DEVELOPMENT THEORIES

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DEVELOPMENT THEORIES

ORTODOX SCHOOL (DEVELOPMENTALISTS)

THE STAGES OF GROWTH THEORY

Mass consumption

Drive to maturity

Take-off

Preconditions for take-off

Traditional Society

THE LEWIS MODEL

UNBALANCED GROWTH

antagonistic growth?

social organization in the workplace

backward and forward linkages

market disequilibriums could be used to foster economic growth

prioritize key sectors

realistic approach: not enough financial resources for a "big push"

THEORY OF BALANCED GROWTH

import substitution industrialization

dynamic fiscal policies

propensity to import

export pessimism

THEORY OF BIG PUSH

social overhead capital

virtuous cycles

simultaneous investment in multiple sectors of economy

hidden potential of less-developed nations

HETERODOX SCHOOL

DEPENDENCY THEORY

Marxist

Non-marxist

Focus on external barriers to development

INSTITUTIONALISTS

Technology

Ceremonialism

STRUCTURALISTS

ISI: import substitution industrialization

advanced center countries and less-developed periphery

Prebisch-Singer hypothesis