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

• Modernisation Theory – Rostow, 1960 • Asian model – World Bank, 1991 • Dependency theory – Frank, 1967 • World systems theory – Wallerstein, 1974

Liberal

Marxist

1. Modernisation Theory

• W.W.Rostow, 1960 • Economic development is linear, 5-stage

process • Countries take-off and develop when pre-

conditions are met • Industrialisation follows, creating jobs, trade

and consumers

1. Modernisation Theory

Modernisation Theory

How could this theory influenced

world powers and

development?

It was so influential that developing countries wanting to create the preconditions for take off by investing in key infrastructure and industries.

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

• 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?

Manufactured goods – costly return for primary goods Ai

d Polluting industry Political and economic ideas

Brain drain

Raw materials – v little paid for resources

Political support

Debt repayment and purchase payments

Dependency Theory – An outcome of colonialism

Core Periphery

Dependent area Relationship

Investments

Wealth

Periphery Core Cash Crops –

Coffee Tobacco

Development

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)