Transcript development? - Doral Academy Preparatory

Theories Regarding
Development
A. Development Theories
1. “Liberal” Models (Modernization Theory)
Ex: Rostow’s Model
2. “Structuralist Models” (Dependency Theory)
- Cores & peripheries
3. World-Systems Theory (Immanuel Wallerstein)
Minerals in Africa
Although several African countries have important minerals, the world prices
of many of these have lagged the prices of industrial products, services, and energy.
A. Dependency Theory:
Sub-Saharan Africa
1. Despite resources, sub-Saharan Africa
severely lacks development
2. legacy of the colonial era
– Mining companies
– Lack of Political institutions
– Ethnic problems
3. Biggest problem: imbalance between
number of people & the food supply
B. Modernization Theory:
The Rostow Model
1.
5 stages of economic development
2.
American economist
3.
Developed model in 1950-60s
(geopolitical context?)
4.
Studied 15 European countries
5.
Believed ALL countries have the
ability to break the cycle of poverty
1.
Subsistence farming economy
-
1.
2.
3.
labor intensive
limited technology & capital
Agriculture more mechanized
Emerging transport infrastructure
Entrepreneurs emerge
1. Industrialization increases…more secondary
jobs
2. Growth concentrated in a few regions of the
country… in one or two industries
3. New political & social institutions evolve
4. Infrastructural development (airports, roads &
railways)
1. Technological innovation
2. Economic development spreads
3. Increase types of industry
4. Continued rapid urbanization
1. Rapid expansion of tertiary industries
2. Industry shifts to production of consumer
goods
C. Criticisms of Rostow
1. Outdated and oversimplified (take your pill and blast
off…)
2. Assumes all countries have same level of resources,
population, climate
3. Ignores “foreign aid” & “development loans”
4. Underestimates effects of colonization & imperialism
Comparing Rostow’s Model
to the DTM Model
D. Development Strategies
1. Create economic “self-sufficiency”
2. Development through “international trade”
– Ex: Rostow’s model
3. Financing development
– Ex: FDI (foreign direct investment)
– loans
Self-Sufficiency
– For most of 20th-century:
self-sufficient “balanced
growth”
– China, India & E. Europe
India:
government owned
businesses, trade barriers
& subsidies to promote
domestic manufacturing
The International Trade Approach
– development calls for a country
to use its comparative
advantage to trade its scarce
resources
Exs:
Oil-rich regions (Persian Gulf
, Russia, Mexico)
E. & S.E. Asia?
– Problem of dependency?
– Embraced by most countries for stimulating development
– Countries converted from “self-sufficiency” to “international
trade” during the 1990s
– Past 25 years world trade has tripled
Exs:
India’s GDP: 7% per year during 1990s
China: 10% growth per year 2000-2010
Petroleum-Rich Persian Gulf States
Four Asian Tigers (or Dragons…)
– South Korea, Singapore, Taiwan, & Hong Kong
World Trade Organization (WTO)
– Established in 1995
– Works to reduce barriers
to international trade
– Enforces trade agreements
Financing Development
– LDCs borrow money to build
new infrastructure
– 2 major international lenders
are:
World Bank & IMF
– Foreign Direct Investment
– Microcredit loans to small
businesses & women
Debt as Percent of Income
Many developing countries have accumulated large debts relative to their GDPs.
Much of their budgets now must be used to finance their debt.
Foreign Investment Flows
3/4ths of foreign investment flows from one MDC to another…
E. What is “sustainable”
development?
1. Global Partnerships
2. Conservation
3. Renewable resources
4. Women Empowerment
• Almost half the world — over 3 billion
people — live on less than $2.50 a day.
• According to UNICEF, 22,000 children die
each day due to poverty.
• Less than one per cent of what the world
spent every year on weapons was needed to
put every child into school by the year 2000
and yet it didn’t happen.
Student-Teacher Ratio
Physicians per Person
Human Development Index
( life expectancy at birth, GDP per capita, indices of schooling & literacy)
Literacy rate of women
Gender Differences
in School Enrollment
Economic Indicators
of Gender Differences
Women as Legislators
Over 20% of legislative seats are held by women in China,
some European nations, and several LDCs.