Part 1-I Section Outline

How the Concept of Development Got Started

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1. Introduction: Development Is a Concept Tied to the Evolution of Capitalism
2. The Transition from Feudalism to Capitalism: The Early Stages of Capitalism
   1. Development Policy Did Not Exist in Feudal Society.
   2. The Transition to Capitalism Was Driven by Ambition and Self-Interest; Government Involvement in the Process Was Marginal.
   3. Development Became an Objective of Government Policy With the Rise of the Nation-State and the Need to Perpetuate State Power.
   4. Under Mercantilism, the Government Was Viewed as the Catalyst for Capitalist Economic Growth Via Exports to Foreign Countries.
3. Competitive Capitalism (1700-1860)
   1. Capitalism Witnessed the Rise of the Industrial Sector and Increased Demand for Unskilled Laborers Whose Wages Were Not Enough to Cover Basic Needs.
   2. Capitalism Expanded Outward in Search of Raw Materials and Consumers.
4. Classical Political Economy: Adam Smith and "Laissez Faire"
   1. Classical Political Economy Argued that Government Should Play a Limited Role in the Economy.
   2. Adam Smith Believed that Economic Growth Depended on the Free Market and the Entrepreneurial Spirit of Private Persons.
5. Karl Marx and the Socialist Revolution
   1. According to Marx, the Government was a Tool Used by Capitalists to Perpetuate Themselves in Power.
   2. From a Marxist Perspective, Development is a Process of Class Struggle.
   3. According to Marx, Capitalism’s Inherent Contradictions Would Eventually Cause its Downfall.
   4. Marxism Views Government-Led Social Reform and Nationalism as Mechanisms to Perpetuate Exploitative Development.
6. Imperialism and Economic Theory (1860-1945)
   1. Imperialism Flourished During this Period.
   1. During this period, capitalism spread to most of the world; but not all areas of the world partook equally of the wealth.
   2. European nations dominated most of the world economically and politically.
   2. Alfred Marshall, a Neoclassical Economist, Believed Capitalism Would Benefit Everyone in the Long Term.
   1. Marshall believed that capitalism would lead to a civilized and classless society.
   2. He also believed that the state should play an important but limited role in achieving long-term growth.
   3. Vladimir I. Lenin
   1. Lenin believed a socialist revolution was possible even before capitalism had eliminated all traces of feudalism.
   2. Lenin believed the state should promote economic development by generating wealth and distributing it.
7. John Maynard Keynes and the State
   1. Unlike Neoclassical Theory, Keynes’ Theories Seemed to Provide Plausible Explanations for the Near-Destruction of Capitalism.
   2. Keynes’ Theory of Unemployment was Based on the Inevitable Collapse of Investment.
   3. Keynes Believed Government Spending Could be Used as a Mechanism to Create Full Employment.

[Part One Bibliography]

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