Section 5.4 Growth and development strategies - notes
When thinking about this serious issue, we need to be honest and ask ourselves if Africa and other parts of the world should simply follow the same path as the now developed countries. Would this solve all their problems? Should they switch from the lower productivity based traditional sectors of their economies and compete with us in the modern, industrialised world? Should they be forced to adopt the ways of the rich nations, or is a more enlightened way forward the blending of what is good in both ways of life, so as to allow a better final result to emerge?
In this section, we look at the different theoretical models that have been developed to try to explain the process of development and therefore help construct suitable policies. As you are working through the section, always try to think critically about the models. When might they be appropriate and when might they be inappropriate?
In this section we consider the following topics in detail:
- Harrod-Domar growth model
- Structural change/dual sector model
- Types of aid
- Export-led growth / outward-oriented strategies
- Import substitution / inward-oriented growth strategies / protectionism
- Commercial loans
- Fair trade organisations
- Micro-credit schemes
- Foreign direct investment
- Sustainable development
