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Introduction 1
Theories of Development 2
Introduction
a) Modernization theory 2-8
Development and under development theories are based on modernization and dependency of
b)third
Dependency theoryand the process of exploitation and capitalization of developed
world countries 9-16 countries.
c)The theorists describe different models and present their proposition by which stages of social
Participation theory 17-19
progress in developing countries can be achieved as well as the they find out the reasons why
d)they
Marxist thought
are being of Development
dependent on first world countries, the first world countries 20-22
how they politicize
and control poor countries through their help and support in name. Dependency theory shows
how development and underdevelopment countries are linked with development. Modernization
theory shows the economic growth of development and participation theory
Conclusion 23 shows citizens
involvement in development. Marxist thought of development shows relations of production.
References 24
3
Definition of Development
Development means change towards the betterment. It is a positive approach which can make
better for the man, for the society and for the country. It refers to the planned and calculative
change towards a terminal condition. Development is directed towards the dissatisfied conditions
to satisfied condition. Hence, development is a continuous process of change involving social,
political and administrative aspects.
Underdevelopment refers to a situation in which resources are being actively used, but used in a
way which benefits dominant states and not the poorer states in which the resources are found.
Undevelopment refers to a condition in which resources are not being used. For example, the
European colonists viewed the North American continent as an undeveloped area: the land was
not actively cultivated on a scale consistent with its potential.
Theory of development
Economic
Social
Political
Modernization theory
Modernization theory is a theory used to explain the process of modernization within societies.
The theory focuses at the internal factors of a country while assuming that, with assistance,
"traditional" countries can be brought to development in the same manner as developed countries
have. Modernization theory attempts to identify the social variables for social progress and
4
development of societies. Modernization theory not only stresses the process of change but also
the responses to that change. It also looks at internal dynamics while referring to social and
cultural structures and the adaptation of new technologies.
The basic principles of modernization can be derived from the Idea of Progress, which emerged
in the 18th century with the idea that people themselves could develop and change their society.
French philosopher Marquis de Condorcet developed the concept that technological
advancements and economical changes can enable changes in moral and cultural values.
It encourages technological processes which help to control over their environments and
eventually spur social progress.
It looks at internal dynamics while referring to social and cultural structures.
It developed the idea of social evolution which indicates how societies and cultures
develop over time. Societies progress through several stages generally starting at a
simplistic level and then developing into a more complex level.
Societies adapt to their surrounding environments, but they interact with other societies
which further contribute to their progress and development.
The Rostow's Stages of Growth model is one of the major historical models of economic growth.
It was published in 1960 at the height of the Cold War and with the subtitle "A Non-Communist
Manifesto. He distinguishes the model into five stages of growth. Through five stages how
societys growth is done is shown by the following figure
5
Ex. Malaysia
Ex. India
Ex. Ethopia
Source: http://en.wikipedia.org/wiki/Rostow's_stages_of_growth
Features
The features do not mean that the progress of these societies is slow but the fact is that these
societies can have economic progress through regular and systematic use of modern tools
techniques and technology.
The pre-condition for take-off: A society begins to develop manufacturing, and a more
national/international, as opposed to regional, outlook. The second stage is a transitional era in
which the pre-condition for sustained growth is created slowly in Britain and Western Europe,
form the end of the 15th and the beginning of the 16th centuries, when the mediaeval age ended
and the modern age began.
Conditions for transition: There are three important dimensions in this transition towards
growth. These are shift from an agrarian to an industrial or manufacturing society begins, albeit
slowly. Secondly, trade and other commercial activities of the nation broaden the market's reach
not only to neighboring areas but also to far-flung regions, creating international markets. Lastly,
the surplus attained should not be wasted on the conspicuous consumption of the land owners or
the state, but should be spent on the development of industries, infrastructure.
Source: http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit"
Rostow's Stages of Economic Growth and Development_files/Rostow's Stages of Economic
Growth and Development.htm
Features
External demand for raw materials initiates economic change.
Development of more productive, commercial agriculture & cash crops not consumed
by producers and or largely exported.
7
The take-off: Rostow defines the take-off as an industrial revolution, tied directly to radical
changes in the methods of production. Rostow describes this stage as a short period of intensive
growth, in which industrialization begins to occur, and workers and institutions become
concentrated around a new industry.
Rostow had given the tentative take-off period of the following countries:
Country Take-off
United States 1843-1860
France 1830-1860
Japan 1878-1900
India 1952
China 1952
http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit"
Requirements for take-off
The rate of productive investment should rise from approximately 5% to over 10% of
national income or net national product.
The development of one or more substantial manufacturing sectors, with a high rate of
growth.
The existence or quick emergence of a political, social and institutional framework which
exploits the impulses to expansion in the modern sector and the potential external
economy effects of the take-off.
According to Rostow, the rapid growths of the leading sectors depend upon the presence of four
basic factors. These are -First, there must be an increase in the effective demand of their products
reducing consumption, importing capital. Second, introduction of new productive technologies
and techniques in these sectors. Third, society's increasing capacity to generate or earn enough
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capital to complete the take-off transition. Fourth, Activities in the key sector should induce a
chain of growth in other sectors of the economy that also develops rapidly.
The drive to maturity: Rostow defines it as the period when a society has effectively applied
the range of modern technology to the bulk of its resources. This stage takes place over a long
period of time, as standards of living rise, use of technology increases, and the national economy
grows and diversifies.
The structural changes in the society during this stage are in three ways:
Work force composition in the agriculture shifts from 75% of the working population to
20%. The workers acquire greater skill and their wages increase in real terms.
The character of leadership changes significantly in the industries and a high degree of
professionalism is introduced.
Environmental and health cost of industrialization is recognized and policy changes are
thus made.
During this stage a country has to decide whether the industrial power and technology it has
generated is to be used for the welfare of its people or to gain supremacy over others. This
diversity leads to reduction in poverty rate and increasing standards of living, as the society no
longer needs to sacrifice its comfort in order to build up certain sector
Features
The industrial base dominates the economy. The primary sector is of greatly diminished
weight in economy & society.
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Biasness Rostow illustrates that growth of economy is achieved in capitalist system, scholars has
criticized his bias towards a western model as the only path towards development.
Illogical steps it lays out five steps through which economic development of a country is
reached, but all countries do not progress in such a linear fashion some skips steps or take
different paths.
Top-down rather than bottom up this theory can be classified as top down which emphasizes a
trickle-down modernization effect from urban industry and western influence to develop a
country but "bottom-up" development paradigm can help countries become self- sufficient
through local efforts, and urban industry is not necessary.
Model based on America His model is based on American and European history and defines
the American norm of high mass consumption to the economic development process.
Non applicable in Asia Rostows Model does not apply to the Asian and the African countries as
events in these countries are not justified in any stage of his model.
Overlapping The stages are not identifiable properly as the conditions of the take-off and pre
take-off stage are every similar and also overlap.
Growth is not automatic According to Rostow growth becomes automatic by the time it
reaches the maturity stage but Kuznets asserts that no growth can be automatic there is need for
push always.
Dependency theory
Dependency theory is one which states that less developed countries are poor because they allow
themselves to be exploited by the developed countries through international trade and
investment. Dependency theory is the notion that resources flow from a "periphery" of poor and
underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the
former. It is a central contention of dependency theory that poor states are impoverished and rich
ones enriched by the way poor states are integrated into the world system. In dependency theory,
the developed nations actively keep developing nations in a subservient position, often through
economic force by instituting sanctions, or by proscribing free trade policies attached to loans
granted by the World Bank or International Monetary Fund.
Periphery
Periphery
Core
Periphery
11
Dependency theory originates with two papers published in 1949 one by Hans Singer, one by Ral
Prebisch .The theory was popular in the 1960s and 1970s as a criticism of modernization theory. The
contribution of Andre Gunder Frank (A.G. Frank), Samir Amin, Sunkel, Dos Santos in dependency
theory is remarkable.
This theory sees the world capitalist system into two words center /metropolis/ core and
satellite/ periphery/ where the developed countries like America, England, and France
etc. lie at center and developing countries like Afghanistan, Srilanka, South Africa etc. at
periphery.
Poor nations provide raw materials, natural resources, cheap labor and market at a lower
price which in turn back for higher priced finished goods.
Wealthy nations actively perpetuate a state of dependence by various means. The
influence may be through media, politics, education, culture, sports and all aspects of
human resource development ( through recruitment and training of workers)
Rich nations actively counter attempts by dependent nations to resist their influences by
means of loans, grants and/or the use of military force.
Developing nations cant utilize their resources because of advanced technology,
investment, fund where developed nations took the scope to utilize the resources through
their technology and keep them dependent upon them and this process will continue until
the developing nations will be able to make their strong positions.
Dependency in practice
In case of any country, the urban sector becomes increasingly powerful, while the rural sector
becomes increasingly weaker. The core profits at the expense of the periphery as a result of the
movement of products and resources while the rural farmers do not get proper prices of their
commodities.
The projects taken by international donors like World Bank, IMF in developing countries have
some conditions under which their projects are implemented. For example, the consultants of
12
those projects are recruited by them from the countries, who work for them. As a result, get
benefited more than their own country, and the project initiating country clearly benefits at a
personal level.
IMF (International Monetary Fund) initiated a project Extended Credit Facility in Bangladesh
in which their conditions were to reduce subsidy in fertilizer, to increase prices of fuel and also
imposes condition on Bank Company Law. In order to get second installment of loan
government obliged to increase prices of fuel. (Prothom Alo, 4th January, 2013 & Ittefaq, 5th
December, 2012)
In the book Capitalism and Under Development in North America Frank discussed detailed
about dependency in which he identified the main basis of dependency is metropolis-satellite
relationships.
Periphery
(Satellites)
Core
Industrial Goods
Metropolis
Food, Raw materials
13
In the world there exists world capitalist system. Western industrialized capitalist
countries has made metropolis center. On the other hand, agriculture based under
development countries make up satellite.
Satellite cant be developed because they are controlled by the metropolis.
In world capitalist system no social change is possible for satellite countries because they
cant take decision about their own matter and they dont have self-dependent economy.
The chain of relationships does not change since sixteen century only changes in the
forms of dominance and exploitation of the satellite not changes of substance.
The satellites cant get in the race of development because of quantitative reduction in the
growth of its productivity, output and employment.
The general people of satellites will get freedom through revolution.(Marxist Theories of
Imperialism, page, 163-170)
1. In contrast to the development of the world metropolis, which is no ones satellite the
development of national and other sub ordinate metropolises is limited by their satellite
statutes.
2. Satellites got their greatest economic development when their ties to metropolis are
weakest.
3. When the metropolis recovers from its crisis and reestablishes the satellite system, then
the previous industrialization the countries is choked off.
4. Areas that now appear to be feudal and backward were once in fact not isolated and pre
capitalist, but able to provide primary product and a large some of capital to the world
metropolises. For example, in British period the British used to took raw materials from
Indian sub-continent for their industries.
http://www.slideshare.net/christopherrice/dependency-theory
http://www.ukessays.com/essays/european-studies/frank-underdevelopment-dependency.php
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Franks theory had been criticized by different scholars whish are given follow-
Ernests Lallav- main weakness is he did not provide clear definition of capitalism.
F. H. Cardoso- metropolis-satellite just explained the relationship but did not mention the
way of industrialization.
Peter Evnas- he ignored the importance of state in economic development. The economy
of some third world countries is increasing.
Bill warren- He tries to prove that in 3rd world countries industrialization is occurred. It is
opposite of Franks statement.
John Galtrng- center- periphery more effective than metropolis-satellite
Samir Amin an Egyptian economist had given the theory dependency in his book Imperialism
and Unequal Development. He used two terms core and periphery to describe the process of
dependency of under developed countries.
Samir Amin says that, the developing countries supply the raw materials to the developed
countries for their sustenance. Developed countries buy raw materials at low cost and use cheap
labors from the developing nations but they sell their finished good at high prices. As a result,
the per head income of core countries increase and per head income of periphery decrease.
Core Periphery
Mass consumption goods Luxury goods
Capital goods Export commodities
Mechanized goods production Stagnant production
Centre countries are less structurally dependent than peripheral countries, and tend to
produce mainly capital goods and consumer goods. Produced goods tend to go up in price
over time, whereas raw materials stay at the same price or are unstable.
15
Wages in rich countries keep up with development; those in poor countries do not
because wages in poor countries are not connected with global labor markets, and
because states in poor countries tend to suppress social movements which would win
increased wages.
High imports of the periphery, and in long run capital imports are the consequence
of rapid urbanization, insufficient local production of food, changes in income
distribution to the benefit of the local elites, insufficient growth of and structural
imbalances in the industrial sector and the following reliance on foreign assistance.
The effects of the global market are taken to distort production .In agriculture; peasant
production is replaced by commercial agribusiness, which depends on imported
components and export markets.
The effects of global market create stagnation and blockage. It becomes impossible in
almost all cases for a peripheral country to develop out of its peripheral position.
Amin referred low-intensity democracy, since elected regimes have little power in
relation to the forces of global capital and therefore conditions of life. He believes we are
in a hollow or reflux period, in which compromise is to be expected, and the
conditions for rupture are so far absent.
o According to Amin In capitalist system, core and periphery relationship creates negative
orientation and it hampers market economy. But capitalism encourages diversification
and open market economy.
o He did not emphasize human, social, cultural factors in underdevelopment analysis. But
in several underdeveloped countries this factors are responsible for development.
16
o In his theory the periphery are regarded in exploited condition but actually periphery
contributing for the expansion of market.
o He told that the periphery could not come out of the circle of dependence. But if they use
their resources properly those countries can be developed.
o He did not encourage the uses of modern tools in production in periphery as they are
exported from core.
o He discourages imports of periphery as it causes unequal distribution in society.
Source: http://en.wikipedia.org/wiki/Samir_Amin
http://ceasefiremagazine.co.uk/in-theory-amin-1/
Source: http://sp.ask.com/sh/i/a14/favicon/favicon.ico
http://en.wikipedia.org/w/index.php?title=Dependency_theory&action=edit
chrome-extension://lifbcibllhkdhoafpjfnlhfpfgnpldfl/document_iterator.js"
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Participation Theory
Theories of participation have received considerable academic attention particularly since the
early 1990s but have been a source of debate since at least the 1960s. It deals with dimensions
of power; issues of process and capacity; and the nature of community
Definition of participation
Participation is a process which provides private individuals an opportunity to influence public
decision and has long been a component of the democratic decision making process
a social process whereby specific groups with shared needs living in a defined geographic area
actively pursue identification of their needs, take decisions and establish mechanisms to meet
these needs cited in (Ndekha, Hansen 2003)
Decision making
Participation
Development Public
Implementation
19
Source: "http://en.wikipedia.org/w/index.php?title=Participatory_theory&action=edit"
Besides these,
Social capital measurement problems;
Lack of sustainable land & project management
Inefficient co-ordination of disciplinary
Imperfect community participation in a practice
2. Means of production the means of labor and the objects of labor together form the
means of production. The means of production themselves cant produce material wealth.
The finest technical equipment is lifeless without people to use it.
3. Mode of production the mode of production does continue the unity of the productive
forces and the relations of production. These two sides interact and influence each other.
Both the sides develop in the process of the improvement of production.
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Mode of Production
The productive forces include the means of production created by the society, first and
foremost the instrument of labor and also the people who produce material wealth. It is people,
because of their knowledge, experiences and labor skills that set in motion the instruments of
production, who improve them, invent machines and add to their knowledge.
The relations of production the relations between people in the process of the production,
distribution and exchange of material wealth Marx called production or economic relation. The
relation determines the place people occupy in production and the methods by which the
products of labor are distributed.
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Conclusion
The theories are based on different perspective on the basis of development and
underdevelopment concept. Although each theory has some limitations but it is not judged as
wrong or irrelevant, these theories have contributions in defining how poor countries are
becoming poor day by day and rich ones are being wealthier at times. These theories describe
how world systems are running through political mechanism, capitalism, foreign aid and control,
as well as ways and strategies to overcome such situation and to become self-dependent of
developing and under developed countries.
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References
Anthony Brewer, Marxist Theories of Imperialism, A Critical Survey, Second Edition, London
& New York, pp, 163-170
Nikitin P.I, (1966) The Fundamentals of Political Economy, Progress Publishers, Moscow
Rostow's Stages of Economic Growth and Development_files/Rostow's Stages of Economic
Growth and Development.htm, Accessed on 30th October, 12.00 PM, 2013
http://en.wikipedia.org/wiki/Rostow's_stages_of_growth, Accessed on 27th October, 10.00 PM,
2013
http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit"
Accessed on 27th October, 11.00 PM, 2013
http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit",
Accessed on 1st November, 7.30 PM, 2013
Rostow's Stages of Economic Growth and Development_files/ga.js, Accessed on 1st November,
8.00 PM, 2013
http://www.slideshare.net/christopherrice/dependency-theory, Accessed on 27th October, 9.00
PM, 2013
http://www.ukessays.com/essays/european-studies/frank-underdevelopment-dependency.php,
Accessed on 29th October, 7.30 PM, 2013
http://en.wikipedia.org/wiki/Samir_Amin, Accessed on 30th October, 2.30 AM, 2013
http://ceasefiremagazine.co.uk/in-theory-amin-1/, Accessed on 2nd November, 10.00 PM, 2013
http://sp.ask.com/sh/i/a14/favicon/favicon.ico, Accessed on 3rd November, 11.00 PM, 2013
http://en.wikipedia.org/w/index.php?title=Dependency_theory&action=edit, Accessed on 2nd
November, 10.00 PM, 2013
chrome-extension://lifbcibllhkdhoafpjfnlhfpfgnpldfl/document_iterator.js", Accessed on 2nd
November, 10.00 PM, 2013
"http://www.socialcapitalresearch.com/xmlrpc.php", Accessed on 3rd November, 11.00 PM,
2013
"http://en.wikipedia.org/w/index.php?title=Participatory_theory&action=edit", Accessed on 3rd
November, 11.00 PM, 2013