Theories Explaining the Growth of Superpowers

Aims: To know the different theories put forward To describe the shift in power since the second world war To explain why there are shifts in power.

Theories

Liberal

Take-off model Rostow, 1960 Asian model World Bank, 1991 Dependency theory Frank, 1967 World systems theory Wallerstein, 1974
Marxist

Take-off Model Modernisation Theory

Modernisation Theory

It was so influential that How could this developing countries wanting to create the preconditions for theory influenced take off by investing and world powers in key infrastructure and industries. development? The Asian Tigers are examples of where this succeeded. How were they able to implement the preconditions for take off?

 Many countries borrowed heavily + invested money into projects to meet preconditions Failed to develop so in debt

Take-off Model - Criticism

Asian Model
World Bank, 1993 Countries like China, S.Korea and Taiwan had developed rapidly since 1970 As they opened up to free trade and foreign investment State invested in education and skills development

Asian Model - Criticisms

Model fails to take full account of support and aid provided by the USA Many NICs had protectionist, not free-trade policies

Manufactured goods costly return for primary goods Aid

Raw materials v little paid for resources
Political support Debt repayment and purchase payments Brain drain

Polluting industry
Political and economic ideas

What does this image illustrate? Why does this situation help to keep the rich, rich and the poor, poor? What are the flows to the developed world? What flows to the developing world?

Remember this?

Dependency Theory An outcome of colonialism

Relationship
Investments Periphery Wealth

Dependent area
Core

Periphery

Cash Crops Coffee Tobacco

Core

Development

Dependency Theory
A. G Frank based on Marxist view rich vs poor. Reliant on capitalist core and underdeveloped periphery. Capitalist core keeps the periphery in a state of underdevelopment by exploiting its cheap resources, taking its most skilled workers and selling it its manufactured goods. The developing world helps to keep the developed world to become wealthier. development of underdevelopment Aid is then needed to prevent the periphery from becoming restless.

North-South Divide

Brandt Line

Who are the exception?

Which countries have adopted Rostows model and broken the dependency theory? The Asian Tigers Why? USA funding! Both economic support and aid. Why did they do this? think back to how superpowers can exert and extend their influence. Strong capitalist economies in Asia would contain Communist China.

Dependency Theory - Criticism

NICs have broken out of North-South divide mould since 1960s. Theory does not allow for developing countries to have say in their own development.

World Systems Theory

Wallerstein To counter the periphery/core theory. Analysis of geographical patterns. Three tier world. Dynamic allowing for change to take place. Countries can move between peripheral, semi-periphery and core.

World Systems Theory

Semi-periphery nations are broadly equivalent to NICs that developed in 1970s. Wallerstein recognised that some countries could develop and gain power, showing that wealth and power were fluid, not static.

World Systems Theory

World Systems Theory Criticism

More a description of the world than an explanation of it. Does not account for the rise of China and was written during the Cold War (bi-polar era)

India and China

Why have their economies recently risen? 2 conflicting arguments:
Wallerstein argues Europe initiated industrial capitalism. The rise of I and C another stage in the growth and spread of the global economy. A. G Frank argues its a shift back to an older world order where I and C were powerful economic forces. The global system was replaced for 500yrs by European hegemony. European powers are the first NICs.

Why should the global centre of economic gravity shift from east to west and back again?

Review Question
With reference to different theories explain why there are shifts in the global centre of economic gravity.