2.

0 Introduction
 Development theory is a collection of theories about how
desirable change in society is best achieved.
 Such theories draw on/use a variety of social science
disciplines and approaches.
 However, this chapter will mainly concentrate on a brief
summary of a few development theories.
 From these theories we learn:
 How do the theoretical foundation of development
interventions continue to change over the years?
 What are believed to be causes of underdevelopment?
 Which types and kinds of intervention are deemed to be
appropriate for development?
 Introduction….
 Following this, it is important to know the basic difference
between development theory and development practice.
 Development Theory:
 Refers to conceptual frameworks and models that attempt to
explain how development occurs, why poverty persists, and
how societies can progress.
 Examples include modernization theory, dependency theory,
world systems theory, post-development theory, etc.
 It tends to be academic, often produced in universities and
think tanks.
 Focuses on understanding patterns, causes, and
consequences of underdevelopment.
 Introduction….
 Development Practice:
 Involves the actual work of implementing development on the
ground.
 Includes policy-making, project implementation, resource
allocation, and program delivery.
 Practiced by governments, NGOs, international agencies, and
communities.
 Faces real-world constraints like limited budgets, political
interference, cultural resistance, and logistical challenges.
 Key Difference:
• Theory informs what should be done ( or needs to be done).
 Practice deals with what can be done (or can be implemented),
given real-world complexities.
• Next, we will learn various theories.
 2.1 Classical Theories of Economic Growth and
Development: Modernization School of Thought
2.1.1 The Modernization Theory: A General Overview
• Modernization Theory is a classical/ foundational/traditional/
early development theory with a broad framework that
emerged in the post-World War II period, aiming to explain
how societies develop and why some nations are more
“developed” than others.
• Originally, it was developed in the 1950s and 1960s and
influenced or designed by key thinkers like Walt Rostow,
Talcott Parsons, and Samuel Huntington.
• It is used as a framework during the Cold War for explaining
development in the Global South (developing countries) and
to promote capitalism and liberal democracy in these
countries.
 Modernization ….
• It argues societies progress through similar stages from
traditional to modern by adopting industrialization,
technology, and modern social institutions.
• It further argued that “poor countries are poor because they
are still in a traditional stage. They will develop if they
adopt modern practices.”
• These countries to advance on the path of development,
therefore, modernization theorists recommended the
Westerning of elites/leaders, training, education, proper
administrative and bureaucratic structure, and
absorbing/fostering entrepreneurial spirit into the citizenry
of the third-world countries.
 Modernization ….
[Link] Key Assumptions of Modernization Theory
 These key assumptions of Modernization Theory include:
 Modernization theory posits that development is a linear
process through which all societies must pass through
universal/common stages of growth, generally moving
from traditional to modern stages.
 Western countries represent the ideal model of modernity.
Modern societies are characterized by industrialization,
urbanization, secularism, and individualism, literacy, and
rational bureaucracy.
This theory suggests that traditional societies are
underdeveloped, stagnant, and resistant to change and
must adopt Western values.
 Modernization ….
Internal factors (culture, values, institutions) are the main
causes of underdevelopment so that it argues that
traditional values must change to modern values like
individualism, innovation, and rationality for development
to occur.
External assistance, such as foreign aid or investments
from developed countries, can help poorer nations
modernize by adopting the Western model.
• Today, the Modernization Theory has also relevance,
which are listed below.
Still influences/shapes development policy (e.g., UN
development goals).
Forms the basis of “development aid” programs.
 Modernization ….
 Useful as a historical theory, but needs to be balanced with other
perspectives like Dependency Theory and World Systems
Theory.
 Example: International organizations like the World Bank often
fund infrastructure and education in Africa based on
modernization logic, expecting these to lead to growth.
 Let us see countries that successfully followed modernization
theory and succeeded in developing rapidly, and failed, despite
following the theory.
 Countries that Successfully Followed Modernization Theory
1. South Korea – A Classic Success Story
• In the 1950s, South Korea was one of the poorest countries in
the world after the Korean War.
• Its GDP per capita was lower than many African countries at the
time.
 Modernization ….
• Received foreign aid, especially from the U.S., and adopted
capitalist, market-oriented policies.
 It followed modernization elements like:
• Heavy investment in education and infrastructure.
• Strong state-led industrialization (through “Five-Year Plans”).
• Promotion of entrepreneurship and innovation.
• Transition from a rural society to an urban, high-tech economy.
 Owing to it follows the modernization theory, results include:
• Became a high-income country.
• One of the “Four Asian Tigers”.
• Home to global companies like Samsung, LG (Lucky
Goldstar), Hyundai.
• Moved through all of Rostow’s 5 stages of growth.
 Modernization ….
2. Singapore – From Colonial Port to Global Hub
• Singapore gained independence in 1965.
• No natural resources, ethnically diverse, high unemployment.
It follows modernization elements such as:
• Strong central government (under Lee Kuan Yew).
• Massive investment in education, technology, infrastructure.
• Transitioned from a trading port to a finance and tech hub.
• Emphasized meritocracy/talent-based system/performance-based
system, rule of law, and economic openness.
 Owing to it follows the modernization theory results include:
• Its GDP per capita increases from ~US$500 in 1965 to over
US$70,000 today.
• Became a global leader in innovation, transport, and education.
• Highly urbanized, modern society.
 Modernization ….
 Countries That Tried but Failed or Struggled
1. Nigeria – Rich in Resources, Poor in Outcomes
• Nigeria gained independence from Britain in 1960.
 It follows modernization approach elements such as:
• Adopted capitalist models, Western-style institutions, and
received development aid.
• Built infrastructure, expanded education.
• Copied Western political institutions and economic
policies.
 Challenges:
• Weak institutions and corruption.
• Overdependence on oil exports.
 Modernization ….
• Ethnic divisions and political instability.
• Poor use of aid and lack of industrial diversification.
 Result:
• Remains a developing country with high poverty and
unemployment.
• Failed to fully industrialize or transition to a mass
consumption society.
2. Haiti – Westernization Without Development
• Haiti gained independence in 1804 (first black republic).
• Received aid and influence/support from the U.S. and
Western institutions.
 Modernization ….
It follows modernization approach elements such as:
• Adopted Western-style democracy and education systems.
• Foreign aid played a large role in national income.
 Challenges:
• Persistent political instability and poor governance.
• Heavy dependence on aid with little sustainable economic
growth.
• Weak infrastructure and poor investment in productive
sectors.
Result:
• Still among the poorest countries in the Western Hemisphere.
• Lacks basic public services, suffers from repeated crises.
 Modernization ….
 Following this, let us see the summary on why modernization theory
worked in some and failed in others?
Success Factors Failure Factors
Strong, stable government Corruption and weak institutions
Investment in human capital Overdependence on foreign aid
or resources
Industrial policy & planning No diversification of economy
Social cohesion and discipline Ethnic/political conflict
Cultural acceptance of change Resistance to change or poor
implementation

 In summary, Modernization theory is not inherently wrong, but it assumes

that all countries start from the same point and have equal opportunity.
 However, historical, political, cultural, and global economic factors
strongly affect whether a country can truly “modernize” successfully.
 Rostow’s Stages ….

• In the coming sections, this chapter presents some

Modernization School of Thought as sub-topics. Let us
discuss the nature of each model below.
2.1.2 Rostow’s Stages of Economic Growth: A Non-
Communist Manifesto
 One of a Key Thinker of this theory was W.W. Rostow’s
“Stages of Economic Growth Model
 Walt Rostow proposed that economic development
occurs in five sequential stages.
 His model suggests that all countries move from a
traditional agricultural economy to a modern industrial
society.
 Rostow’s Stages ….
 This was influential/ powerful/ important during the Cold
War to show how capitalist development could progress.
 Rostow identified the following five stages through
which developing countries had to pass to reach an
advanced economy status:
 Stage 1: Traditional society
 Stage 2: Preconditions for take-off / Transitional
 Stage 3: Take-off
 Stage 4: Drive to maturity and
 Stage 5: Age of high mass consumption.
Rostow’s Stages….
 Rostow’s Stages ….
Stage one: Traditional Society
Traditional society is characterised by:
• Society depends mostly on subsistence
agriculture (farming just enough to
survive).
• Technology is very limited, and
production methods are outdated (e.g.,
manual plowing).
• Pre-modern and social structure is
rigid and hierarchical, often based on
tradition, family ties, or caste.
• Little or no growth occurs because
productivity is low.
Village in Lesotho. 86% of the resident workforce in • Example, in the early 20th century,
Lesotho is engaged in subsistence agriculture.
many rural parts of India or Africa
Copyright: Tracy Wade, [Link]
were traditional societies, people
mostly farmed with basic tools and
lived in small villages.
 Rostow’s Stages ….
Stage Two: Pre-conditions for take-off/
Transitional Stage
 The pre-conditions for take-off into self-
sustaining growth takes 10-50 years.
 This stage is generally characterised by external
and internal changes (e.g., accumulation of
capital, growth of infrastructure) create
conditions for growth. Specifically,
 The society begins to build infrastructure such
as roads, schools, and banks.
 There is an increase in investment and
introduction of new technologies.
 Society starts to develop a more organized
economic base, for example, better farming
tools or factories begin appearing.
The use of some capital equipment can help increase
productivity and generate small surpluses which can
 External influences like foreign investment or
be traded. aid often help.
 Political and social institutions also start
Copyright: Tim & Annette, [Link] changing to support growth.
 Example, in the early 20th century, countries
like China (before 1949) and Egypt began
investing in railroads and education as steps
 Rostow’s Stages ….
Stage Three: Take-off
 It is generally characterised by a period of rapid
economic growth, typically caused by
industrialization, technological innovation, and
capital investment. Specifically:
• Take-off stage is Rostow’s central stage with a
decisive expansion 2-3 decades.
• Rapid industrialization and urban growth
begin.
• New industries expand quickly, such as
textiles, steel, or oil production.
• Investment rates rise significantly (about 10%
of national income or more).
• Agriculture becomes more commercialized to
support the growing industry.
At this stage, industrial growth may be linked to • Society’s values shift to favor innovation,
primary industries. The level of technology
required will be low. entrepreneurship, and economic growth.
Copyright: Ramon Venne, [Link] • Example, South Korea in the 1960s-1980s is a
classic example: It moved from a poor agrarian
economy to rapid industrialization with new
factories, export growth, and infrastructure.
 Rostow’s Stages ….
Stage Four: Drive to Maturity (Full Growth
or Development)
 Stage four is generally characterized by
continued growth, diversification of industries,
and improvements in education and
technology. Specifically:
 Economy diversifies beyond initial industries
to include many sectors like chemicals,
electronics, and automobiles.
 Technological innovations spread widely
across the economy.
 The workforce becomes skilled and education
As the economy matures (full growth or systems expand.
development), technology plays an increasing role  The country becomes more self-sufficient,
in developing high value added products.
reducing reliance on imports.
Copyright: Joao de Freitas, [Link]
 Example, by the 1980s and 1990s, countries
like Japan and Germany showed these
features with diversified, technology-driven
industries.
 Rostow’s Stages ….
Stage Five: Age of high mass consumption
 Stage five is characterized by a stage where
industrialization is complete, and the economy
shifts towards consumer goods and services,
with high standards of living. Specifically:
 The economy produces a large amount of
consumer goods and services/ consumer-
oriented society.
 High incomes and widespread wealth lead to
mass consumption of cars, homes, education,
healthcare, and entertainment.
 The standard of living rises significantly.
 Welfare systems and social security often
expand.
 Tertiary service/ service industry that dominates
the economy are health service, transportation,
education, tourism, entertainment, finance, sales
and retail, banking, insurance, leisureAutos,
Service industry dominates the economy – banking, suburbs, innumerable durable consumer goods
insurance, finance, marketing, entertainment, leisure
and so on. & tools and so on.
 Example, the United States and Western Europe
Copyright: Elliott Tompkins, [Link]
during the post-World War II period entered this
stage, widespread consumerism and high living
 Rostow’s Stages ….
 To sum up,
• One of the strength of the Rostow model is that it provides a clear,
simple framework for understanding how economic development
grows over time.
• It also shows that development is not immediate but occurs in
stages with specific changes in economy, society, and culture.
• Understanding these stages helps analyze why some countries
develop faster and others slower.
[Link] Limitations/weaknesses/critiques of the Rostow - Stages of
growth model
• The Rostow model has serious flaws, of which the most serious are:
1. Eurocentrism: Imposes Western values on non-Western societies.
Rostow’s model is criticized for being oversimplification
eurocentric, assuming that all countries will follow the same path
as Western nations, a doubtful assumption;
 Rostow’s Stages ….
 But, the historical growth pattern does not apply to all countries.
Many countries have jumped the stages. Japan, after II World war,
jumped straight to Take Off. China and India aiming for High Mass
Consumption, before achieving Take Off.
2. The model measures development solely by means of the increase
of GDP per capita;
3. Linear Development: It assumes a fixed, linear progression,
disregarding historical, cultural, and socio-political realities in
developing countries which lead development to occur or foster
development.
4. Neglect of Inequality: It does not address the inequalities that
may emerge during industrialization, nor does it consider the
environmental consequences of rapid industrialization.
5. Despite relatively large injections in aid, many less economic
developed countries (e.g. countries in Africa) are still at stage one.
 2.1.3 The Harrod–Domar Model
• The Harrod-Domar model is one of the earliest economic
growth theories, which is developed by Sir Roy Harrod and
Evsey Domar in the 1930s and 1940s, focuses on the
relationship between investment, savings, and economic
growth.
[Link] Core Assumptions of the model:
1. Investment leads to economic growth: The model
posits that higher investment results in more capital
formation, which drives economic growth.
 In brief, this model is based on the assumption that
growth depends on the level of investment in an economy.
 In this assumption, the phrase capital formation means
adding more tools, machines, factories, roads and
buildings that help produce goods and services.
 Harrod–Domar….
For example, when a factory buys new machines, it’s
increasing capital formation, which helps produce
more and grow the economy.
2. Saving is key: Increased savings generate the capital
goods needed for investment like machinery,
infrastructure, and technology, which in turn
increases productive capacity and boosts growth.
In short, saving provides money to buy things like
machines and buildings, which help produce more
goods and grow the economy.
3. The model assumes that economic growth depends
on two key factors: the savings rate and the
capital-output ratio (how much capital is needed to
produce one unit of output).
 Harrod–Domar….
 At the same time, economies/economic system with
efficient use of capital (a low capital-output ratio) grow
faster because they get more output from each unit of
capital invested.
 In the above notion, efficient use of capital means
getting more output (goods and services) from the same
amount of money or resources invested.
 In other words, efficient use of capital means using
money wisely to produce more with less money.
 Let us see the following two examples for understanding
efficient use of capital:
 Harrod–Domar….
 Example One: If two factories each invest $1,000: Factory A
produces 100 shirts while Factory B produces 50 shirts.
 In this case Factory A uses capital more efficiently because it
gets more output from the same investment and adds more to
economic growth.
 Example Two: If one farmer produces 10 quintals of rice using
$500, and another produces only 5 quintals with $500, the first
farmer is using capital more efficiently and adds more to
economic growth.
• The model is important because it highlights that without
sufficient investment, an economy can stagnate/not developing
or even decline.
• For developing countries, the Harrod–Domar Model suggested
that foreign aid or domestic savings should be increased to
finance investment in infrastructure, factories, and technology to
start rapidly growth.
 Harrod–Domar….
• Successful Cases : South Korea and Taiwan
1. South Korea
 South Korea is a classic example of a country that
effectively applied principles aligned with the Harrod–
Domar model.
 From the 1960s onward, South Korea maintained very high
savings rates (over 30% of GDP and the government
prioritized building factories (steel, shipbuilding, and
electronics), improving transportation, and fostering
exports.
 As a result, this efficient allocation of capital allowed for
rapid industrialization and high economic growth rates as
well as it experienced rapid transformation from a poor
agrarian society into a leading industrial economy.
 Harrod–Domar….
2. Taiwan
 Similarly, Taiwan followed a similar pattern of high
investment rates supported by government policy and
strong savings, leading to rapid industrialization and
economic development.
• Unsuccessful Cases : Nigeria and Zambia
 In contrast, many countries in Sub-Saharan Africa, such
as Nigeria and Zambia, struggled/failed to apply the
Harrod–Domar model successfully.
 Despite receiving substantial foreign aid intended to boost
investment, these countries often faced problems such as
poor governance, corruption, political instability, and
inefficient use of capital.
 Harrod–Domar….
 Their savings rates remained low, and investments did not translate
effectively into productive capacity.
 As a result, economic growth stagnated, and they remained
underdeveloped.
 The case of Ethiopia, Ethiopia has a much lower savings rate and
faces challenges in efficiently investing capital.
 Factors such as limited domestic financial markets, political
instability, and lack of skilled labor reduce the effectiveness of
investments.
 As a result, Ethiopia struggles/fails to accumulate the capital needed
for sustained growth, demonstrating the difficulties the Harrod-
Domar model faces in low-income countries without strong
financial systems and political stability.
 Harrod–Domar….
 In summary, the Harrod–Domar Model provides a simple but
powerful framework/ideas to understand the role of
investment in economic growth.
 Countries that successfully mobilize savings and invest
efficiently tend to grow faster, as seen in South Korea and
Taiwan.
 However, countries where investment is poorly managed or
savings are too low struggle/fail to develop, as experienced
by Nigeria, Zambia and Ethiopia.
 This model helped create later growth theories, like the
Solow Model, which focus more on good investment,
strong institutions, technology, and labor.”
 Harrod–Domar….
[Link] Limitations of the Harrod–Domar Model
 The model overlooks the role of human capital (e.g., education and
skills) and institutions in driving development.
 It assumes that the capital-output ratio is constant, which is not
realistic in rapidly changing economies. In other words, it means that
the amount of capital needed to produce one unit of output stays the
same, but this idea is not true in fast-growing or changing
economies.
 The Harrod-Domar model does not address the distribution of
wealth or income, which can lead to inequalities.
 In some cases, investment went into projects without proper
planning or maintenance, leading to wasted resources.
 One of a key limitation of the Harrod–Domar Model is that it
assumes investment is always productive/ useful and efficiently
used/ well- managed, but that’s not always the case in real life.
 2.1.4 Samuel Huntington’s Theory of Political
Modernization and Development
• Samuel Huntington expanded on modernization theory by
emphasizing the political dimensions of development.
• So that Samuel Huntington focused on the political aspects of
modernization, particularly how political development is
essential to support economic growth and social change.
• He believed that for a country to develop, it also needs strong
political systems like fair laws, rule of law, trusted leaders,
political legitimacy, and stable institutions, which help guide
development and handle changes or conflicts in society.
• Thus, political stability was central to Huntington’s theory.
• He assumed that modernization creates tensions between new
and old social structures, and political stability must be
maintained to prevent conflict and ensure progress.
 Samuel Huntington’s….
• To emphasis more, Huntington believed that rapid social
change like urbanization and industrialization have often
led to political instability rather than progress if political
institutions fail to keep pace with/be equal with economic
and social transformations.
• He also mentioned the following the challenge of political
development:
Huntington argued that many developing nations face a
“political decay” due to weak institutions, lack of
political participation, and the inability to adapt to
modernization.
As a result of this challenge, he stressed that
democratization must be gradual and managed carefully
to avoid instability.
 Samuel Huntington’s….
[Link] Critiques of the Huntington’s theory:
His model suggests that Western-style democracy is the
end goal of political modernization, which is criticized as
ethnocentric and dismissive/reject of alternative political
systems.
The theory also overlooks the complex/ diversity realities
in developing nations, where the imposition/obligation of
modern political structures can lead to instability rather than
stability.
• In conclusion, Huntington’s theory emphasizes the importance
of political stability in development but overlooks the diversity
of political systems that may emerge during modernization.
• It also fails to account for/explain the role of democratic
participation and social movements in driving political change.
 Samuel Huntington’s….
 Let us see real world examples in relation to this theory.
• A successful example of Huntington’s political
modernization can be seen in South Korea.
• Alongside its economic development, South Korea
gradually built a strong political system that, after years
of authoritarian rule, transitioned to a stable democracy in
the late 1980s.
• This political modernization helped sustain economic
growth and social development for South Korea.
• In contrast, countries like Nigeria have struggled with
political modernization. It has faced persistent challenges
in this regard.
 Samuel Huntington’s….
• Since independence, Nigeria has experienced multiple
military coups, civil war, and political corruption, which
weakened governance structures.
• The lack of stable political institutions has led to
inconsistent policies, poor law enforcement, and ethnic
conflicts that have fragmented the country.
• Without political modernization, social changes like
urbanization and industrialization have often led to
instability rather than progress.
• For example, oil wealth has sometimes fueled/stimulated
corruption and conflict rather than development,
illustrating Huntington’s warning/advising that political
institutions must evolve alongside economic growth.
 2.1.5 Talcott Parsons’ Theory of Structural
Functionalism: Pattern Variables
 Talcott Parsons is known for his Structural Functionalism,
which sees society like as a system or machine, where
different interrelated parts (like family, education, and
law) work together to maintain/keep society stable and
functioning smoothly.
 Parsons introduced the concept of Pattern Variables to
explain how different societies are organized and adapt to
change.
 Parsons identified various pattern variables that describe
basic choices people make and behave based on norms
(rules for behavior) and values (beliefs about what’s
important), which shape how they act in society.
 Talcott Parsons’….
 Examples:
• Norm: Saying “thank you” – a rule for polite behavior.
• Value: Believing in honesty – a principle that guides
actions.
 These variables help explain how societies develop by
moving from traditional social patterns to modern ones.
 In other words, Talcott Parsons’ pattern variables describe
shifts in social values needed for modernization, such as
societies move:
 from ascription (status based on birth or tradition) to
achievement (status based on personal
accomplishments/merits),
 Talcott Parsons’….
 from particularism (favoring specific groups) to universalism
(rules and norms applied equally/applying rules equally), and
 from affectivity (emotional relationships/behavior) to
affective neutrality (rational, unbiased, unemotional
behavior).
 These shift facilitate economic development and social
integration.
 Thus, countries that have embraced/comprised these modern
social patterns tend to develop more successfully.
[Link] Critiques of the theory of Structural Functionalism
Critics argue that Structural Functionalism is overly
deterministic/too rigid and ignores conflict, inequality, and
power struggles, which are central to understanding
development.
 Talcott Parsons’….
 In other words, critics say Structural Functionalism focuses
too much on stability and assumes people always follow
social rules, ignoring problems like conflict, inequality, and
power, which are key to understanding how societies
change.
The theory is also criticized for assuming that all societies
will follow the same path of modernization, ignoring
historical, cultural, and socio-political differences.
 Real world examples in relation to this theory
 For example, in countries like Japan modernized quickly by
using universal rules/ norms (treating everyone the same),
merit-based education (rewarding talent and hard work), and
organized government systems/bureaucratic governance,
which helped grow a strong industrial economy.
 Talcott Parsons’….
 However, in countries like Afghanistan, strong traditional ties,
such as tribal loyalty/affiliations and status based on
birth/ascriptive, still continue to dominate social and political life,
making it harder for modernization and economic growth to take
place.
 Also, Ethiopia’s society remains largely shaped by ascriptive and
particularistic patterns, where ethnicity, clan, and kinship ties
strongly influence social status, political power, and access to
resources.
 This limits social mobility and the development of meritocratic
institutions.
 For example, government jobs and educational opportunities can be
influenced by ethnic favoritism rather than qualifications.
 These social patterns hinder the development of modern
bureaucratic institutions and slow down economic and political
modernization, reinforcing inequality and conflict.
 2.1.6 Critiques Against the Modernization School
of Thought
• The modernization school of thought has been widely criticized for
several reasons.
1. Eurocentrism: Imposes Western values on non-Western societies
 The theory assumes that Western ways (capitalism, liberal
democracy, secularism) to development are superior and should be
copied.
 The theory thinking that what worked in Europe and North
America work in Asia, Africa and Latin America or in all societies.
 This ignores the unique local cultures, histories, institutions and
social contexts of non-Western societies.
 In reality, Nigeria and Ethiopia have unique social, political, and
cultural contexts, like ethnic diversity and colonial legacies, that
make simple adoption of Western models difficult.
 Critiques….
2. Linear and Deterministic Model: the theory assumes
development is a linear and inevitable process or one-size-fits-all
approach, which suggests that all countries must follow the same
fixed path of development, step by step, like in Rostow’s model.
But this idea is unrealistic and does not match real-world history,
where countries develop in different ways.
• In reality, development paths are often non-linear, influenced by
internal and external shocks (e.g., war, environmental crises).
• This assumption does not account for countries that follow different
paths or get stuck in cycles of poverty and conflict.
 In real fact, Nigeria and Ethiopia’s development paths have been
interrupted by wars, political instability, and external shocks,
showing that development is non-linear and complex.
 For example, Nigeria’s oil boom did not lead to widespread
development but rather exacerbated corruption and inequality,
contradicting modernization theory’s expectations.
 Critiques….
3. Neglect of Historical Exploitation: Modernization
theory ignores how historical events or impacts of
external factors, like colonialism, global trade
imbalances, imperialism, slavery, and global
exploitation, have hurt many countries and held back/
hindered their development, making it seem like their
underdevelopment is only their own fault.
• It treats poor countries as backward rather than
recognizing how historical exploitation by richer
countries created global inequalities and perpetuating
dependency and underdevelopment.
 For example, countries like the Democratic Republic of
Congo were rich in resources but suffered long-term
economic disturbance due to colonial exploitation.
 Critiques….
4. Overemphasis on Technology and Capital:
Modernization theory puts too much focus on investment,
technology transfer, and capital accumulation or money,
while minimizing the importance of local culture, political
systems, strong institutions, and people’s participation in
shaping development.
5. Underestimation of Internal Contradictions:
modernization theory often ignores problems that happen
within many developing countries that followed
modernization policies, like rising high inequality,
environmental degradation, pollution, or authoritarian
rule/ governments.
 The theory does not explain why these issues still occur or
rarely explains such contradictions.
 Critiques….
6. Fails to account for diversity: Modernization theory fails to
recognize that every culture and country is different, assuming
all societies develop the same way, when in reality, development
paths vary widely based on history, values, and local conditions.
 In short, while theories like Huntington’s Political Modernization
and Parsons’ Structural Functionalism provide useful insights into
the political and social changes necessary for development, their
success depends on local contexts, institutions, and cultural
adaptation.
 The modernization school laid foundational ideas but is limited by
its one-size-fits-all approach and failure to consider external
influences and structural barriers faced by many developing
nations.
 2.2 The Marxian Concept of Development
2.2.1 Marxism: A General Overview
 Marxism, rooted in the works of Karl Marx, provides a critical
framework to understand development from a historical and class
perspective.
 Marxist development theory is a way of understanding how
societies grow and change over time. It focuses on three main
ideas:
1. Class struggle: Society is divided into different social classes
(for example, the rich and the poor, or the owners and the
workers). These groups have conflicting interests, and their
struggles against each other drive social change.
2. Exploitation: In a capitalist system, the ruling class (those who
own land, factories, and resources) becomes wealthy by taking
advantage of the working class (those who sell their labor). This
unequal relationship is a key reason for social inequality.
 Marxian….
3. Historical materialism: Marx believed that it is not ideas
or religion that shape society the most, but the economic
system—how people produce and share goods. Changes in
the economic base (like technology or ownership of
resources) lead to changes in politics, culture, and social
life.
In short, Marxist development theory says that social and
economic progress happens through conflicts between social
classes, caused by unequal control of resources, and that
material (economic) conditions, not just ideas, are what
drive history forward.
Thus, according to Marxist theory, the way an economy
develop depends mostly on the struggles between different
social classes.
 Marxian….
 In a capitalist society, there are two main classes:
 The bourgeoisie: This is the ruling capitalist class. They own
businesses, factories, and land. They control most of the wealth
and make profits by employing workers.
 The proletariat: This is the working class. They do not own
the means of production (factories, machines, or land), so they
have to work for the bourgeoisie in exchange for wages.
 These two classes have opposing interests:
 The bourgeoisie wants to maximize profit.
 The proletariat wants fair wages and better working conditions.
 Because of these conflicts, Marxists believe that class struggle
is what drives economic and social change throughout
history.
 Marxian….
 To be brief, economic development, according to Marxism,
happens through the constant tension and conflict between the
rich (who own resources) and the workers (who provide labor).
 According to Marxism, capitalism inherently produces inequality
and exploitation because the bourgeoisie extracts surplus value
(profit) from the labor of the proletariat.
 Therefore, from a Marxist point of view, development is not only
about having more economic growth (more industries, technology,
or higher income). It is about creating deep social change that
removes inequality and exploitation.
 This means:
• Class consciousness: Workers must become aware of their
position in society and realize that they are being exploited by the
ruling class. Once they understand this, they can unite to demand
change.
 Marxian….
• Redistribution of the means of production: The “means
of production” (factories, land, tools, and resources used
to produce goods) should not belong only to a few rich
people. Instead, they should be shared or collectively
owned so that everyone benefits from production.
• Restructuring the economic system: The whole
economic structure needs to change from one based on
profit and exploitation (capitalism) to one based on
equality and cooperation (socialism or communism).
In short, for Marxists, true development means changing
society completely by ending class inequality, sharing
resources fairly, and building an economic system that
benefits everyone, not just the rich.
 Marxian….
 The Relevance of Marxist development theory today:
1. It explains the rise of inequality, labor exploitation in global
capitalism, and social movements.
2. It also influences critical perspectives on capitalism (e.g., in
environmental justice or labor rights). To make more clear this
relevance:
 Marxist theory has strongly influenced/persuaded how people
critically analyze capitalism, that is, how they question and
challenge its fairness and effects on society.
 It has shaped many modern movements and fields, such as:
 Environmental justice: Critics argue that capitalism often leads to
the overuse of natural resources and environmental destruction
because companies focus on profit rather than sustainability. Poor
and working-class communities usually suffer the most from
pollution and climate change, which reflects the same kind of
exploitation Marx described.
 Marxian….
 Labor rights: Marxist ideas help explain how workers
are often underpaid and overworked while employers
and corporations take most of the profit. This has inspired
trade unions, minimum wage laws, and worker
movements fighting for fair treatment and better working
conditions.
 In short, Marxist theory helps people critically question
capitalism, especially when it causes environmental harm
or worker exploitation, and it encourages movements that
fight for fairness, equality, and sustainability.
 Marxian….
2.2.2 Economic Theories of Marx
 Marx’s economic theories emphasize the role of capital
accumulation, class struggle, and modes of production in shaping
development.
 He believed that capitalism would eventually lead to its own
downfall through crises like overproduction and inequality,
creating conditions for socialism. To make clear this idea more:
 Marx believed that capitalism contains the seeds of its own
destruction—meaning that the system will eventually collapse
because of the problems it creates.
 Here’s how:
• Overproduction: In capitalism, businesses compete to produce
more goods and make more profit. But after a point, they produce
more than people can afford to buy. This leads to economic
crises (like recessions), factory closures, and unemployment.
 Marxian….
• Inequality: Capitalism allows the rich (owners) to get richer
while the workers stay poor. This growing gap causes social
tension and class conflict. As these problems get worse,
workers become more aware of the unfair system and begin
to unite and demand change.
• Marx believed this would eventually lead to the fall of
capitalism and the rise of a new system, that is socialism,
where wealth and production are shared more equally.
• To sum up, Marx said capitalism would collapse from its own
internal problems, such as economic crises and inequality, and
that these problems would push society toward socialism.
 According to Marxist development theory, real or true
development cannot happen within a capitalist system,
because capitalism is based on inequality and exploitation.
 Marxian….
 The rich (capitalist class) control most of the wealth and power,
while the working class produces the goods but gets only a small
share of the benefits.
 Marxists believe that to achieve real progress:
 The capitalist system must be overthrown–meaning society
has to move away from a system that prioritizes profit for a few.
 Wealth and power must be redistributed–resources, land, and
decision-making power should be shared more equally among all
people, not just the selected a few.
 Only by doing this can society become fair, equal, and free from
exploitation.
 Thus, for Marxist, true development means ending capitalism
and creating a system where wealth and power are shared
fairly,which leading to equality and social justice.
 Marxian….
 This view contrasts sharply with modernization theory’s focus on
industrialization and economic growth within capitalist
frameworks.
 This means Marxist development theory is very different from
modernization theory. How?
• While modernization theory argues that developing countries can
progress by following the same path as Western capitalist nations
through industrialization, technological advancement, and
economic growth.
• Marxist theory disagrees with this idea.
• Marxists believe that capitalism itself causes inequality and
exploitation, so true development cannot happen within a
capitalist system.
• Instead, society needs major social and economic changes (like
wealth redistribution and ending class divisions) to achieve real
progress.
 Marxian….
 In short, Modernization theory sees development as economic
growth within capitalism, while Marxist theory sees development
as transforming or replacing capitalism to create equality and
justice.
 Successes Using Marxian Perspectives
 Cuba is a classic example of a country that adopted Marxist
principles by overthrowing capitalist structures and implementing
socialism.
 Despite economic sanctions and challenges, Cuba has achieved
notable successes in social development indicators like healthcare
and education.
 However, its economic growth has been limited due to isolation and
inefficiencies, reflecting Marxism’s promise and challenges.
 China offers a unique case. Initially, it followed Marxist-Leninist
socialism with state control over the economy.
 In the late 1970s, it introduced market reforms, combining
 Marxian….
 This hybrid approach led to unprecedented economic
growth and lifted millions out of poverty, demonstrating a
flexible adaptation of Marxist economic theory to modern
conditions.
 Ethiopia, under the Derg military regime (1974-1991),
pursued Marxist-Leninist policies, including land
nationalization and state control of industry.
 The Derg’s Marxist policies aimed to dismantle feudal
landholding and promote state-led development.
 Land reform improved rural equity, but political
repression, famine, and economic inefficiency showed the
challenges of implementing Marxism in a context of weak
institutions and external isolation or pressure.
 Marxian….
Criticisms of Marxist development theory:
 Although Marxist development theory has been very
influential in explaining inequality and class struggle, it
faces several important criticisms:
1. Economic determinism:
 Critics say Marxist theory focuses too much on the
economy as the main force shaping society.
 It assumes that all social and political changes come
mainly from economic factors (like class struggle and
production), and it ignores other influences, such as roles
of politics, ideas, values, and human choice in shaping
society.
 Marxian….
2. Neglects culture and gender:
 Marxist theory often overlooks cultural and gender issues.
 It does not fully explain how cultural traditions, beliefs,
and gender relations influence development.
 Feminist and cultural theorists argue that these factors are
just as important as economic structures.
 For example, women’s roles in production and social change
are often underrepresented in classical Marxist analysis.
3. Implementation Difficulties:
 Another major criticism of Marxist development theory is
that it is very difficult to put into practice.
 Marxian….
 When some countries tried to apply Marxist or socialist ideas,
like the former Soviet Union (USSR) or other state-socialist
systems, the results were often failing to achieve the equality
and progress the theory promised.
 These socialist governments aimed to create equality by
controlling resources and planning the economy, but in practice,
many faced serious problems, like lack of democracy, corruption,
limited personal freedom, and economic inefficiency.
 Because of these failures, critics argue that Marxist theory may
sound good in theory, but does not always work well in real-
world societies when applied by governments.
 In short, Marxist development theory is criticized for being too
focused on economics, for ignoring culture and gender, and for
being hard to apply effectively, as seen in the failures of state-
socialist experiments.
 Dependency Theory….
2.3 The International Dependency Revolution
2.3.1 The Dependency Theory
• Dependency theory emerged in the 1960s and 1970s, largely from
Latin American scholars like Andre Gunder Frank and Fernando
Henrique Cardoso, as a critique of modernization theory.
• Dependency theorists argue that underdevelopment in many
countries is not a stage that can be overcome simply by following
Western models but a result of their integration into the global
capitalist system.
• In other words, dependency theorists argue that poor countries are
not underdeveloped because they have not yet followed the same
path as Western countries, but they are underdeveloped because
their role in the world economy or global capitalist system keeps
them dependent on and exploited by richer countries.
 Dependency Theory….
• According to this theory, the world economy or global system is
divided into a wealthy “core” countries (developed,
industrialized) and a poor “peripheral” countries
(underdeveloped, resource-exporting).
• Peripheral countries are structurally dependent on the core,
which leads to exploitation and hinders autonomous
development.
• Mechanisms of Dependency through which core exploits the
periphery include:
 Unequal trade relationships
 Control over technology and finance by core nations
 Brain drain and capital flight
 Debt and aid dependency
 Extraction of resources and wealth, keeping the periphery
dependent and underdeveloped.
 Dependency Theory….
• Hence, gap between rich and poor nations can be continued by
rich nations. Trade may further widen the gap.
• This situation happens because poor countries usually export
raw materials such as coffee, cotton, oil, or minerals to rich
countries.
• The rich countries then use these materials to manufacture
finished goods like clothes, machines, or electronic products.
• Afterwards, they sell these value added goods back to the
poorer countries at much higher prices.
• In this process, rich countries make greater profits, while poor
countries earn very little from their export earnings to pay for
their imports and remain dependent on the rich ones.
• As a result, the gap between rich and poor countries continues
to grow, and the poorer nations challenge to develop their own
industries.
 Dependency Theory….
• Development in poorer (or peripheral) countries is limited
because their economic relationship with rich countries is
unequal.
• When these poorer countries try to copy Western models of
development, they often fail since they do not take into account
the global power imbalance, that is, how rich countries control
trade, technology, and capital in ways that keep poor countries
dependent.
• In short, poor countries can not develop easily because the world
system is unequal, and simply copying Western methods does
not work when power and resources are not shared equally.
• Dependency theorist, thus, argue that the most significance
hindrance to the development of poor countries is not the
shortage of capital or management, but the present international
system.
 Dependency Theory….
• Thus, dependency theorists argue that for underdeveloped nations
to develop, they must break their ties with developed nations and
the world market as well as pursue internal growth for self-
reliance; otherwise they remain economically vulnerable to the
world market.
• One of the solution, this theory suggested that poorer countries
should embark on policy of import substitution industrialization
to reduce dependency so that they need not purchase the
manufactured products from the richer countries.
• Another way is that peripheral countries emphasized national
sovereignty, regional integration, and resistance to foreign
control (e.g., IMF, World Bank policies).
 Dependency Theory….
• Contrary to modernization theory, dependency theory states
that not all societies progress through similar stages of
development.
• Periphery states have their 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.
• In short, dependency theory shifted the focus from internal
problems to external constraints on development. Though
criticized later, it remains vital for understanding global
inequality
[Link] Failures and Challenges of Dependency Models
 Many Latin American countries like Brazil and Argentina
experimented with dependency-inspired policies such as import
substitution industrialization (ISI) to reduce reliance on
 Dependency Theory….
 While ISI led to some industrial growth, it often resulted in
inefficiencies, debt crises, and inflation due to limited
domestic markets and continued dependence on foreign
capital and technology.
 Dependency theory argues that countries like Nigeria and
Ethiopia remain underdeveloped because they are trapped in
a global economic system where developed countries exploit
them through unequal trade and control over resources.
 For instance, Nigeria’s oil wealth has often benefited
multinational corporations and local elites rather than broad
economic development.
 Ethiopia’s economy remains heavily dependent on foreign
aid and export of raw materials, reinforcing its peripheral
status and limiting independent growth.
 Dependency Theory….
 All these suggest that breaking dependency requires strong
internal reforms alongside addressing external inequalities.
[Link] Criticisms of dependency theory
 The following are some of criticism of the dependency
theory.
1. Over-Determinism: While dependency theory highlights
important external constraints, it sometimes ignores the
role of internal factors such as corruption, ethnic conflicts,
policy mismanagement, and poor governance. Thus, it
lacks of understanding of the needs of developing
countries.
 For instance, Nigeria’s development has been hampered not
only by external dependency but also by internal political
instability and like corruption, seen in Nigeria.
 Dependency Theory….
 Another is its pessimism/skepticism/doubt about
breaking/escaping from/ dependency, while countries like
China show it is possible through strategic reforms and
global engagement.
 To clear this idea, this means that the theory is often too
negative/doubt, suggesting that poor countries cannot
escape dependence on rich ones. However, China’s
experience shows that it is possible to overcome
dependency by making smart economic reforms and
actively participating in global trade and investment.
 Ethiopia’s development struggles also stem from internal
ethnic tensions and weak institutions, suggesting that
breaking dependency requires both internal reforms and
external structural changes.
 Dependency Theory….
2. Limited Success of ISI: Import Substitution Industrialization
often failed due to inefficiency, lack of competitiveness, and
limited domestic markets (e.g., in Argentina, Mexico, and
Nigeria).
3. Neglect of Class and Internal Conflict: The theory tends to
treat poor countries as monolithic/uniform entities, ignoring
internal class divisions and elite participation with global
systems.
 In other words, this means the theory often views poor countries
as if everyone inside them has the same interests and experiences.
 In reality, there are different social classes, for example, rich
elites and poor workers. Sometimes, the local elites in these
countries actually cooperate with rich countries and benefit from
the global system, while the poorer people continue to suffer. The
theory ignores these internal class differences and conflicts.
 Dependency Theory….
4. Underestimated the Power and Influence: This theory
underestimated the power and influence that underdeveloped
countries have their over development issues.
5. Emerging Economies Challenge the Theory: The rise of
countries like South Korea, China, and Vietnam, which engaged
with the global economy but still achieved development,
challenges the assumption that dependency inevitably leads to
underdevelopment.
6. Neglect of Global Interdependence: The theory emphasizes
dependency but often overlooks how globalization can also offer
opportunities (e.g., technology transfer, global markets).
 In conclusion, dependency theory helped expose the historical and
structural causes of global inequality.
 However, its deterministic nature and policy limitations reduce its
practical relevance today, though some of its insights remain
valuable.
 2.4 Alternative Approaches
• Alternative approaches emerged as critiques and expansions
of traditional development models like modernization,
dependency, and neoliberalism.
• They focus on a broader, more holistic understanding of what
development should mean, emphasizing fairness,
environment, culture, and human dignity.
• These include sustainable development, human-centered
development, post-development theory, and others that
emphasize equity, environmental protection, cultural
diversity, and social justice.
2.4.1 Sustainable Development Approach
 Defined by the Brundtland Report (1987) as “development
that meets the needs of the present without compromising the
ability of future generations to meet their own needs.”
 Alternative….
 The core idea of sustainable development is that it seeks a balance
between economic growth, environmental protection, and social
equity/ inclusion, often called the “three pillars” of sustainability.
[Link] Importance of Sustainable Development Approach
 Earlier models often prioritized rapid economic growth,
sometimes at the expense of the environment (deforestation,
pollution) or social equity (widening inequality).
 Sustainable development insists these cannot be sacrificed
because:
– Environmental degradation undermines future prosperity.
– Social inequalities lead to instability and injustice.
 Examples:
 Promoting renewable energy initiatives to reduce pollution
while creating jobs.
 Alternative….
 Ensuring access to clean water for all communities.
 Policies that support both economic progress, eco-tourism,
green cities and protect ecosystems.
 In addition, one of a real-World example that shows this approach
in practice is a Costa Rica’s Environmental Policies.
 Costa Rica has invested heavily in renewable energy and forest
conservation while promoting eco-tourism.
 This has helped preserve biodiversity, create jobs, and maintain
economic growth without harming the environment.
 Another a real-World example is UN Sustainable Development
Goals (SDGs).
 These 17 goals set by the UN integrate economic, social, and
environmental objectives, such as ending poverty, ensuring clean
water, and combating climate change.
 Alternative….
[Link] Critiques on Sustainable Development Approach
 Some argue sustainability is often co-opted by neoliberal
institutions without genuine environmental commitment.
 To make this idea more clear, some people say that the
idea of sustainability is sometimes used by big
organizations or governments (like banks, corporations,
or international institutions) just for their own benefit,
rather than to truly protect the environment.
 In other words, they talk about being “green” or
sustainable, but their actions may still prioritize profits
over real environmental care.
 Alternative….
2.4.2 Human-Centered Development Approach
• The central theme of human-centered development
approach is that it puts people’s well-being and dignity at
the center rather than just economic indicators.
• It focuses on improving healthcare, education, freedom,
empowerment, participation, and gender equality.
• This approach is inspired by thinkers like Mahbub ul Haq
and Amartya Sen.
• For example, the Human Development Index (HDI) is
based on this model.
• Thus, this approach challenges development models that
focus narrowly on GDP or income, arguing that true
development means people can live fulfilling lives and
make meaningful choices.
 Alternative….
2.4.3 Post-Development Theory
• The main notion of Post-development theory is a critical
perspective that challenges mainstream development as a
Western, Eurocentric concept that often imposes foreign values
and systems on other cultures, what some call cultural
imperialism.
• Radical critique by scholars like Arturo Escobar, argues that
“development” itself is a Western ideological construct or
Western-imposed idea.
[Link] Key Arguments of the theory
 Development is not a neutral process; it often serves the interests
of rich countries or elites. In other words, development is not
neutral or fair. Often, it is designed in ways that benefit rich
countries or powerful elites rather than the majority of people
in poorer countries.
 Alternative….
 Post-Development Theory claims development discourse has
marginalized local cultures, indigenous knowledge systems,
and local autonomy by pushing Western ideas of “progress.”
• Example, Post-development theory argues that instead of
large-scale industrial farming imposed by international
agencies, local communities might focus on traditional
farming methods adapted to their environment.
 Instead of “developing” countries to follow a Western path,
post-development advocates for local solutions, diversity, and
self-reliance.
• One of Real-World Example that reflects the post-
development theory in practice is that Indigenous-led
Development in Bolivia.
 Alternative….
 Many indigenous groups in Bolivia have pushed back against
Western-style development projects, advocating for community
control of resources, respect for traditional knowledge, and
autonomy in decision-making.
• Another Real-World Example that reflects the practice of this theory
is an appropriate Technology Movements.
 Small-scale, locally designed technologies (like solar cookers or
hand pumps) that fit cultural and environmental contexts rather than
large-scale imported solutions.
[Link] Critiques of Post-Development Theory
 Critics argue post-development lacks practical solutions and over-
romanticizes/idealizes/exaggerates the positives of traditional societies.
 In other words, critics say that post-development thinking does not
offer real or practical ways to solve development problems. It also
tends to idealize traditional societies, making them seem perfect or
better than modern societies, which is unrealistic.
 Human Development….
2.5 Human Development and Capability Approach
 The Human development approach and the capability
approach are frameworks developed by economists and
philosophers to re-conceptualize/redefine the meaning of
development.
 These approaches, primarily associated with Amartya Sen
and the United Nations Development Program (UNDP),
offer a departure from traditional economic measures like
GDP or income and focus on human well-being and
capabilities.
 Let us examine deeper into each and explore how they
redefine the concept of development.
 Human Development….
2.5.1 Human Development Approach
• The Human Development Approach was popularized by
the UNDP, particularly through its Human Development
Reports.
• While it builds upon Sen’s work, it emphasizes the
importance of human beings as the central focus of
development, rather than just the growth of economic
indicators.
[Link] Key Principles of the Human Development
Approach
1. Human beings at the center of development:
• Instead of focusing solely on economic growth, the
approach emphasizes the well-being of individuals, their
choices, and their capabilities.
 Human Development….
2. Multi-dimensional:
 It shifted the focus from economic growth alone to
improving people’s well-being, thus it is viewed
development as multi-dimensional process, which includes
economic, social, cultural, and political factors.
 Health (life expectancy, nutrition), education (literacy, years
of schooling), and political freedom (political and personal
liberties, gender equality, human rights, participation,
security) are seen as crucial components of development.
3. Expansion of choices:
 It highlights how development should enable people to have
more opportunities to live a life they value and choose, not
just/not only focus on money or economic growth.
 Human Development….
• So, when we say “development should expand people’s
choices,” it means development should give people more real
opportunities and freedom to decide what kind of life they
want to lead, not just make them richer.
 For example:
 The choice to get an education.
 The choice to work in a job you like.
 The choice to participate in your community.
 The choice to live a healthy and safe life.
• In general, this includes access to health care, education,
economic opportunities, and a democratic environment.
• The most famous tool that came from the Human Development
Approach and developed by the UNDP to measure
development is the Human Development Index (HDI).
 Human Development….
• HDI helps measure progress in human development
beyond GDP and it combines three key indicators/key
dimensions, namely:
1. Life expectancy (Health)
2. Education (Mean and expected years of schooling)
3. Income (Standard of living)
 The HDI aims to provide a more holistic understanding of
development than traditional economic indicators alone.
 The HDI of UNDP measures countries based on these
broader dimensions (health, education, and living
standards) instead of GDP alone, providing a more
comprehensive understanding of development.
 Human Development….
[Link] How Human Development Approach Redefines
Development
• Beyond Income: Development is about access to education,
healthcare, and political freedom, not just money. So, human well-
being, as reflected in a variety of quality-of-life factors, is
prioritized.
• Focus on Expanding Freedoms: It is about creating more
opportunities for people to choose how they live, not just the
accumulation of wealth.
• Human-centric/Focus on People: Development is not just about
improving the economy, money, or markets in theory. It is mainly
about improving people’s lives by giving them better health,
education, opportunities, and freedom to make choices that matter
to them.
• In other words, real development means helping people live better
and freer lives, not just making the economy grow.
 Human Development….
2.5.2 Capability Approach (Amartya Sen): A Shift in
Development Thinking
• The Capability Approach was developed by Amartya Sen
in his seminal/important work, “Development as
Freedom” (1999), and it is closely related to the Human
Development Approach.
• While Sen’s ideas contributed to the UNDP’s Human
Development Index, his framework provides a deeper
philosophical foundation for understanding development.
• The core idea of the approach is that development as
expanding people’s freedoms and capabilities, not just
income.
 Human Development….
[Link] Key Principles/Core Features of the Capability
Approach
A. Capabilities (what they are free to do):
 The central concept in Sen’s approach is “capability.”
• Capabilities refer to the real opportunities or freedoms
people have to do things they value in life.
• In other words, it is not just about having resources or
money, but about being truly free to use them.
• Key question for capabilities is that “What are the real
opportunities or freedoms available to an individual to
achieve well-being?”
 Human Development….
• This might include:
 The freedom to get an education,
 The freedom to work in a job they choose,
 The freedom to live a healthy life,
 The freedom to participate in society.
• In short, capabilities are potential opportunities (e.g., the
ability to go to school, the ability to be healthy, the ability to
participate in society) that they represent the freedom to
achieve well-being, but do not guarantee/ ensure any
particular outcome.
• For, example, the capability to be educated means that
education is available, but it does not ensure someone will
actually get an education.
 Human Development….
• Practical example, a child in a rural village of developing country
has the capability to attend school (there is a school in the village,
and education is free).
B. Functionings (what people do):
 Functionings are the actual achievements or states of being and
doing that a person realizes, based on their capabilities.
 They are the tangible/real outcomes of the opportunities or freedoms
that are available to them. These are the actual results that happen
when people use the opportunities or freedoms they have.
 In other words, while capabilities give people the chance to do
something, functionings are what they actually manage to do or
achieve.
 Functionings focus on the actual outcomes or results from the
freedoms they have (what they are able to achieve with their
capabilities).
 Human Development….
 The Key question for functionings is that “What do people
actually do or become with the capabilities they have?”
 In short, functionings are achievements (e.g., being healthy,
being literate, being socially and politically active) that they
represent what individuals actually do or become using the
opportunities available to them.
 For example, the functioning of education is when a person
actually becomes educated, that is, they complete their studies,
gain knowledge, and use it in life.
 Practical example, if the child actually attends school in a
rural village of a developing country, the functioning is the
child becoming educated. If the child does not attend due to
factors like poverty or work obligations, the functioning is not
being educated despite having the capability to attend.
 Human Development….
C. Freedom as the central idea:
 Sen argues that development should be seen as the
expansion of human freedoms.
 It is about giving people the ability to choose and pursue a
life they value, not simply about wealth accumulation or
access to material goods.
D. Agency and choice:
 Sen emphasizes the importance of individuals as agents or
active decision-makers who can make choices or decisions
about their own lives so they are not passive recipients of
help or resources.
 Thus, development should enable people to be active
participants in their own well-being, rather than passive
recipients of aid or charity.
 Human Development….
For example, a student may have the opportunity
(capability) to go to university. Exercising agency, they
choose which course to study, which college to attend, or
even whether to continue their education at all. Their
decisions show how they can shape their own life, not
follow what others decide for them.
E. Focus on Empowerment/Enabling:
 Development should enhance people’s capabilities to
make meaningful choices in their lives.
F. Equality of Capabilities:
 Development should make sure there is equality/fairness
not only in income but also in real opportunities, like
health, education, and participation.
 Human Development….
[Link] How Capability Approach Redefines Development
 Focus on capabilities, not commodities:
 Traditional development approaches often focus on the
availability of goods and services.
 Sen, however, focuses on whether people can actually
convert those goods and services into valuable outcomes,
i.e., whether they have the ability to use them in ways that
enhance their well-being.
 Development as an empowerment process:
Development is not only about improving material wealth
but also about improving people’s ability to live the kind of
life they value.
This includes access to healthcare, education, and political
freedoms.
 Human Development….
 The importance of equality:
 The capability approach stresses the importance of addressing
inequalities in capabilities, not only income.
 This means that development should aim to reduce disparities in
people’s opportunities to live a fulfilling life.
[Link] Criticisms of the Capability Approach
 Measurement Challenges: It is difficult/hard to quantify/ measure
capabilities and compare them across individuals and societies.
• This is because they deal with people’s real freedoms and choices,
which are not easy to count or compare between different people or
countries.
• For example, two countries might have the same average life
expectancy. However, in one country, people might have easy
access to good hospitals and nutritious food, while in the other,
people might struggle to get proper healthcare.
 Human Development….
• Even though the numbers look similar, people’s real
opportunities to live healthy lives are very different. This shows
why it is hard to measure capabilities just by using statistics.
 Normative Basis: Critics argue it reflects philosophical ideals that
may not fit all cultural contexts.
 Some critics say that the Capability Approach is based on certain
philosophical ideals or moral ideas, like what a “good” life should
be, that might not match the values or beliefs of all cultures.
 Or, critics argue that the approach is built on Western ideas about
freedom and well-being, which may not fit every society’s
culture or traditions.
 For instance, in some cultures, community and family duties are
valued more than individual freedom. The Capability Approach’s
focus on personal choice might not fully capture those cultural
priorities.
 Human Development….
 Implementation Difficulty: Translating the framework into concrete
policies can be complex without clear metrics/measurements.
 In other words, it can be hard to turn the Capability Approach into
real policies because there are no simple ways to measure people’s
capabilities. Governments might struggle to know what to prioritize
or how to track progress.
 Also, the approach might ignore bigger structural problems like
economic inequality, social hierarchies, or the effects of capitalism,
which can limit people’s opportunities even if policies try to improve
individual freedoms.
 For example, a government may want to improve people’s education
and health opportunities. But it is hard to measure exactly how much
freedom or capability people actually have to use these services.
Even if schools and hospitals are available, factors like poverty,
discrimination, or social norms might stop some people from
benefiting. This shows how difficult it is to turn the Capability
Approach into practical policies.
 Comparison….
2.6 Comparison Between the Two Approaches
Human Development Approach Capability Approach
Focuses on human well-being and Focuses on individual freedoms and
quality of life real opportunities
Uses the practical measurement and Focuses on freedom and agency as key
policy tool like Human Development indicators, has less defining a specific
Index (HDI) to measure progress so it index or formula with more qualitative
more quantitative aspects
aspects of human life so it gives more
weight to subjective well-being
Emphasizes health, education, and Emphasizes capabilities to do and be
income as key dimensions what one values
Policy Goal: Improve access to basic Policy Goal: Expand real freedoms/
needs like health, education, and choices (e.g., access to education,
income healthcare, political participation)
 Impact….
2.7. Impact of Human Development and Capability
Approaches on the Concept of Development
 Re-thinking Poverty:
• Traditional View: Poverty is a lack of income.
• Human Development & Capability View: Poverty is the
lack of freedom to achieve well-being.
• Thus, poverty is about capability deprivation, not only
income deprivation.
 Equality:
• Development is not only about redistributing wealth. It is
also about ensuring that everyone has equal capabilities to
live the life they value (healthcare, education, political
freedom).
 Impact….
 Empowerment:
• Development is about empowering individuals to make
their own choices, not only about improving material
wealth.
 Policy Implications:
• Governments should work on removing barriers that stop
people from developing their capabilities. This means
making sure everyone can get healthcare, education, and
fair chances to earn a living or economic opportunities.
• In other words, development policies should aim to
expand people’s choices and enhance freedoms (e.g.,
creating better education systems, improving healthcare
access, promoting political rights).
 Impact…
Sustainability and Social Justice:
 Both approaches emphasize that true development must be
sustainable and equitable.
 It cannot simply be about material wealth; it must take into account
social justice, equality, and the ability to live a fulfilling life for all.
 The Conclusion of both approaches presented as follows.
 Human Development Approach: Shifts focus from GDP and
economic growth to human well-being and freedoms.
 Capability Approach: Emphasizes real opportunities and freedoms as
the essence of development, not just material wealth.
 Both approaches argue for human-centered development that focuses
on expanding capabilities, ensuring equality of opportunities, and
enhancing people’s freedom to live the life they value.