POLI 362 Development Administration

Transcription

1 POLI 362 Development Administration Session 4-Underdevelopment II Lecturer: Prof. Emmanuel Debrah, Dept. of Political Science Contact Information: College of Education School of Continuing and Distance Education 2016/2017

2 Session Overview Underdevelopment is one of the concepts that has often been debated in many platforms. Many scholars have explained it in relations to development in developed societies. They have delineated some key features to bring out the meaning of underdevelopment. In addition, there is an attempt to explain the causes of underdevelopment and how to overcome it. Slide 2

3 Session Outline The key topics for this session are the following: Topic One: Theories of underdevelopment Topic Two: Solution to Underdevelopment Slide 3

4 TOPIC ONE THEORIES OF UNDERDEVELOPMENT Slide 4

5 Dependency Theories This model relates to scholars like Andre Gunder Frank, Samir Amin, Wallerstein and Magdoff. Paul Baran pioneered the theory of underdevelopment. This model views underdevelopment as a consequence of the exercise of dominance of the developed rich countries over the former colonies. Centrifugal forces control world economy by strengthening the position of rich countries while keeping the periphery countries permanently poor. Slide 5

6 Dependency Theories (cont d) According to these scholars, it results from a particular form of capitalist development known as dependent capitalism. It is a conditioning situation in which the economies of one group of countries are conditioned by the development and expansion of others. Slide 6

7 Baran s View of Underdevelopment Paul Baran is of the view that capitalism, due to its inherent characteristics, exploits the Third World. It is in the interest of the capitalist world to keep the backward world as an indispensable hinterland. These less developed countries were the source of raw material and extracting economic surplus for the rich countries. Slide 7

8 Baran s View of Underdevelopment (cont d) Most of the colonizers, according to Baran, were rapidly determined to extract the largest possible gains from the host countries and to take their loot home (1973: 274). Likewise, the per capita income, which is in paucity as compared to the rich countries, is a result of the capitalist development in the West. Slide 8

9 The Structural Approach It looks at development in terms of the power relationship between different nations and between different people within the nation. The theory says that the less developed countries are caught up in dependence and dominance relationship with rich countries. The developing countries are made subordinate to the rich countries and so they suffer because of the institutional and structural constraints. Slide 9

10 Modernization Theorists They argue that there are a number of cultural and economic barriers that prevent them from developing Cultural barriers are seen as internal to the country religious, chieftaincy beliefs, superstition, etc Economic barriers (lacks meritocracy, rational decision, division of labour, skills and technology, etc and so it is their fault for being backward. Slide 10

11 False Paradigm Model Todaro views underdevelopment of Asia, Africa and Latin America as the result of inappropriate/faulty advice given by assisting agencies (WB, UNDP, IMF). While the experts have good intentions, they are often ignorant of the existing local situations. Hence, their policies/advice prove inappropriate and reinforce existing power structure and interests of powerful groups, thereby widening social, economic and landed inequalities. Slide 11

12 Cumulative Causation It states that it is a case of vicious circle (for example, low income) causing low savings and low investment, in turn causing low income or low income leading to poor health leading to low productivity and low income (Gunnar Myrdal 1956) Slide 12

13 TOPIC TWO OVERCOMING UNDERDEVELOPMENT MENACE Slide 13

14 Solution to Underdevelopment This economic standoff could be got rid of through socialist economic system. Baran was a promoter of the Marxist approach to economic planning. He believed that the existing class structure of the Third World countries has also been responsible for their dependent situation. Slide 14

15 Solution to Underdevelopment (cont d) He wishes a society which is free from exploitation and that could be possible only in the socialist economy. The surplus of such countries was largely wasted, first by the lumpen-bourgeoisie which included moneylenders, real estate agents and others who are considered to be non-productive and parasitic, and secondly by domestic industrial producers who were monopolistic, and dislike competition. Slide 15

16 Solution to Underdevelopment (cont d) However, the structural internationalist model emphasizes that the underdevelopment will fizzle out when attention is drawn not only to the growth of GNP but rather to the planning of poverty reduction and employment to all. Slide 16

17 Sample Questions Outline and discuss the salient characteristics of underdevelopment African underdevelopment is the consequence of attempt by the Western and developed economies to make it subordinate in the international system. Discuss. Slide 17

18 Reference Slide 18