THEORIES OF DEVELOPMENT

2020-21
THEORIES OF DEVELOPMENT
Learning objectives

• Definition of theory
• Description of each theory (features)
• Criticism(s)
• Applicability of theories of development
Theory

• Is a statement or group of statements

established by reasoned argument
based on known facts, intended to
explain a particular fact or event
Theory

• An organized system of the accepted

knowledge that applies in a variety of
circumstances to explain a variety set of
a phenomenon
• Incorporate facts and laws and tested
hypothesis
Theory of development

• Arguments that attempt to explain the

process of development
• A set of working assumptions to guide us
in our study of understanding the
dynamics of social development
Theory of development

• These assumptions will help in

determining and suggesting which
problems are worth investigating and
they offer a framework for interpreting
the results of our findings on
development
Theory of development

• Modernization
• Rostow’s Stages of economic growth
• Nurkse's Vicious Circle of Poverty
• Radical
• Dependency theory of underdevelopment
• Structural functionalism
• Marxism
• Neoliberal (Rational Choice theory)
• Nyerere Political ideas
Theory of development

• Modernization (Diffusion of modern values and institutions)

• Radical
• Dependency theory of underdevelopment (Delinking,
fully or partially, socialism)
• Structural functionalism
• Marxism
• Neoliberal (Rational Choice theory) (Free market
economy)
Theory of development

• The reasons for our underdevelopment

• Way forward (what to do in order to
develop
Modernization theory of development

• Emerged after the Second World War

• Influenced by the industrial revolution in
Europe and North America
• Due to advancements of western countries in
science and political organization
Modernization theory of development

• The concept of modernization

incorporates the full spectrum of the
transition and drastic transformation that
a traditional society has to undergo in
order to become modern (Hussain et al.,
1981; Lenin, 1964).
Modernization theory of development

• Modernization is about Africa following

the developmental footsteps of Europe
(largely the former colonizer of Africa).
Modernization theory of development

• According to modernity, policies intended

to raise the standard of living of the poor
often consist of disseminating knowledge
and information about more efficient
techniques of production.
Modernization theory of development

• Is an evolutionary theory that is used to summarize

and explain modern transformations of social life
• It focuses on internal factors such as
• Poverty
• Inadequate culture (values of extended family
and collectivism)
• Responsible for making poor countries remain
undeveloped
Modernization theory of development (Assumptions)

• The major assumption embedded within the theory

include
• “For a country to develop, it must first modernize,
implying that it has to undergo an evolutionary
advance in science and technology which would in
turn lead to an increased standard of living”
Modernization theory of development (Assumptions)

• Emphasizes that economic development is

prerequisite for democracy
• Emphasizes the need to enhance the
capacity of political system
Modernization theory of development (Assumptions)

• Emphasizes the role of political culture in the

transformation of traditional societies into
modern societies
• Emphasizes the effects of economic growth in
the transformation of traditional societies into
modern societies
Modernization theory of development (Assumptions)

• Assumes that all societies will travel from tradition

to modernity, and that industrial and democratic
Western countries are the model for the latecomers
to emulate;
• Assumes that modernization will inevitably dissolve
the traditional traits of the Third World countries,
and traditional values and structures must be
replaced by a set of modern ones
Modernization theory of development

• Defines the nature of the relations between the

North and the South as interdependence based
upon the principles of comparative advantages and
free trade
Modernization theory of development (Assumptions)

• The solution or policy implication the modernization

theory suggests is that the traditional and backward
Third World societies should look to the modern
and developed Western societies for guidance,
while the Western countries should transmit more
modern values, institutions, technology, and
financial investment to the Third World countries.
• Divides all societies into traditional and modern
Attributes of Modern society

• Readiness to accommodate the process of

transformation resulting from changes.
• Continuous broadening of life experiences and
receptiveness to new knowledge.
• Continuous planning, calculability and readiness
towards new experiences.
• Predictability of action and the ability to exercise
effective control.
Attributes of Modern society

• High premium on technical skills and

understanding of the principles of production.
• Changing attitudes to kinship, family roles, family
size and the role of religion.
• Changing consumer behavior and the acceptance
of social stratification.
Modernization theory of development

• Two schools of thoughts

• Rostow’s Stages of economic growth
• Nurkse's Vicious Circle of Poverty
Rostow’s Stages of economic growth

• Profounder was American Economist named Walt

Whitman Rostow in 1960
• Describe economic development as a stage wise
process
• Pointed out five key stages to attain economic
growth
• These are
Rostow’s Stages of economic growth

• The traditional society

• The transition stage
• The “take-off‘ stage
• The drive to maturity
• The age of high mass consumption
 Rostow’s Stages of economic growth

• Rostow’s stages are distinguished by

consideration of the stages of the
following:
• Productive capacity and technology
• Manufacturing industry
• Transport
• Savings and investment and trade
 The traditional society stage

• Characterized by low levels of

technological knowledge and low per
capita production.
• Subsistence economy with no surplus
• The predominant industry is small scale
agriculture highly dependants on labor
intensive technologies
 The traditional society stage

• Pre-capitalist
• Technologically constrained
• Traditional values and beliefs
• Stagnant and unchanging
 Transition stage /Pre-take off

• Is the demonstration of the removal and

replacement of the variables that inhibit
growth, intrinsic in traditional societies
with scientific advances in sectors such
as manufacturing and agriculture.
 Transition stage

• During this stage surplus for trading

emerges and savings and investment
are slowly growing due to the emergency
of entrepreneurs
 Transition stage

• The main economic requirement in the

transition phase is that the level of
investment should be raised to at least
10 per cent of national income to ensure
self-sustaining growth
 Take off stage

• The “take-off” stage represents the stage at which

societies move towards self sustained growth
• This stage is characterized by rising net investment
(more than 10%) and savings that can be used for
re-investment to garner industrialization
 The drive to maturity stage

• Represents the phase were growth is now diverse

supported by technological innovations and the
economic structure shows continuous changes as
older industries stagnate and make way for new
ventures (Economic diversifications)
• Less reliance on imports
 The stage of high mass consumption

• Rostow’s final stage of his evolutionary proposal

• This stage features improved consumption patterns
and an apparent shift towards services and durable
consumer goods
 The stage of high mass consumption

• This stage is characterized by a society

with a wide choice in the market
• Technology is highly advanced
• Consumers’ sovereignty is highly
expected
• Free competition is the key to economic
development
 Food for thought
“In which stage Tanzania belongs
currently”
Nurkse's Vicious Circle of Poverty
 Nurkse's Vicious Circle of Poverty

• Founded by prominent Economic

Professor known as Ragnar Nurkse
(1907 – 1959) (Russian)
• Attempted to examine problems of
capital formation in underdeveloped
countries
 Nurkse's Vicious Circle of Poverty

• Nurkse’s theory expresses the circular

relationships that afflict both the demand
and the supply side of the problem of
capital formation in economically
backward areas
 Nurkse's Vicious Circle of Poverty

• Nurkse stresses the role of savings and

capital formation in economic
development
• According to Nurkse a society is poor
because it is poor
 Nurkse's Vicious Circle of Poverty

• Complex web of interlocking vicious

circles each of which constitutes a chain
of causes and effect relationships where
one unfavorable circumstance leads to
another and produce a downward spiral
• Diagrammatical presentation of the
theory
 Low Income

Low Savings
Inability to Low Consumption
productive capacity

Low Investment
Lack of markets
 Nurkse's Vicious Circle of Poverty

• Remedy for that

• Foreign aid should be injected to allow
countries to increase low levels of
productivity
• Aid would stimulate growth in modern
sector and reduce the size of informal or
traditional sector
 Limitations of Modernization theories

• Rostow Stages of Economic growth

• Does not explain the experience of
countries with different cultures and
traditions e.g. Sub Sahara countries
which have experienced little
economic development
 Limitations of Modernization theories

• Rostow Stages of Economic growth

• His model is based on American and
European history
 Limitations of Modernization theories

• Rostow Stages of Economic growth

• The stages are not identifiable
properly as the conditions of the
take-off and pre take-off stage are
very similar and also overlap
 Limitations of Modernization theories

• Rostow Stages of Economic growth

• According to Rostow growth
becomes automatic by the time it
reaches the maturity stage
 Limitations of Modernization theories

• Nurkse's Vicious Circle of Poverty

• Other causes of poverty /
backwardness not addressed
 Limitations of Modernization theories

• Nurkse's Vicious Circle of Poverty

• Other causes of poverty /
backwardness not addressed
 RADICAL THEORIES

• This includes groups of doctrines and

different critical thought that attempt to
provide critical analysis of the
development processes
 RADICAL THEORIES

• Among the theories include

• Dependency theory
• Structural functionalism/ structural
tradition are found to provide some
key contributions on development
 RADICAL THEORIES

• Address more about the cause of

underdevelopment than it does about
how Development takes place
• Focus in Socialist countries where the
means of production (Land, Resource
and capital) are controlled by the
community
 RADICAL THEORIES

• A radical thought challenges the neo

colonialism as the drive to economic
exploitation to poor countries
• Neo-colonialism refers to the economic
dominance of the core over the former
colonial nations-economic rather than
political control.
 RADICAL THEORIES

• View DC as the mother manufacturing

and commercial centers Vs. LDC as a
periphery (suppliers of raw materials,
food and minerals with prices set by the
core countries
 The Dependency theory

• Dependency refers to over reliance on

another nation
• Explain how the process of international
trade and domestic development makes
some LDC's ever more economically
dependent on developed countries
("DC's").
 The Dependency theory

• Dependency theory refers to

relationships and links between
developed and developing economies
and region
 The Dependency theory

• The theory sees underdevelopment as

the result of unequal power relationships
between rich developed capitalist
countries and poor developing ones
 The Dependency theory

• Powerful developed countries dominate

dependent powerless LDC's via the
capitalist system.
 The Dependency theory

• In the Dependency model under

development is externally induced (i.e.
DC not LDC’s fault) system. Growth can
only be achieved in a closed economy
and pursue self-reliance through
planning.
 The Dependency theory

• Dominant DC's have such a

technological and industrial advantage
that they can ensure the ‘rules of the
game’ (as set out by World Bank and
IMF) works in their own self-interest.
 The Dependency theory

• In this model under-development is

externally induced (i.e. DC not LDC’s
fault)
• Only a break up of the world capitalist
system and a redistribution of assets (e.g.
elimination of world debt) will ‘free’ LDC's
The Dependency theory

• Features of underdevelopment according to

Dependency theorists include:
• Poverty

• Low labour productivity

• Backward technology

• Inadequate equipment, science and

technology
• Heavy dependence upon primitive agrarian

sector
 The Dependency theory

• Dependency theorists include:

• Frank Andre Gunder

• Furtado Celso

• Dos Santos Theotonio

 Limitation of Dependency theory

• Dependency theory views the historical

exploitation of poor nations from the
developed ones as a cause of under
development neglecting the role of
contemporary internal political and
economic conditions that bears great role
in development
 Structural Functionalism

• Theorists include Talcott Parsons in

sociology and later Gabriel Almond
• This theory implied that societies
regardless of their peculiarities inherently
perform the same basic functions, but
they are differentiated in terms of which
structures perform these functions
 Structural Functionalism

• Thus, for instance, a country's

development is measured in terms of
how its different structures (the legal,
religious, politics, economic and
cultural institutions etc.) perform
 Structural Functionalism

• The assumption being that the more

pluralistic a country is, the more it
develop
• Pluralism entails many countries
structures contribute differently in
achieving growth in development
programs
 Structural Functionalism

• Structural functionalism was built on the

assumption that development is a linear
evolution, involving structural
differentiations and cultural
secularization using western democracy
as the ultimate stage (refer to Rostow,
Nurkse's theories of development).
 Structural Functionalism

• Structural functionalism was meant to be

a counter point to the universality
ambitions of Marxist theory.
 Limitations of Structural Functionalism

• Unable to account for social change, or

for structural contradictions and conflict
• It ignores inequalities including race,
gender, class, which causes tension and
conflict
 Limitations of Structural Functionalism

• Unable to account for social change, or

for structural contradictions and conflict
• It ignores inequalities including race,
gender, class, which causes tension and
conflict
NEO-LIBERAL
 Neo-Liberal

• Neoliberalism
• Is a policy model of social studies and
economics that transfers control of economic
factors to the private sector (profit making)
from the public sector (its role is service
provision) (privatization)
• The opposite of Privatization is
Nationalization
 Neo-Liberal

• Rational choice theory which began its

impact on development theory in the
latter part of the 1970
• The theory stressed the importance of
individual actors
 Neo-Liberal

• Development is an outcome of a
multitude of individuals decisions
• Operating in market context, people
make their own decisions in voluntary
fashions
 Neo-Liberal

• Samuel Popkin (1979) and Robert

Bates (1981) are among the leading
neo-liberals
• Theirs is essentially a theory of the
market
The Political Ideas of J.K. Nyerere
 Nyerere Political Ideology

• Human centred development approach

(common man)
• Freedom, liberation of all mankind from
poverty, injustice, diseases and human
degradation
• Progressive emancipation of people and
nations from all forms of exploitation,
underdevelopment and oppression
 J.K. Nyerere on development

• Idea of socialism (socialist idea)

• Focusing on equality, human dignity and
democracy
• Details of socialism expressed in Arusha
declaration of 1967 ( TANU CREEDS,
Pillars of Socialism, Aims of Socialisms)
 TANU CREEDS

• (a) That all human beings are equal;

• (b) That every individual has a right to
dignity and respect;
• (c) That every citizen is an integral part
of the nation and has the right to take an
equal part in Government at local,
regional and national level;
 TANU CREEDS

• (d) That every citizen has the right to

freedom of expression, of movement, of
religious belief and of association within
the context of the law;
• (e) That every individual has the right to
receive from society protection of his life
and of property held according to law;
 TANU CREEDS

• (f) That every individual has the right to

receive a just return for his labour;
• (g) That all citizens together possess all
the natural resources of the country in
trust for their descendants;
 TANU CREEDS

• (h) That in order to ensure economic

justice the state must have effective
control over the principal means of
production; and
 TANU CREEDS

• (i) That it is the responsibility of the state to

intervene actively in the economic life of the
nation so as to ensure the well-being of all
citizens, and so as to prevent the exploitation
of one person by another or one group by
another, and so as to prevent the
accumulation of wealth to an extent which is
inconsistent with the existence of a classless
society.
J.K. Nyerere on development
• The declaration addressed poverty by
emphasizing rural development to bridge
income gaps between the urban and the
rural people and reducing income
disparities among regions and wage
earners
J.K. Nyerere on development

• The pillars of ujamaa included

• An emphasis on agriculture as the
economy’s backbone,
• The nationalization of the major
means of production,
• Education for self-reliance
J.K. Nyerere on development
• The pillars of ujamaa included (cont……..)
• Basic import-substituting (replacing
foreign imports with domestic
production)
• Industrialization
• Concentration of power in a single
political party
• Ujamaa villages (Kibbutz idea)
J.K. Nyerere on development

• Ujamaa aimed at diversifying people’s

choices and freedoms to live a long and
healthy life, have access to education
and knowledge, and participate in their
communities with dignity and self-
respect.
• Consistent with Sen’s and the UNDP’s
view on human development
Discuss the relevance of Arusha Declaration in
today’s Tanzania context
Aims of Arusha Declaration
• To consolidate and maintain the independence of
this country and the freedom of its people;
• To safeguard the inherent dignity of the individual in
accordance with the Universal Declaration of
Human Rights;
• To ensure that this country shall be governed by a
democratic socialist government of the people;
• To cooperate with all the political parties in Africa
Aims of Arusha Declaration
• To See the government mobilizes the resources of
this country towards the elimination of poverty,
ignorance and disease;
• To see that the Government actively assists in the
formation and maintenance of cooperative
organizations;
• To see that wherever possible the Government
itself directly participates in the economic
development of this country
Aims of Arusha Declaration
• To see that the Government gives equal
opportunity to all men and women irrespective of
race, religion or status;
• To see that the Government eradicates all types of
exploitation, intimidation, discrimination, bribery
and corruption;
• To see that the government exercises effective
control over the principal means of production and
pursues policies which facilitate the way to
collective ownership of the resources of this
country;
Aims of Arusha Declaration
• To see that the Government co-operates with other
States in Africa in bringing about African Unity;
• To see that the Government works tirelessly
towards world peace and security through the
United Nations Organization
Critique of Nyerere’s political ideology
Critique of Nyerere’s political ideology
• In Ujamaa, Nyerere does not discuss the means by
which socialism could be built in Tanzania. What
we get are mere postulations on the kind of
institutions which would have to be created and
assertion that society must be organized if it is
going to serve the needs of man
• Nyerere’s ideology of Ujamaa na Kujitegemea and
the means of returning to traditional African values
do not reflect the rapidly changing socio-economic
conditions of Africa and way of life is not indicated
Critique of Nyerere’s political ideology
• Even Socialism was almost casually defined. It
seems that Nyerere was content to leave the
definition of socialism at the level of “an attitude of
mind” without seriously inquiring as to how this
“attitude” could be brought about in modern African
States
• Nyerere’s political ideology did not contain a critical
critique of the role of the neo-colonial states and
therefore could not produce viable answers on how
this problem can be addressed
 Critique of Nyerere’s political ideology
• Nyerere asserts that an ideal society must always be
based on three essentials: Equality, Freedom and
Unit. The mechanisms of achieving or advancing
towards this ideal society are not clearly elaborated
• In essence Nyerere remained an idealist in this
political thinking desiring a new society but without
really knowing how the ideal society was to be
achieved
• These weaknesses soon lead to the failure of
Nyerere’s dream of achieving a socialist society in
Tanzania and towards a united Africa
Theory Emergence/Dominance Thinkers Discipline/tradition The Problem The Solution

Modernization Late 1950s Rostow, Weberian, Sociology Traditional Modernization

Shils, Pye, society through
Almond, diffusion of
Huntington modern values
and institutions

Dependency 1960 Cardoso, Economic Dependency Delinking, fully

theory Frank, Commission for Latin within a world or partially or
Wallerstein, America capitalist socialism
Amin system

Marxism 1970s Brenner, Marxist theory of Articulation of Not perspective

Warren modes of production modes of but
production development of
capitalist
relations of
production
/socialism

Neo-liberalism 1970s Bauer, Neo classical, State Free market

Balassa, Marginalist intervention
Kreuger, Lal economics
 References

• Nyerere, J.K. (1965). Nyerere on Socialism. Oxford

University Press, Dar es Salaam
• Swanepoel, H and De Beer, F (2000). Introduction to
Development Studies, 2nd Edition, Oxford University
Press, united Kingdom, 284 pp
• Peet, R and Hartwick, E (2009). Theories of Development:
Contentions, Arguments, Alternatives (2nd Edition). The
Guilford Press: A Division of Guilford Publications, Inc, 337
pages