Models%20of%20Development

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Models of Development
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Whats a model ???

• A model is the standard
• Serves as a basis for comparison

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Models Weve Studied

• Demographic Transition Model
• Von Thunens
• Epidemiological Transition Model
• Ravensteins laws of migration

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International Trade ModelorRostows Development
Model
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Stage 1 Traditional Society
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Stage 1 Traditional Society
Mostly SUBSISTENCE agriculture based High
investment in NON PRODUCTIVE activities like
military and religion
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Stage 2 Pre-Conditions for take-off Initial
Investment
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Stage 2 Pre-Conditions for take-off Initial
Investment
Limited few invest in TECHNOLOGY and
INFRASTRUCTURE Examples TRANSPORTATION, WATER
SUPPLY, DAMS
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Stage 3 Take-Off Initial Success
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Stage 3 Take-Off Initial Success
LIMITED of industries become successful and
competitive globally. Generally TEXTILES and
FOOD production. Remainder of economy is still
TRADITIONAL.
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Stage 4 Drive to Maturity Technology Diffuses
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Stage 4 Drive to Maturity Technology Diffuses
Technology expands to many other businesses RAPID
growth Labor becomes more SKILLED and EDUCATED.
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Stage 5 Age of Mass Production Shift to
Consumer Good Production
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Stage 5 Age of Mass Production Shift to
Consumer Good Production
Economy shifts from heavy industry in STEEL,
ENERGY, to consumer goods (CARS, REFRIGERATORS)
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The Four Asian Dragons

• Followed the historical example of JAPAN.

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The Four Asian Dragons

• South Korea
• Singapore
• Hong Kong
• Taiwan

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The Four Asian Dragons

• South Korea
• Singapore
• Hong Kong
• Taiwan

Have focused on inexpensive clothing, toys, and
electronics. Moving to other HIGH TECH products
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Problems with Rostow?
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Problems with Rostow?
Difficult when RESOURCES are absent Markets are
not endless COMPETITION is high Based on
continual growth not necessarily
SUSTAINABLE Goods and services often reproduced
wasted when competition loses Historical theory
based on WESTERN Europes experiences. UNEVEN
resource distribution not all countries have a
wealth of natural resources. Market STAGNATION-
world markets are slowing particularly in MDCs
b/c population is increasing SLOWLY. Requires
LDCs to MARKET SHARE from other companies.
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Self-Sufficiency Model
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Self-Sufficiency Model
Promote growth in ALL sectors, not just
competitive ones. Encourage production for
DOMESTIC sale. Growth should be SLOW RESTRICT
competitive imports Reducing POVERTY is more
important than getting rich HIGH taxes RESTRICT
total number of imports and sometimes
exports. Regulate IMPORTERS (licenses, rules,
tariffs)
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India
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India
LARGE bureaucracy to administer rules Actually
MOVED AWAY from this recently
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Self-Sufficiency Problems
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Self-Sufficiency Problems
Inefficient small markets must be
SUBSIDIZED Who can tell me what subsidized
means? Unwieldy bureaucracy often ABUSED
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Financing Development
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Financing Development
Promotes ECONOMIC GROWTH
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Financing Development
Supposed to make money to repay loans but,
countries have DIFFICULTY repaying loans. Further
loans refused if default happens or restrictions
placed on societyRemember Greece and the EU?
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Financing Development
Supposed to make money to repay loans but,
countries have DIFFICULTY repaying loans. Further
loans refused if default happens or restrictions
placed on societyRemember Greece and the EU?
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Neocolonialism

• The economic control of LDCs by MDCs
• IMF/World Bank are criticized for this as well as
  corporations owned by MDCs

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Parallels between Rostow and the DTM...
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Parallels between Rostow and the DTM...

• Both show a countrys stages of development
• More traditional/subsistence in first stage
• Both follow stages and move consecutively
• Both deal with affects of industrialization
• Influenced by type of economic activity

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2001 AP Test

• Explain Rostows usefulness in understanding
  contemporary social and economic change.
• A countrys role in the world economy
• Colonial transportation networks
• Cultural differences
• Local social and class structures
• Use examples from the following regions
• Latin America, Sub-Saharan Africa and South Asia

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AP Test

• ROLE IN WORLD ECONOMY
• Rostow stage equates role to shift from resource
  export (early stages) to rise of industrial
  economy and mass consumption.
• Core-periphery vs Rostow
• Membership in supranational organization (OPEC,
  NAFTA)
• Labor exporting regions (Mexico)

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AP Test

• COLONIAL TRANSPORT NETWORKS
• External organization to colonizer Transportation
  focused on ports with links to centers of
  resource exploitation most important function
  is to link resource exploitation area to world
  market of local labor supply to world market.
• Limits the internal growth of transportation
  system related to settlement pattern
  (urbanization) to nature of colonial transport
  network no reason for colonial power to develop
  complete transportation network or modernize it
  hence neither economic diversity nor growth is
  encouraged.

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AP Test

• CULTURAL DIFFERENCES
• Religion Hindus may hinder development of
  middle class because of caste system preventing
  upward mobility
• Language Different languages may provide
  barriers to information flow and full
  participation in economic process

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AP Test

• CULTURAL DIFFERENCES
• Political Beliefs governments may wish to
  isolate their population from westernization to
  exert greater control over their subjects and
  territory
• Profit motive some populations may not move
  through stages because of a lack of interest in
  cash profit.

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AP Test

• CULTURAL DIFFERENCES
• Colonial Legacy departed colonial rulers left
  behind a social and economic system
  (neo-colonial) that concentrated the majority of
  wealth in the hands of a few and / or did not
  create a social infrastructure capable of
  allowing the population to engage in new forms of
  economic activity.

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AP Test

• CULTURAL DIFFERENCES
• Gender gender roles in cultures limit
  participation of entire population in economy
  thereby limiting growth potential.
• Instability and violence / war direct
  destruction of necessary population,
  infrastructure, wasting local wealth and
  discouraging investment from outside.

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AP Test

• LOCAL SOCIAL AND CLASS STRUCTURES
• Class divisions small elite group may control
  vast majority of wealth and have no incentive to
  invest in the new forms of economic activity or
  may prevent training of majority of population.
• Lack of emergence of middle class in countries
  with no middle class it is hard to have skilled
  labor and business people emerge who carry the
  economy to later stages or limited national
  market for locally produced products.

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AP Test

• LOCAL SOCIAL AND CLASS STRUCTURES
• Gender - gender roles within a state may create
  regional variations in economic participation or
  result in population growth that retards economic
  development.
• Ethnicity intergroup hostility may create
  situations where infrastructure is destroyed,
  population lost, or some groups prevented
  economic participation thereby preventing the
  country from moving from one stage to another, OR
  a groups may refuses to participate and the may
  hinder the rest of the countrys population from
  achieving the conditions necessary for
  advancement.