Ddm International Business And Finance|International Development Exam 2025 With Accurate Solutions

Colonial legacies - Answer- context was 18th century, newly industrialized Europe, needing resources to match their new technologically advanced speeds (steam engine) - Colonial technologies were arbitrarily implemented modern state apparatus used to represent state values. - 3 main: census, museums and maps - issue with census: arbitrary demarcation of group divisions, legitimized hierarchy among native groups - issue with museums: simplification, rewriting of history, tradition and local customs, strengthened civilized-primitive binary - key issues with maps: arbitrary lines drawn by outsiders High Imperialism - Answer Colonial Technology - Answer- Long lasting political, economic and social effects of colonialism on contemporary developing countries - Negative: formation of hierarchy and inequality, institutionalization of political and economic dominance of the developed countries over the developing countries, uneven trade negotiation, dominance of local elites, political instability, etc. - Examples: most former colonies - Positives: strong state institutions, political stability, positive economic growth - Examples: Singapore and Malaysia - Historical context: newly independent colonies Modernization Theory - Answer- Changes (growth) in the economy will lead to change in attitude which will inherently (but not explicitly) lead to democracy - Key historical points: decolonization along with beginning of cold war put high emphasis on democracy - Transition from a traditional society (anything non western) to a modern society through secularization, democratization, industrialization, bureaucratization - Key issues: unidirectional, teleological (only one pathway for all countries) - Eurocentric presumption of development - Key thinker: Walt Rostow and 5 stages of economic development (1) traditional society 2) pre conditions for take off 3) take off 4) drive to maturity 5) the age of high mass consumption) 5 stages of economic growth - Answer- 5 stages of economic growth: o traditional society o pre conditions for take off o take off o drive to maturity o age of high-mass consumption - key drivers are industrialization and urbanization - Key stages are preconditions for take off (when the state becomes a modern state) and the take off o The take off entails modernization of infrastructure, commercialization of agriculture, diffusion of modern technology, surplus labor in urban sector (urban to rural migration), and rise of new industries - Major critiques: imitation of the rise of western countries (especially the USA) is not replicable in all countries, and will not work in all of Africa and south America - Ignorant of local realities and historical variation - Assumption that "all good things go together" (secularization, industrialization, democratization) - Only ONE pathway to development Dependency Theory - Answer Import Substitution Industrialization - Answer- emerged with dependency theory - main goal is to break existing dependent relationships - historical context: o Eurocentric approach had not worked o 17/20 south American countries had successful coup d'etats o Asia had communisms and authoritarian regimes o mid 60s - key elements: strong state intervention, protection of the domestic market, inward looking industrialization - key strategies: import modern technologies and machines (establish internal manufacturing industries), keep exchange rate high (buy machine at low costs), keep tariff rate/import tax high (block consumer goods from overseas