Development theory
Encyclopedia
Development theory is a conglomeration of theories
about how desirable change in society is best to be achieved. Such theories draw on a variety of social scientific disciplines and approaches.
postulated stages of development applying to every country. Samuel Huntington
considered development to be a linear process which every country must go through. Modernization Theory, in contrast to Classical Liberalism
, viewed the state
as a central actor in modernizing "backward" or "underdeveloped" societies. The Action theory
of Talcott Parsons
defined qualities that distinguished "modern" and "traditional" societies. Education
was viewed as key to creating modern individuals. Technology
also played a key role in this development theory because it was believed that as technology was introduced to lesser-developed countries it would spur economic growth
. Another author who has written on the process of modernization is David S. Landes but not so much as a sheer theory but rather as a set of powerful propositions of the direction of world history.
One key factor in Modernization Theory is the belief that development requires the developed countries to aid developing countries to learn from their own progress. In addition, it was believed that the lesser developed countries could then grow faster than developed countries and catch up; and that it is possible for equal development to be reached.
as a result from internal conditions that differ between economies, dependency theory understood development and underdevelopment as relational. It saw the world's nations as divided into a core of wealthy nations which dominate a periphery of poor nations whose main function in the system is to provide cheap labour and raw materials to the core. It held that the benefits of this system accrue almost entirely to the rich nations, which become progressively richer and more developed, while the poor nations, which continually have their surplusses drained away to the core, do not advance. Developed in the 1950s, dependency theory shared many points with Rosa Luxembourg's and V.I. Lenin's earlier, Marxist, theories of imperialism; and dependency theory was embraced by many Marxists and neo-Marxists.
Dependency theorists held that for underdeveloped nations to develop, they must break their ties with developed nations and pursue internal growth. One type of policy crafted from this insight was Import substitution industrialization.
Modernisation theory failed to explain some critical issues patterning the underdeveloped nations such as demographic trends, difference in culture, geographical position, etc.
in, among other writings, World Systems Analysis (Durham NC: Duke University Press, 2004), and focuses on inequality
as a separate entity from growth in development and examines change in the global capitalist
system. One distinguishing feature of this theory is a distrust for the state and a view in which the state is seen as a group of elites and that industrialization cannot be equated with development. Out of this theory stem anti-systemic movements which attempt to reverse the terms of the system's inequality through social democratic and labor movements.
and therefore the take-off period in development is unique to each country. State Theory emphasized the effects of class relations and the strength and autonomy of the state on historical outcomes. Thus, development involves interactions between the state and social relations because class relations and the nature of the state impact the ability of the state to function. Development is dependent upon state stability and influence externally as well as internally. State Theorists believe that a developmentalist
state is required for development by taking control of the development process within one state.
around the turn of the 20th century, when he was analyzing the developmental possibilities that existed for the economy and civilization in the Russian empire
, and the likely future of the Tsarist regime in Russia. It was the basis of his political strategy of permanent revolution
, which implied a rejection of the idea that a human society inevitably developed through a uni-linear sequence of necessary "stages"
. At first, Trotsky intended this concept only to describe a characteristic evolutionary pattern in the worldwide expansion of the capitalist mode of production from the 16th century onwards, through the growth of a world market which connected more and more peoples and territories together through trade
, migration
, and investment
. His focus was also initially mainly on the history of the Russian empire, where the most advanced technological and scientific developments co-existed with extremely primitive and superstitious cultures. However, in the 1920s and 1930s, he increasingly generalised the concept of uneven and combined development to the whole of human history, and even to processes of evolutionary biology, as well as the formation of the human personality
.
Theory
The English word theory was derived from a technical term in Ancient Greek philosophy. The word theoria, , meant "a looking at, viewing, beholding", and referring to contemplation or speculation, as opposed to action...
about how desirable change in society is best to be achieved. Such theories draw on a variety of social scientific disciplines and approaches.
Modernization theory
Modernization Theory is a theory of development which states that the development can be achieved through following the processes of development that were used by the currently developed countries. Scholars such as Walt Rostow and A.F.K. OrganskiA.F.K. Organski
Abramo Fimo Kenneth Organski was Professor of Political Science at the University of Michigan, the founder of Power transition theory and a co-founder of Decision Insights, Inc. His pioneering work spanned several decades, and focused on specific aspects of world politics, including: political...
postulated stages of development applying to every country. Samuel Huntington
Samuel P. Huntington
Samuel Phillips Huntington was an influential American political scientist who wrote highly-regarded books in a half-dozen sub-fields of political science, starting in 1957...
considered development to be a linear process which every country must go through. Modernization Theory, in contrast to Classical Liberalism
Classical liberalism
Classical liberalism is the philosophy committed to the ideal of limited government, constitutionalism, rule of law, due process, and liberty of individuals including freedom of religion, speech, press, assembly, and free markets....
, viewed the state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
as a central actor in modernizing "backward" or "underdeveloped" societies. The Action theory
Action theory (sociology)
In sociology, action theory refers to the theory of social action presented by the American theorist Talcott Parsons.Parsons established action theory in order to integrate the study of social order with the structural and voluntaristic aspects of macro and micro factors...
of Talcott Parsons
Talcott Parsons
Talcott Parsons was an American sociologist who served on the faculty of Harvard University from 1927 to 1973....
defined qualities that distinguished "modern" and "traditional" societies. Education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
was viewed as key to creating modern individuals. Technology
Technology
Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...
also played a key role in this development theory because it was believed that as technology was introduced to lesser-developed countries it would spur economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
. Another author who has written on the process of modernization is David S. Landes but not so much as a sheer theory but rather as a set of powerful propositions of the direction of world history.
One key factor in Modernization Theory is the belief that development requires the developed countries to aid developing countries to learn from their own progress. In addition, it was believed that the lesser developed countries could then grow faster than developed countries and catch up; and that it is possible for equal development to be reached.
Dependency theory
While Modernization Theory understood development and underdevelopmentUnderdevelopment
Underdevelopment is a term often used to refer to economic underdevelopment, symptoms of which include lack of access to job opportunities, health care, drinkable water, food, education and housing...
as a result from internal conditions that differ between economies, dependency theory understood development and underdevelopment as relational. It saw the world's nations as divided into a core of wealthy nations which dominate a periphery of poor nations whose main function in the system is to provide cheap labour and raw materials to the core. It held that the benefits of this system accrue almost entirely to the rich nations, which become progressively richer and more developed, while the poor nations, which continually have their surplusses drained away to the core, do not advance. Developed in the 1950s, dependency theory shared many points with Rosa Luxembourg's and V.I. Lenin's earlier, Marxist, theories of imperialism; and dependency theory was embraced by many Marxists and neo-Marxists.
Dependency theorists held that for underdeveloped nations to develop, they must break their ties with developed nations and pursue internal growth. One type of policy crafted from this insight was Import substitution industrialization.
Modernisation theory failed to explain some critical issues patterning the underdeveloped nations such as demographic trends, difference in culture, geographical position, etc.
World systems theory
In response to some of the criticisms of Dependency Theory came World Systems Theory, which the division of periphery and center was further divided into a trimodal system consisting of the core, semi-periphery and periphery. In this system, the semi-periphery lies between the core and periphery and is exploited by the core and exploits the periphery. This division aims to explain the industrialization within lesser developed countries. World Systems Theory was initiated by Immanuel WallersteinImmanuel Wallerstein
Immanuel Maurice Wallerstein is a US sociologist, historical social scientist, and world-systems analyst...
in, among other writings, World Systems Analysis (Durham NC: Duke University Press, 2004), and focuses on inequality
Economic inequality
Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...
as a separate entity from growth in development and examines change in the global capitalist
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
system. One distinguishing feature of this theory is a distrust for the state and a view in which the state is seen as a group of elites and that industrialization cannot be equated with development. Out of this theory stem anti-systemic movements which attempt to reverse the terms of the system's inequality through social democratic and labor movements.
State theory
In response to the distrust of the state in World Systems Theory, is state theory. State Theory is based upon the view that the economy is intertwined with politicsPolitics
Politics is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs, including behavior within civil governments, but also applies to institutions, fields, and special interest groups such as the...
and therefore the take-off period in development is unique to each country. State Theory emphasized the effects of class relations and the strength and autonomy of the state on historical outcomes. Thus, development involves interactions between the state and social relations because class relations and the nature of the state impact the ability of the state to function. Development is dependent upon state stability and influence externally as well as internally. State Theorists believe that a developmentalist
Developmentalism
Developmentalism is an economic theory which states that the best way for Third World countries to develop is through fostering a strong and varied internal market and to impose high tariffs on imported goods....
state is required for development by taking control of the development process within one state.
Theory of Uneven and Combined Development
Uneven and combined development is a Marxist concept to describe the overall dynamics of human history. It was originally used by the Russian revolutionary Leon TrotskyLeon Trotsky
Leon Trotsky , born Lev Davidovich Bronshtein, was a Russian Marxist revolutionary and theorist, Soviet politician, and the founder and first leader of the Red Army....
around the turn of the 20th century, when he was analyzing the developmental possibilities that existed for the economy and civilization in the Russian empire
Russian Empire
The Russian Empire was a state that existed from 1721 until the Russian Revolution of 1917. It was the successor to the Tsardom of Russia and the predecessor of the Soviet Union...
, and the likely future of the Tsarist regime in Russia. It was the basis of his political strategy of permanent revolution
Permanent Revolution
Permanent revolution is a term within Marxist theory, established in usage by Karl Marx and Friedrich Engels by at least 1850 but which has since become most closely associated with Leon Trotsky. The use of the term by different theorists is not identical...
, which implied a rejection of the idea that a human society inevitably developed through a uni-linear sequence of necessary "stages"
Modernization theory
Modernization theory is a theory used to explain the process of modernization within societies. The theory looks at the internal factors of a country while assuming that, with assistance, "traditional" countries can be brought to development in the same manner more developed countries have...
. At first, Trotsky intended this concept only to describe a characteristic evolutionary pattern in the worldwide expansion of the capitalist mode of production from the 16th century onwards, through the growth of a world market which connected more and more peoples and territories together through trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
, migration
Human migration
Human migration is physical movement by humans from one area to another, sometimes over long distances or in large groups. Historically this movement was nomadic, often causing significant conflict with the indigenous population and their displacement or cultural assimilation. Only a few nomadic...
, and investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
. His focus was also initially mainly on the history of the Russian empire, where the most advanced technological and scientific developments co-existed with extremely primitive and superstitious cultures. However, in the 1920s and 1930s, he increasingly generalised the concept of uneven and combined development to the whole of human history, and even to processes of evolutionary biology, as well as the formation of the human personality
Personality Development
An individual's personality is an aggregate conglomeration of decisions we've made throughout our lives . There are inherent natural, genetic, and environmental factors that contribute to the development of our personality. According to process of socialization, "personality also colors our values,...
.
Development economics theories
A number of theories are concerned with how economies develop over time. Some of these theories include:- Comparative advantageComparative advantageIn economics, the law of comparative advantage says that two countries will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods...
: Predicts all countries gain if they specialise and trade the goods in which they have a comparative advantage. This is true even if one nation has an absolute advantage over another country. - Rostovian take-off modelRostovian take-off modelThe Rostow's Stages of Growth model is one of the major historical models of economic growth. It was developed by W. W. Rostow...
: A linear theory of development that argues that economic modernization occurs in five basic stages of varying length - traditional society, preconditions for take-off, take-off, drive to maturity, and high mass consumption. - Harrod–Domar model: Explains an economy's growth rate in terms of the level of saving and productivity of capital.
- Dual Sector modelDual Sector modelThe dual-sector model given by Sir William Arthur Lewis winner of the Nobel Memorial Prize in Economics in 1979 is commonly known as the Lewis model, it is a model in developmental economics that explains the growth of a developing economy in terms of a labour transition between two sectors, the...
: Explains the growth of a developing economy in terms of a labour transition between two sectors, a traditional agricultural sector and a modern industrial sector. (Also known as the Lewis model)
Literature
- M. P. Cowen and R. W. Shenton, Doctrines of Development, Routledge (1996), ISBN 978-0415125161.
- Peter W. Preston, Development Theory: An Introduction to the Analysis of Complex Change, Wiley-Blackwell (1996), ISBN 978-0631195559.
- Peter W. Preston, Rethinking Development, Routledge & Kegan Paul Books Ltd (1988), ISBN 978-0710212634.