UNIT-2

MODELS AND PARADIGMS OF Lectures- 10

DEVELOPMENT COMMUNICATION
UNIT-2 10
L
1. Linear Models: Rostow’s Demographic (Stages of Growth),
Transmission
2. Non-Linear: World System Theory, Neo-Marxist Theory
3. Changing Paradigms of Development
4. Alternative Paradigms: Participatory, Think local/ Act global –
Think global/ Act local
LINEAR MODELS: ROSTOW’S
DEMOGRAPHIC (STAGES OF
GROWTH), TRANSMISSION
The theorists of 1950s and early 1960s viewed the process of
development as a series of successive stages of economic growth
through which all the advanced nations of the world had passed.

Economic theories/models explain and predict:

1. Economies develop (or not) over time

2. Barriers to growth can be identified & overcome
3. Govt. can induce (start), sustain & accelerate growth with
appropriate development policies
 DEVELOPMENT THEORY:
LINEAR STAGES
Development theory is a conglomeration of theories about how desirable change in society is best
achieved.

One of the key development models is the linear stages of growth model.

The Linear Stages of Growth model is an economic model which is heavily inspired by the
Marshall Plan of the US which was used to rehabilitate Europe’s economy after the Post-World
War II Crisis.

The linear stages of growth models are the oldest and most traditional of all development plans. It
was an attempt by economists to come up with a suitable concept as to how underdeveloped countries
of Asia, Africa and Latin America can transform their agrarian economy into an industrialized one.
 W.W. ROSTOW'S STAGES OF ECONOMIC GROWTH

The most popular of the linear stage models are Rostow’s Stages of Growth Model.

Walt Whitman Rostow (1916-2003) was an American economist & political theorist who presented 'Stages of
Growth' model of development in 1960 in his book, The Stages of Economic Growth: A Non-Communist
Manifesto.

All the developed industrial nations of the world transformed themselves from backwardness to prosperity
can be described in terms five stages of economic growth which are:

(1) Traditional society,

(2) Pre-conditions to take-off,

(3) Take-off,

(4) Drive to maturity,

(5) High mass consumption.

Fig: Rostow’s Stages of Economic Growth Model of Development.
(1) Traditional Society:

The traditional society is one whose production functions are based up

pre-Newton science and technology. This unchanging technology places a
ceiling on productivity.

In this society a higher proportion of resources is devoted to agriculture.

Man is valued on family basis, not on the basis of his capabilities.

The society is ruled by those who owned or controlled land.

These landlords used to have a long chain of servants and soldiers.

This society was available during the Medieval Ages in Europe.

(2) Pre Conditions to Take Off:

It is a period of transition where the conditions for take-off are developed.

This paved the way for the emergence of new ideas, leading to economic progress
which could provide a better life for the present and future generation.

It is the education which broadens the mental out look of the people, and it
induces the people to accept new challenges. In this way, the new entrepreneurs
come forward to take risks.

Due to establishment of financial institutions savings and investment are mobilized

in SOC.

A country with 75% of its population in agriculture will have to be shifted to

industry, trade and commerce.
3) Take Off Stage:

The take-off stage remains for more than two or three

decades. In this stage three conditions must be
satisfied:
(i) The rate of investment must rise from 5% to 10% of GNP.
(ii) The development of one or more substantial manufactured
sector with the high growth rate.
(iii) The existence of social, political and institutional framework
which could give impulses to modern sector expansion.
Further:

(i) Increase in rate of investment: It is attached with changes in income

distribution, i.e., the income begins to flow into the hands of capitalists who
would re-invest to increase the rate of capital formation.

This process of capital formation will further be promoted by fiscal measures of

govt., banking institutions and capital markets.

(ii) Emergence of leading sectors: The entrepreneurs of one or two leading sectors
re-plough their profits.

Moreover, the expansion of leading sectors helps to pay for imports and debt
charges. It was the Canadian grain, Swedish timber and Japanese silk which
helped these countries to develop other sectors of their economies.
Loan able funds play an important role in the emergence of leading sectors,
particularly in financing large overhead capital.

Rostow grouped the sectors of the economy as:

 (a) Primary growth sectors:
 Where possibilities for innovations in unexplored resources yield a higher growth rate.

 (b) The Supplementary growth sectors:

 Where these sectors supplement. For instance coal, iron, and engineering industry in relation to rail road.

 (c) The Derived growth sectors:

 Advances in these sectors occurs in relation to growth of total real income, population and
industrial production. Historically, these sectors range from cotton textile, heavy industrial
complex and dairy products.
(4) Drive to Maturity Stage:

During this interval the economy experiences regular growth and modern
technology is extended over to a bulk of resources.

On the basis of entrepreneurial and technological development everything is

produced which is desired.

There may be a shift in emphasis from coal, iron and heavy engineering to
machine tools, chemicals and electrical equipments.

Germany, France, UK and US passed through this period during the end of 19th
century. 10% to 20% of GNP is ploughed in investment and output grows more
than increase in population. The goods which were earlier imported now they are
produced at home. In short, the economy becomes a part of international
economy.
(5) Age of High Mass Consumption Stage:

According to Rostow as societies achieved maturity in 20th century,

real incomes rose and the people became aware of as well
anxious to have a command over the consumption of the fruits
of mature economy.
The leading sectors of the economy produce consumer durables
like TV, fridges and automobiles etc.
Here the society pays more attention on social welfare and social
security than on economic growth.
 PRACTICAL IMPORTANCE OF ROSTOW'S
STAGES:

The above stage theory of development, or the history of modern societies

1. The advanced countries had passed the stage of take off into self-sustaining
growth.
2. While the UDCs are still passing through traditional society or the pre-conditions to take-off.

1. UDC should follow the rules of development to take-off and then to self-sustaining economic growth.

2. In this respect, the UDCs should mobilize domestic and foreign savings in order to generate sufficient
investment to accelerate economic growth.

3. It means that the Rostow stage theory stressed upon capital formation for the sake of economic
development.
 CRITICISM:
1. Rostow's five stages of economic growth are against Marx stages of feudalism,
bourgeoisie, capitalism, socialism and communism.

2. Both these approaches describe the evolution of society from economic point of
view.

3. Both the approaches admit that economic changes have social, political and
cultural consequences.

4. Rostow did not discuss the class conflict.

5. Rather, Rostow conveyed a message to UDCs that they should learn a lesson from
the good or bad experiences of DCs.
(i) Stage Making Idea is Misleading: Rostow says that all the nations have passed through these stages, but the
nations have not followed this route when they are having different environment and resources etc.

(ii) Leading Sectors: According to Rostow the leading sectors are responsible for economic expansion.

(iii) Data is Unconfirmed: Rostow regarding doubling of productivity in the period of take-off stage is not
reliable and confirmed.

(iv) No Distinction Between Pre-Conditions and Take-Off: The characteristics of pre-conditions and take-off
are very much similar.

(v) Self-Sustained Growth: The increase in per capita income, increase in savings, and investment may even
take place before take-off.

(vi) Pre-Conditions is Not a Chronological Concept: Rostow's views regarding agriculture are not true
historically.

(vii) Idea of Increase in Investment is Not New: Rostow presented the idea that increase in investment from
5% to 10% will take the economy into take-off stage.
 ROSTOW'S STAGES AND UDCS:
Rostow stages have a greater appeal for UDCs.

(i) Attitudes and Arrangements in UDCs: The models were found

applicable in DCs because the European countries which received aid
under 'Marshall Aid Program', initiated by US to construct war affected
economies of Europe possessed the necessary structural, institutional
and attitudinal conditions, i.e., they had well-integrated commodity
and money markets, highly developed transport facilities, well trained
and educated manpower, the motivation to succeed, and an efficient
govt. bureaucracy.
(ii) Removal of Unemployment: The conditions regarding take-off as presented by Rostow
do not entertain the case of those countries which have abundance of population, and
unemployment is increasing there. Thus the theory which does not present any solution to
remove unemployment how it can be applicable in case of UDCs.

(iii) Value of COR is not Constant: In Rostow and H-D models of growth the value of
COR has been kept constant. But such assumption may be true in case of DCs, but not in
case of UDCs.

(iv) Spontaneous and Automatic Growth: Rostow's take offstage shows that here the
growth is automatic and spontaneous. But in case of UDCs, there does not exist any
possibility that in a sudden growth will take place.

(v) Integration with World Economy: Now a days the UDCs are well integrated with the
world economy.. It means that development can not be attained just through supplying
the missing factors like capital, foreign exchange and skill.
 NON-LINEAR: WORLD
SYSTEM THEORY, NEO-
MARXIST THEORY
 WORLD SYSTEM THEORY
WALLERSTEIN’S THREE-PART WORLD SYSTEM
THEORY
International-Level of Analysis
Wallerstein's three-part world system theory (Dependency Theory) focus on the
characteristics of the three parts of the world includes;
• Core- The core states are the most economically developed and diversified, wealthy,
and powerful countries with strong governments, such as United States, Canada, and
Germany
• Semi-periphery- The semi-periphery states are the countries developing towards the
core states, such as China, Brazil, and Mexico.
• Periphery- The periphery states are the countries that have the least developed and
diversified economy and weak governments, such as the Sub-Saharan Africa and
Caribbean countries
 DEPENDENCY THEORY
Dependency thinking could allow development with external links with the developed parts of
the globe.
Dependency thinking says that resources flow from the ‘periphery’ of poor and underdeveloped
states to a ‘core’ of wealthy countries, which leads to accumulation of wealth in the rich states at
the expense of the poor states.
Dependency theory states that not all societies progress through similar stages of development.
 Periphery states have unique features, structures and institutions of their own and are considered weaker with
regards to the world market economy,
 Dependency theorists argue that underdeveloped countries remain economically vulnerable unless they reduce their
connections to the world market.

Dependency theory states that poor nations provide natural resources and cheap labor for
developed nations with which developed nations have the standard of living which they enjoy.
Dependency theory is essentially a follow up to structuralist thinking, as
structuralist did not consider that development would be possible at all
unless a strategy of delinking and rigorous ISI was pursued.
Dependency theory has much overlap with Neo-Marxism and World
Systems Theory, which is also reflected in the work of Immanuel
Wallerstein, a famous dependency theorist.
 Wallerstein rejects the notion of a Third World, claiming that there is only one world
which is connected by economic relations (World Systems Theory).
 He argues that this system inherently leads to a division of the world in core, semi-
periphery and periphery. One of the results of expansion of the world-system is the
commodification of things, like natural resources, labor and human relationships.
• Immanuel Wallerstein characterizes the world system as a set of
mechanisms which redistributes resources from the
periphery to the core.
• In his terminology, the core is the developed, industrialized,
democratic part of the world, and the periphery is the
underdeveloped, raw materials-exporting, poor part of the
world; the market being the means by which the core exploits
the periphery.
• The core nations primarily own and control the major means of production in the
world and perform the higher-level production tasks.
• The periphery nations own very little of the world’s means of production and provide
less-skilled labor.
PARTS AND BASIC DESCRIPTIONS
1. Core
 Processes that incorporate higher levels of education, higher salaries, and more technology
 Generate more wealth in the world economy

2. Periphery
 Processes that incorporate lower levels of education, lower salaries, and less technology
 Generate less wealth in the world economy

3. Semi-periphery
 Places where core and periphery processes are both occurring.
 Places that are exploited by the core but then exploit the periphery.
 CORE NATIONS – CHARACTERISTIC
FEATURES
 The most economically diversified, wealthy, and powerful (economically and militarily)
 Highly industrialized
 Tend to specialize in information, finance and service industries
 Produce manufactured goods rather than raw materials for export
 More often in the forefront of new technologies and new industries.
 Have more complex and stronger state institutions that help manage economic affairs internally and externally
 Have a sufficient tax base so these state institutions can provide infrastructure for a strong economy
 Have more means of influence over noncore nations
 Relatively independent of outside control
 PERIPHERY NATIONS – CHARACTERISTIC
FEATURES

 Least economically diversified

 Tend to depend on one type of economic activity, such as extracting and exporting raw materials to core nations
 Are often targets for investments from multinational (or transnational) corporations from core nations that
come into the country to exploit cheap unskilled labor for export back to core nations
 Tend to have a high percentage of their people that are poor and uneducated.
 Inequality tends to be very high because of a small upper class that owns most of the land and has profitable
ties to multinational corporations
 Have relatively weak institutions with little tax base to support infrastructure development
 Tend to be extensively influenced by core nations and their multinational corporations.
 SEMIPERIPHERY NATIONS –
CHARACTERISTICS FEATURES
Semiperiphery nations are those that are midway between the core and periphery.

According to Immanuel Wallerstein, a core nation dominates over peripheries when it has a lead
in three forms of economic dominance over a period of time:
 1.
Productivity dominance allows a country to produce products of greater quality at a
cheaper price compared to other countries.
 2. Productivity dominance may lead to trade do trade dominance.
 3. Trade dominance may lead to financial dominance. Now, more money is coming into the
country than going out. Bankers of the dominant nation tend to receive more control of the world’s
financial resources.
 INTERNATIONAL TRADES STRENGTHENS DEVELOPMENT
OF CORE COUNTRIES
(EXPORTING MANUFACTURED GOODS) AND
CONSTRAINS DEVELOPMENT IN PERIPHERAL COUNTRIES
(EXPORTING RESOURCES)
Modern nation-states are all part of the world-system of capitalism.

Wallerstein believes that there are only three basic types of social systems.

 Mini-systems- are the small, homogenous societies studied by anthropologists. Hunting and gathering,
pastoral, and simple horticultural societies are relatively self-contained economic units, producing all goods
and services within the sociocultural system itself.
 World empires- This system has an economy that is based on the extraction of surplus goods and services from
outlying districts. Much of this tribute goes to pay for the administrators who extract it and for the military to
ensure continued domination, the rest goes to the political rulers at the head of the empire.
 World-economies- the world-economies have no unified political system; nor is its dominance based on military
power alone. However, like a world-empire, a world-economy is based on the extraction of surplus from outlying
districts to those who rule at the center.
Wallerstein argues, capitalism has had a division of labor that encompassed several
nation states.
The capitalist world-system began in Europe in about 1500 and under the spur of the
accumulation of capital, expanded over the next few centuries to cover the entire globe.
In the process of this expansion the capitalist world system has absorbed small mini-
systems, world-empires, as well as competing world-economies.
The capitalist world-economy was created by establishing long-distance trade in
goods and linking production processes worldwide.
The modern nation state was created in Europe along with capitalism to serve and to
protect the interests of the capitalists.
European capitalists was the establishment of strong European states that had the
political and military power to enforce this inequality.
For Wallerstein, the capitalist world-economy is a mechanism of surplus
appropriation that is both subtle and efficient through constantly expanding
productivity.
CORE, SEMI-PERIPHERAL & PERIPHERY
Wallerstein divides the capitalist world-economy into three areas:
 Peripheral areas - The peripheral areas are the least developed; they are exploited
by the core for their cheap labor, raw materials, and agricultural production.
 Semi-peripheral - The semi-peripheral areas are somewhat intermediate, being both
exploited by the core and take some role in the exploitation of the peripheral areas.
 Core states – The core states are in geographically advantaged areas of the
world—Europe and North America. Core states also promote capital
accumulation in the world-economy internally through tax policy, government
purchasing, sponsorship of research and development, financing
infrastructural development (such as sewers, roads)
These states have the political, economic, and military power to enforce unequal
rates of exchange between the core and the periphery.
 WALLERSTEIN AND MEXICO
Mexico, which is a newly industrializing country, is a semi-periphery country based
on Wallerstein’s theory.
 Mexico's economy is based on the secondary sector, which is manufacturing, and developing towards the core
country.
 Mexico is exploited by the United States and other core countries due to the cheap labor in the country.
 Big companies from the core countries set up factories in Mexico in order to minimize the cost of labor force.
Beacause the quality of working condition of the workers is low, such as low pay, over working, and grimy
working places.
 Furthermore, the toxic waste from the factory pollutes the land.

Mexico also plays the role of exploiting other countries, such as Honduras.
Human traffickers traffic people from Honduras to subject to forced labor
in Mexico.
 NEO-MARXIST THEORY DEPENDENCY
THEORIES
DEPENDENCY AND UNDERDEVELOPMENT IN THIRD
WORLD
The end of the World War II introduced COUNTRIES
an era of economic expansion and polarization in the world
(emergence of the Cold War), and it was in that light that American social scientists were encouraged to
study the Third World nation-states with the intention to promote economic development and political
stability in the Third World.
However, scholars from countries targeted by this Modernization School of development started to develop
their own theories, partly as a result of 'sub-optimal' results of policies based on the modernization theories,
as well as concluding that imperialism in general "has actively underdeveloped the peripheral societies"
(Martinussen, 1997:86) they are living in. Critique on the Modernization School first arose in Latin America
as a response to the bankruptcy of the program of the United Nations Economic Commission for Latin
America (ECLA). In short, the ECLA promoted protectionist policies together with industrialization through
import subsidies, which, in practice, resulted in a brief economic expansion in the 1950s followed by
economic stagnation (unemployment, inflation, declining terms of trade, etc.). (So, 1990:91).
Overall, the failure of the ECLA and the resulting decline of the Modernization School theories, together
with the crisis of orthodox Marxism, gave rise to what is now referred to as Neo-Marxist Dependency
Theories.
 CLASSICAL NEO-MARXIST DEPENDENCY
THEORIES
 Underdevelopment and dependency theory from a Third World perspective were carried out by
Paul Baran and Andre Gunder Frank.
Baran argued that dual economies characterized the 'backward' countries: a large agricultural
sector and a small industrialized sector (Martinussen, 1997:86).

Profit margins and the potential to generate economic surplus from agricultural produce are
still minimal.

Baran emphasized class relations and their impact upon the utilization of economic surplus
and its distribution of power as primary barriers preventing development, thus the crucial
point being internal conditions of the Third World country.

He advocated as solution (escape from dependency) implementation of extensive state

intervention to promote nationally controlled industrialization as a precondition for
evolution of other industrial sectors.
Frank's identifies the causes of underdevelopment, or: the development of
underdevelopment, is the notion of metropoles and satellites, where metropoles are
the target of merchant capital and the satellites' existence purely for 'feeding' the
requirements of the metropoles.

The crucial mechanism for the extraction of economic surplus was trade and other
kinds of exchange of goods and services, including both international exchange and
internally in the peripheral societies.
Frank's proposed solution to the problem of dependency was the requirement for the
Third World countries to effectively de-link from the world market, to allow a country
to develop.
Thereby directly blaming external factors (like their history of colonialism), whereas
the Modernization School had assumed that causes were to be found inside the Third
World countries, such as culture, overpopulation, little investment or just a general lack of
motivation of the people to do anything 'really constructive' towards progress of the
nation.
 BROADENING AND DEEPENING OF
THE THEORIES
The 'classical' dependency theories are not only from Latin America, but also to
compare dependency theories with African and Asian countries.
It appeared that not all observations could be explained by existing theory alone:
the actual changes in the less developed countries implied greater and greater
differentiation between the underdeveloped countries.
In other words, Third World nations could not be categorized as one homogenous
group and, at least, their individual (colonial) heritage and social structure
ought to be taken into account, therefore elaboration on and expansion of the
relatively closed concepts of the classical Neo-Marxists was required.
The most important contributors to the debate of the 'new dependency' studies are
F.H. Cardoso, and Immanuel Wallerstein during his early publications (though
his later works have been categorized as 'world-system school’).
 Classical Dependency 'New' dependency
Similarities
Focus of research Third World development
Level of analysis National level
Key concepts Core-periphery, dependency
Policy implications Dependency harmful to development

Historical-structural, focus on concrete

High-level abstraction, focus on general
situation of dependency
Differences pattern of dependency
Methodology
Emphasis on internal: class conflict, state
Emphasis on external: unequal exchange,
Key factors
colonialism
Mostly economic
Nature of dependency
Dependency and development Mostly socio-political
Can coexist (associated-dependent
Mutually exclusive (leads only to
Table 1. Comparison of old and new versions of
underdevelopment)
dependency theories.
development)
CONCLUSIONS
As a result of the dissatisfaction of the development policies advocated by the Modernization School, new theories
emerged based on the point of view of the developing countries.

These Dependency Studies focused on the division of the world into core and periphery, where the level of analysis was
the Third World nations involved.

Early dependency theorists focused on the general pattern of dependency as an economical phenomenon due to
colonization and unequal exchange, whereas later scholars of the Dependency School investigated the historical-
structural nature of dependency of peripheral countries, emphasizing the state and class conflicts (hence a socio-political
phenomenon) and asserting that dependency and development can co-exist by so-called 'associated-dependent development’.
CHANGING PARADIGMS
OF DEVELOPMENT
 ALTERNATIVE PARADIGMS:
PARTICIPATORY, THINK LOCAL/ ACT
GLOBAL – THINK GLOBAL/ ACT
LOCAL