FMA1 - Camba
FMA1 - Camba
FMA1 - Camba
Bridging Development
Models with Urban Strategy
in Hopes for a Brighter
Philippines
Judette C. Camba
2024-30531
3,486 words
University of the Philippines Open University
Diploma in Land Use Planning
INTRODUCTION:
The Philippines, as a developing nation, has been shaped by the major
theories of economic development over the decades. These four key approaches -
linear-stages-of-growth, structural change, international dependence, and
neoclassical free-market - have all played a role in influencing the country's
development path, though to varying degrees and with mixed results.
These four theoretical lenses have each left an imprint on the economic
development experience on many countries, shaping its policy choices, strategies,
and performance over time. Understanding this context is crucial for analyzing the
current challenges and opportunities facing the Philippine economy.
FOUR APPROACHES:
1. Linear-stages-of-growth Model
2. Theories and Patterns of Structural Change
3. International-Dependence Revolution
4. Neoclassical, Free-Market Counterrevolution
LINEAR-STAGES-OF-GROWTH MODEL
This model, prominent during the 1950s and 1960s, sees development as a
progression through specific stages that all nations must navigate, drawing on the
historical experiences of Western countries. It emphasizes that development is driven
by capital accumulation and industrialization. A key example is Walt Rostow's
framework, which outlines stages such as traditional society, preconditions for take-
off, take-off, drive to maturity, and high mass consumption. The primary indicators
of development within this model are savings and investment rates, with a focus on
enhancing these to foster economic growth.
A. Fundamental Principles:
o Development follows a linear trajectory.
o All nations experience the same developmental pathway.
o Economic growth relies significantly on capital accumulation.
B. Growth Factors:
o Technological innovations.
o Increased levels of savings and investments.
o Transition from an agriculture-based economy to industrialization.
C. Key Assertions:
o Development unfolds in a series of stages.
o Each stage must be achieved before progressing to the next.
o Wealthier nations can assist developing countries through investment and
expertise.
Urban and regional planning is crucial for aiding the Philippine government in
realizing the objectives of the Linear Stages of Growth Model by offering a methodical
framework for development. Here are some ways to elaborate on this concept:
A. Fundamental Principles:
o Economic growth involves structural transformations.
o A transition from agriculture to industrial and service sectors is necessary.
o Urbanization plays a crucial role in this transformation.
B. Growth Factors:
o Labor reallocates from low-productivity agriculture to higher-productivity
sectors.
o Advances in technology.
o Changing consumer demands.
C. Key Assertions:
o Economic development requires a structural shift.
o Urbanization and industrialization advance hand in hand.
o As economies evolve, the service sector becomes more prominent.
planners can better connect workers to job opportunities, thus removing barriers to
employment and fostering growth across various sectors.
INTERNATIONAL-DEPENDENCE REVOLUTION
A. Fundamental Principles:
o Underdevelopment originates externally.
o The global division consists of core (developed) and periphery (developing)
nations.
o Developing countries exist in a state of dependency.
B. Growth Factors:
o Overcoming dependency.
o Embracing self-reliant development.
o Engaging in South-South cooperation.
C. Key Assertions:
o Historical exploitation leads to underdevelopment.
o The current economic system entrenches inequality.
o Developing nations must minimize their dependency.
Urban and regional planning can significantly support the Philippine government in
achieving the development objectives associated with the International-Dependence
Revolution, which emphasizes self-reliance and equitable growth. Here’s how:
valuable insights into land use and resource management, improving the
sustainability of development efforts.
10. Supporting the Creation of Educational and Research Institutions for Local
Innovation
Urban planners can advocate for the establishment of educational and research
institutions that address local challenges and opportunities. By fostering
collaboration among universities, research centers, and industries, these institutions
can drive innovation and produce solutions tailored to the local context.
Emerging in the 1980s and 1990s, this perspective highlights the advantages of free
markets, open economies, and privatization of inefficient public enterprises. It
contends that underdevelopment arises from poor resource allocation due to
mispricing and excessive governmental intervention. The guiding principle is that
liberalized markets enhance efficiency and drive economic growth. Development
indicators in this model include economic growth rates, levels of privatization, trade
openness, and various measures of market efficiency and competitiveness.
A. Fundamental Principles:
o Free markets effectively allocate resources.
o Government intervention can distort market efficiency.
o Economic openness promotes growth through trade and investment.
B. Growth Factors:
o Privatization of state-run enterprises.
o Deregulation of various markets.
o Liberalizing trade and capital movements.
C. Key Assertions:
o Resource allocation should be directed by market forces.
o Competition fosters efficiency and drives innovation.
o Foreign investment is vital for fostering economic growth.
Urban and regional planning is essential for enabling the Philippine government to
achieve the development goals associated with the Neoclassical, Free-Market
Counterrevolution, which prioritizes market efficiency, private enterprise, and
minimal government interference. Here’s how:
spaces, planners can create urban environments that remain dynamic and
responsive to shifts in economic trends.
SUMMARY:
The field of economic development has been shaped by various theories and
models, each with its own unique perspective on the drivers and processes of
growth and change. The linear-stages-of-growth model views economic development
as a sequential process, where countries must pass through a series of
predetermined stages, with investment and capital accumulation being the key
drivers. In contrast, the theories of structural change focus on the transformation
of the economy's sectoral composition, from agriculture to industry and then
services, driven by technological advancements and productivity differences across
sectors.
Reference:
Todaro, M. P., & Smith, S. C. (2012). Economic development (11th ed.). Addison-Wesley.
https://fenix.iseg.ulisboa.pt/downloadFile/1688983004255169/Economic%20Development,
%2011th%20Edition%20(The%20Pearson%20Series%20in%20Economics)%20by%20Michael
%20P.%20Todaro,%20Stephen%20C.%20Smith%20(z-lib.org).pdf