In the 1960s W. W. Rostow's modernisation theory was used to explain the dominance of the British Empire and the USA
These were the first nations to experience the Industrial Revolution and this gave them an initial advantage over as yet unindustrialised countries and regions
Rostow believed the economies of developed countries moved through five stages of economic development and that all countries would follow the same development pathway
Rostow was a strong believer in free trade and in a Western model of democracy and capitalism
Socialist and communist countries, such as the USSR, Cuba and at that time China, could not expect to develop unless they adopted this model
Rostow's model was influential and led to many developing countries attempting to create the preconditions for take-off by investing in key infrastructure and industries
Some of these countries, such as the Asian Tigers, succeeded, while others failed and found
themselves burdened by debt
Dependency Theory
Dependency theory, based on the work of A.G. Frank, views the world as having an economically developed core and an underdeveloped periphery
According to the theory, the capitalist core deliberately keeps the periphery in a state of underdevelopment by exploiting its cheap resources, taking its most skilled workers and selling it manufactured goods
The developing world actually helps the developed world to become wealthier
Frank called this the development of the underdevelopment
Dependency theory argues that the developing world is placed in a position of selling its resources to the developed world for very little, while buying from it costly manufactured goods, technology and credit
As the periphery remains underdeveloped, its
most skilled people move to the developed
world, further draining it of any chance to
develop
Using this model, aid to the developing
world could be seen as a way of preventing
the periphery becoming too restless
The rise of the NICS, such as the Asian Tigers,
seems to argue against dependency theory, as they
are examples of countries that have developed
However, Taiwan, South Korea, Singapore and Japan all received huge economic support and aid from the
USA, as it was felt that strong capitalist economies in Asia were a way of containing Communist China
World Systems Theory
Wallerstein's world systems theory attempts to overcome the problem of a two-tier
core and periphery world
More of an analysis of geographical patterns than a theory, Wallerstein's view is of a three-tier world
This is a more dynamic model, as it allows for change to take place, with some countries entering the semi-periohery and even emerging to be part of the core
Frank's dependency theory, based on Marxist ideas of 'the rich versus the poor', is much more static
There are two conflicting
explanations of the recent
rise of China and India
Wallerstein takes the view that industrial capitalism was born in Europe and that the rise of
China and India simply represents another stage in the growth and spread of the global economy
In contrast, the US economist Frank sees the current situation as simply a shift back to a much older world order, when India and China were powerful economic forces
This global system was
replaced for some 500 years
by European hegemony
Frank views Britain and other
European powers as the first NICs
China and India compared
China
1.3 billion population
Early centre of civilisation
Dominant global power for 2,000 years
Decline in the nineteenth century, hastened by Japanese invasion and European interference
Manufacturing impressed European visitors with its complexity and sophistication
In 1985, 33% of global manufacturing production was Chinese
Communist revolution, 1949
State-led industrialisation and intensification of agriculture
Largely cut off from rest of world, 1949-80
Increasing economic reform and liberalisation since 1980, leading to an explosion of foreign investment, manufacturing and trade
Uneasy, sometimes hostile relationships with the former USSR, Russia and the USA
Relations with the USA thawed in the early 1970s as the USA sought to prevent a communist alliance between China and the USSR
In recent
years, China
has sought
economic and
political
stability in Asia
India
1.2 billion population
Early centre of civilisation
Fell under the influence of European colonial powers in the eighteenth century
Direct colonial rule by Britain in the nineteenth century
During the nineteenth century, India was responsible for 15% of global manufacturing
Active struggle for
independence begins in the
early twentieth century
Independence
from Britain,
1947
Policy of economic and political independence and home-grown technology
High import tariffs,
gradually lowered
after 1990
Still a predominantly rural society, it has
built a very powerful and increasingly global
economy
Following independence India was 'neutral' steering a pathway
between the USA and USSR
Neither of the superpowers was happy with this policy
India has worked hard to establish good relationships with other 'neutral'
countries to enhance its role internationally