As a genera rule, people in developing countries suffer from poorer health than people in developed countries – with higher rates of deaths from preventable causes resulting in higher child mortality rates and lower life expectancies.
Theories of development aim to explain why this is the case and what the most effective solutions to improving health should be.
Modernisation Theory
Modernization Theorists would expect health patterns of developing countries to follow those of the developed world in the past. They believe that developing countries are entering the ‘epidemiological transition’ associated with economic development and rising GDP
Before the transition, infectious diseases are widespread and are the major causes of death; life expectancy is low and infant mortality high. With Industrialisation, urbanisation and economic growth come improvements in nutrition, hygiene and sanitation which lead to falling death rates from infectious diseases. After the transition, health improves.
It follows that the best way for developing countries to improve the health of the nation is to focus on industrialization, urbanization and economic growth. Improvements in health should follow.
Modernisation Theorists also argue that targeted aid can play a role in improving the health of developing nations
This can mainly be done through ‘Selective biomedical intervention’ – Such as mass immunization against disease, or distributing vitamin supplements to populations, or handing out mosquito nets. One of the best examples of this is the work of the Bill and Melinda Gate’s Foundation work on combatting Malaria, the reduction of which has been one the great success stories of the last decade.
The eradication of Smallpox is a good example of this strategy working:
One limitation of using selective biomedical intervention is that theexpense means that it is difficult to maintain, and, where the distribution of mosquito nets is concerned, this may lead to choking off local entrepreneurs, as Dambisa Moyo argued in ‘Dead Aid’.
Dependency Theory
Dependency Theory points out that attempts by developing countries to improve health may actually be hindered by the West
Firstly, if you remember, Dependency Theorists point out that it is exploitation by developed countries that keep developing countries poor and they receive very little income from their dealings in world trade which means there is little money left over for investment in health care.
Secondly, there is the problem of the ‘brain drain’ from the developing to the developed world. At least one in ten doctors in the west has been poached from the developing world – it is obviously much more appealing for people in Africa and Asia to work in Britain where they can receive several times the salary they would in their native country.
Thirdly, Many African companies have had to pay high costs for pharmaceuticals manufactured by Western corporations. This is especially true of AIDS drugs. Western companies are thus accused of exploiting desperate people in Africa.
Finally, some Transnational Corporations have actually contributed to health problems through selling products that would not be regarded as safe in the West, not to mention polluting in the pursuit of profit.
The Island of Anuta is one of the remotest places on Earth – part of the Soloman Islands, it is a 5-6 day sail from the Capital, with its nearest inhabited neighbouring island being over 50 KM away.
Boats may visit the island as infrequently as three times a year, so the islanders cannot rely on them for resources, they have to make use of what is available to them on the island and in the ocean surrounding.
Anuta is a very small island, with an area of only 0.4 square Kilometres, but with a population of around 300 it has one of the highest population densities on planet earth, similar to that of Bangladesh.
This island community should be of interest to any student studying the global development option for A-level sociology, as this case study illustrates many of the key themes of this module.
In terms of ‘economic development the inhabitants of Anuta are very undeveloped, they are money poor, but they seem to have a very high quality of life, almost idyllic.
At the very least this case study will make you question the advantages of western models of development, and the idea that advanced industrial economies are necessarily the most progressive.
Research studies on Anuta
The anthropologist Richard Feinberg has spent some time researching life on Anuta – he spent a year there in the early 1970s and returned more recently to make the film below, which is available on YouTube:
Bruce Parry also visited Anuta for several weeks as part of his Tribe documentary series, and if you can get hold of that from the BBC, it’s well worth a watch, although at time of writing this is more than a decade old already!
A summary of the video
The documentary starts on board the boat with the film makers and anthropologist talking through expectations.
When the boat first arrives at the island, one of the islanders comes aboard who Richard Feinberg knew from his previous visit (about a decade earlier) and they hug for about five minutes (quite unusual in itself by Western standards.
We first see the welcoming scene in which about three dozen people come out to meet – greeting by touching foreheads, quite a slow affair (again by Western standards)
We learn that population is becoming an issue – it has doubled in ten years, since the year 2000. People were even then starting to worry about their privacy, not so much the resources.
We now see the formal greetings with the chiefs – there is a hierarchical structure – based on ascribed status – if you can’t trace your lineage back to chief, you are not going to be a chief!
Anuta: emphasises compassion and equality
A core value in Anutan society is that of Aropa – which emphasises compassion for others and collaborative working and sharing.
One very tangible way this value manifests itself is through the equal sharing of finite resources – food for example is shared equally among all the islands inhabitants
There is a strong support structure on Anuta, the idea of someone being alone and unsupported is almost unheard of, something which is all too common in the west.
The entire crew of the ship is invited onto the island for a welcome feast – they get a full on welcome ceremony with dancing etc.
When you ask Anutans why they do something – there are two stock answers –
Because it’s tradition
Because it makes us happy
It’s worth nothing how different this is to the Western idea of doing something for the money, which often makes us miserable (Weber’s Instrumental logic!)
All of the islanders come out for the feast, and all 300 great the ship’s crew with a nose kiss, which ‘breaks down the individual personal bubble’.
Lots of the ship’s crew comment on how the way of being greeted was very emotional, with a total breaking down of barriers, and a real sense of unity being created between everyone.
Some historical context
They now go and visit with the Chief and he reflects on the past – he talks of previous famines, one in which people were forced to eat dirt to survive – he quips that since the arrival of the Christian Church there has been no famine as bad – so ‘our new God protects us better than the old gods.’
Feinberg also notes that the Christian teaching of ‘love thy neighbour’ fits in well with the Anuta value of Aropa – in that sense they were Christians before the Church got there!
Population and Environment
The Anutans seem to live a very sustainable life, recognising that everything the need comes from nature.
Despite their growing population they are not worried, at least that’s what the chief says.
The Anutans are self-sufficient for the most part – Fishing is the main activity, but they also hunt seabirds and grow food on the Island, the staple crop being Manioc
They are not entirely cut off in that they do use industrial technology to hunt and farm – steel fishing spears for example.
Some of the islanders also attend school off-island, and there is a monetary fund to pay for that, but not much detail is provided on this aspect of island life!
Interestingly, they have zoned out regions of the sea around the island which have extensive coral reefs, and they manage them sustainably, with bans on fishing in some of them for periods, to be harvested when the fish are bigger – kind of a natural sustainable management system!
Canoes
Canoes are treated as part of the family – trees on Anuta are scares, so when one is felled to make a canoe, it is a big deal.
We get to see one canoe which is over 100 years old and still used for fishing.
They are so important that if a canoe is damaged, a funeral is held, as if it were a dead relative.
Leaving Ceremony
There is an extensive leaving ceremony – in which they have a final tour of the island, and there is a group lamentation in which everyone weeps (a lot) as the guests leave.
We’re reminded that the Anutans, while very aware of the wider world, have made a choice to maintain their traditional culture as much as they can.
Anuta: Relevance to A-Level sociology
This case study can be used as a criticism of Modernisation Theory and Western Ideals of development more generally. Clearly the Anutans have a very traditional way of life, as expressed in their value of Aropa.
Aropa is quite like the collectivism mentioned in Rostow’s modernisation theory, but it is difficult to argue that this is ‘holding their culture’ back in anyway.
Of course there are challenges this community faces going forwards, and of course they benefit from modernisation in some ways (fish hooks) but it’s difficult to see how their becoming a fully fledged part of the modern capitalist industrial economy would benefit these islanders.
There are Economic, Cultural and Political elements of Globalisation
Optimist view of Globalisation
Pessimist view of Globalisation
Transformationalist
Traditionalist
Also…
Does Globalisation mean the decline of the nation state?
The problems of defining and measuring development and underdevelopment
How should we define and measure development?
The strengths and limitations of Western notions and categories of development – 1st, 2nd and 3rd World, North-South Divide, World Bank economic indicators (High to Low Income Countries)
The strengths and Limitations of using Economic indicators – mainly GNP/ GNI but also GDP, and HPI
The strengths and limitations of using Social Indicators – HDI, MDGs and others…
Different theories of development, underdevelopment and global inequality
Modernisation Theory – Internal cultural barriers to Development// Official Development Aid, Industrialisation, Capitalism
Dependency Theory – Colonialism, Exploitation and Extraction by the West// Breaking Away/ Socialism
World Systems Theory – Global Capitalist System – Core – Periphery –Semi-Periphery// Core Nations tend to remain dominant
Neoliberalism – Too much aid breeds corruption// More Trade – Deregulation, Privatisation, Low Taxation
People Centred Development – No Fixed path to development// Sustainability/ Democracy/ Justice
Bottom Billion– Four Traps//Aid and Fairer Trade and Peace
Aid, debt and trade and their impact on development
The strengths and Limitations of Official Development Aid
The strengths and Limitations of Non-Governmental Organisation Aid
The strengths and Limitations of Private Aid
The strengths and Limitations of ‘Free Trade’
Lots of complex stuff in the criticisms of the above – About Trade Rules! (Dumping/ Subsidies etc.)
The strengths and Limitations of Fair Trade
Also be ready for a question about ‘Debt’ and development
The role of transnational corporations, nongovernmental organisations and international agencies in local and global strategies for development. (This is done as part of the previous 4 topics!)
Development in relation to industrialisation and urbanisation
Arguments for Industrialisation AND Urbanisation (Modernisation Theory)
Arguments against Industrialisation (PCD/ Sustainable Development/ Dependency Theory
Arguments against Urbanisation
Slums (case studies!)
Theories – Dependency Theory/ Global Pessimism
Work, employment, education and health as aspects of development
How are they different in the developing world
How does poor education etc. act as barriers to development
How might improving them promote development?
Why might western models not be appropriate to the developing world
What are the limitations of each of these strategies in promoting development
How important each of these development goals is compared to other development goals
Relate all of this to theories of development
War and Conflict in relation to development
The nature of conflict in the developing world (small scale civil wars, not big scale techno wars)
Causes of conflict in the less developed world
How conflict prevents development
The role of the developed world in conflict
Gender and Development
The extent of gender inequality and oppression of women in developing countries
How might promoting gender equality lead to development?
How might women be disadvantaged in the process of development?
Why do global gender inequalities exist? Modernisation Theory/ Dependency Theory/ Radical Feminism
Population and Consumption in relation to development
Intro – Higher Birth rates in the developing world and population growth.
Malthusian Perspectives on the causes and consequences of population growth
Malthus
Paul Erlich’s Population Bomb (Neo-Malthusianism)
Criticisms of Malthusianism (alternative perspectives on the causes and consequences of population growth)
Science and Technology can feed more people
Increasing wealth = decreasing birth rates (Hans Rosling ) Population Growth is due to decreasing death rates – demographic transition, an indicator of increasing wealth!)
Dependency theory arguments – ‘Overpopulation’ is only a problem because of resource scarcity caused by the wests overconsumption (land grabs and bio fuels).
Uncertainty
Explanations of why birth rates are higher in developing countries
Strategies for reducing birth rates in developing countries
Both of the last two – contrast modernisation and dependency theories.
The Environment and Development
Context – Development has been fundamentally linked to the burning of fossil fuels, industrialisation, urbanisation and high levels of consumption
As a result we now face environmental problems (e.g. global warming, deforestation, pollution, toxic waste).
These primarily affect developing countries and harm development (outline how!)
Since the early 1990s – the concept of sustainable development has become big news – There are some limited International agreements – e.g. Kyoto Protocol/ MDG7.
Limitations of sustainable development –
Economic growth comes first, protecting the environment second
No legally binding international agreements limiting the burning of fossil fuels
Perspectives on what we should do about environmental problems
Modernisation Theory blames internal cultural factors for women’s subordination in the developing world. It is argued that some traditional cultures, and especially the religious ideas that underpin the values, norms, institutions and customs of the developing world, ascribe status on the basis of gender. In practise, this means that males are accorded patriarchal control and dominance over a range of female activities and, consequently, women have little status in developing societies.
Modernisation theorists note that gender equality is generally greater in more developed countries and believe that there is relationship between modernisation, economic growth and greater gender equality. The World Bank appears to be a strong proponent of this view today.
Trade, Economic Growth and Gender Equality
Below is an extract from a recent World Bank report on Globalisation, Economic Growth and Gender Equality.
Trade openness and the spread of information and communication technologies (ICTs) have increased women’s access to economic opportunities and in some cases increased their wages relative to men’s. Growth in exports, together with a decline in the importance of physical strength and a rise in the importance of cognitive skills, has increased the demand for female labour. ICT has also increased access to markets among female farmers and entrepreneurs by easing time and mobility constraints.
Women have moved out of agriculture and into manufacturing and particularly services. These changes have taken place across all countries, but female (and male) employment in the manufacturing and services has grown faster in developing than developed countries, reflecting broader changes in the global distribution of production and labour. In Mexico, for example, female employment in manufacturing grew from 12 percent in 1960 to 17 percent in 2008, with 10 times more women in 2008 than in 1960.
International peer pressure has also led more countries than ever to ratify treaties against discrimination, while growing media exposure and consumers’ demands for better treatment of workers has pushed multinationals toward fairer wages and better working conditions for women.
Increased access to information, primarily through wider exposure to television and the Internet, allows countries to learn about life and social mores in other places—knowledge that can change perceptions and ultimately promote adoption of more egalitarian attitudes. Increased economic empowerment for women can reinforce this process by promoting changes in gender roles and allowing newly empowered women to influence time allocation, shift relative power within the household, and exercise agency more broadly.
Countries with a comparative advantage in the production of female labour-intensive goods have lower fertility rates and, to a lesser extent, higher female labour force participation and educational attainment. For instance, moving from low female-intensity in exports (bottom quarter of the distribution) to high intensity (top quarter) lowers fertility by as much as 0.21 births per woman, or about 10 percent of the global total fertility rate.
Globalisation could also influence existing gender roles and norms, ultimately promoting more egalitarian views: women turned income earners may be able to leverage their new position to change gender roles in their households by influencing the allocation of time and resources among house- hold members, shifting relative power within the households, and more broadly exercising stronger agency. In fact, women appear to gain more control over their income by working in export-oriented activities, although the impact on well-being and agency is more positive for women working in manufacturing and away from their male relatives than for those work- ing in agriculture. Women in factories feel their status has improved.
Women in work also marry and have their first baby later than other women of similar socioeconomic status and to have better quality housing and access to modern infrastructure. They also report greater self-esteem and decision-making capacity, with benefits extending to other family members.
Beyond the economic sphere, increased access to information, primarily through higher exposure to television and the Internet, has also ex- posed many in developing countries to the roles women play in other parts of the world, which may affect gender roles and outcomes (chapter 4). For instance, in Brazil, a country where soap opera watching is ubiquitous and cuts across social classes, the presence of the Globo signal (a television channel that offers many popular Brazilian soap operas) has led to lower fertility, measured as the number of live births for women ages 15–49.
Similarly, evidence from rural India suggests that gender attitudes among villagers changed with cable television. Women with access to cable were less likely than others to express a son preference or to report that it is acceptable for a husband to beat his wife.
Interestingly, and somewhat contrary to standard notions about gender roles and women’s agency in the household, the evidence discussed here suggests that under some circumstances exposure to information can induce large and fast change. In Bangladesh, the employment of hundreds of thousands of women in the ready-made garment industry feminized the urban public space, creating more gender-equitable norms for women’s public mobility and access to public institutions. In the process, Bangladeshi women had to redefine and negotiate the terms of purdah, typically reinterpreting it as a state of mind in contrast to its customary expression as physical absence from the public space, modest clothing, and quiet demeanour.
Evaluations of Modernisation theory applied to gender
There is a very strong correlation between increasing trade economic growth and gender empowerment. Further evidence for this lies in this recent 2020 report from the World Bank.
However there are also some criticisms of this view:
Firstly, economic growth does not always result in gender equality – Japan and Saudi Arabia are two notable examples here and there is no country on earth yet has actual gender parity.
Economic development might even harm gender equality in some ways – according – if women are just exploited more because of their lower status, for example.
Thirdly, even though from our Western perspective we think of challenging traditional cultures as the right thing to do, but this could be regarded as ethnocentric.
Industrialisation is where a country moves from an economy dominated by agricultural output and employment to one dominated by manufacturing. This will usually involve the establishment of factories in which things are produced in a rationally organized (efficient) manner. Below we look at perspectives on ‘industrialisation’ as a means of development.
Industrialisation today at it’s best? Clean, modern and efficient.
How can Industrialisation Promote Development?
Industrialisation should promote economic and social development in the following ways.
Industrialisation means a country can produce a wider range of higher value goods – both for sale at home and for export abroad….
Industrialisation encourages the emergence of other businesses to meet the needs of factories – coal mining to provide power for example.
Industrialisation eventually means a country will be less dependent on manufactured imports from abroad
Industrialisation requires workers – who will be paid wages – which gives them more money and stimulates demand in the economy and further economic and social development
Industrialisation requires an educated workforce (at least some workers – management – need to be educated) which encourages the government to invest in education.
Industrialisation leads to urbanisation – as workers flock to factories to find work….
Arguments for the view that industrialisation leads to development
Modernisation Theory
Modernisation Theorists argue that Industrialisation lead to the West developing and this is what developing countries should do. In the 1950s and 60s, Modernisation Theorists suggested that the West should provide assistance in the form of Official Development Aid to developing countries – providing them with an initial injection of capital and expertise to enable them to build factories and power stations (hydro-electric dams were particularly favoured), and infrastructure to kick start industrialisation. Another form of ‘industrial development’ achieved with help from the west involved providing tractors and pesticides to ‘industrialise agriculture’ – which involved the setting up of large scale farms which could produce food more efficiently than numerous subsistence small holdings.
Supporting evidence for Modernisation Theory
There are a couple of examples of countries which have successfully (at least partially) industrialised with the support of Official Development Aid from the West – the most obvious examples being Indonesia, Botswana and to a lesser extent India.
Hans Rosling and the Magic Washing Machine
This presentation by Hans Rosling outlines the crucial role which the washing machine can play in development – the point being that you can’t really have washing machines without industrialisation!
Criticisms of the idea that industrialisation results in development
Dependency Theory and Industrialisation
Dependency Theorists (Classical Marxists) argue that Industrialisation is crucial for ‘independent development’ – but it is just as crucial that developing countries control the process of industrialisation, not the West.
Supporting evidence for Dependency Theory
This was the position adopted by Russia in the 1920s and 30s, China in the 1960s – where two communist governments controlled the industrialisation process. Even though tens of millions died during these respective periods of forced industrialisation, today these two countries make up 2/4 of the BRIC nations.
World Systems Theory and Industrialisation
Emmanuel Wallerstein argues that countries only industrialise if it benefits the West and that it isn’t in the interests of the West for every country to industrialise and grow economically. In short, not ever country and industrialise!
Wallerstein sees the World Economy as being is split into 3 main regions –
The Core – Who consume high tech ‘end products’ such as cars, computers, processed foods, holidays (planes) – these are also ‘post-industrial’ service economies – mainly Europe, America, some of Asia and parts of Latin America.
The Semi- Periphery – The ‘industrialising, sweat-shop manufacturing areas – who turn raw materials into the high end products that the ‘top billion consume’ – Most of Asia and Latin America.
The Periphery – These are the poorer countries and regions who export raw materials (most of Africa but also huge swathes of Asia and some of Latin America) to the semi-periphery, who then make the products that the Core consumes.
The last half century has witnessed much of Asia and Latin America industrialise because this has benefitted the core – we can afford cheap manufactured goods because of cheap labour. However, our present model of high-consumption also requires cheap raw materials – for example minerals for mobile phones and computers, cheap cotton for clothes, and cheap grains for meat – and these will only stay cheap if the countries in the periphery stay peripheral – i.e. we require them to stay stuck at the bottom as non- industrialised exporters of cheap raw materials.
Further to this most advanced western nations are now post-industrial – only about 10% of jobs in the UK are now in the industrial-manufacturing sector. As a result, we now have more jobs in the service sector and still massive unemployment and social problems in the de-industrialised north.
People Centred Development –
Countries don’t need Industrialisation to be socially developed!
People Centred Development theory argues that the whole idea of industrialization being essential to development is very Eurocentric – this is how most Europe developed and thus modernization theorists assume that every other underdeveloped country now needs to do the same.
The two case studies of Bhutan and Anuta both remind us that Industrialisation is not the only path to development. Both of these countries have not industrialized and both populations have very good standards of living when measured by the HDI and more subjective measures of happiness. Having said this, both of these countries make use of goods that have been produced by industrialized countries.
Modernisation theory saw TNCs as playing a positive role in helping societies to develop. Rostow (1971) saw the injection of capital as essential in the pre-conditions for take-off phase of development, and he thought TNC’s were one of the institutions which could help kick start the process of development by investing money, technology, and expertise that the host country did not possess.
It is neoliberals, however, who have historically been the real champions of TNCs as the most efficient institutions to kick-start and carry through development in poor countries. In neoliberal theory, economic success is proof of competence – the fact that TNCs have been making goods efficiently at a profit on a global scale for decades, if not centuries, mean that these are the institutions best placed to kick start economic growth in poor countries.
Neoliberals argue that the governments of developing countries need to pull down all barriers in order to create a ‘business-friendly’ environment in order to encourage inward investment from Transnational Corporations.
In Neoliberal theory, corporations will help a country develop in the long term by providing jobs and training. The money earned will be spent on goods and services at home and abroad creating more money to invest and (limited) tax revenue for further development.
A summary of the supposed benefits TNCs can bring to developing countries
TNCs bring in investment in terms of money, resources, technology and expertise, creating jobs often where local companies are unable to do so.
TNCs need trained workers and this should raise the aspirations of local people and encourage improvements in education
Jobs provide opportunities for women promoting gender equality.
Encourage international trade which could increase economic growth, access to overseas markets
All of the above means that wealth generated from TNC investment and production should eventually trickle down to the rest of the population.
Early modernisation theoristsbelieved that it was essential to inject aid into countries to establish infrastructure and change attitudes. From the 1950s to 70s aid programs seemed to have a positive effect on many developing countries as both economic and social development increased, however this progress seamed to stall from the late 1970s.
Contemporary supporters of aid believe that aid is not necessarily a bad thing, but aid needs to be targeted, its effects monitored and accountability measures need to be in place, so that aid money doesn’t go astray, like the $10 billion lent to Indonesia during General Suharto’s rule between 1965-1995.
NB Official Development Aid is only one type of aid, for an overview of all types of development aid, please see this post: different types of development aid.
The advantages of Official Development Aid
In the ‘End of Poverty’ (2005) Sachs notes that large scale aid can work when it is practical, targeted, science based and measurable. He believes in aid as ‘one big push’ to sort out specific problems. He points to the following evidence to support his view that aid works:
Firstly, aid aimed at improving health has been particularly successful. Aid money has led to mass immunisation of children against diseases such as smallpox and measles, polio, diphtheria. Smallpox was practically wiped out with $100 million of very targeted aid aimed at vaccinating those most at risk. Today, Barder (2011) points out that every year foreign aid pays for 80% of immunisations and saves 3 million lives a year.
Malaria Statistics
The recent sharp decline in Malaria deaths is largely due to targeted immunisation, paid for by international aid, a cause championed by the Bill and Melinda Gates foundation
Secondly – The Green Revolution – In the 1960s, Western Aid assisted in the green revolution in China, India and South East Asia which saw rice yields increase by 2-3 times, leading to surplus rice being produced for export. Such countries were then able to use the income generated by these cash crops to diversify and grow their economies, transforming into Newly Industrialised Countries (The Asian Tiger Economies). The video below outlines the case for the Green Revolution.
(NB – as a counter criticism you should check out ‘The Mythology of the Green Revolution, featuring Vandana Shiva – basically a ‘post-development perspective on the green revolution.)
Thirdly, Numerous countries, known as the International Development Association (IDA) graduates have gone on to ‘drive to maturity’ following large injections of aid money. Riddel (2014) argues that there is a substantial body of evidence that South Korea, Botswana and Indonesia have all benefited economically from Official Development Assistance.
Indonesia – seems to have benefited economically from a large amount of Official Development Aid over the years
Aid can support the Interests of Developed Countries (*)
According to Marren (2015), there is plenty of evidence that aid is shaped by the self-interest of the donor countries:
Aid may be used as a ‘sweetener’ to gain access to resources and markets and foster better trade links. The USA has used aid to guarantee access to scarce resources such as oil, while the increased donor activity of China in recent years may be linked to its need for raw materials. This goes some way to explaining why more aid money goes to lower-middle income countries rather than low-income countries – put simply, donor countries stand to gain more from giving aid the slightly better off rather than the very poorest.
Aid may be a way stimulating the donor economy. Some countries attach conditions to aid stipulating that a proportion of the funds must be spent on goods manufactured in the donor country. This is known as ‘tied aid’. The UK banned this kind of aid in 2001, although research conducted by The Guardian newspaper found that only 9 out of a total of 117 major DFID contracts (worth nearly £750 million) had gone to non-British companies.
Aid may be a way of strengthening political links and securing strategic interests. Countries which are viewed by the Americans as allies in the ‘War against Terror’ are generously rewarded with aid. A recent study of U.S. Aid since the 2000s showed that the main destinations were Afghanistan, Iraq and Egypt. Similarly, UK aid is increasingly being spent on military objectives.
Statistics on the Benefits of UK Aid (*)
The majority of UK aid spent between 2015-2019 was spent in Africa, and you can get a detailed breakdown of expenditure by sector and region in the most recent DFID report linked below (NB DFID has now merged with the FCO, so whether future reporting will be the same remains to be seen!)
Combatting malnutrition – From 2015-2020 DFID reached 55.1 million children under 5, women of childbearing age and adolescent girls through our nutrition-relevant programmes.
Water, sanitation and hygiene – Between 2015 and 2020 DFID has supported 62.6 million people to gain access to clean water and/or better sanitation.
Education – Between 2015 and 2020 DFID supported at least 15.6 million children to gain a decent education.
Jobs and Income – From 2015/16 to 2019/20 DFID supported 5million people to raise their incomes or maintain/gain a better job or livelihood.
Family Planning – Between April 2015 and March 2020, DFID reached an average of 25.3 million total women and girls with modern methods of family planning per year
Health – Immunisations – From the start of 2015 until the end of 2018, DFID support immunised an estimated 74.3 million children, saving 1.4 million lives.
Access to Finance – Between 2015 and 2019 DFID supported 69.2 million people to gain access to finance, including 35.4 million women, representing 51% of the total
Energy – From 2015/16 to 2019/20 DFID installed 771 KW hours of clean energy capacity.
Related posts
Of course there is a question mark over how effective the aid spent in the above statistics has been, which is one of the many criticisms made of Official Development Aid, which you can read about in this post here.
‘Free’ trade* refers to the relative absence of government interference in the affairs of private businesses and the consumers who buy their products. Free trade depends on free trade agreements.
Free Trade agreements are policies established between countries and private businesses which make it relatively easy for companies to produce and sell goods in more than one country, so the ‘free’ in free trade means the freedom of businesses from the restrictive power of government.
Free Trade – It’s about keeping goods circulating, and services of course!
Governments can restrict free trade across international boarders by doing the following:
Imposing tariffs – which are taxes that nations impose on imports. Tariffs increase the cost of goods, and make it harder for companies to sell their goods abroad. (Quotas are similar but blunter instrument than tariffs, they are simply a limit which governments put on the number or value of imports they will accept from certain countries in any given time period)
Subsidizing domestic industries – which are government hand-outs or tax breaks on domestic companies – if a government does this, then it makes domestic goods cheaper and foreign goods relatively more expensive – it’s effectively the opposite of tariffs.
Imposing high taxes on profits – which reduces incentives for private companies to invest and produce goods.
Having too many regulations – which require that companies pay workers minimum wages, do health and safety assessments, and take care of the environment.
It follows that Free trade agreements tend to focus on:
Eliminating tariffs and quotas
Eliminating government subsidies
lowering taxes on profits
Reducing regulation and protection.
Free trade opens up foreign markets and lowers barriers for foreign companies that otherwise might not be able to compete against local businesses. Without free trade agreements, there would probably be less trading between countries.
The idea of free trade goes back a long way
One of the most well- known historic proponents of free trade was Adam Smith. In his 1776 book The Wealth of Nations Smith argued that the ‘invisible hand’ of the free-market would ensure that producers produced what consumers wanted as efficiently as possible.
David Ricardo expanded on Smith’s ideas arguing that countries tended to have a comparative advantage in providing different goods and services and should do what they do better and cheaper than other countries, and in this way everyone benefits. For example, the U.K. climate is well-suited to growing apples, but not sugar-cane, and vie-versa for Jamaica, so it makes sense that two countries specialize in each crop and trade, rather than trying to grow everything themselves.
Modernisation Theory and Neoliberalism both argue that developing countries need to increase their share of world trade (export and import more) in order to develop, and both recognize that most developing countries have enormous potential to increase exports, given that they have a two important ‘competitive advantages’ over the West –an abundance of natural resources, which the West no longer has, and abundance of cheap labour.
However, the two theories have very different ideas about how poor countries should increase trade – modernization theory prefers aid to encourage trade, whereas neoliberalism is suspicious of aid, believing that poor countries should move straight to opening up the markets to attract TNC investment.
Modernisation Theory
Modernisation theory argues that increasing trade with other countries is a crucial part of ‘climbing the ladder of development’.
Initially, in phase two, or ‘the pre-conditions for take-off’, developing countries themselves have very low levels of capital and expertise, and so they require aid from the West, in the form of capital investment and western advice, which could help countries establish an industrial base, for example.
In the ‘take off’ phase (phase three) of Rostow’s model, countries will start to manufacture goods for export to other countries, and the ‘drive to maturity’ phase (phase four) sees earnings from exports reinvested in public infrastructure such as education, which results in a higher skilled workforce and further integration into the global economy.
After 60 years, the ‘age of high mass consumption’ should have been attained which means that countries are equal trading partners in the global market place.
Neoliberalism
Reid-Henry (2012) argues that neoliberalists see global free-trade markets as both the means and desired end for development.
Neoliberal development policy argues that developing countries need to create a ‘business-friendly’ environment in order to encourage inward investment from wealthy individuals and Transnational Corporations.
Reid-Henry suggests there are four key organizing principles of neoliberal policy:
The governments of developing countries are expected to pull down all barriers to Western investment
Workers in the developing world are expected to work hard and cheaply for Transnational Corporations
Public services need to be privatized
Social life should be organized around the profit motive.
Many developing countries have actually set up huge Export Processing Zones, or Free Trade Zones In order to attract TNCs developing countries have set up. These are special areas in that country, typically close to ports, which offer incentives for Transnational Corporations to invest, including tax breaks, low wages, and lax health and safety legislation.
In Neoliberal theory, corporations will help a country develop by providing jobs and training. The money earned will be spent on goods and services at home and abroad creating more money to invest and (limited) tax revenue for further development.
Evaluations
It is true that there is an obvious relationship between trade and economic growth. The world’s top five countries, ranked by GDP, export (and thus profit from) 40% of the world’s goods. Meanwhile, the bottom 50 GDP countries export less than 1% of the world’s goods.
However, dependency theorists argue that ‘free-trade’ has historically brought more benefits to wealthy countries and corporations compared to developing countries.
The impact of free trade agreements on the economies of developing countries – DFID 2015 – based on a ‘rapid assessment’ of 144 studies of FTAs between developed and developing countries, this recent report concludes that (a) in most cases the evidence isn’t strong enough to say what the effects of free trade are and (b) where the evidence is strong enough, it’s mixed.
*The reason I typically parenthesize the ‘free’ in ‘free trade’ is that for free trade to happen effectively it actually requires a substantial legal framework, which requires government and a legal system to which all parties agree – the most obvious aspect of which is the protection of private property – which basically says that if you make a profit, you can keep it, rather than having someone come and simply take it off you.
By the end of WW2 it had become clear that despite exposure to Capitalism many of the countries of the South had failed to develop. In this context, in the late 1940s, Modernisation Theory was developed. Modernisation theory had two major aims
It attempted to explain why poorer countries have failed to develop, focussing on what cultural and economic conditions might act as ‘barriers’ to development
It aimed to provide a non-communist solution to poverty in the developing world by suggesting that economic change (in the form of Capitalism) and the introduction of western values and culture could play a key role in bringing about modernisation.
Why countries are underdeveloped: Cultural and economic barriers to development
Modernisation theorists argue that there are a number of cultural and economic barriers that prevent traditional societies from developing.
Cultural barriers are seen as internal to the country – it is essentially their fault for being backward. Western culture, on the other hand, is seen as having a superior culture that has allowed for it to develop.
Traditional Values –prevent economic growth and change
Modern Values – inspire change and economic growth.
Simple division of labour, less specialised job roles, individuals rely on a few dozen people in their local communities for basic needs to be met.
Complex division of labour, individuals tend to have very specialised jobs and rely on thousands of others for basic needs to be met
Religious beliefs and tradition influence day to to day life (resistance to change)
Rational decision making (cost benefit analysis and efficiency) are more important.
Stronger community and family bonds and collectivism
Weaker community and family bonds means more individual freedom.
Affective relationships
Meritocracy –people are more motivated to innovate and change society for the better.
Patriarchy
Gender equality
Economic barriers to development
These are barriers which may make developing countries unattractive to investors.
Lack of infrastructure
Lack of technology
Lack of skills in the work force
Political instability
Lack of capital in the country
See the next sheet for details of modernisation theory
Modernisation Theory 2: How countries should develop
Rostow believed that an initial injection of aid from the west in the form of training, education, economic investment etc. would be enough to jolt a society into economic growth overcoming these cultural barriers.
Rostow suggested that development should be seen as an evolutionary process in which countries progress up 5 stages of a development ladder
Rostow’s five stage model of development
Stage 1 – Traditional societies whose economies are dominated by subsistence farming. Such societies have little wealth to invest and have limited access to modern industry and technology. Rostow argued that at this stage there are cultural barriers to development (see sheet 6)
Stage 2 – The preconditions for take off – the stage in which western aid packages brings western values, practises and expertise into the society. This can take the form of:
Science and technology – to improve agriculture
Infrastructure – improving roads and cities communications
Industry – western companies establishing factories
These provide the conditions for investment, attracting more companies into the country.
Stage 3 – Take off stage –The society experiences economic growth as new modern practices become the norm. Profits are reinvested in infrastructure etc. and a new entrepreneurial class emerges and urbanised that is willing to invest further and take risks. The country now moves beyond subsistence economy and starts exporting goods to other countries
This generates more wealth which then trickles down to the population as a whole who are then able to become consumers of new products produced by new industries there and from abroad.
Stage 4- the drive to maturity.
More economic growth and investment in education, media and birth control. The population start to realise new opportunities opening up and strive to make the most of their lives.
Stage 5 The age of high mass consumption. This is where economic growth and production are at Western levels.
Variations on Rostow’s 5 stage model
Different theorists stress the importance of different types of assistance or interventions that could jolt countries out their traditional ways and bring about change.
Hoselitz – education is most important as it should speed up the introduction of Western values such as universalism, individualism, competition and achievement measured by examinations. This was seen as a way of breaking the link between family and children.
Inkeles – media – Important to diffuse ideas non traditional such as family planning and democracy
Hoselitz – urbanisation. The theory here is that if populations are packed more closely together new ideas are more likely to spread than amongst diffuse rural populations
Criticisms of Modernisation Theory
The Asian Tiger economies combined elements of traditional culture with Western Capitalism to experience some of the most rapid economic growth of the past 2 decades.
Ignores the ‘crisis of modernism’ in both the developed and developing worlds. Many developed countries have huge inequalities and the greater the level of inequality the greater the degree of other problems: High crime rates, suicide rates, health problems, drug abuse.
Ethnocentric interpretations tend to exclude contributions from thinkers in the developing world. This is a one size fits all model, and is not culture specific.
The model assumes that countries need the help of outside forces. The central role is on experts and money coming in from the outside, parachuted in, and this downgrades the role of local knowledge and initiatives. This approach can be seen as demeaning and dehumanising for local populations. Galeano (1992) argues that minds become colonised with the idea that they are dependent on outside forces. They train you to be paralysed and then sell you crutches. There are alternative models of development: See sheet no…
Corruption (Kleptocracy) prevents aid of any kind doing good, Much aid is siphoned off by corrupt elites and government officials rather than getting to the projects it was earmarked for. This means that aid creates more inequality and enables elites to maintain power
There are ecological limits to growth. Many modernisation projects such mining and forestry have lead to the destruction of environment.
Social damage – Some development projects such as dams have lead to local populations being removed forcibly from their home lands with little or no compensation being paid.
Some Marxist theorists argue that aid and development is not really about helping the developing world at all. It is really about changing societies just enough so they are easier to exploit, making western companies and countries richer, opening them up to exploit cheap natural resources and cheap labour. Joseph Stiglitz notes that those countries that followed alternative models of development ignoring western advice are now competing with the west, China and India are two examples.
