1. Features of the Development Project
Unit: Nation-states
Goal: Economic growth, industrialization
Two variants of the project:
free enterprise capitalism
central planning and socialism

2. National industrialization
Import substituting industrialization (ISI) model:
-- Replacing industrial imports with domestically produced industrial goods
-- Protecting domestic industries
How to do that?

3. “National” industrialization
-- Ideal of national, and internal growth
-- Internationalization of “national” economies through
- foreign direct investment
- foreign aid
-- The Development Project was first tested in Latin America (ECLA) in the 1950s

4. The International Context of Developmentalism
Chapter 3 in Development and Social Change

5. Ingredients of the Development Project
Organizing concept of development
National framework
International framework
Industrialization
Agro-industrialization
“Development states”: managing investments and political alliances
Creation of new inequalities

6. The International Framework
American bilateralism:
Marshall Plan by the US ( )
a new “triangular trade”
Foreign aid
Who got most of the aid? Why?
What was the rationale behind the Marshall Plan and American foreign aid?

7. Multilateralism:
Creation of the Bretton Woods institutions (IMF and World Bank) (founded in 1944)

8. Functions of the IMF and the WB
- Stabilizing national financial and revitalizing international trade (IMF)
Funding Third World imports of First World manufactures (IMF)
Deepening Third World primary exports to the First World (WB)
Funding large-scale infrastructural projects (WB)

9. Anything wrong with the roles of the IMF and the WB?
Division of labor?
Ecological consequences?
Social consequences?
What are the structures of the IMF and the World Bank?

10. Third World Responses to the Politics of Developmentalism
The Nonaligned Movement (NAM) (1955): demands for independence from the Soviet Union and US
UNCTAD (1964): demands for reform in the world economy
Did these demands have a positive consequence?

11. Differentiation within the Third World
Newly Industrializing Countries (NICs)
Most of the “development” took place in NICS
Third World manufacturing was concentrated in 8 countries

12. What are the features of the NIC model?
What were the consequences of the NIC experience?

13. Consequences of the Development Project
Western control over the Development Project
Capital-intensive industrialization
A “global” model of development emerged by the 1970s, instead of “national” development
A new international division of labor

14. A new international division of labor
By the 1970s:
-- Western financial and technology transfer to developing countries
-- Industrialization in some developing countries
-- Some developing countries became exporters of manufactured goods
-- First World countries exported more agricultural goods than the Third World

15. Why did Third World countries become food importers?
The role of agriculture in the new international division of labor:
A- Food aid
B-Green Revolution

16. Agriculture under the Development Project
American food aid
Public Law 480 Program
1- cheap food exports
2- famine relief
3- barter of food and raw materials

17. Consequences of food aid
Third World dependency on US grains
Developing countries became consumers of US grains: by the 1970s, Third World bought half of US farm exports
“Peasant agriculture” declined
Food aid subsidized urban workers
Diets changed

18. Consequences of food aid
The US also exported feed grains
First World consumers consumed more meet
“Hamburger connection”: Deforestation and land clearing
Third World middle classes also consumed more meat
“Engel’s Law at a global scale”

19. Green Revolution
Plant breeding technologies supported by the US, FAO, UNDP and World Bank
-- High-yielding varieties (HYVs) of seeds
-- Inorganic fertilizer use
-- Chemical pesticides and herbicides
 Increased agricultural productivity

20. Consequences of the Green Revolution
“Petro-farming”
Green Revolution was the “ISI” of agriculture!
Expansion of chemical agriculture
Expansion of industrial farming
Feeding urban populations in the Third World
Decline of peasant agriculture
Negative ecological consequences
Economic differentiation among peasants

21. Summary The development project resulted in:
-- industrialization in some Third World countries
-- industrial agriculture in some Third World countries
-- growth of urban working classes
-- rural to urban migration, urbanization
-- “urban bias”
-- land reform in some countries
-- growing food imports in many Third World countries
-- ecological degradation
-- differentiation among Third World countries
-- a new international division of labor

22. The development project turned out to be global, rather than national