Theories of Development

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Theories of Development

THERE ARE A NUMBER OF THEORIES THAT HAVE BEEN PUT FORWARD TO GO SOMEWAY TO EXPLAIN THE WIDENING DEVELOPMENT GAP BETWEEN THE DEVELOPING AND DEVELOPED WORLD

EACH LOOKS AT DIFFERENT WAYS WHICH DISPARITIES IN WEALTH CAN OCCUR DUE O VARIOUS SOCIAL, ECONOMIC AND POLITICAL SYSTEMS 

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Rostow's model of development - modernisation theo

GAP EXISTS BECAUSE DIFFERENT COUNTRIES ARE AT DIFFERENT STAGES

  • based on Western development of Europe and North America (modelled on what these countries went through)
  • simplification of reality
  • 1960: argued countries passed through stages of economic growth that allows them to develop - gap exists because different countries are at different stages 
  • development speeds up as they move through the stages - Rostow believed MDCs should be helping those in developing countries
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Rostow's model of development - modernisation theo

CRUCIAL PART = 'TAKE-OFF' STAGE: WHEN ECONOMY AND SOCIETY ARE TRANSFORMED INTO SUCH A WAY THAT THEREAFTER A STEADY RATE OF GROWTH CAN BE SUSTAINED. This is characterised by:

  • a rise in the rate of productive investment to over 10% of national income
  • the development of one or more substantial manufacturing centres with a high rate of growth
  • the emergence of administrative systems which encourage development 
  • take off can prove very difficult for some countries
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Rostow's model of development - modernisation theo

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Rostow's model of development - modernisation theo

GOOD POINTS OF THE THEORY:

  • some changes assisted development in some countries
  • many countries will want to be like the already developed countries which it is based on, so will follow these steps to become as developed as them. 

BAD POINTS OF THE THEORY:

  • does not take into account several important non-economic factors of development, such as high rates of population growth and political changes
  • subjective
  • qualitative
  • doesn't show what happens after the last stage
  • overlaps 
  • culturally biased - only considers western countries 
  • suggests you can't fall back down 
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Dependency Theory/ World Systems Theory

PART LDCs HAVE TO PLAY IN TRADE IS NOT FAIR Dependency Theory:

  • Andre Gundar Frank - suggested that it was not that LDCs were not part of trade etc. it was the part they had to play in it that was not fair
  • theory suggests that relationship between countries relies on some countrie dominating and depending on others therefore keeping some LDCs in poverty
  • colonialism - legacy of colonies can still cause problems in independent countries e.g. Britain and Kenya - their debt and our legaces have limited Kenya's growth

World System Theory:

  • Core countries use capitalism to keep them developing - use raw materials and cheap labour etc.in Periphery countries 
  • keeps Periphery countries based in the primary and small secondary industries ad they remain reliant on aid and donations from the core
  • semi-periphery countries e.g. NICs are those that benefit from the Core's wealth in some way e.g. TNCs outsourcing to their countries 
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Dependency Theory

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World Systems Theory

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Dependency Theory/ World Systems Theory

GOOD POINTS OF THESE THEORIES:

  • easy to show results and compare 
  • shows inequality between countries
  • accurate representation of what goes on - hierachies etc. - shows ountries may never catch up with us 

BAD POINTS OF THESE THEORIES:

  • cannot account for the rapd economic emergence of countries such as China, India and South Korea
  • assumes that developent takes place in isolation from other countries and is free of global interactions
  • doesn't take account of foreign aid or loans from international banks 
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The core-periphery model

Friedmann: BENEFICIAL EFFECTS CAN SPREAD FROM ONE REGION/COUNTRY TO A LESS DEVELOPED REGION/COUNTRY.

  • shows peripheral areas in turn will develop, just slower therefore closing the development gap 

Myrdal: AGREED BUT BENEFICIAL EFFECTS ARE OUTWEIGHED BY THE NEGATIVE EFFECTS

  • shows deelopment gap will stay the same or get wider 
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The core-periphery model

GOOD POINTS ABOUT THIS THEORY

  • shows relationship between regions or countries - highlights inequalities 
  • shows how beneficial effects can spread from developed to less developed regions/countries
  • considers lots of different factors
  • shows 2 speed development
  • shows you'e not aways progressing - factors can hold you back and slow you down 
  • shows benefits of MDCs on LDCs 

BAD POINTS ABOUT THIS THEORY

  • not quantitative - subjective
  • harder to mak comparisons as there are no specific boundaries of core/periphery areas
  • model can complicated to interpret/draw and understand 
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The core-periphery model

http://people.hofstra.edu/geotrans/eng/ch7en/conc7en/img/coreperiphery.gif

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The core-periphery model

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Factors that affect the development gap: POLITICS

  • political models examine the impact of different philosophies on equality and development 
  • Karl Marx: capitalist free market economy causes exploitation and social inequaility. Communism makes effects of development more equitable
  • Rostow's model of development has a political aspect - model of capitalist society developing a high level of material wealth alongside economic growth 
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Factors that affect the development gap: GLOBALISA

  • countries are becoming increasingly connected and interdependent at a global scale, in complex ways that are cheaper, faster and more efficient than previously

main types of global flow that connect places around the world involve:

  • the movement of people (mirants, toursists, business people)
  • capital
  • technology
  • ideas (including political ideologies)
  • information 
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Factors that affect the development gap: DEBT

Last 50 years: many poor countres have accepted loans from rich countries:

  • interest payments on the loans affect deveopment as they put pressure on the already stretched financial situation of a country
  • loans have to be repaid, pus nterest, and some have strings attached e.g. developed countries give trade loans to enable poor countries to buy their products or services

The debt crisis largely converns the poorest countries, causing even more hardship to their people and preventing the development gap closing - problem is particularly severe in Africa 

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