7.5 Theories of Development

7 min read•january 9, 2023

Riya Patel

Harrison Burnside

Riya Patel

Harrison Burnside

AP Human Geography 🚜

320 resources

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Rostow's Stages of Development

W.W. Rostow’s Stages of Development is a model that analyzes the 5 steps that it takes to move from an agricultural society to a service-based economy. His main assumption in creating the model was that each country had some kind of comparative advantage. Critics of this model state that it does not account for colonial legacy or government corruption in developing countries.

The Five Stages Are:

Traditional Society

In the traditional society stage of economic development, the economy is focused on primary production, such as agriculture and the extraction of natural resources. There is little technical knowledge or infrastructure, and the economy is typically characterized by low levels of productivity and income.

In traditional societies, the economy is often based on traditional methods of production and trade, and there is little division of labor. Economic activity is often organized around kinship and community ties, and there may be little or no formal market system.

Traditional societies may also be characterized by a lack of access to education and modern technology, as well as a lack of legal and regulatory frameworks to support economic activity. These factors can limit economic growth and development in traditional societies.

Preconditions to Takeoff

In the preconditions to takeoff stage of economic development, the country's leadership begins to invest in infrastructure and technical knowledge in order to stimulate economic growth. This may involve building roads, bridges, ports, and other infrastructure to support economic activity, as well as investing in education and training to increase the technical knowledge of the workforce.

During this stage, there may also be a shift towards more specialized and productive forms of agriculture, as well as the development of small-scale industries and manufacturing. This can lead to an increase in productivity and income, and can lay the foundation for more rapid economic growth in the future.

Takeoff

In the takeoff stage of economic development, the economy undergoes a shift towards industrialization, and labor begins to shift from primary production to factories. There is also an increase in urbanization as new infrastructure is developed to support the growing industrial sector.

During this stage, the economy experiences rapid and sustained economic growth, and there is an increase in productivity and income. The manufacturing sector becomes the driving force behind economic growth, and there is a rapid expansion of industry and trade.

The takeoff stage is often accompanied by significant changes in society, as people migrate from rural areas to urban centers in search of employment, and traditional ways of life are transformed by the growth of industry and technology.

Drive to Maturity

In the drive to maturity stage of economic development, technical advancements and increased investment in education lead to a shift towards a more skilled and knowledge-based economy. The manufacturing sector continues to be the driving force behind economic growth, but there is also a rise in the service sector and the development of more advanced and specialized industries.

During this stage, the economy continues to experience rapid economic growth, and there is an increase in productivity and income. The standard of living for the population also tends to improve, and there is a greater demand for consumer goods and services.

The drive to maturity stage is characterized by a more diversified and advanced economy, with a greater focus on innovation and technological development. This can lead to the development of new products and industries, and can drive further economic growth and development.

High Mass Consumption

In the high mass consumption stage of economic development, technical knowledge and education levels are high, and the economy becomes more industrialized and trade-based. The manufacturing sector continues to be a key driver of economic growth, but there is also a significant expansion of the service sector, which becomes the largest contributor to GDP.

During this stage, the economy continues to experience economic growth, but at a slower and more sustainable pace. The standard of living for the population is generally high, and there is a high level of demand for consumer goods and services.

The high mass consumption stage is characterized by a highly developed and diverse economy, with a strong emphasis on innovation and technological development. There is also a greater focus on social welfare and quality of life, and there is a greater level of economic and social equality.

Examples

Here are a few examples of countries at different stages of Rostow's model:

A traditional society: rural areas in developing countries where subsistence agriculture is still the main form of livelihood.
Preconditions for take-off: countries in East Asia, such as South Korea and Taiwan, in the mid-20th century, when they were beginning to adopt new technologies and increase their productivity.
Take-off: the United States in the 19th century, when it underwent rapid industrialization and economic growth.
Drive to maturity: Japan in the post-World War II period, as it industrialized and its economy became more diversified and advanced.
Age of high mass consumption: many Western countries in the 20th and 21st centuries, such as the United States, Canada, and European countries, which have highly developed economies and high standards of living.

Wallerstein's World Systems Theory

Wallerstein's World Systems Theory is a structural theory of economic development that explains how the global economy is divided into a core, a periphery, and a semi-periphery.

According to the theory, the core countries are the most industrialized and technologically advanced, and they dominate the global economy through their control of finance, trade, and production. The periphery countries are less industrialized and have a more dependent relationship with the core, as they are primarily engaged in the production of raw materials and agricultural goods. The semi-periphery countries are intermediate between the core and periphery, and they may have some industrialization and trade connections with both the core and periphery.

The World Systems Theory suggests that the global economy is characterized by a core-periphery hierarchy, in which the core countries dominate and exploit the periphery countries for their own economic benefit. The theory also highlights the role of colonialism and imperialism in shaping the global economy and maintaining the core-periphery hierarchy.

The World Systems Theory has been influential in understanding global economic inequalities and has been applied to a range of fields, including sociology, anthropology, and political science. However, it has also been the subject of criticism and debate, as it has been accused of oversimplifying the complexity of the global economy and ignoring the agency of peripheral countries.

Here are a few examples of countries that fit into each category:

Core countries: the United States, Western European countries, Japan
Periphery countries: many countries in Latin America, Africa, and Asia, which are heavily dependent on exports of raw materials to the core countries
Semi-periphery countries: countries in Eastern Europe, such as Poland and the Czech Republic, which have undergone industrialization but still have a lower level of development than the core countries

It's worth noting that the classification of countries into these categories is not fixed and can change over time as a country's economic and political circumstances change. For example, South Korea and Taiwan were once considered periphery countries, but have since become more industrialized and are now considered semi-periphery countries.

This image below basically shows how the core benefits from the periphery and semi-periphery. This image also shows how the semi-periphery can benefit from the periphery while still benefiting the core.

Image Courtesy of Medium

The Dependency Theory

The Dependency Theory holds that LDCs are highly dependent on foreign factories and technologies from MDCs to provide employment and infrastructure. The LDCs in this theory get stuck in the continuous cycle of dependency on the MDCs which never allow their economies to fully develop.

LDC stands for "Less Developed Country" and MDC stands for "More Developed Country." These terms are often used to classify countries based on their level of economic development and to distinguish between countries that are more advanced in their economic development from those that are less advanced.

LDCs are generally considered to be countries that are at an earlier stage of economic development and have lower levels of income, industrialization, and technological advancement. MDCs, on the other hand, are generally considered to be more developed countries that have higher levels of income, industrialization, and technological advancement.

There are a number of different criteria that can be used to classify countries as LDCs or MDCs, such as gross domestic product (GDP) per capita, industrialization, and access to education and healthcare. The United Nations (UN) also publishes a list of LDCs based on a composite index of economic, social, and human development indicators.

It is important to note that the classification of countries as LDCs or MDCs is a relative concept, and it can change over time as countries progress in their economic development. In addition, the classification of countries as LDCs or MDCs can be controversial, as it can reflect and reinforce existing global inequalities and power dynamics.

Here are some examples of countries that are often classified as LDCs: