Major THEORIES of ECONOMIC Development [AP Human Geo Review—Unit 7 Topic 5]

Summary

In this video, the host explores four key theories explaining the global disparities in development: Rostow's Stages of Economic Growth, Dependency Theory, Wallerstein's World Systems Theory, and Commodity Dependence Theory. The video highlights how geography, historical exploitation, and global economic structures contribute to uneven development between the Global North and South. The host breaks down each theory's approach to understanding why some countries are more developed than others and how past colonial relationships and economic divisions continue to shape modern global inequalities.

Takeaways

• 😀 Geography plays a crucial role in a country's level of economic development, with the Global North generally being wealthier and the Global South less developed.
• 😀 Rostow's Stages of Economic Growth posits that all countries progress through five stages, starting with agriculture and ending with mass consumption in a service-based economy.
• 😀 A major criticism of Rostow's model is its oversimplification, especially in assuming that all countries will inevitably become wealthy over time, ignoring historical and global interconnectedness.
• 😀 Dependency Theory argues that peripheral countries remain poor due to exploitative economic practices of core countries, perpetuating inequalities stemming from colonialism.
• 😀 According to Dependency Theory, the global economic system forces peripheral countries to extract natural resources and manufacture goods while core countries focus on services and consumption.
• 😀 Wallerstein's World Systems Theory suggests that countries are divided into core, semi-peripheral, and peripheral categories, with the most developed countries having industrialized earlier.
• 😀 Wallerstein’s theory builds upon Dependency Theory, highlighting how imperialism and colonialism have led to lasting inequalities between nations.
• 😀 Semi-peripheral countries, like the BRICS nations, are in a transitional space between core and peripheral economies, playing a key intermediary role.
• 😀 Commodity Dependence Theory links economic underdevelopment to countries whose economies rely heavily on exporting raw materials or agricultural products, which are vulnerable to fluctuating prices.
• 😀 Commodity prices tend to decrease over time, which makes economies relying on commodity exports increasingly vulnerable to long-term economic shrinkage.

Q & A

What are the four theories of spatial variation and development mentioned in the video?

The four theories discussed are Rostow's stages of economic growth, Dependency Theory, Wallerstein's World Systems Theory, and Commodity Dependence Theory.

What is the main idea behind Rostow's stages of economic growth?

Rostow's stages of economic growth propose that all countries pass through five distinct stages of development, starting with agriculture and ultimately reaching mass consumption in the tertiary sector.

What are the criticisms of Rostow's model of development?

The main criticisms of Rostow's model are that it is too simplistic, assumes all countries will follow the same development path, and ignores the impacts of globalization and the influence of other countries' economies.

How does Dependency Theory explain the spatial variation in development?

Dependency Theory argues that peripheral countries are underdeveloped not because of their own fault, but because they were historically exploited by core countries through colonialism, and continue to be disadvantaged by the global economic system.

What role does imperialism play in the explanation of development according to Wallerstein's World Systems Theory?

Wallerstein's World Systems Theory explains that core countries became wealthy by industrializing early, while peripheral countries remain underdeveloped due to the long-lasting effects of imperialism and exploitation during the colonial era.

What is the main difference between Rostow's theory and Wallerstein's World Systems Theory?

Rostow’s theory suggests that all countries will eventually pass through similar stages of economic growth, while Wallerstein’s theory emphasizes that global inequality is a result of historical exploitation, with core countries benefiting from the underdevelopment of peripheral countries.

How does Dependency Theory view the relationship between core and peripheral countries?

Dependency Theory views core countries as exploiting peripheral countries, keeping them economically dependent. This exploitation ensures that core countries maintain their wealth and power, while peripheral countries remain poor.

What is the key idea of Commodity Dependence Theory?

Commodity Dependence Theory posits that countries whose economies rely heavily on the export of raw materials or agricultural commodities are more likely to be underdeveloped due to the volatility of commodity prices, which can lead to economic instability.

Why does Commodity Dependence Theory suggest that countries focused on commodities are at a disadvantage?

According to Commodity Dependence Theory, commodity prices fluctuate, leading to short-term economic instability. In the long term, commodity prices tend to decrease, which can shrink the economies of countries dependent on commodity exports.

What are the 'core', 'peripheral', and 'semi-peripheral' categories in Wallerstein’s World Systems Theory?

In World Systems Theory, 'core' countries are the most economically developed and industrialized, 'peripheral' countries are the least developed and often rely on raw material extraction, and 'semi-peripheral' countries are in between, often industrializing but still subject to inequalities.