Ways of Measuring Development and Globalization
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DEVELOPMENT AND GLOBALIZATION
Development is the process of improvement or progressive refinement and realization in economic, social, political and cultural values while globalization is the process of interaction and integration of many economies, cultures and societies into a single one. Development therefore encompasses the need and means to provide better living by satisfying basic human needs, modernizing social change, economic growth and political stability. Globalization on the other hand is a process driven by international trade, investment and is aided by technology and has effects on the environment, culture, political systems and development. (Belmont & Judson 2007)
Terms used to categorize development:
Countries in the world are categorized by their economic and political developments. A common categorization of countries that was used in the cold war era incorporated government ideology such as capitalism and communism and it was mostly based on their political development. In this system countries were categorized by their political rights, civil liberties and the freedom of information within the countries; “First world”, “Second world” and “Third world” countries. First world countries describe the North Atlantic Treaty Organization countries and their allies, which were democratic, capitalist and industrialized. They included most of North America and Western Europe. Second world countries described the communist-socialist states and included Eastern Europe, China. Third world countries described those that did not align with either the First or Second world countries after World War II and generally described less developed countries which include the developing nations of Africa, Asia and Latin America (Ashley & Orenstein 2004).
Countries are also categorized according to their economic development. This was determined by comparing the Gross National Income (GNI), the Human Development Index (HNI) and the Gross National Product (GDP) per capita .In this category countries were categorized as either developed or developing countries. The developed countries are those with high Gross National Income, Human Development Index and also high per capita income (James & John 2005). The characteristics of these countries are those with highly developed economies, advanced and widespread infrastructure and generally have high standards of living. These countries include the United States of America, Japan, Australia and the United Kingdom. They are also called highly-developed countries. However developing countries have low Gross National Income, low Human Development Index and low per capita income. Some of their characteristics are illiteracy, poor living standards, poorly developed trade and infrastructure, high infant mortality rate and underdeveloped industrial base. Some of the developing countries include Kenya, Afghanistan and Peru (Backhaus & Joseph 2003).
Ways of measuring development.
Development can be measured in various ways which include the use of Gross National Product (GNP), Gross Domestic Product (GDP) and Human Development Index (HDI). BOTH Gross National Product and Gross Domestic Product measure the size and strength of an economy but are calculated and used in different ways. Gross National Product (GNP) is the value of goods and services produced by citizens of a given country, on its land or on foreign land over a period of one year.
Gross Domestic Product (GDP) is the value of all the goods and services produced within its boundary by its citizens and foreigners within a period of one year.
They are both used in economic forecasting though the Gross National Product is used to show how the citizens of a country are doing economically while the Gross Domestic Product is used to show the strength of a country’s local economy. Gross National Product is also be calculated on a per capita basis to show the buying power of a consumer from a particular country, the estimate of average wealth and the distribution of ownership in a society. Gross Domestic Product can also be calculated on per capita (or per person) basis to give a relative example of the economic development of countries.
The Human Development Index (HDI) is a way of measuring development which works by ranking countries according to their quality of life of their citizens. The Human Development Index is a composite statistics of three variables which are: life expectancy and its regarded as the best measure of a country’s health and safety, education which is obtained by combining adult literacy rates and the average number of years spent at school and lastly the income per capita which is the actual purchasing power that is what an income will actually buy in a country.
Development can either be classified into economic, social, cultural and political. Economic development is relevant in measuring the progress and the quality of financial life of citizens in a country. This can be achieved by improving the agriculture, industrial, transport and trading of a country. Social development involves the improvement of the society in terms of health, education, housing and food. Improvement in them may be indirectly related to economic development because if income increases people can enjoy better health, education, nutritional food and housing. Political development is the improvement of institutions, attitudes and values that form the political power system of a society. Cultural development is the process of integrating and differentiation involving increases in cultural complexity and involves the evolution from primitive ways of life to more advanced and civilized forms (Joseph & Backhaus 2003).
Sociological theories
Sociological theories are complex methodological frameworks and ideas used to explain objects of social study and facilitate organizing sociological knowledge. Sociological theory is constantly evolving and therefore can never be presumed to be complete hence showing development because new sociological theories build upon the work of their predecessors and add to them, though classic sociological theories are still considered important and current. Some of the key developments that have influenced sociological theories are: the rise of individualism, the appearance of the modern state, industrialization, capitalism and globalization. Some of the sociological theories include functionalism, Marxism and feminism
Functionalism is the framework that partakes society as a system whose parts work together to promote stability and solidarity. It sees social structure or the organisation of society as more important than the individual. This approach takes the society to be a large-scale orientation, which is a wide focus on the social structures that develop society as a whole. Functionalism looks at both social functions and social structure. It also views society as a whole in terms of the basic purpose of its constituent elements; traditions, customs and institutions.
Feminism is a collection of movements that are aimed at establishing, and defending equal political, economic, and social rights for women. It stresses the importance of gender divisions in society and portrays these divisions as working to the overall advantage of men. This approach shows how sexuality both reflects patterns of social inequality and helps to perpetuate them. Feminism, from a social conflict perspective, focuses on gender inequality and links sexuality to the domination of women by men
Marxism theory asserts that the society is dominated by ruling class and that it’s based on conflict between the classes, it focuses on class relations and societal conflict. It foresees a revolution where communism will be introduced and capitalism abolished. (Antony & Philip 2013)
Sociological perspectives
The sociological perspective is a perspective on human behaviour and its connection to society as a whole. It invites us to look for the connections between the behaviour of individual people and the society. Sociological perspective is generally tied to the main paradigms of sociology structures of the society. (Aiken D, Chapman S, Stephen Moore 2006)These are:
1. Conflict theory
2. Functionalism
3. Symbolic Interactions
- Symbolic Interactions: This perspective focuses on symbols that can be found in society, what those symbols mean to each of us, and how those symbols affect the way we interact with others in our society.
- Conflict Theory: It focuses on how certain parts of our society are in conflict with each other, and how the "elite" members of our society oppressed the lower class for their own gain.( Holborn & Haralambos 2008)
- Functionalism: It explains that each part of the society is dependent on each other.
Modernization and dependency theory
Both modernization and dependency theories were developed to explain the result of underdevelopment. The dependency theory as explored by Eduardo Galeano's Open Veins in America, explains that the causes of underdevelopment came from colonial expansion. Lawrence Harrison explains the modernization theory in Development and Underdevelopment. Both theory authors argue different ideas such as the cause of poverty is due to European powers placing structural restraints on the third world countries.
Galeano explains the structural restraints causing poverty to the third world as unequal exchange. He continues to note that the price of exports from the third world keep on decreasing, while prices from developed countries increase. This creates a circular trap as wages in richer countries are increasing, which cause the price of industrial goods to increase in the price of industrial goods while wages in third world countries are low, in which the export prices declines. This means underdeveloped countries need to constantly increase their yields and exports for their profits to stay the same. The cause of poverty in third world countries is argued by Harrison to be blamed on their values and cultures; tradition. The authors believe that the problem can be solved if the poor countries can transform from traditional to modern. They also suggest that the traditional society can emulate those who became modern and follow their footsteps (David 2005)
The role of Inter Governmental Organisations
Inter Governmental Organisations are agencies in which countries with widely differing political institutions and at the different stages of economic development may exchange views, share their problems and experiences. They are classified into global, regional, economic, educational and health organizations. These organisations have played a major role in development. Some of the rewards such as:
Improved security: Membership to some inter Governmental Organizations such as NATO gives security benefits to member countries providing an arena where political differences are resolved.
Economic benefits: Different countries receive economic rewards from membership in free trade agreement such as the North American Free Trade Agreement (NAFTA) by being given better access to other markets due to their membership.
Political influence: Countries such as Portugal and the Netherlands do not carry much political clout on the international stage but they are given a substantial increase in influence through membership in IGOs, such as the European Union.
Improved democracy: Member countries experience a higher degree of democracy and they survive longer (Marsh et al. 2004).