1. Theories of Development
AP Human Geography
Spring 2014

2. Development Theories Is the path to development a direct line?
Many began to consider the question in the 1930s
There are two leading schools of thought:
i) Rostow’s stages of economic growth theory
ii) Dependency theory

3. W.W. Rostow A Cold War warrior Celebrated capitalist
Economic historian
Taught at MIT & the University of Texas at Austin
Became adviser to Presidents John F. Kennedy & Lyndon B. Johnson in the 1960s

4. Rostow’s stages of growth
Wrote The Stages of Economic Growth: A Non-Communist Manifesto, 1960
Political Purpose?
Much of the U.S. early development programs for the LDCs was based on Rostow’s book
A blueprint for economists seeking to “help” the LDCs reach their potentials

5. Rostow’s stages of growth
The process of development was seen as a series of successive stages through which all countries must pass
It required the right quantity and mixture of saving, investment, and foreign aid
Development became synonymous with rapid economic growth

6. Rostow’s Stages of Economic Growth

7. Two crucial factors underlying the model
Development in Southern & Eastern Europe and Japan had been modeled on Anglo-America & Western Europe. If they could develop, why not other countries?
Many countries in the LDCs have an abundance of raw materials needed in the West

8. Assumptions Assumes all countries start at the same level
Assumes that LDCs will achieve development by moving along from an earlier to a later start
Assumes the availability of natural resources in many countries in the LDCs
Assumes countries in the LDCs were expected to follow the same path taken by Anglo-America and Western Europe

9. Limitations Outdated Oversimplified
Economic theories and rules from the MDCs cannot be applied to places with different histories, cultures, and starting conditions
Perpetuates the myth of “developmentalism,” the idea that every country will eventually make progress toward high mass consumption.
It is unreasonable to compare the prospects of early starters with late starters

10. Limitations
Capital- Rostow suggests that capital is needed for a country to move from its traditional society (stage 1) to the further stages of development. However, there have been large injections of cash in many countries in Africa and Asia, yet poverty still persists.
Led to huge debts for many countries in the LDCs

11. Dependency Theory Emerged during the 1970s
Argued that the dynamic between the developed and developing world kept the LDCs poor and economically “dependent”
Global economic inequality is rooted in European colonialism
Puts primary responsibility for global poverty on rich nations

12. Dependency Theory
Dependency theory was an outgrowth of Marxism, which emphasizes an exploitation of one social class of the other
Many developing countries experimented with socialism, with the intent of nationalizing industries and narrowing the gap between the rich and poor
Wallerstein’s Core-periphery theory is central to dependency theory

13. Potential fallacies of development theories
The developing world is homogeneous, so growth will occur at the same rate everywhere
Growth equals development
Development performance can be measured using one or a few indicators
Development policies should be modeled on the West
“one size fits all”

14. Questions to think about
Is the idea of development inherently Western? If the West were not encouraging the “developing world” to “develop”, how would people in the LDCs think about their own economies?
Given the diversity of developing countries, do you think that there could ever be a simple, unified theory of development?
Is Rostow’s still relevant today? Explain
What are the advantages and disadvantages of Rostow’s and Dependency theory?