STAGES OF
ECONOMIC
DEVELOPMENT
How do countries develop?
WHERE WE’VE BEEN AND WHERE WE’RE GOING…
„  Impacts of colonialism – legacy of destruction
- poverty
- corruption
- dependency
„  Economic development and social development – Like two peas in a pod
„  Theories and models
„  Wallerstein’s World Systems Theory
„  Rostow’s stages of economic development (Modernization Theory)
WORLD SYSTEMS THEORY
„  Immanuel Wallerstein American Sociologist
„  1970s
„  WST based on idea that there is ONE world that is interconnected
through a network of economic exchange relationships
„  World divided into Core, Semi-Periphery and Periphery based on
current level of development
„  Clear division of labour between core and periphery;
CORE: High level of technological innovation to manufacture complex
products and services
PERIPHERY: Provides cheap labour, raw materials for the core
„  Unequal terms of trade
According to WST, the core, semi-periphery and periphery countries are not
necessarily geographically fixed
ROSTOW’S MODERNIZATION THEORY
„  Read pages 169-170 in Global Connections
1. 
2. 
3. 
4. 
5. 
Identify and explain Rostow’s economic growth model, also known as
Modernization Theory
What limitations have been cited with his model?
Create a chart or plot graph that identifies:
1. 
Each stage of development
2. 
Characteristics of each stage
3. 
Examples of countries/situations for each stage
Give evidence form our economy and lifestyle, to show that Canada is in
Stage 5 of Rostow’s model.
Suggest how colonialism and concession companies aided the economic
takeoff of imperial nations and hindered that of the colonies.