Critically Compare and Contrast Modernisation Theory and Neoliberalism
CrCritically Compare and Contrast Modernisation Theory and Neo-Liberalism
Introduction
The two theories which shall be compared are the modernisation theory and Neo Liberalism. The modernisation theory is a market oriented development theory which states that low income countries can develop economically if they give up their traditional ways which often can be dated back centuries and take on more modern economic principles, technologies and cultural values which comprise of an emphasis on productive investment and savings.
Neo-liberalism is the economic belief that free market forces achieved by minimising government limitations on business provide the lone route towards economic growth shifting control from the public sector into the private sector. This idea also recommends that the government restricts subsidies, change tax laws, decrease deficit spending, eliminate fixed exchange rates, curb protectionism and support deregulation. The role of the government would also be to guarantee the integrity of money. They must also set up the defence and legal structures required to protect private property rights and to ensure the proper functioning of markets. In addition, if markets in areas such as land, education, healthcare or water do not exist then action is essential by the government to create them and government intervention into these created markets must be kept to a minimum.
Main
Modernisation theory largely focuses on a type of modernisation which was considered to have derived from Europe in the 17th century which took civilisation and technological accomplishments into a new era. The idea of modernisation theory came to fruition in the 1960's by Walt Rostow who contributed the most to the theory in his book titled The Stages of Economic Growth: A Non Communist Manifesto. There were earlier expressions of the theory which surfaced in the 18th century by French philosopher Marquis de Condorcet who stated that technological advancements and economic
Introduction
The two theories which shall be compared are the modernisation theory and Neo Liberalism. The modernisation theory is a market oriented development theory which states that low income countries can develop economically if they give up their traditional ways which often can be dated back centuries and take on more modern economic principles, technologies and cultural values which comprise of an emphasis on productive investment and savings.
Neo-liberalism is the economic belief that free market forces achieved by minimising government limitations on business provide the lone route towards economic growth shifting control from the public sector into the private sector. This idea also recommends that the government restricts subsidies, change tax laws, decrease deficit spending, eliminate fixed exchange rates, curb protectionism and support deregulation. The role of the government would also be to guarantee the integrity of money. They must also set up the defence and legal structures required to protect private property rights and to ensure the proper functioning of markets. In addition, if markets in areas such as land, education, healthcare or water do not exist then action is essential by the government to create them and government intervention into these created markets must be kept to a minimum.
Main
Modernisation theory largely focuses on a type of modernisation which was considered to have derived from Europe in the 17th century which took civilisation and technological accomplishments into a new era. The idea of modernisation theory came to fruition in the 1960's by Walt Rostow who contributed the most to the theory in his book titled The Stages of Economic Growth: A Non Communist Manifesto. There were earlier expressions of the theory which surfaced in the 18th century by French philosopher Marquis de Condorcet who stated that technological advancements and economic
Bibliography: David Harvey (2005). A Brief History of Neoliberalism. Oxford: Oxford University Press. p1-4. http://www.mexicosolidarity.org/programs/alternativeeconomy/neoliberalism http://geography.about.com/od/economic-geography/a/Rostow-S-Stages-Of-Growth-Development-Model.htm http://www.globalissues.org/article/39/a-primer-on-neoliberalism http://www.mexicosolidarity.org/programs/alternativeeconomy/neoliberalism http://seanmichaelbutler.wordpress.com/2010/03/04/the-neoliberal-revolution/ http://hsozkult.geschichte.hu-berlin.de/forum/2010-12-001#note36 - the similarities, differences and historical links between the theories