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
