MODULE 2 – ADDITIONAL NOTES primary commodity production in the
Politics of Development Third
World Systems Theory by Immanuel MODERNITY VS. MODERNIZATION Wallerstein o Distinguished three groups of states: Core, Modernity is a condition of social existence Semi-Periphery, and Periphery that is radically different to all past forms of o Core states are high profiting states, while human experience, while Modernization semi-periphery and periphery states are processes of transformation esp. towards types relatively low-consuming and low of social, economic, and political systems profiting states. developed in Western societies. o Core states needed the periphery states to o Modernization is transitional process of sustain high levels of consumption while moving from “traditional” or “primitive” maintaining material security communities to modern societies International Division of Labor - Explains the Anticipation of Modernization: West ---> relationship between the developing and South American, African, Asian Continents developed nations Modernization Theories o However, this dualism is not a natural o Concerned with the economic growth process rather is colonial heritage which within societies (i.e., GNP as measure) leads to a structural (non-market) problem o Mostly deal with the consequences of that can’t be removed by the market conditions (soc., pol., cul.) in facilitating mechanism. economic growth and industrialization o According to Singer and Presbisch, o Specifies the nitty-gritty of social changes declining terms of trade of the developing in the course national development nations is the product of the unequal Industrialization – is the main ingredient in the relationship of this two. In order to economic growth address this, rapid development is Development implies economic growth, but not important – which is only possible confined in terms of output per capita (it is a through rapid industrialization more general term than modernization and industrialization) STRATEGIES OF INDUSTRIALIZATION o It could be seen through various lenses; These strategies of industrialization express the development could mean equitable structure of international trade and trade policies distribution of wealth or even providing of a specific country (Ito ‘yung nag-iidentify the basic needs of the constituents kung ano ba ‘yung appropriate na policies na inaadopt nila based sa kanilang orientation, STRUCTURALISM whether inward or outward). Structuralist approaches consider the Import Substituting (IS) Industrialization – it differences in structure of developing coutries was introduced to the developing nations where o It also attempts to identify the specific the government is expected to intervene to fast- rigidies, lags, and even other structures of track industrialization. developing countries that affect economic o Import substitution (also known as adjustments and the choice of inward-oriented strategies) refer to the development policies strategy of substituting imported good According to Raul Prebisch, modernization with local ones to meet internal demands was not a spontaneous but rather a politically o Sa IS strategies, ginagawa ito para induced process. mapataas ‘yung mga existing enterprise o political intervention and regulation had to especially sa production industry – para tackle the disequilibrium caused by an hindi na sila mag import. Sa mga-IS international division of labor that placed dependent countries, close ang kanilang manufacturing in the First World and economy sa global markets and mataas ang kanilang protection levels – through tariff and non-tariff barriers, interest rates. Example (gawa gawa ko lang ito, magbigay kayo o IS strategy is opted to modernize their ng sarili niyong example fleece HAHA): One of local industry/economy para mapantayan the implications of this is the imposition of nila ‘yung sa developing countries and Philippine Mining Act of 1995. This legislation has para mas maging competitive sila sa trade. opened the mineral-rich country to be exploited by Export-Promotion (EP) Industrialization – foreign companies, in the guise of the promised the opposite of IS Strategies, also known as the foreign investment and economy boost. This pro- outward-oriented strategies mining law has provided incentives such as political o EP strat has little to no government rights, full ownership of land, and tax holidays with intervention or very marginal, when it the prospective investors – that later on leads to comes to price levels, production factors 400% spur of foreign mining companies in the and exchange rates. Philippines. But overtime, this affected the o lesser bureaucracy on EP strategies (mas indigenous people and their homes. Many of them mabilis ‘yung process sa exportation) were displaced and their source of living are o Pero magiging successful lang daw itong massively destroyed by the exploitative industry of EP strategies with the government support mining. And the expected boost in the economy is a (not intervention): huge scam, as mining industry only contributed just katulad nalang ng trainings and 0.6% to country’s Gross Domestic Product. Not capacity-buildings for exporters only it is bogus, the government misplaced the and promotion ng export goods indigenous rights and environmental protection in sa foreign competitors. its priorities, just because of the pressure from the direct subsidy (para international institutions to make Philippines a masuportahan na makapagsimula globally competitive player in the world market. ‘yung mga industries ng bansa na potential exporters) CRITICAL THEORIES Known as the emancipation as it focused on freeing the people from the modern state and economy DEPENDENCY THEORY Came from the ideas of Kant and Marx Dependency theories are response to the Frankfurt school: a theory is critical to the structuralist approach, wherein it sought to find extent that it seeks human “emancipation from the solution to the ‘development of the slavery”, acts as a “liberating … influence”, and metropolis and the underdevelopment of the works “to create a world which satisfies the satellite’ needs and powers of” human beings o Focuses on the role of international capitalist system in the underdevelopment of the periphery o It uses the core-periphery or world systems as unit of analysis; a measure for explaining global inequalities o Tausch highlights, “a high penetration by foreign capital, a heavy technological dependence from the leading countries, the overall subordination of the productive capacities of the country towards the interests of the evolving international division of labor, [and] the concentration of exports on a few commodities and recipients” as the main features of the periphery and semi-periphery countries