3. Is imposing development ideology successful or not? Discuss.

Developmentalism is an economic theory which states that the best way for less developed

economies to develop is through fostering a strong and varied internal market and imposing

high tariffs on imported goods.

Developmentalism is a cross-disciplinary school of thought that gave way to an ideology of

development is the key strategy towards economic prosperity.

There is no perfect ideology to apply since the world and everything in it – political,

economics – social – is currently evolving and changing. However, on the context of success

and its contribution to the sphere of economic growth as it built on industrial mass

production.

Developmentalism however had contributed to the increasing real wages and economic

welfare of the population. The developmental state bridges the transition from poverty to

industrialization and national economic strength. These were few of the good points that had

made this ideology a success. However, as there is no fast and good rule to disparities

across nations, critics said that developmentalism strategies deny the free market its

autonomy by creating a state controlled market economy. As developmentalism viewed as a

tool of western imperialism over the non-western imperialism.

However, as there is a shift from developmentalism to neoliberalism, the context and

meaning of development has been redefined to “participation in the global market”. From

strengthening of internal capability through national development projects for their own

societies into participating the global economy; thus from state – led development to market

– led development.

Answering to the question of the success of the Developmentalism ideology, in some way it

has contributed to the development of the states linking economic growth to cultural and

political development. It may have lost its favor from the succeeding ideologies but it in one
way or another made an impact to the various states and nations in building not just on the

aspect of economics but also in the areas of cultural and political spheres.

5. Discuss the new pay offs of Migration. How does this “pay off” develop our

countries?”

External remittances are helpful and beneficial to a country’s economy. Remittances

have been promoted as a development tool because they can raise incomes and reduce

poverty rates in third world countries. Remittances may also promote development by

providing funds that recipients can spend on education or health care or invest in

entrepreneurial activities. From a macroeconomic outlook, remittances can boost aggregate

demand and thereby GDP as well as spur economic growth.

The remittances that migrants send back home create both costs and benefits for a

country. On the positive perspective, remittances boost the income of recipients enabling

them to increase in consumption or investment. It increases forex reserves, increases the

value of the currency in the world monetary market, provides the family receiving the

remittance a source of income thus increasing the per capita income. Higher remittance

flows will increase liquidity in financial markets which may push down interest rate and lead

to an expansion of credit and investment. Thus, it was conclude that remittances from

abroad are major economic assets especially for developing countries.

Although recent literature has speculated the existence of positive relationships

between remittance and economic growth, capital accumulation and poverty reduction of

recipient countries, there is a need to validate how these remittance affect the overall

development process of the recipient countries. Considering that these are private flows,

there has been no standard public policy on how these funds can be utilized for

development. However, looking closely into the multiplier effect, one can see the effect of

remittances on macroeconomic. The multiplier effect refers to how an increase in one

economic activity can cause an increase in many other related economic activities. The

consumptive behavior when used for education, health and housing, all of which contribute

to economic development.