Textbook: Development and Trade | AP Human Geography - Grade 9 PDF Download

 Page 1


478 CHAPTER 19: DEVELOPMENT AND TRADE
Development and Trade
Topics 7.5–7.6
Topic 7.5 Theories of Development
Learning Objective: Explain different theories of economic and social develop -
ment. (SPS-7.E)
Topic 7.6 Trade and the World Economy
Learning Objective: Explain causes and geographic consequences of recent 
economic changes such as the increase in international trade, deindustrializa-
tion, and growing interdependence in the world economy. (PSO-7.A)
Globalization, the increasing integration and interdependence 
of domestic and overseas markets, has three sides: the good side, 
the bad side, and the ugly side.
—Panos Mourdoukoutas, “The Good, the Bad, and the Ugly Side of 
Globalization,” Forbes, 2011
Source: Wikimedia Commons
The Three Gorges dam is an infrastructure project designed to generate hydroelectric energy for 
China. (See Topic 7.6 for factors that influence interdependence and the world economy.)
CHAPTER 19
Page 2


478 CHAPTER 19: DEVELOPMENT AND TRADE
Development and Trade
Topics 7.5–7.6
Topic 7.5 Theories of Development
Learning Objective: Explain different theories of economic and social develop -
ment. (SPS-7.E)
Topic 7.6 Trade and the World Economy
Learning Objective: Explain causes and geographic consequences of recent 
economic changes such as the increase in international trade, deindustrializa-
tion, and growing interdependence in the world economy. (PSO-7.A)
Globalization, the increasing integration and interdependence 
of domestic and overseas markets, has three sides: the good side, 
the bad side, and the ugly side.
—Panos Mourdoukoutas, “The Good, the Bad, and the Ugly Side of 
Globalization,” Forbes, 2011
Source: Wikimedia Commons
The Three Gorges dam is an infrastructure project designed to generate hydroelectric energy for 
China. (See Topic 7.6 for factors that influence interdependence and the world economy.)
CHAPTER 19
7.5: THEORIES OF DEVELOPMENT 479
7.5
Theories of Development
Essential Question: What are the theories of economic and social 
development?
Why have some countries of the world become so much wealthier than 
others? Geographers and others have proposed several theories of development 
to answer this question. Underlying it is a more general issue about equality. 
Can all countries grow equally prosperous, or will the world always include a 
mix of more- and less-wealthy countries? 
Theories of Development
Topic 7.3 described various social and economic measures of development and 
systems for grouping countries based on these measures. While the measures 
and systems vary, most show that Australia, New Zealand, Japan, South Korea, 
and most countries of North America and Europe are more developed than 
most of Africa, parts of Asia, and South America. Two of the best-known 
theories explaining these differences were developed by Walt Rostow and 
Immanuel Wallerstein. 
Rostow’s Stages of Economic Growth
In 1960, American economist W alt W . Rostow developed a modernization theory 
that focuses on the shift from traditional to modern forms of society. He called 
it the Stages of Economic Growth model. Rostow assumed that all countries 
wanted to modernize, and that all would, though at different speeds. He saw 
economic development as a linear progression in which countries moved from 
one stage to the next until they reached the fifth and final stage—high mass 
consumption.
Like the Demographic Transition Model (DTM), the Stages of Economic 
Growth theory is a generalization based upon how the United States and 
western Europe evolved, and both identify distinct stages. However, they differ 
fundamentally. The DTM is a population model that focuses on changes in the 
number of people in a country . Rostow's theory is an economic model that  focuses 
on how people live. 
Rostow suggested that different inputs and levels of investment were 
required to allow countries to move from one stage to the next. The theory 
suggests a system for development—do this, then this, and eventually the 
economy of a country will become developed. The key characteristics associated 
with each stage are listed in the chart on the following page.
Page 3


478 CHAPTER 19: DEVELOPMENT AND TRADE
Development and Trade
Topics 7.5–7.6
Topic 7.5 Theories of Development
Learning Objective: Explain different theories of economic and social develop -
ment. (SPS-7.E)
Topic 7.6 Trade and the World Economy
Learning Objective: Explain causes and geographic consequences of recent 
economic changes such as the increase in international trade, deindustrializa-
tion, and growing interdependence in the world economy. (PSO-7.A)
Globalization, the increasing integration and interdependence 
of domestic and overseas markets, has three sides: the good side, 
the bad side, and the ugly side.
—Panos Mourdoukoutas, “The Good, the Bad, and the Ugly Side of 
Globalization,” Forbes, 2011
Source: Wikimedia Commons
The Three Gorges dam is an infrastructure project designed to generate hydroelectric energy for 
China. (See Topic 7.6 for factors that influence interdependence and the world economy.)
CHAPTER 19
7.5: THEORIES OF DEVELOPMENT 479
7.5
Theories of Development
Essential Question: What are the theories of economic and social 
development?
Why have some countries of the world become so much wealthier than 
others? Geographers and others have proposed several theories of development 
to answer this question. Underlying it is a more general issue about equality. 
Can all countries grow equally prosperous, or will the world always include a 
mix of more- and less-wealthy countries? 
Theories of Development
Topic 7.3 described various social and economic measures of development and 
systems for grouping countries based on these measures. While the measures 
and systems vary, most show that Australia, New Zealand, Japan, South Korea, 
and most countries of North America and Europe are more developed than 
most of Africa, parts of Asia, and South America. Two of the best-known 
theories explaining these differences were developed by Walt Rostow and 
Immanuel Wallerstein. 
Rostow’s Stages of Economic Growth
In 1960, American economist W alt W . Rostow developed a modernization theory 
that focuses on the shift from traditional to modern forms of society. He called 
it the Stages of Economic Growth model. Rostow assumed that all countries 
wanted to modernize, and that all would, though at different speeds. He saw 
economic development as a linear progression in which countries moved from 
one stage to the next until they reached the fifth and final stage—high mass 
consumption.
Like the Demographic Transition Model (DTM), the Stages of Economic 
Growth theory is a generalization based upon how the United States and 
western Europe evolved, and both identify distinct stages. However, they differ 
fundamentally. The DTM is a population model that focuses on changes in the 
number of people in a country . Rostow's theory is an economic model that  focuses 
on how people live. 
Rostow suggested that different inputs and levels of investment were 
required to allow countries to move from one stage to the next. The theory 
suggests a system for development—do this, then this, and eventually the 
economy of a country will become developed. The key characteristics associated 
with each stage are listed in the chart on the following page.
480 HUMAN GEOGRAPHY: AP
®
 EDITION
ROSTOW’S STAGES OF ECONOMIC GROWTH
Stage Characteristics Examples
1. Traditional 
Society
• Depends upon primary sector 
activities (farming, fishing, hunting) for 
subsistence
• Uses limited technology
• Carries out local or regional trading
• Enjoys limited socioeconomic mobility
• English colonies in 
North America in the 
17
th
 century
• Medieval Europe
• No entire country is 
at this stage today
2. Preconditions 
for Take-Off • Improves infrastructure (roads, 
electrical grid, water systems, etc.)
• Improves farming techniques and shifts 
toward commercial agriculture
• Exports agricultural and raw materials 
(international trade)
• Diffuses technology more widely
• Starts individual socioeconomic 
mobility
• United States in the 
early 19
th
 century
• Nigeria today
• Afghanistan today
3. Take-Off • Develops major technological 
innovations
• Starts industrialization and primary 
sector begins to shrink
• Spreads entrepreneurial mentality
• Begins to urbanize
• Initiates self-sustaining growth
• United States, mid-
19
th
 century
• Japan, late 
19
th
 century
• Bangladesh today
4. Drive to 
Maturity
• Creates new industries while 
strengthening existing ones
• Improves energy, transportation, and 
communication systems
• Sees economic growth greater than 
population growth
• Invests in social infrastructure (schools, 
hospitals, etc.)
• United States, late 
19
th
 century
• Germany, early 
20
th
 century
• Brazil today
5. High Mass 
Consumption
• Spends money on nonessential goods 
(consumerism)
• Purchases of high order goods become 
common
• Desires to create a more egalitarian 
society
• Supports a strong tertiary sector
• United States, early 
1920s to present
• Japan, mid-1950s to 
present
Notice the types of changes that have to occur to allow for a country to transition from one stage to the 
next. What would be a major concern if all countries reached the stage of high mass consumption?
Page 4


478 CHAPTER 19: DEVELOPMENT AND TRADE
Development and Trade
Topics 7.5–7.6
Topic 7.5 Theories of Development
Learning Objective: Explain different theories of economic and social develop -
ment. (SPS-7.E)
Topic 7.6 Trade and the World Economy
Learning Objective: Explain causes and geographic consequences of recent 
economic changes such as the increase in international trade, deindustrializa-
tion, and growing interdependence in the world economy. (PSO-7.A)
Globalization, the increasing integration and interdependence 
of domestic and overseas markets, has three sides: the good side, 
the bad side, and the ugly side.
—Panos Mourdoukoutas, “The Good, the Bad, and the Ugly Side of 
Globalization,” Forbes, 2011
Source: Wikimedia Commons
The Three Gorges dam is an infrastructure project designed to generate hydroelectric energy for 
China. (See Topic 7.6 for factors that influence interdependence and the world economy.)
CHAPTER 19
7.5: THEORIES OF DEVELOPMENT 479
7.5
Theories of Development
Essential Question: What are the theories of economic and social 
development?
Why have some countries of the world become so much wealthier than 
others? Geographers and others have proposed several theories of development 
to answer this question. Underlying it is a more general issue about equality. 
Can all countries grow equally prosperous, or will the world always include a 
mix of more- and less-wealthy countries? 
Theories of Development
Topic 7.3 described various social and economic measures of development and 
systems for grouping countries based on these measures. While the measures 
and systems vary, most show that Australia, New Zealand, Japan, South Korea, 
and most countries of North America and Europe are more developed than 
most of Africa, parts of Asia, and South America. Two of the best-known 
theories explaining these differences were developed by Walt Rostow and 
Immanuel Wallerstein. 
Rostow’s Stages of Economic Growth
In 1960, American economist W alt W . Rostow developed a modernization theory 
that focuses on the shift from traditional to modern forms of society. He called 
it the Stages of Economic Growth model. Rostow assumed that all countries 
wanted to modernize, and that all would, though at different speeds. He saw 
economic development as a linear progression in which countries moved from 
one stage to the next until they reached the fifth and final stage—high mass 
consumption.
Like the Demographic Transition Model (DTM), the Stages of Economic 
Growth theory is a generalization based upon how the United States and 
western Europe evolved, and both identify distinct stages. However, they differ 
fundamentally. The DTM is a population model that focuses on changes in the 
number of people in a country . Rostow's theory is an economic model that  focuses 
on how people live. 
Rostow suggested that different inputs and levels of investment were 
required to allow countries to move from one stage to the next. The theory 
suggests a system for development—do this, then this, and eventually the 
economy of a country will become developed. The key characteristics associated 
with each stage are listed in the chart on the following page.
480 HUMAN GEOGRAPHY: AP
®
 EDITION
ROSTOW’S STAGES OF ECONOMIC GROWTH
Stage Characteristics Examples
1. Traditional 
Society
• Depends upon primary sector 
activities (farming, fishing, hunting) for 
subsistence
• Uses limited technology
• Carries out local or regional trading
• Enjoys limited socioeconomic mobility
• English colonies in 
North America in the 
17
th
 century
• Medieval Europe
• No entire country is 
at this stage today
2. Preconditions 
for Take-Off • Improves infrastructure (roads, 
electrical grid, water systems, etc.)
• Improves farming techniques and shifts 
toward commercial agriculture
• Exports agricultural and raw materials 
(international trade)
• Diffuses technology more widely
• Starts individual socioeconomic 
mobility
• United States in the 
early 19
th
 century
• Nigeria today
• Afghanistan today
3. Take-Off • Develops major technological 
innovations
• Starts industrialization and primary 
sector begins to shrink
• Spreads entrepreneurial mentality
• Begins to urbanize
• Initiates self-sustaining growth
• United States, mid-
19
th
 century
• Japan, late 
19
th
 century
• Bangladesh today
4. Drive to 
Maturity
• Creates new industries while 
strengthening existing ones
• Improves energy, transportation, and 
communication systems
• Sees economic growth greater than 
population growth
• Invests in social infrastructure (schools, 
hospitals, etc.)
• United States, late 
19
th
 century
• Germany, early 
20
th
 century
• Brazil today
5. High Mass 
Consumption
• Spends money on nonessential goods 
(consumerism)
• Purchases of high order goods become 
common
• Desires to create a more egalitarian 
society
• Supports a strong tertiary sector
• United States, early 
1920s to present
• Japan, mid-1950s to 
present
Notice the types of changes that have to occur to allow for a country to transition from one stage to the 
next. What would be a major concern if all countries reached the stage of high mass consumption?
481 7.5: THEORIES OF DEVELOPMENT
Criticisms of Rostow’s Model
In spite of being one of the most influential economic models of the 20
th
 century, 
some experts have expressed concerns about Rostow's model. Critics of Stages 
of Economic Growth model argue it has several weaknesses.
Limited Examples The model was based on American and European 
examples, so it did not fit countries of non-Western cultures or noncapitalist 
economies.
Role of Exploitation Rostow's model led to poorer countries getting 
trapped in a state of dependency upon wealthier countries.
Bias Toward Progress The model suggested linear change, always in the 
direction of progress. However, developing countries often need the assistance, 
money, and technology of developed countries to develop. And in some cases, 
countries might regress in economic development.
Lack of Variation In his model, Rostow suggested all countries have the 
potential to develop, but there are significant differences among countries, 
such as physical size, population, natural resources, relative location, political 
systems, and climate, that affect their ability to develop.
Lack of Sustainability The model assumed that everyone could eventually 
lead a life of high mass consumption but failed to consider sustainable 
development or the carrying capacity of the earth.
Need for Poorer Countries Rostow's model failed to recognize that most 
of the countries which reached the stage of high mass consumption did so by 
exploiting the resources of lesser-developed countries. Countries that were still 
developing would have difficulty finding other countries to exploit.
Narrow Focus The model focused on domestic economies and did not 
directly address interactions between countries, specifically globalization.
Despite these criticisms, geographers, economists, and others continue to 
use the model to understand how countries have changed over the past two 
centuries. It has prompted people to think about economic and social change 
in a global context and challenged them to provide their own framework.
Wallerstein’s World Systems Theory
In the 1970s, historian Immanuel Wallerstein proposed an alternative model 
to Rostow’s, which he called the World Systems Theory. It is a dependency 
model, meaning that countries do not exist in isolation but are part of an 
intertwined world system in which all countries are dependent on each other. 
Dependency theory argues that colonialism and neocolonialism (see Topic 
4.2) are the cause of global inequities. Both Wallerstein and Rostow attempt 
to explain the inequalities that exist between different countries and regions. 
W orld Systems Theory includes both political and economic elements that have 
significant geographic impacts.
As mentioned in Topic 7.2, Wallerstein divided countries into three 
types—core, semiperiphery, and periphery. As a result, his theory is sometimes 
referred to as the Core-Periphery model. 
Page 5


478 CHAPTER 19: DEVELOPMENT AND TRADE
Development and Trade
Topics 7.5–7.6
Topic 7.5 Theories of Development
Learning Objective: Explain different theories of economic and social develop -
ment. (SPS-7.E)
Topic 7.6 Trade and the World Economy
Learning Objective: Explain causes and geographic consequences of recent 
economic changes such as the increase in international trade, deindustrializa-
tion, and growing interdependence in the world economy. (PSO-7.A)
Globalization, the increasing integration and interdependence 
of domestic and overseas markets, has three sides: the good side, 
the bad side, and the ugly side.
—Panos Mourdoukoutas, “The Good, the Bad, and the Ugly Side of 
Globalization,” Forbes, 2011
Source: Wikimedia Commons
The Three Gorges dam is an infrastructure project designed to generate hydroelectric energy for 
China. (See Topic 7.6 for factors that influence interdependence and the world economy.)
CHAPTER 19
7.5: THEORIES OF DEVELOPMENT 479
7.5
Theories of Development
Essential Question: What are the theories of economic and social 
development?
Why have some countries of the world become so much wealthier than 
others? Geographers and others have proposed several theories of development 
to answer this question. Underlying it is a more general issue about equality. 
Can all countries grow equally prosperous, or will the world always include a 
mix of more- and less-wealthy countries? 
Theories of Development
Topic 7.3 described various social and economic measures of development and 
systems for grouping countries based on these measures. While the measures 
and systems vary, most show that Australia, New Zealand, Japan, South Korea, 
and most countries of North America and Europe are more developed than 
most of Africa, parts of Asia, and South America. Two of the best-known 
theories explaining these differences were developed by Walt Rostow and 
Immanuel Wallerstein. 
Rostow’s Stages of Economic Growth
In 1960, American economist W alt W . Rostow developed a modernization theory 
that focuses on the shift from traditional to modern forms of society. He called 
it the Stages of Economic Growth model. Rostow assumed that all countries 
wanted to modernize, and that all would, though at different speeds. He saw 
economic development as a linear progression in which countries moved from 
one stage to the next until they reached the fifth and final stage—high mass 
consumption.
Like the Demographic Transition Model (DTM), the Stages of Economic 
Growth theory is a generalization based upon how the United States and 
western Europe evolved, and both identify distinct stages. However, they differ 
fundamentally. The DTM is a population model that focuses on changes in the 
number of people in a country . Rostow's theory is an economic model that  focuses 
on how people live. 
Rostow suggested that different inputs and levels of investment were 
required to allow countries to move from one stage to the next. The theory 
suggests a system for development—do this, then this, and eventually the 
economy of a country will become developed. The key characteristics associated 
with each stage are listed in the chart on the following page.
480 HUMAN GEOGRAPHY: AP
®
 EDITION
ROSTOW’S STAGES OF ECONOMIC GROWTH
Stage Characteristics Examples
1. Traditional 
Society
• Depends upon primary sector 
activities (farming, fishing, hunting) for 
subsistence
• Uses limited technology
• Carries out local or regional trading
• Enjoys limited socioeconomic mobility
• English colonies in 
North America in the 
17
th
 century
• Medieval Europe
• No entire country is 
at this stage today
2. Preconditions 
for Take-Off • Improves infrastructure (roads, 
electrical grid, water systems, etc.)
• Improves farming techniques and shifts 
toward commercial agriculture
• Exports agricultural and raw materials 
(international trade)
• Diffuses technology more widely
• Starts individual socioeconomic 
mobility
• United States in the 
early 19
th
 century
• Nigeria today
• Afghanistan today
3. Take-Off • Develops major technological 
innovations
• Starts industrialization and primary 
sector begins to shrink
• Spreads entrepreneurial mentality
• Begins to urbanize
• Initiates self-sustaining growth
• United States, mid-
19
th
 century
• Japan, late 
19
th
 century
• Bangladesh today
4. Drive to 
Maturity
• Creates new industries while 
strengthening existing ones
• Improves energy, transportation, and 
communication systems
• Sees economic growth greater than 
population growth
• Invests in social infrastructure (schools, 
hospitals, etc.)
• United States, late 
19
th
 century
• Germany, early 
20
th
 century
• Brazil today
5. High Mass 
Consumption
• Spends money on nonessential goods 
(consumerism)
• Purchases of high order goods become 
common
• Desires to create a more egalitarian 
society
• Supports a strong tertiary sector
• United States, early 
1920s to present
• Japan, mid-1950s to 
present
Notice the types of changes that have to occur to allow for a country to transition from one stage to the 
next. What would be a major concern if all countries reached the stage of high mass consumption?
481 7.5: THEORIES OF DEVELOPMENT
Criticisms of Rostow’s Model
In spite of being one of the most influential economic models of the 20
th
 century, 
some experts have expressed concerns about Rostow's model. Critics of Stages 
of Economic Growth model argue it has several weaknesses.
Limited Examples The model was based on American and European 
examples, so it did not fit countries of non-Western cultures or noncapitalist 
economies.
Role of Exploitation Rostow's model led to poorer countries getting 
trapped in a state of dependency upon wealthier countries.
Bias Toward Progress The model suggested linear change, always in the 
direction of progress. However, developing countries often need the assistance, 
money, and technology of developed countries to develop. And in some cases, 
countries might regress in economic development.
Lack of Variation In his model, Rostow suggested all countries have the 
potential to develop, but there are significant differences among countries, 
such as physical size, population, natural resources, relative location, political 
systems, and climate, that affect their ability to develop.
Lack of Sustainability The model assumed that everyone could eventually 
lead a life of high mass consumption but failed to consider sustainable 
development or the carrying capacity of the earth.
Need for Poorer Countries Rostow's model failed to recognize that most 
of the countries which reached the stage of high mass consumption did so by 
exploiting the resources of lesser-developed countries. Countries that were still 
developing would have difficulty finding other countries to exploit.
Narrow Focus The model focused on domestic economies and did not 
directly address interactions between countries, specifically globalization.
Despite these criticisms, geographers, economists, and others continue to 
use the model to understand how countries have changed over the past two 
centuries. It has prompted people to think about economic and social change 
in a global context and challenged them to provide their own framework.
Wallerstein’s World Systems Theory
In the 1970s, historian Immanuel Wallerstein proposed an alternative model 
to Rostow’s, which he called the World Systems Theory. It is a dependency 
model, meaning that countries do not exist in isolation but are part of an 
intertwined world system in which all countries are dependent on each other. 
Dependency theory argues that colonialism and neocolonialism (see Topic 
4.2) are the cause of global inequities. Both Wallerstein and Rostow attempt 
to explain the inequalities that exist between different countries and regions. 
W orld Systems Theory includes both political and economic elements that have 
significant geographic impacts.
As mentioned in Topic 7.2, Wallerstein divided countries into three 
types—core, semiperiphery, and periphery. As a result, his theory is sometimes 
referred to as the Core-Periphery model. 
482 HUMAN GEOGRAPHY: AP
®
 EDITION
WALLERSTEIN’S WORLD SYSTEMS THEORY
Category Characteristics Examples
Core • Includes the economically advantaged 
countries of the world
• Includes the headquarters of most large 
multinational companies and banks
• Focuses on higher-skill, capital-intensive 
production
• Promotes capital accumulation
• Dominates semiperiphery and periphery 
economically and politically 
• Locates factories and service centers in 
semiperiphery and periphery countries
• Benefits greatly from international trade
• United States
• United Kingdom
• Japan
• Australia
• Germany
Semiperiphery • Includes most middle-income countries, 
sometimes called emerging economies
• Provides the core with manufactured 
goods and services that the core formerly 
provided for itself
• Shares characteristics of both core and 
periphery
• China
• Mexico
• Brazil
• South Africa
• India
Periphery • Includes the least-developed countries
• Maintains many jobs in low-skill, labor-
intensive production and extraction
• Provides the core and semiperiphery with 
inexpensive raw materials and labor
• Receives jobs but few profits from 
manufacturing
• Attracts jobs by having weak laws 
protecting workers and the environment
• Afghanistan
• Zimbabwe
• Bolivia
• Kenya
• Laos
Core Dominance Multinational companies, financial institutions, 
and centers of technology are mostly based in core countries, but they have 
signficantly influenced the economies of semiperiphery and periphery 
countries. Businesses and governments in non-core countries borrow money 
to finance large-scale projects and purchase technology from core countries. 
Both processes increase the dependency of the periphery on the core.
Changing Categories Unlike Rostow’s model, Wallerstein’s model does 
not suggest that all countries can reach the highest level of development, nor 
does it explain how countries can improve their position. In contrast, it indicates 
that the world system will always include a combination of types of countries. 
But countries can change categories, moving in or out of the core. For example, 
in 1950, South Korea and Singapore were part of the periphery. By 2020, they 
were core countries. In 1900, Argentina was a core country. By 2000, it had 
become part of the semiperiphery.