132776
Description
Mind Map by Sarah Mather, updated more than 1 year ago
|
Created by Sarah Mather
about 11 years ago
|
|
Rostow (1960) - Modernisation Theory
- Key Idea
- Under developed
countries can strengthen
their economies by
introducing modern
technology, agriculture and
industrial production.
- There are 5
stages of
economic
development.
- Rostow was an American
economic Historian
- Under developed
countries can strengthen
their economies by
introducing modern
technology, agriculture and
industrial production.
- Stage 1 -Traditional
Society
- Subsistence, barter, agriculture.
- Subsistence, barter, agriculture.
- Stage 2 - Transitional Stage
- Specialisation, surpluses, infrastructure
- Specialisation, surpluses, infrastructure
- Stage 3 - Take Off
- Industrialisation, growing
investement, regional
growth, political change
- Industrialisation, growing
investement, regional
growth, political change
- Stage 4 - Drive to Maturity
- Diversification,
innovation, less
reliance on
imports,
investements.
- Diversification,
innovation, less
reliance on
imports,
investements.
- Stage 5 - HIgh mass
consumption
- Consumer oriented, durable
goods flourish and service
sector becomes dominant.
- Consumer oriented, durable
goods flourish and service
sector becomes dominant.
- Rostow argues that development
requires substantial investement in
capital.
- If aid is gived, FDI occurs at
stage 3, if stage 2 has been
reached then investement may
lead to rapid growth.
- If aid is gived, FDI occurs at
stage 3, if stage 2 has been
reached then investement may
lead to rapid growth.
- Neo-Liberalism
- Idea that there ought to be little government
intervention and private investement should be
encouraged via the use of FDI. This ties in with the
Washington COnsensus view that the state is the
problem, NOT solution.
- Idea that there ought to be little government
intervention and private investement should be
encouraged via the use of FDI. This ties in with the
Washington COnsensus view that the state is the
problem, NOT solution.
- Criticisms
- Eurocentric - e.g. based
on the experiences of the
UK snf USA, it is a
simplified version of what
really happens in a
country, it is very
descriptive so does not
explain how countries
pass from one stage to
another and assumes the
adoption of free market
capitalism and neoliberal
ideas.
- It over simplifies development and
assumes all societies are on the
same develpment path when really
they arenot. They treat nations as
isolated and ignore histoirical
processes such as colonialism.
Also all barriers are located in the
third worldd and they ignore
external barriers such as global
trade.
- This development
model is flawed for
being unsustainable
- Eurocentric - e.g. based
on the experiences of the
UK snf USA, it is a
simplified version of what
really happens in a
country, it is very
descriptive so does not
explain how countries
pass from one stage to
another and assumes the
adoption of free market
capitalism and neoliberal
ideas.
- EXTRA
- Explaining
Underdevelopment
- Talcott Parsons argues that cultural barriers are
a;sp a barrier to developmetn and that
majority-world cultures are based on collectivism
and ascribed status. Development links to the
process of social change.
- Lack of technology, economic
barriers - trap in a cycle of
poverty consequently there is
a lack of development.
- Talcott Parsons argues that cultural barriers are
a;sp a barrier to developmetn and that
majority-world cultures are based on collectivism
and ascribed status. Development links to the
process of social change.
- Promoting
Development
- Policie such as injections of
capital to the majority of the
world, e.g. loans, aid, or TNC's.
We should focus on
technological advacements and
creating the industrial
infrastructure to achieve
economic take-off to maintain
the drive to maturity.
Investement should also be used
to instigate cultural change by
creating institutions which
permeate modern norms and
values and establish education
systems such as the mass
media.
- Policie such as injections of
capital to the majority of the
world, e.g. loans, aid, or TNC's.
We should focus on
technological advacements and
creating the industrial
infrastructure to achieve
economic take-off to maintain
the drive to maturity.
Investement should also be used
to instigate cultural change by
creating institutions which
permeate modern norms and
values and establish education
systems such as the mass
media.
- Explaining
Underdevelopment
Want to create your own Mind Maps for free with GoConqr? Learn more.