Linear and Non- Linear Model
The linear world view of development simply means that underdevelopment is a condition
preceding development. All developed countries are late comers to the process of
development, which had already taken place in the developed West.
The Western developed countries followed some kinds of processes, and they have achieved
a kind of standard of living. The people of these countries enjoy certain consumer items,
which are not easily available for the common men living in other parts of the world, at an
affordable cost. Because of their tremendous influence on the world bodies and international
scene, the Western countries have become models of development for the underdeveloped or
developing countries. It suggests, therefore, that development is becoming more like the West
or like the already developed countries. For becoming like the West, there are certain
institutional or economic hurdles, whose removal will initiate the development process in the
underdeveloped countries. Institutional or economic hurdles could be dictatorships,
monarchy, and a closed type of economy like that of Burma, India, and China, to some
extent.
Theories falling under the linear world-view may be divided into two broad categories. First,
there are those theories, which consider development as harmonies and non-contentious
processes. The development process benefits all rich as well as poor people, and rich as well
as poor countries. There is more harmony between different groups of people and different
countries. The second category of theories consider development essentially as a conflicting
process. These theories refer to the rich exploiting the poor as much as the rich countries
exploiting the poor. which project development as becoming more like the West and
developing countries as late-comers to the process, with certain initial conditions, which
should be overcome to experience transition to development, the more familiar is what could
be described as the 'Mainstream paradigm'- the "stage theory" of W.W. Rostow
The most important resource for development is savings or accumulation of capital. The
transition from underdevelopment to development is essentially a process of moving from a
low savings ratio of about 5% of the GNP to a high savings ratio of about 12% or more.
"Development is a process of transforming an economy, which is predominantly agriculture-
based and other related primary activities, towards predominance of industry and non-
primary activities.
Eg Rostows theory
On the contrary, the "non-linear world-view of development" suggests that development is
not becoming like the West. Under the changed historical conditions, it may not be possible
for the less developed countries to become like the already developed countries. These less-
developed countries shall have to find an alternative path of development.
Eg: Neo-Marxist paradigm, World system theory,
The Gandhian thinking on the appropriate development for countries like India, and some
contributions from someone like E.F. Schumacher, who wrote Small is Beautiful, may be
considered as part of the "populist" paradigm. Gandhi thought that the Western type of
development had nothing to commend to societies like India. His contention was that the
Western industrialization had brought along with it immortality, crime, and cultural
degeneration. "Development in a country like India should make the village as the centre, and
provide employment and livelihood through a network of cottage and village industries.
'Gram Swaraj' or 'village united development' would not only ensure against the evils of
industrialization and urbanization, but also absorb millions of people without uprooting them
from their appropriate village industries.
Neo-Marxist Theory:
Neo-Marxism is a Marxist school of thought encompassing 20th-century approaches that
amend or extend Marxism and Marxist theory, typically by incorporating elements from other
intellectual traditions such as critical theory, psychoanalysis, or existentialism.The Frankfurt
school has become one of the most important proponents of Neo Marxism. It grew out of the
Institute of Social Research at the University of Frankfurt Germany.Neo Marxism is also
known as critical theory where class divisions under capitalism are viewed as more important
than gender or sex divisions or issues of race and ethnicity.
End of 11 world war -The essence of the paradigm lies in the fact that, at present, the less
developed countries cannot develop like the West. It stresses the interconnectedness of
development and underdevelopment, of traditional and modem, and indeed many other
social, political and economic factors. It seems many conflicts and clashes of interest in the
development process occur, both between nations and between social classes within the
underdeveloped countries. It emphasizes the historical factors, especially, the active process
of how underdevelopment has come into being in the various Third World countries.
Eg: writings of Paul Baran, A.G. Frank.
Paul Baran declared that underdevelopment of most of the world was a direct result of the
dynamics of monopoly capitalism, which had mocked the primary accumulation of capital in
the underdeveloped regions, and smothered their novice industries.
Third world countries were following a dual economy - a large agricultural sector and a small
industrialized sector.
Emphasis class relation and their impact upon the utilisation of economic surplus and its
distribution of power.
A.G. Franki identified the cause of underdevelopment- trade and other kinds of exchange of
goods and services including both international and internal.
Delink from the world market and develop themselves.
Third world countries are more dependent should be independent and develop their own
ideologies and critically analyse the issue.
‘Think globally, act locally’
The slogan ‘think globally, act locally’ summarizes the contemporary debate about
sustainable communities. It is the core of concerns about democratic participation in a global
society. Community is often presented as an ‘imagined village', an idyllic construct, remote
from the reality of global society.
A firm whose managers “think” at the global level may “act” at either the global level or at
the local level. “Thinking global”—a global orientation, mindset, or philosophy—suggests
that a firm actively considers opportunities for engagement beyond the borders of its host
country. “Acting” refers to how a firm approaches the implementation of activities beyond its
borders.
A global orientation brings about three key advantages for firms adopting a global
perspective, the first of which centers around economic concerns. The multinational
corporation (MNC)—contrasted with a firm operating only in domestic markets—can
increase production levels, thereby fostering standardization and economies of scale.
The second advantage of globalization is related to cultural change. Global media and the
pervasiveness of the Internet have created a global consumer culture, one where distinct
localized preferences for particular goods and services have been replaced by higher quality
and cheaper offerings bearing global brands.
“Thinking global” enables a firm to seek out and recognize and pursue such opportunities
with greater effectiveness.
Localization implies that a firm gives its primary attention to issues at the local
level.localization suggests that strategies reflect a strong effort to tailor firm activities to the
specific needs of each location.
