05/10/2018

TEORI PEMBANGUNAN

R. RIJANTA

EVOLUTIONIST VIEW FROM ROSTOW

▪ As a non-communist manifesto, W. W.
Rostow’s stages of economic growth
(1960, 1971) is a foray into positioning
the sweep of modern economic history
under capitalism into neat and hopeful
epochs.
▪ Rostow’s work is an outstanding examples
of continuity and evolution.

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THEORIES OF DEVELOPMENT
EVOLUTIONIST VIEW:
STAGED ECONOMIC GROWTH
(W.W. ROSTOW)
1. Traditional society
2. Maturation for take off
3. Take off
4. Drive to maturity
5. Age of mass consumption
(affluent society)

Traditional society
• A traditional society is one of the simplest
and primitive forms of social organization.
• It is one whose structure is developed
within limited production function
• Within a limited range of available
technology there is a low ceiling per capita
output
• The center of gravity of political power was
localistic, region-bound and primarily
based on land ownership.
• A hierarchical, hereditary, status-oriented
social structure held down the mobility of
society at that time.

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Traditional society
1. Self sufficiency in food
2. Hierarchy - feudal

Maturation for take off

1.Radical changes in
agriculture, transport and
external trade
2.Efficient exploitation of
natural resources
3.Infrastructure/service
sector development
4.Entrepreurers saving and
investing

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Take-off
1. Technological innovations
2. Leading sector
3. New urban/ industrial
elite

Drive to maturity
1. Economic growth in all sectors
2. Increase in consumptive demand
3. Labor union formed

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Age of mass consumption (affluent society)

1. Non-material goods prominent
2. Pursuit of national power and world influence,
3. Welfare state redistributing income to correct the
aberrations of the market process,
4. Extension of consumer demand on durable consumer
goods and high grade foods.

CRITICISM TO ROSTOW’S THEORY

1. Economic Orientation
2. Ethnocentric, i.e. Western Point of View
3. Universal Development Path

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Country Experiences in Rostow’s Stages

of Economic Growth

DUALISM THEORY

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DUALISM THEORY
(BOEKE, LEWIS, DASGUPTA)
1. Capitalism transplanted
from the west to the third
world maturity (full-blown)
2. Assimilation of only small
section of society
→Dual structure in the economy
1. Development of leading
(modern) sector
2. Regression of rural
(traditional) sector
• Given the static nature of
rural sector, emphasis on
stimulating leading sector for
employment creation

Dualism Theory from Boeke

→ Dualism theory views that
the poverty and
underdevelopment of poor
countries is attributed to
their dualistic characters.

Dualism…..
1. Social Dualism
2. Technological Dualism &
3. Financial Dualism

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Main characteristics of dualistic society

There are three characteristics of a society
in the economic sense. They are as
1.social spirit
2.organizational form
3.techniques dominating them

Social characteristics of dualistic society

1. Dual society has two full grown social styles
which represent pre-capitalism and capitalism.
2. Dual society is furnished with the existence of
an advanced imported western system and
endogenous pre capitalistic agricultural
system.
3. Western system is under the western influence
which uses the advance techniques and where
standard of living is high.
4. Pre capitalistic agricultural system is native
and it is furnished with the outdated
techniques and low social and economic life.

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Economic characteristics of Dualistic Society

On economic basis the
dualistic society is classified
as by giving the names:
(i) Eastern Sector and
(ii) Western Sector

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There are certain characteristics of eastern sector of a dualistic economy which

distinguishes it from western sector……..

The needs of eastern sector are limited & people pass a contented life

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People work for social rather for economic needs

Goods are cultivated according to their prestige value rather

on their use value

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The native industries have neither

organization nor capital-Intensive and
they are ignorant of modern technology
and market conditions

People are indulged in speculative activities rather in business

enterprises.

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They do not take risk by making productive investment

(risk avoiding)

They lack the initiative and organizational skill which is a

feature of western sector of dual economy

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Labor is unorganized, passive and unskilled. They are reluctant to leave

their village and community. They are fatalist……….

Urban development takes place

at the cost of rural life

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Export is the main objective of foreign trade in the eastern

sector, while the western sector believes in imports

THANK YOU

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MODERNIZATION THEORY

Impetus to Modernization
• The rise of USA as new world leader and
decline of European Nations after WW II
• The spread of a united world communist
movement. The Soviet Union extend its
influence not only to Eastern Europe but
also China & Korea
• The disintegration of European colonial
empires in Asia, Africa and Latin America,
giving birth to many new nation states in
the Third World
• These new nation states are in search of a
model of development to promote their
economy and to enhance their political
independence.

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MODERNIZATION THEORY
(ROGERS, EISENSTADT, DEUTSCH)
1. Socio-cultural aspects of change from traditional to
modern society
2. Development of the nation-state are emphasized
3. Spread and acceptance of new ideas and technologies
(trickle down effects)
4. Diffusion of innovations through communication

Remarks of Modernization Theory

1. Urban bias toward functional area
2. Universal development path
3. Unidirectional change

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DEVELOPMENT AS MODERNIZATION

The total transformation of a

traditional or pre-modern
society into types of
technology and associated
social organization that
characterize the advanced,
economically prosperous,
and relatively stable nations
of the world (Wilbert E.
Moore).

1. Development = with what has MODERNIZATION

been achieved in the western
world
2. Development = advanced,
modern forms of technology
3. Development = material
affluence

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MODERNIZATION
1. Development = western forms of
social organization where identities
are defined by membership of
professional organizations instead
of kinship
2. Development = some form of
democratic /parliamentary system
3. Development = westernization

MODERNIZATION: ASSUMPTIONS
1. Uni-linear path to modernization
2. Two types of societies: modern &
traditional
3. Modernization = westernization

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RESULT: CREATION OF DUALITY & STEREOTYPES

• Modern vs traditional nations
• Urban vs rural societies
• Agricultural vs industrial societies
• Modern vs traditional economy

Main political features of Modern Society

a. Differentiation of political
structure
b. Secularization of political
culture -with the ethos of
equality-, which
c. Enhances the capacity of
a society’s political
system.

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Criticism to Modernization Theory

• The modernization of a society required
the destruction of the indigenous culture
• Modernization view sees unmodernized
societies as inferior even if they have the
same standard of living as western
societies
• The binary between traditional and
modern is unhelpful, as the two are linked
and often interdependent, and
'modernization' does not come as a
whole.
• Japan is cited as an example by both side
• Modernization theorists ignore external
sources of change in societies

DEPENDENCY THEORY

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Dependency Theory
• Introduced by Raul Prebisch in the late 1950s, is an
economic concept that identifies a financial
dependence between the rich and the poor nations
• This theory holds that the richer nations increase in
wealth at the expense of the poorer nations due to a
relationship that exists between economic and other
factors
• Economic activities in the industrialized countries
caused a range of economic problems in the poorer
nations
• The poorer nations are primarily exporters of
commodities and importers of the finished goods that
the industrialized nations produce with these
commodities
• Therefore, it is impossible to achieve equal growth.

DEPENDENCY THEORIES (1950’S, 60’S, 70’S)

(Dos Santos, Amin, Szentes, Wallerstein)

• Center – developed
countries and elites
within developing
countries
• Periphery – poor in
developing countries
Center develops at the
expense of the
periphery

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WHY DEPENDENCY?
• Center has monopoly power
• Low price and income elasticity
for goods produced by the
periphery
• High price elasticity of demand
for goods imported by the
periphery from the center
Result: periphery receives less
and less for exports and pays
more and more for imports

DEPENDENCY MODELS
(DOS SANTOS, AMIN, SZENTES)
1. External causes of underdevelopment are stressed
2. Transfer of resources from dependent sectors and
countries to dominant ones
C

C
P
C
C
P
1. Export dependency
2. Deterioration in terms of trade P
3. Import substitution

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DEPENDENCY MODELS
(continued)
1. focus externally on countries as
part of world economy
2. internal dynamics only treated in
a sketchy (imperfect) manner

Dependency Theory
a. As a part of structuralist theory of
development
b. Colonialism caused colonies to
become dependent on the colonial
powers
c. This enabled the colonial powers to
become wealthy at the expense of
the colonized
d. Resources exploited and depleted
e. Dependency persists even after
independence

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Wallerstein’s World Systems Theory:

a. Immanuel Wallerstein, a U.S. social
scientist, posited a world-systems
analysis that unified the world
economy with developed countries
forming an inner core area, whereas
developing countries occupy
peripheral locations.
b. Developing countries in the
periphery have less access to the
world center of consumption,
communications, wealth, and
power, which are clustered in the
core.

North–South Gap in Development

North-South Gap:
Earth's six less
developed regions are
Latin America, Southeast
Asia, the Middle East,
East Asia, South Asia,
and Sub-Saharan Africa.
The world's more
developed regions are
Anglo-America, Western
Europe, and Eastern
Europe, plus Japan and
the South Pacific.

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The World from Above the North Pole

Unevenness of Economic Development

Core
Regions that dominate trade, control most
advanced technologies, high levels of
productivity and diversified economies

Semi-Periphery
Regions that are able to exploit peripheral
regions but are themselves dominated by
core regions

Periphery
Regions with undeveloped or narrowly
specialized economies with low levels of
productivity.

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World Systems Theory

▪ According to Wallerstein, the modern
nation state exists within a broad
economic, political, and legal framework
which he calls a world system.
▪ Just as individual behavior cannot be
understood without reference the
sociocultural system in which they are
members, individual societies or nation
states cannot be understood without
reference to the world-system in which
they are embedded.
▪ Modern nation states are all part of the
world system of capitalism, and it is this
world system that Wallerstein seeks to
understand.

Three Types of Social Systems

a. Wallerstein believes that there are only three basic types of social systems: (1) mini
systems, (2) world empire, and (3) the world economy
b. In the process of this expansion, the capitalist world system has absorbed small mini-
systems, world-empires, as well as competing world-economies.

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The Mini Systems

▪ The first he terms as “mini-
systems,” these are the small,
homogenous societies studied
by anthropologists.
▪ Hunting and gathering, pastoral,
and simple horticultural
societies are relatively self-
contained economic units,
producing all goods and services
within the sociocultural system
itself.

The World Empire

▪ The second type of social system is
a “world empire.” This system has an
economy that is based on the
extraction of surplus goods and
services from outlying districts.
▪ Much of this tribute goes to pay for
the administrators who extract it
and for the military to ensure
continued domination, the rest goes
to the political rulers at the head of
the empire.

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The World Economies

▪ The third type of social
system, according to
Wallerstein, are the world-
economies.
▪ Unlike world-empires, the
world-economies have no
unified political system; nor
is its dominance based on
military power alone.
▪ However, like a world-empire,
a world-economy is based on
the extraction of surplus from
outlying districts to those
who rule at the center.

Capitalist World Systems

▪ From the start, Wallerstein argues, capitalism has had a division of labor that encompassed
several nation state.
▪ The capitalist world system began in Europe in about 1500 and under the spur of the
accumulation of capital, expanded over the next few centuries to cover the entire globe.

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Capitalist World Systems

▪ In the process of this expansion the capitalist world system has absorbed small mini-systems, world-
empires, as well as competing world-economies.
▪ The capitalist world-economy was created by establishing long-distance trade in goods and linking
production processes worldwide, all of which allowed the significant accumulation of capital in Europe.

Capitalist World Systems

▪ But these economic relationships were not created in a vacuum.
▪ The modern nation state was created in Europe along with capitalism to serve and to protect the interests of the
capitalists.
▪ What was in the interest of early European capitalists was the establishment of a world-economy based on an
extremely unequal division of labor between European states and the rest of the system.

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Capitalist World Systems

▪ Also in the interest of early European capitalists was the establishment of
strong European states that had the political and military power to enforce this
inequality.

Capitalist World Systems

▪ For Wallerstein, the capitalist
world-economy is a mechanism
of surplus appropriation that is
both subtle and efficient.
▪ It relies upon the creation of
surplus through constantly
expanding productivity.
▪ It extracts this surplus for the
benefit of the elite through the
creation of profit.

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Capitalist World Systems

▪ The capitalist world-system is
based on a twofold division of
labor in which different classes
and status groups are given
differential access to resources
within nation states, and the
different nation states are given
differential access to goods and
services on the world market.
▪ Both types of markets, both
those within and those between
nation states, are very much
distorted by power.

Three Types of Capitalist World

Wallerstein divides the capitalist
world-economy into….
a. core states,
b. semi-peripheral, and
c. peripheral areas.

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The Peripheral World

a. The peripheral areas are the
least developed
b. They are exploited by the core
for their cheap labor, raw
materials, and agricultural
production.

The Semi-Peripheral Area

a. The semi-peripheral
areas are somewhat
intermediate, being both
exploited by the core and
take some role in the
exploitation of the
peripheral areas.
b. In the recent past they
have been expanding
their manufacturing
activities particularly in
products that core
nations no longer find
very profitable.

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The Core States

a. The core states are in geographically
advantaged areas of the world—
Europe and North America.
b. These core states promote capital
accumulation internally through tax
polity, government purchasing,
sponsorship of research and
development, financing
infrastructural development (such
as sewers, roads, airports—all
privately constructed but publically
financed), and maintaining social
order to minimize class struggle.

The Core States

a. Core states also
promote capital
accumulation in the
world-economy itself.
b. These states have the
political, economic,
and military power to
enforce unequal rates
of exchange between
the core and the
periphery.

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The Core States

It is this power that allows core
states to dump unsafe goods
in peripheral nations, pay
lower prices for raw materials
than would be possible in a
free market, exploit the
periphery for cheap labor,
dump in their environment,
abuse their consumers and
workforce, erect trade barriers
and quotas, and establish and
enforce patents.

The Core States

It is the economic,
political, and military
power of the core that
allows significant capital
to be accumulated into the
hands of the few, the
capitalist world-system
that produces and
maintains the gross
economic and political
inequalities within and
between nations.

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The Core States

As with capitalism
within nation states,
this unequal power
between nation states
is not uncontested. It
is the subject of
struggle. There are
internal
contradictions that
with the passage of
time cause political
and economic
instability and social
unrest.

The Core States

Eventually, according to
Wallerstein, a world wide
economic crisis will be
reached and the capitalist
world-system will collapse,
opening the way for
revolutionary change.

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Criticism to Dependency Theory

1. Lack empirical evidences but many exceptions exist,
e.g. Akamatsu’s Flying Geese Paradigm
2. Abstract and simplifying categories of nations into
developed and developing
3. Ties to multinational corporation as detrimental,
neglecting possibilities such as technology transfer
4. Eurocentric biases that industrialization and possession
of industrial capital are crucial requisites for economic
progress
5. Inability to think beyond the state as the primary and
essential agent of economic development
6. Neglecting the hazardous implications for the
environment of industrialization and over exploitation of
resources
7. They do not reflect the changed socio-economic and
political situations of the contemporary world.

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