Developmentalism
Encyclopedia
Developmentalism is an economic theory
which states that the best way for Third World
countries to develop is through fostering a strong and varied internal market and to impose high tariffs on imported goods.
Developmentalism is a cross-disciplinary school of thought that gave way to an ideology of development as the key strategy towards economic prosperity. The school of thought was, in part, a reaction to the United States’ struggle to contain communism
and deal with national liberation movements throughout Asia and Africa. Developmentalism in the international economic context can be understood as consisting of a set of ideas which converge to place economic development at the center of political endeavors and institutions and also as a means through which to establish legitimacy in the political sphere. Adherents to the theory of developmentalism hold that the development of economic success in developing nations (particularly in Latin America and East Asia) grants legitimate leadership to political figures who would not otherwise have the benefit of a social consensus regarding who should lead and how they should do conduct themselves in the international sphere. Developmentalists believe that national autonomy for 'Third World
' countries can be achieved and maintained through the utilization of external resources by those countries in a capitalist system. To those professed ends, developmentalism was the paradigm used in an attempt to reverse the negative impact that the international economy was having on developing countries in the 1950s-60s, at the time during which Latin American countries had begun to implement import substitution
strategies. Using this theory, economic development is framed by modern-day Western criteria: economic success is gauged in terms of capitalistic notions of what it means for a country to become developed, autonomous, and legitimate.
The theory is based on the assumption that not only are there similar stages to development for all countries but also that there is a linear movement from one stage to another that goes from traditional or primitive to modern or industrialized.
writes in his article Requiem or New Agenda for Third World Studies? about how developmentalism gained its footing in international affairs in the years immediately following World War II, during which the United States assumed leadership of a world that had been devastated by the war, while the United States was all but physically unscathed. The end of Second World War catalyzed massive national liberation movements throughout Africa and Asia: these movements were a threat to the United States, in its fear that communism would take root in newly established independent nations. Therefore, these movements towards liberation became a top priority of the United States: developmentalism fit what the United States wanted very well, because its tenets create an environment of both national autonomy and widespread participation in the international economy. This participation would be in the capitalist form, so in promoting developmentalism, the United States was also promoting capitalism in newly independent nations. The school of developmentalist thought thrived on this sudden spike in support from the United States. Further, the school came to unite scholars from different social scientific disciplines under the umbrella of social ties and perceived common interest in the suppression of communism and gaining increasing influence on the politico-economic stage of the world.
The ensuing 'Golden Age
' of the developmentalist school began after 1945 and extended into the late 1960s. During the 1970s, however, the popularity and prevalence of developmentalism flickered and decreased.
and allow freer and more productive communication about these studies. Before its decline in the 1970s, scholars had been optimistic that developmentalism could break down the barriers between the disciplines of social sciences when discussing the complexities of development. This school of thought produced such works as Talcott Parsons
and Edward Shils
's Toward A General Theory of Action; Clifford Geertz
's Old Societies and New States; and Donald L.M. Blackmer and Max F. Millikan's The Emerging Nations.
These problems eventually marked the decline of school of developmentalist theory in the late 1970s. Some scholars (such as Samuel Huntington
and Jorge Dominguez
) contend that this rise and fall is a predictable phenomenon that typifies the introduction of any theoretical paradigm to the trial phase: a surge in popularity is likely with such theories, followed by various stages of pausing and surging in their prevalence in international economies and politics. It is also a possibility that the failures of developmentalism in the 1970s resulted from a realization that, after twenty-five years, 'Third World
' countries were still in the 'Third World,' despite efforts towards economic gain characterized by developmentalism. This view is elaborated on by Gabriel Almond
, who asserts that the increasing number of developing countries that had turned to authoritarian regimes negated the optimism with which developmentalism had been embraced. The US policies, which incorporated the tenets of developmentalism, were, in the 1970s, increasingly being seen as harmful to the Third World in imperialistic ways, and thus the school entered into crisis.
These policies shifted focus from reconstruction to development to poverty reduction, created a demand for global development intervention and shift from exploitation to development U.S. aid programme, and created norms and statistics for international donors.
Developmentalism is often accused by the left (though not only by the left) of having an ideology of neocolonialism at its root. Developmentalist strategies use a Eurocentric viewpoint of development, a viewpoint that often goes hand in hand with the implication that non-European societies are underdeveloped. As such, it gives way for the perpetuation of Western dominance over such underdeveloped nations, in a neocolonialist fashion. Developed nations such as the United States have been accused of seizing opportunities of disaster for their own benefit in what is known as "disaster capitalism.” Disaster capitalism, a term used by Naomi Klein
, describes the process in which situations of financial crisis are used in order to force an emergency opening of the free market in order to regain economic stability. This happened in the examples of Argentina, Chile, Bolivia, and post-Katrina New Orleans, among others. Developmentalist ideas also portray the Western ideal of development and democracy as an evolutionary course of history. In Eric Wolf
’s book, Europe and the People without History
, Wolf shows, through a long history of examples, that the Western world is only one of many visions of the world, and to view it as the pinnacle of a linear world evolutionary chain would be inaccurate. Developmentalist strategies often implicate that history is on a unilateral path of evolution towards development, and that cultural derivations have little implication in the final product.
From the right, critics say that developmentalist strategies deny the free market its autonomy. By creating a state controlled free market economy, it takes away the organic nature in which a market is meant to be created. They argue that developmentalist strategies have not generally worked in the past, leaving many countries, in fact, worse off than they were before they began state controlled development. This is due to a lack of freedom in the free market and its constrictive nature. In turn, it is argued, reactive totalitarian forces take hold of the government in response to Western intervention, such as Chavez
's Venezuela and Ortega
’s Nicaragua, creating even more complex problems for the Western vision of development.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
which states that the best way for Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...
countries to develop is through fostering a strong and varied internal market and to impose high tariffs on imported goods.
Developmentalism is a cross-disciplinary school of thought that gave way to an ideology of development as the key strategy towards economic prosperity. The school of thought was, in part, a reaction to the United States’ struggle to contain communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...
and deal with national liberation movements throughout Asia and Africa. Developmentalism in the international economic context can be understood as consisting of a set of ideas which converge to place economic development at the center of political endeavors and institutions and also as a means through which to establish legitimacy in the political sphere. Adherents to the theory of developmentalism hold that the development of economic success in developing nations (particularly in Latin America and East Asia) grants legitimate leadership to political figures who would not otherwise have the benefit of a social consensus regarding who should lead and how they should do conduct themselves in the international sphere. Developmentalists believe that national autonomy for 'Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...
' countries can be achieved and maintained through the utilization of external resources by those countries in a capitalist system. To those professed ends, developmentalism was the paradigm used in an attempt to reverse the negative impact that the international economy was having on developing countries in the 1950s-60s, at the time during which Latin American countries had begun to implement import substitution
Import substitution
Import substitution industrialization or "Import-substituting Industrialization" is a trade and economic policy that advocates replacing imports with domestic production. It is based on the premise that a country should attempt to reduce its foreign dependency through the local production of...
strategies. Using this theory, economic development is framed by modern-day Western criteria: economic success is gauged in terms of capitalistic notions of what it means for a country to become developed, autonomous, and legitimate.
The theory is based on the assumption that not only are there similar stages to development for all countries but also that there is a linear movement from one stage to another that goes from traditional or primitive to modern or industrialized.
Ideology and Basic Tenets of Developmentalism
There are four main ideas that are integrated behind the theory of developmentalism.- First, there is the notion that the performance of a nation's economy is the central source of legitimacy that a regime may claim. Rather than subscribing to the notion, for example, that the ability to make and enforce laws gives a state power, developmentalists argue that the sustenance of economic growthEconomic growthIn economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
and the subsequent promotion of citizens' welfare gives the general population incentive to support the regime in power, granting it both de facto and de jure legitimacy.
- The second tenet of developmentalism asserts that it is the role of regimes to use their governmental authority to spread out the risks associated with capitalistCapitalismCapitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
development, as well as to combine governmental and entrepreneurial wills in order to maximize the advancement of national interest.
- Thirdly, developmentalism asserts that state bureaucrats become separated from politicians, which allows for the independent and successful redevelopments of leadership structures and administrative and bureaucratic procedures (when such changes become necessary). This separation is key to balancing the needs of the state and the importance of forming and maintaining strong international economic ties. The government, then, has the autonomyAutonomyAutonomy is a concept found in moral, political and bioethical philosophy. Within these contexts, it is the capacity of a rational individual to make an informed, un-coerced decision...
to deal with certain issues on a national level, while helping state bureaucrats maintain the internationalism necessary to develop the nation's economy.
- The final aspect of developmentalism's ideology deals with the idea that it is necessary for nations to utilize the capitalist system as a means of advancement in the international economy. Privileged positions in capitalist systems arise from active responses to external affairs in order to obtain the external resources with which to gain larger amounts of economic autonomy. The resources gained from active participation in international economic affairs help propel countries out of being exploited by capitalism to positions from which they can exploit the international economy for its own national gain.
History of the School of Developmentalist Thought
Tony SmithTony Smith
Anthony David Hawthorn Smith is an Australian politician who has been a Liberal member of the Australian House of Representatives since 2001, representing the Division of Casey, Victoria. He was born in Melbourne Victoria, to parents Alan Smith, a Chemistry teacher, and Noel Smith, a medical...
writes in his article Requiem or New Agenda for Third World Studies? about how developmentalism gained its footing in international affairs in the years immediately following World War II, during which the United States assumed leadership of a world that had been devastated by the war, while the United States was all but physically unscathed. The end of Second World War catalyzed massive national liberation movements throughout Africa and Asia: these movements were a threat to the United States, in its fear that communism would take root in newly established independent nations. Therefore, these movements towards liberation became a top priority of the United States: developmentalism fit what the United States wanted very well, because its tenets create an environment of both national autonomy and widespread participation in the international economy. This participation would be in the capitalist form, so in promoting developmentalism, the United States was also promoting capitalism in newly independent nations. The school of developmentalist thought thrived on this sudden spike in support from the United States. Further, the school came to unite scholars from different social scientific disciplines under the umbrella of social ties and perceived common interest in the suppression of communism and gaining increasing influence on the politico-economic stage of the world.
The ensuing 'Golden Age
Golden Age
The term Golden Age comes from Greek mythology and legend and refers to the first in a sequence of four or five Ages of Man, in which the Golden Age is first, followed in sequence, by the Silver, Bronze, and Iron Ages, and then the present, a period of decline...
' of the developmentalist school began after 1945 and extended into the late 1960s. During the 1970s, however, the popularity and prevalence of developmentalism flickered and decreased.
Goals of the Developmentalist School
Developmentalism attempts to codify the ways in which development is discussed on an international level. Through developmentalism, it is thought by its advocates that discussions about the economic development of the 'Third World' can be redesigned in such a way that everyone will use the same vocabulary to discuss the various phenomena of development. This way, societies can be discussed comparatively without the impediments associated with placing developmental disparities across nations in completely different categories of speech and thought. This increased uniformity of language would increase understanding and appreciation for the studies about development from different fields in the social sciencesSocial sciences
Social science is the field of study concerned with society. "Social science" is commonly used as an umbrella term to refer to a plurality of fields outside of the natural sciences usually exclusive of the administrative or managerial sciences...
and allow freer and more productive communication about these studies. Before its decline in the 1970s, scholars had been optimistic that developmentalism could break down the barriers between the disciplines of social sciences when discussing the complexities of development. This school of thought produced such works as Talcott Parsons
Talcott Parsons
Talcott Parsons was an American sociologist who served on the faculty of Harvard University from 1927 to 1973....
and Edward Shils
Edward Shils
Edward Shils was a Distinguished Service Professor in the Committee on Social Thought and in Sociology at the University of Chicago and reputedly an influential sociologist. He was known for his research on the role of intellectuals and their relations to power and public policy...
's Toward A General Theory of Action; Clifford Geertz
Clifford Geertz
Clifford James Geertz was an American anthropologist who is remembered mostly for his strong support for and influence on the practice of symbolic anthropology, and who was considered "for three decades...the single most influential cultural anthropologist in the United States." He served until...
's Old Societies and New States; and Donald L.M. Blackmer and Max F. Millikan's The Emerging Nations.
The Decline of the School
The model of developmentalism proved to have two major reasons for decline within the school:- The model created a system that was too formal and structured, providing an ethnocentric and unilateral method for changing the third world.
- In this, developmentalists created plans for development that were mostly inflexible, owning to the fact that they relied heavily on the Western model of development as their primus modus. Western development, supposedly, held the keys to unlocking the door to the Global South’s development, and as such, could shed light on the changes that were occurring there. In doing so, however, the histories of the South were reduced into terms that could be applied to a model of development. This resulted in extremely rigid models in which labeled deviations from the conventional “traditional” (undeveloped) or “modern” (developed) society as dysfunctional, and to draw clear empirical distinctions between traditional and modern societies
- A lack of cohesion within the models and the academic community itself.
- Developmentalist models attempted to create a universal system of development, and as such, resulted in methods that were too loose and incoherent to provide an accurate picture of the circumstances under which development could work in the Third World. Because of the vast amounts of difference in the cultures of the Global South, creating generalizations in which one theory of development was applicable to all settings became extremely difficult. Additionally, disagreement within the academic community itself and the lack of an obvious leader did not allow for internal cooperation. Many developmentalist scholars became disenchanted with the way in which the United States foreign policy was being implemented, especially during the Vietnam and the Alliance for ProgressAlliance for ProgressThe Alliance for Progress initiated by U.S. President John F. Kennedy in 1961 aimed to establish economic cooperation between the U.S. and South America.-Origin and goals:...
. Intentions, as well, were not always non-partisan; many scholars had intended their writing to be policy-relevant in the spread of capitalism and an elite brand of democracy in the South, as well as in the struggle to block the spread of communismCommunismCommunism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...
.
- Developmentalist models attempted to create a universal system of development, and as such, resulted in methods that were too loose and incoherent to provide an accurate picture of the circumstances under which development could work in the Third World. Because of the vast amounts of difference in the cultures of the Global South, creating generalizations in which one theory of development was applicable to all settings became extremely difficult. Additionally, disagreement within the academic community itself and the lack of an obvious leader did not allow for internal cooperation. Many developmentalist scholars became disenchanted with the way in which the United States foreign policy was being implemented, especially during the Vietnam and the Alliance for Progress
These problems eventually marked the decline of school of developmentalist theory in the late 1970s. Some scholars (such as Samuel Huntington
Samuel P. Huntington
Samuel Phillips Huntington was an influential American political scientist who wrote highly-regarded books in a half-dozen sub-fields of political science, starting in 1957...
and Jorge Dominguez
Jorge Domínguez
Jorge "Potro" Carlos Alberto Domínguez is a former Argentinian football striker.Domínguez started his career in 1978 with Boca Juniors where he played in one game against Unión de Santa Fe...
) contend that this rise and fall is a predictable phenomenon that typifies the introduction of any theoretical paradigm to the trial phase: a surge in popularity is likely with such theories, followed by various stages of pausing and surging in their prevalence in international economies and politics. It is also a possibility that the failures of developmentalism in the 1970s resulted from a realization that, after twenty-five years, 'Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...
' countries were still in the 'Third World,' despite efforts towards economic gain characterized by developmentalism. This view is elaborated on by Gabriel Almond
Gabriel Almond
Gabriel A. Almond was an American political scientist best known for his pioneering work on comparative politics, political development, and political culture.-Biography:...
, who asserts that the increasing number of developing countries that had turned to authoritarian regimes negated the optimism with which developmentalism had been embraced. The US policies, which incorporated the tenets of developmentalism, were, in the 1970s, increasingly being seen as harmful to the Third World in imperialistic ways, and thus the school entered into crisis.
Examples of Developmentalist Policy
- Bretton-WoodsUnited Nations Monetary and Financial ConferenceThe United Nations Monetary and Financial Conference, commonly known as the Bretton Woods conference, was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after...
(1944) - International Development AssociationInternational Development AssociationThe International Development Association , is the part of the World Bank that helps the world’s poorest countries. It complements the World Bank's other lending arm — the International Bank for Reconstruction and Development — which serves middle-income countries with capital investment and...
(1960) - Truman’s Point Four (1949)
- Development Assistance CommitteeDevelopment Assistance CommitteeThe Organisation for Economic Co-operation and Development's Development Assistance Committee is a forum for selected OECD member states to discuss issues surrounding aid, development and poverty reduction in developing countries...
(DAC) of OECD (1961) - SUNFED (1958)
- UNDP (1965)
These policies shifted focus from reconstruction to development to poverty reduction, created a demand for global development intervention and shift from exploitation to development U.S. aid programme, and created norms and statistics for international donors.
Criticisms
The implementation of developmentalist ideologies has been critiqued in multiple lights, both by the right and by the left.Developmentalism is often accused by the left (though not only by the left) of having an ideology of neocolonialism at its root. Developmentalist strategies use a Eurocentric viewpoint of development, a viewpoint that often goes hand in hand with the implication that non-European societies are underdeveloped. As such, it gives way for the perpetuation of Western dominance over such underdeveloped nations, in a neocolonialist fashion. Developed nations such as the United States have been accused of seizing opportunities of disaster for their own benefit in what is known as "disaster capitalism.” Disaster capitalism, a term used by Naomi Klein
Naomi Klein
Naomi Klein is a Canadian author and social activist known for her political analyses and criticism of corporate globalization.-Family:...
, describes the process in which situations of financial crisis are used in order to force an emergency opening of the free market in order to regain economic stability. This happened in the examples of Argentina, Chile, Bolivia, and post-Katrina New Orleans, among others. Developmentalist ideas also portray the Western ideal of development and democracy as an evolutionary course of history. In Eric Wolf
Eric Wolf
Eric Robert Wolf was an anthropologist, best known for his studies of peasants, Latin America, and his advocacy of Marxian perspectives within anthropology.-Early life:...
’s book, Europe and the People without History
Europe and the People Without History
Europe and the People Without History is a book by anthropologist Eric Wolf. First published in 1982, it focuses on the expansion of European societies in the Modern Era. It argues that this expansion affected both the societies that Europeans encountered in their expansion and European societies...
, Wolf shows, through a long history of examples, that the Western world is only one of many visions of the world, and to view it as the pinnacle of a linear world evolutionary chain would be inaccurate. Developmentalist strategies often implicate that history is on a unilateral path of evolution towards development, and that cultural derivations have little implication in the final product.
From the right, critics say that developmentalist strategies deny the free market its autonomy. By creating a state controlled free market economy, it takes away the organic nature in which a market is meant to be created. They argue that developmentalist strategies have not generally worked in the past, leaving many countries, in fact, worse off than they were before they began state controlled development. This is due to a lack of freedom in the free market and its constrictive nature. In turn, it is argued, reactive totalitarian forces take hold of the government in response to Western intervention, such as Chavez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
's Venezuela and Ortega
Ortega
Ortega is a Spanish surname. In the 9th century a Saint Raymundo Ortega of Bejar was recorded to be in Salamanca, Spain. A baptismal record in 1570 records a de Ortega "from the village of Ortega". There were several villages of this name in Spain...
’s Nicaragua, creating even more complex problems for the Western vision of development.