Definitions and examples of the theory of Development: A review of dominant theories

within the context of tourism development.

Theories of development and their definitions have changed over time. Until recently they
predominantly followed Euro-American models of development and were focused on
economy. The theories assumed that developed nations value standards were superior to
those of the developing nations. From the 1960s, the tourism industry was, and still is, seen
as an effective developmental growth-pole, and tourism has been used by many countries to
improve their economic development (Telfer and Sharpley, 2008). However, the processes
that produce this development in tourism are affected by economic, socio-cultural and
political forces. This essay uses dominant theories and frameworks of development,
Modernisation, Dependency, Neo-liberalism and Alternative Development. It will suggest
that tourism has evolved within a trajectory of these dominant development theories and it
maps the conceptual changes from development predominantly concerned with economic
growth and inequality to those concerned about social, human and environmental issues.
The development frameworks provide a basis for understanding how tourism has developed
and works as a development tool.
What does development mean? The term itself is contested from many different viewpoints,
and it will have different connotations when used by different cultures and nations. Todaro
and Smith (2011) stress that development can be seen as a multidimensional process that
involves major changes in economic growth and national institutions, as well as
opportunities for all and individual aspirations, and the eradication of poverty at regional
and national levels. The United Nations Development Program (2013), sees development
as improving well-being through the generations by providing more choice, greater freedom
and opportunity for participating meaningfully.
One of the most popular development paradigms, Modernisation theory (MT), dating back
to the 18th centurys Age of Enlightenment, gained popularity among scholars and
economists in the late 19th to mid 20th centuries. At the end of World War II and the
reconstruction of Europe, MT was seen as an extension of growth theory grounded in
Keynesian economics (Brohman, 1996). This interventionist approach considers
development as reformist states cooperating with foreign investment over development plans
(Brohman, 1996). The process of socio-economic development, steeped in Euro-American
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(Western) ideology, deemed any country with non-western or traditional social, political
and economic structures as undeveloped or underdeveloped. As a main proponent,
Rostow (1960) developed a model primarily based on the Euro-American experience
suggesting that a country's economy and society pass through a series of stages, and a
modern society has political and economic features such as democracy, capitalism,
consumerism, high tax and investment rates, and social features such as high literacy and
urbanisation, and psychological features such as rationalism. In order to develop and achieve
economic growth, the underdeveloped countries were required to go through
industrialisation, creating change in their social and cultural structures and adopt new
technologies, while working under the assumption that non-West countries only develop if
they embrace relations with the West (Rostow, 1960).
MT was thus used as justification that economics itself could be used as an index for social
reform in which economic growth would trickle down to the masses in the form of jobs
and other economic opportunities improving quality of life. Citizens of powerful and
wealthy modernised states have higher standards of living and new technologies, fast and
efficient production make modernisation the preferred societal condition. In the context of
tourism, modernisation development strategies generated foreign capital as well as
increasing employment and facilitating the transfer of technology (Telfer and Sharpley,
2008). These economic benefits were the focus of tourism development and tourism acted as
a growth-pole down which resources trickled thus increasing the tourism multiplier (Telfer
and Sharpley, 2008). Just as modern society focuses on mass consumerism, large-scale mass
tourism was about mass consumption, with the development of large resorts around the
world. Cancun, Mexico and Benidorm, Spain are examples of this approach (Thompson
(2014).
Modernisation encourages socio-cultural changes, as economic growth demands these
changes as a foundational stage for further economic development. Similar to imperialism
and colonialism, tourism offered, to a certain extent, improvements in health care and the
supply of potable water, better infrastructure and sanitation, and better housing and
education (Harrison, D., 1995). Within tourism complexes and enclaves such benefits are
obvious but the extent to which these benefits extend from tourism to the host population's
daily life is doubtful giving rise to spacial inequality. For example, resort workers at Richard

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Bransons luxury Necker Island live amongst the poor community on a neighbouring island
(BBC, 2015).
The theory suggests economic development and modernisation of living standards should
go hand in hand, and lifestyles and living standards are measured against Euro-American
models. However, such deterministic development controls and limits human interaction,
and not vice versa. Human agency rather than tradition controls the speed and severity of
modernisation and societies undergoing this process arrive at forms of governance dictated
by foreign, pro-Western, or abstract principles, leading to a decrease in the importance of
desirable traditional and cultural beliefs (Mathieson and Wall, 1982).
While economic modernisation is measured against Euro-American economic models,
cultural modernisation is judged differently. Modernisation of culture and lifestyles are
criticised as 'cultural imperialism', 'demonstration effects' and 'assimilation'. Tourists often
want to experience the past and nostalgia while travelling internationally, they do not
approve of loss of traditions and charms through modernisation and tourism development
needs to protect cultures and value systems of host communities, and be a catalyst for
strengthening cultural identities since these traditional communities become invaluable
commodities. Condemning poor or traditional institutions without seeing their worth, fails
to acknowledge indigenous patterns of development and does not understand that the
problems of development can differ greatly from those of Europe and North America. The
tourism industry, does not modernise everything since indigenous lifestyles and cultures are
valuable commodities which are sold as tourist attractions. Ironically, tourist development
prohibits those cultural changes that are a precondition for economic development (Burns &
Holden, 1995).
Modernisation theorists posit that underdevelopment and poverty are caused by these
traditions of a nation and do not consider the role of developed nations and multinational
enterprises (MNEs) in the creation and widening of the gap between rich and poor
(Harrison, 1995). Post-colonial Neo-Marxist critics opposed Modernisation, saying that
instead of encouraging development, relationships with the capitalistic West actually has the
opposite effect, leading to poor economic growth with social and cultural impoverishment
blamed on the inability to adopt capitalist models of production (Harrison, 2004).
Concurrent with Modernisation, Dependency theory (DT) was popular during the late
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1960s and 1970s. Composed of a variety of related theories, it focuses on inequalities

between capitalist core countries, and peripheral developing countries of the South. The
periphery economies are dependent upon the expanding economies of the core where
wealth is accumulated (Willis,K., 2011). Economic policies that create the diffusion of
development from the West to the peripheries under the cloak of modernisation are seen as
imposing structural change and reinforcing elites as agents of control. Dependancy theorists
criticise this diffusionist paradigm as not relating to existing conditions in contemporary
under-developed regions and several researchers have noted that forms of dependent
development emerging (Briton 1982, 1982; Briton, 1989; Milne, 1997).
In the periphery, insufficient capital, low investment and productivity, create an on going
cycle of poverty (Potter et al., 1999) with peripheral tourism exploited and controlled by the
industrial core regions. Consequently, tourism development, for example in many island
destinations, is similar to the economic dependency of neo-colonialism where rich Western
societies dominate the tourism industry of under-developed destinations by exploiting the
resources of tourism enclaves. Such as, in the Caribbean and Thailand, in Kuoni and
Thompson resorts (TUI, 2014; Kuoni, 2014). DT suggests that because of historical
unequal relationships between rich and poor countries, developing nations are kept in a state
of underdevelopment. Development projects foster economic dependency of developing
countries in three main ways, through (1) technology produced in developed countries: (2)
reliance on foreign investment and creation of huge debts and (3) leakage of foreign aid
revenues, where interest payments on foreign loans means money is routed back to
developed countries (Milne, 1997). High rates of leakages associated with international
tourism reinforce this dependency and vulnerability of developing nations.
The events and control mechanisms in core countries influence tourism development in
peripheral countries. These controls manage both the movement of tourists from core to
peripheral, and have power over operations of hotels or even whole resorts (Britton, 1989).
Tour operators in core countries have enormous financial resources which means they
impact greatly on occupancy rates and spatial distribution and movements of tourists in the
receiving destinations. Additionally, many of the international class hotels are operated by
Western MNEs. Din (1990) points out that this is not always the case and cites Penang,
Malaysia where locals own several of the luxury international standard accommodation
chains. These dependency relationships have been addressed in government run schemes
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whereby some newly independent states pursued stateless tourism development programs
with domestic hotel chains Din (1990).
Tourism in developing countries is usually concentrated in capital cities and other
metropolis where tourism and non-tourism business headquarters are found (Britton, 1982)
These city headquarters have direct contact with tourists in the principal tourist markets and
thus they can control the tourist flow chain trough technology and marketing (Britton, 1989).
They arrange the accommodation, transportation and excursions for package tours, in this
way dominant tourism sectors and squeeze out smaller enterprises by controlling tourist
spending and movements. They cannot, however, control all tourist consumption (for
example purchases of entertainment, services and other items.). Headquarters, branch
offices and small-scale tourism enterprises form Brittans (1982) three-tiered model of Third
World tourism. He argues that foreign corporations control the tourism industry. Thus,
according to dependency theory, tourism is an industry like any other, which is used by the
developed countries to perpetuate the dependency of the developing countries. Instead of
reducing the existing socio-economic regional disparities within the developing countries,
tourism reinforces them through its enclave structure and its orientation along traditional
structures (Oppermann, 1993, p. 540).
While such critiques gave modernisation theory a battering in the 1970s, the 1980s saw a
rapid growth in support for a revamped form known as Neo-liberalism (NL). NL is a free
market political and economic theory which advocates free trade though competitive global
markets. Its doctrine advocates that economy must not be restricted by the state, that
barriers to the free flow of trade and capital must be removed. De-regularisation,
privatisation and market based development are its characteristic features. Scant attention is
paid to principles of self-sufficiency and self-determination (Hall, 2007). It was popular in
the mid 70s and 80s as it meant that governments (particularly Western ones) were able to
earn foreign capital. Neoliberal tourism MNEs, such as hotel chains, played a major role in
attracting foreign capital, they improve national and local economies and employment and
improve infrastructure in tourism areas (Hall, 2007). However, the lessening of state
involvement resulted in less spending on social programs such as health, education, welfare
and environment, and limited the power of trade unions. Not only did this put a brake on
development, it also allowed MNEs to exploit labour and the environment for their own self
interest (Hall, 2007).
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This imposition of NL on developing countries by international funding organisations, the

IMF, World Bank and WTO (Harvey 2005), has been criticised for the changes it brings
about. For example, as a result of Structural Adjustment Lending Programs (SALPS)
governments had to embrace neoliberal doctrines resulting in the cutting back on
government spending as mentioned before. Although SALPs have now been replaced by
Poverty Reduction Strategy Papers these too bring changes to developing countries (Harvey
2005). In Peru, state spending on the tourism industry was reduced drastically and the
Tourism and Commerce Ministrys employees were cut from 2700 to 300, state owned
hotels were privatised and the governments tourism school set fees (Desforges, 2000).
Globalisation, a consequence of neoliberalist economics, sees the appearance of Western
chains like Pizza Hut, and McDonalds in centres of tourism. These centres also receive
funding for massive development of infrastructure (Bauman, Z. (1998), funding which is not
received for development in other areas creating spatial inequality. With the erosion of
power of the state the world economy is increasingly controlled by MNEs. The Wests
neoliberal policies have resulted in Neo-liberalisation in tourism development and has
increased the power of private sector MNEs such as multinational tour operators, hotel
chains and airlines in developing countries (Milne and Ateljevic 2001; Desforges, 2000).
Multinational hotel chains acquire other hotel chains, airlines form global alliances (Sinclair
and Stabler, 1997) and cruise ships fly flags of convenience and these private sector
multinational tourism companies can exploit the less strict labour and environmental policies
in developing countries.
Investment incentives are offered by developing countries since there is fierce competition
between them to attract tourism developers. These can include tax benefits, repatriation of
profits and import allowances (Sinclair and Stabler, 1997). This means that wealth
generation is easily diverted away from benefitting host populations and the country as a
whole. Power is given away to the rich developed countries and their tourism MNEs.
Indeed, tourism MNEs are not required to achieve any significant improvements in a local
communitys well-being or human development. On the contrary the mass tourism
generated by MNEs can do much harm to many communities, their culture, their heritage
and their environments. Moreover, individuals and communities become dependant on the
income generated from such tourism with potentially disastrous effects in global downturns
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or changes in destination popularity which can result in cutting back by multinationals.

There is no attention given to developing self determination or self sufficiency. In addition
to this cultural decay, spacial inequality is also a consequence of mass tourism. For example,
in Akumal, in the Mexican Caribbean, European and American businesses aided by the
government have created spacial inequality by segregating Mestizo and Maya workers from
spaces designated for tourist use (David Manuel-Navarrete 2012).
During the 1970-80s, it was recognised that top-down approaches to development were not
reducing poverty in large areas of world. Instead of money and welfare 'trickling down' to
the poorest, rich Western groups were benefitting from economic development.
Development in terms of improved living standards and well-being needed rethinking. Aid
agencies began searching for more peopleorientated or grass roots approaches (Brohman,
1996). Alternative development (AD) approaches which did not focus exclusively on
economic growth emerged. Bottom up strategies focused on peoples basic needs such as
food, housing, education and health. Known as the Basic Needs Approach (BNA) it tended
only to lessen the symptoms of poverty rather than tackle its causes. Indigenous approaches
to development were recognised as well as womens roles in developmental processes and the
UN named 1975-1985 as the Decade for Women. Development took on a more local Grass
Roots approach with decentralised community-based initiatives which emphasised self
reliance and local participation and decision making. Non Government Organisations
(NGO) began working with the marginalised and with grassroots organisations helping to
mitigate costs of structural adjustments (Dernoi, 1981).
In the tourism industry, work is done in partnership with NGOs such as UK based Tourism
Concern, for example specific projects, service delivery investigations, policy advocacy in
developing countries (Telfer,D.J. and Sharpley. R., 2008). NGOs act as tempering
intermediaries between foreign mass tourism development at one extreme and small scale
locally controlled sustainable tourism at the other. Local empowerment is a key feature of
the AD paradigm. For example, in the Cambodian agricultural development case study
people had greater say about hoe they wanted to develop.
By the end of the 1990s, environmentalists were focusing on sustainability of development, a
concept that came from the late 19th century Conservation Movement (Hall, 1998).
Environmentally conscious tourists abhor social and ecological damage. The green
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movement argues for soft and human tourism and the green consumer began to raise
environmental issues in tourism (Hall, 1998). Tourism companies started to offer ecological
holidays, but the term sustainability has often been hijacked. Ioannides (2001) argues that
the International Federation of Tour Operators (IFTO) embrace of sustainability is a
marketing ploy and is more to do with profit. Global poverty reduction efforts gave rise more
recently to pro-poor tourism. In 2005 the UN WTO (2005) declared tourisms support in
achieving UN Millennium Development Goals. They aim to persuade the local private
sector to help community tourism programs.
During post-modernism, small tour companies take advantage of changing trends and offer
creative alternative tourism products. Inner lifestyle leisure pursuits offer new experiences
and personal growth for tourists and such tourists are also environmentally conscious
(Ioannides, 2001). The demand for environmentally sound holidays has given rise to
ecotourism, a new sector in tourism development.
Critiques of alternative development range from recognising that empowerment through
tourism is difficult to accomplish to the difficulties in defining and achieving sustainable
development (Sinclair, M. T., & Stabler, M. 1997). Lack of empowerment in tourism
entrepreneurship has meant indigenous populations are marginalised in Langkawi, Malaysia
for example (Din 1997). Alternative tourisms bottom up development incorporates a holistic
concept of development through its indigenous inclusiveness and local participation. For
example, indigenous Caribs have revived their old traditions, culture and crafts and,
recognising the need to protect the environment, they participate in ecotourism activities,
using raw materials from the forest to produce their handicrafts (Slinger, V. 2000).
A revival of a social-development approach, reflects The UN's adoption of sustainable
development and greater focusing on human development; economic development and
social development must occur simultaneously (Mapp, 2008). While some critics think
sustainable development places too much emphasis on the environment and economy
(George and Varghese (2007), the social development approach is in line with a human
rights-based development approach, which emphasises empowerment, improvement of
social conditions, capacity building and prevention of problems rather than remedial aid
and relief (Mapp, 2008). What needs to be developed varies greatly from one nation to
another, from one region to another, so development can follow the UN Millennium
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Development Goals and by being people-centred it can alleviate 'distorted development' and
globalisation effects on the poverty gap between the rich and the poor (Pillay, 2011).
Popular and pervasive Modernisation and Neoliberal development theories have tended to
assume that the Euro-American model of development is the holy grail, and they have
measured quality of life as a reflection of raised economic standards. Dependency and
Alternative development theories question this approach. Dependency theory highlights the
damaging effects on poor countries and highlights how development carried out according
to Western ideology diktats, benefits the core at the expense of the peripheral countries of
the South and its consequent negative effects on poor communities. Alternative development
frameworks move development from a top-down to bottom-up approach, from blanket,
homogenous strategies that are imposed across all countries and regions to more tailored
approaches that take account of the huge variety and differences in needs and situations in
indigenous communities and involves them in their own development. Alternative
approaches such as Grass Roots development decentralise and make use of local
intermediaries.
Tourism has an important role in achieving economic development goals but it also has a
role in fulfilling social, environmental and human development goals as elucidated in the
UN MDG. Despite criticisms of ulterior motives, much of the tourist industry has embraced
sustainability and is committed to reducing its carbon footprint and protectingsocio-cultural
characteristics of host communities.
Western economic policy and the deregulation of the banking system created the conditions
for the economic crash in 2008 and for the continuing globaldownturn. The lessening of
state and increasing power of MNEs is ongoing and the gap between rich and poor is
widening. Despite their strongly marketed claims of sustainable tourism, sensitivity to
human rights, gender exploitation and the marginalised and the recent growth of volunteer
tourism sector, tourism MNEs do not appear to contribute significantly to improvements in
well-being or human development apart from the benefits of economic development. On
the contrary, even with mass tourism in decline MNEs are creating more luxurious resorts
all over the globe, even to previously inaccessible places, which brings with it well
documented negative consequences of harming communities and their environment.

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However, all is not lost, activist groups such as Indignados (Guardian, 2011), which
originated in Spain and is now global and online Avaaz are protesting against global
inequalities and injustice (Avaaz, 2015). Awareness about the risks of climate change and
tourisms carbon footprint and impact on the environment has grown. It is not ironic that in
a free-trade world of rampant Western consumerism that instead of focusing on economic
development, development theories are championing grass roots strategies and focus on
social, environmental and human development, and that instead of imposing change from
on high, self reliance, self determinationand sustainability areadvocated. While there are
claims that tourism has a tendency to worsen and aggravate poverty-intensifying injustices
and inequalities in a free market environment(Growth versus Equity, 2007).
Modern tourists are more demanding but with mobile devices and social media they are
better informed than they have ever been. They are aware of global inequality and their
own role within it. There remains much to do, both generally and specifically in the tourism
industry to help development, howeverto change this awareness into changes of beliefs and
values, attitudes and behaviour. Whilst recognising that one cannot avoid considering
economy, todays world needs to develop a socially stable system in which human values and
a moral compass are cultivated. It needs development that recognises that all humans and all
societies and traditions have value, from which ever nation they belong and any society
developed in this way must surely lead to sustainable and ethical tourism. It must not be
forgotten that Tourism provides the space where rich and poor meet (Sharply, 2013).

Words 3660

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