2019 DVM 2105A Week3 Part 2 Theory.ppt - Theories of...

Theories of Development
(Week 3 Part 2)

Lecture Outline
–Theories
 Theories of Development:

Modernization Theory

Dependency Theory

Neoliberal Theory

“Another Development” (Post-Modern and
Post-Colonial Theories)

Part 2: Theories of Development

Modernization Theory (1947-1965)

Response to « success » of Marshall Plan and post-War optimism
following decolonization

Dependency Theory (1960-1980)

Response to failure of modernization (continuing underdevelopment)

Neoliberal Theory (1982-2000)

Response to (1) crisis of state-led development (2) success of East
Asia
New Institutionalism (2000- present)

Response to Neoliberalism’s failures

“Another Development” (Post-Modern and Post-Colonial
Theories) (1990-present)
 Response to (1) failure of development in general (2) rise of post-
modern theories (3) effects of neoliberalism

Development Theory and Practice in
Time, 1900-2018
Time Period and
Economic
Development
Theoretical Approach by Track
201
6
Mainstream Marxist Critical
190
0
193
0
196
0
198
2
Colonial
Period
Early
ISI
Late ISI
Free Market
Solutions
White
Man’s
Burden
Modern
-ization
Depend
-ency
Theory
Imperial
-ism
Radical
Neolib-
eralism
Post-
Develop
-ment
Institut
-ional
Neolib.

Modernization Theory (1950-1960s)
… Repeating the European experience
 Emerged in the post-WWII period , theoretically linked to both
Marshall Plan and Cold War

Based on contrast between modern and traditional
societies… development viewed as traditional societies
evolving continuously into modern societies over time
(changes in society, values, economy)
 « Development economics » (as described by Desai) is part
of this broader trend and optimism
 Identifies the social variables and institutional factors
necessary for this evolution

Modernization Theory (1950-1960s)
… Repeating the European experience
 Sociological modernization theory (T.Parsons and B.F.
Hoselitz)

Economic development is also a change in social
structure, culture and values

Need to destroy the economic basis of traditional vested
interests and traditional values

Need a social group to spearhead change
(entrepreneurs)

Talcott Parsons: the Pattern Variables

5 roles or « social relations » that change with
development

KEY POINT: personality, values, social roles evolve from
traditional to modern in a continuous process

Modernization Theory (1950-1960s)
… Repeating the European experience
 Psychological modernization theory (McClelland)

Psychlogical factors important for growth, particularly the
« need for achievement »
 Economic modernization theory (W.W. Rostow)

Countries go through the same 5 « stages of growth »

(1) Traditional society (ag, low productivity, non-scientific)

(2) Preconditions for Take-Off (expanding trade, nation state)

(3) Take off (growth becomes permanent feature; investment
goes up to 10%)

(4) Road to maturity (economy modernized, ISI, new
technology, diversification)

(5) Age of mass consumption (focus on consumption and
services, welfare and security)

Modernization Theory (1950-1960s)