Economic Development is a dynamic process i.e. process not a static one.
Also Read: Measurement of Economic Development
Also Read: Problems Hindering Economic Development
Rostow's Model of Economic Development
This Model was proposed by Walter W Rostow (an American Economic Historical) in 1971. He presented the Model in the form of five stage sequence of economic and social development, based on historical experiences.
These five stages are :-
1. The Traditional Society
In this stage the economy is of the society is in primary stage, in which majority of people are involved in primary activities such as agriculture, hunting, gathering etc.
In such a society the social fabric is very rigid which restrict the fast development of technology and hence economy. And majority of capital is invested in non-productive activities such as military and religious activities.
In such a society development is not very fast due to lack of technical innovation.[post_ads]
2. The Pre-conditions for Take Off
After the traditional society evolve itself, then some elite group is formed who accelerate openness, diversity which influences the economic development through technical innovation such as improvement in agricultural techniques, transportation network (Railways){ and new equipments for various purposes.
This kind economy still dominated by agricultural activities but somewhat hunting and gathering is reduced very much.
3. The Take Off
In this stage Industrial Revolution takes place but mainly in sectors such as textiles, dairy and railways. this stage is also termed by Rostow as the Watershed moment in the life of modern society.
This stage is limited to only 10-30 years but it's impact on the society is tremendous as it lead to urbanisation and industrialisation of the economy and lead to development of new dimension in the economy that is secondary sector/Industrial sector.
4. The Drive to Maturity
In this stage much more technical innovation happens which is development of help the economy which is dominated by the heavy industries suc as steel and power. Imports fall and about 10%-20% of investments of the economy is mainly for the productive sector which led to development in the standard of living of the people in the economy which in turn lead to decline in the the growth of the population.
5. The stage of high consumption
In this stage almost every people in the economy has reach to luxury items hence, in this stage the economy shifts from the production of heavy materials to light consumer goods such as TV, refrigerator, Washing Machine Air conditioner etc.
In this stage majority of workers enter Service Sector.
Wallerstein's Capitalistic Model of Economic Development(Dependency Theory)
This Model is brought by Immanuel Wallerstein is as a result of the outgrowth of the Marxist ideology. This model divides whole world into 3 categories i.e. 1. Core, 2. Periphery and 3. Semi Periphery. In which Core nations centre of world economy and get money from colonial exploitation.
1. Core
Due to the highest level of technical innovations and automation is found here hence, these are the region of import of raw material and export of finished products. These have very large number of Multi National Companies. These are the regions of world's highest economic development. Here the societies are most developed and modern.
Raw materials are generally imported from the Periphery and Semi Periphery economies. This region exploits the Periphery and Semi-Periphery economies.
Examples:- USA, France, UK, China etc.
2. Periphery
These are the regions of lowest economic growth from where raw materials are supplied to the core economies and finished products are imported from the Core. Here economic development is very poor and generally charaterised by high population, which results into cheap labour. Cheap labour from Periphery is exploited by Core Economies to generate higher margin of profits.
Examples:- Central African countries, Least developed South East Asian countries, Syria etc.
3. Semi-Periphery
This is in between the Core and the Periphery economies, which is more economically powerful than Periphery but not as much as the Core economies. These have characteristics of both the Core as well as the Periphery. These produce finished products as well as export raw materials to other core countries.`
Examples:- India, South Africa, Saudi Arabia, Iran etc.
Criticism
- Based only on exploitation (Development can only takes place by exploitation), it didn't consider other aspects of development such as technical innovations and hard work.
- Blamed, Core too much (not an absolute reality).
- Undermined Core providing technical and infrastructral growth to Periphery.
- Cultural factors were also ignored.