7.5 Theories of Development

What is the primary focus of Rostow's stages of economic growth?

• The importance of microloans in transitioning economies

• The transition of economies from traditional to fully developed stages

• The impact of colonialism on modern economies

• The role of non-governmental organizations in economic development

Answer explanation

Rostow's stages of economic growth focus on the transition of economies from traditional to fully developed stages, outlining the different phases of development.

Which sector is predominantly involved in the 'traditional society' stage according to Rostow?

• Quaternary sector

• Tertiary sector

• Secondary sector

• Primary sector

Answer explanation

The 'traditional society' stage is predominantly involved in the Primary sector according to Rostow's model of economic development.

What marks the 'takeoff' stage in Rostow's model?

• Heavy reliance on agriculture

• Rapid economic growth and industrial activity

• Full development of consumer culture

• Specialization in global trade

Answer explanation

The 'takeoff' stage in Rostow's model is marked by rapid economic growth and industrial activity, indicating a transition towards modernization and development.

What is a key criticism of Rostow's model?

• It underestimates the importance of agriculture

• It overemphasizes the role of technology

• It ignores political and social factors

• It focuses too much on tertiary sector jobs

Answer explanation

The key criticism of Rostow's model is that it ignores political and social factors, focusing solely on economic growth stages.

What does the Dependency Theory suggest?

• Economic growth is solely determined by internal factors

• Countries develop independently of each other

• Development is hindered by dependence on developed countries

• All countries follow the same path of development

Answer explanation

The Dependency Theory suggests that development is hindered by dependence on developed countries.

According to Wallerstein's World System Theory, what are core countries characterized by?

• Low standard of living

• Agricultural-based economies

• Dependence on semi-periphery countries for resources

• Dominance in the global economy

Answer explanation

Core countries are characterized by dominance in the global economy according to Wallerstein's World System Theory.

What role do semi-periphery countries play in the global economy?

• They have no significant role in global trade

• They act as a buffer between core and periphery countries

• They exploit both core and periphery countries

• They are primarily consumers of goods

Answer explanation

Semi-periphery countries act as a buffer between core and periphery countries in the global economy, helping to facilitate trade and interactions between the two.

What is a consequence of a country having a commodity dependence?

• Increased diversification of the economy

• Stable and predictable economic growth

• Greater economic independence from core countries

• Vulnerability to price changes in commodities

Answer explanation

Having commodity dependence makes a country vulnerable to price changes in commodities, impacting its economy significantly.

What is a significant impact of colonialism according to the discussed theories?

• It had no lasting impact on global economic structures

• It encouraged the development of tertiary sector jobs in colonies

• It led to the mass exploitation of resources and labor

• It promoted economic independence among colonies

Answer explanation

Colonialism led to the mass exploitation of resources and labor, as discussed in the theories.

Why might periphery countries struggle to negotiate better trade terms?

• Their economies are too diversified

• They prefer to maintain current economic conditions

• Core countries can easily find alternative trading partners

• They have a strong bargaining position

Answer explanation

Periphery countries may struggle to negotiate better trade terms because core countries can easily find alternative trading partners, reducing the periphery countries' bargaining power.