Definition of development & Underdevelopment
Theories of Development
a) Modernization theory
b) Dependency theory
c) Participation theory
d) Marxist thought of Development
Conclusion
References
Choosing the Right CBSE School A Comprehensive Guide for Parents
Assignment on development and undevelopment theory
1. 1
Assignment on
Development and Underdevelopment theory
Course title: Introduction to Political Economy
Name Reg. no
Tahmina Ferdous Tanny 2010237017
3rd Year, 2nd semester
Department of Public Administration
SUST, Sylhet
Shahjalal University of Science and Technology, Sylhet
2. 2
Content page
Introduction
Development and under development theories are based on modernization and dependency of
third world countries and the process of exploitation and capitalization of developed countries.
The theorists describe different models and present their proposition by which stages of social
progress in developing countries can be achieved as well as the they find out the reasons why
they are being dependent on first world countries, the first world countries how they politicize
and control poor countries through their help and support in name. Dependency theory shows
how development and underdevelopment countries are linked with development. Modernization
theory shows the economic growth of development and participation theory shows citizens
involvement in development. Marxist thought of development shows relations of production.
Introduction 1
Definition of Development & Underdevelopment 2
Theories of Development 2
a) Modernization theory 2-8
b) Dependency theory 9-16
c) Participation theory 17-19
d) Marxist thought of Development 20-22
Conclusion 23
References 24
3. 3
Definition of Development
Development means change towards the betterment. It is a positive approach which can make
better for the man, for the society and for the country. It refers to the planned and calculative
change towards a terminal condition. Development is directed towards the dissatisfied conditions
to satisfied condition. Hence, development is a continuous process of change involving social,
political and administrative aspects.
Definition of underdevelopment & undevelopment
Underdevelopment refers to a situation in which resources are being actively used, but used in a
way which benefits dominant states and not the poorer states in which the resources are found.
Undevelopment refers to a condition in which resources are not being used. For example, the
European colonists viewed the North American continent as an undeveloped area: the land was
not actively cultivated on a scale consistent with its potential.
Theory of development
Modernization theory Dependency theory Participation theory
Economic
Social
Political
Modernization theory
Modernization theory is a theory used to explain the process of modernization within societies.
The theory focuses at the internal factors of a country while assuming that, with assistance,
"traditional" countries can be brought to development in the same manner as developed countries
have. Modernization theory attempts to identify the social variables for social progress and
4. 4
development of societies. Modernization theory not only stresses the process of change but also
the responses to that change. It also looks at internal dynamics while referring to social and
cultural structures and the adaptation of new technologies.
Origin of modernization theory
The basic principles of modernization can be derived from the Idea of Progress, which emerged
in the 18th century with the idea that people themselves could develop and change their society.
French philosopher Marquis de Condorcet developed the concept that technological
advancements and economical changes can enable changes in moral and cultural values.
Major proposition of Modernization theory
It encourages technological processes which help to control over their environments and
eventually spur social progress.
It looks at internal dynamics while referring to social and cultural structures.
It developed the idea of social evolution which indicates how societies and cultures
develop over time. Societies progress through several stages generally starting at a
simplistic level and then developing into a more complex level.
Societies adapt to their surrounding environments, but they interact with other societies
which further contribute to their progress and development.
Economic theory of Modernization
There are various development theories of modernization in case of economic development.
According to economic perspective, the theory of Walt Whitman Rostow (W.W. Rostow) and
W. Arther Lewis is most important in economic development.
W.W. Rostow’s Stages of Growth model
The Rostow's Stages of Growth model is one of the major historical models of economic growth.
It was published in 1960 at the height of the Cold War and with the subtitle "A Non-Communist
Manifesto”. He distinguishes the model into five stages of growth. Through five stages how
society’s growth is done is shown by the following figure
5. 5
The traditional society
The pre-condition for take-off.
The take-off.
The drive to maturity.
The age of high-mass consumption.
Figure: Rostow’s five stages of economic growth
Source: http://en.wikipedia.org/wiki/Rostow's_stages_of_growth
The traditional society: Traditional society refers to a society characterized by an orientation to
the past, not the future, with a predominant role for custom and habit. A traditional society has
been defined as one whose structure is developed within limited production function where the
existence of science & technology is less.
The drive to maturity
The take-off
The pre-condition for take-
off
The traditional society
Presence of science &
technology.
Ex. Srilanka
The society is ready for
development.
Ex. India
Ex
Age of high progress
Ex. Malaysia
Sustained economic growth
Ex. United Kingdom
Absence of science &
technology but presence of
agriculture
Ex. Ethopia
The age of high-mass
consumption
6. 6
Features
Social structure of such societies is hierarchical.
Political power is concentrated in the hands of the landed aristocracy.
More than 75% of the working population was engaged in agriculture.
Limited technology.
A static or 'rigid' society: lack of class or individual economic mobility, with stability
prioritized and change seen negatively.
The features do not mean that the progress of these societies is slow but the fact is that these
societies can have economic progress through regular and systematic use of modern tools
techniques and technology.
The pre-condition for take-off: A society begins to develop manufacturing, and a more
national/international, as opposed to regional, outlook. The second stage is a transitional era in
which the pre-condition for sustained growth is created slowly in Britain and Western Europe,
form the end of the 15th and the beginning of the 16th centuries, when the mediaeval age ended
and the modern age began.
Conditions for transition: There are three important dimensions in this transition towards
growth. These are shift from an agrarian to an industrial or manufacturing society begins, albeit
slowly. Secondly, trade and other commercial activities of the nation broaden the market's reach
not only to neighboring areas but also to far-flung regions, creating international markets. Lastly,
the surplus attained should not be wasted on the conspicuous consumption of the land owners or
the state, but should be spent on the development of industries, infrastructure.
Source: http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit"
Rostow's Stages of Economic Growth and Development_files/Rostow's Stages of Economic
Growth and Development.htm
Features
External demand for raw materials initiates economic change.
Development of more productive, commercial agriculture & cash crops not consumed
by producers and or largely exported.
7. 7
Widespread and enhanced investment in changes to the physical environment to
expand production (i.e. irrigation, canals, ports).
Increasing spread of technology & advances in existing technologies.
Individual social mobility begins.
The take-off: Rostow defines the take-off as an industrial revolution, tied directly to radical
changes in the methods of production. Rostow describes this stage as a short period of intensive
growth, in which industrialization begins to occur, and workers and institutions become
concentrated around a new industry.
Rostow had given the tentative take-off period of the following countries:
Country Take-off
United States 1843-1860
France 1830-1860
Japan 1878-1900
India 1952
China 1952
http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit"
Requirements for take-off
The rate of productive investment should rise from approximately 5% to over 10% of
national income or net national product.
The development of one or more substantial manufacturing sectors, with a high rate of
growth.
The existence or quick emergence of a political, social and institutional framework which
exploits the impulses to expansion in the modern sector and the potential external
economy effects of the take-off.
According to Rostow, the rapid growths of the leading sectors depend upon the presence of four
basic factors. These are -First, there must be an increase in the effective demand of their products
reducing consumption, importing capital. Second, introduction of new productive technologies
and techniques in these sectors. Third, society's increasing capacity to generate or earn enough
8. 8
capital to complete the take-off transition. Fourth, Activities in the key sector should induce a
chain of growth in other sectors of the economy that also develops rapidly.
The drive to maturity: Rostow defines it as the period when a society has effectively applied
the range of modern technology to the bulk of its resources. This stage takes place over a long
period of time, as standards of living rise, use of technology increases, and the national economy
grows and diversifies.
The structural changes in the society during this stage are in three ways:
Work force composition in the agriculture shifts from 75% of the working population to
20%. The workers acquire greater skill and their wages increase in real terms.
The character of leadership changes significantly in the industries and a high degree of
professionalism is introduced.
Environmental and health cost of industrialization is recognized and policy changes are
thus made.
During this stage a country has to decide whether the industrial power and technology it has
generated is to be used for the welfare of its people or to gain supremacy over others. This
diversity leads to reduction in poverty rate and increasing standards of living, as the society no
longer needs to sacrifice its comfort in order to build up certain sector
The age of High Mass-Consumption: Here, a country's economy flourishes in a capitalist
system, characterized by mass production and consumerism. The age of high mass consumption
refers to the period of contemporary comfort afforded many western nations, wherein consumers
concentrate on durable goods, luxurious goods. Historically, the United States is said to have
reached this stage first, followed by other western European nations, and then Japan in the 1950s.
Features
The industrial base dominates the economy. The primary sector is of greatly diminished
weight in economy & society.
9. 9
Widespread and normative consumption of high-value consumer goods (e.g.
automobiles).
Consumers typically (if not universally) have disposable income beyond all basic needs
for additional goods.
Criticism of the model
Biasness Rostow illustrates that growth of economy is achieved in capitalist system, scholars has
criticized his bias towards a western model as the only path towards development.
Illogical steps it lays out five steps through which economic development of a country is
reached, but all countries do not progress in such a linear fashion some skips steps or take
different paths.
Top-down rather than bottom up this theory can be classified as top down which emphasizes a
trickle-down modernization effect from urban industry and western influence to develop a
country but "bottom-up" development paradigm can help countries become self- sufficient
through local efforts, and urban industry is not necessary.
Model based on America His model is based on American and European history and defines
the American norm of high mass consumption to the economic development process.
Non applicable in Asia Rostows Model does not apply to the Asian and the African countries as
events in these countries are not justified in any stage of his model.
Overlapping The stages are not identifiable properly as the conditions of the take-off and pre
take-off stage are every similar and also overlap.
Growth is not automatic According to Rostow growth becomes automatic by the time it
reaches the maturity stage but Kuznets asserts that no growth can be automatic there is need for
push always.
Source: Rostow's Stages of Economic Growth and Development_files/ga.js
10. 10
Dependency theory
Dependency theory is one which states that less developed countries are poor because they allow
themselves to be exploited by the developed countries through international trade and
investment. Dependency theory is the notion that resources flow from a "periphery" of poor and
underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the
former. It is a central contention of dependency theory that poor states are impoverished and rich
ones enriched by the way poor states are integrated into the world system. In dependency theory,
the developed nations actively keep developing nations in a subservient position, often through
economic force by instituting sanctions, or by proscribing free trade policies attached to loans
granted by the World Bank or International Monetary Fund.
Periphery
Periphery Periphery
Periphery
Core
Raw materials, labor intensive
production
Periphery
Core
11. 11
Origin of Dependency theory
Dependency theory originates with two papers published in 1949 one by Hans Singer, one by Raúl
Prebisch .The theory was popular in the 1960s and 1970s as a criticism of modernization theory. The
contribution of Andre Gunder Frank (A.G. Frank), Samir Amin, Sunkel, Dos Santos in dependency
theory is remarkable.
Major propositions of dependency theory
This theory sees the world capitalist system into two words center /metropolis/ core and
satellite/ periphery/ where the developed countries like America, England, and France
etc. lie at center and developing countries like Afghanistan, Srilanka, South Africa etc. at
periphery.
Poor nations provide raw materials, natural resources, cheap labor and market at a lower
price which in turn back for higher priced finished goods.
Wealthy nations actively perpetuate a state of dependence by various means. The
influence may be through media, politics, education, culture, sports and all aspects of
human resource development ( through recruitment and training of workers)
Rich nations actively counter attempts by dependent nations to resist their influences by
means of loans, grants and/or the use of military force.
Developing nations can’t utilize their resources because of advanced technology,
investment, fund where developed nations took the scope to utilize the resources through
their technology and keep them dependent upon them and this process will continue until
the developing nations will be able to make their strong positions.
Dependency in practice
In case of any country, the urban sector becomes increasingly powerful, while the rural sector
becomes increasingly weaker. The core profits at the expense of the periphery as a result of the
movement of products and resources while the rural farmers do not get proper prices of their
commodities.
The projects taken by international donors like World Bank, IMF in developing countries have
some conditions under which their projects are implemented. For example, the consultants of
12. 12
those projects are recruited by them from the countries, who work for them. As a result, get
benefited more than their own country, and the project initiating country clearly benefits at a
personal level.
IMF (International Monetary Fund) initiated a project ‘Extended Credit Facility’ in Bangladesh
in which their conditions were to reduce subsidy in fertilizer, to increase prices of fuel and also
imposes condition on Bank Company Law. In order to get second installment of loan
government obliged to increase prices of fuel. (Prothom Alo, 4th January, 2013 & Ittefaq, 5th
December, 2012)
Dependency theory of A. G. Frank ‘Development of underdevelopment’
In the book ‘Capitalism and Under Development in North America’ Frank discussed detailed
about dependency in which he identified the main basis of dependency is metropolis-satellite
relationships.
The Development of underdevelopment which denotes that underdevelopment is not a natural
condition but an artifact created by the long history of colonial domination in third world
countries.
Basic concept of Frank’s theory
Metropolis-the industrialized area
Satellite-isolated backward areas
Periphery
(“Satellites”)
Core
“Metropolis”
Industrial Goods
Food, Raw materials
13. 13
Main features of dependency theory of A.G. Frank
In the world there exists world capitalist system. Western industrialized capitalist
countries has made metropolis center. On the other hand, agriculture based under
development countries make up satellite.
Satellite can’t be developed because they are controlled by the metropolis.
In world capitalist system no social change is possible for satellite countries because they
can’t take decision about their own matter and they don’t have self-dependent economy.
The chain of relationships does not change since sixteen century only changes in the
forms of dominance and exploitation of the satellite not changes of substance.
The satellites can’t get in the race of development because of quantitative reduction in the
growth of its productivity, output and employment.
The general people of satellites will get freedom through revolution.(Marxist Theories of
Imperialism, page, 163-170)
Hypotheses based on the metropolis-satellite model
1. In contrast to the development of the world metropolis, which is no one’s satellite the
development of national and other sub ordinate metropolises is limited by their satellite
statutes.
2. Satellites got their greatest economic development when their ties to metropolis are
weakest.
3. When the metropolis recovers from its crisis and reestablishes the satellite system, then
the previous industrialization the countries is choked off.
4. Areas that now appear to be feudal and backward were once in fact not isolated and pre
capitalist, but able to provide primary product and a large some of capital to the world
metropolises. For example, in British period the British used to took raw materials from
Indian sub-continent for their industries.
http://www.slideshare.net/christopherrice/dependency-theory
http://www.ukessays.com/essays/european-studies/frank-underdevelopment-dependency.php
14. 14
Criticism of Frank’s dependency theory
Frank’s theory had been criticized by different scholars whish are given follow-
Ernests Lallav- main weakness is he did not provide clear definition of capitalism.
F. H. Cardoso- metropolis-satellite just explained the relationship but did not mention the
way of industrialization.
Peter Evnas- he ignored the importance of state in economic development. The economy
of some third world countries is increasing.
Bill warren- He tries to prove that in 3rd world countries industrialization is occurred. It is
opposite of Frank’s statement.
John Galtrng- ‘center- periphery’ more effective than ‘metropolis-satellite’
Dependency theory of Samir Amin
Samir Amin an Egyptian economist had given the theory dependency in his book ‘Imperialism
and Unequal Development’. He used two terms ‘core’ and ‘periphery’ to describe the process of
dependency of under developed countries.
Samir Amin says that, the developing countries supply the raw materials to the developed
countries for their sustenance. Developed countries buy raw materials at low cost and use cheap
labors from the developing nations but they sell their finished good at high prices. As a result,
the per head income of core countries increase and per head income of periphery decrease.
Major proposition of Samir Amin’s theory
Centre countries are less structurally dependent than peripheral countries, and tend to
produce mainly capital goods and consumer goods. Produced goods tend to go up in price
over time, whereas raw materials stay at the same price or are unstable.
Core Periphery
Mass consumption goods Luxury goods
Capital goods Export commodities
Mechanized goods production Stagnant production
15. 15
Wages in rich countries keep up with development; those in poor countries do not
because wages in poor countries are not connected with global labor markets, and
because states in poor countries tend to suppress social movements which would win
increased wages.
The world-system functions through a division of labor among countries. Poor
‘peripheral’ countries are assigned the role of providing low-value inputs into global
processes, at below their actual value. The periphery specializes in producing primary
goods – such as agricultural crops and mined ores – which are mainly exported to the
center.
High imports of the periphery, and in long run capital imports are the consequence
of rapid urbanization, insufficient local production of food, changes in income
distribution to the benefit of the local elites, insufficient growth of and structural
imbalances in the industrial sector and the following reliance on foreign assistance.
The effects of the global market are taken to ‘distort’ production .In agriculture; peasant
production is replaced by commercial agribusiness, which depends on imported
components and export markets.
The effects of global market create stagnation and blockage. It becomes impossible in
almost all cases for a peripheral country to ‘develop’ out of its peripheral position.
Amin referred ‘low-intensity democracy’, since elected regimes have little power in
relation to the forces of global capital and therefore conditions of life. He believes we are
in a ‘hollow’ or ‘reflux’ period, in which compromise is to be expected, and the
conditions for rupture are so far absent.
Criticism of Samir Amin’s dependency theory
o According to Amin In capitalist system, core and periphery relationship creates negative
orientation and it hampers market economy. But capitalism encourages diversification
and open market economy.
o He did not emphasize human, social, cultural factors in underdevelopment analysis. But
in several underdeveloped countries this factors are responsible for development.
16. 16
o In his theory the periphery are regarded in exploited condition but actually periphery
contributing for the expansion of market.
o He told that the periphery could not come out of the circle of dependence. But if they use
their resources properly those countries can be developed.
o He did not encourage the uses of modern tools in production in periphery as they are
exported from core.
o He discourages imports of periphery as it causes unequal distribution in society.
Source: http://en.wikipedia.org/wiki/Samir_Amin
http://ceasefiremagazine.co.uk/in-theory-amin-1/
Dependency theory of David Sunkel
David Sunkel is the theorist of Chilly. The main statement of his theory is that the reason of
dependency of under developed country is the existence of multinational corporations.
Major proposition of Sunkel’s theory
Multinational corporations shift higher technique from developed to under developing.
On the other hand, they shift raw materials from under developing countries to developed
countries.
They provide technology of luxurious goods which are not necessary for under
developing countries.
Developed countries as well as capitalist countries don’t provide the technology
according to the demands of under developing countries. For example, in agriculture
based countries they don’t provide modern tools and technology because by using this
technology the countries will be self-reliant. For lacking of technology they will be
dependent on developed countries.
Multinational companies play their role as a buffer state and through their mechanism
they make the developing countries under developing.
Criticism of Sunkel’s dependency theory
He only described the role of multinational companies but international donor agencies
also play role in making dependency.
17. 17
He described the theory in negative approach.
He did not mention the techniques/ process of dependency.
Criticism of dependency theory
Dependency theory has been criticized by free-market economists such as Peter Bauer and
Martin Wolf:
Lack of competition: By preventing imports and subsidizing industries companies of
developing countries have less incentive to improve their product and try to become more
efficient in their processes, to please customers or to research something innovative.
Corruption: State-owned companies have higher rates of corruption than privately owned
companies.
Sustainability: State owned industries which rely on government support may not sustain long
in poorer countries and countries which largely depend on foreign grants.
Besides,
Lack of voluntary program: Many developing countries do not take step to come out from the
process of dependency. The elites in capital do not use their wealth in national construction
projects or literacy program rather than importing luxury automobiles or taking expensive
vacations abroad.
Forced policy: Developed nations sometimes forced poorer nations to take their policy in
exchange of their grants. In 1991, IMF forced Bangladesh to stop functioning of 17 jute mills by
identifying it as loss projects of SAP (Structural Adjustment Program) consequence.
Continuous process: Dependency process is being broadened day by day and poor countries
become poorer and the wealthy nations become wealthier because of open market economy and
capitalism.
Source: http://sp.ask.com/sh/i/a14/favicon/favicon.ico
http://en.wikipedia.org/w/index.php?title=Dependency_theory&action=edit
chrome-extension://lifbcibllhkdhoafpjfnlhfpfgnpldfl/document_iterator.js"
18. 18
Participation Theory
Theories of participation have received considerable academic attention particularly since the
early 1990’s but have been a source of debate since at least the 1960s. It deals with dimensions
of power; issues of process and capacity; and the nature of ‘community
Definition of participation
Participation is a process which provides private individuals an opportunity to influence public
decision and has long been a component of the democratic decision making process
Participation means the involvement of intended beneficiaries in the planning, design,
implementation and subsequent maintenance of the development intervention. It means that
people are mobilized, manage resources and make decisions that affect their lives’ (Price and
Mylius, 1991)
‘a social process whereby specific groups with shared needs living in a defined geographic area
actively pursue identification of their needs, take decisions and establish mechanisms to meet
these needs’ cited in (Ndekha, Hansen 2003)
‘Meaningful participation of individuals and groups at all stages of the development
process including that of initiating action.
Decision making
Participation
Development Public
Implementation
19. 19
Evolution of Participation theory
Development of participatory processes (adapted from Kelly 2001)
Era Trends in participatory processes
1950’s & 60s
Rapid industrialization and growing influence of
technological expertise; supremacy of scientific
knowledge. Chambers (1992) said that this era was
characterized by the diffusion model of adoption I
agriculture. Extension agents were involved primarily
in teaching farmers, and in the transfer of technology.
Concern expressed about ‘giving a voice to the
voiceless’ specifically the poor in developing countries
(Friere, 1972). Increasing focus on learning, adult
learning principles and group extension
1970s
Need for alternatives
Early experimentation of participatory approaches in
development. Frustration over the ineffectiveness of
externally imposed & ‘expert’ orientated forms
(Chambers 1992). Participatory Rural Appraisal (PRA)
grew out of Rapid Rural Appraisal (RRA). Change
from top-down to bottom-up; acknowledgement of the
value of local indigenous knowledge
1980s
The participation boom
The 1980s witnessed flourishing of activity,
particularly amongst non- government organizations
(NGOs) in seeking alternatives to top-down outsider
driven development. The emphasis was on
participatory appraisal and analysis in rural
communities. proliferation of participatory
methodologies, including PAR (participatory action
research) and tools such as rich pictures and venn
diagrams. The fervor about participation continued in
the early 1990s. Participation became synonymous
with ‘good’ or ‘sustainable’ in the development field
(Guijt and Shah 1998:4). As Green (1998:71)
emphasized, the popularization of participation is
dangerous, as the problems are often glossed over.
20. 20
1990s
The participation imperative
Funding bodies began demanding participatory
Processes as a condition for funding. The push for
participation stimulated a proliferation of guidebooks
and courses on ‘how to’. A growing interest in natural
resource monitoring and evaluation has led to
community involvement in these activities
Source: "http://en.wikipedia.org/w/index.php?title=Participatory_theory&action=edit"
Criticism of Participation theory
Campbell identified four constraints to participation: institutional, cultural, knowledge
and financial. The abstracts of these principles are not properly maintained.
There are limits to what participation alone can achieve in terms of equity and efficiency,
given pre-existing socioeconomic inequalities and relations of power.
Biggs and Smith have found that participatory events (such as PRA) can construct
knowledge in ways that strongly reflect existing social relations of power and gender
Devas and Grant identified that participation can be inhibited by social dynamics of
exclusion and inclusion at the community level.
Barriers to participation may include professional elitism, time and financial costs, lack
of interest and skills among proponents and planners, and uncertainty about the results of
public involvement.
Bamberger (1988) has identified the following costs of participation: Project start-up may
be delayed by negotiations with beneficiaries Participatory approaches frequently
increased the number of managerial and administrative staff required Skeptics argue that
participation places unrealistic demands on people, with more pressing demands on their
time.
Non-participatory methodologies for resource management have negative impacts for
efficiency but the damage that poor participatory methodologies do is more significant in
setting norms and expectations for future participatory methodologies.
21. 21
Besides these,
Social capital measurement problems;
Lack of sustainable land & project management
Inefficient co-ordination of disciplinary
Imperfect community participation in a practice
Marxist thought of Development
Marx determines the development of society. In order to live people must have food, clothing,
housing, and other material means of life, and to have these people must produce them, they
must work. Therefore the production of material wealth is the basis of the life and development
of any society. (Nikitin, 1966)
1. Production of material wealth it implies human labor, the means of labor, and the
objects of labor
Labor
Means of labor
Objects of labor
Labor is a purposive activity of human being directed towards the production of material wealth.
Means of labor the term used to denote all the things with the aid of which people act upon the
objects of labor and transform them. It includes the machinery and equipment, tools and
applications for production purposes.
Objects of labor everything upon which man’s labor is used. All the primary objects of labor are
available in nature. Man has to adapt them to his requirements.
2. Means of production the means of labor and the objects of labor together form the
means of production. The means of production themselves can’t produce material wealth.
The finest technical equipment is lifeless without people to use it.
3. Mode of production the mode of production does continue the unity of the productive
forces and the relations of production. These two sides interact and influence each other.
Both the sides develop in the process of the improvement of production.
22. 22
Figure: Mode of production (Nikitin, 1966)
The productive forces include the means of production created by the society, first and
foremost the instrument of labor and also the people who produce material wealth. It is people,
because of their knowledge, experiences and labor skills that set in motion the instruments of
production, who improve them, invent machines and add to their knowledge.
The relations of production the relations between people in the process of the production,
distribution and exchange of material wealth Marx called production or economic relation. The
relation determines the place people occupy in production and the methods by which the
products of labor are distributed.
Mode of Production
Means of
production
People with production
experiences & labor
skills
Forms of ownership
of means of
production
Relations of productionProductive forces
Place of classes &
social groups in
society and their
relationships
Forms of
distribution of
material wealth
23. 23
Conclusion
The theories are based on different perspective on the basis of development and
underdevelopment concept. Although each theory has some limitations but it is not judged as
wrong or irrelevant, these theories have contributions in defining how poor countries are
becoming poor day by day and rich ones are being wealthier at times. These theories describe
how world systems are running through political mechanism, capitalism, foreign aid and control,
as well as ways and strategies to overcome such situation and to become self-dependent of
developing and under developed countries.
24. 24
References
Anthony Brewer, ‘Marxist Theories of Imperialism’, A Critical Survey, Second Edition, London
& New York, pp, 163-170
Nikitin P.I, (1966) ‘The Fundamentals of Political Economy’, Progress Publishers, Moscow
Rostow's Stages of Economic Growth and Development_files/Rostow's Stages of Economic
Growth and Development.htm, Accessed on 30th October, 12.00 PM, 2013
http://en.wikipedia.org/wiki/Rostow's_stages_of_growth, Accessed on 27th October, 10.00 PM,
2013
http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit"
Accessed on 27th October, 11.00 PM, 2013
http://en.wikipedia.org/w/index.php?title=Rostow%27s_stages_of_growth&action=edit",
Accessed on 1st November, 7.30 PM, 2013
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