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Self-Sufficiency Approach Spread $ and business in all sectors Avoid competition with efficient (cheaper) foreign companies (through tariffs) India was a good example from your textbook
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Rostows Stages of Development and Wallersteins World-Systems
Theory
Models of Development Self-Sufficiency Approach
Spread $ and business in all sectors Avoid competition with
efficient (cheaper) foreign companies (through tariffs) India was a
good example from your textbook Problems with
self-sufficiency
Two major problems associated with nations working on developing
through the Rostow model of self-sufficiency Protection (by
government) of inefficient businesses Need for large bureaucracy
(expensive and abused) Rostow Model (International Trade
Approach)
5-stage model Traditional society Preconditions for take-off
Take-off Drive to maturity High Mass Consumption Each stage has
reasons the country moves from one stage to another Traditional
Society Little technology No social changes
Moves to next stage when other countries invest in resources or new
markets appear. Ex: OIL! GOLD! Minerals! Preconditions for
Take-Off
Commercial companies invest Plantation agriculture Garment industry
Mining Moves to next stage when roads/railroads (infrastructure
improves) and social and political leaders emerge. Take-off
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
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. People buy a lot
of stuff.
High Mass Consumption People buy a lot of stuff. Examples of
International Trade
Arabian Peninsula States Focused on Oil 4 Asian Dragons/Tigers
South Korea, Singapore, Taiwan, Hong Kong Focused on manufacturing
a few goods to develop economy Problems with International
Trade
Two major problems associated with nations working on developing
through Rostows International Trade Approach Uneven resource
distribution Arabian States to dependent on oil Increased
dependence on MDCs at expense of developing their economies Market
decline Less demand for those goods they focused on Core,
Semi-Periphery, Periphery
World Systems Theory Basics The world is ONE economic market with a
global division on labor (what each place does) Three levels: Core
Semi-Periphery Periphery World Systems Theory CORE 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
PERIPHERY 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
SEMI-PERIPHERY Transition between core and periphery
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 Russia and neighbors moving down the scale Notice the low levels
of trade from Eastern Europe (including Russia)
In Wallersteins theory, countries can move from one level to
another.