Development Studies Midterm Review

SOSC 1430 MIDTERM REVIEW NOTES

WEEK 2: WHAT IS DEVELOPMENT?

Defining Development

• Definition:
    - Term describing people, places, and processes indicating poverty, wealth, and relationships. It encompasses levels of industrialization, the presence of vast inequalities, and reflects the rich diversity of human experiences and social organizations.

• Characteristics:
    - A normative discipline aimed at promoting economic and human development while acknowledging that outcomes will be contested.
    - Multi-dimensional process focused on sustainable development.

• Origins:
    - Post-World War II, largely influenced by Harry Truman's 1949 inaugural address concerning underdeveloped areas.
      - Emphasis on comparing nations' success and progress relative to one another.
      - Advocacy for outside intervention by nations that have successfully progressed, aiding those lacking the necessary conditions.

• Modern Development:
    - Viewed as a dynamic process rather than a static condition.

Condition vs. Process

• Process:
    - A qualitative, ongoing effort influenced by socio-economic, cultural, and political factors.

• Condition:
    - A mere label describing a state based on scaled comparisons, which implies the necessity for intervention by those who consider themselves developed.

Terminology/Labels

• NIC - Newly Industrialized Countries: (circa 1970)
    - Example: The Four Asian Tigers (Hong Kong, South Korea, Singapore, Taiwan).
    - Describes emerging markets perceived by global capitalist leaders as targets with low incomes necessitating special support from the UN.

• LDC - Least Developed Countries:
    - Identifies nations with very low incomes and structural obstacles for growth needing special UN assistance.

• LIC - Low Income Countries

• MIC - Middle Income Countries

• Third World/Tiers Monde: (1952)
    - Refers to nations outside the two major power blocs (West and Soviet Union).
    - Includes populations at the bottom of the social pyramid such as peasants and merchants, highlighting diverse economic and political histories with varied development paths.

Sustainable Development

• Brundtland Commission: (1987)
    - Development that meets present needs without compromising future generations' ability to meet their own.

Measures of Development

• GDP - Gross Domestic Product:
    - Emerged in the 1950s and 1960s as a production-focused measure reflecting the value of goods and services produced in a national economy.
    - Growth is attributed to increased productivity in agriculture, natural resource extraction, and industrialization.
    - Issues: Does not reflect poverty levels or the proportion of extremely poor populations.

• GDP per Capita:
    - Represents the average income within a country.

• Purchasing Power Parity (PPP):
    - Issues include neglect of non-market subsistence activities and challenges in comparing developmental levels.

• HDI - Human Development Index (1990):
    - Factors:
      - Long and Healthy Life: Measured by life expectancy at birth.
      - Knowledge: Gauged through adult literacy rates and gross enrollment ratios for various education levels.
      - Standard of Living: Assessed with Gross National Income (GNI) per capita.
    - Scoring: 0.8 or more indicates high development; below 0.55 indicates low development.

• MPI - Multidimensional Poverty Index:
    - Evaluates deprivations affecting quality of life.

• GII - Gender Inequality Index:
    - Assesses gender discrimination faced by women and girls.

• GDI - Gender Development Index:
    - Compares HDI outcomes between genders.

• MDG and SDG - Millennium/Sustainable Development Goals:
    - Framework promoting multi-dimensional approaches towards international agency collaboration on development goals.

• Gini Coefficient:
    - Measure of income inequality within a nation, ranging from 0 (perfect equality) to 1 (complete inequality).
    - Evaluated by dividing the population into quintiles or deciles to compare average incomes.

• Gross National Happiness (GNH): (1950s Bhutan)
    - Policies centered around equitable governance, social, and economic development to prevent resource scarcity.

WEEK 3: THEORIES OF DEVELOPMENT I

Table 3.1 - Theories of Economic Development

• Classical Political Economy (Late 1700s-Early 1800s):
    - Thinkers: Adam Smith, David Ricardo, John Stuart Mill.
    - Focus: Classical liberalism.
    - Problem: Low productivity.
    - Solution: Labor specialization, mechanization, and free trade.

• Nationalist Economics (1800s):
    - Thinkers: Friedrich List, Alexander Hamilton.
    - Focus: Nationalism.
    - Problem: Unfair competition leading to the necessity of catching up.
    - Solution: Protective trade policies and state-guided industrialization.

• Keynesianism (1930s-1950s):
    - Thinkers: John Maynard Keynes, Alexander Gerschenkron.
    - Focus: Regulatory capitalism.
    - Problem: Crises of capitalism leading to low productivity.
    - Solution: State-led investments aimed at expanding demand and growth.

• Modernization Theory (Late 1950s):
    - Thinkers: Almond, Huntington.
    - Problem: Focuses on traditional societies needing modern values and technologies.
    - Solution: Aid from developed nations for rapid development while maintaining Western influence.

• Dependency Theory:
    - Acknowledges the unequal global trade dynamics between the core and periphery, promoting a model of delinking from the capitalist world system.

Modernization Initiatives

• Modernization not being a Set of Economic Policies:
    - Employed by Western policymakers in the 1950s to frame advice for developing countries, depicting development as a linear process fundamentally tied to economic growth (measured by GDP).

• Critiques of Modernization Theory:
    - Suggests a dualistic world view; ignores essential elements contributing to underdevelopment, eg. colonial legacies and global inequalities.

• Rostow's Stages of Economic Growth:
    - Proposed by economist Walt Rostow in the 1950s, presents a sequence of stages in economic growth:
      1. Traditional: Predominantly agricultural economies focused on non-economic objectives.
      2. Transition/Pre-conditions for Take-off: Emergence of markets, specialization, and diversification.
      3. Take-off: Major socio-economic changes embrace industrial growth and urbanization.
      4. Drive to Maturity: Increased industrial diversification and technology adoption.
      5. High Mass Consumption: Fully industrialized societies meeting consumption needs through generated export revenues.
    - Notable limitations in applicability to developing countries without Western assistance.

WEEK 4: THEORIES OF DEVELOPMENT II

Declining Terms of Trade (Raúl Prebisch)

• Import Substitution Industrialization (1950s-1980s):
    - Developing countries typically exported raw materials while importing manufactured goods, creating damaging trade dependencies.

• Contributing Factors:
    - Income elasticity of demand and declining terms of trade due to commodity price volatility can precipitate national income declines.

Dependency Theory: Overview

• Key Concepts:
    - Views capitalism as a world system with a center-periphery model influencing development trajectories.
    - Calls for de-linking nations from uneven economic ties.
    - Highlights the impact of local socio-political dynamics within national boundaries, stressing the significance of internal class relations.

Core-Periphery Dynamics

• Core: Wealthy industrialized nations controlling technology and capital outputs.

• Periphery: Nations reliant on exporting raw materials and cheap labor.

• Semi-Periphery: Countries that partially industrialize and maintain connections with both core and periphery nations (e.g., Brazil, India).

World Systems Theory (Immanuel Wallerstein)

• Proposes a framework analyzing global economic relationships through a three-tier structure of core, semi-periphery, and periphery nations.

• Advocates for developing countries to pursue protectionist strategies to build local industries, mitigating dependency on core trading partners.

WEEK 5: THE ERA OF COLONIALISM I

Periodization of Colonialism

• Origins of European Expansion:
    - Initiated in the 15th century by countries like Portugal and Spain, later followed by Britain, France, and the Netherlands.

• Economic, Political, and Nationalist Motivations:
    - Urged by competition for territory among great powers, triggered by desires for national prestige.

Economic Implications of Colonialism

• Seafaring and Direct Trade:
    - Direct trade with African and Asian nations bypassed Muslim middlemen, leading to territorial control through both conquest and negotiation (e.g., East India Companies).

• The Scramble for Africa (1880-1900):
    - Violent territorial claims predicated upon economic aspirations amid declining domestic returns within Europe.

Defining Concepts

• Decolonization:
    - Occurring from 1947 (India) to 1960 (Year of Africa), characterized by a wave of independence in the Global South.

• Capitalism and Market Contestation:
    - Capitalism's nuance lies within the market's role as a political arena, where various interests struggle for positional influence.

Colonial Expansion Tactics

• Colonization Process:
    - Involves the establishment and domination of territories by powerful nations over lesser ones, often for economic extraction.

• Approaches to Rule:
    - Varying methods, such as direct (e.g., French) vs. indirect rule (e.g., British).

Neo-colonialism Dynamics

• Definition:
    - A form of post-colonial control where former colonial powers maintain influence in independent nations through economic means despite political devolution.

WEEK 6: THE ERA OF COLONIALISM II

Key Events and Policies

• Colonization of Canada:
    - Expansion of European influence from the 15th to 18th century, culminating in land treaties with Indigenous populations.
    - Issues of misleading translations and unceded land are pertinent in treaty negotiations.

Cultural Policies and Their Effects

• Indian Act (1876):
    - Instituted numerous laws aimed at eliminating First Nations cultures, curtailing traditional practices, and enforcing assimilation.

• Residential Schools:
    - Government-sponsored institutions aimed at forcibly integrating Indigenous children into Euro-Canadian culture, resulting in further dislocation and cultural genocide.

Contemporary Consequences

• Cultural Genocide:
    - A defined aim to obliterate the unique cultural identities and practices of Indigenous Peoples.

• Truth and Reconciliation Commission (2008):
    - Mandate to investigate indigenous school abuses, focusing on healing and awareness.

Case Studies

• Colonization Road Case Study:
    - Speaks to historical land negotiations and ulterior motives hidden behind the evolution of North and South Ontario colonization roads.