Models of Development Aim: Analyze various attempts to explain patterns of development. Do Now: Why are LDCs less developed than MDCs?

“If It Were My Home” Assignment www.ifitweremyhome.com Scroll down to the alphabetical list of countries, and click on each of your assigned countries. For each country, read through the data provided. For each of the points, there is an arrow on the right for “more info” – click on it and read the information provided.  For each country, write about a page answer for the following questions (two paragraphs total, minimum): In what ways does the data suggest this country is less developed than the United States? In what ways does the data suggest this country is more developed than the United States? What relevant information stands out the most or is the most surprising? Explain.

Rostow’s Development Model AKA Modernization Model Economist Walter Rostow – 1962 Economic development was a process that all regions of the world would go through and experience in similar ways Associated with classical liberalism / capitalism

Rostow’s Five-Stage Process of Development Traditional society – subsistence farming No countries are at this stage presently Preconditions for takeoff – innovation paves the way for development Takeoff – industrialization / urbanization Drive to maturity – technology diffuses and advances; workers more skilled and educated Age of high mass consumption – large middle class; industrialization developed to the point where goods and services are readily available and people don’t have to worry about having their needs met MDC = Stage 4/5

Critique of Rostow’s Model Not realistic to assume that countries develop in isolation from one another Countries’ economies are actually linked E.g., If one country’s economy is based on services and consumption, its food and manufactured goods are supplied by another country Countries create obstacles for other countries’ development Assumes that high levels of mass consumption is the development goal of every country Countries may prioritize other factors Political freedom Decent working conditions

Structuralist Theory The world economy has a set of structural circumstances that impede the development possibilities for poor countries Wealth is concentrated in certain areas Relationships among places are unequal  LDCs are too dependent on trade with MDCs These structural conditions are difficult to change Associated with the left

Dependency Theory A structuralist theory of development Colonialism caused colonies to become dependent on the colonial powers This enabled the colonial powers to become wealthy at the expense of the colonized Resources exploited and depleted Dependency persists even after independence May overgeneralize: not all former colonies/colonizers are the same Has a lot of overlap with…

World Systems Theory (aka - the Core-Periphery Model) …again

Wallerstein’s World Systems Theory: Immanuel Wallerstein, a U.S. social scientist, posited a world-systems analysis that unified the world economy with developed countries forming an inner core area, whereas developing countries occupy peripheral locations. Developing countries in the periphery have less access to the world center of consumption, communications, wealth, and power, which are clustered in the core.

Unevenness of Economic Development Core 2. Semi-Periphery 3. Periphery Regions with undeveloped or narrowly specialized economies with low levels of productivity Regions that dominate trade, control most advanced technologies, high levels of productivity and diversified economies Regions that are able to exploit peripheral regions but are themselves dominated by core regions

North-South Gap: Earth's six less developed regions are Latin America, Southeast Asia, the Middle East, East Asia, South Asia, and Sub-Saharan Africa. The world's more developed regions are Anglo-America, Western Europe, and Eastern Europe, plus Japan and the South Pacific. 12

FIGURE 9-68 CORE AND PERIPHERY This unorthodox world map projection emphasizes the central role that developed countries play at the core of the world economy.

Rostow vs. Wallerstein Explain three differences between Rostow’s model and Wallerstein’s model. Use one of the two models to explain the level of economic development in either Mexico or Brazil. Give two examples of how the core-periphery concept can be applied below the national scale.

Barriers to and Costs of Development

Development Gap Widening difference between development levels in MDCs and LDCs MDCs improving development levels faster than LDCs GDP nearly tripled in MDCs over last decade, but only doubled for LDCs Rate of population increase fell drastically for MDCs but only slightly for LDCs

Social Conditions Youth dependency ratio Poor nutrition Low life expectancy High IMR / CMR Poor sanitation Lack of access to education Especially for girls Trafficking

Foreign Debt

Political Corruption and Instability

Industrialization Export processing zones (EZPs)

Maquiladoras are an example of EZPs Raw materials shipped in; manufactured goods shipped back No tariffs Began in 1965; increased in the 1980s NAFTA increased even more Location is significant

Agriculture

Tourism