Rostows Stages of Development 1 High Mass Consumption

Rostow’s Stages of Development 1

High Mass Consumption • Industry expands. • Luxury items become necessities. • High Incomes, a majority of workers involved in the service sector. Drive to Technological Maturity • Economic growth is widely accepted. • The economy diversifies. • Poverty is greatly reduced and material goods much more common. • Cities grow, and modernization is evident in the core. • International trade expands. Take-Off Stage • People begin to experiment with producing goods for trade with others for profit. • A state industrial revolution takes place. • Urbanization, technology, and production increases. Traditional Stage • Life is built around families. • Very Limited Wealth. • Subsistence Farmers. 2

Rich nations often block the path of poor. A justification for capitalism to exploit noncapitalism. Criticisms Suggesting that poverty is the fault of the victims is wrong. Poorer nations have to develop from a position of weakness. 3

What is Dependency Theory 4

Dependency Theory says that the economic development of many countries is blocked by industrialized nations that exploit them. 5

A Few Key Points. • Dependency theory blames MCDs that control or who once controlled LDCs through colonialism. • Argues that political liberation from colonialism has not translated into economic health. • Dependency theory is largely an outgrowth of Marxism. 6

Wallerstein’s Capitalist World Economy Model 7

Core Countries • Rich nations that fuel the world’s economy. • Take raw materials from around the world and channel them to North America, Europe, Australia, and Japan. Periphery Countries • Low-Income countries brought about through colonialism. • Support rich countries by providing inexpensive labor and a large market for industrial products. Semiperiphery Countries • The rest of the world. • More powerful than periphery, but still dominated in some way by the core. 8

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Treats wealth as a “ 0 Sum Theory” Ignore cultural issues that affect poverty. Criticisms No country willingly blocks another from success. Places blame on countries that have helped others. 10

Part Two: Growth and Diffusion of Industrialization 11

A) Before the Industrial Revolution 12

Before the Industrial Revolution There were industrial centers before the late 18 th Century but it was isolated. Most industries were cottage industries. Examples: Chinese Silk Factories Metal Workshops in India 13

What is a cottage industry? 14

Cottage Industries are homebased manufacturers where people manufacture tools and agriculture equipment for their own communities. 15

B) The Start of the Industrial Revolution 16

The Early 18 th Century Early factories in Great Britain during the 18 th Century were run by water running down slopes. 17

The Most Important Invention In 1769, James Watt built the first efficient steam engine. This was the most important invention to the Industrial Revolution. 18

The Industrial Revolution was the process of technological change that started in the late 1700 s that transformed how goods were produced and obtained by the people. 19

Social Changes Population Changes Effects of the Industrial Revolution Economic Changes Political Changes 20

Iron Food Processing Coal Industries affected by the Industrial Revolution Transportation Chemicals Textiles 21

C) Diffusion of the Industrial Revolution 22

Great Britain Diffusion of the Industrial Revolution Belgium/France (late 1700 s) The United States (1790 s) Most of Europe came late to the party because of revolution and strife (ie. French Revolution, Napoleonic Wars) Italy, Netherlands, Russia, Sweden (late 1800 s) The United States entered the IR later than Belgium and France but expanded more rapidly. The Middle East and Africa entered the IR because of WWI and the need for oil. Asia, Middle East and Africa (Mid 20 th Century) 23