Developing Theories

Developing Theories

1. Development

   • Economic progress
   • The development of society
   • Politics

2. A theoretical framework for development

   • Modernisation (1950-1960)
     • Modernisation views socio-economic development as an evolutionary and linear path from a traditional society to a modern society.
       • Stage one- Traditional Society
       • Stage two - Preconditions for take off
         • New ideas favouring economic progress arise, leading to the idea of economic change through increased trade and the establishment of infant industries. A new political elite emerges, such as the entrepreneurial bourgeoisie of the Industrial Revolution to challenge the power of the landed classes.
       • Stage three - The Take off
         • Industrialisation replaces agriculture as the generating force of the economy. This happens through new technology or the influence of the entrepreneurial class who prioritise modernisation of the economy. Agriculture also becomes commercialised with a growth in productivity. The influence of the market leads to new political, social and economic structures. Rural to urban population drift takes place.
       • Stage four - The Drive to Maturity
         • Over a period of approximately 40 years, the country builds on its progress. Investment grows, 10–20 per cent of the national income is invested in industry, technology spreads to all parts of the economy, and the economy becomes a part of the international system. There is a move away from heavy industry, as what is produced now becomes a matter of choice rather than necessity
       • Stage five - The Age of Mass Consumption
         • The economy matures, the population can enjoy the benefits of mass consumption, a high standard of material living and, if it wants, a welfare state. According to Rostow, in the US this stage was symbolised by the mass production of the motor car. The balance in the economy progressively shifts to a service economy vis-à-vis an industrial one.
   • Dependency
     • Dependency theorists argue that developing countries have external and internal political, institutional and economic structures that keep them in a dependent position relative to developed countries.
       • Subsequently, development theorists attempted to formulate an explanation of the causes of underdevelopment in an holistic framework, based upon the interaction of economic and social structures within an international system.
         • Development theory is also referred to as ‘world systems theory’ and ‘underdevelopment theory.’
           • Andre Gunder Frank, who viewed development and underdevelopment as part of the same world capitalist system.
   • Economic neoliberalism
     • The economic rationale for this policy is that different multiplier effects should work through the economy, generating extra income, jobs and sales.
       • Thus, the economic benefits should ‘trickle down’ to all classes and segments of society from the initial investment.
         • ‘Comparative advantage’
           • Thus, access to loans and sources of finance provided by the IMF is conditional on the adoption of policy reforms designed to reduce state economic intervention and generate market-orientated growth.
   • Alternative developmen
     • ’The alternative development paradigm is a pragmatic, broadly based approach, which arose out of criticism of these models.’
       • The alternative paradigm is centred upon people and the natural environment, emphasising democracy and planning from the ‘bottom-up’ rather than the ‘top-down.’
         • One alternative approach to development is to aim to fulfil basic human needs and place emphasis on the development of the human personality.
           • The alternative paradigm also places a strong emphasis upon the conservation of natural resources and ecosystems.
   • Development and tourism
     • Tourism was essentially equated with economic development as part of the modernisation process, tourism as a ‘smokeless industry’
     • International tourism becomes a part of mass consumption
     • Idea of tourism as a plantation economy
     • The alternative paradigm also saw the emergence of new ideas on tourism development, including alternative tourism, ecotourism and sustainable tourism. Inherent to these types of tourism is a ‘bottom-up’ approach emphasizing community involvement.
   • Application of sustainability in tourism
     • The concept of sustainability has been applied in the tourism sector in different ways, at both national and local levels, and in the public, private and voluntary sectors.
     • Suggests that the tourism industry has adopted sustainability for three reasons: ‘economics, public relations and marketing’.
     • Five main goals of sustainable tourism were identified: (1) to develop greater awareness and understanding of the significant contributions that tourism can make to the environment and economy; (2) to promote equity and development; (3) to improve the quality of life of the host community; (4) to provide a high quality of experience for the visitor; and (5) to maintain the quality of the environment on which the foregoing objectives depend.

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