Economic Development Theories Overview

This model suggests that countries develop in a series of pre-determined stages, moving from traditional agriculture to a modern industrial economy.

This model emphasizes the transition from traditional agriculture dominated societies to modern industrial economies. It highlights structural changes in production, employment, and consumption patterns.

This school of thought focuses on the external constraints hindering economic growth in developing countries. It highlights the role of colonialism, dependence on foreign aid, and unequal global trade.

This approach advocates for market-driven solutions and minimal government intervention in economic development. It promotes free trade, privatization, and deregulation.

This is the first stage of development, characterized by a predominantly agricultural economy, limited technology, and low productivity.

This stage involves significant changes like the introduction of new technologies, infrastructure development, and the rise of new industries. These improvements set the stage for sustained growth.

This stage marks a period of rapid growth driven by a few key industries, often characterized by technological advancements and increased investment.

This is the stage where economic diversification occurs, expanding beyond the initial industries. Modern technologies and increased productivity contribute to a well-developed economy.

A theory that explains the process of labor migration from the traditional agriculture sector with lower productivity to the more productive modern industrial sector. This transition drives economic growth.

A model that uses empirical data to examine the systematic structural changes that economies undergo during development. It identifies typical patterns across countries.

A theory within the International-Dependence Revolution that emphasizes the role of historical and colonial relationships in maintaining underdevelopment. It argues that external control and exploitation perpetuate inequality.

A theory within the International-Dependence Revolution that criticizes inappropriate development policies imposed by Western models. It argues that solutions should be tailored to local contexts and needs.

A theory acknowledging persistent inequalities within and between nations, suggesting that a dualistic structure exists where developed and underdeveloped sectors coexist.

The process of transitioning from agriculture to industrial production, urbanization, and the development of infrastructure and capital. It is a key element of structural change models.

A situation where a country prematurely deindustrializes due to factors like globalization or technological changes, before reaching a high level of development. It can hinder economic growth.

A model of economic development that gives prominence to the role of capital accumulation in driving growth. It suggests that more investment leads to higher productivity and economic expansion.

The process of transitioning from agriculture to industry and services, characterized by changes in labor force composition, technology, and economic structure. It is a key aspect of economic development.

The difference in wages between the modern industrial sector and the traditional agricultural sector. It plays a crucial role in labor migration in the Lewis model.

The ability of a country to generate and utilize surplus resources for investment and economic growth. It is a key factor in the process of development.

The process of increasing production efficiency and output per worker, driven by factors like technological advancements, capital investment, and skill development. It is crucial for economic growth.

The Harrod-Domar model suggests that a higher investment rate leads to a higher economic growth rate. China's higher investment rate explains its faster economic growth compared to India.

The dependency model suggests that developing countries can be trapped by their dependence on developed nations, hindering their economic progress. This is because the global system is structured to maintain their dependence. Neoclassical theory suggests that Argentina might have failed to industrialize due to internal factors.

The primary determinants of agricultural labor productivity include technological advancements, improved institutions, better market incentives, and increased demand for agricultural products due to urban development.

Risk and uncertainty influence the decisions of peasant farmers. They may adopt less risky strategies to minimize potential losses.

Asia's agrarian system features a mix of family farms and large-scale commercial farming. In contrast, Latin America has a greater emphasis on large farms, creating a dualism in its agricultural landscape

Sub-Saharan Africa's agrarian system often relies on traditional farming methods with limited technology and investment. This lack of modernization leads to low productivity.

The significant role of women in agriculture should be considered in development strategies. Women perform 60-90% of agricultural labor in traditional rural areas, but often lack access to resources and decision-making power.

Agriculture is a key sector in developing countries, contributing about 20% of output and employing about 45% of the workforce. The majority of poor people live in rural areas.

Development strategies should prioritize agricultural progress and rural development. This includes increasing food production, generating income, and improving the quality of life in rural areas.

Involves increasing the amount of land used for agriculture, usually transitioning from unused land to actively cultivated fields.

Utilizing the same land more efficiently by growing multiple crops in a single season or using advanced techniques.

A period of significant agricultural transformation, mainly in the 1970s, focused on increasing yields per harvest using new technologies.

The gap between the actual yield of a crop and the maximum achievable yield under ideal conditions.

The concept that farmers make decisions based on their own perceived needs and realities, even if they don't align with 'optimal' technological methods.

The process of redistributing land ownership, often aiming to reduce inequality and create fairer access to resources.

The transfer of resources from agriculture to industry, aiming to fuel industrial growth and promote modernization.

The tendency for people to migrate from rural areas to cities, often due to economic opportunities or limited agricultural prospects.

The economic shift away from agriculture and towards industrial and service sectors, a natural progression in development.

Government policies designed to protect emerging industries from competition and encourage their growth, typically using import restrictions or subsidies.

Policies that aim to reduce dependence on imports by encouraging the production of goods within the country.

Models that focus on external factors preventing developing nations from achieving self-sustained growth, emphasizing unequal power dynamics between developed and developing economies.

A key assumption of the Lewis model where it is assumed that there is a large pool of unemployed or underemployed labor in the agricultural sector that can easily be transferred to the industrial sector without significantly affecting agricultural output.

A key assumption where wages in the agricultural sector remain constant, regardless of the outflow of labor to the industrial sector.

The process of reinvesting profits from the industrial sector to increase production capacity and create more jobs – a key driver of further economic growth.

The ability of farmers to produce more output with the same or fewer inputs, often driven by improvements in technology, human capital, and agricultural practices.

The uncertainties and risks farmers face when making decisions about planting, harvesting, and marketing their crops.

Factors that contribute to low agricultural productivity in Sub-Saharan Africa, including limited access to technology, poor infrastructure, inadequate irrigation systems, and inadequate agricultural extension services.

Refers to the strategy where developing countries prioritize the development of local industries, reduce reliance on foreign companies, and promote land reforms for greater economic control.

The South Korean economic success story challenges the strict prescriptions of neoliberalism. Strong government involvement through planning, financial incentives, targeted exports, and coordination of technological advancements played a crucial role in its growth.

Argentina exhibited some characteristics of developing countries, such as increased agricultural output, urbanization, and decreasing birth rates. However, these changes did not translate into improved living standards, highlighting the limitations of solely relying on structural indicators.

This theory focuses on the disadvantages that developing countries face due to their dependence on exporting primary goods, fluctuating commodity prices, and the influence of multinational corporations.

In Argentina, government failures, including inefficient state-run businesses, excessive intervention, and corruption, hindered economic growth. The initial success of neoliberal reforms in the 1990s was undermined by external challenges and flawed financial management.

These programs are crucial for enhancing agricultural productivity, fostering innovation, and raising farmer incomes. However, their effectiveness is hindered by a historic focus on men, overlooking women's significant contributions to agriculture.

Women's participation in agriculture is often underestimated, but they contribute significantly to food production, cash crops, and livestock management. Despite this, they face challenges due to cultural norms, gender disparities in training opportunities, and a bias towards men as 'farmers.'

Limited access to education hinders women's ability to participate in training and technology tailored to their needs. Their lack of specialized knowledge can hamper efficient farm operations.

Innovations often prioritize the needs of men in farming, leaving women without tools and technologies that effectively address their tasks. This disparity can lead to reduced productivity and efficiency.

Women often manage smaller plots with lower fertility, limiting their potential yields. Access to credit is essential for purchasing inputs and investing in improvements, but women face limited opportunities in this domain.

Women shoulder a heavy burden of domestic chores in addition to their agricultural duties. This excessive workload limits their time and energy for agricultural tasks, impacting their potential productivity.

Launched in 1983, this system aimed to improve agricultural practices by delivering targeted information to farmers. While it showed some positive results, resource limitations restricted its reach. The program's focus shifted towards cash crops during structural adjustments, benefiting men more than women.

Despite some progress in incorporating women into programs like the National Agricultural and Livestock Programme, biases persist in selecting key farmers and accessing credit. This highlights the need for further efforts to address gender inequities.

These organizations and initiatives have been instrumental in empowering women through various avenues like environmental conservation, sustainable agriculture, and tree planting. They've focused on women's development and offered alternative solutions to government programs.