Transcript Rastow*s Stages of Development

Warm up
• You have 15 minutes to finish your business
that you created with a partner last class!
FRQ
• You have 20 minutes to do this free response
question.
• You may use your notes, and you may ask me
questions.
• When you finish, get on your computer. I put
a webquest in the economic geography
section under lesson 4.
Warm Up!
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6.
What is capitalism?
What is communism?
What is the primary sector of production?
Secondary?
Tertiary?
What is the core periphery model?
Rostow’s Stages of Development
First Stage—Traditional Economy
• Economy based on
primary activities
• Per capita income very
low
• No new technology
• Low production
• Largely subsistence
based economy
• Ex.--Afghanistan
Second Stage—Preconditions for
Takeoff
• Commercialization of agriculture—turning
agriculture into a business
• Exploiting raw materials for larger profits
• Investment in infrastructure begins (roads,
electrification)
• Ex.--Colombia
Third Stage—Take Off
• Lots of foreign investment
comes in (money from
companies from other
countries)
• Country gets outsourced
jobs
• Country begins
industrialization
• Country still largely
agricultural, but becomes
more urbanized
• Ex.--Mexico
Fourth Stage—Drive to Maturity
• Technology diffuses
throughout the country
• Way fewer people in
traditional economy,
increase in
manufacturing
• Increased in skilled labor,
better jobs
• Increase in education
• Ex--Chile
Fifth Stage—Mass Consumption
• Finally, high per capita
income
• Leads to mass
consumption-people
buying lots of goods
• Service based
economies
• Education and skill
levels very high
• Ex.--USA
Rostow vs. Wallerstein
• Rostow—Countries move
through these stages as they
develop (capitalism good)
• Foreign Direct Investment
(FDI) is good to allow
countries to industrialize
• Wallerstein—Core countries
exploit periphery countries,
periphery countries are not
improving (communism
good)
Review—Which level, AND why?
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Mexico (think of maquiladoras)
United States
Yemen—Very poor country, almost no development
Costa Rica—Large coffee and banana plantations
Chile—One of the richest countries in South America,
almost no traditional economies
Qatar—Highest GDP per capita in the world
India—Think of call centers
Afghanistan—Most of population involved in nomadic
herding and subsistence agriculture
Kenya—Exports wheat, coffee, and oil
Malaysia—Mechanized agriculture and increasing
service economy
Asian Tigers
• You get to read about
Asian tigers for
homework!