Politics in developing countries

Development

A significant and measurable economic growth, and the emergence of social, economic, and political institutions

Economic growth

Is seen as quantitative increases in economic activities, a larger economy, and more money

Examples of economic growth

Development of natural resources, construction of infrastructures, GDP, and GNP

Economic development

Encompasses growth, sustainability, equity, and human development

• access to adequate health care

• Housing, education, nutrition

• Safe environment, life expectancy

Examples of countries that developed the infrastructure to promote industrialization

Singapore, Taiwan, China, South Korea

Supply and demand

Determines prices of goods and services

Classical economic model

Emphasizes little government intervention in the market, rejects excessive regulations and taxation.

Free-market Capitalism model

Expands the argument by the classical economic model, removed all barriers; build a global economic system.

• trade barriers prevent free exchange of goods and services; impede economic development

• government to ease free-market competition

What do free-market economist’s favor

• low taxes

• strong national currencies

• The prohibition of monopolies

• And minimum government regulations

State capitalism

Gives the government a central role in economic development

• rejects the idea that market place should be regulated by market forces

• Individuals driven by self-interest cannot be trusted to support national interests

Examples of state capitalism

Japan, Taiwan, South Korea, Vietnam, Singapore, China

What do the IMF and the World Bank promote

• Trade Liberalization,

• Privatization of state-owned enterprises

• Foreign investment in developing countries

Exacerbated poverty in the developing countries

Theory

A scientifically acceptable general principle offered to explain a phenomena

Development theory

Tries to explain how countries achieve specific economic and political improvements

Modernization theory

Embraces classical economic model and free-market capitalism

• Dominant in 1950s and 1960s

• treated developing countries as a monolithic group

(Historical, cultural, economic and political differences were ignored)

what does Walt W. Rostow argue about countries

they go through stages of development from traditional to modern

• Underdevelopment, Take off, Modernity

Marxism

Marx and Engels stressed the dominance of economic determinants of history and the inevitability of class conflicts

Stresses the dominance of economic determinants of history and the inevitability of class conflicts

• The capitalists control the means of production

• They argued that the history of society is the history of class struggle

(Bourgeoisie vs Proletariat)

Marxist theory

The capitalist bourgeoise exploit the workers to increase profits

The capitalist state is a repressive tool of the bourgeoisie, workers would unite to overthrow the capitalist system

• resulting in the creation of a classless society

(Transitioning from socialism to communism)

Dependency Theory

Developed by latin American scholars (Draws from Marxist theory)

• poor countries should cooperate among themselves; reduce their reliance on rich countries

ex; poor countries must focus on import substitution

What is the international system the dependency theory sees countries in

1- Countries at the industrial core (Western Europe and North American countries)

2 - Countries of the semi periphery (Developing countries that have achieved high economic growth

3 - countries at the periphery (The poorest developing countries)

Countries of the semiperiphery

Developing countries that have achieved high economic growth

Countries at the periphery

The poorest developing countries

Countries at the industrial core

Western Europe and North America countries

Dependency theorists

Believe that capitalism reinforces economic inequalities among countries

• they argue that the global economy should be restructured

• give poor countries greater share of the world’s resources

Import Substitution

The development of domestic industries for domestic consumption

• development is achieved by a mixture of free-market capitalism and state capitalism

Third world socialism

Calls for less private enterprise and greater role of government in the economy

many developing countries adopted, “Third world socialism” to differ themselves from communist societies

The features of third world socialism are

• Industrialization through import substitution

• Protectionism

• Fixed exchange rates

• The development of the state-owned companies

• The government control of agricultural prices

African socialism

A theory that opposes Marxism and capitalism and draws upon African traditions of communalism and humanism

• African socialism is based on the concept of Ujamaa, or Familyhood, and a variant of Third World Socialism

Community and grassroots development

It assumes that the poorest can improve their standard of living by using their own resources and adopting strategies consistent with their own values and local conditions

• this is bottom-up approach to development

• Brings responsibility for development back to those who want to escape poverty

Grameen Bank

A small-scale credit program designed to help the poor, especially women, become micro-entrepreneurs

Feminist theory

Emanates from the long struggle to achieve equal rights for women in the world

• it focuses on inequality, poverty, and gender relations

• Advocates for women’s economic and politcal empowerment

Sustainable development

A theory that favors both growth and conserving natural resources

• growth can be consistent with using resources in such a way that future generation will have access to them

• The limits of natural resources; promotes the protection biodiversity

Factors facilitating or impeding development

• Values of the leaders and citizens

• natural resources and natural disasters

• The international and regional economic environment

• population

• education and health care

• political instability

• Corruption and economic development

• debt, foreign aid, and development

Growth

Quantitative increases in economic activities, including a larger economy and more money

Gross Domestic Product (GDP)

Most measures of economic development focus on wither the total market value of all goods and services produced within a country

Gross National Product

The total market value of all goods and services produced by resources supplied by residents and buisnesses of aparticular country, regardless of where the residents and buisnesses are located

Human development index

Measures the quality-of-life people experience

Gender-related development index

Index including the same measures as the human development index, but concentrating on inequality between women and men

Government institutions

Provide the essential framework within which development occurs

Maquiladora Program

A program initiated by Mexico that encouraged U.S companies to locate on the Mexican American border

Privatization

The reduction of government involvement in economic activites, and the increase in private influences on the economu

International Monetary Fund

An organization created to encourage world trade and international cooperation

Non-State actors

Provide infrastructure, education, health care, employment, clean water, and other essential services

• Bill and Melinda Gates foundation

World systems Theory

Stresses the role of European capitalism in creating economic groups of countries

Group of 77

A group created by the developing nations that demanded that global wealth be distributed

New International Economic Order (NIEO)

An international platform for nations of the south to challenge the comparative strength of Northern countries to exploit weaker countries