Part 1-III Section Outline

Competing Theories of Economic Development

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1. What is Development Economics?
   
   1. Development Economics is an Extension of Both Political and Traditional Economics.
2. The Structuralist School: State-Led Development Was Key
   1. Economic Development May Only Be Achieved Through an Internal Expansion of the Local Economy.
   2. Economic Development Meant Improving the Technological Levels of Lagging Sectors of the Economy.
   3. The Structure of Underdeveloped Economies Could be Explained by the Process Through Which Developing Economies Have Historically Been Incorporated Into the International Economy.
   4. The Structural Transformation of the Economy Could Only Be Achieved Through Government Intervention.
   5. The Structuralist Policies Enjoyed Limited Success.
3. The Linear-Stages-of-Growth Model: The Western European View of Economic Development
   1. Walt W. Rostow's Stages-of-growth Model Viewed Economic Development as a Llinear Process.
   2. The Rostow Model was Based on Erroneous Assumptions that Failed to Take Into Account Unique Structural Causes of Low Savings and Investment in Developing Countries.
4. Neo-Marxist Approach: Advanced Capitalist Countries Exploit Developing Countries
   1. Neo-Marxist Development Theory Focused on the Relationships Between Advanced Capitalist Countries and Developing Countries.
   2. The Neo-Marxists Argued that Many Developing Countries Could Not Pass Through an Advanced Capitalist Stage Before Moving to Socialism.
   3. Neo-Marxist Theory was Provocative but Flawed and Too Formalistic.
5. The Neo-Classical Revival: Private Markets, Not Government Intervention, Are Critical for Development

[Part One Bibliography]

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