Module 2, Task 5 PDF

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JENICA LAGUA JURADO BSACC 3BTask # 5 – Provided with the readings in this module, answer the six questions for discussion at the end of this case study. Explain the essential distinctions among the stages-of-growth theory of development, the structural –change models of Lewis and Chenery, and the th...

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JENICA LAGUA JURADO

BSACC 3B

Task # 5 – Provided with the readings in this module, answer the six questions for discussion at the end of this case study. 1. Explain the essential distinctions among the stages-of-growth theory of development, the structural –change models of Lewis and Chenery, and the theory of international dependence in both its neo-Marxist and false-paradigm conceptualizations. Which model do you think provides the best explanations of the situation in most developing nations? Explain your answer. The Linear Stages Model viewed the course of development with a sequence of stages of economic growth through which all countries must pass namely traditional society, the preconditions for takeoff into self- sustaining growth, the take off, the drive to maturity and the age of high mass consumption. a. Rostow’s Stages of Growth tells that conversion of underdeveloped countries to developed countries can be described through series of steps which countries must follow. b. Harrod-Domar Growth Model is a principal economic model used and the key for take-off of developing countries which is increasing of domestic and foreign investment to quicken economic growth. Economic growth and development is seen in the model only as a matter of increasing national savings, domestic and foreign investment (direct and portfolio investment. The Structural Change Model is made due to the unsuccessful usage of linear stages model. The model addresses the errors and defects of the linear model. The model’s basic idea is underdevelopment is due to underutilization of resources especially the labour force. Surplus labour in the agricultural sector is taken to urban sectors so that the industrial sector will increase. It’s basically to change the structure of the economy. a. The Lewis Theory of Development is a development model for surplus labour countries to increase its urban sector by adding the surplus labour rural areas into the industrial sector. Therefore, with this structural transformation, the economic activity is shifting from rural agriculture to modern urban industry. b. Structural Change and Patterns of Development is also a structural model that focuses not only on the increased savings and investment of a country but also includes some conditions like addition to physical and human accumulation of capital, transformation of production and changes in the composition of consumer demands, international trade and other socio-economic factors as urbanization and distribution of population. The International Dependence Revolution is a model that views developing countries is affected by the institutional, political and economic inflexibilities due to the dependence and dominance relationship with rich countries.

a. The Neo-colonial Dependence Model tells the control of rich countries over the development of poor countries. The cause of underdevelopment of developing

JENICA LAGUA JURADO

BSACC 3B

countries is because of the existence and policies of the developed countries that serves as the ruling elite. b. The False Paradigm Model features underdevelopment as a result of uninformed and biased international “expert” advisers from rich countries that poor countries has had accepted without considering the needs of their nation. I think there is no specific perfect model that can be used by a country. Developing countries should assess what is a good opportunity to them and question themselves what are their resources available. Countries can pick parts of every model they know that can effectively, relevantly, and adoptable or suitable for the current situation and to the kind of opportunities/resources/problems they are currently facing. They may pick up some ideas form different models which is useful to their economy. 2. Explain the meaning of dualism and dual societies. Do you think that the concept of dualism adequately portrays the development picture in most developing countries? Explain your answer. The term dualism implies presence of both desirable and undesirable situations of phenomena that are mutually exclusive to different groups of the society (growth and stagnation) (rich and poor). It is a concept which represents the existence and persistence of increasing divergences between rich and poor both at world level and at country levels. The dual society means that there exist rich nations and poor nations at world level; and a few rich accompanied with a majority of poor people in the developing countries. It is a society where two different sectors co- exist. These sectors are divided by different levels of development, technology and patterns of demand. Rural being the unskilled and illiterate and urban being the skilled and educated. Some are superior to others and can coexist. Rich countries definitely have power over poor countries. Coexistence is chronic and not merely transitional. Superiority and inferiority have inherent tendency to increase and superior elements does little or nothing to pull up the inferior element. 3. Some people claim that international dualism and domestic dualism are merely different manifestations of the same phenomenon. What do you think they mean by this, and is it a valid conceptualization? Explain your answer. Dualism is a concept of situations that are mutually dependent on one another. When rich people exist, poor people exist too. International dualism is just on the scale of global while domestic is on a smaller scale but the rich and poor were still applied to both of them. For me, it is not a valid conceptualization because even the rich country exists, the poor countries does not rely in terms of development given they have diverse situations and resources. If we put on the logic of dualism, rich countries develop and poor countries does not which is not interrelated to each other but on some factors, dualism can be applied. 4. What is meant by the term neoclassical counterrevolution? What are its principal arguments, and how valid do you think they are? Explain your answer.

JENICA LAGUA JURADO

BSACC 3B

The neoclassical counterrevolution supports free trade and increase in export and the government has minimal control over prices and imported goods. Government should not meddle or intervene in any economic activity. Underdevelopment results from poor resource allocation due to incorrect pricing policies and too much state intervention by overly active developing nations. I think the argument is valid. If we allow free market to flourish, promoting free trade, export expansion, welcoming investors from developed countries, eliminating plethora of government regulations, economic efficiency and economic growth will happen. 5. Given the diversity of developing countries, do you think that there could ever be a single, unified theory of development? Explain your answer. I don’t think so. Each country is different. Rich and poor countries have different level of standard of living, labour productivity, level of economic inequality and absolute poverty, population size, geographical situation, level of industrialization, colonial exploitation, and dependence on foreign aid. There is no single, unified theory of development that is suitable for the current situation that every country is facing. 6. Is the neoclassical, free-market theory necessarily incompatible with dependence theory? How might these two approaches work together? Dependence theory is solely influenced from colonial ruling while free market theory promotes freer markets, especially on price regulations and government influence. These two approaches can work together through colonial markets which might provide resources and help develop the market....