Theories of Development

Seite 1

Rostow's Modernisation Theory

Developed by Walt Whitman Rostow in 1960.

The theory suggests that economies develop in 5 stages.

Traditional Society :

Characterised by simple technology and a primary sector economy.

Static society.

No centralised political system.

Pre-conditions for Take-off:

Demand for raw materials initiates economic change.

Commercial exploitation of agriculture and extractive industry.

Spread of new technologies.

Individual social mobility begins.

Development of national identity begins.

Take-off:

​​​​​​​Development of a manufacturing sector.

Urbanisation and industrialisation increase.

Example: The Industrial Revolution in the UK.

Drive to Maturity:

​​​​​​​​​​​​​​Development of wider industrial and commercial base.

Development of transportation infrastructure.

Urban society.

Consumers typically have disposable income.

High-mass Consumption:

​​​​​​​​​​​​​​High economic security and consumption.

Consumer products become more durable and more diverse.

Seite 2

Frank's Dependency Theory

Developed by Andre Gunder Frank.

States that the countries of the developed world have deliberately under-developed low-income countries to gain cheap resources and labour.

Discusses neocolonialism and exploitation of developing countries.