Theories explaining the growth of
Superpowers
• Several theories are used to explain the
existence of rich, powerful countries and the
weaker, poorer countries they dominate
• Split into 2 categories:
– Liberal: emphasises the creation of wealth and
power through capitalism.
– Marxist: emphasises how some maintain their
wealth and power at expense of others.
Theories
•
•
•
•
Liberal
Modernisation Theory – Rostow, 1960
Asian model – World Bank, 1991
Dependency theory – Frank, 1967
World systems theory – Wallerstein, 1974
Marxist
1. Modernisation Theory
• W.W.Rostow, 1960
• Economic development is linear, 5-stage
process
• Countries take-off and develop when preconditions are met
• Industrialisation follows, creating jobs, trade
and consumers
1. Modernisation Theory
Modernisation Theory
It was so influential that
developing
countries
wanting to
How
could
create the preconditions for take
this theory
off by investing
in key
infrastructure
and industries.
influenced
world powers
and
development?
The Asian Tigers are
examples of where this
succeeded.
How were they able to
implement the preconditions
for take off?
Take-off Model - Criticism
• Many countries borrowed heavily + invested
money into projects to meet pre-conditions
• Failed to develop so in debt
2. Asian Model
• World Bank, 1993
• Countries like China, S.Korea and Taiwan had
developed rapidly since 1970
• As they opened up to free trade and foreign
investment
• State invested in education and skills
development
2. Asian Model - Criticisms
• Model fails to take full account of support and
aid provided by the USA
• Many NICs had protectionist, not free-trade
policies
3. Dependency Theory
• A. G. Frank, 1967
• World divided into North v South
• Developed world keeps the rest of world in
state of underdevelopment, so it can exploit
resources
• Aid, debt and trade patterns continually
reinforce the dependency
North-South Divide
Brandt Line
3. Mechanisms of Dependancy
(p.109)
Core developed countries
Peripheral developing countries
•
Raw materials –
v little paid for
resources
Political support
Debt repayment and
purchase payments
Brain drain
Manufactured
goods – costly
return for
Ai
primary goods
dPolluting
industry
Political and
economic
ideas
•
•
•
What does this
image
illustrate?
Why does this
situation help
to keep the
rich, rich and
the poor, poor?
What are the
flows to the
developed
world?
What flows to
the developing
world?
Dependency Theory – An outcome
of colonialism
Dependent area
Relationship
Investments
Core
Periphery
Wealth
Periphery
Cash Crops –
Coffee Tobacco
Development
Core
3. Dependency Theory - Criticism
• NICs have broken out of North-South divide
mould since 1960s.
• Theory does not allow for developing countries
to have say in their own development.
4. World Systems Theory
• I. Wallerstein, 1974
• World is divided into core, semi-periphery and
periphery
• Semi-periphery nations are broadly equivalent to
NICs that developed in 1970s.
• Wallerstein recognised that some countries could
develop and gain power, showing that wealth and
power were fluid, not static.
4. World Systems Theory
4. World Systems Theory Criticism
• More a description of the world than an
explanation of it.
• Does not account for the rise of China and was
written during the Cold War (bi-polar era)