STRATEGIES FOR DEVELOPMENT
Issues are the impact of aid trade and tnc's (transnational corporations). There are two sociological views, both making different assumptions. Consensus theories assumes contact is good, and conflict theories see it as bad.
AID
Aid sounds good, but sometimes results in debt. Rich countries have agreed a UN agreement to devote a proportion of gdp to aid, but often fall short of targets as it's unpopular and the recipients don't vote.
The Case For Aid
- Modernisation theory says contact will be good, diffusion of western ideas and political ideas is diffusion and will help.
- Charities also try to stop poverty. There has been a move from just famine relief to projects encouraging independence.
The Case Against Aid (From The Left)
- Hayter shared Franks dependency approach, saying poverty was a result of exploitation, and that aid maintained the dependency of the satellite on the metropolis.
- Aid benefits the west, loan repayments, local food markets collapse and increase imports, it supports the elite in the receiving country.
The Case Against Aid (From The Right)
- It causes dependency and discourages investment. If aid is given, it should be tied to 'good behaviour'.
TRADE
The Case For
- More competition means more efficient production.
- Encouraging exports from poor countries allows them to pay interest, which can provide investment
- Exporting was the basis of the far east's development.
The Case Against
- Prices for exports, often of raw materials, have risen, while it's more expensive for them to import from rich countries.
- Illich added the concept of cultural imperialism to economic exploitation through unequal terms of trade. The used the term coca-colonization to describe selling a harmful western lifestyle, like arm, drugs, pesticides, and baby formula.
TRANSNATIONAL CORPORATIONS
They bring investment, training, higher incomes and better treatment due to pressure from western consumers.
Against
Profits taken abroad. TNC's encourage dependency and there is no local control.
Extra Information
It's not still wholly the case that poor nations only export raw materials. Rich countries do that to, and poor countries manufacture goods.