Development TWO APPROACHES TO DEVELOPMENT

A. Complete the table.

Self Sufficiency Approach / International Trade Approach
When? / Most of 20th century / Late 20th century to today
Other Names and Associations / Balanced Growth,
anti-neocolonialism / Modernization Model, Rostow
Main Characteristics /
  • Spread investment as equally as possible through all regions of country and all industries and sectors of economy
  • protect domestic (home) industries through tariffs, import quotas and import licenses
/
  • Indentify one or a few distinct or unique economic assets and resources, develop those industries, and then…
  • use profits for more general development of country

Advantages /
  • Promotes balanced, diversified economy
  • Promotes independence from MDCs
  • Slow but fair growth (fighting poverty is # 1 goal)
/
  • Local industries benefit from international competition (forced to innovate)

Problems /
  • Protects, rewards inefficient industries that don't have to compete or innovate on quality or price
  • Increases prices of consumer goods
  • Creates huge government bureaucracies, corruption
/
  • NEOCOLONIALIST! (still dependent on MDCs markets and to buy necessities (can't live off oil or copper!)
  • Economy not diversified (oil in Middle East, coffee, minerals in Africa) therefore vulnerable to market fluctuations
  • Profits from extraction don't get evenly distributed (corruption)

Examples /
  • India (best example but only up to 1990's)
  • China (until 1990's)
  • Africa
  • Eastern Europe
/
  • India (after 1990's)
  • Asian Tigers/Dragons: S. Korea, Singapore, Hong Kong, Taiwan (clothing/electronics)
  • Arabian Peninsula (oil)

Development ROSTOW'S MODERNIZATION MODEL

A. Briefly describe the five stages in Rostow's "Ladder of Development":

Rostow's Modernization Model of Development
Key Characteristics / Criticisms/Problems
  • Basic idea: All countries follow a similar path of development through five predictable stages
  • Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs?)
  • Money from natural resources in LDCs will fuel their development
/
  • No context. Treats countries as autonomous units isolated from global forces. Development is not just based on what happens within a country (Mali not equal to Japan!)
  • Has a Western, Industrial Revolution bias (conditions for "takeoff" for Great Britainin 1750don't apply to LDCs.)
  • No place in Rostow's model for war, political and cultural decision making.
  • Model assumes development is all good (what about social disruptions, loss of culture, environmental costs).
  • Need sixth stage: deindustrialization? Small is beautiful.

Development WALLERSTEIN'S WORLD SYSTEMS MODEL

A. What other three development concepts are closely related to Wallerstein's World Systems Model?

Self-Sufficiency Model (to avoid exploitation from Core countries), Neo-Colonialism (explains roots of World Systems Model), Dependency Theory (another name for this theory)

C. Wallerstein FourKey Points:

1. Exploitation is a function of the basic drive for profit in one interconnected global capitalist system. Development must be seen in this context.

2. The global capitalist market includes an international division of labor. This means industry can and will shift productionfrom MDCs to LDCs in search of lowest labor costs (i.e. maquiladoras)

3. Raw materials and cheap labor flow from periphery to core. High profit consumption goods flow from core to periphery.

4. Wallerstein's model is can be applied not only at global but also at local scale. (Northeast is core, South is periphery of US, etc.)

D. Classification of core, periphery, and semi-periphery countries vary. In general though, where are core countries located? Where are periphery countries located? What two countries almost always are included in examples of semi-periphery countries?

1. Core countries are generally located above the so-called Brandt Line (see map), with the exception of Australia, New Zealand and parts of Oceania.

2. Periphery countries are located below the Brandt Line (mostly in the Northern Hemiphere).

3. China and India(and frequently Brazil) are the countries most often cited as examples of semi-periphery countries, that is, countries which both exploit (the periphery) but are also exploited (by the core).

E. Wallerstein's World Systems Theory may seem to just replace the terms "developed, developing, and underdeveloped" or "traditional society", "take off", and "high mass consumption" with "periphery", "semi-periphery" and "core". But Wallerstein's and Rostow's Modernization Theory are fundamentally different in two ways. Name them.

1. Wallerstein, unlike Rostow, doesn't say development is inevitable or predictable. In fact, Wallerstein holds that not all places can be equally developed or wealthy at the same time. In other words, Wallerstein, unlike Rostow, assumes an exploiter requires and “exploitee”.

2. Wallerstein, unlike Rostow, doesn't assume development will occur the same way in all places.