1. Chapter 14, continued Theory Regarding Development
Modernization Theory – rooted in work of Max Weber, Talcott Parsons, and Walter Rostow
Dependency Theory
World-Systems Theories – Immanuel Wallerstein; core-periphery models: Gunnar Myrdal & John Friedmann

2. Every country
can be positioned
at one of
these stages.
Rostow viewed
capitalism
to be the
proper type
of production
system for
this development
sequence.
Critics of
modernization
theory

3. Dependency Theory
Argues that the poor / periphery countries remain this way due to colonialism, in which terms of trade were unequal, labor remained unskilled and low-paid, and profit was extracted from colonies
Development of core countries is dependent on the underdevelopment of periphery countries
Imports tend to be high-value goods from the core
Policy to escape this “trap” has emphasized self-reliance, exclusion of TNC’s, promotion of import substitution, debt default
Criticism of dependency theory – sweeping treatment of all peripheral territory

4. World Systems Theory: dynamic capitalist relations, hegemonic power
Better diagram
than Fig
in current edition
of textbook

5. Core-Periphery: Shifting Scales
Global: Nation State Level: Developed-Developing
Urban Perspective: Global Cities (New York, London, Tokyo) - peripheral cities - e.g. Seattle
National: The Industrial NE Vs. the agriculture &
resource dependent South and West
Regional: Seattle & Portland as central-place core cities, rural peripheries
Local: Seattle CBD Vs. lower order urban centers

6. The classic core-periphery model: Myrdal & Friedmann
Demands from center for goods/services
yields payments to periphery
Abundant
Labor
Supply of materials and products
Periphery
Center
Abundant
Capital
Scarce
Capital
Capital flows to periphery
Shortage of labor in center creates
stimulus for labor migration from periphery
Scarce
Labor
Supply of labor from periphery will create labor
shortage in periphery and raise wages and incomes
Adequate
Labor
Adequate
Capital

7. Core-periphery Model: Spread Effects
Demands by Center for goods & services; labor movements; capital flows to meet investment needs: ? “Trickle-Down” leading to equilibrium?
BUT:
(1) Distance attenuating effects - related to transportation & communications
(2) Hierarchical impacts with stronger access to resources in higher order places

8. Core-Periphery Model: Backwash/ Polarizing Effects Overtake Spread Effects
1. Goods/Service purchase in periphery
(a) inelastic demand for peripheral goods
(historically owned by core industrialists)
(b) Offset by peripheral demand for goods and services produced in the core
2. Migration: historically selective
3. Capital: net flows often favor the core
Result: Convergence, Divergence, Persistent Imbalance

9. Backwash Circuits Capital Investment Migration and Employment
attracted
to center
Young workers
migrate
to center
Wider
Gap
C-P
Lack of
investment
in periphery
Aging
labor force
in periphery
Wider Gap
C-P
Retarded
growth in
periphery
Decreased
attraction for
new activity
Services and Infrastructure
Reduced Investment
and new jobs
in periphery
Smaller local
market, pur-
chasing power
Widened gap
between C-P
Decline in
local services

10. Development Strategies
Are based on the concept that developed countries can take actions that will help countries in the periphery
Expansion of trade with less developed countries
Private capital flows
Foreign aid from advanced nations (Figure 14.34)

11. Industrialization in the Developing World
East
Asia?

12. Industrialization in the Developing World
Very uneven – text notes 40 countries account for 70% of mfg. exports from developing countries. So, most countries have not shared deeply in this industrialization process
Fastest growth in countries shifting from an import substitution to an export-led strategy
Import substitution as a way of getting internal development – but markets are often too small & control often rests with foreign capitalists
Export led development, fueled by low tariffs on imports of inputs & duty-free exports, subsidized infrastructure and physical space, tax holidays, and abundant low-wage labor

13. Manufacturing
Centers in
East Asia

14. East Asian export processing
And special economic
Zones.
Also located in other countries
Much industrial capacity by
Multinational corporations
With operating systems
Between locally owned firms
And foreign owned companies,
Doing international subcontracting,
Or outsourcing: Nike

15. Export-led Industrialization, cont.
Strong reliance on female labor in many of these export platforms, especially in electronics
Sweatshops – often controlled by U.S. corporations such as Wal-Mart—push suppliers to push down costs & keep wages low and work days long (Some companies impose work standards)
East Asian Economic Miracle : education, high national savings, government support, land reform, export-focus, unique corporate institutions, U.S. development policy

16. Uneven Development in China
Not Per capita income
$1240
$8,300
$37,000
U.S. $37,691 IN 2011

17. India – Development Centers

18. Sustainable Development (1)
The need for a new path
The Malthusian Dragon rears its head IF the developing world “develops”
How to carve a sustainable development trajectory?
What adjustments to the capitalist model are needed?
Can the planet manage these adjustments?

19. Sustainable Development (2)
The process will involve “a shift away from understandings of nature as a free good and a sink for wastes and toward the understanding that it is a public good and resource and toward anticipatory techniques of environmental policy making, new roles for science in policy, and new legislative and regulatory frameworks emphasizing risk and uncertainty.” p. 406
This is a tall order: can the planet do it?