The Fabric of Underdevelopment: Theories, Trials, and Transformations
I. Introduction
2020 was a year of loss and disaster for the whole world. Yet, some countries suffered significantly more loss than others. India for instance, suffered the most COVID-19 related deaths in the world[1]. The unsettling depths of socio-economic challenges in India, a country considered a rising economic power in Asia were brutally unmasked by the pandemic. Doctors turned soldiers but were failed by the poor healthcare system. If blame is must, it should go to the lack of central government’s ability to develop an organized strategy for managing such an emergency. However, this was only part of the problem. The real issue was the overall readiness, response and recovery capacities of the institutions and the economy. That, paired with the high population density, lack of education and widespread poverty in the unskilled sector, unleashed absolute chaos in the country. The pandemic revealed how India is miles behind being called a ‘developed country’. In contrast, Australia had a well-developed healthcare system with universal coverage. This paired with quick, organized (and strict) imposition of lockdown measures, economic resources and effective communication strategies of the government helped Australia reduce the deaths during COVID-19 significantly and contain the spread[2]. The challenge of the pandemic was the same for both countries but the unpreparedness of a developing nation in handling the crises is apparent when compared to a developed nation and this difference is what decides the magnitude of damage for any country. Such comparisons can be generally applied to many countries in the handling of COVID, wars and even internal political challenges like civil wars. To that extent, this contrast warrants a critical question: what explains the enduring underdevelopment and poverty we see in much of the world?
In his study, Paul Collier identifies a group of countries, which he calls the "bottom billion”. These are nations where a significant portion of the population lives in extreme poverty and faces various challenges that hinder their development. These countries are often characterized by political instability, economic stagnation, and conflict. He also identifies four key traps that ensnare the bottom billion: the conflict trap, the natural resource trap, the landlocked with bad neighbor’s trap, and the bad governance in a small country trap. Each of these traps presents unique challenges that make it difficult for these countries to break free from poverty[3]. Incorporating the analysis of these traps, the following section tries to break down the causes of underdevelopment and poverty and attempts to explain the complex interplay of historical, economic, political, and social factors involved.
a) Historical Legacy: The historical legacies of colonialism, slavery, and imperial rule have left a deep tragic imprint on the economies and institutions of many developing countries. In African countries for instance, the extraction of diamonds, minerals, and rubber by colonial powers left them economically dependent on a single commodity, making them vulnerable to global price fluctuations and limiting economic diversification. The lack of resources then fuels ethnic divisions further. The outcome is a legacy of economic dependence and internal instability, severely hindering development in these regions.
b) Political Instability: Corruption, weak governance, and political instability can also hinder economic development significantly. The lack of accountability and effective institutions are to blame for this. For instance, Afghanistan's lack of a powerful centralized government has restricted infrastructural development, economic growth, and services. Moreover, weak governing authority doesn't attract foreign investments which is essential to develop industries, build capacity in people and break the cycle of poverty. As a result, Afghanistan became a ‘graveyard of empires’[4] and state-building is now in the hands of an extremist organization. Similarly in Haiti, the history of political instability limits development.
c) Conflict and Violence: In many places, ongoing wars and conflict can thwart economic and social growth, leading to poverty and underdevelopment. South Sudan, Syria and Democratic Republic of Congo are all examples of the stalled development due to conflict and violence.
d) Environmental Factors: Natural disasters, climate change, and shortage of resources can also adversely impact developing nations, thereby worsening underdevelopment. The rising sea-levels impacting agriculture in Bangladesh[5], soil degradation in Sahel[6] and water scarcity in Middle East are all examples of this.
e) Population Growth: High rates of population increase in certain developing nations, including India, Bangladesh, can strain resources, overcrowd urban slums, and make it challenging to provide basic services like sanitation and economic opportunities for all.
Several theorists and scholars from varied fields have offered explanations for underdevelopment and poverty in the world. However, two most prominent and perhaps the most widely discussed theories in regard to underdevelopment are the modernization theory and dependency theory. Each of these provide different perspectives on the issue of development. According to modernization theory, underdevelopment is a necessary transitory phase that countries must through on their way to modernity and economic development. Dependency theory, which originated as a counter to modernization theory in the 1960s and 1970s, provides an alternative viewpoint on underdevelopment. It asserts that poverty in the Global South is brought on by their historical legacies and continued economic reliance on the Global North. The following section elaborates on the strengths and weaknesses of both these theories.
II. The Modernization and Dependency Debate
The argument between modernization theorists and dependence theorists’ rests on their opposing views on national development, the root causes of underdevelopment, and the most effective methods for attaining growth in both the economy and society. What follows an analysis of each of these theories.
A. Modernization Theory
In his seminal work, Seymour Martin Lipset defines the Modernization theory as a gradual, unidirectional transition from traditional to contemporary civilization[7]. He further claims that when a country's economy improves, it is inclined to adopt democracy which demonstrates a strong positive correlation between economic development and the form of governance. Lipset doesn't account for historic factors in a country because according to him, a country's economic performance is more important than historical causes. His argument here is that historical events can jeopardize any political system while economic performance stays relatively steady.
According to modernization theory, economic and social growth is linear, with Western industrialized economies acting as the paradigm for development. It contends that societies go through several stages characterized by economic expansion, industrialization, urbanization, and higher education, culminating in modernity. This theory's proponents argue that Western financial assistance, investments, and transfer of technology could accelerate this transition in developing countries.
Modernization theory remerged in the form of Washington Consensus. This set of policy proposals for economic reforms in developing nations acquired prominence in the late twentieth century, with the assumption that implementing market-oriented policies and liberalizing economies would result in economic growth and development. John Williamson, an economist who coined the phrase "Washington Consensus" in 1989, premised his ideas on modernization theory, claiming that Western-style economic and political institutions are necessary for progress[8]. Critics, however, argue that modernization theory has several shortcomings. It regularly disregards historical considerations, cultural diversity, and power dynamics, all of which play important roles in defining the growth process. Besides, a predominant racial bias exists in this theory as it believes that Western growth is the only feasible model. One look at how USA dealt with the spread of COVID-19 given the remarkable number of resources versus how Senegal, a lower middle income country with 7 doctors for every 100,000 people handled the crisis[9], is enough to withdraw support from the western model as ideal.
B. Dependency Theory
Dependency theory emphasizes the international system's fundamental imbalances and the systematic abuse of impoverished states by affluent ones. It stresses on the significance of resolving uneven power dynamics and revising economic approaches in the global context.
Andre Gunder Frank, in his widely cited work: ‘The Development of Underdevelopment’ formulates dependency theory as the idea that economic underdevelopment in certain nations is a consequence of exploitation by more advanced ones[10]. He argues that in order for less developed countries (satellite states), to advance, they must completely sever all economic ties with the West (metropolis). According to dependency theory, developing nations have been incorporated into the global economic system in a way that has perpetuated their underdevelopment. As a result of this integration, they frequently serve as suppliers of raw resources and destinations for cheap labor, while wealthier nations benefit as essential economic hubs. International institutions, large corporations, and wealthy nations' influence in politics all contribute to and reinforce this reliance. For example, institutions such as the IMF have driven certain developing nations to liberalize their economies, which further strengthens their position as the providers of low-cost resources and labor. Economic policies like export-led expansion and debt reliance could additionally isolate these countries. Latin America is an excellent example of how the negative implications of globalization, such as financial crises and trade imbalances, have entrenched the region's economic dependency and hampered its progress.
While modernization theory promotes globalization, Frank’s dependency theory is averse to it. This process of de-globalization, according to Frank, is necessary to end the exploitation of surplus encouraged by the politics of colonization. According to Frank, many nations described as poor were not fundamentally impoverished but were instead absorbed into exploitative economic relationships as part of colonialization. For instance, when the British arrived on the shores of India, the country’s share in the world economy was 23%; by the time they left, it was down to below 4%.[11] There are many similar examples that provide explanations for sustained poverty in developing countries. Frank highlights that these exploitative colonial policies did not allow these countries to undergo the classic capitalist growth stages experienced by Western countries. This worldview opposes deterministic views of history and is more aligned with Marx's materialist approach.
C. Analyzing Convincing Perspectives of Modernization and Dependency Theories
Lipset’s characterizes the modernization theory as evolutionary and rational similar to an “organism”[12]. This is a dangerous endogenic view of development, with potential to cause significant issues in translation of theory into policy. Considering this, Przeworski & Limongi[13] critique the modernization theory by arguing that the concentration of wealth in the hands of few can prove dangerous to democracy and can lead to authoritarian regimes. They highlight the need to account for exogenous historical factors such as colonization.
That said, there are aspects of modernization theory that deserve credit. This theory puts forth an interesting analysis of democracy. It states that there is never an absolute lack of democracy in any nation state, only the degrees of democracy can vary (sometimes quite significantly). Yet, from the holistic perspective, dependency theory shows more potential based on the consideration of exogenous factors which I believe, is non-negotiable for the growth of any nation. Unless the inequalities caused by the past are recognized and reversed, development in future will not sustain. Therefore, Frank's argument for a systemic difference in political and economic growth between Western nations and the global South is unquestionably an aspect of Dependency theory that must be prioritized in current development research, such as the persistence of the middle-income trap.
The disregard of historical and exogenous factors by Lipset leaves room for shortcomings in measurement and application of the theory on ground. The limited success of Jeffrey Sachs’ policies in Africa is a testament to this. Sachs ignored historical contexts in Africa and often oversimplified challenges for instance: disease eradication and healthcare initiatives[14]. This prevented his reforms from having long-term benefits such as the addressing weaknesses in the broader healthcare system. Similarly, his policies of economic liberalization opened doors for exploitation of an unprepared, domestic market[15]. Now we see China strengthening its hold in Africa which has potential to become a concern for development in African countries. While African leaders may be happy with the Chinese engagement, hoping it will result in economic development for their countries[16] but there it is not irrational to assume that China’s attraction to African natural resources may turn exploitative and counterproductive to the region’s development efforts. Afghanistan is also an important case study to examine the success of modernization theory. Afghanistan set out on the path to modernization in 20th Century, aiming to urbanize, industrialize and improve education. However, these efforts failed, and credit majorly goes to exogenic factors. US intervention weakened political institutions and aid fostered corruption. The attempt to paint Afghan society with a ‘broad brush’ was a grave error made by those in power in both Washington and Kabul[17]. When culture and people’s beliefs contradict progress, forced implementation of the western ideal does not work. UN Women Afghanistan worked for over a decade to promote education for females. What they didn’t do was incorporate the ‘purdah’ system or gender separation in schools which is a non-negotiable in that society. It was only when the US withdrew, local government fell, and Taliban took control that UN Women attempted negotiating with Taliban to promote women madrasas with quality education. By this point Taliban did not have any pressure to comply (financial or otherwise)[18] and women were conveniently banned from universities and the work force.[19] Modernization of society here, could not have happened without a striking a balance between culture and gradual but steady development.
III. Translating Theories into Development Projects: The Challenges
Developmental efforts in different parts of the world may be based on different theories but the commonality among these efforts includes the challenges policy makers face when translating these theories into developmental projects.
Before examining said challenges, it is prudent to understand what a developmental project is. Albert O. Hirschman provides an insightful and comprehensive analysis of developmental projects. Examining the motivations behind developmental projects, he argues that these projects are born out of a desire to address pressing social and economic issues, such as poverty, lack of infrastructure, or access to healthcare. He also highlights the importance of taking into account the local context and community participation in development projects[20]. This is perhaps the most important characteristic of a development project. Another characterization of developmental project that deserves a mention is Amartya Sen’s argument of ‘Development as Freedom’. In this influential book, Sen defines progress as the increase in people's freedoms and capabilities. It highlights that development programs must concentrate on boosting human capacities through access to quality education, healthcare, and participation in decision-making processes[21]. Considering these definitions, it is safe to say that Ryan Reynolds and Rob McElhenney’s takeover of AFC Wrexham is proving successful because they took into account the challenges that came with Wrexham’s history, the capacity of local community and the socio-economic context. Scholars and intellectuals do not alone impact development policy in the modern world. Politicians, actors, athletes, educators, activists, students, working women, and homemakers all have a role in defining global development policy. Beyond individuals, power, money, and fame also have a significant impact. This creates a complex web for policymakers to traverse and therefore, unfortunately, the challenges to current developmental policy are numerous and often overlap:
a) Colonial Legacies: Poverty and underdevelopment in the Global South can be explained in two phases: the first phase was colonial occupation. When the Global North experienced a dearth of resources, they sourced it from the colonies in Global South, depleted the latter’s resources and creating a vicious cycle of poverty. The second phase came in form of forced liberalization, privatization and globalization by IMF and World Bank which forced developing nations to hastily open their economies without giving them a chance to recover and prepare. This once again, reinforced the satellite-metropole relationship between the Global North and South. Developmental projects in such countries need to be fast paced and implemented on a large scale to break the cycle debt and poverty. However, this often clashes with local culture, lack of resources and regional power politics.
b) Celebrity Humanitarianism: Numerous issues can surface when Batman wants to ‘save the Congo’. Development projects or humanitarian aid efforts often become a fertile ground for PR and celebrity humanitarianism. While this is beneficial in terms of drawing attention and resources to the cause, it can often lead problems such as: oversimplification of complex Issues, limited accountability (compared to governments), dependency on personalities, policy miscalculations or backfiring due to lack of expertise and power imbalances. Besides, time constraints and need for immediate gratification can lead to a short-term focus of projects. Massive amounts of money and resources are brought on board with the promise of sustained peace and progress. While there are some celebrities who genuinely care about development, it is essential to underscore that for celebrities the return on investments is often image building. But what happens when peace is no longer profitable? The straightforward answer to this complex question is that the region suffers. Unsuccessful market-centric approaches can quickly lose media attention, critical issues that do not have economic potential may be neglected.
c) Micro-norms: When development theories translated into projects do take into account all crucial angles, they can still fail. This failure may be attributed to overlooking of micro-norms that lurk in societies like invisible viruses for development projects. Haase's work on microfinancing in Nicaragua exemplifies this in great detail, revealing how the rewards of a microfinance program created specifically for women were actually garnered by their spouses or the funds that went towards running their households[22]. While the idea of microfinance was excellent and held potential, the program failed to take into account the gender roles in running households in general.
IV. Mitigating Challenges to Development Projects
Mitigating the challenge to developmental projects can clearly be a very cumbersome task, given the scale and complexity of challenges and what is at stake. However, the recognition of the problem is the first step to a solution:
a) Recognition of the past: Countries that have suffered from foreign exploits often had their unique potentials and skills wiped out. The recognition of a place’s history and understanding who these people are, can tell a lot about their strengths. These strengths can then be used to re-build the society.
If we re-examine Jeffrey Sachs’ policies in Africa, the following is apparent:
i. Sachs’ challenge with malaria highlighted the broader social complexities of tackling infectious diseases and improving public health in resource-constrained settings.
ii. This paired with cultural diversity, ethnic conflicts and political instability exacerbated the problems.
The obvious issue here is that Sachs approach was that of an economist because of which he didn’t see culture as a problem. However, culture is “real, sticky, and slow to change”[23]. Many such issues could have been avoided if he brought with him, a team comprising of anthropologists, sociologists, political scientists, and linguistic experts to make his policies holistic.
a) Community-led solutions: Instead of imposing a set of policies invented in some other part of the world, it makes sense to develop policies suited to local context and communities. This is where local leaders can pitch in. The role of foreign partners should be restricted to guiding from experience and providing resources. What is best for local people is often known best by the local people. Capacity building also plays an important role here. For instance, in Haiti of 2012, the Global Fund to Fight AIDS, Tuberculosis, and Malaria, and the US-based Centers for Disease Control and Prevention (CDC) mass-distributed Insecticide- treated bednets (ITNs) to combat malaria in Haiti. A few years later, an observational study found no evidence of reduction in malaria due to these aid- imported ITNs3. The million pouring in aid in places like Congo have made these regions a playground for celebrity humanitarianism[24]. Places like Congo and Haiti do not need mindless western aid. Instead, they need skill development amongst the local population. The need for ITNs in Haiti could have been used as an opportunity to impart vocational skills and STEM knowledge to locals. An entire job sector could have been created for locally made ITNs. Then, even if the product itself failed, the people would still be left with skills and knowledge to mitigate similar future crises.
b) Celebrities as advocates: While celebrities can bring attention to important issues, they should be seen as advocates and allies, not as the sole solution providers. They role should primarily be that of using their reach and influence to amplify the voices of affected communities and raise awareness. Furthermore, it is necessary to establish a nonprofit sector to prevent peace and development programs from failing when rewards of corporate partnerships start thinning out and peace is no longer profitable.
c) Ethical Considerations: No region is perfect, nor is any region identical to another. It is crucial to understand the different lines that intersect that social fabric including those of religion, culture, language, race and ethnicities. One way to do this is positive discrimination to integrate of different identities in structural reforms. The distinction between equity and equality is crucial to understand here.
[1] Pašović, M. et al. (2021, November 17). Countries Hit Hardest by COVID-19. Think Global Health. URL: https://www.thinkglobalhealth.org/article/countries-hit-hardest-covid-19
[2] From personal lived experience, I was in Australia when COVID-19 hit and was myself subject to their containment measures and broader strategies.
[3] Collier, P. (2007). The Bottom Billion. Oxford University Press
[4] Murtazashvili, J. (2022). The Collapse of Afghanistan. Journal of Democracy, 33(1), 40–54.
[5] Al Jazeera. (2021, October 28). Climate crisis: How Bangladeshis are fighting rising sea levels. URL: https://www.aljazeera.com/gallery/2021/10/28/bangladesh-farmers-climate-crisis-rising-sea-levels-agriculture
[6] Doso Jnr, Stephen. (2014). Land degradation and agriculture in the Sahel of Africa: Causes, Impacts and Recommendations. Journal of Agricultural Science and Applications. 03. 67-73. 10.14511/jasa.2014.030303.
[7] Lipset, S. M. (1959). Some Social Requisites of Democracy: Economic Development and Political Legitimacy. The American Political Science Review, 53(1), 71-75. https://doi.org/10.2307/1951731
[8] Irwin, D.A. et al. (2021, September 8). What is the “Washington Consensus”?. Peterson Institute for International Economics. URL: https://www.piie.com/blogs/realtime-economic-issues-watch/what-washington-consensus?gad_source=1&gclid=Cj0KCQjwtJKqBhCaARIsAN_yS_k9BZ3ArnKBhOVfhWtsaU0qi5FnHTAMdKW4MJSLKG2xNSOvqbOCKcgaArkeEALw_wcB
[9] Chakamba, R. (2020, October 8). How Senegal has set the standard on COVID-19. Devex. https://www.devex.com/news/how-senegal-has-set-the-standard-on-covid-19-98266
[10] Frank, A. G. (1966). The Development of Underdevelopment. Monthly Review.
[11] Oxford, U. (2015, July 14). ‘Dr Shashi Tharoor MP - Britain Does Owe Reparations’ (Video). YouTube. URL: https://www.youtube.com/watch?v=f7CW7S0zxv4
[12] Lipset, S. M. (1960). Political Man: The Social Bases of Politics. Doubleday
[13] Przeworski, A., & Limongi, F. (1993). Political Regimes and Economic Growth. The Journal of Economic Perspectives, 7(3), 51–69. http://www.jstor.org/stable/2138442
[14] Munk, N. (2013). The Idealist: Jeffrey Sachs and the Quest to End Poverty. New York. Anchor Books. Pg 52
[15] Munk, N. (2013). The Idealist: Jeffrey Sachs and the Quest to End Poverty. New York. Anchor Books. Pg 121-157
[16] Hanauer et al. (2014). China in Africa: Implications of a Deepening Relationship’. RAND Corporation https://www.rand.org/pubs/research_briefs/RB9760.html
[17] Murtazashvili, J. (2022). The Collapse of Afghanistan. Journal of Democracy, 33(1), 40–54.
[18] An informal conversation with Pamela Husain, a retired senior official of UN Women Afghanistan and my close relative.
[19] BBC. (2022, December 21). Afghanistan: Taliban ban women from universities amid condemnation. URL: https://www.bbc.com/news/world-asia-64045497
[20] Hirschman, A. O. (2015). Development Projects Observed. Brookings Institution Press. http://www.jstor.org/stable/10.7864/j.ctt7zsw04
[21] Sen, A. (1999). Development as Freedom. Oxford University Press.
[22] Haase, D. (2012). Revolution, Interrupted: Gender and Microfinance in Nicaragua. Critical Sociology, 38(2), 221-240. https://doi.org/10.1177/0896920511404443
[23] Dr. Haas in 615 Seminar, Fall 2022
[24] Budabin, A. C., & Richey, L. A. (2021). Batman Saves the Congo: How Celebrities Disrupt the Politics of Development. University of Minnesota Press. https://doi.org/10.5749/j.ctv1nj351p
