The Dependency theory and The Modernisation theory.

The Dependency Theory The dependency theory is the idea that developing countries become reliant, or dependant or developed countries in order to economically developed as a country. Gunder Frank was an economist. He argued that rich colonial (Commonly known as metropolitan) powers acquired wealth through exploiting weaker satellite countries. His model drew heavily on a reading of the worlds history. The satellite countries provide cheap primary commodities to the richer countries. The rich countries then use these raw materials to produce relatively expensive manufactured goods, which are then sold back to the peripheral or satellite countries. Frank This is a form of theft He goes on further to argue that the theft is continuing through the policies of the World Bank, international monetary fund, and through the activities and presence of TNCs. TNCs accused on introducing inappropriate new consumption patterns and out competing local firms. Frank (1969) Poorer countries experience their greatest economic developedment If and when their ties to the metropolis are weakest. The Modernisation Theory For a country to be seen as modern, modernisation theorists say it has to undergo an evolutionary advance in its sciences and technologies, which in turn would lead to an increased standard of living for all. Some countries may not have developed due to internal factors such as poverty or inadequate culture. Modernisation theorists aim to:

1. Explain why poorer countries have failed to evolve into modern societies. 2. Reduce the spread of communism by presenting capitalist values as the solution to poverty. Rostows evolutionary ladder of development A country must take one step at a time:

The Dependency theory and The Modernisation theory. Poorer countries make the choice between poverty and socialist revolution Key Points:

1. Underdevelopment is a historical process, not a condition necessarily intrinsic to poorer countries 2. The dominant and dependant countries together form a capitalist system. 3. Underdevelopment is an inherent consequence of the functioning of the world system. Critique:

Parsons: Traditional values block a country from developing e.g. valuing the extended family blocks geographical mobility. Traditional values Ascription Particularism Collectivism Modern values Achievement Universalism Individualism

1. Narrow focus on exchange relations as basis for domination 2. Doesnt look at local processes of exploitation and exclusion 3. Franks model is undermined by the changing economic condition of some formerly poor countries e.g. Asian Tigers Wallersteins world system theory believed that the periphery was being exploited by richer countries (Also known as the core). Between the core and periphery, there are semiperiphery countries that import raw materials from the periphery and hi-tech goods from the core, and export

Role of modernisation of the west in developing countries:

1. Western investment in factories, expertise and equipment WB 2. Western funding to introduce meritocratic education (Hoselitz) 3. Mass media to disseminate modern ideas e.g. nuclear families (Inkles)

The Dependency theory and The Modernisation theory. semi-manufactured goods to the core and industrial products to the periphery. 4. Urbanisation must be encouraged (Hoselitz) Criticisms

1. Its ethnocentric devalues traditional values, ignores increasing inequality, it is not a neutral theory. 2. Education in developing world mainly benefits small, local elites. 3. It assumes unlimited natural resources for industrial expansion.