Four Models of Development 1 Self Sufficiency Approach

Four Models of Development 1. Self Sufficiency Approach 2. International Trade Approach 3. Rostow’s Modernization Model 4. Wallerstein’s World Systems Model

1. Self Sufficiency Approach aka “Keep your greedy little hands off my country you capitalist bastards!”

2. International Trade Approach aka “Uh, maybe we could use just a little help (you capitalist bastards!)”

Self Sufficiency Approach International Trade Approach When? Other Names and Associations Main Characteristics Advantages Problems Examples

Self Sufficiency Approach Most of 20 th century When? International Trade Approach Late 20 th century to today Other Names and Associations Main Characteristics Advantages Problems Examples

Self Sufficiency Approach International Trade Approach When? Most of 20 th century Late 20 th century to today Other Names and Associations Balanced Growth / anti-neocolonialism Modernization Model / Rostow Main Characteristics Advantages Problems Examples

Self Sufficiency Approach International Trade Approach When? Most of 20 th century Late 20 th century to today Other Names and Associations Balanced Growth / anti-neocolonialism Modernization Model / Rostow Main Characteristics • Spread investment as • Identify one or a few equally as possible distinct or unique through all regions of economic assets and country and all resources, develop those industries and sectors of industries, and… Use economy profits from your strong • protect domestic (home) sector or sectors for industries through tariffs, more general import quotas and development of country import licenses

Self Sufficiency Approach Advantages Problems Examples • Promotes balanced, diversified economy • Promotes independence from MDCs • Slow but fair growth (fighting poverty is # 1 goal) International Trade Approach • Local industries benefit from international competition (forced to innovate)

Self Sufficiency Approach International Trade Approach Advantages • Promotes balanced, diversified economy • Promotes independence from MDCs • Slow but fair growth (fighting poverty is # 1 goal) Problems • NEOCOLONIALIST! (still dependent on MDCs • Protects, rewards markets (buy my oil!) and inefficient industries that for necessities (can't live don't have to compete or off oil or copper!) innovate on quality or • Economy not diversified price of their products (oil in Middle East, • Increases prices of coffee, minerals in Africa) consumer goods therefore vulnerable to • Huge government market fluctuations bureaucracies • Profits from extraction • Corruption don't get evenly distributed (corruption) • Local industries benefit from international competition (forced to innovate)

Self Sufficiency Approach Examples • India (best example but only up to 1990's) • China (until 1990's) • Africa • Eastern Europe International Trade Approach • India (after 1990's) • “Asian Tigers/Dragons”: S. Korea, Singapore, Hong Kong, Taiwan (clothing/electronics) • Arabian Peninsula (oil)

Rostow’s Modernization Theory (aka “Rostow’s Ladder of Development” Model)

Walt Rostow's model from the 1960's assumes that all countries follow a similar path to economic development, passing through identifiable stages, (which, of course, he indentified). See if you agree with these assumptions.

Rostow’s Development Ladder

Rostow's Modernization Model of Development Key Characteristics Criticisms/Problems

Rostow's Modernization Model of Development Key Characteristics • Basic idea: All countries follow a similar path of development through five predictable stages • Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs? ) • Money from natural resources in LDCs will fuel their development Criticisms/Problems

Can you think of any criticisms of Rostow’s Model? In particular, why might Rostow’s model be unsatisfying to human geographers who are trained to study phenomenon (such as development) using the concepts of a. scale (the relationship between one portion of earth to the whole) and b. connection (the relationship of phenomenon across space)?

Rostow's Modernization Model of Development Key Characteristics Criticisms/Problems • Basic idea: All countries follow a similar path of development through five predictable stages • Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs? ) • Money from natural resources in LDCs will fuel their development • No context. Treats countries as autonomous units isolated from global forces. Development is not just based on what happens within a country (Mali not equal to Japan!) • Has a Western, Industrial Revolution bias (conditions for "takeoff" for Great Britain in 1750 don't apply to LDCs. ) • No place in Rostow's model for war, political and cultural decision making. • Model assumes development is all good (what about social disruptions, loss of culture, environmental costs). • Need sixth stage: deindustrialization? Small is beautiful.

Immanuel Wallerstein’s World Systems Theory (aka Wallerstein’s “Core-Periphery Model”)

Wallerstein’s World System’s Theory Three related concepts: 1. The Self-Sufficiency Model (as one way of avoiding the exploitation predicted by Wallerstein) 2. Neo-Colonialism (explains roots of today’s exploitation) 3. Dependency Theory (another name for this theory; periphery is dependent on core)

World-Systems Theory: Three Tiers Core • Regions with higher levels of education, higher salaries, more technology • Generate more wealth in the world economy • Exploits Semi-Periphery and Periphery by exploiting cheap labor and raw materials and by doing so gains and maintains dominant position. Periphery • Regions with lower levels of education, lower salaries, and less technology • Generates less wealth in the world economy • Exploited by Core and Semi-Periphery (Think: “Periphery sells low and buys high. ” Semi-periphery • Regions where core and periphery processes are both occurring • Exploited by the Core but then exploits the Periphery • Serves as a buffer between Core and Periphery

C. Wallerstein Four Key Points: 1. Exploitation is a function of the basic drive for profit in an interconnected global capitalist system. Development must be seen in this context. 2. The global capitalist market includes an international division of labor. This means industry can and will shift production from MDCs to LDCs in search of lowest labor costs (i. e. maquiladoras) 3. Raw materials and cheap labor flow from periphery to core. High profit consumption goods flow from core to periphery. 4. Wallerstein's model can be applied not only at global but also at local scale. (US Northeast= Core, US South = Periphery, etc. )

Who’s who in Wallerstein? Depends on who you ask. Here’s one interpretation.

Here’s another. Differences from previous map?

And a third. Differences? (and why can’t poor Greenland at least be something? ? ? )

E. Wallerstein's World Systems Theory may seem to just replace the terms "developed, developing, and underdeveloped" or "traditional society", "take off", and "high mass consumption" with "periphery", "semi-periphery" and "core". But Wallerstein's and Rostow's Modernization Theory are fundamentally different in two ways: 1. Wallerstein, unlike Rostow, doesn't say development is inevitable or predictable. In fact, Wallerstein holds that not all places can be equally developed or wealthy at the same time. In other words, Wallerstein, unlike Rostow, assumes an exploiter requires and “exploitee”. 2. Wallerstein, unlike Rostow, doesn't assume development will occur the same way in all places.