9.2.7

Theories of Development

Test yourself

Development - World Systems Theory

World System’s theory argues that the core and periphery model helps to explain the development gap. This theory was developed by Wallerstein in 1974.

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Core areas

  • Wallerstein’s theory explains that the world’s core areas drive the world economy. They import raw materials (often from developing countries) and process them into goods.
  • Through this process, they add value to the product and make profits.
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Periphery areas

  • The raw materials come from the peripheral regions (or the developing countries) and so these countries are losing out.
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Unequal trading patterns

  • There are unequal trading patterns that exist between the core and periphery regions.
  • These unequal trading patterns began during the colonial era and remain today.
  • Currently, the Western core owns and consumes 75% of the global goods and services.

Development - Dependency Theory

Like Wallerstein's theory, dependency theory argues that developing countries are kept poor because of their dependency on wealthier nations.

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Periphery

  • It is because the terms of trade are unfavourable and the peripheral regions aren’t able to make maximum profit.
  • Periphery regions are stuck exporting raw materials and don't benefit from having secondary or tertiary 'value-added' activities.
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Vicious cycle

  • Dependency theory describes a vicious cycle or a 'positive feedback loop'.
  • Developing countries can’t add value to the products by processing them into goods because they don’t have the infrastructure, expertise or capacity to do this.
  • These countries are trapped in a vicious cycle of poverty.

Development - Modernisation Theory

The USA promoted modernisation theory after World War Two.

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Solving poverty

  • Following World War Two, the major threat to the US was the spread of communism. They believed that poverty was the cause of a growth in communism and so they promoted modernisation theory.
  • The idea of this theory is that if you reform institutions and organisations then capitalism will work to provide a solution to poverty.
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Bretton Woods Institutions

  • The Bretton Woods institutions (like the IMF and World Bank) were set up after World War Two to help achieve this reform and they focused on currency stability and development loans.

Jump to other topics

1Tectonic Processes & Hazards

2Option 2A: Glaciated Landscapes & Change

3Option 2B: Coastal Landscapes & Change

4Globalisation

5Option 4A: Regenerating Places

6Option 4B: Diverse Places

7The Water Cycle & Water Insecurity (A2 only)

8The Carbon Cycle & Energy Security (A2 only)

9Superpowers (A2 only)

10Option 8A: Health & Human Rights (A2 only)

11Option 8B: Migration & Identity (A2 only)

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