Perspectives on Development Theories
Perspectives on Development Theories
DEVELOPMENT*
Structure
5.0 Objectives
5.1 Introduction
5.2 Perspectives on Development
5.2.1 Modernization Theory
a) Ideal-Typical Index Method
Talcott Parsons’ pattern variable approach
Rostow’s Historical Stages Approach
b) Diffusionist or Acculturation Approach
c) Psychological Approach
5.2.2 Marxist and Neo- Marxist Approaches of Development and Underdevelopment
a) Dependency Theory
Paul Baran
Andre Gunder Frank
Samir Amin
b) Wallerstein’s World Systems Theory
5.2.3 Neo-liberal Perspective on Development
5.2.4 Alternative Development
5.2.5 Human Development Perspective
5.2.6 Anti-development Perspective
5.3 Let Us Sum Up
5.4 Key Words
5.5 Further Reading
5.6 Specimen Answers to check your progress.
5.0 OBJECTIVES
After reading this unit you would be able to:
Discuss the modernization theory of development.
Analyse Marxist and Neo-Marxist approach of development and
underdevelopment.
Describe the neoliberal perspective of development.
Outline the alternative development and human development.
Understand the antidevelopment perspectives.
5.1 INTRODUCTION
In this unit we will discuss the various perspectives of development i.e.
modernization theory, Marxist and Neo-Marxist approaches of development and
underdevelopment, neoliberal perspectives, alternative development, human
development and anti development.
*Prof. Manisha Tripathy Pandey, HOD, Deptt. of Sociology, Jamia Milia Islamia, New Delhi 61
Theorising Development The growth of development theory is a post-World War II phenomenon but the
ideas of development and progress have been present in the theories of social
Darwinism, Morgan’s analysis of savagery, barbarism and civilization, Marx’s
Historical Materialism, Tonnies’ Gemeinschaft and Gesellschaft, Comte’s Law
of Three Stages, Durkheim’s Mechanical to Organic Solidarity and Weber’s
treatment of rationality. The earlier ideas saw development as evolutionary process
and change of man’s society. Evolutionism, Marxism, neo-Marxism,
Keynesianism, structural functionalism, neoclassical economics and
poststructuralism are social science paradigms which influenced development
theories at different times. But development as action was a consciously planned
and monitored process of growth and change, that came up much [Link] the
19th century, development thinking was a reaction to the crises of progress, such
as the social problems caused by industrialization. Development became a project
to produce a far better world. It was seen as improving the living conditions of
the poorest people. ‘Development’ was the agenda laid down in US President
Harry Truman’s 1949 inaugural speech…”we must embark on a bold new program
for making the benefits of our scientific advances and industrial progress available
for the improvement and growth of underdeveloped areas’’.
2) ‘Rise of Europe’ and North America (16th C – 20th C). This period saw the
rise of market system, capitalist institutions and colonisation.
3) Global Development era from 1917 onwards, wherein World War II was a
watershed event culminating into the formation of League of Nations.
Development started meaning not only social improvement but also
‘catchingup’ with advanced countries to restore parity of power and esteem.
The meaning of development has changed over time. Initially it meant catching
up with the advanced industrialized countries. Later, economic growth and
accumulation of capital became the core meaning of development. In 1990s,
emphasis was put on human well-being. Then, the concept of social development
emphasized the development of society in its totality – including economic,
political, social and cultural aspects. When the limits to growth was realized,
sustainable development became the buzzword, focussing on the ‘needs of the
present without compromising the ability of future generation to meet their own
needs’ (Brundtland Commission).Thus, development is both, a physical reality,
and a state of mind or deliberate intention to resolve immediate problems of
poverty. It is important to mention here that development is one of the dominant
western discourses that postcolonial approaches seek to challenge and attempt
to decolonize development studies. Let us discuss the various perspectives of
development.
The early pioneers of development thinking were Adam Smith, David Ricardo,
Thomas Malthus and John Stuart Mill. For Smithin The Wealth of Nations, the
progress of opulence was driven by the growth of labour and stock of capital in
England. Malthus emphasized growth retarding factors as well as the limits to
population growth. Marx identified five stages in the development of human
societies in a historically deterministic process. All these classical thinkers were
concerned with the evolution of societies from feudal and rural to urban and
industrial; and believed that there is one single trajectory of development that all
countries follow.
Before critiquing them, A.G. Frank (1967) spells out three approaches/modesunder
Modernization theories:
1) Ideal Typical Index method
2) Diffusionist or Acculturation Approach
3) Psychological Approach
a) Ideal Typical Index method
In Ideal Typical index method or gap approach, the general features of a developed
economy are abstracted as an ideal type and then contrasted with the ideal typical 63
Theorising Development features of a poor society. Development here is viewed as the transformation of
one type to the other. By identifying a gap between the two, a development
programme is worked out. The two variant of this approach are:
Walt W. Rostow’s Theory of Stages of Growth is the second variant of the index
approach. In The Stages of Economic Growth: A Non-Communist Manifesto,
Rostow (1960) identified certain intermediate stages of growth within the gap
between the underdeveloped and developed world. All economies are considered
as going through five stages of economic growth, in the development from fairly
poor agricultural societies to highly industrialized mass-consumption economies.
These stages are as follows:
1) Traditional societies are those where the ‘production functions’ are limited;
and output per head is low and does not tend to rise because of inaccessibility
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of science and technology. Here family and clan groupings are emphasized. Perspectives on Development
Values are ‘fatalistic’ and political power is non-centralised.
ii) The second stage is the development of a set of pre-conditions for economic
‘take-off’. This is a period of transition in which traditional institutions
begin to change. The economy gradually gets geared to the using of modern
science and technology.
iii) ‘Take-off’ stage, where the old resistances to steady growth are overcome
and growth becomes the normal condition of the economy.
Aid should be given to economies at the pre-take-off stages to get them to take-
off stage. The necessary pre-condition for development refers to society’s
increasing efficiency to promote savings and generate capital, develop managerial
and entrepreneurial acumen of its people and make institutional and structural
reforms to cope with the new challenges of economic growth. The main flaw in
the gap approach is that it does not take into account the international structure
of development and underdevelopment, of which the domestic structure of
underdevelopment is only a part.
c) Psychological Approach
This rests on the assumption that it is values, motives or psychological forces
that determine ultimately the rate of economic and social development. One of
the most influential books in this genre is The Achieving Society by David
McClelland (1961), which argues a society with a high level of achievement will
produce energetic entrepreneurs who, in turn, will produce more rapid economic
development. A psychological characteristic, which he called, ‘n-Achievement’,
or the need for achievement, suited particular individuals for entrepreneurial
roles, which could be enhanced through ‘achievement motivation training’.
Like the diffusionist approach, this approach too doesn’t consider that any changes
are needed in the given social structure, to create conditions for economic
development. It appeals to individuals to transform themselves psychologically,
in order to hit the road of social progress.
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Theorising Development Modernization theory, overall, undervalues the critical importance of traditional
societies and is highly Eurocentric. It depoliticises development by ignoring
diverse histories and culture. Current themes in Modernization theory focus on a
revaluation of tradition, not as obstacle but as resource. The trend is also on to
view modernities in the plural; and engagement with postmodernism.
Lenin’s writings links the process of capitalist development in the West to the
process of the worldwide imperialist expansion and establishment of an unequal
economic relation between capitalist countries and [Link] not all
dependency theorists are Marxist. Marxist Theory of Imperialism (as interpreted
by Lenin) explains dominant state expansion and why imperialism occurs. On
the other hand, dependency theory explains underdevelopment and consequences
of imperialism. The theories of underdevelopment are essentially dependency
theories. These theories are propounded by scholars like Paul Baran, Andre
Gunder Frank, Samir Amin, Immanuel Wallerstein and H. Magdoff.
a) Dependency Theory
Dependency Theory came as a reaction to the modernization theory, viewing the
poverty of countries in the South as a product of their integration into the ‘world
system’.The origin is traced back to the notion of Dependencia among Latin
American economistsduring 1930s; UN Economic Commission for Latin America
(ECLA) during post-war period and works of Argentinian economist Raul
Prebisch. Historically it began with the establishment of international division
of labour, for which Third World countries acted as producers of low cost raw
materials and Western Europe as manufacturers of high priced finished goods.
This led to a relationship of unequal exchange which in turn led to further
deterioration in Balance of Trade. The exchange was unequal as power and surplus
value from labour flowed up; and control, ideology and expensive products flowed
down the chain.
Paul Baran (1957) in The Political Economy of Growth , was the first among
the advocates of dependency theory. He viewed that capitalism, due to its inherent
characteristics, exploited the Third World. The capitalist world keeps the backward
world as an indispensable hinterland and extract the economic surplus.
Baran argues that the historical contact between the underdeveloped and
developed countries not only accelerated the decomposition of pre-capitalist
structures in underdeveloped countries but it also extracted an important part of
underdeveloped countries surplus; prevented the possibilities of industrialization;
conditioned class formations and distorted the development process to suit the
needs of the developed countries.
Baran clarifies that the most significant factor preventing the emergence of the
‘classical’ conditions for growth in the underdeveloped world, is not the smallness
of economic surplus, due to low volume of production and income. It is, rather,
the mode of utilization of the economic [Link] surplus is appropriated by
merchants, moneylenders and intermediaries of all kinds and there is exit of
capital from the sphere of circulation to the sphere of production, besides other
obstacles baring the entry of mercantile accumulations into the sphere of industrial
production. Baran believes that the existing class structure of the Third World
countries has also been responsible for their dependent situation. The
underdeveloped countries, given an independent development, would have
initiated the utilization of their natural resources on their own and on terms more
advantageous than those received from foreign [Link] Baran, other
dependency theorists also argued that since western development had taken place
at the expense of the underdeveloped countries, the only solution for the latter
was to ‘break out’ of the imperialist system into socialism. Baran’s obsession for
the Socialist model of economic development makes him as utopian as Marx.
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Theorising Development Andre Gunder Frank was influenced by Paul Baran and is a critic of
modernization theory. He rejects the theory of diffusion and also criticizes
McClelland and Hagen. He gives a metropolitan-satellite model, to describe the
features of a single, integrated, world-wide capitalist system. This model
characterizes the domination by industrial metropoles (USA) of the
underdeveloped satellites ( Mexico) through an expropriation of their surpluses
by the imposition of an export-oriented capitalist development. It applies not
only to the relations between developed and underdeveloped world, but also to
the relations between and within underdeveloped economies, and also within
the developed economies themselves. Examples can be Milan and Turin in Italy
as metropolises for Southern Italy and Sao Paulo (Brazil) as a metropolis for
surrounding satellites. In the case of developed countries, examples could be the
relationship between Scotland and Britain, or between Southern and Northern
USA. Thus, according to this model, each connection between a satellite and a
metropolis is a channel through which the centre appropriates a part of the
economic surplus of the satellites.
Frank has made a periodic presentation of the history of the world system. Both
the processes of development and underdevelopment started in the mercantile
period (1500-1770), carried through into industrial capitalism (1770-1870) and
ended with imperialism (1870-1930). Throughout the process, the colonies, semi-
colonies and neo-colonies existed primarily for the benefit of the capitalist
metropolis and as a direct result became underdeveloped.
Frank argues that the gap between development and underdevelopment is often
greater nationally than internationally, and also that the more underdeveloped a
country is as a whole, the greater is its internal development-under development.
He uses the term ‘internal colonialism’ to describe the domination by the
developed sector in an underdeveloped or developed country, over the
underdeveloped parts. He rejects the traditional Marxist argument that the reason
for the lack of development in agrarian underdeveloped countries is the persistence
of feudalism. Frank argues instead that the only way in which underdeveloped
countries can develop, is by breaking away from the capitalist system.
Thus, Dependency theorists believe that the Third World is not an area ripe for
development along a pathway taken by European countries (as modernization
theory suggests), but instead, is a subsidiary part of the Western capitalist system.
They have been criticised for giving a distorted structure of periphery economy
and society.
1) World empires, which existed with a single political system. For example,
the Roman empire and British empire.
2) World economy, with a single, large axial division of labour with multiple
political centers and multiple cultures. Capitalist world system can
accommodate many different political forms (democracy, monarchy) and
different forms of production (slavery, feudalism).
Wallerstein posits a three-level system, consisting of the core, the periphery and
the semi-periphery, to analyse the capitalist system. This refers to nation-states
and the hierarchically ordered relations between them. The developed core
(England, France) refers to the area that appropriates surplus from the
underdeveloped peripheries (Brazil, Mexico). The existence of developing semi-
peripheral areas (Portugal, Spain) depolarise the system and contribute to the
continued existence of the system. They provide a check to the political assertion
of the majority peripheries against the minority core areas. These semi-peripheral
states ensure that the upper stratum is not faced with the unified opposition of all
the others because the middle stratum is both exploited and exploiter. Besides
the three categories, Wallerstein talks of ‘External Areas’, which maintain their
own economic system. The internal trade is given importance by the countries of
this region. Russia is the best example. The main criticism against the world
system thesis is that it is highly Eurocentric.
Samir Amin divides the world systems into two sectors: self-centred systems
and peripheral systems and talks of Unequal Development (1976). The countries
which are self-centred have their own internal dynamic system unaffected by
external relationships, whereas the countries on the periphery meet the
requirements of the centre. Amin is of the view that the Third World countries
are under direct influence of the capitalist world. Despite their own exclusive
modes of production, these countries, under the influence of western capitalism,
have almost similar capitalist nature of economy. For him, history of peripheral
capitalism is full of ‘short-term miracles’ and ‘long-term blocks’, stagnation and
even regression. In ‘Accumulation on a World Scale’ (1974), Amin talked about
disarticulation/distortion of economy and polarization of class interest on a global
scale, leading to a world proletariat against a world bourgeoise.
F. H. Cardoso criticises Gunder Frank and Wallerstein that their theories are
inadequate and [Link] ignore the indigenous social forces and
structural dynamism of industrialization in the peripheries and also the impact of
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Theorising Development class struggles within the peripheries. Their views ignore the question of the
historical and structural particularities in different countries and provide an over-
integrated view of the world capitalist system.
Dependence skewed the region’s social structure so that local power was held by
a small ruling class that used the gains from exporting for luxury consumption
rather than investment. Real power was exercised from external centres of
command in dominant countries. Dependence continues into the present through
international ownership of the region’s most dynamic sectors, multinational
corporate control over technology, and payment of royalties, interest, and profits.
Development could be achieved only by withdrawing from the world capitalist
system and reconstructing economy and society on a socialist basis.
The current trend in dependency theory is the analysis and critique of NICs (Newly
Independent Countries). The approaches like new political economy and
international political economy, gives a renewal of dependency thinking.
Neoliberalism and uneven global development are current themes in this kind of
analysis.
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3) Explain Alternative Development Perspective. Perspectives on Development
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Neoclassical
Economics, Market failure, safety net, Regulation of
Neoliberalism human capital, infrastructure, finance. Civic
Development is good governance, economy
market-led growth. sustainability. Debt reduction.
Keynotes: overcome New institutional economics:
state failure through institutional analysis.
structural reform
(deregulation,
privatization,
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Theorising Development
liberalization) and get
prices right
Source: Pieterse, J.N. 2001. Development Theory. pg. 155, Table 10.
REFERENCES
Alavi, Hamza and Shanin, Teodar (ed.). [Link] to the Sociology of
Developing Societies, Macmillan Press.
Amin, Samir. 1976. Unequal Development. New York: Monthly Review Press.
Baran, Paul. 1957. The Political Economy of Growth. New York: Monthly Review
Press.
Dos Santos, T. 1971. “The Structural Theory of Imperialism”. Journal of Peace
Research.
Emmanuel, A. 1972. Unequal Exchange: A Study of the Imperialism of Trade.
New York: Monthly Review Press.
Frank, Andre Gunder. 1967. “Sociology of Development and Underdevelopment
of Sociology”. Catalyst. 3: 20-73.
Haq, Mahbub Ul. 1995. Reflections on Human Development. New York: Oxford
University Press.
Hoselitz, Bert. 1960. Sociological Aspects of Economic Growth. Glencoe. IL:
Free Press.
Latouche, S. 1993. In the Wake of the Affluent Society: An Exploration of Post-
Development. London: Zed Books.
McClelland, D.C. 1961. The Achieving Society. Princeton. NJ: Van Nostrand.
Nerfin, Marc. 1977. Another Development. Uppsala: Dag Hammarskjold
Foundation.
Peet, R. 2005, Theories of Development, Rawat Publications, Jaipur.
Pieterse, J.N. 2001. Development Theory: Deconstructions/Reconstructions.
London: Sage Publications Ltd.
Rostow, W.W. [Link] Stages of Economic Growth: A Non-Communist
Manifesto. Cambridge: Cambride University Press.
Sunkel, O. 1969. “National Development Policy and External Dependence in
Latin America”. Journal of Development Studies.
Wallerstein, I. 1974. The Modern World System (Vol. 1). New York: Academic
Press.
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