Rostows Stages of Development and Wallersteins World-Systems
Theory
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DevelopmentRostow: Ladder of Development 1. What sectors of the
economy do you see? 2. What are the economic and social
characteristics of LDCs? 3. Where do we find MDCs and LDCs on the
globe?
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5-stage model Traditional society Preconditions for take-off
Take-off Drive to maturity High Mass Consumption Countries climb
(the ladder) from one stage to another
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Little technology No social changes Moves to next stage when
other countries invest in resources or new markets appear. (Role of
IMF, World Bank, WTO???) Ex: OIL! GOLD! Minerals!
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Commercial companies invest Plantation agriculture Garment
industry MiningWHY THESE?? Moves to next stage when roads/railroads
(infrastructure improves) and social and political leaders
emerge.
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Development of manufacturing (a countrys own companies for
export) Moves to next stage with even more investment in this
sector and the creation of modern social, economic, and political
institutions
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Drive to Maturity Development of economy beyond manufacturing
(widening base of industry and business) Moves to last stage when
it can take advantage of its abilities to produce for both the
export and domestic markets. Assumes a middle (consumer) class
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High Mass ConsumptionTop of the ladder People buy a lot of
stuff. WE HAVE ARRIVED!! Key Question: How would Rostow view the
IMF, World Bank and WTO?
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Explain the 5-stages Traditional society Preconditions for
take-off Take-off Drive to maturity High Mass Consumption
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Core, Semi-Periphery, Periphery
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The world is ONE economic market with a global division of
labor Three levels: Core Semi-Periphery Periphery
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Wallerstein Present Core/Periphery Relationships In
Wallersteins theory, countries can move from one level to
another.
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The worlds richer countries Wide range of products and services
High wages Import raw materials and export manufactured
goods/services Have favorable trade balances with poor countries
Build up capital which is invested largely at home Invest in other
core country economies Valuable trade with other core
countries
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Poorer countries Limited products Limited technology Lower
wages Dependent on core countries to purchase goods, provide
capital, etc. This dependency is the root of many global
problems/conflicts Supply raw materials Generally exploited by
core
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Transition between core and periphery Lower value-added
manufactured goods for export Still have dependent relationships
with cores Have peripheral countries dependent on them South Korea,
Mexico, Argentina, Thailand, Malaysia are examples of
Semi-Periphery countries moving up
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Dependency Theory The political and economic relationships
between countries and regions of the world control and limit the
economic development possibilities of poorer areas. Economic
structures make poorer countries dependent on wealthier countries.
Colonialism initiated dependency Little hope for economic
prosperity in poorer countries. Neo-colonialism
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Key Question:
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Low Levels of Social Welfare Foreign Debt Political Instability
Widespread Disease
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Foreign Debt Obligations Total interest payments compared to
the export of goods and services.
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Malaria kills 150,000 children in the global periphery each
month. Tamolo, India This baby sleeps under a mosquito net
distributed to villagers by UNICEF workers.
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Global Distribution of Malaria Transmission Risk
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Key Question:
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Development variations in America
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Governments get involved in world markets price commodities
affect whether core processes produce wealth shape laws to affect
production enter international organizations that affect trade
focus foreign investment in certain places support large-scale
projects
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Governments and Corporations can create Islands of Development
Places within a region or country where foreign investment, jobs,
and infrastructure are concentrated.
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The global oil industry has created the entire city of Port
Gentile, Gabon to extract Gabons oil resources.
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Malaysian government built a new, ultramodern capital at
Putrjaya to symbolize the countrys rapid economic growth.
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Somalia Microcredit program: loans given to poor people,
particularly women, to encourage development of small
businesses.
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The world is ONE economic market with a global division of
labor Explain the relationship: Core Semi-Periphery Periphery Key
Question: What happens when the majority of countries move from
periphery to core?.. Can they/will they?