theories of development 1.. by the end of this lesson you will: understand that employment...

Theories of Theories of Development 1.Development 1.

By the end of this lesson you will:By the end of this lesson you will:

Understand that Employment Structures Understand that Employment Structures can indicate development in a descriptive can indicate development in a descriptive manner (Clark).manner (Clark).

Be able to recall and understand the Be able to recall and understand the theory of Rostow: Modernisation and theory of Rostow: Modernisation and apply it to modern day countries.apply it to modern day countries.

Be able to recall and understand the Be able to recall and understand the theory of Gunder Frank: Dependency.theory of Gunder Frank: Dependency.

Two schools of thought…Two schools of thought…

•• In order to develop LEDC’s should copy In order to develop LEDC’s should copy the UK/USA as ‘we developed the right the UK/USA as ‘we developed the right way’.way’.

•• OrOr that MEDC’s might well be the cause of that MEDC’s might well be the cause of underdevelopment in many LEDC’s!underdevelopment in many LEDC’s!

Clark’s Sector Model (1950):Clark’s Sector Model (1950):

Modernisation V’s Dependency Modernisation V’s Dependency Summary:Summary:

Rostow:Rostow: Modernisation Theory:Modernisation Theory: Theories that build on Theories that build on the idea that the rate of development of country the idea that the rate of development of country is largely a consequence to do with the internal is largely a consequence to do with the internal structures, governance and culture of that structures, governance and culture of that country.country.

Gunder Frank:Gunder Frank: Dependency Theory:Dependency Theory: Theories that build upon Theories that build upon the idea that the rate of development of a the idea that the rate of development of a country is largely a consequence of its country is largely a consequence of its relationships with other countriesrelationships with other countries

Rostow’s Model of Economic Rostow’s Model of Economic Growth (1955)Growth (1955)

Rostow - Stages of GrowthRostow - Stages of Growth

The work of American The work of American Walt W. RostowWalt W. Rostow

Rostow is an economic Rostow is an economic historianhistorian

Countries can be Countries can be placed in one of five placed in one of five

categories in terms of categories in terms of its stage of growth:its stage of growth:

A child in Sierra Leone making breakfast. Which stage would a country like Sierra Leone fit in?


1.1. Traditional Traditional SocietySociety

Characterised byCharacterised by• subsistence economy subsistence economy

– output not traded – output not traded or recorded or recorded

• existence of barter existence of barter • high levels of high levels of

agriculture and agriculture and labour intensive labour intensive agricultureagriculture

Village in Losotho. 86% of the resident workforce in Lesotho is engaged in subsistence agriculture.


2. Pre-conditions:2. Pre-conditions:• Development of Development of

mining industriesmining industries• Increase in capital Increase in capital

use in agricultureuse in agriculture• Necessity of Necessity of

external fundingexternal funding• Some growth in Some growth in

savings and savings and investmentinvestmentThe use of some capital equipment can

help increase productivity and generate small surpluses which can be traded.


3. Take off:3. Take off:• Increasing Increasing

industrialisationindustrialisation• Further growth in Further growth in

savings and savings and investmentinvestment

• Some regional Some regional growthgrowth

• Number employed Number employed in agriculture in agriculture declinesdeclines

At this stage, industrial growth may be linked to primary industries. The level of technology required will be low.


4. Drive to 4. Drive to Maturity:Maturity:

• Growth becomes Growth becomes self-sustaining – self-sustaining – wealth generation wealth generation enables further enables further investment in value investment in value adding industry and adding industry and developmentdevelopment

• Industry more Industry more diversifieddiversified

• Increase in levels of Increase in levels of technology utilisedtechnology utilised

As the economy matures, technology plays an increasing role in developing high value added products.


5. High Mass 5. High Mass ConsumptionConsumption

• High output levelsHigh output levels• Mass consumption of Mass consumption of

consumer durablesconsumer durables• High proportion of High proportion of

employment in service employment in service sectorsector

Service industry dominates the economy – banking, insurance, finance, marketing, entertainment, leisure and so on.

Criticisms of Rostow:Criticisms of Rostow: Too simplisticToo simplistic Necessity of a financial infrastructure to Necessity of a financial infrastructure to

channel any savings that are made into channel any savings that are made into investmentinvestment

Will such investment yield growth? Not Will such investment yield growth? Not necessarilynecessarily

Need for other infrastructure – human Need for other infrastructure – human resources (education), roads, rail, resources (education), roads, rail, communications networkscommunications networks

Efficiency of use of investment – in palaces or Efficiency of use of investment – in palaces or productive activities?productive activities?

Rostow argued economies would learn from Rostow argued economies would learn from one another and reduce the time taken to one another and reduce the time taken to develop – has this happened?develop – has this happened?

Andre Gunder Frank: Andre Gunder Frank: Dependency (1971)Dependency (1971)

Read pages 543-545 Advanced

Geog (Edexcel) and take notes!

‘The development of theunderdevelopment’

More theories to come during this unit…More theories to come during this unit…

1.1. Friedman’s Stages of Growth Model.Friedman’s Stages of Growth Model.

2.2. Myrdal’s Model of Cumulative Causation.Myrdal’s Model of Cumulative Causation.

Lesson Recap:Lesson Recap:

Understand that Employment Structures Understand that Employment Structures can indicate development in a descriptive can indicate development in a descriptive manner (Clark).manner (Clark).

Be able to recall and understand the Be able to recall and understand the theory of Rostow: Modernisation and theory of Rostow: Modernisation and apply it to modern day countries.apply it to modern day countries.

Be able to recall and understand the Be able to recall and understand the theory of Gunder Frank: Dependency.theory of Gunder Frank: Dependency.

theories of development 1.. by the end of this lesson you will: understand that employment...

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