KQ2: Why do levels of economic development vary and how can they lead to inequalities?

Question 1

What are some social factors influencing economic development?

Answer 1

• population growth - more demand on resource but also more workers
• education

Question 2

What are some political factors influencing economic development?

Answer 2

• war - stops/reduces trade

- politically unstable

Question 3

What are some physical factors influencing economic development?

Answer 3

• landlocked?
• relief
• soil fertility
• access to natural resources
• climate

Question 4

What are some historical factors influencing economic development?

Answer 4

• natural disasters in the past
• civil war
• part of colonies - trade
• tourism to historical sites

Question 5

What are some economic factors influencing economic development?

Answer 5

• FDI, global trade, infrastructure

- economic cycles

Question 6

State the 5 stages of Rostow’s model

Answer 6

Stage 1 - traditional society
2 - pre-conditions for take off
3 - take off into sustained growth
4 - the drive to maturity
5 - age of high mass consumption

Question 7

What is Rostow’s model?

Answer 7

A model of economic development

Question 8

Explain stage 1 of Rostow’s model?

Answer 8

• based on custon and tradition, simple technologies and a subsistence economy

Question 9

Explain stage 2 of Rostow’s model

Answer 9

• increased rate of investment and early development of necessary infrastructure
• new elite of entrepeneurs, merchants and capitalists
• effective centralised state

Question 10

Explain stage 3 of Rostow’s model

Answer 10

• 10 -30 years dominated by rapid economic growth

- investment is concentrated in leading sectors of the economy - especially in manufacturing

Question 11

Explain stage 4 of Rostow’s model

Answer 11

• the drive to maturity

- sustained economic growth andn diversification into higher-value-added manufacturing industried and service activities

Question 12

Explain stage 5 of Rostow’s model

Answer 12

increasing importance of consumer goods and services

- rise of the welfare state

Question 13

What are the strengths of Rostow’s model?

Answer 13

• suggestion of what might happen in future of a country

Question 14

what are some limitations of Rostow’s model?

Answer 14

• assumes development is controlled by market forces
• doesn’t take into account social, economic, physical, political or historical
• doesn’t take into account of extreme events
• assumes further development rather than fluctuating development/staying at one point
• doesn’t tell us about quality of life