Less-Developed and Newly Industrializing Countries

Less-Developed and Newly Industrializing Countries

The Three World’s 1st World: advance democracies
2nd World: Communist and post-communist countries Leave out many countries in the world Latin America, Asia, Africa 3rd World: Group together a diverse range of people and political systems according to what they were not, rather than what they were

The Three World’s Advanced Democracies: Communist Less developed
Early capitalist development Post modern system Communist Rapid modernization Industrialization directed by the state Less developed Mixture of pre-modern and modern institutions Hybrid of economic, societal, and political institutions Foreign and indigenous

The Three World’s Distinguish between less-developed and newly industrialized countries What challenges and obstacles these countries have faced after gaining independence? What policies might help generate greater democracy, political stability, and economic prosperity in these countries? Out of these dilemmas can emerge new ideas and innovations with the potential for positive change

Third World divided into two groups:
Freedom and Equality in the Newly Industrializing and Less-developed Countries Third World divided into two groups: Newly industrialized (NIC): Experienced dramatic rates of economic growth Democratization Political stability Social stability Example: South Korea Post Korean war 50 years = world’s largest economies Slowly develop democratic institutions Stable and democratizing political institutions Expanding a web of nongovernmental institutions Growing Economy

Third World: divided into two groups
Freedom and Equality in the Newly Industrializing and Less-developed Countries Third World: divided into two groups Less-developed countries (LDC’s) Economic and political structures remain weak Marked by economic stagnation or decline some sliding into Poverty Violence Civil conflict Example Ghana

Common tread (LDC + NIC)
Freedom and Equality in the Newly Industrializing and Less-developed Countries Common tread (LDC + NIC) Weakness of freedom and equality NIC: democracy and economic development Remain shaky and incomplete Still be undermined Gaps between the rich and the poor Politics have become polarized LDC Economic and political power rest in the hands of a few Reasons: Imperialism and Colonialism

Imperialism and Colonialism
Past Millennium Europe, Middle East, and Asia embarked on a series of dramatic social, economic, and political changes that formed the outlines of what are now recognized as the hallmarks of modern society: Ethnic and national identity Technological innovation Political centralization

Empires: as single political authorities that have under their sovereignty a large number of external regions or territories and different peoples Idea that lands and peoples that are not seen as an integral part of the country itself are nonetheless under its direct control

Imperialism: system whereby a state extends its power in order to directly control territory, resources, and people beyond its borders Propagated by European powers from the 16th and 21st centuries Driven by economic, strategic, and religious motives Often led to colonialism

Colonialism: indicates a greater degree the physical occupation of a foreign territory through military force, businesses, or settlers Central goal of imperialism A means to consolidate one’s empire

Dated from the 1500’s Technology developed in Europe, the Middle East, and Asia Advance seafaring and military technology China Turned away from this past Consolidated power Grew conservative and inflexible Maintain status quo….striking out to acquire new lands

Europeans: Americas Saw Imperialism as a means of expansion Resources, markets, subjects, and territory in order to gain the upper hand Chinese Retreating from overseas voyages Middle East Ottoman Empire Asia, North Africa, parts of Europe Turned inward and lost interest and in expanding power

Europeans begin expansion 16th century Europe embarks on imperialism Economic and strategic motives Spread of Christianity and western culture Last 5 centuries 17th century British, French = North America 18th century Europeans exert control 19th and 20th centuries Expanded rapidly in Asia Africa divided by European states Possessed Well-organized political system Military structures Technological advances Economic resources

Institutions of Imperialism: Exporting the State
Consolidating powers over Forms of political organization Eliminating rivals Clearly delineating their boarders Establishing sovereignty Europeans new territories were incorporated into the state structure Carved up by rival states for economic resources and strategic advantages

Institutions of Imperialism: Exporting the state
Boarders were a reflection of Own power over geographic, religious, or linguistic realities (i.e. Africa) Imposed boundaries would become demarcations for independent countries Established state power and authority Bureaucratic structures similar to home police Taxes Legal systems Public goods: roads, schools, and hospitals “civilize” the modern world People under colonial rule were considered to be subjects, not citizen Had few political rights

Institutions of Imperialism; Exporting the State
Increased education Benefited from infrastructure Improved communication and transportation Life expectancies rose/infant mortality rates decline Population explosion (still continues today) Traditional institutions (religion and custom) were eroded Process was incomplete/uneven Imperial territories Economically and politically underdeveloped Conflict over identity Flamed anti-imperialism views Desired freedom and control

Institutions of Imperialism: Ethnicity, Nationalism, and Gender
Unknown prior to imperialism Identified themselves by tribe, religion, economic position, or vocation Imperial elites identify themselves by ethnicity and nation Took great interest in identifying and classifying different ethnic groups (examples?) Structuring their political and economic control

Basic rights became tied to an ethnic group Some cases tied to early-modern notions of race Certain ethnic groups were superior Promoted to positions of power Economic advantages Colonizing race was superior to the colonized Migrants: Further shaped ethnic divisions Awarded special economic and political privileges Inequality and ethnicity became interconnected

National identity: 19th and 20th century- powerful force in the industrializing world Unfamiliar with national identity Little notion of a sovereign state Viewed people as inferior subjects Limited ability to improve their standing within the empire Imperial idea of nationalism provided people with the very means to challenge foreign rule

National Identity Nationalism meant: right for a people to live under their own sovereign state, did this nor mean the subjects people had a right to rule themselves Empires provided the ideological ammunition that subjects would use to overturn imperialism

Roles differed greatly Brought benefits to women Increasing their freedom and equality Improved access to health care and education Reverse occurred in some areas Example Nigeria Pre-colonial: Ibo women wielded great power Imperialism brought more rigid and hierarchical roles Economic status marginalized women Progress came at a price

Institutions of Imperialism: Dependent Development
First important change Replacement of traditional agriculture Driven by the needs of the industrializing capitalist home country Subsistence farming/barter = cash economies

Cash based economy Transformed economic production Mercantilist political-economic system: Extracted revenue from their colonies Used territories and people as a captive market for finished goods from the “home country” Free trade did not exist for colonies

Colonial production was organized to provide good to “home country” Rebuilt around primary products Cotton Cocoa Coffee Tea Wood Rubber Other valuable commodities

Large businesses Established these extractive-economies Dominated by a single monopoly Example: Indonesia, United East India Company, Dutch firm Spice exports Finished goods from Europe Destroyed indigenous trade groups Lead to the creation of large plantations Rubber, coffee, or tobacco

Economic organization Impeded domestic development Infrastructure developed to facilitate effective extraction and export Rather than to improve communication or movement of the people Jobs were created Local entrepreneurialism and industrialization were limited Agriculture Damaged ability of people to feed themselves Small farmers run out of business

Economic institutions Traditional agricultural economies were transformed to suit the needs of the imperialist power Free trade was often suppressed as colonies were forced to supply goods only to the imperial country, creating extractive economies in the colonies Economic organization under imperialism impeded domestic development in the colonies

Modern states Expanded power around the globe Established new political, economic, and social institutions Reflection of “home country”; consolidation of imperial rule Mixture of indigenous and foreign structure/pre-modern and modern Political institutions/new societies Citizenship and participation were restricted

Economic development encouraged Form that would benefit home country Generated new identities and conflict By classifying people Between ruler and ruled Between people themselves Contradictions Inequality and limitation on freedom Assimilated to modern ideas and values Helped foster public resistance to imperialism Paved the way for independence

Challenges of Post-Imperialism
Latin America : “freed” most of the region by 1826 Africa: decolonization came after WWII Elimination of Imperialism Did not solve the problems NIC and LDC Continue to Struggle Political Social Economic challenges to development and stability Freedom and equality Problems are from legacy rule.

Challenges of Post-Imperialism: Building State Capacity and Autonomy
Difficulty and creating new political institutions State power: distinguishing between state capacity and state autonomy Capacity: ability of a state to achieve basic policy task Autonomy: ability of a stat to act independently of the public Both are needed to carry out policy Both have been difficult to achieve

States are unable to perform many basic task expected by the public Creating infrastructure Providing education Health Traced to the absence of a professional bureaucracy to run the government Exacerbated by the politicization of the state Bureaucracy: source for jobs, resources, and benefits Doled out by political leaders as a way to solidify control Provide goods and benefits to public in return for political support

Patrimonialism: the state is packed with officials whose only qualification is their support for those in power Main goal is to siphon resources from the state for their own enrichment

Able to function without consulting the population Repress and terrorize the population as they see fit Limited See the state as a resource to be exploited rather than a tool for achieving policy Results: corruption or “kleptocracy” Government by theft IE: Nigeria During military rule in the 1990’s officials stole more than $1billion from the state treasury Not all LCD and NID are corrupt Singapore, Chile, Botswana (rank among least corrupt countries in the world) US is ranked fourth Corruption index, 2000 chart (handout)

Challenges of Post-Imperialism: Forging Social Identities
Societies were not homogeneous Diversity became problematic Migration complicated things further After independence problems became apparent

1st: economic implications Ethnic groups favored under colonialism continue to monopolize the wealth i.e. Malaysia and Indonesia: Ethnic Chinese continue to hold a disproportionate share of national wealth Generated resentment among non-Chinese i.e. Kenya, Uganda, and Fiji Indian population, brought by British, came to control a large portion of the business sector. Results: violence Appears to be ethnic Truly economic Civil Conflict in LCD’s and NIC’s Driven by economic concerns Religious differences

2nd: ethnic and religious divisions Populations are heterogeneous Power falls along ethnic and religious lines Each seeking to gain control Competes for share of public goods and other benefits for the state Fosters authoritarian rule A groups that gains control over the state may be unwilling to relinquish or share it No one group can be confident that it could dominate politics through democratic process One group “in charge” the others frozen out of the political process

Angolan state Dominated by the Ovimbundu people From the north country Make up 37% of the population Opposition is Kimbundu people From the south country 25% of the population Results: civil war Devastated country since 1975 Iraq Maj. Of pop. Is Shia sect of Islam Ruling party Ba’ath Party dominated by the Sunni members

Creation of a single national identity Divisions create problems Less inclined to see the postcolonial states as a true representation of the group Little beyond the struggle for independence Goal may become Secessionism: disaffected groups seek to create their own autonomous or wholly independent territories

Gender (social issues) Reinforced roles imposed by colonial rule with rapid urbanization and the commercialization of agriculture Favors male labor and property rights View males as a valuable addition to families Limits women’s access to important resources Education, economic advancement Leads to female infanticide India approx. 10,000 baby girls are killed each year China, Taiwan, South Korea

Sexist institutions are a result of imperialism Also brought many liberal notions of female autonomy Reconcile with more traditional cultural values Rise of Islamic Fundamentalist in many countries Supported by females: feminism is another example of foreign values Threatens to deny them their basic freedoms Education, careers, and individual autonomy

Explain differences between LCD’s and NIC’s Development = ethnic lines Uneven development, lack of mobility, and opportunity across ethnic lines Unequal relationships between women and men

Challenges of Post-Imperialism: Generating Economic Growth
B/C Imperialism Rapid changes by colonial powers Geared to suit European needs Provide specific goods Results Continued state of economic dependency Language, infrastructure, and production favor continued relationships Not good for long tern development Production of agriculture and basic goods/return finished goods Does not require highly skilled workers Does not promise large profits More unstable Subjected to factors: weather, global market I.e.: western US and saturated fats consumption SEA and imperial rule tropical oils Neocolonialism: unequal relationship, indirect form of imperialism

Breaking cycle of dependent development Greatest concern Industrial democracies dominated domestic and global markets (size, technical sophistication) Could poorer countries compete? i.e. : Soviet Union and China Rapid industrialization: find a different path built on their own conditions

Two distinct economic policies Import substitutions: based on idea that because the poorer countries cannot compete with advance industrialized democracies: state needs to create more positive conditions for the development of local industry Export-oriented industrialization: seeks to directly integrate into the global economy by concentrating on economic production that can find a niche in international markets

Import substitution LDC’s restrict imports Make them more expensive Demands for local goods go up New businesses fill the demand (could be built by state funds) Once fulfilled local demands; developed productivity capacity to compete domestically and internationally Trade barriers can be lifted

Import substitution Tariff or non tariff barriers were est. to raise price of foreign goods Reduced restrictions on patents and intellectual-property rights Allows local businesses to copy foreign made goods (i.e. pharmaceutical products) Industrialization: developed partially or full-state-owned businesses (steel and chemical) Not a liberal strategy States had to play a string role in directing their economies Led towards independence from the dominate power

Import substitution Success? Did not produce the benefits Set back economic developments “hothouse economy”: Domestic producers (subsidized by state) Initially lead to economic growth : cold blast of outside competition were kept “at bay” Dominate local market/lacking competition Less innovative and efficient than international competitors Draw money from state than generate money Created large industries dependent on the state Making losses rather than profits Became a drain

Export-oriented industrialization Not liberal economic policy Strong role for the state promoting domestic growth Used tariff barriers to protect industries in their initial stage Sought technologies and developed industries export capitalizing “production life cycle” Describes the way in which goods and technologies are diffused in international markets Innovator of a good produces it for the domestic market and exports it to the rest of the world Other countries finds ways to make the good cheaply Export own version back to the country that originated it Originator of the product has moved on to something new Seek to capitalize on the “production of life cycle” i.e. South Korea: focused on basic technologies (textiles and shoes) Automobiles

Structural adjustment programs Privatizing of state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment Open the economy and shrink the state Generate faster and more consistent growth Although LDC’s have adopted these liberal economic systems Past decade they have not reaped great benefits in terms of economic growth Permutation of neocolonial policies Misapplied in countries

Prospect for Democracy and Development
Is there a period of “great opportunity” on the horizon? Will anarchy take over these weak countries? Is freedom and equality impossible? Will these actions spread across countries? Democratic countries? How do the events of September 11, 2001 affect the world?

Prospect for Democracy and Development: Building State Capacity
Shapes both Freedom and Equality International organizations/LDC and NIC Did not pay attention to the state Caused: corruption, wastefulness, mismanagement Risky environments for entrepreneurialism, fostered kleptocratic policies, political instability, weak states Private sector and organizations promoted public good were ignored/squeezed out ef·fi·ca·cious ˌɛf ɪˈkeɪ ʃəs/ Pronunciation Key - Show Spelled Pronunciation[ef-i-key-shuh s] Pronunciation Key - Show IPA Pronunciation –adjective capable of having the desired result or effect; effective as a means, measure, remedy, etc.: The medicine is efficacious in stopping a cough.

Rolling back state power? New economic systems= increase corruption Political elite v. poor Rule of law (basic function) Requires a state that can generate and enforce institutions How does one make “good government?” Make good government: Weed out corruption Make laws that are enforced and are enforced fairly Create a state bureaucracy that has the expertise and independence to enact and enforce policy

Solutions: Clientelism/rent-seeking = meritocracy Develop entrance exams for employment Tenure system: insulates govt. admin from begin fired for political reasons Limited by inefficiency = decentralization of state bureaucracies/devolutionary policies Increase democratization within govt. admin. Increasing oversight/participation of citizens Meritocracy: rule by merit ( not personal or political connections) Example: Botswana improve state capacity and autonomy and also shows higher rates of economic growth and lower levels of corruption than most of its LDC counterparts Devolutionary: 5.the transfer of power or authority from a central government to a local government. Increasing oversight: policy formulation and implementation Involves turning more power over to the people as a whole vs. “renting” out parts of the state to a few well connected people

Solutions/reforms: Each have own difficulties and possible problems Help achieve structural change 1st step towards economic and political development “Politics and economies cannot be played effectively if the rules are not clear and clearly enforced”

Prospect for Democracy and Development: Supporting Civil Society
Development of Civil Society/ Role of the Public Organizations outside the state that help people define and advance their own interest Activism/organization Against the expansion of state power that might threaten democracy Instills democratic politics based on interaction, negotiation, consensus, and compromise LCD’s and NIC’s = weak Civil society binds people together in a society, creating a web of interest that cut across class, religion, ethnicity, or other divisions in·cul·cate (ĭn-kŭl'kāt', ĭn'kŭl-) Pronunciation Key tr.v. in·cul·cat·ed, in·cul·cat·ing, in·cul·cates To impress (something) upon the mind of another by frequent instruction or repetition; instill: inculcating sound principles.

Civil Society Weak: Divided by ethnic, religious, economic, or social boundaries Public activity viewed as an equally important component 1st step Civic education Learn their democratic rights to shape government policy Organizational skills Public is able to mobilize effectively Make voices heard Without civil society it can become enmeshed in clientellist relationships that prevent the formation of policies that serve society as a whole.

Nongovernmental Organizations (NGO”S) National and international groups Independent of the state Pursue policy objectives Foster public participation I.E. Doctors without Boarders, Amnesty international Created by advance democracies Local organizations staffed by poorer countries themselves Women play a primary role in stating and running groups Enable underrepresented segments of society to organize and expand their rights. Philippines: local organizers formed the Women’s Health Care Foundation, creating a number of clinics to provide affordable medical care and outreach. Women

NGO’s Powerful role in LCD’s and NIC’s Tackle issues Human rights Environment Gender Health Minority rights Poverty Supported by foreign aid

NGO’s Spread is a sign of a global civil society Functions beyond the limits of any one state Neocolonialism by western NGO’s Bring agendas of social, political, and economic change Blurring of domestic and international relations

Prospect for Democracy and Development: Promoting Economic Prosperity
Lack of economic development and pressing problems of poverty State driven policies Further debt Economic stagnation Promote liberal economic strategies Open market Rolling back state power Results Stimulate trade, entrepreneurialism, and growth Fears: World market would benefit by source of cheap labor, perpetuate dependent status

Need to concentrate on the people Provide policies that empower individuals economically Informal economy Not taxed or regulated by state Self employed Small enterprises (street vendors) 60% of country’s GDP (hard to measure) Women play a large role 90% work in the informal economy

Limitations of Informal economy Does not generate tax revenues Used for infrastructure and social welfare Not Subject to labor laws Not subject to state employment benefits Small and suffers from financial problems Lack of capital needed to expand Many self employed individuals must rely on loans in order to purchase the supplies or tools necessary for their businesses, yet given the small amounts of funds needed and the absences of nay collateral to secure such loans, banks are usually unwilling to extend credit to such entrepreneurs

Microcredit: System that involves not an individual lender and borrower, but borrowing groups made up of several individuals Groups serve as support and collateral Combination of business and society Results: Alleviate poverty Decrease economic vulnerability by building personal assets Assist in increasing women’s public participation and independence International aid has been channeled toward microcredit Bangladesh: Grameen Bank Loans: can be as small as a $1 the average loan is only around $100 dollars. The system of group lending and support produces extremely high rates of repayment….in turn generating new sources of revenue that can be loaned to new groups MIcrocredit groups around the world: Serving more than 23million people More than a billion people live on less than a $1 a day Hope to reach 100 million people by today

Less-Developed and Newly Industrializing Countries

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