Iqra University Islamabad

Theories of Development

Assignment # 2

Submitted to, Madam Sana Yousuf

Submitted by, M.Asad Qayyum 15130

Dated: 12th March, 2012

This is the analysis of the reading The Development of the Underdeveloped from the Chapter Underdevelopment. Without first learning the Past economies and Social History gave rise to Underdevelopment The third line of the reading clearly speaks what is ignored and how the Worlds underdeveloped areas are facing the Underdevelopment dilemma. The policies are formed and changed with passage of time but they are not able to bring any salient change. The theories which are already available failed because of they didnt gave much importance to the history and past of the underdeveloped world this is just usually written in just one part. A common belief that Economic Development occurs in succession of the capitalist stages yet there are no similarities in todays underdeveloped nations and developed nations which dint even passed through these stages. The diffusing capital institutions value in the most underdeveloped areas of the underdeveloped world is a push towards the dilemma of Underdevelopment. The concept of Dual Societies is largely prevailing in the economy of underdeveloped countries in which the Landlords always are beneficiaries and became modern capitalists and the labor always have to face the worst conditions. The Secretary General of the Latin America center of research clearly says and indicates on the importance of the Historical background of the city. A closer economic and social interdependence is found between center and satellites (e.g. Indians and Mestizos), the provincial metro poles act as the center of exploitation. The metropolis-satellite structure in some cases such as mean of exploitation and in case of Spain it used to get the whole surplus of economy which leads to the monopolistic structure this narrows the development and enrichment of the ruling class. The writer suggests that the Historical and Structural approach can lead to better development and policy and talks about the 5 hypothesis which can help. 1. The development of the National and other subordinates metro poles is limited in contrast to the development of the Worlds metropolis 2. Satellites have good economic development when their bond to metropolis is weakest 3. The most underdeveloped regions now are the ones who had close ties to the metropolis 4. Latifundium was typically born as a commercial enterprise 5. Demand and productive capacity of the latifundia decreased which appeared isolated

The all hypotheses were strongly supported by the different arguments in the support of second hypothesis the regional case of Mendoza and Rosario is very much supportive the case of Sao Paulo is quite evident. These hypotheses suggest the more economic development and cultural changes that they had. To remove the Dilemma we have to know and agree on the fact that there are no stereo types from the metropolis to their satellite economic realities. The Historical Holistic and structural approach may be helpful for this purpose.