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The issue of globalization has been an ongoing process that raised many questions in the world. It is indeed a complex subject that is examined in many different perspectives.

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The issue of globalization has been an ongoing process that raised many questions in the world. It is indeed a complex subject that is examined in many different perspectives. Globalization, the integration of international economy, is no doubt a liberalistic idea. Not only is the emergence of this idea debatable, its consequences and its effects are tremendously important. To fully understand globalization, one must analyze the aftermath of this movement. During the 1960s, several theorists began to analyze the consequences of globalization. It was evident at that time that the rise of international inequality increasingly divided the world into two parts: the development and underdevelopment. Therefore, I will examine the different explanations of how development and underdevelopment countries occurred and how the later developing countries can successfully develop. To do so, I will use three different theorists, namely Rostow, Wallerstein, and Gerschenkron. With a liberal perspective on development, Rostow sees the necessary conditions of economic development as set stages. He identifies it as the preconditions for take-off and the take-off. This theory puts all countries on a unilateral path and assumes that all societies go through 5 stages of economic development. ...read more.


This leads to a process of capital accumulation at a global scale. Politically, Wallerstein mentions that nation-states as variables. States are used by class forces to pursuer their interest, in the case of core countries. Imperialism refers to the domination of weak peripheral regions by strong core states. While hegemony refers to the existence of one core state temporarily outstripping the rest. Hegemonic powers maintain a stable balance of power and enforce free trade as long as it is to their advantage. However, hegemony is temporary due to class struggles and the diffusion of technical advantages. This is what Wallerstein considers as internal contradictions. This contradiction will eventually trigger change. In order to move a country's status from the periphery to the core, Wallerstein proposes import substitution as a solution. Import substitution is a phenomenon that responds to external disruption of trade by domestically producing substitutes for those goods previously imported. This is a policy that the governments in less developed countries may use to undertake industrialization and structural changes. Wallerstein's theory is one that is contrast to Rostow. While Rostow believes that all countries have the potential to go through economic development through the five take-off stages, Wallerstein supports the core and periphery to create globalization. ...read more.


Its core-periphery model fits the model of globalization. Sadly, the theory is written in the interest of the international economy and assumes that exploitation of developing is needed. Developing countries' only way out of the periphery is to create social change and accumulate capital or foreign investment. Gerschenkron on the other hand, brings hope to the developing countries. It persists that countries can develop through a process of catching up. Additionally, there are benefits to this catching up as mentioned above. Moreover, we understand that there are multiple paths to development (unlike Rostow). One thing that must be kept in mind is the time constraints. The process of development is taken in a course of 20-30 years. The hope for possible successful development for any country cannot be explained under one theory. Theories are ideal types that can be used as a model. However, theories do not apply to every country. Gerschenkron understands that different countries have different conditions. This means that certain available resources, geographical location, and relations in the international economy will lead countries to develop in different ways. It is important to remember that we can only take the theories and adapt its advantages that will apply to specific countries but not assume it works for the world as a whole. ...read more.

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