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Models of Development - Mind Map
Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.
View larger version of the mind map.
- Rostow - Stages of Growth
- Subsistence
- Pre-conditions
- Growth in industrialisation/decline in agriculture
- Sustained growth
- High-mass consumption
- Criticisms:
- Too simplistic
- Necessity of a financial infrastructure
- Need for other infrastructure
- Efficiency of use of investment
- Will economies learn from each other?
- Market Based
- Importance of the existence of the free market
- Government inefficiency restricts growth
- Role of government to liberate markets and promote competition
- Establishment of property rights
- Problems:
- Existence of market failure
- Problems of lack of infrastructure
- Problems of equity in allocation
- International Dependence
- Problems created by past history - international division of labour
- Gap between rich and poor nations can be perpetuated by rich nations
- Trade may further widen the gap
- Existence of the international debt crisis
- International agencies may not help
- Lack of understanding of the needs of developing countries
- Criticism:
- Offers causes but no solutions
- Structural Change
- Patterns of change and growth are identifiable
- Structural change through incentives
- Lewis 2 Sector model
- Agriculture - low value added
- Industrial sector - higher productivity and wealth generation
- Movement of workers from agriculture to industry
- Investment of wealth generated by industry
- Criticisms:
- Labour re-allocation not always productive
- Wealth not re-invested locally
- Wealth goes abroad
- Imperfections in the labour market
- Importance of complementary policies by all countries involved
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