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From Tradition to Modernity: What are the Key Factors that Promote Economic Development?
In today's rapidly changing global economy, key factors drive the economic development of various countries. From the traditional agricultural society to the modern industrialization and information society, the theory and practice behind it are intertwined into the modernization process. Whether it is modernization theory, structuralism, or dependency theory, these theories all attempt to explain how society can carry out effective transformation and promote economic growth.
Development theory is a set of theories about how to achieve desirable changes in society, drawn from multiple social science disciplines and methodologies.
Modernization Theory
Modernization theory aims to analyze the process of social modernization, focusing on which national characteristics contribute to economic development and which constitute obstacles. This theory holds that development aid that targets certain characteristics can promote the modernization of "traditional" or "backward" societies. From a sociological and anthropological perspective, early tenets of this theory stem from the idea of progress, the idea that people can develop themselves and change society.
Technological progress and economic changes can lead to changes in moral and cultural values.
For example, French sociologist Emile Durkheim emphasized the interdependence between institutions in society and how they interact with the unity of culture and society. In his book "The Division of Labor in Society," he described how social order was maintained and suggested how primitive societies gradually transitioned to more advanced societies. Other contributors include David Apter and Seymour Martin Lipsey, who explore the relationship between political systems and economic development.
Structuralism
Structuralism focuses on the structural factors that hinder economic growth in developing countries. The core of this theoretical analysis lies in the transformation of the economy from an economy dominated by subsistence agriculture to the manufacturing and service industries of modern urbanization. Structuralists argue that the development of the industrial sector can only be promoted through strong government intervention in the economy, the so-called import substitution industrialization (ISI).
Structuralism believes that third world countries must promote industrialization domestically and reduce their dependence on trade with the first world.
The core logic of import substitution industrialization is to protect budding local industries and enable them to compete. The roots of structuralism can be traced to developments in Latin America, particularly in Chile, where older structural economists such as Raúl Prebish emphasized the region's specificities and unique needs.
Dependence Theory
Dependency theory is an extension of structuralist thought, advocating that developing countries continue to depend on the resources of the developing world. This theory holds that the economic vulnerability of developing countries stems from unequal treatment compared to developed countries. These countries provided natural resources and cheap labor, but failed to obtain due economic returns.
Dependency theory holds that poverty is not a problem for third world countries, but is caused by the way that country is integrated into the world system.
Basic needs and human development theory
The basic needs model is a response to existing development models and aims to define the minimum standard of resources to meet long-term physiological needs. This model emphasizes the conditions necessary for poor people to rise above the poverty line, while human development theory goes a step further and emphasizes people's capabilities and self-actualization.
Human development theory focuses on the optimal use of social capital and institutional capital to enhance the value of human capital for the entire society.
This concept led to the establishment of the Human Development Index (HDI), which became a people-centered evaluation standard that expresses the diversity and equity of development.
Sustainable development
The concept of sustainable development emphasizes that the needs of the present should not compromise the needs of future generations. In the face of issues such as global warming, the concept of sustainable development has received increasing attention, focusing on the balance between the environment, economy and socio-politics.
Sustainable development requires considering the carrying capacity of the environment during growth to promote rational resource utilization.
However, this concept also faces doubts, especially regarding the opposition between growth and environmental protection. Economists since 1460 such as Julian Simon have argued that future technological developments could solve current environmental problems, but in reality increases in human consumption often outpace improvements.
The theory and practice of economic development continue to evolve over time, presenting rich connotations and diverse perspectives. In the process of transformation between tradition and modernity, many factors interweave and influence the economic growth paths of different countries. So, how will society balance the conflict between tradition and modernity in the future to promote sustainable economic development?
