Part 2: Theories of DevelopmentModernization Theory (1947-1965)Response to « success » of Marshall Plan and post-War optimismfollowing decolonizationDependency 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 EastAsiaNew Institutionalism (2000- present)Response to Neoliberalism’s failures“Another Development” (Post-Modern and Post-ColonialTheories) (1990-present)Response to (1) failure of development in general (2) rise of post-modern theories (3) effects of neoliberalism
Development Theory and Practice inTime, 1900-2018Time Period andEconomicDevelopmentTheoretical Approach by Track2016MainstreamMarxistCritical1900193019601982ColonialPeriodEarlyISILate ISIFree MarketSolutionsWhiteMan’sBurdenModern-izationDepend-encyTheoryImperial-ismRadicalNeolib-eralismPost-Develop-mentInstitut-ionalNeolib.
Modernization Theory (1950-1960s)… Repeating the European experienceEmerged in thepost-WWII period, theoretically linked to bothMarshall Plan and Cold WarBased oncontrast between modern and traditionalsocieties… development viewed as traditional societiesevolving continuously into modern societies over time(changes in society, values, economy)« Development economics » (as described by Desai) is partof this broader trend and optimismIdentifies thesocial variables and institutionalfactorsnecessary for this evolution
Modernization Theory (1950-1960s)… Repeating the European experienceSociological modernization theory(T.Parsons and B.F.Hoselitz)Economic development is also a change in socialstructure, culture and valuesNeed to destroy the economic basis of traditional vestedinterests and traditional valuesNeed a social group to spearhead change(entrepreneurs)Talcott Parsons:the Pattern Variables5 roles or « social relations » that change withdevelopmentKEY POINT: personality, values, social roles evolve fromtraditional to modern in a continuous process
Modernization Theory (1950-1960s)… Repeating the European experiencePsychological 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; investmentgoes up to 10%)(4) Road to maturity (economy modernized, ISI, newtechnology, diversification)(5) Age of mass consumption (focus on consumption andservices, welfare and security)