Development Theories and Global Inequality
Two major theories explain how countries develop - and they completely disagree with each other! Frank's theory argues that poor countries stay poor because rich nations exploit them through cheap labour, political interference, and dodgy high-interest loans that trap them in debt.
Rostow's theory is more optimistic, suggesting all countries can progress through five stages: from traditional farming societies to mass consumption economies with loads of trade and technology. Think of it like levelling up in a video game - each stage unlocks better economic opportunities.
Globalisation - the world becoming more interconnected - happens when TNCs (transnational corporations) operate across multiple countries and governments promote free trade. However, this creates winners and losers, often making global inequality worse.
Quick Tip: Remember GDP measures a country's total economic output, whilst HDI combines life expectancy, education, and income for a fuller picture of development.
The consequences of global inequality are massive: poor healthcare and education, higher crime rates, less political influence, and environmental damage from desperate industrialisation attempts.
