Adam Smith andDavid Ricardo. Classical economists argued – as do the neoclassical
ones – in favor of the free market, and againstgovernment intervention in those markets.
The 'invisible hand' of Adam Smith makes sure that free trade will ultimately benefit all of
society. John Maynard Keynes was a very influential classical economist as well, having
written his General Theory of Employment, Interest, and Money in 1936.
Neoclassical development theory became influential towards the end of the 1970s, fired by
the election ofMargaret Thatcher in the UK andRonald Reagan in the USA. Also, theWorld
Bank shifted from its Basic Needs approach to a neoclassical approach in 1980. From the
beginning of the 1980s, neoclassical development theory really began to roll out.
Structural adjustment[edit]
One of the implications of the neoclassical development theory for developing countries
were theStructural Adjustment Programmes(SAPs) which the World Bank and
theInternational Monetary Fund wanted them to adopt. Important aspects of those SAPs
include:

 Fiscal austerity (reduction ingovernment spending)

 Privatization (which should both raise money for governments and improve efficiency
and financial performance of the firms involved)
 Trade liberalization, currency devaluation and the abolition ofmarketing boards (to
maximize the static comparative advantage the developing country has on the global
market)
 Retrenchment of the government andderegulation (in order to stimulate the free
market)
These measures are more or less reflected by the themes which were identified by the
Institute of International Economics which were believed to be necessary for the recovery
of Latin America from theeconomic and financial crises of the 1980s. These themes are
known as theWashington consensus, a termed coined in 1989 by the economist John
Williamson.

Recent trends[edit]
Post-development theory[edit]
Main article: Postdevelopment theory
Postdevelopment theory is a school of thought which questions the idea of
national economic developmentaltogether. According to postdevelopment scholars, the
goal of improving living standards leans on arbitrary claims as to the desirability and
possibility of that goal. Postdevelopment theory arose in the 1980s and 1990s.
According to postdevelopment theorists, the idea of development is just a 'mental structure'
(Wolfgang Sachs) which has resulted in ahierarchy of developed and underdeveloped
nations, of which theunderdeveloped nations desire to be like developed
nations.[15]Development thinking has been dominated by the West and is veryethnocentric,
according to Sachs. The Western lifestyle may neither be a realistic nor a desirable goal for
the world's population, postdevelopment theorists argue. Development is being seen as a
loss of a country's own culture, people's perception of themselves and modes of life.
According to Majid Rahnema, another leading postdevelopment scholar, things like notions
of poverty are very culturally embedded and can differ a lot among cultures. The institutes
which voice the concern over underdevelopment are very Western-oriented, and
postdevelopment calls for a broader cultural involvement in development thinking.
Postdevelopment proposes a vision ofsociety which removes itself from the ideas which
currently dominate it. According to Arturo Escobar, postdevelopment is interested instead in
local culture and knowledge, a critical view against established sciences and the promotion
of localgrassroots movements. Also, postdevelopment argues for structural change in order
to reach solidarity,reciprocity, and a larger involvement oftraditional knowledge.
Sustainable development[edit]
Main article: Sustainable development
Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. (Brundtland
Commission) There exist more definitions of sustainable development, but they all have to
do with the carrying capacity of the earth and its natural systems and the challenges faced
by humanity. Sustainable development can be broken up into environmental sustainability,
economic sustainability and sociopolitical sustainability. The book 'Limits to Growth',
commissioned by the Club of Rome, gave huge momentum to the thinking about
sustainability.[16] Global warmingissues are also problems which are emphasized by the
sustainable development movement. This led to the 1997 Kyoto Accord, with the plan to
cap greenhouse-gas emissions.
Opponents of the implications of sustainable development often point to the
environmental Kuznets curve. The idea behind this curve is that, as an economy grows, it
shifts towards morecapital and knowledge-intensive production. This means that as an
economy grows, its pollution output increases, but only until it reaches a particular
threshold where production becomes less resource-intensive and more sustainable. This
means that a pro-growth, not an anti-growth policy is needed to solve the environmental
problem. But the evidence for the environmental Kuznets curve is quite weak. Also,
empirically spoken, people tend to consume more products when their income increases.
Maybe those products have been produced in a more environmentally friendly way, but on
the whole the higher consumption negates this effect. There are people like Julian
Simon however who argue that future technological developments will resolve future
problems.
Human development theory[edit]
Main article: Human development theory
Human development theory is a theory which uses ideas from different origins, such
as ecology, sustainable development, feminism and welfare economics. It wants to
avoid normative politics and is focused on how social capital and instructional capital can
be deployed to optimize the overall value of human capital in an economy.
Amartya Sen and Mahbub ul Haq are the most well-known human development theorists.
The work of Sen is focused on capabilities: what people can do and be. It is these
capabilities, rather than the income or goods that they receive (as in the Basic Needs
approach), that determine their well being. This core idea also underlies the construction of
the Human Development Index, a human-focused measure of development pioneered by
the UNDP in its Human Development Reports; this approach has become popular the
world over, with indexes and reports published by individual counties, including
theAmerican Human Development Index and Report in the United States. The economic
side of Sen's work can best be categorized under welfare economics, which evaluates the
effects of economic policies on thewell-being of peoples. Sen wrote the influential book
'Development as freedom' which added an importantethical side to development
economics[17]

See also[edit]
 Development (disambiguation)
 Ecological modernization theory
 Economic development
 International development
 World-systems theory

References[edit]
1. ^ "The Division of Labor in Society (1893)". [Link]. Retrieved 2013-05-24.
2. ^ Khun, Alex (2008-08-06). "Inform Educate Action: Critical Review of Modernisation
Theory". [Link]. Retrieved 2013-05-24.
3. ^ Jump up to:a b Cairncross, A. K. (1961). "The Stages of Economic Growth". The Economic
History Review. 13 (3): 450–458. doi:10.1111/j.1468-0289.1959.tb01829.x.
4. ^ Jump up to:a b "W.W. Rostow, The Stages of Economic Growth: A Non-Communist
Manifesto (Cambridge: Cambridge University Press, 1960), Chapter 2, "The Five Stages of
Growth-A Summary," pp. 4-16". [Link]. Retrieved 2013-05-24.
5. ^ [Link]
6. ^ "'Big". [Link]. Retrieved2013-05-24.
7. ^ "The Lewis Theory of Development". [Link]. 2010-06-29. Retrieved 2013-05-24.
8. ^ "Trade Research – Report Details". [Link]. 1994-04-30. Retrieved 2013-05-
24.
9. ^[Link]
10. ^ [1] Archived March 24, 2012, at the Wayback Machine
11. ^ ""Dependency Theory: An Introduction," Vincent Ferraro, Mount Holyoke College, July
1966". [Link]. Retrieved 2013-05-24.
 12. ^ "Internet History Sourcebooks". [Link]. Retrieved 2013-05-24.
13. ^[Link]
[Link]
14. ^ Stewart, Frances (1 January 1989). "Basic Needs Strategies, Human Rights, and the
Right to Development". Human Rights Quarterly. 11 (3): 347–
374. doi:10.2307/762098. JSTOR 762098.
15. ^ Sachs, Wolfgang (1992). The Development Dictionary: A Guide to Knowledge as Power.
Zed Books. ISBN 1-85649-044-0.
16. ^ Meadows et al. (1972), The Limits to Growth, Universe Books, ISBN 0-87663-165-0
17. ^ Sen, Amartya (2001-01-18). Development as Freedom – Amartya Sen – Google
Boeken. ISBN 978-0-19-289330-7. Retrieved 2013-05-24.

Further reading[edit]
 M. P. Cowen and R. W. Shenton,Doctrines of Development, Routledge
(1996), ISBN 978-0-415-12516-1.
 Peter W. Preston, Development Theory: An Introduction to the Analysis of Complex
Change, Wiley-Blackwell (1996), ISBN 978-0-631-19555-9.
 Peter W. Preston, Rethinking Development, Routledge & Kegan Paul Books Ltd
(1988), ISBN 978-0-7102-1263-4.
 Richard Peet with Elaine Hartwick, "Theories of Development", The Guilford Press
(1999) ISBN 1-57230-489-8
 Walt Whitman Rostow, (1959), The stages of economic growth. The Economic History
Review, 12: 1–[Link].1111/j.1468-0289.1959.tb01829.x
 Tourette, J. E. L. (1964), Technological change and equilibrium growth in the Harrod-
Domar model. Kyklos, 17: 207–[Link].1111/j.1467-6435.1964.tb01832.x
 Durkheim, Emile. The Division of Labor in Society. Trans. Lewis A. Coser. New York:
Free Press, 1997, pp. 39, 60, 108.
 John Rapley (2007), Understanding Development. Boulder, London: Lynne Rienner
Publishers
 Meadows et al. (1972), The Limits to Growth, Universe Books, ISBN 0-87663-165-0
 Hunt, D. (1989), Economic Theories of Development: An Analysis of Competing
Paradigms. London: Harvester Wheatsheaf
 Greig, A., D. Hulme and M. Turner (2007). "Challenging Global Inequality.
Development Theory and Practice in the 21st century". Palgrave Macmillan, New York.