1. Theories Regarding Development

2. A. Development Theories
1. “Liberal” Models (Modernization Theory)
Ex: Rostow’s Model
2. “Structuralist Models” (Dependency Theory)
- Cores & peripheries
3. World-Systems Theory (Immanuel Wallerstein)

3. Minerals in Africa
Although several African countries have important minerals, the world prices
of many of these have lagged the prices of industrial products, services, and energy.

4. A. Dependency Theory: Sub-Saharan Africa
Despite resources, sub-Saharan Africa severely lacks development
legacy of the colonial era
Mining companies
Lack of Political institutions
Ethnic problems
Biggest problem: imbalance between number of people & the food supply

5. B. Modernization Theory: The Rostow Model
5 stages of economic development
American economist
Developed model in s (geopolitical context?)
Studied 15 European countries
Believed ALL countries have the ability to break the cycle of poverty

7. Subsistence farming economy
labor intensive
limited technology & capital
Agriculture more mechanized
Emerging transport infrastructure
Entrepreneurs emerge

8. Industrialization increases…more secondary jobs
Growth concentrated in a few regions of the country… in one or two industries
New political & social institutions evolve
Infrastructural development (airports, roads & railways)

9. Technological innovation
Economic development spreads
Increase types of industry
Continued rapid urbanization

10. Rapid expansion of tertiary industries
Industry shifts to production of consumer goods

12. C. Criticisms of Rostow
Outdated and oversimplified (take your pill and blast off…)
Assumes all countries have same level of resources, population, climate
Ignores “foreign aid” & “development loans”
Underestimates effects of colonization & imperialism

13. Comparing Rostow’s Model to the DTM Model

14. D. Development Strategies
Create economic “self-sufficiency”
Development through “international trade”
Ex: Rostow’s model
3. Financing development
Ex: FDI (foreign direct investment)
loans

15. Self-Sufficiency
For most of 20th-century: self-sufficient “balanced growth”
China, India & E. Europe
India:
government owned businesses, trade barriers & subsidies to promote domestic manufacturing

16. The International Trade Approach
development calls for a country to use its comparative advantage to trade its scarce resources
Exs:
Oil-rich regions (Persian Gulf , Russia, Mexico)
E. & S.E. Asia?
Problem of dependency?

17. Embraced by most countries for stimulating development
Countries converted from “self-sufficiency” to “international trade” during the 1990s
Past 25 years world trade has tripled
Exs: India’s GDP: 7% per year during 1990s
China: 10% growth per year

18. Petroleum-Rich Persian Gulf States

19. Four Asian Tigers (or Dragons…)
South Korea, Singapore, Taiwan, & Hong Kong

20. World Trade Organization (WTO)
Established in 1995
Works to reduce barriers to international trade
Enforces trade agreements

21. Financing Development
LDCs borrow money to build new infrastructure
2 major international lenders are:
World Bank & IMF
Foreign Direct Investment
Microcredit loans to small businesses & women

22. Debt as Percent of Income
Many developing countries have accumulated large debts relative to their GDPs.
Much of their budgets now must be used to finance their debt.

23. Foreign Investment Flows
3/4ths of foreign investment flows from one MDC to another…

24. E. What is “sustainable” development?
Global Partnerships
Conservation
Renewable resources
Women Empowerment

25. Almost half the world — over 3 billion people — live on less than $2
Almost half the world — over 3 billion people — live on less than $2.50 a day.
According to UNICEF, 22,000 children die each day due to poverty.
Less than one per cent of what the world spent every year on weapons was needed to put every child into school by the year 2000 and yet it didn’t happen.

26. Student-Teacher Ratio

27. Physicians per Person

28. Human Development Index ( life expectancy at birth, GDP per capita, indices of schooling & literacy)

29. Literacy rate of women

30. Gender Differences in School Enrollment

31. Economic Indicators of Gender Differences

32. Women as Legislators
Over 20% of legislative seats are held by women in China,
some European nations, and several LDCs.