Summary
Summary development strategies
different strategies used by LEDC's to develop
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Development startegy : the way in which a developing country aims to develop.> it needs to take into account existing barriers and resources (people, money, power,
materials, etc.)
Rostow model ( US economist Rostow in 1960 ) = describes the differents stages or steps of
development :This model isn’t a strategy, but a theory on how does Development happens.
I) Traditional society :
- Subsistence agriculture
- Limited technology
II) preconditions for take off :
- External demand for raw materials = start the economic change
- Development of more productive, commercial agriculture = start of exports
- Widespread and enhanced investment in changes to the physical environment to
expand production (ex : irrigation, ports )
- Increasing technologies
- Changing social structure, individual mobility begins, development of national
identity and shared economic interests.
III) take off :
- Urbanization, industrialization, technological breakthroughs.
- Secondary Sector ( being manufacturing )expands, shift between first and second
sector.
IV) drive to maturity :
- Diversification of the industrial base.
- Rapid development of transport infrastructures
- Large scale investments in social infrastructures : schools, hospitals.
V) age of high mass consumption :
- The industrial base is of great importance in the economy, the primary sector has
diminished
- Widespread and normative consumption of high value consumer goods.
- Urban society
VI) Beyond mass consumption :
- Age of diminishing relative marginal utility
- Age for durable consumer goods.
TOP-DOWN Development Strategy = authoritarian government planning, big TNC’s, or the
World Bank/IMF dictate policy “from above”. Usually this means large-scale, capital-
intensive projects, like creating ports, railroads, mines, factories (eg three gorges dam in
china). This strategy is often applied to countries that are deeply in debt, and must
concentrate on doing one activity to pay off their debt. Often these top-down schemes really
favour the interests of the TNC’s more than the people in the country.
Case study : South Korea :
I) Government of the country financing big industries :
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