Underdevelopment
Encyclopedia
Underdevelopment is a term often used to refer to economic underdevelopment, symptoms of which include lack of access to job opportunities, health care, drinkable water, food, education and housing. At the 1948 Conference of FAO
the term was already current.
They have an unequal trade balance which results from their dependence upon primary products
(usually only a handful) for their export receipts. These commodities are often (a) in limited demand in the industrialized countries (for example: tea, coffee, sugar, cocoa, bananas); (b) vulnerable to replacement by synthetic substitutes (jute, cotton, etc.); or (c) are experiencing shrinking demand with the evolution
of new technologies that require smaller quantities of raw materials (as is the case with many metals). Prices cannot be raised as this simply hastens the use of replacement synthetics or alloys, nor can production be expanded as this rapidly depresses prices. Consequently, the primary commodities upon which most of the developing countries depend are subject to considerable short-term price fluctuation, rendering the foreign exchange receipts of the developing nations unstable and vulnerable. Development thus remains elusive.
stages and that today’s underdeveloped countries are still in a stage of history through which the now developed countries passed long ago. The countries that are now fully developed have never been underdeveloped in the first place, though they might have been undeveloped.
Africa
is the second-largest continent on the planet (after Asia
) in both land area and population—with more than 800 million people living in fifty-four countries. With a total land area of more than 30221532 km² (11,668,598.7 sq mi), Africa accounts for 20% of the land on the planet; its population accounts for one-seventh of the population of earth. It is also the most underdeveloped continent.
2.Afghanistan
Historically, there has been a deficiency of information and dependable statistics about Afghanistan's economy
. The 1979 Soviet invasion and consequent civil war
destroyed much of the country's limited transportation infrastructure and disrupted normal patterns of economic activity. Gross domestic product
had fallen significantly because of loss of labor and capital and disruption of trade and transport. Continuing internal conflict disadvantaged both domestic efforts at reconstruction as well as international aid efforts. The country today however is beginning to make some progress.
3.South Africa
It is argued that South Africa’s … dualist qualities of a 1st & 2nd economy. The 1st (wealth producing sector) being one that is integrated in the global economy through modern industrialization, mining, agricultural & financial services, and the 2nd a structural manifestation of poverty, underdevelopment & marginalization. With indicators such as GDP/capita at PPP of $11 240 in 2001, placing it as one the 50th wealthiest countries in the world , and on the other hand social indicators that rank it 111th in terms of HDI for the same year.
Some of the causality of the underdevelopment is attributed to the institutionalized apartheid practices in South African politics, society and economics. The reforms that were introduced in 1994, have furthered the increase of inequality and uneven wealth distribution in the nation. As “Hoogeveen andO¨ zler (2005: 15) conclude that ‘Growth has not been pro-poor in South Africa as a whole, and in the instances when poverty declined for certain subgroups, the distributional shifts were still not pro-poor’.” Through the notion of adverse inclusion versus social exclusion du Toit draws attention to the fact that the present dynamics of the nation are not simply a result of being left out of mainstream economy, rather from the terms under which individuals are incorporated, . The individuals who find themselves incorporated are often not those that make up the majority of the population that lives in considerably unfavorable conditions.
Modernization theory
is a socio-economic theory
, also known as the Development theory
. This highlights the positive role played by the developed world in modernizing
and facilitating sustainable development in underdeveloped nations. It is often contrasted with Dependency theory
.
The theory of modernization consists of three parts:
2.Dependency Theory
Dependency theory
is the body of theories by various intellectuals, both from the Third World
and the First World
, that suggest that the wealthy nations of the world need a peripheral group of poorer states in order to remain wealthy. Dependency theory states that the poverty of the countries in the periphery is not because they are not integrated into the world system, but because of how they are integrated into the system.
These poor nations provide natural resources
, cheap labor, a destination for obsolete technology, and markets to the wealthy nations, without which they could not have the standard of living they enjoy. First world nations actively, but not necessarily consciously, perpetuate a state of dependency through various policies and initiatives. This state of dependency is multifaceted, involving economics, media
control, politics
, banking and finance
, education
, sport
and all aspects of human resource development. Any attempt by the dependent nations to resist the influences of dependency could result in economic sanctions and/or military invasion and control. This is rare, however, and dependency is enforced far more by the wealthy nations setting the rules of international trade and commerce.
Dependency theory first emerged in the 1950s, advocated by Raul Prebisch
whose research found that the wealth of poor nations tended to decrease when the wealth of rich nations increased. The theory quickly divided into diverse schools. Some, most notably Andre Gunder Frank
, adapted it to Marxism
. "Standard" dependency theory differs sharply from Marxism, however, arguing against internationalism and any hope of progress in less developed nations towards industrialization and a liberating revolution. Former Brazilian President Fernando Henrique Cardoso
wrote extensively on dependency theory while in political exile. The American sociologist Immanuel Wallerstein
refined the Marxist aspect of the theory, and called it the "world system."
According to Brazilian social scientist, Theotonio Dos Santos, dependence means a situation in which certain countries economies’ are conditioned by the development & expansion of another to which the former is subject. He goes on to further clarify that the interdependence of two or more economies, and consequently world trade, assumes the form of dependence when dominant countries can create dependency only as a reflection of that expansion, which can have a negative effect on the subordinate’s immediate economy.
Fão
Fão is a town in Esposende Municipality in Portugal....
the term was already current.
Overview
Underdevelopment takes place when resources are not used to their full socio-economic potential, with the result that local or regional development is slower in most cases than it should be. Furthermore, it results from the complex interplay of internal and external factors that allow less developed countries only a lop-sided development progression. Underdeveloped nations are characterized by a wide disparity between their rich and poor populations, and an unhealthy balance of trade.Extended overview
The economic and social development of many developing countries has not been even.They have an unequal trade balance which results from their dependence upon primary products
(usually only a handful) for their export receipts. These commodities are often (a) in limited demand in the industrialized countries (for example: tea, coffee, sugar, cocoa, bananas); (b) vulnerable to replacement by synthetic substitutes (jute, cotton, etc.); or (c) are experiencing shrinking demand with the evolution
Evolution
Evolution is any change across successive generations in the heritable characteristics of biological populations. Evolutionary processes give rise to diversity at every level of biological organisation, including species, individual organisms and molecules such as DNA and proteins.Life on Earth...
of new technologies that require smaller quantities of raw materials (as is the case with many metals). Prices cannot be raised as this simply hastens the use of replacement synthetics or alloys, nor can production be expanded as this rapidly depresses prices. Consequently, the primary commodities upon which most of the developing countries depend are subject to considerable short-term price fluctuation, rendering the foreign exchange receipts of the developing nations unstable and vulnerable. Development thus remains elusive.
History
The world consists of a group of rich nations and a large number of poor nations. It is usually held that economic development takes place in a series of capitalistCapitalism
Capitalism 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...
stages and that today’s underdeveloped countries are still in a stage of history through which the now developed countries passed long ago. The countries that are now fully developed have never been underdeveloped in the first place, though they might have been undeveloped.
Examples of Underdeveloped Countries and Regions
1.AfricaAfrica
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
is the second-largest continent on the planet (after Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
) in both land area and population—with more than 800 million people living in fifty-four countries. With a total land area of more than 30221532 km² (11,668,598.7 sq mi), Africa accounts for 20% of the land on the planet; its population accounts for one-seventh of the population of earth. It is also the most underdeveloped continent.
2.Afghanistan
Historically, there has been a deficiency of information and dependable statistics about Afghanistan's economy
Economy of Afghanistan
The economy of Afghanistan has improved significantly since 2002 due to the infusion of multi-billion dollars in international assistance and investments, as well as remittances from Afghan expats. It is also due to dramatic improvements in agricultural production and the end of a four-year drought...
. The 1979 Soviet invasion and consequent civil war
Civil war
A civil war is a war between organized groups within the same nation state or republic, or, less commonly, between two countries created from a formerly-united nation state....
destroyed much of the country's limited transportation infrastructure and disrupted normal patterns of economic activity. Gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
had fallen significantly because of loss of labor and capital and disruption of trade and transport. Continuing internal conflict disadvantaged both domestic efforts at reconstruction as well as international aid efforts. The country today however is beginning to make some progress.
3.South Africa
It is argued that South Africa’s … dualist qualities of a 1st & 2nd economy. The 1st (wealth producing sector) being one that is integrated in the global economy through modern industrialization, mining, agricultural & financial services, and the 2nd a structural manifestation of poverty, underdevelopment & marginalization. With indicators such as GDP/capita at PPP of $11 240 in 2001, placing it as one the 50th wealthiest countries in the world , and on the other hand social indicators that rank it 111th in terms of HDI for the same year.
Some of the causality of the underdevelopment is attributed to the institutionalized apartheid practices in South African politics, society and economics. The reforms that were introduced in 1994, have furthered the increase of inequality and uneven wealth distribution in the nation. As “Hoogeveen andO¨ zler (2005: 15) conclude that ‘Growth has not been pro-poor in South Africa as a whole, and in the instances when poverty declined for certain subgroups, the distributional shifts were still not pro-poor’.” Through the notion of adverse inclusion versus social exclusion du Toit draws attention to the fact that the present dynamics of the nation are not simply a result of being left out of mainstream economy, rather from the terms under which individuals are incorporated, . The individuals who find themselves incorporated are often not those that make up the majority of the population that lives in considerably unfavorable conditions.
THEORIES
1.Modernization TheoryModernization theory
Modernization theory
Modernization theory is a theory used to explain the process of modernization within societies. The theory looks at the internal factors of a country while assuming that, with assistance, "traditional" countries can be brought to development in the same manner more developed countries have...
is a socio-economic theory
Socio-economic theory
Socio-economic theory usually refers to a combination of:* economic theory* social theory...
, also known as the Development theory
Development theory
Development theory is a conglomeration of theories about how desirable change in society is best to be achieved. Such theories draw on a variety of social scientific disciplines and approaches.-Modernization theory:...
. This highlights the positive role played by the developed world in modernizing
Modernization
In the social sciences, modernization or modernisation refers to a model of an evolutionary transition from a 'pre-modern' or 'traditional' to a 'modern' society. The teleology of modernization is described in social evolutionism theories, existing as a template that has been generally followed by...
and facilitating sustainable development in underdeveloped nations. It is often contrasted with Dependency theory
Dependency theory
Dependency theory or dependencia theory is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former...
.
The theory of modernization consists of three parts:
- Identification of types of societies, and explanation of how those designated as modernized or relatively modernized differ from others;
- Specification of how societies become modernized, comparing factors that are more or less conducive to transformation.
- Generalizations about how the parts of a modernized society fit together, involving comparisons of stages of modernization and types of modernized societies with clarity about prospects for further modernization.
2.Dependency Theory
Dependency theory
Dependency theory
Dependency theory or dependencia theory is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former...
is the body of theories by various intellectuals, both from the 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...
and the First World
First World
The concept of the First World first originated during the Cold War, where it was used to describe countries that were aligned with the United States. These countries were democratic and capitalistic. After the fall of the Soviet Union and the end of the Cold War, the term "First World" took on a...
, that suggest that the wealthy nations of the world need a peripheral group of poorer states in order to remain wealthy. Dependency theory states that the poverty of the countries in the periphery is not because they are not integrated into the world system, but because of how they are integrated into the system.
These poor nations provide natural resources
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...
, cheap labor, a destination for obsolete technology, and markets to the wealthy nations, without which they could not have the standard of living they enjoy. First world nations actively, but not necessarily consciously, perpetuate a state of dependency through various policies and initiatives. This state of dependency is multifaceted, involving economics, media
News media
The news media are those elements of the mass media that focus on delivering news to the general public or a target public.These include print media , broadcast news , and more recently the Internet .-Etymology:A medium is a carrier of something...
control, politics
Politics
Politics is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs, including behavior within civil governments, but also applies to institutions, fields, and special interest groups such as the...
, banking and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
, sport
Sport
A Sport is all forms of physical activity which, through casual or organised participation, aim to use, maintain or improve physical fitness and provide entertainment to participants. Sport may be competitive, where a winner or winners can be identified by objective means, and may require a degree...
and all aspects of human resource development. Any attempt by the dependent nations to resist the influences of dependency could result in economic sanctions and/or military invasion and control. This is rare, however, and dependency is enforced far more by the wealthy nations setting the rules of international trade and commerce.
Dependency theory first emerged in the 1950s, advocated by Raul Prebisch
Raúl Prebisch
Raúl Prebisch was an Argentine economist known for his contribution to structuralist economics, in particular the Singer–Prebisch thesis that formed the basis of economic dependency theory. He is sometimes considered to be a neo-Marxist though this label is misleading...
whose research found that the wealth of poor nations tended to decrease when the wealth of rich nations increased. The theory quickly divided into diverse schools. Some, most notably Andre Gunder Frank
Andre Gunder Frank
Andre Gunder Frank was a German-American economic historian and sociologist who promoted "dependency theory" after 1970 and "World Systems Theory" after 1984...
, adapted it to Marxism
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...
. "Standard" dependency theory differs sharply from Marxism, however, arguing against internationalism and any hope of progress in less developed nations towards industrialization and a liberating revolution. Former Brazilian President Fernando Henrique Cardoso
Fernando Henrique Cardoso
Fernando Henrique Cardoso – also known by his initials FHC – was the 34th President of the Federative Republic of Brazil for two terms from January 1, 1995 to December 31, 2002. He is an accomplished sociologist, professor and politician...
wrote extensively on dependency theory while in political exile. The American sociologist Immanuel Wallerstein
Immanuel Wallerstein
Immanuel Maurice Wallerstein is a US sociologist, historical social scientist, and world-systems analyst...
refined the Marxist aspect of the theory, and called it the "world system."
According to Brazilian social scientist, Theotonio Dos Santos, dependence means a situation in which certain countries economies’ are conditioned by the development & expansion of another to which the former is subject. He goes on to further clarify that the interdependence of two or more economies, and consequently world trade, assumes the form of dependence when dominant countries can create dependency only as a reflection of that expansion, which can have a negative effect on the subordinate’s immediate economy.
See also
- Economic developmentEconomic developmentEconomic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
- Development theoryDevelopment theoryDevelopment theory is a conglomeration of theories about how desirable change in society is best to be achieved. Such theories draw on a variety of social scientific disciplines and approaches.-Modernization theory:...
- Developed countryDeveloped countryA developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...
- Developing countryDeveloping countryA developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
- NeocolonialismNeocolonialismNeocolonialism is the practice of using capitalism, globalization, and cultural forces to control a country in lieu of direct military or political control...
- ImperialismImperialismImperialism, as defined by Dictionary of Human Geography, is "the creation and/or maintenance of an unequal economic, cultural, and territorial relationships, usually between states and often in the form of an empire, based on domination and subordination." The imperialism of the last 500 years,...