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Theory
Simplification of the world in order to understand
Modernization Theory
Views the development & progress of the Global North as a metric to measure & guide the Global South
Modernization Theorist Walt Rostow
Stages of economic growth
Modernization Theorist Seymour Lipset
Argued economic development leads to democratization
Modernization Theorists Inglehart & Welzel
Argued economic development leads to cultural changes which support democratization
Modernization Theorist Samuel Huntington
Argued rapid economic growth destabilize political institutions (create power vacuums, one-sided allocation of resources, etc)
Emphasized the importance of order (strong institutions)
Criticism of Modernization Theory
Global South is not the same developmental phase as the Global North once had due to exploitation & capitalism
Dependency Theory
Global South countries are underdeveloped based upon the structural dependence on Global North countries
Dependency Theorist Raul Prebisch
Argued countries should focus on what they do best in trade, arguing that leads to unfair trade relationships
Dependency Theorist Samir Amin
Applied dependency theory to Africa, highlighting how international trade & investment contribute to its underdevelopment
Dependency Theorist Walter Rodney
Argued European colonialism deliberately underdeveloped Africa by exploiting its economy, a process that continued even after independence
Dependency Theorists Cardoso & Faletto
Focused on the internal factors of developing coiuntries, such as the “comprador class” (local elites benefiting from foreign ties)
Introduced the idea of “dependent development” - growth that still relies on external forces
World Systems Theory
Expanded on dependency theory by analyzing the global economy as a whole
It divides countries into core, semi-periphery, & periphery based on:
Their roles in the international division of labour
Where wealth & power concentrate in the core at the expense of the periphery
New Institutionalism Theory
Institutions explain outcomes
Strand of New Institutionalism Theory - Rational Choice Institutionalism
Focuses on rules & incentives that constrain & guide rational behaviour
Actors behave according to the logic of consequence
Rational Choice Institutionalism Theorist Douglass North
Certain political and economic systems in the Global South create incentives (rewards) for elites, but these incentives do not encourage investment in productive activities like industry or innovation. Instead, they may benefit from maintaining the status quo.
Strand of New Institutionalism Theory - Historical Institutionalism
Focused on 2 things:
Institutional legacies (long-lasting & hard to change)
Critical moments that have lasting effects
Strand of New Institutionalism Theory - Sociological Institutionalism
People follow societal expectations rather than just making decisions based on self-interest.
This is known as the “logic of appropriateness”, where individuals act in ways that are seen as socially acceptable