CHAPTER - II

THE PROBLEM AND CONCEPTUAL FRAMEWORK

In this chapter the general meaning of development has been

be discussed. The nature of development in the Third World

followed by development in the Arab World have also been

reviewed. The obstacles in the development of the Third

World countries, particularly in the Middle East, have also

been examined. In the end, political economy approach has

been discussed.

1. DEVELOPMENT

The notion of development is often used interchangeably with

several other terms such as 'progress' , 'advancement' ,

'modernization' and sometimes 'industrialsation.' The use of

these terms perhaps indicates that the countries which have

reached the highest degree of development are those that are

progressive, advanced, modernized and industrialized. 1

1. Jamal Al-Banna, "Development and its Derivatives", The Bulletin of Arab Labour, a special issue, Second conferenence on Manpower Development for Industry (November 1975), p. 177.

29

According to western economic thought 2 which originally

set the indicators of development in an economic context,

the term development means the transformation of a national

economy from a static into a dynamic state through an

increase in the national economic capacity in order to

achieve a substantial annual increase in the gross national

product accompanied by changes

production and in the level of

in the means~nd structure of

employment./Dependence on the

industrial and vocational sectors is increased, while

traditional activities are decreased. This implies the

change of the economic structure into an industrial

economy. 3 Therefore, an annual increase in the gross

national product and a high per capita income are taken as

the essential indicators of development.

2. W.W. Rostow, The Stages of Economic Growth: A Non Communist Manifesto (London: CUP, 1960); W.W. Rostow, "The stages of Economic Growth", The Economic History Review (August 1959); L. Curie, "The objectives of Development" World Development, vol. 6, no. 1 (1978); G. Myrdal, The Asian Drama (New York : Pantheon, 1968)

3. Khalid Al-Haamidh, "The Strategy of Industrial Development in the Arabian Gulf", a paper presented at the Seminar on the study of the Economic and Social Dimensions in the Arabian Gulf held in Baghdad. (1979), p.l.

30

A. Economic Development

Viewed narrowly and measured by limited indicators such as

gross national product and per capita income development

often implies economic development. In this sense economic

development has dictated the rules to planners and decision-

makers in the developing countries. Industrialization has

occupied a major portion of the concept of development, and

the aspirations of the developing countries have been to

follow the examples of the industrially advanced ones. 4

However, the concept of economic development itself has gone

through radical and fundamental changes in the last four

decades and has shifted to wider, socio-economically

significant perspectives. 5

Even though the economic indicators are more often used

for measuring economic development, they are not always

valid. For example, gross national product and per capita

income may indicate the general standard of living, yet they

do not accurately signify the individual standard. In most

of the Oil-producing countries of the Arabian Peninsula the

4. ibid, p.1.

5. N. Islam and G. Henault, "From GNP to Basic Needs, A Critical Review of Development and Development Administration", International Review of Administrative Sciences, no. 3 (1979), p.253.

31

per capita income is comparatively very high, yet these

countries could not be categorized as developed ones. Thus,

a higher per capita income is not a real indicator of

development or growth especially when the income is the

result of oil revenues alone and not of an increase in the

productive economic base and activities. 6 Likewise a high

rate of growth does not always indicate development unless

it is continuous and dependent on indigenous advanced

productive capacity.

B. Political Development

From a political point of view, development may means

political stability. Political development could be assessed

in terms of the stabilization and consolidation of

participatory political institutions. Where such development

takes place, the political authority is responsive to the

people; and conversely people have faith in the political

authority and, indeed, have opportunities to participate in

the political process.

6. M. Sadiq, -"Development in the Oil-producing countries of the Arabian Peninsula (OPCAP) ", a study presented at the second Annual Meeting of the Development OPCAP Forum, Bahrain, 24-26 December 1980, p.l3.

32

Significantly, political development can not be

isolated from other forms of development. Although to a

limited extent the political sphere may be autonomous from

the rest of society but sustained political development

wo u 1 d on 1 y take p 1 ace within the context of a

multidimensional process of social change. 7

C. Social Development

It has been emphasized that besides economic problems we

also have social problems. Thus the social indicators should

also be taken into consideration along with the economlc

indicators of development. For this reason it has been

suggested that development should not be measured in terms

of growth only but it should also be assessed in terms of

7. See Lucian pye "The concept of political Development", The Annals of the American Academy of political and social Sciences. March 1965, p. 1-13; Alfred Diamant, "The Nature of political Development" in Jason L. Finkle and Richard W. Gable eds. Political Development and Social change (New York: John Willey & Sons, 1968), p. 91-96; Dirk Berg-Schlosser and Rainer Seiglar, Political stability and Development: A comparative Analysis of Kenya, Tanzania. and Uganda (Boulder: Lynne Reinner Publishers, 1990), p. 21-26. Majid Khadduri, Political Trends in the Arab world ~ the Role of Ideas and Ideals in Politics (Baltimore : John Hopkins press, 1970) .

33

'social change' along with growth.8 The element of change

brings along with it the process of structural

differentiation, integration as also social disturbances in

the institutional set-ups for a new social order. 9

Development in the social perspective has been

described as an overall process of transforming man and

societies leading to a social order i~ which every human

being can achieve moral and material well-being. 10 Social

Development may also be conceived in terms of progressive

social integration. In other words, social homogenisation is

integral to development. No society can develop, if it is

fragmented into different warring groups or sectoral

cleavages; if there is social discrimination against

minority groups, where one section of society has privileges

8. S.R. Mehta, "Development, Planning and Social Theory" in S.L. Sharma ed. Development~ Socio-Cultural Dimensions (Jaipur: Rawat Publications, 1986), p.35.

9. Jan Drewniwski, "The Practical Significance of social Information", Annals of the American Academy of Political and Social Sciences (January, 1971), p. 84. see Niel J. Smelser, The Sociology of Economic Life (New Delhi: Prentice Hall of India, 1965)

10. Gerhard colm and Theodre Geiger, "Country Programming as a Guide to Development" in Robert E. Asher and others eds., Development of Emerging countries~ An Agenda for Research (Washington D.C.: Brookings Institutions, 1965), p. 47.

34

but another has social disabilities. 11

Today, there is an increasing trend toward the adoption

of a comprehensive view of development which encompasses the

economic, political, social and cultural elements

interacting with each other. Development is not confined to

economic development alone; nor is economic development

confined to industrial is at ion. In its broadest meaning,

development includes economic, social, political and other

cultural aspects. 12 It is an integrated process concerned

with all societal activities aimed at achieving human

welfare. It is the creation, liberation and orientation of

human potentials toward constructive work. It is the

discovery, improvement and maximum utilisation of all

resources in order to create a continually productive

capacity. 13

11. P. R. Dubhashi, "Development An Overview" in K.S. Shukla ed., The other side of Development~ Social -Psychological Analysis (New Delhi: Sage publications, 1987), p. 21-22.; George M. Beal and others eds., Sociological Perspective of Domestic Development (Iowa: Iowa State University Press, 1970).

12. Abdul Rahman Osama, The Dilemma of Development in the Arabian Peninsula (London: Croom Helm, 1987), p. 7.

13. M. Al-Emadi, "Horizons of Development in the Eighties", a paper presented at the Third Seminar on Horizons of Arab Development in the Eighties (Kuwait The Arab Institute for planning, January 1981), p. 195.

35

Although comprehensive development is a widely

understood concept, the definition of development is not

fixed. Development can be seen as not just the improvement

of living conditions, but also a constant target and an

ability to change, grow and advance. 14 It is a relative

issue constantly changing. Therefore, its objective is

social change according to what society needs to achieve and

what can be achieved. Since what is needed and what is

possible vary according to contextual conditions, so do the

objectives and requirements of development. Because of its

inter-relatedness, it is difficult to demarcate development

occurring in one context without repercussions in others.

Development is an intricate, integrated process taking

place within a matrix of complex and constantly interacting

relations among the political, economic, social and other

constituents of society. The significance of these

constituents, their interaction in the development process,

is determined by the prevailing social conditions and by the

level of development reached. For example, economic factor

may play a decisive role at a certain juncture in a certain

14. G. Grant, Development Administration (Madison: The University of Wisconsin Press, 1979), p.6

36

country, while political factor may become crucial at a

later phase in the same country 15

2. NATURE OF DEVELOPMENT IN THE THIRD WORLD

The development strategies so far followed by most Third

World countries have not been fruitful. The problems of

developing countries are not only confined to low level of

their per capita income. Developing countries too, are known

to have poverty, much higher level of unemployment; the

facilities of health, nutrition and education too are not

very satisfactory. As far as the growth of per capita income

is concerned, it has never been the only objective of

development policy. More attention has been paid to other

objectives which in some cases did not prove supportive in

accelerating the growth of per capita income. Unemployment

is a serious problem in developing countries, and it is

particularly severe where there is also a population

explosion. 16

Distribution of income in the Third World Countries has

been inegalitarian. Their is evidence to show that the

15. Sadiq, n. 6

16. A.P. Thirlwall. Growth and Development (London: MacMillan, 1983), p.26-27.

37

majority of vast population in the Third World has remained

unaffected by the process of growth and development. The

growth that has taken place has largely benefited a thin

population. Poverty in the rural as well as urban areas is

still widespread. Moreover, the degree of income inequality

within the developing countris has also increased.

The relation between low-income and food intake is a

two-way process Low income is a cause of malnutrition.

Malnutrition in turn is cause of low income by impairing

working capacity and thereby the productivity. Malnutrition

among children in the developing countries is especially a

serious matter since it blocks the growth and mental

development and contributes another element to the vicious

circle of poverty. Lack of proper food supply and nutrition,

combined with poor health facilities leads to low life­

expectancy and a high incidence of infant and child

mortality.

Literacy and education are important factors in the

development process. While there has been a major

improvement in the literacy rate in most developing

countries over the last couple of decades because of

increasing population this rate has been surpassed by that

of illiteracy. Barring few very poor countries, most

38

children now have access to some form of primary education,

but the drop-out rate even from primary schools ln many

countries is quite high. Higher education is still a

privilege of few in the Third World. 17

It has been observed that the concept of social

development is more comprehensive than economic development.

One reason for this is that the former aims at the

achievement of certain wider social objectives and ideals.

The picture of social development which has taken place ln

the developing countries is not as much encouraging as lS

desirable. The developing societies are still facing the

spectre of poverty on a mass level and poverty is not the

only problem; it has several interrelated problems. The

elite of these countries, who are the trend setters and

examples for the lower strata of society, initate and adopt

the international styles of high living. Hence, despite

their poverty, these societies also latently cherish

consumerism and promote it wherever it is possible. This

distorted perspective leads to biased priorities in

development planning. Individual consumption for the few

often takes precedence over investment in social services

17. ibid, p.43

39

for the many. For example, production of luxury cars, owned

and operated individually, subsequently leads to giving low

priority to the production of buses for mass transport.

Highly prestigious hospitals have come up and only a few

rich and privileged people can afford them. New ways are

found to distinguish status differences. In this way, a

false world of conspicuous consumption prospers, dazzling

the masses in the process. 18

On the political front in many Third World countries,

a small elite section takes major decisions in regard to the

present and the future while the majority has little or no

say. The institutional structure of society grants them

limited freedom in chalking out strategies for their

futures. Many Third World countries are under authoritarian

and rep r e s s i v e reg i me s ; some have only namesake

democracies. 19

The development process, throughout the world, has not

given due importance to the preservation of environment.

This has had side effects. History is witness that some

18. S.C. Dubey, Modernization and Development ~ The Search for Alternative Paradigms (New Delhi: Vistaar Publications, 1988), p.SO

19. ibid, p. 63.

40

civilizations have been wiped out because of their reckless

exploitation of the environment. A mistaken concept has

developed in most Third World countries that because of

their low level of industrialization, they do not face any

significant environmental problem. 20 Time has proved that

this is not true. Environmental problems are taking a grave

shape in the developing countries today.

Development-action that alters the environment so that

it caters more effectively for human needs -- is essential

if the world is to be free from poverty and squalor, but

then such development must be based on resources that

regenerate naturally and can meet our needs indefinitely.

Destruction of tomorrow's foundations in order to satisfy

today's needs is a self-evident folly. 21

Several developing countries hired international

expertise for policy-making but many of their ideas could

not take root in the new cultural soil. It is said that

their services are part of a package deal and they are under

constraints to safeguard the terms and conditions of the aid

20. ibid, p. 63.

21. D. Michail Warren, et al, eds., The Cultural Dimension of Development: Indigenous Knowledge Systems (London: Intermediate Technology Publications Ltd., 1995), p. 445

41

giving countries. 22 On the contrary, native planners pretty

often neglecting the challenges of their social reality,

tried to follow the models borrowed from developed

countries.

A. Obstacles in the Third World Development

The majority of the Third World States have weak economic

structures characterised by a high proportion of population

em p l o y e d i n t he p r i m a r y s e c t o r , l ow a g r i c u l t u r a l

productivity, fragmentary industrialisation, limited

application of technology, limited purchasing power,

overdependence on a small number of export cash crops which

place the economy at risk from fluctuations in world prices

and terms of trade, dependence on foreign investment capital

and on imports of capital goods such as machinery and

extraction of profits by foreign multinational companies. 23

In addition to these, the Third World Countries also have

the weakness of work ethic; the low level of economic

motivation, the general weakness of propensity to save,

22. See Guy Arnold, Aid and the Third World: The North/South Divide (London: Robert Royce Ltd., 1985).

23. Michael Pacione ed., The Geography of the Third World: Progress and Prospect (London: Routledge, 1988), p.1-2.

42

clogged economic mobility, rigidities is market structure,

an antiquated and inefficient land reforms. 24

In most of the Third World Countries, there is an elite

group which is separated by a diminutive and under-

represented middle class from a massive and increasingly

impoverished and dispossessed proletariat, both urban and

rural. 25 Under such circumstances, political elites

frequently exhibit a close relationship with social elites

and members of these groups often come from the same

families. Moreover, Nepotism, dictatorial rule, corruption,

repression, violence, maladministration are inflicted in

majority of the Third World Countries. 26 In many oil-rich

Th i r d W o r 1 d Count r i e s , a form of "Bureaucratic-

authoritarianism" pertains, in which the state uses the

revenues obtained from oil to provide itself with inordinate

power. This offers the state a large measure of patronage

and control to maintain its own position and that of its

24. Yusif A. Sayigh, Elusive Development: from Dependence to Self-Reliance in the Arab Region (London: Routledge, 1991) 1 p.4-5.

25. Pacione, n.23, p.282-83.

26. See A. Gilbert and J.Gugler J., Cities, Poverty and Development: Urbanization in the Third World (London: Oxford University Press, 1982) i R. Sandbrook, The Politics of Africa's Economic Stagnation (Cambridge: Cambridge University Press, 1985)

43

ruling groups.2 7

In addition to aforesaid hurdles, political

participation in most of the Third World Countries is

nominal. Besides this, right to uncensored information,

freedom of speech and the provision of organising trade

unions and political parties too are not available.

Finally, growing socio-economic disparities ---" ctllU

imbalances resulted in widening class cleavages, unregulated

urbanisation, ethnic differences, social stratification,

social hierarchy on the basis of inherited status or

sectarian grounds rather than personal achievement, clogged

social mobility, etc. are the features of the Third World

Countries. These hinder the development of the developing

countries. 28

27. A. Gilbert and P. Healey, The Political Economy of Land: Urban Development in an Oil Economy (Aldershot: Gower, 1985). See William Loehr and John P. Powelson eds., Economic Development, Poverty, and Income Distribution (Boulder: Westview Press, 1977).

28. See Pradip K. Ghosh ed., Development Co-operation and Third World Development (London: Greenwood Press, 1984) See also E.S. Simpson, The Developing World: An Introduction (New York: Longman Scientific & Technical, 1987); K.S. Shukla ed., n.11.

44

3. DEVELOPMENT IN THE ARAB REGION

It is essential to mention that development cannot take

place overnight; rather it is a long and time-taking

process. Furthermore, money cannot buy development. In most

of the Arab countries one can see the improved quality of

the basic amenities of life : food, health services, rising

life expectancy, housing, educational and training

facilities, roads, means of communication and transport,

electricity ahd piped water, and well-equipped buildings,

etc. But development includes many other objectives

mentioned in the following paragraph:

Development should not be limited to the satisfaction of basic needs. There are other needs, other goals, and other values. Development includes freedom of expression and impression, the right to give and to receive ideas and stimulus. There is a deep social need to participate in shaping the basis of one's own existence, and to make some contribution to the fashioning of the world's future. Above all, development includes the right to work, by which we mean not simply having a job but finding self-realization in work, the right not to be alienated through production processes that use human beings simply as tools. Due to upsurge in Arab oil production and massive inflow of revenue from oil export during the 1970s, the Arab region has witnessed development but still the region has to go a long way. 29

29. Johan Galtung, "Cultural identity, self- reliance and basic needs", Johan Galtung, et al eds., Self-reliance: A strategy for Development (London: Boghe - L'Ouverture Publications, 1980), p.397.

45

Although many countries have achieved political

independence and, in many of these countries the right to

independent decision- making has also become possible, yet

in most of the Arab countries political participation and

freedoms is noticeably limited. This has resulted in

curtailment of peoples say in the matter of choice and the

pattern of development they want. Moreover, most of the Arab

regimes lack solid base of legitimacy.

As far as the economy of the Arab region is concerned,

oil has played a pivotal role. Without oil the Arab region

would have been one of the poorest regions in the world.

Because of oil the region has experienced rapid economic

growth. With the help of oil-revenues spectacular progress

has been made in the fields of communication, construction

of modern housing and other amenities, public utilities,

irrigation, light industries and educational and health

services. 30

Undoubtedly the income from oil has fulfilled the

developmental needs of the Arab region to a considerable

extent. The fruits of benefit have been shared by non-oil

30. M. Ayoob, The Middle East in World Politics {London: Croom Helm, 1981), pp. 175-76. See W.M. Stevart, "Oil" in M. Adams ed., The Middle East {London: Anthony Blond, 1971), p. 427.

46

exporting countries too. A workforce estimated at 3-4

million drawn from various non-oil providing countris have

moved to the oil-rich countries to take part in the

construction and development activities which the expanded

oil revenues have permitted. This workforce is estimated to

remit back home, or to save, an estintated $ 3-4 billion

every year- over the years 1976-87. 31

However, little efforts have been made to diversify the

economy of the Arab world. The growth of productive forces

outside the oil sector has been quite modest, and in some

cases, it has even declined. The other obstacles in the

economic development of the Arab world can be listed as low

productivity and high population growth, the weakness of

work e t hi c , the l ow l eve l of e con om i c mot iva t ion ,

insufficient mobilization of the financial resources

available and hence insufficient capital accumulation,

rigidities in market structure, low level of technical skill

and inefficient land tenure system, etc. 32

31. World Bank, World Development Report. 1989.

32. A. Guecioueur ed., The Problems of Arab Economic Development and Integration (London: Westview Press, 1984), p. 10-11. See Sayigh, n.24, p. 4-5. See also Ibrahim Saad-eddin, The New Arab Social Order ~ g study of social Impacts of oil ~th, (London: Westview Press, 1982)

47

Social Development in the Arab World is also related to

oil. Revenues earned in the region contributed in building

institutions, expand educational opportunities, provide

social services and health care and introduce social and

economic changes. 33 Change has also affected the tribal

societies of the Arab world, in their social spheres as well

as in other quarters. But, still these societies are plagued

with several disadvantages and drawbacks; for example,

social stratification based on ascription rather than

achievement, favouritism and partiality, ethnic problems,

neopatriarhy, and clogged social mobility, etc. 34

33. Abdul Rahman Osama, The Dilemma of Development in the Arabian Peninsula, (London : Croom Helm, 1987), p. 20-21.

34. Hisham Sharabi characterized the societies of Arab countries as Neopatriarchy. He stated that patriarchal structure of Arab society, far from being truly modernized, have only been strengthened and maintained in deformed, 1 modernized 1 forms. Neopatriarchy is neither modern nor traditional. See Hisham Sharabi, Neopatriarchy: A Theory of Distorted change in Arab Society, (New York : Oxford University Press, 1988).

Ethnicity: Several Ethnic groups are launcing a quest for self-assertion in many Arab countries. For instance, the civil war in Lebanon have been continuing since 1975 due to class and ethnic divisions. Ethnic problems also exist in Iraq (Kurds, Sunni, Shi 1 a), syria (Sunni, Alawi) and also in Sudan, Algeria, Morocco, Egypt. See Ibrahim, Saad-Eddin, n.32, p. 172. See also Edmund Burke III ed., Struggle and Survival in the Modern Middle East (London: IB Tauris & co., 1993).

48

The gist of the matter is that even after being a part

of the Third World, the Arab region specifically has had

greater opportunities of making fast progress and

development. Obviously oil has played a major role in this

development. Nevertheless the overall development has not

taken the shape which one would have desired; it has, at

times, been marred by some internal problems like social

stratification, ethnic problems, favouritism, neopatriarchy

etc.

4. A REVIEW OF DEVELOPMENT THEORIES

There are a number of theories of development. In the

present study these will be reviewed in connection with

their relevance to the Third World. The discussion shall be

based around three broad paradigms of development;

modernisation, dependency and nee-Marxism.

A. Modernization Theory

Modernization is the process of social change whereby less

developed societies acquire the characteristics common to

more developed societies. Western writers describing

modernization have projected it as a process which is mostly

49

associated and identified with structural, economic and

technological changes and with changes pertaining to certain

attitudes (for example to time, rationality, etc.). This

process, they opine, is basically ladden with values which

themselves do not lay emphasis on humanistic considerations

and notion of social justice. Hence, the term involves no

normative orientation, except the overall one that

modernization is desirable. 35 Important theoretical works on

modernization include those of Bernstein, Dare, Hagen,

Lerner, Apter, Eisenstadt_36

Modernization has become a common term for describing

the process of industrialization, urbanization,

bureaucratization and rationalism which are seen as

correlated and interdependent processes, emanating from the

more general process of structural differentiation.

35. Yusif A. Sayigh, The Determinants of Arab Economic Development (London: Croom Helm, 1978), p.15.

36. H. Bernstein, "Modernization Theory and the Sociological study of Development", Journal of Development studies, 7 (2), 1971; R. P. Dore, On the Possibility and Desirability of a Theory of Modernization, 1969; E.E Hagen, On the Theory and Social change (Homewood Ill : Dorsey Press, 1962); Daniel Lerner, The Passing of Traditional Society (New York : Free Press, 1958), David E. Apter, Rethinking Development: Modernization, Deoendency and Postmodern Politics (Newbury Park: Sage Publication, 1987); S.N. Eisenstadt, Modernization: Protest and Change (Englwood Cliff: Prentice Hall, 1966).

50

Moreover, in contrast to models related only with change,

modernization models are concerned with problems of

development and growth and culminate in the direction of

change with the emphasis being on those processes which

result in transitions from the simple to complex, and from

traditional to the modern. 37

In the context of the the Third World countries the

modernization theory assumes that the less developed

countries can more or less follow the same path of

development which has been followed by the industrially

advanced countries. Simultaneously, it was also believed

that aid in the form of technology, capital and expertise

from the developed countries-to the developing oneswould

expediate the process in the developing countries.

Modernisation theory also relies on the evolutionary

concept of "social differentiation'' which, in a sense, is a

definition of social change. According to this model,

through successive processes of social differentiation and

37 Daryl J. Hobbs, "Some contemporary Sociological Perspectives Regarding Social change" in George M. Beal et al eds., Sociological Perspectives of Domestic Development (Ames, Iowa: Iowa State University Press, 1970) 1 p. 22-23.

51

integration, the society increases its adaptive capacity and

consequently evolves towards higher and developed stages. 38

A.l Criticism of Modernization theory: Numerous criticisms

of the various aspects of modernisation theory have been

made by a number of scholars. Some of them are listed below.

Firstly, modernization theory was seen by its

protagonists as an evolutionary, transitional process which

moved with unilinearity, hence transforming societies from

traditionalism to modernity in stages, In other words this

process is a lengthy one. Secondly, it failed to explain

adequately the social backwardness of certain peripherial

societies despite the application of modernization policies

and reforms. Thirdly, it was criticized as a whitewash which

obscured the brutal facts of western exploitation of the

erstwhile colonial societies. Hence, the real cause of the

Third World underdevelopment was present, not in the

backward mentality of peasants, but in the unequal exchange

38. S.N. Eisenstadt "Social Change, Differentiation and Evolution", American Sociological Review, 29, 1964, p.375-386; N.J. Smelser, "Towards a General Theory of Social Change", in N.J. Smelser, ed., Sociological ExP-lanation (New Jersey: Prentice Hall, 1968); P.C. Jain, "Sociological Theories of Development: A Critique in the Third World Context" , Man ~Development, Dec. 1991, p.12-20.

52

that exists within the global pattern of production and

trade. 39

Fourthly the, ethnic conflict which is more significant

than class conflict in case of the Third World countries

finds no place in the theory of modernization40 .

Fifthly, Andre Gunder Frank who is supposed to happen

one of the most harsh critics of the so called ;Sociology of

development; based on the modernization theory seemed it

"empirically invalid, when confronted with reality,

theoretically inadequate in terms of its own classical

social scientific standards, and polity wise ineffective for

perusing its supposed intentions of promoting development of

the under developed countries". 41

39. Samir Amin, Accumulating on a world Scale (London, 1974) See Bryan S. Turner, capitalism and class in the Middle East (New Jersey : Humanities Press, 1984), p. 3 see also Yusif Sayigh, n.24, p.46-47.

40. H. Bernstien "Modernization Theory and Sociological study of Development", Journal of Development studies 7(2), 1971.

41. Andre Gunder Frank, Sociology of Development and Underdevelopment of Sociology (London: Pluto Press, 1971), p.2. See Andre Gunder Frank, Latin America_ Underdevelopment or Revolution (New York: Monthly Review Press, 1969); See also Andre Gunder Frank On Capitalist Underdevelopment (Bombay: Oxford University Press, 1975).

53

Eminent Arab Economist, Yusif Sayigh opines that

modernization paradigm is open to one basic criticism. This

is:

Even when they show awareness of the conflict between the old and the new, or the traditional and the modern, or of the cultural, social and psychological costs of modernization, they fail to suggest what safeguards can be established in order for modernization to have built- in concern the masses and protection for the poor and the weak (be they individuals, groups, or nation­States) versus the rich and the strong. 42

These above mentioned criticism alongwith several

others had paved the way for the establishment of the theory

of dependency.

B. Dependency Theory

If modernisation theories were the Western theorists answer

to the plight of the underdeveloped countries, dependency

theory was the product of the application of Marxist

theories of imperialism. The original version of 'dependency

and underdeveloped' theory as outlined by first Paul Baran43

42 Yusif A. Sayigh, The Determinants of Arab Economic Development, (London: Croom Helm, 1978), p. 41.

43. Paul Baran, The Political Economy of Growth (New York: Monthly Review Press, 1987).

54

and next m o r e pop u 1 a r 1 y by And r e Gun de r F rank 4 4 ,

concentrated on locating the causes of backwardness of Third

World Countries.

Underdevelopment - it was claimed, is not due to some

'original state of affairs', as modernisation theory had

viewed it, but is the result of the same world historical

process in which the now developed capitalist countries

became developed. Thus, from the very beginning, the

dependency approach has been a world-system approach,

explicitly rejecting the concept of the unified state as

actor and the notion of the global system as a collection of

nation - states. 45

Baran was the first to make the point that,

'development and underdevelopment' is a two way street: the

advanced capitalist countries had become developed by

expropriating economic surplus from those overseas countries

with which they first traded and which they later colonised,

while the overseas countries became underdeveloped by aiding

44. Frank, n.41.

45. James A. Caporaso, "Dependence and Dependency in the Global System", International Organization, vol.32, 1, January, 1978, p.2. See also Fernando Henrique Cardoso and Enzo Falletta, Dependency and Development in Latin America (Los Angeles : University of california Press, 1979) .

55

the ascendancy of the west. 4 6

Andre Gunder Frank postulated three 'laws' of motion of

the process of development and underdevelopment and coined

the twin concept 'metropolis-satellite' to characterise the

native of imperialist economic relations. 47 Frank said, the

ties of dominance and dependency, run in chain like fashion

throughout the global capitalist system, with metro-politan

states appropriating the surplus from the satellites, their

towns removing the surplus from their hinterland, their

landlords from their peasants, their merchants from

shopkeepers, and finally the shopkeepers from their

customers. 48

B.l Criticism of Dependency Theory : This theory holds

colonisation and peripheralisation responsible for the

under-development of the developing countries, but Yusif

Sayigh has noted that some countries of the Arab world,

although did not experience direct foreign domination are,

less developed than others in the region, which had

witnessed colonial penetration.

46. Baran, n.43.

47. Frank, n.41, Introduction.

48. See Frank, n.41.

56

In the Arab region , for instance, by the end of the Second World War the only two countries that had not come under direct foreign domination or experienced notable economic and cultural penetration were Saudi Arabia and North Yeman. Yet these two countries were distinctly far less developed than the rest in the region, notably less than the Maghreb countries (Morocco, Algeria and Tunisia), and the Mashreq countries in general, but Egypt and Lebanon in particular, This judgment is true whether it is related to levels of education and sophistication, the development of journalism and literature, the establishment of physical infrastructure, manufacturing industry or technological capability. 49

Frank had also invited several criticism. For example

leys stated that Frank theory is a mechanical, economistic

deterministic explanation of dependency and underdevelop-

ment. 50

The dependency theory has also been criticised for

ignoring internal factors which are responsible for the

situation of underdevelopment is the Third World Countries.

49. Sayigh, n.24, p.80-81.

50. See Colin Leys, "Underdevelopment and Development: Critical Notes", Journal of Contemporary Asia, vol.7, no.1, 1977, pp.82-115. useful criticism of dependency theory from the point of view of 'empirical• usability of the concept can be found in Christopher case-Dunn, "The Effects of International Economic Dependence on Development and Inequality: A Cross-National Study"? American Sociological Review, Dec.1975 see also Gabriel Palma, "Dependency: A Formal Theory of Underdevelopment or a Methodology for the Analysis of Concrete Situations of Underdevelopment?", World Development, vol.6, 1978, pp.881-924.

57

The major setback to the development process in the

Third World Context are ethnic/racial and other conflicts

among primordial collectivities. Neither the modernisation

theory nor the dependency theory dealt with these problems.

Modernisation theories have blamed mainly the culture and

traditions of Third World countries as hindrances in the

process of modernisation. Dependency theory too did not deal

with the internal factors responsible for the

underdevelopment of Third World Countries. 51 However, neo­

Marxism gave due consideration to these issues which have

been neglected by the protagonists of modernisation and

dependency theories.

C. Neo-Marxism

Neo-Marxism differs from traditional Marxism in several

aspects such as inevitability of the dictatorship of the

proletariat, disappearence of middle classes and the

withering away of the state.

Nee-Marxism propounds the thesis that, in a given

social formation at a given time, there is one dominant mode

51. Jain, n.38, p.l2-20.

58

of production which produces complex effects of conservation

and dissolution on other modes of production. The same case

applies at the international level too. Since the days of

the Industrial Revolution, the capitalist 1node of production

had occupied a dominant role in the West while imperialism

and international trade have facilitated its growth in the

developing countries. Depending on the nature, agents and

the degree of penetration of the capitalist mode of

production in the Third World countries, the pre-capitalist

mode of production varyingly resists the former, which leads

to various forms of class and ethnic conflicts. The state

not only intervenes in these conflicts but also gets

transformed in the process. The major problem of development

in the Third World Countries lies in understanding the

contradictory effects of the articulation of the modes of

production, class dynamics and attaining them with the

economic growth and distributive justice. 52

In the peripheral capitalist societies the state plays

much more significant role than its counterpart in

52. Nadia Ramsis Farah, 11 The Social Formation Approach and Arab Social Systems 11

, Arab Studies Quarterly, 1988, 10 (3), pp.261-82; A. Foster-Carter, 11 Neo-Marxist Approaches to Development and Underdevelopment 11

,

Journal of Contemporary Asia, 1973 391), p.7-33; Jain, n. 38.

59

capitalist societies. Moreover, nee-Marxism also focusses on

internal factors which are a setback to the development

process in the Third World Countries, such as racial/ethnic

conflicts. 53

C.1 Criticism of Nee-Marxism: The neo-Marxists reference to

class relations was a serious point of disappointment,

particularly when they accused labour in centre countries of

taking part in the process of exploitation. In other words,

capital and labour in the centre exploited capital and

labour in the periphery, although labour was in its turn

subjected to exploitation by capital within the centre as

within the periphery.54

Sayigh, also expresses his doubts whether the Third

World Countries can achieve development based upon the neo

- Marxist thesis.

An argument can be made for precedence to be accorded in the context of underdevelopment to the

53. See Stuart Hall, "Race, Articulation and Societies Structured in Dominance" in Sociological Theories: Race and Colonialism (Paris: UNESCO, 1980); Walter Rodney, ~ History of the Guyanese People. 1881-1905 (London: Johns Hopkins University Press, 1981) P.C. Jain, "Exploitation and Reproducton of Migrant Indian labour in Colonial Guyana and Malaysia", Journal of Contemporary Asia 18(2), 1988, pp.189-206.

54. Sayigh, n.24, p.69.

60

promotion of productive capability, rather than to distributive justice and the speedy narrowing of the income gap between socio - economic classes. This is not to deny the causal link between the level of wages and social services of the lower­income state and economic performance, but the translation of the causality into wage and income policies can be so exaggerated as to make these policies counter productive.55

In the preceeding pages, the three theories of

development v1z. the modernisation, the dependency and the

neo-Marxism have been reviewed. Precisely, the protagonists

of modernization theories viewed that developing countries

can not progress without the help from developed countries.

Wh e r e a s , t he de p end en c y t he o r y h o l d s c o l on i s a t i on

responsible for the present situation in the Third World

Countries; the neo-Marxism reflected various problems of

Third World such as ethnic and violence.

D. Political Economy Approach

The present work would be based on political economy

approach. This approach emphasizes, "the inter-meshing of

the so-called 1 political 1 , 1 economic 1 and social factors of

change in an ongoing historical process. The dynamics of

55. ibid, p. 81-82

61

such change emerge from the continuing interplay of economic

forces and related social classes; and those dynamics are

reflected and furthered through institutional innovation and

change." 56 In a nutshell, political economy could be defined

as, "exploration of linkages between the economic system of

a country and its politics." Emerging political

considerations shape the economic policies of any country.

Against this backdrop Hopkins notes that:

Those who sponsor development programs are interested not only in the potential economic benefits, but also in the political consequences. The outcome is thus to create a different kind of society, or perhaps to reinforce imaginatively an existing one, in which their own role and position will be enhanced.5 7

Structural T ransfOl'mation

State Structure and Policy Class

Source : A. Richards and J. Waterbury, A Political Economy of the Middle East: State, Class and Economic Development (Boulder, Westview Press, 1990), p.9.

56. Steve Langdon, "The political economy of dependence Note toward analysis of multinational corporation in Kenya." Journal QL Eastern African Research and Development. 4(2), 1974.

57. Nicholas S. Hopkins, "Development and Centre Building in the Middle East" in Louis J. Canton and Iliya Harik, Local Politics and Development in the Middle East, (Boulder: Westview Press, 1984). p.7.

62

Let us assume that the structure of political

economy can best be shown as the product of the

interaction between the following three variables:

1. Economic growth;

2. State structure and policy; and

3. Social class.

Economic growth means simply the increase overtime

ln total output in the economy. Because this concept is

related to the welfare of the populace, generally per

capita growth is also implied. It is worthy to note

here that in a state it is most likely that a

particular group's wealth and power may increase quite

faster than other's and also some sectors may grow

relatively faster than the others. These

characteristics of unbalanced growth are called

Structural Transformation. State Structures and Policy

mean the organization of the monopoly of coercive means

within society; the interventions into the economy that

such a monopoly makes possible; and the institutions

through which interventions is carried out. This

intervention may be carried out by state itself. Social

class represents groups of people who share a certain

set of property rights. Class defines, primarily, the

63

ownership relations. 58 The role of three main aspects

of the political economy may be summarized as follows.

The process of economic growth and structural

transformation creates unintended results for which

state must be ready to respond. Significantly, the

state policy affects the rate and form of economic

growth whereas classes mould state policy. It is

noteworthy that throughout the Third World, including

the Middle East, the states not only shape but even

create social classes. At the same time, the process of

economic and structural transformation also shape

classes and finally, classes affect the rate and form

of economic growth.59

Most Middle East societies, because of their

colonial heritage, their relative backwardness, the

role of multinationals in the control of world trade

and the strength of international competition, have

opted for some form of state management, usually state

58. A. Richards and J. Waterbury, A Political Economy of the Middle East; State. Class and Economic Development (Boulder, Westview Press, 1990), p.9.

59. ibid, 9-10.

64

capitalism with an Arab Socialist ideology. 60 Except

Lebanon , the m a j or i t y of Mid d l e East soc i e t i e s

especially Turkey, Iraq, Syria, Egypt, Algeria and

Tunisia have begun the process of industrialization

under state intervention without a phase of competitive

capitalism. This is a typical development strategy. 61

60. Bryan S. Turner, capitalism and class in the Middle East _ Theories of Social change and Economic Development (London: Heinemann Educational Books, 1984), p. 61-61. See Karon Farsoun, 11 State capitalism in Algeria 11 MERIP Reports, 35(1975), p. 3-30.

61. Turner, ibid, p. 62.

65