International Development Theories Compared

Summary

This video script explores the evolution of development theories from the 1950s to the present. It starts with economic growth as the sole focus, transitions through modernization and dependency theories, critiques with neo-liberalism, and delves into critical theories. The narrative shifts to human development, introduced by Amartya Sen, emphasizing the richness of human life and capabilities. The script concludes with the emergence of sustainable development, highlighting the United Nations' Millennium Development Goals and the Sustainable Development Goals, while acknowledging ongoing global challenges.

Takeaways

• 🌐 The terms 'third world' and 'developing world' are outdated; 'Global North' and 'Global South' are now used to represent the industrialized and developing regions, respectively.
• 💼 In the 1950s, development was synonymous with economic growth, influenced by John Maynard Keynes' ideas on state involvement in economic cycles.
• 🔄 The Modernization theory, emerging in the late 1950s, assumed the West's development model as a guide for the Global South, advocating capitalism and democratization.
• 🔄 Dependency theory, a reaction to Modernization, argued that the Global South's underdevelopment was a result of its dependency on the Global North, highlighting structural inequality within the capitalist world system.
• 💡 Neo-liberalism in the 1970s shifted focus from state involvement to market forces, blaming underdevelopment on poor governance and advocating for free-market principles.
• 🌐 Structural Adjustment Programs (SAPs) were loans with conditionalities from Global North to Global South, seen by some as a form of neo-colonialism.
• 🤔 Critics of neo-liberalism argue it disproportionately burdens the weakest in society and lacks protection for domestic industries.
• 🌟 The 1980s saw the emergence of critical theories, focusing on human emancipation, freedom, and equality, and deconstructing development discourse.
• 🌱 Human development, introduced in the 1990s by Amartya Sen, emphasizes the richness of human life and the capabilities of individuals, leading to the creation of the Human Development Index (HDI).
• 🏞️ Sustainable development, a prominent concern in the 21st century, aims to meet present needs without compromising the ability of future generations, as outlined in the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs).
• 🔄 The development landscape has seen a pendulum swing of theories, from economic focus to human capabilities and sustainability, reflecting the evolving understanding and complexities of global development.

Q & A

What is the term 'Global North' and 'Global South' used to represent in the context of development?

The terms 'Global North' and 'Global South' represent a divide where the Global South constitutes what was previously referred to as the 'developing world', and the Global North represents the industrialized world.

What was the initial understanding of development in the post-WWII era of the 1950s?

In the 1950s, development was synonymous with economic growth and prosperity, which was believed to be achieved through state involvement to smooth out economic recessions, influenced by the ideas of John Maynard Keynes.

What is Modernization theory and how does it view the process of development?

Modernization theory emerged in the late 1950s and is defined by the assumption that development progresses as it did in the West, serving as a guide for the Global South. It assumes that capitalism is good and conducive to democratization, viewing the West as the pinnacle of development.

What are the main criticisms of Modernization theory?

Critics of Modernization theory argue that it ignores history, such as colonialism, focuses only on internal factors, and promotes unsustainable high mass consumption.

How does Dependency theory differ from Modernization theory?

Dependency theory, emerging in the late 1950s to 1960s, stems from Marxist influences and views Modernization as elitist. It looks at the entire capitalist world system and argues that the underdevelopment of the Global South is a result of its dependency on the Global North.

What is the main argument of Dependency theory regarding the relationship between the Global North and the Global South?

Dependency theory argues that the Global North takes resources from the Global South, produces and innovates goods from these resources, and then sells them back at a higher cost, creating a cycle of structural inequality and limiting innovation in the Global South.

What is Neo-liberalism and how did it change the approach to development in the 1970s?

Neo-liberalism, emerging in the 1970s, viewed the state as an impediment to development and blamed underdevelopment on poor governance in the Global South. It advocated for trust in the capitalist world market, principles of the invisible hand, and policies like privatization, free trade, and deregulation.

What were Structural Adjustment Programs (SAPs) and how were they related to Neo-liberalism?

Structural Adjustment Programs were loans issued by Global North countries to those in the Global South during the reign of Neo-liberalism. They came with conditionalities that required the borrowing countries to follow the rules set by the Global North, which some critics argue was a form of neo-colonialism.

What is the main focus of critical theories in development discourse?

Critical theories focus on human emancipation, freedom, and equality. They deconstruct development discourse, looking for power dynamics within the discourse, and include sub-branches such as Post-development, post-colonial theory, and feminist theory.

How did the concept of human development introduced by Amartya Sen differ from previous theories?

Amartya Sen's concept of human development, introduced in the 1990s, shifted the focus from solely economic prosperity to the richness of human lives and the capabilities individuals have to lead the life of their choosing, leading to the creation of the Human Development Index (HDI).

What are the Sustainable Development Goals (SDGs) and what is their purpose?

The Sustainable Development Goals, adopted in 2015, are a list of 17 goals aimed to be achieved by 2030. They are designed to continue global development in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs, addressing issues like poverty, hunger, gender equality, and climate change.

What were the Millennium Development Goals (MDGs) and why were they replaced by the SDGs?

The Millennium Development Goals were a set of sustainable development goals established in 2000 to be achieved by 2015. They were replaced by the SDGs because the MDGs were not fully met by the target year, and the SDGs offer a more comprehensive and updated approach to global development challenges.

Outlines

00:00

🌐 Development Terminology and Theories Evolution

This paragraph introduces the evolution of terms and theories related to development. It starts by discussing the outdated terms 'third world' and 'developing world', moving to the more current 'Global North' and 'Global South'. The script then delves into the historical context of development, beginning with the post-WWII era where development was equated with economic growth, influenced by Keynesian economics. The narrative shifts to the 1950s with the emergence of Modernization theory, which posited the West as a model for development and capitalism as a path to democratization. Critics argue that this theory overlooks history and sustainability. Dependency theory, emerging in the late 1950s to 1960s, challenges Modernization by focusing on the global capitalist system and the structural inequalities perpetuated by the dependency of the Global South on the Global North. The paragraph concludes with a brief mention of neo-liberalism in the 1970s, which will be further discussed in subsequent paragraphs.

05:01

🛣️ The Shift to Human and Sustainable Development

The second paragraph focuses on the significant shift in development theory from economic prosperity to human development, as introduced by Amartya Sen. Sen's concept emphasizes the importance of individual freedoms and capabilities to lead a valuable life, moving beyond traditional economic measures. This idea led to the creation of the Human Development Index (HDI) and the United Nations' annual human development reports. The paragraph also touches on the emergence of sustainable development in the late 20th century, highlighting the need to meet present needs without compromising the future. The Millennium Development Goals (MDGs) and their evolution into the Sustainable Development Goals (SDGs) by 2030 are mentioned, with a brief discussion on the challenges and criticisms these goals face, including the argument that the Global South should focus on basic needs before addressing broader issues like climate change and gender equality. The paragraph ends with a reflection on the complexity of development theories and an invitation for viewers to consider which theory might provide the best path forward.

Keywords

💡Development

Development refers to the process of improving the economic, social, and political well-being of a society. In the video, it is central to understanding the historical and contemporary approaches to economic growth and societal advancement. The script discusses various theories of development, from economic growth in the 1950s to more holistic views like human development in the 1990s.

💡Global North

The term 'Global North' is used to describe the industrialized and wealthier countries, often situated in the Northern Hemisphere. It is contrasted with the 'Global South' in the script, highlighting the divide between developed and developing nations. The video explains that the Global North represents countries that have historically influenced development policies and practices.

💡Global South

The 'Global South' encompasses countries that are typically less developed and are often located in the Southern Hemisphere. The script uses this term to refer to nations that were previously called 'third world' or part of the 'developing world,' emphasizing the shift in terminology and the focus on these countries' economic and social progress.

💡Modernization Theory

Modernization Theory is an approach that emerged in the late 1950s, which posits that development in the Global South should follow the Western model of industrialization and capitalism. The script critiques this theory for its assumption that Western development is the pinnacle and for ignoring historical factors like colonialism.

💡Dependency Theory

Dependency Theory, which arose in the late 1950s to 1960s, challenges Modernization Theory by arguing that the underdevelopment of the Global South is a result of its dependency on the Global North. The script describes this theory as a pendulum swing from internal state focus to considering the entire capitalist world system and its structural inequalities.

💡Neo-liberalism

Neo-liberalism is an economic and political philosophy that advocates for minimal government intervention in the economy. The script discusses how it became prominent in the 1970s, blaming underdevelopment on poor governance and advocating for free markets, privatization, and deregulation. It also mentions Structural Adjustment Programs as a tool of neo-liberal policy imposition on the Global South.

💡Structural Adjustment Programs (SAPs)

SAPs are conditional loans provided by Global North countries to those in the Global South, often during times of economic crisis. The script describes these programs as embodying neo-liberal principles and criticizes them for potentially representing a form of neo-colonialism, where the Global South must follow the rules of the Global North.

💡Critical Theories

Critical Theories emerged in the 1980s as a response to perceived shortcomings in development theories. They focus on human emancipation, freedom, and equality, and deconstruct development discourse to reveal power dynamics. The script mentions that these theories include various sub-branches such as post-development, post-colonial, and feminist theory.

💡Human Development

Human Development, as introduced by Amartya Sen in the 1990s, emphasizes the importance of individual freedoms and capabilities beyond economic prosperity. The script explains that this concept led to the creation of the Human Development Index (HDI), which measures development by considering life expectancy, education, and standard of living.

💡Sustainable Development

Sustainable Development is a concept that focuses on meeting the needs of the present without compromising the ability of future generations to meet their own needs. The script discusses this as a key concern in the new millennium, highlighting the United Nations' adoption of the Millennium Development Goals and the subsequent Sustainable Development Goals (SDGs).

💡Sustainable Development Goals (SDGs)

SDGs are a collection of 17 global goals set by the United Nations to be achieved by 2030. The script mentions these goals as an evolution from the Millennium Development Goals, aiming to address a wide range of issues from poverty and hunger to climate change and gender equality.

Highlights

Introduction to important terms for understanding development concepts.

Transition from using 'third world' to 'Global North' and 'Global South' for more accurate development terminology.

Development in the 1950s was synonymous with economic growth, influenced by Keynesian economics.

Modernization theory emerged in the late 1950s, assuming the West as a model for development.

Critique of modernization theory for ignoring history and promoting unsustainable mass consumption.

Dependency theory in the late 1950s-60s, viewing underdevelopment as a result of Global North's exploitation.

Neo-liberalism in the 1970s, advocating for minimal state involvement and market-driven development.

Structural Adjustment Programs (SAPs) as a form of conditional lending from the Global North to the South.

Critical theories of the 1980s, focusing on human emancipation, freedom, and equality in development discourse.

Introduction of human development by Amartya Sen in the 1990s, emphasizing the richness of human life and capabilities.

The emergence of the Human Development Index (HDI) as a measure of development beyond economics.

The shift to sustainable development at the turn of the century, focusing on meeting present needs without compromising future generations.

United Nations Millennium Declaration and Millennium Development Goals (MDGs) in 2000.

Adaptation of MDGs to Sustainable Development Goals (SDGs) in response to unmet targets by 2015.

Debate over the feasibility of SDGs and the prioritization of basic needs versus broader development goals.

Recap of development theories from the 1950s to present, highlighting the evolution and complexity of development concepts.

Call to action for viewers to consider the best path for development and the accuracy of current theories.

Transcripts

Before we get started, let's take a look at some important terms you need to know when looking at development.

What do we call countries that we need to focus on for development?

You might hear the word 'third world' tossed around... and this was ok 30 years ago

but - this is more of a Cold War term

Then we move to the 'developing world'

This was ok for a while, too, but it's becoming outdated

Now we go with Global North and Global South

This stems from the Global North and Global South divide

Where the Global South constitutes what we used to call the 'developing world'

and the Global North represents the industrialized world.

Alright, so let’s take it back about 70 years … it’s 1950, post WWII and the

theory of development emerges.

At this point, development was really synonymous with economic growth

and prosperity.

The way to achieve this was through the ever popular

ideas of John Maynard Keynes, who you might remember from previous videos.

Keynes believed in state involvement to smooth out the highs and

lows of cyclical economic recessions.

At this point, the commonly held belief was that the Global South would

only develop through capital investment

Essentially, if your economy was doing well, you had yourself some

successful development.

By the end of the 1950s, things started to shift, and Modernization theory

emerged Modernization was defined by the assumption

that development as it progressed

in the west was a “how to guide” for the Global South

This obviously assumed many things, one of

which was that the West was the pinnacle

of development. It was then premised on the idea that capitalism

is good, and inevitably conducive to democratization

To quote Heywood, “Backward or underdeveloped societies are

destined to be transformed into modern or developed ones” - you get the

picture, the West is Best … Never heard that one before …

Oh, and it’s important to note that at this point we are still looking only at

the economy to conceptualize and measure development You’ve probably already come to some of

these conclusions yourself, but critics of modernization argue that it ignores

history (Hi, Colonialism), looks only at internal factors, and

advocates for a state of high mass consumption which is unsustainable.

Out of these critiques of Modernization theory emerged dependency theory in the late 1950s-60s.

This is where I like to think of a pendulum swinging from one side to the

other, because this is exactly what development theories have tended to

do over time Dependency theory swung the pendulum all the

way to the left, stemming from Marxist influences and viewing Modernization

as elitist Dependency turned away from looking at only the

internal happenings of the state, and instead looked at the entire capitalist

world system In this system, dependency theorists saw a

cycle of structural inequality, and argued that the underdevelopment of the

Global South was a direct result of its dependency on the Global North

This is kind of how dependency theorists saw it.

The Global North takes resources from the Global South, the Global North then produces and

innovates goods out of these resources, finally the Global North sells these goods back to the Global South at a

higher cost … no opportunity for innovation in the Global South, and lots of profit for the

Global North… you get the picture … In short… the pros of this theory were that

we were finally looking at some external factors for development and it was an essential

critique of Modernization theory… However, it was still economically focused

and left certain development situations unexplained …

Cue the 1970s - It’s time for neo-liberalism. At this point, the global economy was facing

a major recession due to skyrocketing oil prices in the Middle East

Because of this recession we had to say goodbye to our friend Keynes, and hello to

neo-liberalism. Remember that pendulum I talked about earlier?

Yeah, it’s swinging again.

Neo-liberalism viewed the state as an impediment to development, and

blamed underdevelopment on poor governance in the Global South.

Instead, it argued for full trust in the capitalist world market, subscribing to

the principles of the invisible hand, trickle-down economics, privatization,

free trade, comparative advantage, and deregulation - just to name a few.

During this reign of neo-liberalism, Global North countries issued Structural Adjustment Programs

or SAPs to countries in the Global South. In short, these SAPs these were loans with conditionalities.

The Global South countries could take these loans, and they didn't really have much of a choice

but it was under the assumption that they would follow the Global North's rules.

Many today argue that this was a form of neo-colonialism.

But we'll have to save that for another video!

As you can imagine, neoliberalism has it critics: Many have said that leaves the burden to

fall on the weakest in society, that it provides no protection for domestic

industry, it’s based on western ideals, and some even go as far as to say

that is it responsible for the “lost decade of development”

The move to the 1980s then saw the pendulum swing again, but

almost further than it swung with Dependency Theory. Here we have the

emergence of critical theories. Critical theories are different than the theories

discussed up until this point - they always have a specific agenda and they

focus on human emancipation, freedom, and equality

In the simplest terms, critical theories deconstruct development discourse.

What is discourse you might ask?

Discourse is how we talk about something - what is said, what is not said

Who is included, and who's not. Critical theorists are always looking for what power dynamics exist within

the discourse Critical theory has many sub-branches. From Post-development to

post-colonial theory, to feminist theory

but again, this will just have to wait for another video!

Moving to the 1990s, we see potentially the most significant shift in

development up until this point - that is the emergence of what we now call human development.

This concept of human development was coined

by Indian Nobel Prize winning economist Amartya Sen. Sen explained

this as having “The freedoms to lead the kind of lives we have reasons

to value” This is a significant shift from previous

theories such as modernization and dependency, which looked only at economic

prosperity as a sign of development

Instead, Sen argued that we also need to look at the richness of human

lives, and the capabilities that individuals have to lead the life of their choosing

From this idea emerged things such as the Human Development Index or HDI

and today the United Nations compiles an annual human development

report to attempt to measure development beyond economics

Finally, at the turn of the century we saw a new concern emerge

this is the concern with sustainability. The idea of

Sustainable development is a hot topic in the development landscape

today. This theory looks at how to continue global

development in a way that meets the needs of the present, without compromising

the ability of future generations to meet their own needs

In short, our kids are going to need a planet to live on, too.

In 2000 we saw the adoption of the United Nations

Millennium Declaration. This declaration included the Millennium Development Goals

or MDGs for short - these were a set of sustainable development goals to be achieved by 2015.

Now I know you may be shocked, but 2015 came and went

and the MDGs went unmet. Because of this, they were adapted to the Sustainable

Development Goals or SDGs. The SDGs are a list of 17 Sustainable Development Goals to be achieved

by 2030. Now, I know - These seem like some pretty big goals

Zero hunger, no poverty, gender equality…

Some say that these goals are simply unachievable. Instead, some critics argue that the Global South

needs to focus on meeting some of their basic needs before they can move into things like

climate change and gender equality.

Others say that this is the necessary direction of development in order to address

the rapidly changing needs of both our population and our planet.

Alright - that was a lot of information, so let’s recap. In the 1950s we had development economics,

followed shortly after by Modernization Theory.

Dependency Theory then emerged out of the critiques of modernization.

While dependency theory did make some good ground, it

wasn’t long before the pendulum swung again and we led into the

decade of neo-liberalism.

Critical theories emerged in the 80s, followed by

Amartya’s Sen’s critical coining of human development in the 90s.

Today, the focus is on sustainability,

But are still faced with many of the same global development issues that have

consumed the system for decades.

What theory do you think provides the best path?

Are any of them accurate?

Or is development just too complex of a concept to be put in such a neat box?

Alright - well, with that, thanks for watching.

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And we'll see you again next time!