Third World Modernization, Dependency, and State Coercive Capacity

An examination of the mediating influence of the state on modernization & dependency in Third World countries. It is argued that the state serves as a coercive force when influencing development, particularly in the relationship between foreign capital & industrial growth. Data gathered from a regre...

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Journal Title: International Review of Modern Sociology Vol. 25; no. 1; pp. 1 - 18
Author: Satya Pattnayak
Format: Article
Published: Spring 1995
Summary: An examination of the mediating influence of the state on modernization & dependency in Third World countries. It is argued that the state serves as a coercive force when influencing development, particularly in the relationship between foreign capital & industrial growth. Data gathered from a regressive analysis of 92 Third World countries 1970-1985 indicate that external debt is important to industrial growth when levels of state coercion are high, though the opposite is true when state coercion is low. It is concluded that theories of modernization (which argue that external debt influences industrial growth positively) will hold true in cases where state institutions are strong & capable. Similarly, dependency theory (which argues that external debt influences industrial growth negatively) will hold true when state institutions are weak or incapacitated. It is suggested that this integrated model allows for a more nuanced interpretation of development issues that has been previously possible.
ISSN: 0970-4841