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Historical Significances on Economic Development

History has profoundly influenced the state’s operations, tracing back to antiquity. Some historical events, such as colonization, early industrialization, and establishing trade roots, have played pivotal roles in shaping long-lasting advancement paths for countries. These historical periods or events left an indelible mark that manifests the state’s economy to date. Some historical events have contributed immensely to the dilapidated economy of some nations. For instance, the slavery trade still haunts some African countries because of the decline of the population, mainly in West African nations where enslaved people were captured and sold into slavery. Despite most nations developing new policies to address this predicament, most of their interventions still need to live up to the expectations. Therefore, this paper aims to demonstrate how states are prisoners of development regarding development. The paper will explore the influence of contemporary policies and market intervention concerning solving compounded dilemmas. Further, it showcases the significance of governance quality and political institutions in tackling historical heritages while citing practical examples of the impact of historical legacies on modern economic performance.

The statement that states are prisoners of history with tiny agencies regarding development implies that the formation of states called for war-making. For instance, European countries wedged to ensure they expanded their territories by colonizing other countries (Lecture notes 03. n.d, 24). War-making led to massive loss of lives and destruction of properties. Therefore, some of these detrimental impacts interfere with the development of the most affected counties. For example, the slavery trade was mainly triggered by expeditions along oceans. It opened the African continent with the spirit of adventure, prompting Western nations to stream in large numbers to colonize Africa (Lecture notes 03. n.d, 25). The idea infers that the quest of European powers to extend their territories and rule over Africans led to war battles, which rendered some of the colonies unrecovered from the impacts of those wars. The ruthless actions of European powers can still be witnessed through the depletion of major minerals in African nations. For example, some European powers applied brutal force to extort precious minerals from colonies and used them to develop their mother nations (Kohli, 2004, 378). Ideally, some of the conies have yet to fully recover from the European powers’ extortion of treasured minerals.

Moreover, the state’s makings through the extension of territories enabled the European powers to resort to acquiring enslaved people from West Africa and other parts of the world to use them for their own good. Some enslaved people were recruited to join the military, mainly deployed to deal with external threats and expand territories (Lecture notes 03. n.d, 24). Besides, some were recruited to participate in World War I and World War II. The damaging impact of acquiring enslaved people from different parts of the world was still eminent in the regions that were predominantly affected. Based on the lecture notes, “estimates suggest that by 1800, Africa’s population was half what it would have been without the slave trade” (Lecture notes 03, n.d, 25). The idea signifies that the slave trade led to a diametric decline in the African population that still manifests its enduring effect in terms of economic performance (Lecture notes 03, n.d, 25). Besides, there was a shift in gender roles in most parts of Africa where the slave trade mainly occurred, and women assumed male roles because males were captured in large numbers and sold out as enslaved people.

Diminished social trust is another historical legacy still manifest in contemporary society. Portuguese in the Kongo Kingdom is a practical example of this instance of diminished social trust (Lecture notes 03. n.d 26). As denoted in the lecture notes “growing demand for slaves, growth in numbers of private slave traders and merchants, competition for the throne led to a surge in slave captures and raiding” (Lecture notes 03. n.d 26). The concept indicates that due to the increased need for enslaved people, many people were kidnapped and forced into slavery. The numbers of slave traders escalated rapidly, making several people targets for slavery, even the noble and affluent families (Lecture notes 03. n.d 26). The impact of diminished social trust manifests itself in modern society through the current slavery of human trafficking. Where the victims of these inhuman activities have become vulnerable to such dangerous actions in a similar way that the enslaved people were susceptible to their slave captures (Lecture notes 03. n.d, 24). Furthermore, corruption has become a thorn in the flesh for the economic development of most nations. The greed and egocentrism of politicians have forced them to loot public covers for their gains without considering the lives of the majority of the populace they represent. For example, based on the statement that states are prisoners with tiny agency when it comes to development, this explicitly reflects the attributes of weak states (Lecture notes 02. n.d, 23). These corruptions can be traced back to antiquity, and taming them has become a nightmare because they are profoundly grounded in the regime system.

Modern policies have a significant impact on economic development. For example, The Washington Consensus suggested several interventions to aid economic development (Lecture notes 04. n.d, 9). The dogmatic belief proposed a market-determined interest rate, which was believed to be imperative in dealing with issues of interest rates that were some of the predicaments caused by historical periods and events, especially in developing nations. Citing from the lecture notes, “market-determined interest rate is mainly driven by two fundamental principles of trade liberalization (lower tariffs) and competitive exchange rate to promote trade, thus leading to economic development “(Lecture notes 04. n.d, 9). Moreover, Openness to foreign direct investment is a modern policy that can be applied to improve most developing countries’ economic performance. The policy emphasizes the need for developing nations to welcome foreign investors to invest in their countries to promote the production of goods and services. This policy is mainly guided by two aspects: privatization and deregulation. For example, deregulation stresses diminishing regime power in specific industries to promote competition (Lecture notes 04. n.d, 9). The impact of this deregulation has been witnessed in developing nations, especially in the education sector and transport industry. On the other hand, privatization applies through the exchange of entity ownership from the government to the private sector. Modern policy has played a pivotal role in ensuring improved services and contributed to economic development in industries like airport operations.

Despite the arguments that free markets are the key to growth and development, some repudiate this claim. The lecture notes indicate that “the free market has led to the dramatic increase in government spending over the period” (Lecture notes 04. n.d, 11). The concept infers that the rise in government spending and expenditure on social protection over the last decades refutes the perception that market intervention of the free market has positively impacted various nations (Lecture notes 04. n.d, 11). Besides, a free market, if not controlled efficiently, can lead to environmental deterioration because they may prioritize short-term economic attainment over environmental conservation. For example, resource mining can trigger environmental dilapidation, leading to long-term obstacles like natural resource depletion and climate change (Kohli, 2004 367). The free market as a modern policy towards economic growth has led to over-dependency, particularly in developing nations that have over-relied on developed countries for financial aid because of the free market, where the developed nations can access markets of developing nations due to their financial assistance. For example, China has become more commanding as an economic giant because of its access to various markets markets worldwide for its products and services. Therefore, this resonates with the statement from the lecture’s notes “that Free markets and globalization have contributed to that; think China after 1978” (Lecture notes 04. n.d, 11). The idea signified that the free market works to the advantage of other countries like China that use it to gain financial muscle over their counterparts.

Notably, stated political theory, offered by Atul Kohli and Bernard Click, provides a profound understanding of the complications of state development, with a concentration on the implications of governance quality and political institutions. The illustrations of empirical evidence and theory strengthen comprehension of the multilayered nature of state-building. Bernard Click embellished in his article titled In Defence of Politics that politics is a critical and discrete human activity that plays a pivotal role in shaping societies (Crick, B., 2005, 11). The author analyzes the contempt towards politics, accentuating that it is not just a minor aspect but a changing force indispensable for honest freedom. For example, Crick’s theoretical stand highlights the significance of acknowledging politics as an essential and exceptional factor in the human condition. Click argued that “politics is too often regarded as a poor relation, inherently dependent and subsidiary; it is rarely praised as something with a life and character of its own” (Crick, B., 2005, 11). The quote implies that most people associate politics with bad intentions and outlook on its forces and impact concerning human good. Therefore, politics, as a factor of genuine freedom, focuses on human growth and economic flourishing.

On the other hand, Atul, in his book “Understanding States and State Intervention in the Global Periphery,” explores the experimental proofs associated with late fall industrial development in third-world nations (Kohli, A., 2004, 369). The author’s study stresses the obligation of the state to prompt and obstruct industrial development. For example, Kohli discovers the impact of elements like indigenous entrepreneurs, global economic conditions, and national markets, offering an experiential understanding of diverse trajectories of state growth. Kohli claimed that “social structural or societal conditions vary across developing countries and that these variations in turn influence development patterns are important claims” (Kohli, A., 2004, 369). The above quote demonstrates that economic development is primarily influenced and shaped by social structures, which may vary from one nation to the other.

Under the case studies, the chosen two global South countries are Afghanistan and DRC. Congo Case

Afghanistan Case

The historical implications of Afghanistan still manifest through the current struggle that the nation goes through concerning civil wars. For example, the nation’s colonial events and periods reflect the political rages to date. Afghanistan’s historical brawls influence its contemporary governance (Lecture notes 02. n.d, 38). For instance, the pilling cases of mismanagement of public funds in government offices are a dilemma that is linked with historical consequences. Citing lecture notes, it is exhibited that a “vast amount of foreign aid post-2001 fed into corruption” (Lecture notes 02. n.d, 38). The quote mentioned above delineates scenarios of the historical repercussions of the development of Afghanistan, given that the country has been associated with several economic hindrances actions such as violence, wars, and dissensions among ethnic groups concerning political wrangles (Lecture notes 02. n.d, 38). Besides, Karzai’s presidency demonstrates the struggle for de facto rule, stressing the continuing difficulties stem from historical legacies.

DRC. Congo Case

The Democratic Republic of Congo (DRC) acts as a practical case study concerning the historical influence on present economic performance. The effect of the extraction and exploitation of resources under the Belgian regime in Congo is still felt in the country’s economic landscape. For instance, mining the precious resources mainly benefits Western Europe countries while leaving Congo nursing wounds (Kohli, 2004, 369). The concept implies that the Western Nations that are involved in the extraction of the mineral resources in Congo have used their influence to fund the locals or indigenous with aminations, arteries, and weapons to distract the focus of the locals to civil wars (Kohli, 2004, 403). This presents the perfect action for the indigenous to lose focus on significant issues and become engrossed in a never-ending civil war battle. At the same time, the involved big players benefit immensely from the mining activities. For example, the Western nations ally with some locals to overthrow and weed off sound-mind politicians who they feel threaten their interest in the minerals (Kohli, 2004, 367). Congo continues to be less developed because of the need for good leadership that can be traced back to antiquity during the colonial period. Moreover, the impoverished state of Congo may continue to exist because of the profound influence and interest of some Western countries.

Conclusively, based on my analysis, I firmly concur that statement states are prisoners of history with tiny agency when it comes to development. The above illustration presented logical justification ranging from the historical events that hinder the economic flourishing in the developing nations. Weak states associated with the colonial regimes, which the current government has inherited, explicitly indicate the statement. Corruption and poor leadership culminated in cases of mismanagement, and the public covered back the claim. As much as some modern policies have had a profound influence in fostering economic development, especially the dogmatic belief (The Washington Consensus) proposes suitable interventions towards economic growth. I fervently believe that there is still much to be done to ensure that historical events that impose detrimental impacts are dealt with head-on. My evaluation based on the free market is that despite its advantages for economic growth, it also deters economic thriving to some extent. I also ardently believe that the empirical evidence based on the political theory from both Atul Kohli and Bernard Click plays an integral role in gaining insights into the intricacy of state development. Consequently, the case studies of two global southern nations, Afghanistan and DRC. Congo is a practical scenario of states that are prisoners of history with tiny agencies regarding economic development.

References

Crick, B., 2005. In defense of politics. A&C Black. Pp 11-28

Kohli, A., 2004. State-directed development: political power and industrialization in the global periphery. Cambridge University Press. Pp 367-425.

Lecture notes 02. (n.d). THE ORIGINS OF NATION-STATES (AND STATE-NATIONS). Pp 1-40

Lecture notes 03. (n.d). COLONIALI SM AND EXTRACTION. Pp 1-32

Lecture notes 04. (n.d). STATES AND MARKETS. Pp 1-31

 

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