The emergence of development was therefore, a necessity of non-European countries to advance politically and economically which started taking place in the post-colonial period (McMichael, 2008). Moreover, social theories have thought about the concept of development differently and have contrasting views of why the implications of trade and international relations set back the development of the third world
43, 44; Billet, 1993, p. 20). to the advanced nations, resulting in continuing surplus extraction and therefore the original country losing the surplus to foreign capital or the élite, hence maintaining the country's economic development stagnant (Ibid. ; Ibid.). One of Frank's main arguments was that the core country’s development always requires that the “periphery”countries experience underdevelopment (Ibid., p.
Globalisation has been perceived as a solution to reduce income inequality across the globe. This could be explained by improvements in infrastructures and communications, which allow the developing countries to close the gap with the richer developed countries. Moreover, the theory of comparative advantage also supports this stand. However, the article suggested that despite this supposedly positive global phenomenon, inequality has instead worsened within many developing countries. One possible explanation to this issue could be the problem of outsourcing, where there is a distinctive difference with regards to the rise in productivity between the skilled and unskilled workers.
The pursuit of modernization theory in the West nations leads to the success of development as a modern society (McKay, 2016, p. 56). However, a major weakness is that core countries supply their products higher its value. Developing countries are undeveloped because of the advantage in trade that developed countries have, for example the high price of goods like manufactures. Rich countries gain considerable advantage in price setting from goods because they have political control over markets (McKay, 2016, p. 62). The inequality of development is also one of the weaknesses of modernization theory.
Introduction Historically international development was conceived by US both as a strategic (geopolitical, foreign policy) project and as an objective process of economic progress. Arguably international cooperation for international development, in its various forms, was designed as a means of ensuring that post-colonial states in their pursuit of national development would not succumb to the lure of communism and fall prey to the model presented by the USSR. Hence international development can be perceived not only as a model and strategy for reviving the economic growth but to also provide conditions of political stability for the neoliberal world order and a local benign or human face to imperialism. That is why nongovernmental development
This is the suggestion behind the concept of being ‘dependent’, the riches of wealthy countries ‘depend’ upon the poverty of impoverished countries. The theory attacks the solutions offered by the Modernization Theory as being strategies built to enhance the ‘exploitation’ of the third world. The theory sheds light on the issue of Distorted Development; according to James Midgley (1995) inaccurate expansion is “a disappointment to complement financial and communal development entities, and to safeguard that the aids of economic
The endogenous growth theory is a more recent theory, which makes a significant improvement over the previous growth theories. It incorporates technology in the model as an endogenous variable rather than exogenous variable. Thus it posits that mostly economic growth comes from technological progress through creative
The inequality between developed countries and developing countries is more significant than that within individual nations. Due to the difference in socio-economic development, developed countries have a greater control of resources and energy. Increase in precipitation led by global warming has altered the distribution and sharing of water resources over the globe, in other words, developing countries are often exploitated in the sharing and delivery of water resources (Gleick, 1992). Changing climates have worsened the issue of water shortage in the third world such as African cities. Similarly, other resources such as fossial fuels and food will be under influence of changing climates (Parry & Swaminathan, 1992).
Developed countries, a term used by the International Monetary Fund (hereafter IMF), are mainly characterised by their “high-income”, generally having “a per capita GDP in excess of $15,000" and their “market-oriented economies” (Washington DC: Central Intelligence Agency, 2013). Developing countries, on the other end, refer to the “countries in transition” (Washington DC: Central Intelligence Agency, 2013). It is also important to note that developed countries tend to be of “mainly democratic nations" (Washington DC: Central Intelligence Agency, 2013). Based upon the understanding that developed state are usually states that enjoy a higher GDP and of democratic system, the paper then draws the link between them and the aforementioned factors.
According to the theory of globalisation, trade, investment, communication, information flows, cultural exchange, and politic cooperation are always coexistent issues and affect significantly when a nation decides to open their economy. Previous studies have always considered trade as an independent issue in the estimation, and this is a significant limitation. Modern economic theory reflects the fact that human and technological resources are one of the essential resources for economic development and this is impulsed by trade and investment liberalisation. Moreover, the theory of modernisation emphasises that investment, technology, education and cultural modernisation are important resources to promote economic development and increase social welfare. However, since Sub-Sahara Africa is the lowest income area of the world, the impact of free trade on their income may be different.