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Lectures 3 – 4. The Rise of Development Problem in the Global Scale. - a goal to increase a mass of exchange value and. - a necessity to diminish value of each commodity unit and to sell as many goods as possible.

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Lectures 3 – 4. The Rise of Development Problem in the Global Scale

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Lectures 3 4 the rise of development problem in the global scale l.jpg

Lectures 3 – 4. The Rise of Development Problem in the Global Scale


Slide2 l.jpg

- a goal to increase a mass of exchange value

and

- a necessity to diminish value of each commodity unit and to sell as many goods as possible

The rise of capital-function as the effect of the internal contradiction of commodity production between:


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What is Statism?

  • a social system organized around the appropriation of the economic surplus produced in society by the holders of power in the state apparatus.” … “Statism is a specific social system oriented toward the maximization of state power, while capital accumulation and social legitimacy are subordinated to such an over-arching goal.” (Castells M., 1998. The Information Age: Economy, Society and Culture. Vol. III. End of Millennium. Oxford (U.K.), Malden (Ma): Blackwell Publishers, pp. 7, 9)


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What was Cold War?

  • Samuel Huntington:“The conflict between liberal democracy and Marxism-Leninism was between ideologies which, despite their major differences, were both modern and secular and ostensibly shared ultimate goals of freedom, equality, and material well-being. … A Western democrat could carry on an intellectual debate with a Soviet Marxist. It would be impossible for him to do that with a Russian Orthodox nationalist.” [Huntington S., 1997. The Clash of Civilizations and the Remaking of World Order. New Delhi: Penguin Books India (First published by Simon & Schuster in 1996), p. 142].


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The essential features of the post-war capitalism (1)

  • Technological base:

  • mass conveyor production upon the base of rational, scientific organisation of labour and management for mass consumption;

  • the principle of rhythmical input-output (rhythm in input-output);

  • standardisation of equipment, tools and output


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The essential features of the post-war capitalism (2)

  • Big corporations and strong trade unions, oligopolistic competition;

  • Planning and the state regulation of markets for maintaining an effective demand (Keynesianism), mixed economy

  • Budget deficits and moderate inflation

  • Hard regulation of financial and banking sectors, fixed exchange currency ratios.

  • Socialist-liberal, or liberal-socialist, consensus.


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“The Stages of Economic Growth” by Walt Rostow (1960)

-Traditional society

- Transition

- Take-off

- Maturity

- Mass consumption society

- Post-industrial society (added in 1971)


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Theories of development – review in brief

  • Hans Singer (1911-2006)

  • Raúl Prebisch (1901-1986)

  • Franz Fanon (1925-1961), “Les damnés de la terre” (“The Damned”, “The Wretched of the Earth”), 1961

  • K.G. Myrdal (1898-1987): “The Asian Drama: An Inquiry into the Poverty of Nations”, vols. I – III, 1968 (German edition of 1973)

  • Aníbal Pinto Santa Cruz(1918 -1996)

  • Celso Furtado (1920-2004)


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Dependientistasand their main ideas.

  • Underdevelopment is not the stage of development but the effect of development in the global scale;

  • Dualism of society (co-existence of traditional and modern sectors) has been reproduced in the process of development;

  • Minimal contacts with the First World countries are necessary;

  • Development of capitalism cannot abolish pre-capitalist, traditional sector of economy and society because it reproduces the latter;

  • Industrialisation does not allow abolishing the external dependency.


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Andre Günder Frank (1929-2005)

  • Capitalism and Underdevelopment in Latin America: Historical Studies of Chile and Brazil (1967)

  • Latin America: Underdevelopment or Revolution. Essays on the Development of Underdevelopment and the Immediate Enemy (1969)

  • World Accumulation, 1492-1789 (1978)


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Samir Amin (born 1931)

  • L’accumulation à l’échelle mondiale: critique de la theorie du sous-développement (1971)

  • English edition: Accumulation on a World Scale: A Critique of the Theory of Underdevelopment (1974)


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Immanuel Wallerstein (born in 1930)

  • The Modern World-System, vol. I: Capitalist Agriculture and the Origins of the European World-Economy in the Sixteenth Century (1974)

  • The Modern World-System, vol. II: Mercantilism and the Consolidation of the European World-Economy, 1600-1750 (1980)

  • The Modern World-System, vol. III: The Second Great Expansion of the Capitalist World-Economy, 1730-1840's (1989)

  • Historical Capitalism, with Capitalist Civilization (1995)

  • Decline of American Power: The U.S. in a Chaotic World (2003)

  • World-Systems Analysis: An Introduction (2004)

  • European Universalism: The Rhetoric of Power (2006)


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Fernando Henrique Cardoso & Enzo Faletto

  • Dependencia y desarrollo en América Latina: Un ensayo de interpretación sociológica, México: Siglo XXI, 1969

  • Dependency and Development in Latin America. Translated by Marjory Mattingly Urguidi. Berkeley, Los Angeles, L.: University of California Press, 1978


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Searching for New Development Strategy

  • Mahbub ul-Haq (1934-1996) and the UN Development Programmes (Human Development Report).

  • Amartya Sen (born in 1933):

  • Development as Freedom (1998)


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