Why are some countries poor? Low income countries face barriers to progress. These barriers may be economic, social or environmental. However, there are different theories about the causes of poverty and how societies can develop over time.

How might the development gap be closed? Lesson outcomes MUST (Target Grade C/B+): Describe Rostow’s modernisation theory. SHOULD (Target Grade A): Explain how societies develop over time (or don’t) using dependency theory. COULD (Target Grade A+): Identify limitations with both theories.

Rostow’s Model / modernisation theory Based on the experiences of Europe, North America and Australasia, Rostow believed that countries pass through five stages of development. Rostow’s model sees a path to progress that others simply have to follow.

HIGH MASS CONSUMPTION Rostow’s five stage model of economic development Time Savings and investment in industry Consumers enjoy a wide range of goods… DRIVE TO MATURITY Technology used throughout… TAKE OFF STAGE Investment and growth … PRE-TAKE OFF SOCIETY TRADITIONAL SOCIETY Government invests in infrastructure Most people work in agriculture …

What is predicted to happen to the employment structure in Rostow’s Model?

Criticisms of Rostow’s Model Some people are criticism of Rostow’s models: Outdated: developed in the 1960s Oversimplified: based on just 15 mostly European countries Ignores debt repayments which can prevent reaching take off. Ignores that developed countries exploited developing ones at their expense! Fill in the blanks to summarise the limitations. Bring on Wallerstein’s World Systems model…

Frank’s dependency theory Wallerstein believed that some countries are poor because of their past relationships with other countries, that development was about two types of global region – core and periphery, where poorer countries are dependent on the wealthier countries for their market. Periphery Developing nations Export mostly raw materials of low-value Depend on the core for their market. Core Developed nations Processes raw materials to make high-value goods.

Core Periphery Model

Wallerstein’s World Systems Model Complete the ‘fill in the blanks’ activity. Use this data to decide which part of the model each country should fit in. Does the data you used earlier support these conclusions? Exports Imports Australia Coal Iron Ore Gold Machinery Computers Telecommunications Mali Cotton Livestock Petroleum Construction materials Singapore Machinery Pharmaceuticals Petroleum Minerals Chemicals China Electrical goods. Data processing Radio Electrical Oil Medical Sri Lanka Textiles, Tea Rubber Textiles

Criticisms of Frank’s Dependency Theory Emergence of NICs. Countries that have once been peripheral or dependent on core developed countries have achieved economic growth e.g. India, China and Brazil. Development can be achieved while countries are involved in the world system and world market, with the right state awareness and interventions. Can you think of anymore limitations to the models?

Rostow’s modernisation theory Frank’s dependency theory Mini plenary Summarise how countries develop over time according to each theory. Rostow’s modernisation theory Frank’s dependency theory Five stages of development Country progresses through the stages Development through the employment sectors Developed countries exploit developing countries through capitalism Developing countries become poorer and underdeveloped The development gap widens . Which do you think put forward the better to explain development – Rostow or Frank? Explain your reasoning.

NeoLiberalism Time period: 1980’s Main ideas: Promote Free Market Economics (What are these???)

Neoliberalism Strategies Privatize all industry (what does that mean) Foreign direct investment (where has this been useful?) Reduced role of the state (this is the opposite of what type of economy?) Free trade (what is this??) Currency devaluation (why make money worth less???)

Sustainable Development Key ideas: Long term, damaging the environment is bad for the economy. Allowing multinational corporations to exploit workers does not help poor countries develop.

Sustainable Development Strategies: Partnership with developed countries Market mechanisms for environmental regulation (what would this be?) Resource conservation Renewable resources Loans to women and very poor (microcredit) Women’s and children’s rights Appropriate technology for all

Why are these two opposed? Neoliberals and those interested in sustainable development are often in conflict over the best course of action. Why do you think that is?

Make a four circle Venn Diagram to compare each theory.