Negatives. Outdated and Eurocentric, as clear course for development. modeled on the development Idea of take-off suggests rapid.

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1 Theories of development Six key perspec ves, from the 1960s to the present day... Throughout the 20th century, and continuing into the 21st century, governments have tried to develop the world s poor countries. Development efforts have sought to increase national income, lift poor people out of poverty and improve their quality of living. However, people have had different ideas about how to best develop poor countries. Let s consider six of those approaches s Modernisation Science and technology can be used to advance industry and s mulate economic growth. Development is achieved when a country has high industrial outputs and exports goods to the world economy. WALT ROSTOW A US economist and special assistant to President Johnson. His ideas of free-trade and modernisa on were influen al in the 1960s Provides governments with a Outdated and Eurocentric, as clear course for development modeled on the development Idea of take-off suggests rapid of the wealthiest na ons development Industrial revolu ons and Economic growth provides jobs and can increase living standards economic growth can cause environmental degrada on Economic take-off Basic, subsistence farming. Some local trade and bartering Tradi onal society 1 Mechanised and commercial agriculture. Specialist industries are beginning to devleop Pre-condi ons to take-off 2 3 Take-off Industrial revolu on causes rural-urban migra on. Infrastructure develops. Some regions 4 Drive to maturity Range of industries become established. Early take-off industries decline. Complex transport network develops. 5 Age of mass consump on Ter ary sector grows rapidly. Industry shi s to produce consumer goods. High disposable incomes result in mass consump on of goods experience rapid growth

2 1970s Dependency In a globalised world, all countries are interconnected. Some countries are winners of global trade, whilst others are losers. Countries become wealthy by exploi ng and underdeveloping the poorest na ons through unfair trade. Ci zens of the developed world play a role in crea ng poverty Government interven on could make global trade inefficient ANDRE GUNDER FRANK A German-born poli cal economist. He studied La n America, opposed modernisa on and was prominent in the 1960/70s Industry in the periphery given Spending to support industry subsidies to develop could be spend providing basic Barriers to foreign imports, needs or on infrastructure encouraging the ci zens to buy Trade barriers could increase na onally-produced goods the cost of living for ci zens Global Core-Periphery The world is divided into two regions: the core and the periphery The core contains developed countries. The periphery contains underdeveloped countries Resources Goods Resources Goods Resources flow into the core for industrial produc on. High-value consumer goods flow back to the periphery This structure of the world economy makes the core richer The core and periphery serve different func ons within the world economy Note that the core is much smaller and contains less people than the periphery

3 1980s Neoliberalism Free global trade can s mulate economic growth and large businesses can profit more without government interven on. Universal development can therefore be achieved through the promo on of trade not aid. With no trade tariffs or du es, a wide choice of goods can be bought worldwide at low cost Declining governments power and influence due to increased TNC power WASHINGTON CONSENSUS Washington consensus organisa ons (World Trade Organisa on, Interna onal Monetary Fund, and World Bank) promoted trade not aid Transna onal Corpora ons freely Poor countries have to repay invest overseas due to skilled all historial debt, with interest workforces and no trade barriers Now being surpassed by Promotes entrepreneurship and post-neoliberalist ideas of compeve businesses greater government spending Mul plier effect The mul plier effect can lead to an upward spiral of economic growth Immigra on TNC investment can create large-scale employment Economic Economic growth encourages more people to move to a region Investment by TNCS growth Higher levels of employment results in more local spending and consump on, which drive economic growth Transna onal Corpora ons (TNCs) will Governments must be encouraged to move a ract TNCs by reducing to areas will a large and skilled workforce Job crea on Consump on barriers to trade and investment, and by reskilling the workforce

4 Sustainable development Taking environmental factors into account, sustainable development meets the needs of the present without compromising the ability of future genera ons to meet their own needs, according to the Brundtland report. Ensures that future genera ons have the right to a high standard of living Could inhibit developing na ons ability to industrialise and experience rapid growth GRO HARLEM BRUNDTLAND Former Prime Minister of Norway, she chaired the United Na ons World Commission on Environment and Development Could prevent a resource crisis Difficult to implement universal Highlights the need for global and long-term policies equality Is aware of environmental, economic and social needs Sustainability has become a buzzword and can seem a vague term Sustainability Venn diagram There are three pillars of sustainable development: social, environmental and economic All three pillars must be present for a country to develop sustainably Sustainable development must therefore have equality across society, must not degrade the environment and must result in economic growth Bearable ENVIRONMENTAL SOCIAL Sustainable Viable Equitable ECONOMIC There are natural limits to economic growth and the earth cannot support an everexpanding economy Economic growth must be balanced with an awareness of resource consump on and the need for equity Some people argue that the environment pillar is the most fundamental

5 1990s Human development Development cannot be achieved through economic improvement alone. Mul ple dimensions (e.g. social, cultural, poli cal) need to be taken into account. Development means individuals have freedom to make life choices. Wider defini on of development takes human welfare into account People can live happy lives without complete free choice AMARTYA SEN An Indian philosopher and economist. Focusing on human welfare, he has a Noble prize for his work on famine and poverty Assesses development on an individual (not a na onal) scale People can have complete free choice, but live unhappy lives Believes everyone is equally en tled to a good life Free choice can focus on individual needs, not those of society or collec ve groups Livelihood assets All human beings have livelihood assets, which they can use to make choices Financial capital Human capital Human capital includes: educa on, knowledge, skills and health Physical capital includes: Livelihood assets are not transport, communica ons, limited to things of financial value, but also include things of human, physical, social and natural value Financial capital includes: wages, savings, pensions and remi ances Natural capital Social capital Physical capital technology and energy Social capital includes: representa ves, friends, neighbours and leaders Natural capital includes: land, water and wildlife

6 2000s Post- development The rich cannot li the poor out of poverty. Local communi es need to address their own problems, using their own ideas. People have to develop themselves, rather than relying on ill-suited ideas from overseas. ARTURO ESCOBAR A Columbian anthropologist. Researching poli cs and social movements in South America, he is a cri c of development Countries do not have to develop Provides limited prac cal according to Western ideas alterna ves to replace Local communi es could be overseas assistance empowered by crea ng their own development ideas The poorest of the poor will struggle to meet their basic Developing countries do not have needs in the short-term to follow the cultural and moral guidance of development donors Data shows that development has succeeded, to some extent Improving teaching and learning of development issues Supported by funding from the UK Department for Interna onal Development