Rostow modernization model
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Rostow's modernization model outlines 5 stages of economic growth: 1) Traditional society focused on subsistence and barter 2) Transitional society with specialization, surpluses, and infrastructure 3) Take-off stage with industrialization, growing investment, and regional growth 4) Drive to maturity with diversification, innovation, and less reliance on imports 5) High mass consumption oriented toward consumer goods and services The model is criticized for being too mechanistic, based only on developed countries, and assuming all countries must adopt American-style mass consumption as the endpoint of development.
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Modernization theory
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1) The emergence of modernization theory in the late 1940s/1950s as a response to concerns about the spread of communism in developing countries. The theory promoted the adoption of Western capitalist and democratic models of development.
2) Modernization theory viewed developing countries as "traditionally" held back from development due to cultural barriers, and proposed they develop through industrialization and adopting Western values/institutions with assistance from Western countries.
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1. Emile Durkheim developed sociological theory to explain individual suicide rates within a social context, arguing that suicide is related to the level of social integration and group life in society.
2. Robert Merton developed strain theory to explain deviant behavior as different ways individuals attempt to achieve socially agreed upon goals like success, when the legitimate means are blocked.
3. Modern sociologists emphasize bringing together macro-level and micro-level approaches to study how social forces shape individual behavior and vice versa.
1 modernization theory of development
1. Modernization theory proposed that societies progress through evolutionary stages from traditional to modern.
2. Theorists like Rostow described these stages as traditional society, preconditions for takeoff, takeoff, drive to maturity, and high mass consumption.
3. Modernization theory has been criticized for being overly simplistic, ethnocentric, and promoting Western capitalist values over traditional ones.
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Modernization Theory posited that societies progress through predictable and universal stages of development from traditional to modern. It was influenced by evolutionary and functionalist theories. Relatively modernized societies are characterized by specialization, rational cultural norms, and emphasis on markets, while relatively non-modern societies emphasize tradition, particularism, and self-sufficiency. Late industrializers have advantages like learning from others but also challenges converting resources and disappointing expectations. Theories assumed modernization was systematic, transformative, phased, and brought countries closer to Western models through diffusion, but critics argue it ignored foreign influence and need for indigenous values.
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Modernization theory
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2. Robert Merton developed strain theory to explain deviant behavior as different ways individuals attempt to achieve socially agreed upon goals like success, when the legitimate means are blocked.
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2. The Lewis two-sector model and Chenery model describe theories of structural change, where resources shift from low-productivity agriculture to higher-productivity industry and services as countries develop.
3. International dependence theories examine how countries are influenced by relationships with more developed nations in their economic progress.
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Conflict Theory
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The Lewis model explains how economic growth is initiated through a structural shift as the industrial sector grows relative to subsistence agriculture. It focuses on the transfer of surplus labor from the traditional to the industrial sector. Rostow identified five stages of economic growth: traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption. Developing countries are typically in the early stages of traditional society or preconditions.
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The document discusses various economic and non-economic factors that promote economic development. It identifies key economic factors such as capital formation, natural resources, agrarian structure, marketable surplus in agriculture, industrial structure, structural changes, organization, foreign trade, technology, division of labor, and economic system. Non-economic factors mentioned include human resources, political/administrative factors, and social factors. The document provides details on how each of these factors contributes to and influences the rate of economic growth in a country.
Esaping from transformation trap
This document discusses the challenges of transformation societies in developing economies as they transition from labor-intensive to innovation-driven growth models. It addresses the "transformation trap," which is the inability to resolve political, social, and economic contradictions during periods of significant change. Specifically, it argues that:
1) Establishing political stability through an inclusive social compromise between established and emerging classes is essential to lay the foundation for sustainable development during transformations.
2) The development narrative must shift from identity politics and patronage to empowering all through universal access to opportunities and capabilities.
3) Bringing together a broad societal coalition around the vision of a "Good Society" with full capabilities for all can help shape transformations
Forces driving change in the global economy
Lecture slides in International Economics from a course at the University of the West of England, Bristol. Discusses recent and ongoing transformations of the world economy, including Ohmae's concept of the "Invisible Continent". Download available on the TRUE wiki for International Economics: http://economicsnetwork.ac.uk/international/lecturenotes
Globalistion
Globalization can be defined as the integration of economies through reducing barriers to trade and capital flows as well as the diffusion of knowledge. It consists of the globalization of production and markets. Key driving forces include technology, costs, quality expectations, and communications. Restraining forces are market differences, management culture, and national barriers. Underlying forces are global corporations, trade agreements, and economic growth. Economic liberalization in India in the 1990s aimed to make the economy more efficient through privatization, reducing licenses, and opening to foreign investment. The Foreign Exchange Management Act of 1999 consolidated laws around foreign exchange to facilitate trade while maintaining orderly markets.
Report Rostow development theory
The document discusses Walt Rostow's stages of economic growth model, which proposes that countries pass through 5 stages in their economic development: 1) traditional society, 2) preconditions for take-off, 3) take-off, 4) drive to maturity, and 5) age of mass consumption. It provides details on the characteristics of each stage. The model suggests countries must progress from agricultural to industrial economies. It is criticized for being too simplistic and assuming all countries will develop along the same Western capitalist path.
TCI 2014 Beyond Industrial Policy
Industrial policy is gaining renewed interest among governments. However, the global context has changed, making it difficult to replicate the success of past industrial policy approaches. Specifically, developed countries are no longer as supportive of developing country industrial policies, global manufacturing is increasingly consolidated, and manufacturing demand is declining. As a result, traditional large-scale industrial policy projects pursued by development organizations often fail to achieve results due to unrealistic timeframes and overcomplexity. To be more effective, industrial policy approaches need to shift focus to directly empowering entrepreneurs and identifying pockets of private sector growth, and development organizations need to exercise more flexibility to address changing needs.
Emerging Markets Decoded: the Four Domains of Development for Growth
The report highlights the complexity of the phenomenon of the emerging markets and analyses separately three groups of them: advanced, intermediary and early stage. Further economic growth is imperative for all three groups, as the solid basis for the social development. The report outlines four areas of development for growth: infrastructure, digital technology, sustainability and human capital. These areas represent huge business potential for both international and local players with the total volume of opportunity being close to USD 10 trillion by 2020.
Globalistion
1) The document defines globalization as the removal of barriers to free trade and capital mobility as well as the diffusion of knowledge globally.
2) It discusses India's pre-liberalization era of licensing restrictions and public sector dominance as well as the economic reforms beginning in 1991 that liberalized and privatized the economy.
3) The reforms aimed to make India's economy more efficient and globally competitive through deregulation, privatization, and opening the
GLOBALIZATION (GLOBALIZATIONAND ITS IMPACT)
GLOBALIZATION, GLOBALIZATION AND ITS IMPACT, DEFINITION OF GLOBALIZATION, GLOBALIZATION IN ECONOMY, HISTORY OF GLOBALIZATION, TYPES OF GLOBALIZATION, IMPACT OF GLOBALIZATION.
UNCTAD World investment report 2018
This document is the 2018 World Investment Report published by UNCTAD. It provides an overview of global investment trends in 2017 and prospects for 2018. Some key findings include:
- Global FDI flows declined 23% in 2017 to $1.43 trillion, with declines in both developed and developing economies. Only modest growth is expected in 2018.
- Over 100 countries have introduced new industrial development strategies in recent years to respond to opportunities and challenges from the new industrial revolution.
- International production continues to spread globally as transnational corporations increase foreign assets and cross-border activities. However, trade tensions raise concerns over the future of global value chains.
The report examines regional investment trends and recent policy developments related
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- 1. ROSTOW MODERNIZATION MODEL Presented to, Prof. Ravi B. Srivastava Presented by, Aastha Pallav Aditya Jain AlpeshBalar Bhaumik Joshi
- 2. FLOW OF PRESENTATION INTRODUCTION STAGES OF MODEL CRITICISM
- 4. STAGES OF MODEL STAGE I- TRADITIONAL SOCIETY Subsistence, barter, agriculture STAGE II -TRANSITIONAL SOCIETY Specialization, surpluses, infrastructure STAGE III- TAKE OFF Industrialization, growing investment, regional growth, political change STAGE IV- DRIVE TO MATURITY Diversification, innovation, less reliance on imports, investment STAGE V- HIGH MASS CONSUMPTION Consumer oriented, durable goods flourish, service sector becomes dominant
- 8. Establishes banks and currency
- 10. Concept of manufacturing emerges, with only a few factories developing at first.
- 12. New leading sectors emerge
- 13. Economy demonstrates technological and entrepreneurial skills to produce anything it chooses to,
- 15. Surge occurs in per capita income and increased allocation to social welfare programs.