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- Modernisation theorists argue that underdevelopment occurs because nations lack
key ingredients to move from one stage to the next stage.
- Lack of technology or an absence of entrepreneurs = linked with economic and cultural
- Economic Barrier act as a barrier to development
- Underdeveloped countries are locked into a cycle of poverty.
- Countries lack of technology and infrastructure to crease surplus in order to generate
profit.…read more

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Ethnocentric ­ they idealize Western capital industrial society and suggest that it has no
problem, in others words that it is superior. They underestimate traditional societies
suggesting that their economies and cultures have no value.
Oversimplify ­ assume that all societies follow the same basic development path. They
ignore the diverse resources, histories, cultures and politics present in the rich and poor
countries. They treat nations as isolated and ignore the connections between them.…read more

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- Neo-Liberalisation's central idea is that the underdeveloped countries should follow
the rich world's path to development.
- It rejects aid as a central process and sees trade as the vital process in development.
- Growth can only occur in an environment where trade is encouraged by limiting
barriers and increasing incentives for corporate growth and individual
entrepreneurialism.…read more

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Neo-liberal theorists are that conventional aid ­centred policies have actually
hindered growth. Peter Bauer ­ argues that these approaches make countries rot by
preventing painful but necessary changes. Aid is seen as propping up corrupt
governments which is relieved of the need to care for their populations. Aid is seen as
breeding a culture of dependence on donations.…read more

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