Unit 7: Industrialization And Economic Development Patterns And Processes Chapter 19: Topic 7.5 Flashcards
Focuses on the shift from traditional to modern forms of society. Assumed that all countries wanted to modernize, and would, at different speeds. Saw economic development as a linear progression in which countries moved from one stage to the next until they reached the final stage. Like the DTM model, this is a generalization based on how the US and Europe evolved. They both identify stages however, the DTM model looks at changes in # of people in a country and this theory is an economic model that focuses on how people live.
Rostow’s Stages of Economic Growth
Primary sector activities, uses limited technology, carries out local and regional trading and enjoys limited socioeconomic mobility. EX: English colonies in North America (17th century), medieval Europe, no country is in this stage today.
Stage: Traditional
Improves infrastructure, improves farming techniques and shifts towards commercial agriculture, exports agricultural and raw materials (international trade), diffuses technology more widely, starts individual socioeconomic mobility. EX: US early 19th century, Nigeria and Afghanistan today.
Stage: Preconditions for Takeoff
Develops major tech innovations, starts industrialization and primary sector begins to shrink, spread entrepreneurial mentality, begins to urbanize, initiates self-sustaining growth. EX: US mid 19th century, Germany, early 20th century, Brazil today.
Stage: Take-off
Creates new industries while strengthening existing ones, improves energy, transportation, and communication systems, sees economic growth greater than population growth, invests in social systems (schools, hospitals, etc.) EX: US late 19th century, Germany early 20th century, Brazil today
Stage: Drive to Maturity
Spends money on nonessential goods (consumerism), purchases of high order goods become common, desires to become a more egalitarian society, supports a strong tertiary sector. EX: US early 1920s-present, Japan mid-1950s-present
Stage: High Mass Consumption
1) Limited examples: based on American and European examples, does not fit non-Western cultures or noncapitalist economies
2) Role of exploitation: Suggests a linear change. However, developing countries need assistance of developed countries to develop. In some cases, countries might regress in economic development.
3) Lack of variation: Suggested all countries have the potential to develop. However, there are major differences between countries that might hinder that ability
4) Lack of sustainability: Assumed everyone could lead a life of high consumption without thinking about the repercussions that could have and its impact on sustainability.
5) Need for poorer countries: Countries that are in the last stage got there through exploitation of LDCs.
6) Narrow Focus: Does not address interactions between countries (globalization)
Criticisms of Rostow’s Model
Wallerstein attempts to explain the inequalities that exist within countries and regions through both political and economic elements that have significant geographic impacts.
World System Theory (Core-Periphery)
Countries do not exist in isolation but are a part of an intertwined world system in which all countries are dependent on each other. Argues that colonialism and neocolonialism are the cause of global inequalities.
Dependency Model
Economically advantaged countries in the world, headquarters of most large multinational companies and banks, higher-skill, capital intensive production, promotes capital accumulation, dominates semi and periphery countries economically and politically, locates factories and service centers in semi and periphery, benefits from international trade. EX: US, UK, Japan, Australia, Germany.
World System Theory- Core
Includes most middle-income countries (emerging countries), provides core with manufactured goods and services that the core formerly provided for itself, shares characteristics of both core and periphery. EX: China, Mexico, Brazil, South Africa, India.
World System Theory-Semiperiphery
Includes LDC, lots of jobs in low-skill, labor-intensive production and extraction, provides 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. EX: Afghanistan, Zimbabwe, Bolivia, Kenya, Laos.
World System Theory-Periphery
1) Little emphasis on culture- Focuses on economic influence but pays little attention to the pervasive influence of culture (movies, music, TV).
2) Emphasis on Industry- Based on industrial production but many countries have postindustrial economies based on providing services
3) Lack of Explanation- Suggests that countries can change their status but does not explain how
4) Limited Roles- Focused on role of countries, governments, and corporations. Ignores organizations (UN) and private, nonprofitable NGO (non-governmental organizations).
Criticisms of Wallerstein’s Model
Raw materials such as coffee, cocoa, and oil, that have not undergone processing.
Commodities
More than 60% of its exports are raw materials.
Commodity Dependence
