Kamis, 29 Maret 2012

The essential distinctions among the stages- of growth theory of development, the structural  change modal of LEWIS and Chenery, and the organization of international dependence in both its neo MARXIST and false paradigm conceptualizations



1.  Rostows’s stages of growth   
            Rostow is dividing a country's economic development process into five stages, namely: (1) phase of the traditional economy, with per capita income is low and stagnant economic activity, (2) preconditions for take-off stage, where the preconditions for the growth stages of preparation, (3) Phase take-off, is the beginning of the process of sustainable economic growth, (4) stage to maturity, in this case aimed at heading stage of economic maturity, (5) high mass consumption stage, the stage has entered a stage of development associated with the industry

2. The Harrod-Domar growth model
             This theory emphasizes the concept of natural growth rate. In addition to the quantity of production factors of labor also increases the efficiency calculated for the education and training. This model can determine how much savings or investments required to maintain the natural economic growth rate that is a natural economic growth rate multiplied by the capital-output ratio.

 3. The Structural change model of Lewis
This model is a special model that describes the case of developing countries whose population is growing a lot. The emphasis is on the transfer of surplus population in the agricultural sector into the modern capitalist sector of the industry-funded from the surplus profits. Structural change models of Lewis stated that if the surplus labor of the modern industrial sector has labors absorption is higher, so it will promote the industrialization and by itself will spur the development of sustainable.

·         4. The structural change model of Chenery
This model focus on structural changes in the stages of the process of economic change, industrial and institutional structures of emerging economies, which experienced a transformation from traditional agriculture to switch to the industrial sector as the main engine of economic growth. Hollis Chenery research conducted on the transformation of production structure shows that the increased role of the industrial sector in the economy in line with the increase in income per capita is happening in a country closely linked with the accumulation of capital and improving human resources (human capital). This pattern also requires that in addition to physical and human capital accumulation, it is also necessary that the set of interrelated changes in the structure of the economy of a country for the implementation of the change from the traditional economic system into a modern economic system. These structural changes involve the entire economy functions, including transformation of production and changes in the composition of consumer demand, international trade and changes in socio-economic such as urbanization, population growth and distribution.

·          5. The Neocolonial –Dependence Model
Model of colonial dependence is an indirect outgrowth of Marxist thinking. The main idea is that a disproportionate relationship between the central state which consists of the developed and the periphery is composed of the developing world. This model also argues that small elite in developing countries, such as the military, entrepreneurs, and the authorities, contributed to the preservation of retardation. Because they help preserve the international capitalist system is unjust, oppressive, and they do get benefit from it.

·        6. The false-paradigm model
Underdevelopment of Third World countries is caused by errors or inaccuracies counsel/advice given by advisers and experts from international aid agencies and donor countries, multinational donors. Advice or suggestions they may mean well but often do not have enough information about the country to be assisted, especially developing countries.

          I think the best explanation is related to the situation in most developing countries is the neocolonial dependence model (neo-Marxist). This model explains that economic development on developing countries depend on developed countries, especially in direct investment (foreign capital loans) in the mining sector and import of goods produced. Most developing countries are in a phase change into an agricultural state of emergency state of the industry that relies heavily on developed countries in terms of providing technology that is able to increase state revenue through a variety of sectors that would require a lot of technology in addition to its human quality. Automatically so that developing countries rely heavily on developed countries, where dependence is not balanced relationship between the central state of the State periphery.

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