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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 

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