The Growth of Malaysia into a Developing Nation - Case Study Example

Developing country –Malaysia Name Here Name of Institution City, State Date Introduction Development remains a concept that continues to draw a distinction between various world economies. Today, many nations fall under the category of developed, developing and underdeveloped. The issue of development thus remains a pivot point in the discussion of developmental efforts nations undertake, as well as the results of such efforts. For decades, nations have been striving to achieve developmental milestones and assessing such, efforts have been of significant concerns among scholars, leaders and citizens, as well. Most important, the question of development gives rise to several theories that assess how nations achieve development. Development, which describes how nations achieve rational utilization of resources and systems, continues to be an overarching theme when it comes to assessing growth and prosperity among nations. Consequently, the issue of development has been of phenomenal interest to many people with regard to how nations strive to make rational use of their systems and resources. The driving force of development has been the congruent need of creating social needs that befit the needs of citizens of a given nation. Today, world population shape how nations exploit resources using technology as paying attention to the needs and characteristics of the nations are critical. However, each population has varying needs, which determine the trajectory of the development efforts as Liu, Huang, and McLean (1997, p.62) argue. The tenets of development vary considerably given the many perspectives of development. This paper presents an overview of two development theories—modernization theory and the dependency theory. In addition, it presents the underlying thrust behind the theories and point key milestones in each theory, which serves as evaluation criteria for development. Most important, the paper evaluates Malaysia development path noting why the country best fits the label of a developing country. With emphasis on the tenets of modernization and dependency theory, this assess various perspectives of development to underscore why Malaysia is a developing country. Overview of modernization theory Modern nations and non-modern states exist on the opposite side of the continuum. So (1990, p. 34) cites Levy argument, which depicts the development as a social solvent that allows modernization to have inroads into the fabric of society. The modernization theory is one of the tools that explain that process of development, which could occur in various perspectives. For instance, Liu, Hoang, & McLean (1997, p. 14) depict modernization as economic reformation such as what China experienced during the 1978 where the economy became the centre of its culture. The underlying argument in the modernization theory is that non-modernized nations transition from tradition economies to modern forms because of social changes. Simply put, the modernization attempts to describe and trace the movement of nations towards modern society. However, the process of modernization could occur through a multiplicity of perspectives. The principle path for modernization, according to the modernization theory, is the economic development, a trait that continues to different developed and developing economies. Rostow (1960, p. 36) believes that modernization theory is a suitable framework for differencing between nations with economic development from those without. As one of the scholars behind the modernization school of through, Rastow (1960, p. 36) situates the element of economic development as the main factor behind the modernization theory. Various literature identify the traditional paradigms as the reason many nations remain underdeveloped. Because economic development characterise the process of modernization, lack of development is synonymous with the proliferation of tradition approach to work. For instance, Andersen and Francis (2008, p.252) posit that process of modernization not only eliminates traditional culture, practices and institutions, but also introduce values and attitude that emphasize hard work and enterprise. The process of modernization, which is irreversible, pushes nations that are ready to embrace modern ways of achieving development toward modernity. The modernization process is irreversible because it is not only spontaneous, but also inherent in any single society (Zafarullah, & Shafiqul, 2012 p. 57). This trait of modernization explains why different countries have different patterns of modernization. As will be seen in the case of Malaysia, the process of modernization is complex and stems from the interaction of many factors, both within and external to the system. A fundamental characteristic of modernization is the growth of capitalism and industrialization. A discussion on the growth of modernity would be incomplete without the mention of capitalism and industrialization. Because of modernity, the world has become a global entity with trade and business becoming some of the forces behind economic changes and empowerment. The main thrust behind the growth of business is capitalism, which has drawn the interest of many business players into the global arena. Today, the traditional paradigm of business is waning while global forces are making inroads in business. Whether it is Africa, America, Europe or Asia, the presence of global firms has become a mark of development and modernity. Consequently, capitalist views are behind the growth of transnational companies across the globe. Industrialization is another trait that describes modernity. As seen previously, modernity ushers a change that reduces the effect of tradition means of production by substituting traditional practices with efficient and industry practices. According to Cai (2012, p. 5), industrialization defines the core of capitalistic modernization, that is the backbone of development across the globe. When evaluating development process of any given economy, the issue of industrialization would play an important factor considering that adoption of industrial practices and means of production is a robust tool for realizing achievement. The growth of modernity in counties such as Britain and other modern economies such as Germany was possible because of industrial prowess and determination put in place. This is the reason Cai (2012, p.5) believes that Britain rose into a modern economy earlier than other nations because the industrial wave first started in Britain. Today, advances in industrialization and capitalism drive the continued efforts of many nations to achieve development while interacting with other nations in the global workspace. The modernization theory describes the process of modernity as consistent with changes through a number of phases. While modernization is spontaneous and complex, development efforts create changes that map to some definite steps. In his work, Rostow traces the growth of nations such as Russia though several steps or phases with the beginning being overcoming the traditional culture (cited in Engerman, 2003, p.282). The phases of modernity are five according to Rostow (1960, p. 6) who believes that a modern state must start with a traditional society and progress the last phase where the community has a high level of consumption (Rostow, 1990, p. 10). The five stages of growth—traditional society, preconditions of take-of, take-off, drive to maturity and age of high mass consumption remain central to evaluating the modernization process across the globe and for countries such as Malaysia. Overview of Dependency Theory The dependency theory is a challenge to structural theories and the notion that underdevelopment is a direct result of wrong sociocultural orientation. A challenge to structural theories such as the modernization theory, the dependency theory posits underdevelopment continues to impede the some economies because of some nations contribute to external forces that deprive countries of development. The development of the dependency was possible because of the works of various social scientist such as Celso Furtado, Samir Amin and Immanuel Wallerstein among others (Barbour & Pavlich, 2009, p.102). Because of the underlying argument of the dependency theory, the theory offers a critique to the fundamental tenet of the modernization theory. One of the essential argument of the dependency theory is that underdevelopment could never be understood with the isolation of the development process. In other words, the development of some few countries brings about the underdevelopment of countries that offer resources and systems to support the development efforts of the few. In a different direction, the process of development is persistent and continuous, motivating the growth of underdevelopment, as well. Pruthi (2005, p. 133) believes that the dependency theory changes the trajectory of how nations view the issue of development. Rather than seeing underdevelopment because of traditional approaches and culture, the dependency theory underscore underdevelopment to be a consequence of impoverishment where developing nations gain from some nations that reverse their direction towards underdevelopment. The understanding of the dependency theory requires a careful consideration of the components that make up a dependency system. A dependency system is where once country develops at the expense of another country that fuels the growth of the former. The dependency theory refer to the developing country as the core, while the under developing country as the periphery. The relationship between the two components is responsible for the developmental processes whether development or under development. The main reason behind development is the forces of capitalistic, which enhances the exploitation of resources from one nations to another. The dependency theory views the countries at the core as those who propagate exploitation to achieve economic growth. While they countries at the core benefit from other countries, the nations at the peripheral continue to underdeveloped because capitalistic means of doing business exploit them. The chain of dependency runs deep than what most people could envision. In most countries that were once underdeveloped, such as Brazil, capitalist exploited peasants who worked in villages by paying less for various produce. The intermediaries and brokers however, sold various produce to multination’s who fetched higher prices than the brokers did. At the end of the chain, the multinationals end up taking away the surplus generated from the trade. This simple representation of demonstrate how some countries develop at the expense of other nations (Willis, 2013, p. 80). With the premise that underdevelopment is a result of exploitation, the dependency theory can help evaluate development of Malaysia and other nations. The central element of the dependency theory is how it addresses the issue of development. Because the countries at the core exploit countries at the periphery, the dependency theory provide that some conditions are necessary for periphery countries to develop. For a country to develop, it must have the weakest connection to the core, which exploits periphery nations. The weak link reduces the effect of dependence and eliminates chances of exploitation where one nations develops using the resources and systems of another country. In addition, there is a country is likely to develop when it subordinates the core. Countries such as Brazil in Latin America have achieved considerable industrialization because of its subordination to countries at the core (Font, 2010, p. 4). Hinged on the big coffee economy, most industries subordinated the large firms that served as coffee capital promoting growth of industrialization. Discussion Of Malaysia As A Developing Country There is no doubt Malaysia is a developing country given the country’s economic development and industrialization track over the last decades. Malaysia, which is Islamic-dominated, has witnessed in the past significant changes in various aspects of society. Today, Malaysia boost of remarkable achievement in science, technology and innovation, which has put the country on the list of some of the developing states in the world. The improvement of life through education, innovation and industrialization is visible through the lens of modernity theories. Indeed, the modernization theory and the dependency theory explain why Malaysia is a developed county within South East Asia region. The growth of Malaysia to a developing nation has been consistent with the modernization theory. According to the modernization theory, the prevalence of traditional institutions and practices are responsible for underdevelopment. On the contrary, embracing modern practices such as education are essential in introducing modernity. For decades, the Malaysian government paid little to create a competitive workforce with the right mix of skills. However, the introduction of the New Economic Model emphasized on using education to create a competitive workforce in the region. The government of Malaysia thus focussed on using education to improve the knowledge and skills of its people. In the South Asian region, Malaysia has a small number of skilled workers as compared to other nations such as Singapore. This meant that Malaysia could not achieve significant breakthrough in economic wellness. To challenge this trend, the New Economic Model focussed on increasing the responsiveness of employees to market demands. The introduction of tertiary education institutions accelerated the growth of development opportunities in Malaysia. In a country where there were limited opportunities in tertiary education, a new focus on tertiary education enhanced the skills and knowledge of employees increasing the gross domestic product. With better education available through colleges and university, Malaysia compete favourable with other nations such as Taiwan and Korea. With regard to the modernization theory, the introduction of education modernized how Malaysia workforce tackle various challenges in their place of work. Considerably, a high number of Malaysians with tertiary education have transformed the nations into a country that gleans from modern practices, and attitudes that could be missing without investment on education. The growth of regional education in Malaysia yield a new perspective with respect to the dependency theory. The dependency theory offers an explanation development is possible when core countries have the weakest link with core countries. In many aspects, Malaysia realized the new to develop its system such education and workforce rather than depending on other countries within the South East Asia block. For decades, countries such as China and Taiwan imported cheap labour from Malaysia (Rudnick, 2009, p. 74). This meant that Malaysia was losing significant opportunities to these countries that were making a fortune while taking the surplus back to their countries. However, the isolation of Malaysia from these countries at the core paved way for new thinking concerning development. With the link being at the weakest point, Malaysia was able to achieve sustainable development that improved its prospects in education, a catalyst of economic developing. This development pattern explains why Malaysia has risen to a developing nation exploiting its resources to build education institutions rather than depending on external countries that would otherwise stifle development. The rapid investment in infrastructure in Malaysia in areas such as farming has transformed the county into a developing nation, congruent with the modernization theory. An underlying element of modernization theory is that adoption of modern mean of production is synonymous with development. Many countries within the South East Asia region grow rice in huge plantation. However, Malaysia has been for years relied on small-scale farmers to grow rice (Johnson, 2000, p.193). The introduction of agriculture infrastructure in 1978 increase the production of rice tremendously. The irrigation did not only allow double cropping, but it also enabled the adoption of the green revolution that transformed farming in Malaysia. As an important tenet of changes and catalyst of development, adoption of modern approaches and decline of traditional approaches, which define modernization theory, were vital in making Malaysia emerge as a developing nation. Today, Malaysia has Muda Irrigation scheme with six areas with the highest production of rice, which has contributed to economic growth in the country. Land development processes have also improved Malaysia’s growth towards development in South East Asia. Modernity reflects a waning of traditional approaches in areas such as health where nations embrace new approaches to improving the health and wellness of its people (Meade, 1976, p. 428). Though cultural interaction and environmental changes, Malaysia succeed in changing the standard of living by emphasizing on environmental development to overcome the challenge of diseases. This unique configuration supports the argument that modernization is critical in development of a country rationalizing why Malaysia is now a developing nation. Conclusion Indeed, the growth of Malaysia into a developing nation illustrate the tenets of modernization and dependency theory because each of these theories could explain why Malaysia has become a developing country. In both theories, development represent wellbeing of the nation as well as government ability to respond to the needs of its citizen. The central component of modernization theory is development, which serves as a social solvent. In this theory, development leads to growth in social and economic spheres. This theory posits that countries embrace modernity and evolve from underdeveloped to developing countries. A fundamental argument of this theory is that a move from traditional approaches and institutions brings about modernity. In addition, proliferation of capitalism and industrialization is congruent with economic development. With the lens of the modernization, it is worth noting that Malysia has for decades evolved into a modern state. Though the new economic model and industrialization plans, Malaysia has become a developing nation in East Asia. In addition, rapid acceleration in education and technology has produced a competent citizenry with mass consumption, an element that dovetails with the stages of modernization. The increasing changes in traditional practices in areas such as farming and production are some of the changes that mark Malaysia’s transition to a developing nation. The dependency theory critics the modernity theory, but it nonetheless offer essential insight on the development path of Malaysia. At the core of this theory is the argument that development is not possible without underdevelopment. The dependency theory argue that some nations are underdeveloped because some nations, at the core, stifle their development. The theory also argues development is only possible without nations at the periphery subordinating nations at the core. In addition, creating self-reliance is also vital for development to occur in nations at the periphery. Malaysia for decades provide cheap labour for China and Taiwan, but radical changes in education created a skill work forced and improved development opportunities. Creating a weak link made Malaysia spring into a phase of rapid development. Moreover, the isolation of Malaysia from countries that could exploit its resource served as an active ingredient for development earning the country a developing nation status. References Andersen, M. L., & Taylor, H. F. (2008). Sociology: understanding a diverse society. Belmont, CA, Wadsworth/Thomson Learning. Barbour, C. & Pavlich, G. (2009). After Sovereignty: On the Question of Political Beginnings. New York, Taylor, & Francis. Cai, T. (2012). Chinese perspectives on globalization and autonomy. Leiden, Brill. Engerman, D. C. (2003). Modernization from the other shore: American intellectuals and the romance of Russian development. Cambridge, Mass, Harvard University Press. Font, A. M. (2010). Coffee and transformation in São Paulo, Brazil. Lanham, Md.: Lexington Books. Johnson, C.L. (2000). Government Intervention in the Muda Irrigation Scheme, Malaysia: ' Actors', Expectations and Outcomes. The Geographical Journal, Vol. 166, No. 3. Pp.192-214 Liu, F., Huang, S. & McLean, F. (1990). Social change and development: modernization, dependency, and world-systems theories. Newbury Park, Calif, Sage Publications. Liu, F., Huang, S. & McLean, G. F. (1997). Philosophy and modernization in China. Washington, DC, Council for Research in Values and Philosophy. Washington: CRVP. Mead, G. H. (1967). Mind, self, and society: From the standpoint of social behaviourist. Chicago: University of Chicago Press. Pruthi, R. (2005). Comparative politics: 'a critique'. New Delhi, Sarup & Sons. Rostow, W. W. (1990). The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge, Cambridge University Press. Rudnick., A. (2009). Working gendered boundaries: temporary migration experiences of Bangladeshi women in the Malaysian export industry from a multi-sited perspective. Vossiuspers UvA - Amsterdam University Press. So, A. Y. (1990). Social change and development: modernization, dependency, and world- systems theories. Newbury Park, Calif, Sage Publications. Willis, K. (2013).Theories and Practices of Development. New York, Routledge. Zafarullah, H. & Haque, S. A. (2012). Managing Development in a Globalized World: Concepts, Processes, Institutions. New York, CRC Press. Read More

For instance, Liu, Hoang, & McLean (1997, p. 14) depict modernization as economic reformation such as what China experienced during the 1978 where the economy became the centre of its culture. The underlying argument in the modernization theory is that non-modernized nations transition from tradition economies to modern forms because of social changes. Simply put, the modernization attempts to describe and trace the movement of nations towards modern society. However, the process of modernization could occur through a multiplicity of perspectives.

The principle path for modernization, according to the modernization theory, is the economic development, a trait that continues to different developed and developing economies. Rostow (1960, p. 36) believes that modernization theory is a suitable framework for differencing between nations with economic development from those without. As one of the scholars behind the modernization school of through, Rastow (1960, p. 36) situates the element of economic development as the main factor behind the modernization theory.

Various literature identify the traditional paradigms as the reason many nations remain underdeveloped. Because economic development characterise the process of modernization, lack of development is synonymous with the proliferation of tradition approach to work. For instance, Andersen and Francis (2008, p.252) posit that process of modernization not only eliminates traditional culture, practices and institutions, but also introduce values and attitude that emphasize hard work and enterprise.

The process of modernization, which is irreversible, pushes nations that are ready to embrace modern ways of achieving development toward modernity. The modernization process is irreversible because it is not only spontaneous, but also inherent in any single society (Zafarullah, & Shafiqul, 2012 p. 57). This trait of modernization explains why different countries have different patterns of modernization. As will be seen in the case of Malaysia, the process of modernization is complex and stems from the interaction of many factors, both within and external to the system.

A fundamental characteristic of modernization is the growth of capitalism and industrialization. A discussion on the growth of modernity would be incomplete without the mention of capitalism and industrialization. Because of modernity, the world has become a global entity with trade and business becoming some of the forces behind economic changes and empowerment. The main thrust behind the growth of business is capitalism, which has drawn the interest of many business players into the global arena.

Today, the traditional paradigm of business is waning while global forces are making inroads in business. Whether it is Africa, America, Europe or Asia, the presence of global firms has become a mark of development and modernity. Consequently, capitalist views are behind the growth of transnational companies across the globe. Industrialization is another trait that describes modernity. As seen previously, modernity ushers a change that reduces the effect of tradition means of production by substituting traditional practices with efficient and industry practices.

According to Cai (2012, p. 5), industrialization defines the core of capitalistic modernization, that is the backbone of development across the globe. When evaluating development process of any given economy, the issue of industrialization would play an important factor considering that adoption of industrial practices and means of production is a robust tool for realizing achievement. The growth of modernity in counties such as Britain and other modern economies such as Germany was possible because of industrial prowess and determination put in place.

This is the reason Cai (2012, p.5) believes that Britain rose into a modern economy earlier than other nations because the industrial wave first started in Britain. Today, advances in industrialization and capitalism drive the continued efforts of many nations to achieve development while interacting with other nations in the global workspace.

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