International Development

International Development

1. THEORIES

   • CIVIL SOCIETY
     • Habermas
       • civil society enables inclusive debate
     • Hegel
       • links state and market through civil society (innovation: previously civil society seen as arm of nation-state)
     • Tocqueville
       • civil society is the “grassroot” equivalent of national/local political and public life
     • Marx
       • civil society is the “grassroot” equivalent of capitalist market structures – has same effect on lower classes
   • STATE
     • Locke
       • state is result of voluntary social contract
     • Hobbes
       • strong central state is only way to have a social contract
     • Weber
       • state should have checks and balances between different arms of government - bureaucracy
         • Legal-Rational Tradition: leadership in which the authority of an organization or a ruling regime is largely tied to legal rationality, legal legitimacy and bureaucracy
     • Gramsci
       • Cultural hegemony is “self-oppression”
   • MARKET
     • Polayni
       • state needs to mitigate effects of market and the two should work together
     • Nozick
       • Under what circumstances can we interfere in markets? Might individuals voluntarily enslave themselves if markets are not controlled?
     • FAILURE
       • Coordination failure: organisation cannot coordinate their choices effectively
         • Big Push model: accelerating economic development across ‘a broad spectrum of new industries and skills’ usually using public policy
           • Rosenstein-Rodan
           • aims for there to get a slightly greater incentive to invest
         • Glavan
           • leads to a dependency of different agents on one another, may prohibit the speed of development
         • Howett
           • market depend very heavily on their expectations of other organisations acting to take advantages
     • GROWTH
       • Rostow’s growth-stages model
       • Lewis 2-sector model
   • INSTITUTIONS
     • North
       • institutions as norms
     • Khan
       • transition costs in addition to transaction costs as determinants of institutional change and its timing

2. CLASSICAL

   • List
     • late development may not be the same as early development.
   • Smith
     • supply, demand, prices, and competition left free of government regulation + material self-interest = maximize wealth of a society through profit-driven production of goods and services
   • Marx
     • concern over alienation of individual from work, society, economy, government
   • Keynes
     • government intervention to correct for market failure

3. MODERN

   • Prebisch
     • Dependency theory – periphery dependent on core
   • Williamson
     • Washington Consensus - Developing countries must apply particular adjustments to their economies to be able to grow sustainably

4. GLOBALISATION

   • CAPITALISM
     • Brenner
       • Britain was first to develop because it was first with capitalist agriculture
     • Landes
       • Britain was first to develop because culture was conducive to what would become the norm in future successful economies
   • WEST
     • Phillips
       • colonial (European-run) state structures not strong enough to develop colonies sustainably – not enough influence or interest
     • Acemoglu, Johnson, and Robinson
       • colonial origins of comparative development: settler mortality determined institutions, which determines modern standards of living
   • a process in which national economies increasingly integrate into international markets
     • triad group; anarchic international systems; democratic governance; world order; Westphalian sovereignty
       • Griswold

5. DEVELOPMENT

   • DEMOCRACY
     • Dahl
       • effective participation; equality in voting; enlightened understanding; control of the agenda; and inclusion of adults
     • Little
       • “a set of collective decision-making institutions through which individuals assert themselves in the public sphere”
         • authoritarian states are much more effective at implementing a ‘developmental’ state
     • Fukuyama
       • Western liberal democracy will come to be the universal system of government
     • North
       • authoritarian settings are much more likely to lead to the authoritarian leader changing property rights for their own benefit
     • Olsen
       • authoritarian states can never establish credible property rights due to a lack of checks and balances
   • Forsyth
     • “the production of social change that creates conditions where more and more people can achieve their human potential”
   • POVERTY
     • Sen
       • “there has never been a famine in a functioning multiparty democracy”
       • greater importance on economic needs than political values in authoritarian states
     • Varshney
       • authoritarian regimes can combat poverty very well and very poorly
       • democratic governments are unable to alleviate poverty because of pressures of achieving short-term results
   • THEORY
     • Modernisation theory
       • false-paradigm model
         • developing countries have failed in their development schemes because those schemes are based on unfitting development models
     • Neo-colonial dependence model
       • underdevelopment exists in developing countries because of exploitation from former colonial rulers
     • market-friendly approach
       • successful development policy requires governments to create an open market environment and only to intervene if the market is failing