7.5 : Theories of Development (Pgs. 479-484) Flashcards
Rostow’s Stages of Economic Growth
Modernization theory that focuses on the shift from traditional to modern forms of society. The model assumed that all countries wanted to modernize, and that all would, though at different speeds.
Stage: Traditional
Characteristics:
- Depends upon primary sector activities (farming fishing, fishing, hunting) for subsistence
- Uses limited technology
- Carries out local or regional trading
- Enjoys limited socioeconomic mobility.
Examples:
- English colonies in North America in the 17th century
- Medieval Europe
- No entire country is at this today
Stage: Preconditions for Takeoff
Characteristics:
- Improves infrastructure (roads, electrical grid, water systems, etc.)
- Improves farming techniques and shifts toward commercial agriculture
- Exports agricultural and raw materials (international trade)
- Diffuses technology more widely
- Starts individual socioeconomic mobility
Examples:
- U.S. in the early 19th century
- Nigeria today
- Afghanistan today
Stage: Take-off
Characteristics:
- Develops major technological innovations
- Starts industrialization and primary sector begins to shrink
- Spreads entrepreneurial mentality
- Begins to urbanize
- Initiates self-sustaining growth
Examples:
- U.S., mid-19th century
- Japan, late 19th century
- Bangladesh today
Stage: Drive to Maturity
Characteristics:
- Creates new industries while strengthening existing ones
- Improves energy, transportation, and communication systems
- Sees economic growth greater than population growth
- Invests in social infrastructure (schools, hospitals, etc.)
Examples:
- U.S., late 19th century
- Germany, early 20th century
- Brazil today
Stage: High Mass Consumption
Characteristics:
- Spends money on nonessential goods (consumerism)
- Purchases of high-order goods become common
- Desires to create a more egalitarian society
- Supports a strong tertiary sector
Examples:
- U.S., early 1920s to present
- Japan, mid-1950s to present
Criticisms of Rostow’s Model
- Limited Examples
- Role of Exploitation
- Bias Toward Progress
- Lack of Variation
- Lack of Sustainability
- Need for Poorer Countries
- Narrow Focus
World System Theory (Core-Periphery Model)
Alternative model to Rostow’s. Dependency Model. This theory includes both political and economic elements that have significant geographic impacts.
Dependency Model
Countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other.
World System Theory - Core
Characteristics:
- Includes the economically advantaged countries of the world
- Includes the headquarters of most large multinational companies and banks
- Focuses on higher-skill, capital-intensive production
- Promotes capital accumulation
- Dominates semiperiphery and periphery economically and politically
- Located factories and service centers in semiperiphery and periphery countries
- Benefits greatly from international trade
Examples:
- United States
- United Kingdom
- Japan
- Australia
- Germany
World System Theory - Semi Periphery
Characteristics:
- Includes most middle-incomed countries, sometimes called emerging economies
- Provides the core with manufactured goods and services that the core formerly provided for itself
- Shares characteristics of both core and periphery
Examples:
- China
- Mexico
- Brazil
- South Africa
- India
World System Theory - Periphery
Characteristics:
- Includes the least-developed countries
- Maintains many jobs in low-skill, labor-intensive production and extraction
- Provides the core and semiperiphery with inexpensive raw materials and labor
- Receives jobs but few profits from manufacturing
- Attracts jobs by having weak laws protecting workers and the environment
Examples:
- Afghanistan
- Zimbabwe
- Bolivia
- Kenya
- Laos
Compare Rostow and Wallerstein’s Models
Unlike Rostow’s model, Wallerstein’s model does not suggest that all countries can reach the highest level of development, nor does it explain how countries can improve their position.
Criticisms of Wallerstein’s Models
- Little Emphasis on Culture
- Emphasis on Industry
- Lack of Explanation
- Limited Roles
Commodoties
Raw materials that have not undergone any processing (such as coffee, cocoa, and oil).