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Major Development Theories

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Rostow's Stages of Growth

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Rostow's Stages of Growth is a non-communist manifesto that outlines five stages through which societies progress to reach modernity. Created by Walt Rostow, it suggests an evolutionary path from traditional society to a high mass consumption one.

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Social Capital Theory

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Social Capital Theory, as advanced by Robert Putnam and others, posits that social networks, norms, and trust are key resources for socio-economic development. These social structures facilitate cooperation for mutual benefit and are as important as physical and human capital.

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Triple Bottom Line

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The Triple Bottom Line concept, coined by John Elkington, expands the traditional reporting framework to include social and environmental (or ecological) issues along with financial performance. It implies that companies should be preparing three different (and quite separate) bottom lines.

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Modernization Theory

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Modernization Theory suggests that countries go through stages of development and that economic growth leads to social evolution. Originated by Walt Rostow, it implies that developing countries will eventually catch up to developed countries through industrialization and economic progress.

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Human Capital Theory

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Human Capital Theory posits that investment in human education and skills is a critical factor in economic development. Originated by economists like Theodore Schultz, it implies that human skills can greatly enhance productivity and development.

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Sustainable Development

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Sustainable Development involves balancing economic development with environmental sustainability for the long-term well-being of the planet. Introduced by the Brundtland Commission, this theory advocates for meeting the needs of the present without compromising the ability of future generations.

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Women in Development (WID)

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Women in Development (WID) emphasizes the importance of including women in the development process. It addresses gender inequalities and advocates for women's rights and input in development policies and projects. Influenced by feminist theories, it seeks to challenge the male-dominated development agenda.

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Post-Development Theory

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Post-Development Theory criticizes traditional ideas of development, arguing that such concepts are Western-centric and impose a single path to progress. Proponents like Arturo Escobar challenge the very notion of development and advocate for diverse, locally-driven solutions.

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Ecological Modernization

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Ecological Modernization is a theory that contends economic growth can be compatible with environmental protection through technological innovation and shifts in regulatory policies. Originated in the 1980s, it promotes sustainable development through the greening of industrial processes.

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The Innovation Systems Approach

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The Innovation Systems Approach emphasizes the role of institutional arrangements and organizations in the development and diffusion of new technologies. By recognizing the collective and interactive aspects of innovation, it suggests a systems perspective focusing on networks between firms, government, and research institutions.

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World Systems Theory

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World Systems Theory, created by Immanuel Wallerstein, divides the world into three hierarchical regions: core, semi-periphery, and periphery. It emphasizes that the world economy as a system benefits the wealthy countries while exploiting the poorer ones.

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Capabilities Approach

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The Capabilities Approach, developed by Amartya Sen and Martha Nussbaum, proposes assessing individual well-being in terms of the ability to achieve valuable 'functionings' and the freedom to choose among them. It shifts the focus from economic growth to personal capabilities as the measure of development.

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Gender and Development (GAD)

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Gender and Development (GAD), evolving from WID, focuses on the socially constructed differences between men and women and the need to challenge existing gender roles and relations. It advocates for development that supports gender equity and acknowledges women's diverse roles in society.

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Dual Sector Model

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Dual Sector Model, also known as the Lewis Model after W. Arthur Lewis, suggests that underdeveloped economies are composed of a traditional, rural sector and a modern, urban sector. Economic development is achieved as labor moves from the former to the latter.

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Dependency Theory

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Dependency Theory argues that economic development of poor countries is largely blocked by their dependence on wealthy nations, resulting from a legacy of colonialism. Originated by scholars like Andre Gunder Frank, it implies that the world economic system contributes to underdevelopment.

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