Download THE EMERGENCE OF DEVELOPMENT: HISTORICAL CONTEXT

Cold War and the Third World

Lecture: objectives
 1)
Outline the key factors that
shaped the rise of development
theories and practices in the 19451979 globalization phase.
 2)
Highlight the influence of colonial
legacies on post-1945 development
agenda.
THE RISE OF DEVELOPMENT:
HISTORICAL CONTEXT
What were historical roots of
development theories and practice?
Or what was development theorists
and policy makers responding to?
A: Crisis of global capital, 1920s and 1930s
Collapse of Global Capitalism – the Great
Depression


But also World War II
Responses:



Nation-state level: Rethinking the role of the state in
economic development.
Keynesian economic model (creation of welfare states in
Europe, Canada and in the US New Deal Policies)
Global Level: Creation of international institutions.
The Bretton Woods Conference



1944 Conference to construct post-war
international economic system.
The Bretton Woods Agreement
Creation of a liberal international economic orderfinance and trade-key feature: endorsement of
capital controls--giving nation-state power to
control movement of capital.


U.S. Treasury Secretary Henry Morgenthau “to drive
moneylenders from the temple of international finance.”
John Maynard Keynes: “Not merely as a feature of the
transition but as a permanent arrangement, the plan
accords every member government the explicit right to
control all capital movements. What used to be heresy
is now endorsed as orthodoxy!.”

Agreement on post war reconstruction of Europe
(Marshall Plan).

Created three international organizations
‘The Bretton Woods Trio’
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International Bank for Reconstruction and Development
(World Bank)
International Monetary Fund (IMF)
General Agreement on Tariffs and Trade (GATT)
B: Bi-Polar World

Bi-polar world (the Allied victory).

U.S and U.S.S.R emerge as superpowers

West- capitalist (U.S, Western Europe,
Canada and Japan)

East-centrally planned economies (Soviet
bloc).
C: Decolonization

Post-1945 (rise of nationalist struggles in
the colonies leading to independence).

West and East competition over Third
World development.

Challenges of national building and
economic development
Third World responses: Bi-Polar
World

What is the Third World (underdeveloped)

 French
economist and demographer
Alfred Sauvy, 1952.
 "The
Third World has, like the Third
Estate ("Tiers Etat" of the French
Revolution-the class of commoners),
been ignored.
Responses:
Examples:
 Bandung Conference (1955).

A
conference of Asian and African
states at Bandung in Java,
Indonesia.
 Organized
by the Non-Aligned
Movement.
 Non-aligned
bloc opposed to
colonialism and the 'imperialism' of
the superpowers.
Non-aggression.
 Respect for sovereignty.
 Non-interference in internal affairs.
 Equality.
 Peaceful co-existence were adopted.
 Alliance: West or East

Colonial legacy and post-1945
development framework.
Limits of post-1945 development
framework (as envisioned by
modernization theorists).
 Colonialism: (structural limits-global
division of labor).


countries in Latin America, Africa,
and Asia still gain two fifths or more
of export earnings from one or two
agricultural or mineral products

Colonial political arrangement:
authoritarian states.

Colonialism: formational of New Identities
(class, ethnicity, nationalism--influence
development process)