Development Theories Objective: Explain why some countries are more developed than others.

Development Theories Rostow Dependency Structuralist World Systems

ROSTOW Modernization Model Ladder of Development Stages of Development 1.What are Rostow’s stages? 2.What are some of the key assumptions of his model? 3.What are the criticisms? 4.Bonus: How might one country influence another’s development?

Do you Agree or Disagree? All countries will develop in a similar process. Some countries can’t develop because they don’t have the resources Countries that have been colonized will always be limited by the colonizer The cultural conflict and economic limits of a country means they will never develop

Rostow Stages range from agricultural based economies to service based economies Each country has some advantage that they can use in international trade to fund their development over time

Rostow’s Stages Traditional Society Pre-conditions to takeoff Takeoff Drive to Maturity Age of Mass Consumption

Rostow Criticisms Based on Western countries and their progress Does not take into account the effect colonialism had on colonies – may have stripped countries of valuable resources – multinational corporations owned resources Other barriers to development – gov’t corruption Does not seem feasible for ALL countries Do all countries pass through each stage consecutively? Did not account for global politics, colonialism, physical geography, war, culture, ethnic conflict Does development=consumption? Does not account for deindustrialization

Create a Venn Diagram Rostow’s Modernization Model DTM Create a Venn Diagram comparing Rostow’s Modernization Model and the DTM

DTM Review

What about the other development theories? Dependency Dependency Structuralist Structuralist World Systems: Wallerstein World Systems: Wallerstein Pol & Econ relations control and limit development. (Dollarization) Structure in the world have made change difficult. (Neo-Colonialism) 3-Tier Structure (C,SP,P) Not everyone can be equal. We can look at this in different scales.

Structuralist Theory (Neo-Colonialism) Industrial Revolution and colonialism made colonies dependent on colonizers After decolonization, flow of capital changed very little Major world powers control the economies of poorer countries even though poorer countries have independence

Structuralist Theory continued Economic differences are built into the system People built, organized and structured the world in a certain way that cannot be changed easily Development of global economy brought concentration of wealth in certain areas and unequal relations among places Makes it very difficult for poorer regions to improve their economic situation

Dependency Theory Major body of development theory created by structuralists The political and economic relationships between countries and regions of the world control and limit the economic development possibilities of poorer areas Development of core nations depended upon the underdevelopment of peripheral nations

Dependency Theory continued Colonialism created structures that caused colonies to become dependent on colonial powers Such dependency helps sustain the prosperity of dominant regions and the poverty of other regions Little hope for economic prosperity in regions and countries that have traditionally been dominated by external powers

Dependency Theory Criticisms Some traditionally “dependent” regions have made economic gains however Pays little attention to geographical differences in culture, politics, and society similar to Rostow Treats developing countries as passive victims Technological innovations increase economic productivity, creating a larger pie to be shared by all Inability to account for rising prosperity in newly industrializing countries (NICs) such as China

World Systems Theory Quick recap – What is the World Systems Theory? 3 tier structure – core, periphery, semi-periphery Core processes generate wealth because they require higher levels of education, more sophisticated technologies and higher wages/benefits Peripheral processes require little education, lower technologies and lower wages/benefits Does not assume that socioeconomic change will occur in the same way in all places but countries can shift from a peripheral position to a core position

What is the Solution to Development? PLAN 1: Self-Sufficiency Development Through International Trade PLAN 2: Development Through International Trade 1. What are the main ideas of each plan? 2. What are some examples of countries who have used the plans? 3. Problems with each plan?

What is the Solution? PLAN 1: Self-Sufficiency Spread investment in all sector and all regions in country. Limit Imports and Exports (tariffs, quantity, license). Government subsides to help some areas. Examples? The Problems with Plan 1: 1. Inefficient Capitalism: Even the weak survive? 2. Bureaucracy: Waste of time & money. Black market?

What is the Solution? Development Through International Trade PLAN 2: Development Through International Trade Sell what you have on the world markets! Take that $$$ and finance in other areas of development. The Problems with Plan 2: 1. Uneven Resource Distribution 2. Market Stagnation 3. Increase Dependence on MDC’s Examples? Four Asian Tigers (SK, S, T, HK) - What did they sell? Arabian Peninsula - What did they sell? Is it working? What does the WTO think about this?

What conclusion regarding development can best be inferred from the graph below?