7.3C Development theories

• World systems theory

  • Developed by Wallerstein in 1974
  • Whole world is one unit divided into:
  • Core
  • Periphery
  • Semi-peripheries

  
• Criticisms of world systems theory

  • Too focussed on the economy
  • Insufficient focus on culture
• Modernisation theory

  • The Rostow model of the Stages of Economic Growth was developed in 1960
  • Based on the study of 15 European countries
  • Rostow suggested that all countries have the potential to break the cycle of poverty and develop through 5 linear stages

  
• Rostows 5 stages:

  • Stage 1: Traditional society: economy based on bartering, subsidence farming and little investment
  • Stage 2: Pre-conditions for take off (transitional stage): surpluses are traded through improved infrastructure and shift to manufacturing
  • Stage 3: Take off: industrial and regional growth, investment and political change
  • Stage 4: Drive to maturity: growth is supported through technological innovation, diversification and investment
  • Stage 5 - High mass consumption: consumer orientated society, durable goods production, dominant service sector, higher disposable incomes
• Criticisms of Rosters theory:

  • Model is outdated and too simple
  • Model assumes all countries start at the same point (same resources, population, climate etc.)
  • Capital is needed to advance from Stage 1
  • The model does not show how that capital is obtained: usually a development aid loan.
  • The debt repayments can delay or even prevent a country from reaching Stage 3 and take off
  • Colonialism, and the impact this had on the development of some countries, are not taken into account or are underestimated 
• Franks dependency theory:

  • It argues that the:
  • Persistent poverty of developing countries is the result of their dependency on developed countries
  • There is an unequal relationship between the developed and developing countries
  • The ex-colonies were still in a state of dependency when they became independent
• Franks Dependency theory is linked to neo-colonialism as it outlines how:

  • Primary resources are exported from developing countries to developed countries
  • The profits from these goods are low
  • Developing countries do not have the funds to process primary resources which would add value
  • Developed countries often apply tariffs on processed goods which means that developing countries struggle to export processed goods

  
• Criticism of franks dependency theory:

  • Developed countries have lost their power to control developing countries
  • Countries are emerging and becoming more developed semi-periphery countries such as Mexico and India
  • The global system is now controlled by TNCs and the World Trade Organisation
  • Underdevelopment may be due to internal not external factors