1. Four Models of Development 1. Self Sufficiency Approach 2
Four Models of Development 1. Self Sufficiency Approach 2. International Trade Approach 3. Rostow’s Modernization Model 4. Wallerstein’s World Systems Model

2. 1. Self Sufficiency Approach aka “Keep your greedy little hands off my country you capitalist bastards!”

3. 2. International Trade Approach aka “Uh, maybe we could use just a little help (you capitalist bastards!)”

4. Self Sufficiency Approach International Trade Approach
When?
Other Names and Associations
Main Characteristics
Advantages
Problems
Examples

5. Self Sufficiency Approach International Trade Approach
When?
Most of 20th century
Late 20th century to today
Other Names and Associations
Main Characteristics
Advantages
Problems
Examples

6. Self Sufficiency Approach International Trade Approach
When?
Most of 20th century
Late 20th century to today
Other Names and Associations
Balanced Growth /
anti-neocolonialism
Modernization Model / Rostow
Main Characteristics
Advantages
Problems
Examples

7. Self Sufficiency Approach International Trade Approach
When?
Most of 20th century
Late 20th century to today
Other Names and Associations
Balanced Growth /
anti-neocolonialism
Modernization Model / Rostow
Main Characteristics
Spread investment as equally as possible through all regions of country and all industries and sectors of economy
protect domestic (home) industries through tariffs, import quotas and import licenses
Identify one or a few distinct or unique economic assets and resources, develop those industries, and… Use profits from your strong sector or sectors for more general development of country

8. Self Sufficiency Approach International Trade Approach
Advantages
Promotes balanced, diversified economy
Promotes independence from MDCs
Slow but fair growth (fighting poverty is # 1 goal)
Local industries benefit from international competition (forced to innovate)
Problems
Examples

9. Self Sufficiency Approach International Trade Approach
Advantages
Promotes balanced, diversified economy
Promotes independence from MDCs
Slow but fair growth (fighting poverty is # 1 goal)
Local industries benefit from international competition (forced to innovate)
Problems
Protects, rewards inefficient industries that don't have to compete or innovate on quality or price of their products
Increases prices of consumer goods
Huge government bureaucracies
Corruption
NEOCOLONIALIST! (still dependent on MDCs markets (buy my oil!) and for necessities (can't live off oil or copper!)
Economy not diversified (oil in Middle East, coffee, minerals in Africa) therefore vulnerable to market fluctuations
Profits from extraction don't get evenly distributed (corruption)

10. Self Sufficiency Approach International Trade Approach
Examples
India (best example but only up to 1990's)
China (until 1990's)
Africa
Eastern Europe
India (after 1990's)
“Asian Tigers/Dragons”: S. Korea, Singapore, Hong Kong, Taiwan (clothing/electronics)
Arabian Peninsula (oil)

11. Rostow’s Modernization Theory (aka “Rostow’s Ladder of Development” Model)

12. Walt Rostow's model from the 1960's assumes that all countries follow a similar path to economic development, passing through identifiable stages, (which, of course, he indentified). See if you agree with these assumptions.

14. Rostow’s Development Ladder

17. Rostow's Modernization Model of Development
Key Characteristics
Criticisms/Problems

18. Rostow's Modernization Model of Development
Key Characteristics
Criticisms/Problems
Basic idea: All countries follow a similar path of development through five predictable stages
Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs?)
Money from natural resources in LDCs will fuel their development

19. Can you think of any criticisms of Rostow’s Model
Can you think of any criticisms of Rostow’s Model? In particular, why might Rostow’s model be unsatisfying to human geographers who are trained to study phenomenon (such as development) using the concepts of a. scale (the relationship between one portion of earth to the whole) and b. connection (the relationship of phenomenon across space)?

20. Rostow's Modernization Model of Development
Key Characteristics
Criticisms/Problems
Basic idea: All countries follow a similar path of development through five predictable stages
Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs?)
Money from natural resources in LDCs will fuel their development
No context. Treats countries as autonomous units isolated from global forces. Development is not just based on what happens within a country (Mali not equal to Japan!)
Has a Western, Industrial Revolution bias (conditions for "takeoff" for Great Britain in 1750 don't apply to LDCs.)
No place in Rostow's model for war, political and cultural decision making.
Model assumes development is all good (what about social disruptions, loss of culture, environmental costs).
Need sixth stage: deindustrialization? Small is beautiful.

21. Immanuel Wallerstein’s World Systems Theory (aka Wallerstein’s “Core-Periphery Model”)

22. Wallerstein’s World System’s Theory Three related concepts: 1
Wallerstein’s World System’s Theory Three related concepts: 1. The Self-Sufficiency Model (as one way of avoiding the exploitation predicted by Wallerstein) 2. Neo-Colonialism (explains roots of today’s exploitation) 3. Dependency Theory (another name for this theory; periphery is dependent on core)

23. World-Systems Theory: Three Tiers
Core
Regions with higher levels of education, higher salaries, more technology
Generate more wealth in the world economy
Exploits Semi-Periphery and Periphery by exploiting cheap labor and raw materials and by doing so gains and maintains dominant position.
Periphery
Regions with lower levels of education, lower salaries, and less technology
Generates less wealth in the world economy
Exploited by Core and Semi-Periphery (Think: “Periphery sells low and buys high.”
Semi-periphery
Regions where core and periphery processes are both occurring
Exploited by the Core but then exploits the Periphery
Serves as a buffer between Core and Periphery

25. C. Wallerstein Four Key Points: 1
C. Wallerstein Four Key Points: 1. Exploitation is a function of the basic drive for profit in an interconnected global capitalist system. Development must be seen in this context. 2. The global capitalist market includes an international division of labor. This means industry can and will shift production from MDCs to LDCs in search of lowest labor costs (i.e. maquiladoras) 3. Raw materials and cheap labor flow from periphery to core. High profit consumption goods flow from core to periphery. 4. Wallerstein's model can be applied not only at global but also at local scale. (US Northeast= Core, US South = Periphery, etc.)

26. Who’s who in Wallerstein. Depends on who you ask
Who’s who in Wallerstein? Depends on who you ask. Here’s one interpretation.

27. Here’s another. Differences from previous map?

28. And a third. Differences
And a third. Differences? (and why can’t poor Greenland at least be something???)

29. E. Wallerstein's World Systems Theory may seem to just replace
E. Wallerstein's World Systems Theory may seem to just replace the terms "developed, developing, and underdeveloped" or "traditional society", "take off", and "high mass consumption" with "periphery", "semi-periphery" and "core". But Wallerstein's and Rostow's Modernization Theory are fundamentally different in two ways: 1. Wallerstein, unlike Rostow, doesn't say development is inevitable or predictable. In fact, Wallerstein holds that not all places can be equally developed or wealthy at the same time. In other words, Wallerstein, unlike Rostow, assumes an exploiter requires and “exploitee” Wallerstein, unlike Rostow, doesn't assume development will occur the same way in all places.