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Four Models of Development 1. Self Sufficiency Approach 2. International Trade Approach 3. Rostow

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Four Models of Development 1. Self Sufficiency Approach 2. International Trade Approach 3. Rostow s Modernization Model 4. Wallerstein s World Systems Model – PowerPoint PPT presentation

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Title: Four Models of Development 1. Self Sufficiency Approach 2. International Trade Approach 3. Rostow


1
Four Models of Development1. Self Sufficiency
Approach 2. International Trade Approach3.
Rostows Modernization Model4. Wallersteins
World Systems Model
2
1. Self Sufficiency Approachaka Keep your
greedy little hands off my country you capitalist
bastards!
3
2. International Trade Approachaka Uh,
maybe we could use just a little help (you
capitalist bastards!)
4
Self Sufficiency Approach International Trade Approach
When?
Other Names and Associations
Main Characteristics
Advantages
Problems
Examples
5
Self Sufficiency Approach International Trade Approach
When? Most of 20th century Late 20th century to today
Other Names and Associations
Main Characteristics
Advantages
Problems
Examples
6
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
Advantages
Problems
Examples
7
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 Identify one or a few distinct or unique economic assets and resources, develop those industries, and Use profits from your strong sector or sectors for more general development of country
8
Self Sufficiency Approach International Trade Approach
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
Examples
9
Self Sufficiency Approach International Trade Approach
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 of their products Increases prices of consumer goods Huge government bureaucracies Corruption NEOCOLONIALIST! (still dependent on MDCs markets (buy my oil!) and for 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)
10
Self Sufficiency Approach International Trade Approach
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)
11
Rostows Modernization Theory(aka Rostows
Ladder of Development Model)
12
Walt Rostow's model from the 1960's assumes that
all countries follow a similar path to economic
development, passing through identifiable stages,
(which, of course, he indentified). See if you
agree with these assumptions.
13
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14
Rostows Development Ladder
15
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16
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17
Rostow's Modernization Model of Development Rostow's Modernization Model of Development
Key Characteristics Criticisms/Problems

18
Rostow's Modernization Model 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
19
Can you think of any criticisms of Rostows
Model?In particular, why might Rostows model
be unsatisfying to human geographers who are
trained to study phenomenon (such as development)
using the concepts of a. scale (the
relationship between one portion of earth to the
whole) and b. connection (the relationship of
phenomenon across space)?
20
Rostow's Modernization Model 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 Britain in 1750 don'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.
21
Immanuel Wallersteins World Systems Theory(aka
Wallersteins Core-Periphery Model)
22
Wallersteins World Systems TheoryThree
related concepts1. The Self-Sufficiency
Model (as one way of avoiding the exploitation
predicted by Wallerstein) 2. Neo-Colonialism
(explains roots of todays exploitation)3.
Dependency Theory (another name for this
theory periphery is dependent on core)
23
World-Systems Theory Three Tiers
  • Core
  • Regions with higher levels of education, higher
    salaries, more technology
  • Generate more wealth in the world economy
  • Exploits Semi-Periphery and Periphery by
    exploiting cheap labor and raw materials and by
    doing so gains and maintains dominant position.
  • Periphery
  • Regions with lower levels of education, lower
    salaries, and less technology
  • Generates less wealth in the world economy
  • Exploited by Core and Semi-Periphery (Think
    Periphery sells low and buys high.
  • Semi-periphery
  • Regions where core and periphery processes are
    both occurring
  • Exploited by the Core but then exploits the
    Periphery
  • Serves as a buffer between Core and Periphery

24
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25
C. Wallerstein Four Key Points1. Exploitation
is a function of the basic drive for profit in an
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 production from 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 can be applied
not only at global but also at local scale. (US
Northeast Core, US South Periphery, etc.)
26
Whos who in Wallerstein? Depends on who you ask.
Heres one interpretation.
27
Heres another. Differences from previous map?
28
And a third. Differences? (and why cant poor
Greenland at least be something???)
29
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 ways1.
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.
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