Underdevelopment(Presentation Ni Os)

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    UNDERDEVELOPMENT

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    Prepared by:

    ROSE A. PERMISAARNEL ALMADRONES

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    Underdevelopment is the state of an

    organization (e.g. a country) that hasnot reached its maturity.

    It is often used to refer to economicunderdevelopment, symptoms ofwhich include lack of access to job

    opportunities, health care, drinkablewater, food, education and housing.

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    Underdevelopment is a product of

    misuse of natural and human resourceswhich will forcibly deviate regions fromeconomical expansion and avoid socialchanges needed to join human groups in an

    integrated economical system.Underdevelopment and hunger can only

    be eliminated from the face of earth through

    a global development strategy which willmobilize production means in the interest ofthe community.

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    ` The term "underdevelopment" originated in the

    mid-1950s.

    However, the term was popularized especially by

    Andre Gunder Frankin the late 1960s.

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    In October 1955, Gunnar Myrdal gave a series of lectures inCairo at the invitation of the National Bank of Egypt, laterpublished under the title Development and Under-development: A note on the Mechanism of National and

    International Economic Inequality (Cairo, 1956). A revisedversion was published as Economic Theory andUnderdeveloped people" (Duckworth, 1957).

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    OVERVIEW

    Underdevelopment takes place when resourcesare not used to their full socio-economic potential,with the result that local or regional development isslower in most cases than it should be. Furthermore,

    it results from the complex interplay of internal andexternal factors that allow less developed countriesonly a lop-sided development progression.

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    Underdeveloped nations are characterized by a widedisparity between their rich and poor populations, and

    an unhealthy balance of trade.

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    The world consists of a group of rich nations and alarge number of poor nations. It is usually held thateconomic development takes place in a series of

    capitalist stages and that todays underdevelopedcountries are still in a stage of history through whichthe now developed countries passed long ago. Thecountries that are now fully developed have neverbeen underdeveloped in the first place, though theymight have been undeveloped.

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    11AFRICAAFRICA

    Second-largest continent on theplanet

    More than 800 million people livingin fifty-four countries

    With a total land area of more than30,221,532 km2 (11,668,598.7 sq mi),

    Africa accounts for 20% of the landon the planet; its population accountsfor one-seventh of the population ofearth

    The most underdeveloped continent

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    Historically, there has been adeficiency of information anddependable statistics about

    Afghanistan's economy.The 1979 Soviet invasion andconsequent civil wardestroyed muchof the country's limited transportationinfrastructure.and disrupted normal patterns of

    economic activity.Gross domestic product had fallensignificantly because of loss of laborand capital and disruption of tradeand transport. Continuing internal conflictdisadvantaged both domestic effortsat reconstruction as well asinternational aid efforts. The countrytoday however is beginning to makesome progress.

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    SOUTH AFRICASOUTH AFRICA 13

    It is argued that SouthAfricas dualist qualities of a 1st& 2nd economy. The 1st (wealth

    producing sector) being one that isintegrated in the global economythrough modern industrialization,mining, agricultural & financialservices, and the 2nd a structuralmanifestation of poverty,underdevelopment &marginalization. With indicatorssuch as GDP/capita at PPP of $11

    240 in 2001, placing it as one the50th wealthiest countries in theworld , and on the other hand socialindicators that rank it 111th in termsof HDI for the same year.

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    Some of the causality of the underdevelopment is

    attributed to the institutionalized apartheid practices inSouth African politics, society and economics. Thereforms that were introduced in 1994, have furthered theincrease of inequality and uneven wealth distribution in

    the nation. 14

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    Underdevelopment:

    Its View as Economic Deprivation

    A.P. Thirwall, (1974) elaborated the concept ofunderdevelopment by giving the following

    characteristics common to less-developedcountries:

    1. High proportion of the labor force engaged inagriculture with low agricultural productivity.

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    2. High proportion of domestic expenditure on food

    necessities;3. An export trade dominated by primary products;

    4. An import trade dominated by manufacturedgoods;

    5. Labor-intensive technology;6. High birth rates coupled with falling death rates;

    and

    7. Savings undertaken by small percentage of the

    population

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    Valdepenas (1970)

    Described this phenomenon as having low

    standards of living characterized by:

    1. Malnourished people

    2. At least 25% of all households live in dilapidateddwellings

    3. Poor water supply

    4. Unavailable electrical services

    5. One-third of the entire population have no toiletfacilities

    6. One-fifth of the farm population had never goneto school.

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    A. MODERNIZATION THEORY

    ` Modernization theory is a socio-economic theory,

    also known as the Development theory. Thishighlights the positive role played by the developedworld in modernizing and facilitating sustainabledevelopment in underdeveloped nations. It is often

    contrasted withD

    ependency theory.

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    1) Identification of types of societies, andexplanation of how those designated asmodernized or relatively modernized differ fromothers;

    2) Specification of how societies becomemodernized, comparing factors that are more orless conducive to transformation.

    3) Generalizations about how the parts of a

    modernized society fit together, involvingcomparisons of stages of modernization andtypes of modernized societies with clarity aboutprospects for further modernization.

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    Dependency Theory is the body of theories byvarious intellectuals, both from the Third World andthe First World, that suggest that the wealthy nationsof the world need a peripheral group of poorer states

    in order to remain wealthy.Dependency theory states that the poverty of the

    countries in the periphery is not because they are notintegrated into the world system, but because of how

    they are integrated into the system.

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    These poor nations provide : natural resources

    cheap labor,

    a destination for obsolete technology, and

    markets to the wealthy nations, without which they could not havethe standard of living they enjoy.

    First world nations actively, but not necessarily consciously, perpetuate

    a state of dependency through various policies and initiatives.

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    This state of dependency are :a) Multifaceted involving economics,

    b) Media control,c) Politics,

    d) Banking and Finance,

    e) Education,

    f) Sports and all aspects of human resourcedevelopment.

    Any attempt by the dependent nations to resist the

    influences of dependency could result in economicsanctions and/or military invasion and control. This israre, however, and dependency is enforced far more bythe wealthy nations setting the rules of internationaltrade and commerce.

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    ` Dependency theory first emerged in the 1950s,

    ` Advocated byRaul Prebisch whose research foundthat the wealth of poor nations tended to decrease

    when the wealth of rich nations increased.

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    The theory quickly divided into diverse schools. Some,

    most notablyAndre Gunder Frank, adapted it to

    Marxism. "Standard" dependency theory differs sharply

    from Marxism, however, arguing against

    internationalism and any hope of progress in less

    developed nations towards industrialization and a

    liberating revolution.

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    The American sociologist Immanuel

    Wallerstein refined the Marxist aspect of

    the theory, and called it the "world

    system."

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    Former Brazilian PresidentFernandoHenrique Cardoso wrote extensively on

    dependency theory while in political

    exile.

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    According to Theotonio Dos Santos a Brazilian social scientist,

    dependence means a situation in which certain countries economies are

    conditioned by the development & expansion of another to which the

    former is subject.He goes on to further clarify that the interdependence of two or

    more economies, and consequently world trade, assumes the form of

    dependence when dominant countries can create dependency only as a

    reflection of that expansion, which can have a negative effect on the

    subordinates immediate economy. 26

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    Underdevelopment is not lack of or insufficient

    development, as many people tend to think. It

    is a product or subproduct of development.Underdevelopment derives inevitably from the

    colonial or neo-colonial forms of economical

    exploitation which still imposes itself in many

    regions of our planet.

    CONCLUSIONCONCLUSION

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    THANK YOU!