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Theories of the development gap
Theory Brief description How does it How does it Limitations
explain why MEDCs explain why LEDCs
are so rich? are so poor?
Modernisation This was put MEDCs generally They have had Written during the Cold
theory forward by have been able to little/no War Era: the bipolar era
Rostow and develop through investment or between the USA and
follows a the stages by foreign the USSR.
neo-liberal view. investment which investment. Investment does not
Modernisation has led to changes Investment has necessarily increase
theory is more in the economy to only begun to development in the
like a process a high mass occur in the East region. LAPSSET may fail
than a theory. consumption. African countries. due to corruption,
Yet the investment environmental issues
has been used as a and civil wars.
tool to ensure
follows the MEDCs.
Dependency theory This is a MEDCs export Developing
neo-colonial manufactured countries have no
theory. It goods to LEDCs profit as they only
suggests that and import their export primary
dependency is a cheap, primary goods. They
virtuous cycle goods to re-sell cannot add their
and will continue once profit to
unless the manufactured. E.g. investment.
country can the EU tariffs show
invest in their this.
E.g. the oil
occur for the oil
to be distilled.
Poverty cycle This is a process There is a virtuous -Does not account for
that shows how cycle where the rapid economic
developing countries remain in emergence of BRICs.
countries remain poverty and are -Assumes that
in poverty. not able to development occurs in
Core-periphery The MEDCs are the The LEDCs are on -Does not explain the
model core-periphery core locations and the periphery of growth of peripheral
model explains where goods and the trade and locations.
to aim why services are development. -It depends on the
development is located. circumstances/condition
concentrated in s of the place.
Debt crisis This is a capitalist The debt has
led phenomenon. impeded
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Globalisation This is a capitalist `Switched on' `Switched off'
led phenomenon. countries are able countries are not
to trade between open to trade and
the countries. It is economic
driven by TNCs and development.
which is the culture
and the goods