Theories of development
There are different theories as to the causes of poverty and the path of development.
The first theory (Rostow) sees a path to progress that countries simply have to follow.
The model is outdated (produced in 1960) and oversimplified.
The model assumes that all countries start at the same level and with the same resources, population, climate etc.
While capital is needed to advance beyond the ‘traditional society’ often this only arrives in the form of development aid. Debt repayments can delay/prevent a country reaching take off.
The model underestimates the level to which the past development of developed countries was at the expense of developing ones.
The second theory (Frank) believes that countries are poor because of their past relationships with other countries.
Frank’s model was developed in opposition to Rostow’s model. Frank believed development was about the core and the periphery.
The core is the developed nations and the periphery the ‘other areas’ which produce raw materials. The periphery depends on the core for its market.
The periphery sells low-value raw materials to the core. The core processes them into high-value goods and becomes wealthy.