Developing Countries Developing World

What are the causes of poverty and wealth? Developing Countries intro What are the causes of poverty and wealth?

Mini Case Study Developing Countries Uganda - 2014 President Robert Mugabe has been in power since 1980. Elections are not competitive Zimbabwe should profit off of its tremendous diamond resources. Mining rights given to those in power. Shares in diamond mining corporation are given to members of Mugabe’s secret police Profits from diamonds are used to prevent political competition Other states have pressured him to step down & even embargoed, but China does not care. How did Mugabe amass so much political control?

Freedom & Equality in the Developing World

Middle Income Countries Developing Countries Middle Income Countries Middle Income Countries Some “Third World” countries experienced growth & democratization Also called newly industrializing countries In recent decades they’ve undergone rapid development & tend toward political and social stability Moving toward being “developed democracies”

Lower Income Countries Developing Countries Lower Income Countries Lower Income Countries Economic and political structures have remained weak World Bank classifies them as lower than $4000 per capita GDP at PPP Also called developing countries As a group they are growing increasingly dissimilar, so hard to categorize

Developing Countries Developing Countries Developing Countries Lower and Middle Income countries Share a legacy of colonialism and imperialism, belonging to empires Imperialism rapidly transformed economic, political, and social institutions Changes from imperialism are not easily unmade

Imperialism & Colonialism Developing World

The means of consolidating an empire Developing Countries Colonialism Empires Single political authorities that have a large number of external regions, territories, and different people under their sovereignty Colonialism Indicates physical occupation of a foreign territory through military force The means of consolidating an empire

Modern imperialism dates from the 15th century European exploiration Developing Countries Imperialism Imperialism State extends its power to control territory, resources, and people beyond its own original borders Modern imperialism dates from the 15th century European exploiration Driven by economic motives but also cultural motives – that Christianity & Western culture needed to be brought to the rest of the world Main objective is to use power to transform the institutions to meet an ideological goal

Imperialism Developing Countries Imperialism Is a system in which a state extends its power beyond its borders to control other peoples and territories Was propagated by European powers from the 16th to 21st century Driven by economic, strategic, competitive, and religious motives Often led to colonialism, the physical occupation of foreign territories

Developing Countries Imperialism Imperialism Time line p 484

Institutions of Imperialism Developing World

Developing Countries Exporting the State State building First effect was to transfer the “modern state” to the rest of the world New territories were incorporated into existing European state structures Borders of new states reflected the shape of colonial ambitions In new territories, bureaucratic structures were developed in order to control and “civilize” the local populations There were both positive & negative effects

Developing Countries Exporting the State Common results of State building National language Police and military organizations Taxing & legal systems Infrastructure including schools & hospitals Differing levels of local autonomy

Developing Countries Social Identity Society New ethnic & national identities developed Ethnic identities helped occupying powers structure their control Nationalism eventually led to instability in many occupied territories Tended to change gender roles in most places toward more Western concepts of women’s rights & roles

Developing Countries Dependent Development Economic Changes Replaced agricultural economies with industrializing capitalist ones Barter was replaced with money as a means to pay for labor Free trade did not exist for colonies – had to buy & sell within the empire Production was organized around what was not readily available in the home country Local economies were rebuilt around commodities from the natural environment

Developing Countries Dependent Development Economic Changes Businesses were built to oversee the production, leading to monopolies Infrastructure built around economic needs of home country Colonies saw urbanization – but in areas best for home countries Created an uneasy mixture of indigenous and foreign structures End of Imperialism did not lead to end of problems for developing world Imperialism led to new identities and new conflicts

Challenges of Post-Imperialism Developing World

Developing Countries Building Capacity Capacity Developing countries are frequently unable to perform basic tasks Likely an absence of a professional bureaucracy Bureaucracy is likely used for patronage, leading to lack of expertise Civil servants are part of a system of clientelism

Developing Countries Building Autonomy Autonomy States are largely captured by a patrimonial system People see state as a resource to be exploited instead of a tool for achieving national policy Cant be autonomous because too many people rely on state Autonomy also challenged by international factors

Developing Countries Capacity & Autonomy Results Unlikely to be able to establish rule of law Freedom threatened by unpredictability – which hurts economic development Wealth flows primarily to those who control the state Military is likely to be the institution with most capacity and autonomy

Developing Countries Collective Identity Building National Identity Imperial group divisions have lasting economic implications Ethnic & Religious divisions complicate national politics Patrimonialism tends to develop where one group dominates the state while freezing other groups out of the process

Sovereignty is compromised by external factors Developing Countries Challenges Main Challenges Absence of professional bureaucracy after foreign imperial bureaucrats leave Too much clientelism and corruption in handling of state jobs and revenue Sovereignty is compromised by external factors

Former colonies struggle to break this cycle Developing Countries Generating Growth Neocolonialism Indirect form of imperialism in which powerful countries overly influence the economies of weaker countries Former colonies struggle to break this cycle

Developing Countries Generating Growth Import Substitution Based on mercantilism, state uses tariffs & barriers to restrict imports. Meanwhile promoting domestic production – which often leads to state owned industries Import Substitution Based on mercantilism, state uses tariffs & barriers to protect domestic industries that have a niche in the international market – leads to higher development Export Oriented Industrialization Based on liberalism, state opens up economy & reduces involvement, foreign investment is encouraged – often fails to lead to substantial development Structural Adjustment

Puzzles & Prospects for Development & Democracy Developing World

Forging national identity is complicated by national borders Developing Countries Borders Ethnic Divisions Deep ethnic divisions correlate with higher political & economic instability Forging national identity is complicated by national borders They exacerbate divisions by dividing ethnic/religious groups across borders They may put multiple groups inside borders leading to domination by one group

Developing Countries Resources Resource Trap Countries with natural resources are hindered from political & economic development The state or political actors rely on these and effectively ignore public demands or needs Further polarizes problems with ethnic divisions when one group controls the resources

Developing Countries Governing Making the State Effective State must be able to establish sovereignty & develop public goods Must be able to resist corruption Must allow for transfer of power between governments over time

Mini Case Study: Asia Vs. Latin America Developing World

Different Paths in Africa Case Study Asia / Latin America Different Paths in Africa What role did direct foreign investment in Latin America versus state investment in Asia play in the regions’ differing paths? How did the legacy of colonialism and its institutions affect Latin America’s industrial development? How did concerns about communism influence both Asian countries’ relationship with the United States and their own approach to land reform?

Wrap Up States

Main Ideas Political Violence Remember this… OR ELSE Reasons democracy doesn’t develop Types of authoritarian regimes Corporatism & clientelism totalitarianism Remember this… OR ELSE