Unit 7 Topic 5 Flashcards
What are Rostow’s Stages of Development?
A model that analyzes the five steps that a country takes to move from an agricultural society to a service-based economy.
What is the assumption and critique about Rostow’s Stages of Development?
Assumption: Each country has some sort of comparative advantage
Critic: Does not account for colonial legacies or government corruption in developing countries
What is stage 1 of Rostow’s Stages of Development?
Traditional Society
What are some characteristics of the first stage of Rostow’s Stages of Development?
-The economy is focused on primary production
-There is little technical knowledge or infrastructure
-Low levels of productivity and income
-Based off of traditional methods of production and trade
-Little divisions of labor
-May have little to or no formal market system
-May see a lack of education and modern technology
-There may be a lack of legal and regulatory oversight
-Example: Rural areas in developing countries
What is stage two of Rostow’s Stages of Development?
preconditions to takeoff
What are some characteristics of Rostow’s second stage of development
-The country’s leaderships begins to invest in infrastructure
-Economic growth starts to be stimulated
Roads, bridges, ports and whatnot are built.
-A shift from from sustenance farming to more specialized and productive forms of agriculture
-Increase in productivity and income
-Example: South Korea and Taiwan in the mid-20th century
What is Rostow’s third stage of development?
Takeoff
What are some characteristics of Rostow’s third stage of development?
-Labor shifts from primary production to factories
-Industrialization happens
-Industrial sector grows
-Rapid and sustained economic growth
-Increase in productive and income
-Rapid expansion of industry and trade
-Migration from rural to urban areas
-Example: The U.S. during the 19th century
What is Rostow’s fourth stage of development?
Drive to maturity
What are some characteristics of Rostow’s fourth stage of development?
-Stage of economic development, technical advancements, and investments in education
-Manufacturing sector continues to be behind economic growth
-A rise in the service sector and specialization
-Rapid economic growth and an increase in productivity and income
-Standard of living increases
-A more diversified and advanced economy focused on innovation
-Example: Japan in the post-WWII period
What is the fifth stage of Rostow’s stages of development?
high mass consumption
What are some characteristics of Rostow’s fifth stage of development?
-Technical knowledge and education levels are high
-Economy becomes more industrialized and trade-based
-Service sector expands significantly
-Economy continues to grow at a slower and more sustainable pace
-High level of demand for consumer goods and services
-High developed and diverse economy
-Focus on social welfare and quality of life
-Greater level of economic and social equality
-Example: Modern day United States, Canada, and European countries
What is Wallerstein’s World Systems Theory?
A structural theory of economic development-omens that explains how the global economy is divided into a core, a periphery, and a semi-periphery.
What does the wallterstien’s world systems theory say about development?
-Core countries are the most industrialized and technologically advanced countries
-Periphery countries are less industrialized and have a more dependent relationship with the core
-Semi-periphery have some industrialization and trade connections with both core and periphery countries
What is the hierarchy Wallerstein’s world system theory
-Core > Semi-periphery > Periphery
-Core countries dominate and exploit the periphery countries for their own economic benefit
What are some examples of core, periphery, and semi-periphery countries?
Core: U.S., Western European countries, Japan
Periphery: Most countries in Africa and South America
Semi-periphery: South Korea, Taiwan, Poland, Czech Republic, other Eastern European countries
What is the dependency theory?
A theory that says that lower developed countries (LDCs) are highly dependent on foreign factories and technologies from more developed countries (MDCs) to provide employment and infrastructure.
What are characteristics of LDCs?
Earlier stages of economic development
Lower levels of income, industrialization, and technological advancements
What are some characteristics of MDCs?
More developed
Higher levels of income, industrialization, and technological advancement
What are some examples of LDCs and MDCs
LDCs: Afghanistan, Cambodia, Haifa, Malawi, Tajikistan, etc.
MDCs: Australia, Canada, Germany, France, South Korea, Sweden
