Basic Assumptions of Modernisation Theory Sample Clauses

Basic Assumptions of Modernisation Theory. Modernisation Theory was the first of the two grand theories explaining underdevelopment. The theory came up in the 1950s and 1960s and was among others supported by the US economist Xxxxxx (cp. Winter, 2006). Reasons for underdevelopment, according to Modernisation Theory, are merely found on domestic factors, paying little attention to external factors and issues. The developing countries are underdeveloped because they could not free themselves out of the ties of their traditions. In other words: they must become, think, act, produce, and consume like ‘the western world’ (cp. Xxxxxxxx, 2004; p. 214) to become a developed nation. Modernisation Theory sees the development of countries as a process of imitation and assimilation of the non-developed societies to the developed, western, and industrialised societies. During this process which is started up from outside traditional values, ways of thinking and behaviour as well as social structures become dynamic and modernised (cp. Xxxxxx, 2002; p. 550). Especially the positive role played in this process by the developed world is highlighted. As the shortage of capital was seen as the major problem of development, this had to be tackled on two fronts. “Firstly, savings as a proportion of GNP had to be increased. As the ‘propensity to save’ was thought to be highest among the rich, gross inequalities were justified on the grounds that they facilitated savings. Secondly, as less developed countries were thought unlikely to generate sufficient capital internally, foreign capital needed to be mobilised for inward investment along the lines of the famous Xxxxxxxx Plan which helped rebuild the war-torn economies of Western Europe” (World Socialist Movement, 1997). Nuschler isolates some explanations for the stagnation at some places and the progresses made at other places. Looking behind the ideological chaos, the following implicitness become visible: • The transformation from agro-societies, which are mostly subsistence economies, into industrialised societies, requires an extensive alteration of the social structures, a new set-up of production, labour and distribution. The industrialised production process postulates a rationalisation of labour and time, the acquirement of knowledge and technical skills. • The ability of accumulation requires the will to save and invest as well as the firmness to acquire a surplus instead of treasures. Corruption and capital flight are poison for self- contained development. •...
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