Danica Ong 11124946 CONADEV C32 A. Critique the 4 developmental theories 1.

) Linear Stages of Growth Theory According to Professor Walt Witchman Rostow, development can be achieved through a number of stages.: Traditional Society, Preconditions for Take-Off, Take-Off, Drive To Maturity and Age of High Mass Consumption. Rostows model is an influential model of growth and has been used to as a guide to making policies for development by many countries. Rostows Stages of Growth is said to be Eurocentric, being structured after Western Capitalist countries, making it not applicable to countries in the Asian and African Region with Singapore as an exception. Singapore, when it was granted independence in 1965, was not seen to have much potential for growth, having scarce resources. However, not long after did it develop its manufacturing industries to be competitive paving its way to industrialization. One criticism of this model is that, as it was modeled after capitalist countries in the west, it would not be very applicable to most countries outside the region because certain events essential to this model have not happened in any region. Rostows model assumes that all countries start from the same line, with equal resources. He did not put into context the differences in location and the size of the country. Also, it is not essential for a country to pass through all the stages as Rostow has emphasized because some countries did not have to go through the first stages like the United States. The third criticism is that there are countries whose agriculture sector is still developing in the Take-Off Stage, another contrary to the Rostows model that the agricultural stage should be developed before the Take-Off stage. Despite having several criticisms, it cannot be denied that Rostows model is used greatly in the context of development. The Harrod-Domar Growth Model was developed by Sir Roy F. Harrod and Evsy Domar. The model also postulates that cannot have a full scale employment and steady growth rates naturally. It explains that for an economy to grow, it must create policies to increase its savings rate. It states that the savings of the general society should be used to finance investments. In the case of Less Economically Developed Countries, economic growth is slower because they have relatively higher labor force not proportionate to their physical capital. Growth depends on the quantity of the labor sector and the capital but Harrod and Domar believe there is no way for an economy to have full employment and steady growth naturally. First criticism of this model is that if a poor country continues to seeks financial assistance from developed countries like what this theory suggests, the lesser developed country could have problems with repaying the debt, furthering the problem. Second criticism is that this model

sees growth and development as the same, ignoring that fact the growth is just one part of development.

2.) Structural Change Model The Lewis Theory of Development was proposed by Sir Arthur Lewis. It explains the transition of less developed countries from being an agriculturebased economy to a more urbanized economy. It assumes that the agriculture sector has a surplus of labor, which becomes unproductive because there is scarcity of land for the farmer to work on. These people in the agriculture sector become attracted to the manufacturing sector because it offers a higher wage. The second sector is the modern sector characterized by high productivity and employment of machineries instead of labor. First criticism for this model is that Modern workers may not be very inclined to hire more workers from the labor sector as they can get away with machines leaving those new migrants from the rural areas unemployed. Second criticism would have to be that Lewis ignored the fact the there should be a balanced growth between agriculture and industrialization. A portion of the surplus from the modern sector should be used to develop the agriculture sector. 3.) International Dependency Theory This theory was postulated by Hollis Chenery. It explains that developed countries get their resources like cheap labor and raw materials from less developed countries. Poor countries provide the petty needs of the rich countries, locking them into a disadvantageous economic position. These wealthy countries then invest capital on bettering all the drivers of development like education, healthcare system, politics, economics, etc. There are instances when less developed countries try to resist the influence of wealthy nations, which are then countered by the latter through the use of military force. This model implies that the developing countries supply the needs of the developed countries at their own expense. 4.) Neo-classical Revolution Theory This theory suggests privatization of government-owned companies. According to the authors of this model, underdevelopment is caused by misallocation of poor handling of resources brought about by incorrect policies and too much government intervention. This theory suggests that abolishing government policies and allow free market would result to a competitive industry, with the help of foreign investors. One criticism of this theory is that it views men as rational beings not taking into consideration the different human behaviors that each may possess. Because of this, the theory actually reclines toward a utopic society, which is not likely to happen.

B. Discuss / Determine the pattern of Philippine Development using any of these theories Basing my answer on how much of the factors of each theory can be associated with the movement of the Philippines economy, I think the country is on the pattern of International Dependency Theory. It supplies raw materials and labor to developed countries like the United States, Japan, etc. The theory implies that resources are continually fed to developed countries by less developed countries at the expense of the poor nations. The theory of modernization argues that underdeveloped countries are primitive versions of developed countries suggesting that these wealthy nations were in similar situations as the poor nations at one point in time and that their rendering of resources to developed countries in just along the path to development. The theory of International Dependency counters this model stating that less developed nations are their own unique nations and take on the role of the weaker economy in the world market. The Philippines is in the situation described in this model. It provides wealthy nations like the United States, Japan, some European countries with natural resources, manpower and raw materials. The country resigns to this role in the world system wherein they play a small role in doing petty works for the wealthier nations, somehow depriving themselves of the opportunity to develop. This system can also be viewed as that of a colony wherein the colonized, in this picture is the Philippines, gives its wealth to the colonizer, without much compensation. The Philippines has not much control in this arrangement since the power countries can sanction or make policies of free trade with the loans they grant for the Philippines. For example, the United States has a program, the USAID aimed to assist the Philippines. Apparently, the United States provide help for humanitarian reasons or special historical relationship. But along this aid, the Philippines has to lift some policies to benefit the United States, like policies on trade. Importing from the US costs more than when US imports from the Philippines in terms of the price of each commodity, putting the Philippines on the bad side of the arrangement. The Philippines continues to migrate its capital to developed countries, depriving it of its own wealth, increasing the capital of the rich countries, which causes scarcity of wealth for the country which leads it to borrow more funds from developed country. This causes further indebtedness.

SOURCES 1. http://www.wisegeek.org/what-is-dependency-theory.htm 2. http://en.wikipedia.org/wiki/Dependency_theory 3. http://www.aw-bc.com/info/todaro_smith/Chapter4.pdf 4. http://econsguide.blogspot.com/2008/11/theories-of-development-3-lewisdual_4252.html 5. http://connection.ebscohost.com/c/articles/13462695/economic-growthphilippines-theory-evidence 6. http://easyeconomicsforyou.blogspot.com/2010/07/rostows-stages-ofdevelopment.html 7.http://www.economicsonline.co.uk/Global_economics/Structural_change_theor y.html