diff classical economic development theory and deep

• Cause of underdevelopment

  • Classical (e.g., Rostow): Underdevelopment is internal — due to lack of capital, education, or infrastructure.➤ Example: Rostow’s 5-stage model assumes all countries will follow the Western path to development.
  • Dependency: Underdevelopment is external — caused by exploitation by the Global North through colonialism and unequal trade.➤ Example: Latin America exporting raw materials while importing expensive manufactured goods keeps them trapped in dependency
• View on globalisation

  • Classical: Globalisation and trade are positive forces for development.➤ Example: The success of "Asian Tigers" (e.g., South Korea) is cited as evidence that integration works.
  • Dependency: Globalisation reinforces inequality and benefits the core at the expense of the periphery.➤ Example: IMF loans often trap countries in debt cycles, strengthening dependency.
• Recommended development strategy

  • Classical: Emphasises free markets, foreign direct investment, and integration into the global economy.➤ Example: World Bank projects based on liberal economic principles.
  • Dependency: Suggests protectionism, import substitution, and economic self-reliance.➤ Example: Import Substitution Industrialisation (ISI) in Latin America aimed to reduce dependency on the West.