Chapter 3

Question 1

Four theories of economic development

Answer 1

1) Linear-stages theories
2) Structural change theories
3) International-Dependence Revolution
4) Neoclassical Counterrevolution

Question 2

Linear Stages Theory

Answer 2

=> Rostow’s Stages of Growth: describes stages a “backward” economy mist go through to reach “development”; criticized b/c merely descriptive, doesn’t provide solutions
=> Harrod-Domar Model: numerical representation of this

Question 3

Structural Change Model

Answer 3

Lewis Model => structure of an economy needs to shift from mainly agricultural to a mix of an agricultural sector and a profitable manufacturing sector

Question 4

International Dependence Revolution

Answer 4

pretty much Dependency Theory

=> underdevelopment is externally-induced

Question 5

Neoclassical Counterrevolution

Answer 5

pretty much Neoliberalism

=>privatize all inefficient government enterprises, market will become more competitive (and thus more competent)

=> Solow Model

Question 6

Rostow’s Stages of Growth

Answer 6

1) Traditional Society
2) Pre-conditions to take-off
3) Take-off
4) Drive to maturity
5) Age of Mass Consumption

Question 7

Harrod-Domar Model

Answer 7

models that the rate economic growth is determined by the: capital-output ratio (c) and the net savings ratio (s).

=> numerical showing of Rostow’s main principal: MOBILIZATION OF SAVINGS in order to GENERATE INVESTMENT

Question 8

Lewis Model

Answer 8

=> argues that the distribution of income should be shifted to the sectors of the population who are inherent savers => the manufacturing sector, bc it’s more profitable and can afford to save more

=> shift from traditional agricultural economy to a mixed agricultural and manufacturing

Question 9

Theories of International-Dependence Revolution

Answer 9

1) Neocolonial Dependence
2) False Paradigm
3) Dualistic Development