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Models_of_Development__发展模型
Models of Development Models of Development Models of Development How do countries develop? If we can understand how development occurs, strategies can be adopted to help countries to develop Number of approaches: Rostow - Stages of Growth Rostow - Stages of Growth The work of American Walt W. Rostow Rostow is an economic historian Countries can be placed in one of five categories in terms of its stage of growth: Rostow - Stages of Growth Traditional Society Characterised by subsistence economy – output not traded or recorded existence of barter high levels of agriculture and labour intensive agriculture Rostow - Stages of Growth 2. Pre-conditions: Development of mining industries Increase in capital use in agriculture Necessity of external funding Some growth in savings and investment Rostow - Stages of Growth 3. Take off: Increasing industrialisation Further growth in savings and investment Some regional growth Number employed in agriculture declines Rostow - Stages of Growth 4. Drive to Maturity: Growth becomes self-sustaining – wealth generation enables further investment in value adding industry and development Industry more diversified Increase in levels of technology utilised Rostow - Stages of Growth 5. High mass consumption High output levels Mass consumption of consumer durables High proportion of employment in service sector Criticisms: Too simplistic Necessity of a financial infrastructure to channel any savings that are made into investment Will such investment yield growth? Not necessarily Need for other infrastructure – human resources (education), roads, rail, communications networks Efficiency of use of investment – in palaces or productive activities? Rostow argued economies would learn from one another and reduce the time taken to develop – has this happened? Market Based Market Based Development is determined by the extent to which the market is able to allocate resources The price signal acts to allocate scarce resources Governments limit i
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