Lecture 3 : Theories of IP

What is a Theory?

● an ordered set of ideas, assumptions & concepts used to explain especially of reality
○ IPE theories help explain global phenomena, or aspects of global realities
○ Highlighting links between factors & actual events/observations
○ Highlight the links between causes and effects in the international system
■ EG : why do rich states give foreign aid?
■ “To promote their own self interest in the recipient state Yeet
opening markets for their own goals”
■ “Donor states are motivated by a desire to alleviate poverty &
reduce the suffering in recipients states“

Why Theories?

1. Scholarly purposes :
○ Theories to generate coherent explanations (coherent essays) : helping to frame
debates and arguments (structural essays)
2. Policy uses :
○ systematic descriptions of phenomena / problems help to prescribe logical
interventions - policies
3. NB
○ There are always more than one possible theory to explain a particular set of
observations
○ But good theories are these that can be tested by facts & pass the test

Pos world war & development challenge

 ● emergence of former colonies; two unequal economic worlds
● Wealthy former colonisers & port former colonies
○ The challenge amongst scholars was how to advance socio economic
development of the former colonies
○ Western world was to assist pull poor countries out of misery by sharing
technology & expertise
○ Emphasis was put on technological progress, replication of economic growth to
bolster consumption

Theory of modernisation (1950s/60s)

● the leading scholar was Walt W. Rostow,3 main historical conditions

1. USA emerges as a superpower rebuilding the war torn Western Europe
2. Spread of world communist movement; Eastern Europe, China and Korea
3. There was disintegration European colonial empires, giving rise to many new
states, Third World
● Conceived at a time when the challenge facing scholars was to explain how the new
poor third world countries were to develop

Modernisation theory & development

● the world consisted of 2 components: traditional and modern

○ That differ on economic structures, values and family organisations
● Transition is equated to the process of modernisation - to be driven by the national elite -
eg. Policy makers
● Rostow identifies self-sustaining economic growth, as a unique feature “advanced”
western societies
● Achieving of self sustaining growth, was what modernism was all about
● The poor counties must embrace modernisation + or development process
○ Rostow devised five distinct stages towards self-sustaining growth or
development
Assumptions of Modernisation Theory

1. Modernisation is a phased process; 5 stages

2. Modernisation is a homogenising process - advances convergence in among societies
3. Modernisation is a Europeanisation / Americanisation process; nations with unmatched
economic prosperity & democratic stability
4. Modernisation is an unstoppable process that once started, cannot be stopped
○ Once the third world countries, are contact with the west; they will not be able to
resist modernisation

Modernisation theory: the 5 stages of economic growth

1. Traditional Society
○ driven by neo-productive religions, face technological constraints & limit
economic growth
2. The preconditions for take off
○ rational scientific ideas, replace traditional believes & new infrastructure ,
orientation to business becomes important , savings grow
3. The take off stage
○ share of net investment & national savings rise significantly (6-10%)
4. The drive to maturity
○ investment rates rise, significantly to resume driving the national economy
(10-20% of the national income)
○ Modern technology diffuses throughout the economy
5. The age of High mass consumption
○ mature self sustaining growth is achieved, generated wealth can be used to
support the welfare state , higher domestic consumption levels, or pursued of
external power - exploration etc…

Modernisation Theorists Argue that

 ● the necessary changes are not endogenous to society, it is external intrusions that shock
traditional society into change
● Failure to develop is put squarely on affected countries themselves
○ Their leaders’ bad policy choices
○ Outmoded production techniques
○ “Useless” cultural practices - non frugal tendencies etc.
■ The north & south divide, generally depicted these differences between
productive frugal attitudes vs. Outdated uneconomic behaviours
● Criticisms:
○ Theory is ahistorical, ignores power relations, existence of structural inequities,
market imperfections and exploitative relations

Summary

● modernisation is a global & irreversible process started with the Industrial Revolution in
Europe
● It is about transforming traditional societies - from the old, outmoded “ascribed” personal
attitudes that are barriers to economic & political development
● Modern societies, there’s predominance of, secular individualistic, scientific values
● Modernisation is endogenously driven process, societal change within societies will take
place in a linear way

Dependency Theory - 1950-60s

● from - economic structuralism

○ Rejects the 5 stages of the modernisation theory; societies do not have to follow
the delineated stages
● ECLAC; main proponent Raul Prebisch
 ○ Origins in the 1950s Latin American, post colonial experiences; Africa yet to
acquire independence
○ Emergence at the time when neither modernisation school nor classical Marxism
could explain third world development situation

Dependence Theory and development

● dependency hypothesises the following:

1. Development of third world necessities subordinate to the core nations
2. Periphery nations experience greater development when their ties with the core
are weakest (Great Depression & WW2)
3. When the core recovers, links with periphery nations, industrialism is stifled
4. Regions highly underdeveloped & still under traditional federal systems are those
with the closest ties to the core

Andre Gunder Frank: The Dependency Critique

● the North-South relations: resemble a case of “development underdevelopment”

○ Developing countries were never underdeveloped/ not backward
○ Many had civilisations of their own - empires, indigenous technologies,
self-sufficient, etc The great Zimbabwe, Timbuktu etc
○ “Underdevelopment” result of colonialism / exploitation by developed countries
○ Contemporary poverty & underdevelopment are a result of the past & present
skewed relations between metropolis / north & satellite states /south
● Global exploitation means: no way can a poor nation move to join a rich core nations
● Development school : focuses on global economic processes, and their negative
development effects of the third world

Conditions for the third world

 ● prebisch argued that; to create the right conditions for development
○ Control the monetary exchange rate
○ Promote direct governance role in national development
○ Crate a platform for investments, preferential role to national capital
○ Allow the entrance of external capital inline with priorities outlined in national
development plans
○ Promote effective demand as a base to support domestic industrialisation
○ Generate larger internal demand by increasing the wages, raise aggregate
demand for in internal markets
○ Embrace national strategies, import substitution, to protect national production
through quotas & tariff on imports
● both modernisation theory and dependency theory based on their assumptions and
results on the national-state
● The theory of WST & Ryan on the other hand, focus on
○ International connection among countries
■ Trade
■ Financial
■ World technology
■ Military cooperation

The modern world systems theory (MWS)

● A strand of economic structuralism, focuses on the development of the global economic

system as a unit
● The capitalism world economic system, determines the political & social relations within
& among international actors - who gets what when and how
● The world economy; is a system, a single unit of analysis
● Various of this system are functionally & structurally related
● MWS theory studies the origins, the structure & functioning of the global economic
system

Key features of the world systems theory : Emmanuel Wallerstein 1970s

 ● a single division of labour, involving states that are mutually dependent on econ change
● Divides the global economics system into three functional units/regions

● the core
○ Western Europe - post Industrial Revolution
○ Dominates the periphery states & secures inequitable exchange relations
○ Surplus money from exchanges goes to the CORE
○ Therefore, past, & present international trade arrangements are skewed in favour
of the DCs

● semi periphery
○ Dual role - exploited but they also exploit the periphery
○ Diffusing opposition for, the periphery to the core
○ Enjoy access to international banking & finance
○ Manufactures goods for export

● the periphery
○ Ownership of industrial output owned by core investment
○ “Soft governments” repatriation of profits and raw materials to core, inexpensive
labour for extracting & agriculture

The arguments : Emmanuel wallerstein

● the core states dominate the periphery through unequal exchange - buying cheap (raw
materials cheap labour) & selling expensive (finished products)
● Core - are “hard states” vs periphery states “soft states”
● Generally; politics is constraint by the economic structure
○ What can be done politically is constrained by the global economic structures
● A village is the source of wealth, enjoyed in the core states “development and
underdevelopment” are the 2 sides of the same coin