1. Cold War and the Third World Lecture: objectives 1) Outline the key factors that shaped the rise of development theories and practices in the 1945- 1979 globalization phase. 2) Highlight the influence of colonial legacies on post-1945 development agenda.

2. THE RISE OF DEVELOPMENT: HISTORICAL CONTEXT What were historical roots of development theories and practice? Or what was development theorists and policy makers responding to?

3. A: Crisis of global capital, 1920s and 1930s Collapse of Global Capitalism – the Great Depression But also World War II  Responses: Nation-state level: Rethinking the role of the state in economic development. Keynesian economic model (creation of welfare states in Europe, Canada and in the US New Deal Policies) Global Level: Creation of international institutions.

4. The Bretton Woods Conference  1944 Conference to construct post-war international economic system.  The Bretton Woods Agreement  Creation of a liberal international economic order- finance and trade-key feature: endorsement of capital controls--giving nation-state power to control movement of capital. U.S. Treasury Secretary Henry Morgenthau “to drive moneylenders from the temple of international finance.” John Maynard Keynes: “Not merely as a feature of the transition but as a permanent arrangement, the plan accords every member government the explicit right to control all capital movements. What used to be heresy is now endorsed as orthodoxy!.”

5.  Agreement on post war reconstruction of Europe (Marshall Plan).  Created three international organizations ‘The Bretton Woods Trio’ International Bank for Reconstruction and Development (World Bank) International Monetary Fund (IMF) General Agreement on Tariffs and Trade (GATT)

6. B: Bi-Polar World  Bi-polar world (the Allied victory).  U.S and U.S.S.R emerge as superpowers  West- capitalist (U.S, Western Europe, Canada and Japan)  East-centrally planned economies (Soviet bloc).

7. C: Decolonization  Post-1945 (rise of nationalist struggles in the colonies leading to independence).  West and East competition over Third World development.  Challenges of national building and economic development

8. Third World responses: Bi-Polar World  What is the Third World (underdeveloped)   French economist and demographer Alfred Sauvy, 1952.  "The Third World has, like the Third Estate ("Tiers Etat" of the French Revolution-the class of commoners), been ignored.

9. Responses:  Examples:  Bandung Conference (1955).  A conference of Asian and African states at Bandung in Java, Indonesia.  Organized by the Non-Aligned Movement.

10.  Non-aligned bloc opposed to colonialism and the 'imperialism' of the superpowers. Non-aggression. Respect for sovereignty. Non-interference in internal affairs. Equality. Peaceful co-existence were adopted.  Alliance: West or East

11. Colonial legacy and post-1945 development framework.  Limits of post-1945 development framework (as envisioned by modernization theorists).  Colonialism: (structural limits-global division of labor).  countries in Latin America, Africa, and Asia still gain two fifths or more of export earnings from one or two agricultural or mineral products

12.  Colonial political arrangement: authoritarian states.  Colonialism: formational of New Identities (class, ethnicity, nationalism--influence development process)