2.  The Concept of “Development” and “Underdevelopment”  The Reasons for Underdevelopment  The Solution? ◦ Two Classical Types of Development Strategies  Export-Oriented Growth  Import-Substituting Industrialization  New Strategies ◦ Other Alternatives?  Globalization and Development

3. The Causes for Underdevelopment The Possible Solutions for Underdevelopment Underdevelopment What are the reasons for underdevelopment and solutions to it?

4.  Economic Development ◦ Sustained growth over a time span: becoming a high-income economy  Political Development ◦ Stability of institutions that govern, within-state, state-society relations, within society relations DISCUSS: Why is the study of the issues of development important?

5. THE CRUCIAL QUESTION: Why is this so? Why are the reasons for underdevelopment of South Asia and Africa?

9.  Historical Dependency Relations: Colonialism ◦ Economic Dependency  Recall Dependency Theories (Raul Prebisch) ◦ Instability of Political Institutions  False Economic Strategies ◦ What is a false economic strategy for each IPE perspective?  Cultural Environment ◦ Does culture really matter for development? In what ways?

10. Prime Minister Pandit Nehru with Dr. Kwame Nkrumah of Ghana, President Nasser of Egypt, President Soekarno of indonesia and President Tito, of Yugoslavia at a meeting of Non-Aligned Nations, New York, October, 1960

11.  This strategy combines elements of liberal and mercantilist prescriptions for economic growth and development. ◦ Links production to international markets ◦ Protects infant manufacturing industries from foreign competition ◦ Promotes high-level of savings and investments ◦ Active role for the state ◦ Foreign investment and aid sometimes facilitates export-oriented production  http://www.pbs.org/wgbh/commandingheights/shared/video/wmp/mini_p03_09_220.html http://www.pbs.org/wgbh/commandingheights/shared/video/wmp/mini_p03_09_220.html  http://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p03_09_220.html http://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p03_09_220.html DISCUSS: What are the problems of export-oriented growth?

12.  This strategy views international trade as a potential threat to domestic producers and seeks to produce goods locally ◦ Supports domestic infant industries and domestic producers. ◦ Produces NOT for export, but mainly for local markets  http://www.pbs.org/wgbh/commandingheights/shared/video/wmp/mini_p01_10_220.html http://www.pbs.org/wgbh/commandingheights/shared/video/wmp/mini_p01_10_220.html  http://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p01_10_220.html http://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p01_10_220.html  http://www.pbs.org/wgbh/commandingheights/shared/video/wmp/mini_p02_04_220.html http://www.pbs.org/wgbh/commandingheights/shared/video/wmp/mini_p02_04_220.html  http://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p02_04_220.html http://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p02_04_220.html DISCUSS: What are the problems of import-substituting industrialization?

13.  What are the alternative strategies of development to export-oriented and impost- substitution models?

14.  What is the best development strategy: export-oriented growth, import-substituting industrialization or something else?

15.  Does globalization help development? ◦ Production and trade in developing countries ◦ The Institutions of Washington Consensus (IMF, World Bank, WTO) ◦ The Working Conditions (Sweatshops) ◦ Global Governance of Development  UNDP  UNCTAD  NGOs  Foreign aid from the developed countries