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1 Big Picture Questions when thinking about development: How do we measure development? Why are some countries poor and others wealthy? What might be done to break the cycle of poverty?

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Page 1: Big Picture Questions when thinking about development: How ...whslgrigg.weebly.com/uploads/1/3/1/5/13158546/theories_of_development.pdfBig Picture Questions when thinking about development:!

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Big Picture Questions when thinking about development: How do we measure development? Why are some countries poor and others wealthy? What might be done to break the cycle of poverty?

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Walt Rostow was an economist who came up with the “Modernization Model”. He was concerned with how the dozens of newly independent countries in Africa and Asia would survive economically. He looked to how the economically powerful countries had gotten to where they were.

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AKA: Stages of Growth Model Was popular in the 1940’s and 1960’s. Assumes that all countries can/will develop along the same path.

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1776 British Agricultural revolution See Models handout (go over Modernization) “A brief history”

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Look at Rostow Handout Sometimes called the Anti-Communist model Rostow’s “stages of growth” model is a “liberal model”. Goal of liberal models is to help underdeveloped countries move towards capitalism Geographers in academia tend not to like this model as it does not allow for cultural constraints, gender issues, fragile governments, corruption. Critics see it as ethnocentric as the history of the west is idealized and imitated. Not everyone benefits equally from modernization policies. Capitalism creates poverty as well as wealth.

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Look at Handout “A Brief History of Ideas and Strategies” (Neolibralism)

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Swedish economist Gunnar Myrdel (1974 Nobel Prize winner) was the first to recognize that only significant initial advantages tend to be reinforced through geographic principals of agglomeration and localization, the process he called “cumulative causation” meaning the spiraling buildup of advantages that occurs in specific geographic settings as a result of development of external economies, agglomeration effects, and localization of economies. He also pointed out that spiral of local growth attracts enterprising young people and investment funds from other areas. So the structuralism model is the idea of circular and cumulative causation. Ex: The colonial relationship created advantages for the core and disadvantages for the periphery. See A Structuralist View Handout: Backwash: The negative impacts on a region of the economic growth of some other migration (ex: out migration equals outflow of investment). A shift of industry from developed to developing countries created industrial growth for some countries like Mexico and Indonesia but is directly linked to industrial decline of North America. Spread Effect: The positive impact. The transfer of capital resources and skills for the core areas to the periphery.

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This is a 3 tier process. You need to view the world in terms of cores, peripheries, and semi-peripheries. The core processes generate wealth because they require higher levels of education, more sophisticated technologies, higher wages and benefits. Peripheral processes require little education, lower technologies, lower wages. Peripheral is dependent on core. Semi-Periphery has both and is a buffer between the 2 states.

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Core-Periphery model is fundamentally different from the modernization model because it holds that not all places can be equally wealthy in the capitalist world economy. Also it does not assume that socioeconomic changes will occur in the same way in all places..

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What works in one locale might not work in another.

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Capital: Wealth that is used to crate more wealth Built Capital Natural Capital Human Capital Social Capital

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Problems: Focus only on human sustainability. It is vague and unable to meet all needs.