5.6 Political and Economic Change and Development

Development is multidimensional

Development means more than economic growth — it includes political stability, rule of law, human rights, and citizen well-being. Common measures include GDP per capita, the Human Development Index (HDI), literacy rates, and life expectancy. Countries pursue development through different paths, and success is often uneven across regions and social groups within the same state.

Paths and obstacles to development

States use strategies like import substitution industrialization (ISI), export-oriented growth, and market liberalization to spur development. Obstacles include corruption, weak institutions, debt dependency, ethnic/religious conflict, and reliance on a single export (e.g., oil). Globalization can bring investment and technology but also increases vulnerability to global market shocks.

Political change accompanies economic change

Economic modernization often pressures regimes toward democratization, as rising middle classes demand political voice, though this is not guaranteed (e.g., China's growth without full democratization). Political instability, in turn, can scare off investment and slow development — showing the two-way relationship between political change and economic development.

Key terms

Development

Improvement in economic well-being, political stability, and quality of life, not just economic growth.

Human Development Index (HDI)

A composite measure combining income, education, and life expectancy to assess development.

Import substitution industrialization (ISI)

A strategy of protecting and building domestic industries by limiting imports.

Export-oriented growth

A development strategy focused on producing goods for international export markets.

Modernization and democratization link

Economic growth often creates pressure for democratization via a rising middle class, but this outcome isn't guaranteed (e.g., China).

Try an AP-style question

Neoliberal reforms typically include…

1. privatization and free trade
2. nationalizing industries
3. raising tariffs
4. price controls