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Theoretical Approaches: BBA 261B Elective Session
Theoretical Approaches: BBA 261B Elective Session
BBA 261B
Elective Session
Theoretical Approaches
• Types of approaches:
• Modernization Theory
• Dependency Theory
• Neo-Liberalism Theory
• Environmentalism
• Gandhi and Schumacher
Modernisation Theory
• Emerged in the 1950s
• Concentration on development of North American
and Western European industrial societies.
• Has cultural, political and economic component –
development dependent on importing technology &
numerous socio-political factors.
Core idea of the theory:
• "societies develop in fairly predictable stages through which
they become increasingly complex”
Modernisation Theory
• Theory formulated by European social scientists
during the mid 20th century.
• After analyzing centuries of North American and
Western European history, positive changes during the
time were observed.
• The result was a theory developed connecting
industrialization, urbanization, bureaucracy, rationality,
mass consumption and more importantly democracy.
• During this process, pre-modern or traditional societies
evolve into the contemporary Western societies that
we know today.
Modernisation Theory
• Democratic political institutions are bolstered
by increase in availability of formal schooling
and mass media.
• This process results in sophisticated and
accessible communication, transportation,
mobilization of population and them being
urbanized.
• The importance of the individual in economic
and social life intensifies.
Modernisation Theory
• Complexity in division of labor in society
leading to bureaucratic organizations.
• Impact of religion declines due to
scientific and technological rationality.
• Rise of cash driven markets through
which goods and services are exchanged.
• Note* - Speaks of capitalist economies
Modernisation Theory
• Due to its validation in Western academic
circles, the theory has been debated to be
used in countries all over the world that are
labelled as undeveloped.
• The core argument is that scientific progress,
technological development and rationality,
mobility, and economic growth are good
things and are to be constantly aimed for .
Modernization Theory
• Criticisms –
– People of the minority and those from non-
Western countries point out that it does not take
into consider issues such as slave labor, western
effect of colonization, land and resource theft
which provided Western Nations the resources
necessary for development
– Therefore it is said that It cannot be replicated in
other places because of this, and it should not be
replicated in this way.
Modernization Theory
• Criticisms -
– Scholars from Frankfurt School – theory
based on extreme exploitation of workers
within the capitalist system.
– Increased social alienation.
Dependency Theory
• Termed as Foreign Dependency
• Core explanation of theory
– “failure of non-industrialized countries to develop
economically despite investments made into them
from industrialized nations.”
• world economic system is highly unequal in
its distribution of power and resources due to
factors like colonialism and neo-colonialism.
Dependency Theory
• it's not a proven fact that developing
countries will eventually become
industrialized if external forces suppress
them, effectively enforcing dependency
on them for even the most basic
fundamentals of life.
Dependency Theory
• What is Colonialism and Neo-colonialism?
– Colonialism - the ability and power of industrialized and advanced
nations to take away valuable resources like labour or natural
elements and mineral from their own colonies- this era came to a
decline during WWII but it led to the neo-colonialism.
– Neo-colonialism - domination of more advanced countries over those
that are compratively less developed, including their own colonies,
through economic pressure, and through oppressive political
regimes. – can lead to developing nations being suppressed by
developed nations through finance and capitalism
• Criticism of Neo-Colonialism - developing nations can be quite indebted
to developed nations they don’t have a fair chance of escaping that
debt and moving forward.
Dependency Theory
• When did this theory face high
acceptance and why?
– Highly popular among academicians in
mind-late 20th century due to rise of global
markets.
CIA - Questions
• Pick a nation/country and explain how
it’s poverty has or has not been affected
by dependency effect.