AMSCO AP Human Geography - 7.5: Theories of Development

Stages of Economic Growth Model

A theory proposed by Walt Rostow that suggests economic development occurs in five sequential stages: traditional society, preconditions for take-off, take-off, drive to maturity, and age of high mass consumption.

Assumptions of the Stages of Economic Growth Model:

All countries want to modernize, and that economic progression is linear, not exponential.

Traditional Society

The first stage of the SEGM model and its characteristics are that it depends on the primary sector for subsistence, like fishing, farming and hunting. Also, they use limited tech and carry out local or regional bartering. They also enjoy limited socioeconomic mobility.

Preconditions for Take-Off

The second stage of the SEGM model where a society begins to develop manufacturing industries, infrastructure improves, farming techniques improve, international trade occurs, tech is diffused at a wider scale, and socioeconomic mobility starts.

Take-Off

The third stage of the SEGM model characterized by developing tech innovations, shrinking of the primary sector, occurrence of urbanization, initiation of self sustaining growth, and the starting of industrialization.

Drive to Maturity

The fourth stage of the SEGM model where a society's industries expand and diversify, technological advancements become widespread, and there is a significant shift towards a more complex economy with improved infrastructure and higher levels of education and socioeconomic mobility.

High Mass Consumption

The final stage of the SEGM model, characterized by a shift towards consumer goods, high levels of income, widespread consumption, and a focus on services rather than manufacturing.

World Systems Theory

A dependency model that was made by Wallerstein describes the world as a social system dominated by a core of wealthy nations that exploit peripheral countries for resources and labor, leading to economic and social inequalities.

Dependency model

A theory that suggests that all countries are dependent on each other anf that they do not live in isolation. It argues that neocolonialism and colonialism are the cause of global inequities between core and periphery countries.

Core countries

The wealthy, developed nations that dominate the world economy, controlling trade, resources, and technology. They exploit peripheral countries for cheap labor and raw materials.

Examples of Core countries

The United States, Canada, Japan, Germany, and Australia, which have advanced economies and influence global politics and culture.

Semi-periphery countries

Countries that are in between core and peripheral nations, experiencing both exploitation and some degree of economic development. They often provide a buffer in the global economic system, helping to stabilize the global economy.

Examples of semi-periphery countries

Countries like Brazil, India, South Africa, and Mexico that are moderately developed with both industrial and agricultural sectors, often playing significant roles in regional politics.

Periphery countries

Countries that are less developed, often reliant on the export of raw materials and characterized by weak economies. They typically experience significant levels of foreign investment and often lack political influence.

Examples of periphery countries

Countries such as Haiti, Somalia, and Afghanistan that show low levels of industrialization and high rates of poverty, often dependent on foreign aid and characterized by political instability.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, such as oil, gold, and agricultural products, and that have not undergone processing.

Commodity Dependence

A situation where a country's economy relies heavily on the export of a limited range of primary goods, making it vulnerable to market fluctuations and external economic pressures.

Non-Governmental Organizations (NGO)

Non-profit groups that operate independently of government influence, focusing on various humanitarian, environmental, and development issues.