Theories of Development
Geographers use development theories to explain WHY countries follow different pathways from poverty to wealth. The two most-tested at GCSE are Rostow's modernisation model and Frank's dependency theory — they offer opposing diagnoses and prescriptions.
Rostow's Modernisation Theory (1960)
W.W. Rostow argued every country progresses through 5 linear stages of economic growth:
- Traditional society — subsistence agriculture; low productivity; no science.
- Pre-conditions for take-off — first investment in transport, energy, education; commercial farming begins.
- Take-off — rapid industrialisation; investment >10% of GDP; political and social institutions modernise (UK ~1780–1830; Japan 1860s; China 1980s).
- Drive to maturity — diversification across industries; technology spreads; standards of living rise (UK 1850–1950).
- Age of high mass consumption — service economy dominant; consumer durables; welfare state (UK from 1950s; USA earlier).
Implications: Rostow suggests LIDCs simply need to follow the same path. HICs can speed it up by aid, FDI and trade. The model underpinned the Marshall Plan and 1960s development aid.
Frank's Dependency Theory (1967)
Andre Gunder Frank rejected Rostow as Eurocentric. He argued the world is divided into:
- Core — wealthy industrialised HICs.
- Periphery — LIDCs supplying raw materials to the core.
Through colonialism, then neo-colonial trade, the core extracts wealth from the periphery and traps it in underdevelopment. Examples:
- Coffee farmer in Ethiopia earns ~$0.10 per cup; Starbucks captures the rest.
- Cobalt mined in DRC at low wages; profits go to refiners and tech firms.
- Trade rules (subsidised EU farms, tariff escalation on processed goods) favour the core.
Implications: mainstream aid and FDI deepen dependency; the periphery should disengage from the core (import substitution; nationalisation). Tested in Latin America in the 1970s with mixed results.
Alternative pathways
- East Asian state-led development (South Korea, Singapore) — selective FDI + export industrialisation under strong state.
- Bottom-up / appropriate technology (Schumacher) — focus on grass-roots, sustainable improvement.
- Sustainable Development Goals (SDGs) — 17 goals to 2030 integrating economic, social, environmental.
Synthesis
Neither model fully explains every case. Rostow describes pathways HICs and East Asian Tigers followed. Dependency captures why many sub-Saharan African states remain trapped in commodity exports despite decades of aid.
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