Obstacles to Development
How can a country develop itself?
Self-Sufficiency Model
Country invests equally in its own businesses to
produce what the country needs
Protects domestic businesses from foreign companies
Protects inefficient businesses
Creates a large government bureaucracy, often with
abuse and corruption
Ex: India & China 1940s-1970s
Rostow’s Model
(International Trade or Modernization Model)
Country must identify its unique resources and focus
on using them in global economy
International trade will expand local industry
Five Steps:
Traditional Society (“non-productive” activities)
Preconditions for Take-off (innovation & infrastructure)
Take-off (rapid growth of few industries)
Drive to maturity (rapid growth in many industries)
The age of mass consumption (post-industrial)
Rostow’s Model
(International Trade or Modernization Model)
Rostow’s Model
(International Trade or Modernization Model)
Problems with Rostow’s Model
(International Trade or Modernization Model)
Uneven resource distribution: some countries or
parts of countries have resources, others don’t
Dependent on world markets and prices
Dependent mainly on MDCs as consumers
Rostow’s Model
(International Trade or Modernization Model)
Widely used by countries
Has yielded large economic growth for some
countries
WTO encourages international trade and works to
reduce trade barriers, often seen as undemocratic
and overriding sovereignty
Transnational Corporations invest unevenly
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
There is one single capitalist world economy that is
divided into three regions: core, periphery, semiperiphery
Core: developed countries that control world
economy and trade by exploiting the periphery
Semi-periphery: countries that are still exploited by
core, but also exploit peripheral countries (Brazil,
China, South Africa, etc.)
Periphery: Countries exploited by Core for natural
resources, cheap labor, and markets
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Periphery
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Periphery
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Periphery
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Wallerstein was influenced by Marx, Lenin, and
Dependency Theory
Exploitation by core began with slavery and
colonialism and continues with neo-colonialism
Countries can move within the world system: Will
India move to the semi-periphery?
Regions of world system not only defined by location,
but by processes at play in each country
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Processes that involve higher
levels of education, higher
salaries, new technologies,
and generate more wealth in
the world economy
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Periphery
Processes that involve higher
levels of education, higher
salaries, new technologies,
and generate more wealth in
the world economy
Processes that involve lower
levels of education, lower
salaries, less technology, and
generate little wealth in the
world economy
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core
Periphery
Processes that involve higher
levels of education, higher
salaries, new technologies,
and generate more wealth in
the world economy
Processes that involve lower
levels of education, lower
salaries, less technology, and
generate little wealth in the
world economy
Semi-Periphery
Both core and periphery
processes are occurring here,
serves as a buffer bet ween
core and periphery
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Oil refining
Banking
Garment manufacturing
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Oil refining
Soft ware engineering
Garment manufacturing
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Food service
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Food service
Tourism
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Food service
Tourism
Logging
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Food service
Tourism
Logging
Financial planning
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Food service
Tourism
Logging
Electronics assembly
Financial planning
Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Core processes or peripheral processes?
Copper extraction
Banking
Garment manufacturing
Oil refining
Soft ware engineering
Farming
Academic research
Fishing
Healthcare
Food service
Tourism
Logging
Insurance
Electronics assembly
Financial planning
Problems with Wallerstein’s Model
(World Systems Theory or Core-Periphery)
Does not consider internal factors for each country
Vague model with a lot of shifting and change
involved and few fixed or measurable criteria
Does not offer a way to fix the capitalist system
Obstacles to Development
Financing Development
Loans/Foreign Debt
Structural Adjustment Programs
Fair Trade
Producer standards
Labor standards
Political instability
Widespread disease (Malaria, HIV/AIDS)
Obstacles to Development
Environmental constraints (desertification)
Cultural gender inequality
Foreign competition
No foreign investment
Uneducated labor force
Governmental mismanagement (Zimbabwe)