W.W. Rostow's Stages of Economic Growth (1960)
The "Ladder of Development." Assumes all countries follow the same path.
1. Traditional
Subsistence farming. Rigid society. No tech.
2. Pre-Conditions
Elite group invests in infrastructure (roads/dams).
3. Take-Off
Industrialization in few sectors (Textiles). Urbanization begins.
4. Maturity
Technology diffuses to all sectors. Skilled labor.
5. Mass Consumption
Service economy. High income. Consumer goods.
- Eurocentric: Based only on US/European history.
- Ignores Colonialism: Assumes LDCs can develop just by "trying harder," ignoring how MDCs exploited them.
- Linear: Doesn't account for countries moving backward or skipping stages.
Immanuel Wallerstein's World Systems Theory (1970s)
The global economy is ONE system. Rich countries benefit *because* poor countries are exploited.
The Core
High skill, high wages. Imports cheap raw materials, exports expensive manufactured goods. Exploits the Periphery.
Semi-Periphery
The manufacturing middle. Exploits the Periphery but is exploited by the Core. (e.g., Manufacturing moves here).
The Periphery
Low skill, low wages. Exports raw materials (Commodity Dependence). Dependent on Core for investment.
Weakness: Focuses too much on economics, ignores culture. Can be seen as too pessimistic (countries *can* rise).
3. Modernization vs. Dependency
Modernization Theory (Rostow)
- ✔ Cause of Poverty: Internal factors (tradition, lack of tech).
- ✔ Solution: Invest, trade, modernize culture.
- ✔ Path: Anyone can do it (Ladder).
Dependency Theory (Wallerstein)
- ✔ Cause of Poverty: External factors (Colonialism, exploitation by Core).
- ✔ Solution: Independence, protectionism (breaking the chain).
- ✔ Path: The system is rigged (Structural).