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What is the scale of global inequality, and how can it be reduced? (b) Typeit

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Rostow's modernisation theory was developed by W. W. Rostow. He argued that development occurred through the development of private companies with the aim of making a profit. We call this economic system . Rostow developed a five-stage model. In stage one, the society is undeveloped, with the population mainly working in subsistence agriculture. This stage is called  society. In the second stage, some simple manufacturing develops, along with a basic road, railway and  transport. This is the precondition for take-off stage. In the third stage, take-off, rapid industrialisation and cultural change occur - in the UK, we saw this in the early nineteenth century and we call it the Industrial . The fourth stage is called the drive to , which sees new technologies develop and wide-spread economic growth. The UK reached the fifth stage about eighty years ago - and this is called, and characterised by, high mass . As a result, businesses are able to keep going, and we have a government welfare system, paid for by taxes.


Another model was proposed by A. G. Frank, who argued that capitalism didn't help developing countries, and that  would provide a more equal society. He saw that developing countries had been exploited by developed countries through the process of  - developed countries were the economic core, while developing countries were the economic . Developed countries imported cheap, unfinished goods from developing countries and added value by refining or finishing them. The expensive goods from the are then sold back to the periphery.

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