Politics of the Developing World - Essay Example

 Politics of the Developing World Section A Third World The term third world refers to countries that are under-developed in terms of economy. The definition captures the meanings of poverty, high rates of birth, and dependence on the developed economies. Such countries are found in Africa, Asia, Oceania, and Latin America. North-South Divide This term refers to the differences in the economy and political systems that divide groups of countries in the world. The north consists of such countries as North America, Australia, Japan, and Europe. On the other hand, the south comprises of Africa, Asia, and Latin America. Political Economy This is a term used to describe the relationship between the state, the legal system, and the economy. In general, terms it captures the interplay between the three facets in a way that determines the stability of countries and the economic structures. Development Development refers to the growth of a country in terms of matters of economy, governance, and human development. The term embraces such areas as the growth of GDP, economic growth in relation to improvement of infrastructure, healthcare, education systems, and other indicators of growth. New International Economic Order The term describes a combination of proposals created by developing countries in the 1970s with the objective of improving their economies. The proposals included the improvement of trade terms through favorable tariffs and enhancing development assistance. Walt Rostow (1916-2003) He was a renowned American economist and an acclaimed political thinker. Rostow was a staunch defender of capitalism and policies of free enterprise in the twentieth century. Rostow played a significant role in determining US foreign policies particularly with regard to Asia. Raul Prebisch (1901-1986) Prebisch was a renowned economist from Agentina remembered for contributing to the development of structuralist economics. He developed a trade-focused approach on matters of development and recommended preferential treatment for some countries in trading matters. Hans Singer (1910-2006) Singer was a German development economist. He believed that terms of trade generally do not play to the advantage of primary producers. He advocated for the increment of foreign aid to poor countries. Hegemonic Stability Theory The theory was developed for understanding international relations. The leadership of a hegemon in whatever form eventually results in the deployment of its influence on economic systems. The theory is largely attributed to Robert Keohane although various theorists who gave it varying interpretations developed it. Joseph Stiglitz (1943-Present) Stiglitz is an American economist well known for his strong support of globalization and the creation of free market economies. Much of his contribution in economics are in the areas of income distribution, international trade, corporate governance, and other areas that relate to modern economies. Section B 1). Different Interpretations of Poverty The United Nations approach to poverty was largely focused on the aspects of unemployment, equality, and poverty. On the other hand, the Bretton woods institutions focussed largely on the aspect of economic development as the key driver of development or the elimination of poverty. The United Nations was cognizant of the fact that economic growth does not necessarily translate into development. The difference between the two systems is mainly focused on the human factor at the core of the developmental initiatives. The IMF and World Bank kind of development was largely hinged on the development of free market economies, which would spur economic growth and eventually lead to the elimination of poverty. 3). Realism, Institutionalism, and Structuralism The realist view, as understood within the framework of the International Political Economy (IPE) was based on policies that supported the use of tariffs to shield weak and infant economies. Proponents of the view argued in favor of the protection of weak domestic economies from the adverse effects of competition from the developed and powerful economies. The realist view is largely protective and conservative in nature as it also promoted the need to limit trade between developed countries and their former colonies. Alternative applications of the realist view have come forth in the form of mercantilism and developmentalism. Institutionalism, on the other hand, lays much emphasis on the manner in which economic processes and international relations should be controlled by institutional rules that exempt such relations from the influence of state laws or conflicts. Institutionalism is based on the belief of the primacy of economic processes as compared to other factors that determine the nature of trade between countries. Structuralism is based on the view that the economic structures of the world have significant impact on the political life, economic reality, and social aspects of the dependent countries. 4). Dependency Theory and Andre Frank The dependency theory is largely attributed to Andre Gunder Frank. The theory affirms that resources flow from poor countries to richer countries thus promoting imbalances in the distribution of wealth across the nations. Fernando Henrique Cardoso argued that the theory was significant in understanding the disparities that exist naturally between the periphery positions and the center. Unlike Andre Gunder Frank, Enzo Faletto attempted to situate dependency theory within Marxist ideologies in order to explain the nature of the center and the periphery. 5). Emmanuel Wallerstein In his study of the “Modern World System,” Emmanuel Wallerstein argued that the world is divided into the core, semi-periphery, and periphery. He argued that the capitalism world has created unequal economic power between the three categories of the world by privileging the core. The periphery produces cheap labor and raw materials for the benefit of the core while the core supplies cheap finished products. Section C 1). Modernization Theory The history of modernization theory is traceable from the eighteenth century. Earlier thinkers such as Marquis de Condorcet had argued that societies could change their culture through the influence and impact of technological advancements (Kesselman, Joel, William, and Ervand 140). According to Rostow, the five major stages of modernization include traditional society, preconditions for take-off, take-off, drive to maturity, and the age of high mass consumption. The stage of traditional society is rigid, primitive, lacks technological features, and depends of subsistence agriculture or hunting and gathering. The age of preconditions for take-off features demand for raw material, increased mobility, shared interests, enhanced investment and changes in the social structure. The take-off stage features the beginning of manufacturing processes, an increased production in secondary goods, and increased investment in industries such as textile. The drive to maturity involves the diversification in industrial processes, shifting trends in manufacturing, enhanced investment initiatives in social infrastructure, and other aspects of secondary and tertiary development. The age of mass production features the economic dominance by industrial systems, increased consumption of high-value products, and a general increase in the disposable income of the members of the society. In terms of strength, modernization theory anchors on the natural instinct of progress, which defines human development. The logic of the theory finds support in the evolutionary processes of development. One of the weaknesses of the theory is that it does not address the challenge of cultural resistance and rigidity that attends to all forms of development. 2). Globalization Debate Hyperglobalists believe and support the process of globalization since they consider it to have positive impacts on human development. Hyperglobalists contend that globalization is necessary for the spreading of wealth within an international context and plays a key role in the reduction of inequalities. Globalization, according to this category of thinkers, is crucial in the establishment of new social, political, and economic order. They support the rise of global governance and the diminishing of nation states. Skeptics on the other hand view the positive effects of globalization as blown out of proportion. They argue that MNCs have contributed significantly to inequalities and serve the interests of the developed economies. Skeptics cite cases of increasing poverty as some of the adverse effects of globalization. Transformationalists argue that globalization is indeed taking place but they add that the precise effect is still indeterminate. According to them, the effect of globalization can, and has created both positive and negative results across the world. Their argument extends to the aspect of culture where they attribute the emergence of global culture as one of the key effects of globalization as understood within the aspect of social and economic development. According to transformationalists, the impacts of MNCs are multiple. These impacts have contributed positively and negatively to development. Works Cited Kesselman, Mark, Joel Krieger, William A. Joseph, and Ervand Abrahamian. Introduction to Politics of the Developing World. Boston, MA: Wadsworth, Cengage Learning, 2013. Read More