A Theory of Industrial Development Rostow’s Model of Development

The choice between various development alternatives is influenced by the type of political system governing a country.

Rostow’s stages of economic growth identifies 5 stages of development, applicable to all societies, but viewed from a market perspective

The Traditional Society The essence of a traditional society is that the people have little collective ability to raise their economic productivity because they lack the technical and scientific knowledge to do so

These societies devote a high proportion of their resources to farming. Political power is concentrated in the hands of the landowners. Family and inheritance are highly valued.

Preconditions for Takeoff It takes time to alter a traditional society because old beliefs are difficult to challenge.

Signs of the preconditions for takeoff are growing acceptance of technology, a rapidly increasing population, the growth of education, rise of banks, and the growing efficiency of farming

The diminishing number of farmers must be able to feed the swelling urban populations and prevent unemployment in the towns by demanding industrial products

Takeoff Takeoff occurs when the bulk of society has come to accept and favor the idea of change. Output per person increases enormously, and real wages rise.

The country as a whole benefits from advances in a few leading industries Another characteristic of takeoff is the widespread diffusion of literacy which results from compulsory education

Health care improves and life expectancy increases

Drive to Maturity This is a long period of sustained change. Technology gradually spreads throughout all areas of economic activity

Society adapts to the changes, universal education and medical facilities are created as well as democracy becomes established The government begins to appropriate larger proportions of the national wealth

` As the old ways die, people begin to fell free in their choice of beliefs

The Age of High Mass Consumption During this age, the leading sectors shift more toward services, especially those of finance, information and government

Material production continues, social welfare becomes a higher value, and people talk of the quality of life rather than of the standard of living.

There is a broad range of choice, not only for the individual, but for the whole of society

World Regional Geography, Tenth Edition Copyright © 2010 Pearson Education, Inc. 18 Information Revolution How information is produced, stored, accessed, and applied Two broad drivers 1. Microprocessors 2. Telecommunications Both good and bad impacts  More information  “Super-empowered angry people” (Friedman) Impact on development Will the cost advantages of digital technology to corporations help or hurt employees in developing countries? Cost–benefit of location decisions–Wrapped up in globalization

World Regional Geography, Tenth Edition Copyright © 2010 Pearson Education, Inc. 19 Malthusian Theory Two promises 1. Humans tends to reproduce prolifically/geometrically. 2. The capacity to produce food and fiber expands more slowly, that is, arithmetically. Therefore, population will eventually exceed food supply unless population growth is checked. Three stages 1. Stage 1–Human needs are not as great as production capacity. 2. Stage 2–Production capacity and increased human needs are roughly equal. 3. Stage 3–Population has grown to the point where its needs can no longer be met. Assumptions  Malthus assumed that people would reject birth control on moral grounds.  He could not foresee the impact of the industrial revolution.

World Regional Geography, Tenth Edition Copyright © 2010 Pearson Education, Inc. 20 What Is Globalization? A growing integration and interdependence of world communities through a vast network of trade and communication Associated with a wide range of technological, cultural, and economic outcomes affecting our daily lives Not a new phenomenon Response to two major forces 1. Technology change 2. Global capitalism Free markets Rule of law

World Regional Geography, Tenth Edition Copyright © 2010 Pearson Education, Inc. 21 Major Players Transnational corporations (TNCs) Countries Laborers Consumers Regulatory organizations and civil movements As industry moves out of first-world countries, industrial countries such as the United States and Britain have seen a decline in industry