Theories of Development

Modernisation Theory - W.W.Rostow

'all nations occupy positions on a continuum which runs from traditional societies to modern societies'

 

-Rostow proposed that there were 5 stages through which all countries have to pass through in the development process

- suggests that higher levels of consumer demand, entrepreneurship and increased technological knowledge = higher levels of economic growth

 

 

Popularity



•  popular in the 1960s - during which post-WW2 economic boom provided hope of prosperity for all countries
• followed the belief that countries were following a slow but inevitable path to western prosperity
• provides governments with a clear path to development
• idea of 'take off' suggests rapid development
• economic growth provides jobs and increases standards of living

Criticism

• Eurocentric - suggests that all countries will follow the same pattern as MEDCs in Europe and N.America
• modelled on the wealthiest countries - LEDCs will most likely develop differently
• due to the economic crises of the late 1960s and early 1970s, the model became less fashionable
• focusses only on economic development, with quality of life becoming desirable once this is established which isn't necessarily the case - especially in countries with high cultural values
• technological leapfrogging may result in countries missing out a few stages
• industrial revolutions and economic growth can cause environmental degredation
• challenged by new theories...

 

Dependency Theory - Andre Gunder Frank

 

'Links between developed and less-developed countries are the cause of worsening conditions in the developing world'

'Underdevelopment is a consequence of the way in which the world economy works'

 



- In a globalised world, countries are interconnected through trade - some are winners and some losers
- countries become wealthy by exploiting the poorest nations through unfair trade
- Latin America's underdevelopment is due to its involvement in capitalist trade
- The elite groups within the continent which have acted in the interests of capitalists in Europe and North America were rewarded with relative wealth and power - this has created a 'dual society'

Positives

• industry in the 'periphery' (developing countries) given subsidies to develop
• barriers to foreign imports encourage citizens to buy nationally-produced goods

Negatives

•  government intervention could make global trade inefficient
• spending to support industry could be spent elsewhere, e.g. education, healthcare or infrastructure
• trade barriers could increase cost of living for citizens

World Systems Theory - Immanuel Wallerstein

 

- Core countries are developed, capitalist countries that exploit peripheral (developing) countries for labour and raw materials

- Peripheral countries are dependent on the money gained by selling raw materials

- however, inevitably, the manufactured product in the core country sells for much more than the periphery, so the core can benefit and develop from the profits