Endogenous Growth Theory

1    Endogenous Growth Theory

http://wp.aae.wisc.edu/ced/wp-content/uploads/sites/3/2013/07/economic-growth-on-line-for-CNRED.pdf

Define: long-term economic growth which has been fostered internally, particularly to grow technological growth and knowledge.

Apply: this can be applied at the community level, particularly when a community is looking to grow its human capital. Knowledge and education can be fostered within a community to grow capabilities, draw companies providing those jobs, and then other service providers to support this workforce into the community.

Adapt: This can also be adapted within a company, in which decision-makers decide to invest in the education of their employees. As their employees learn more, the company expands and improves.

Dynamic Systems Theory

Define: Often known as systems theory, dynamic systems theory addresses system transformation, and includes related theories such as cybernetics, catastrophe theory, and chaos theory.

Source: Robbins, S., Chatterjee, P., & Canda, E. (2012). Contemporary human behavior theory: A critical perspective for social work (3rd ed., p. 35). Boston: Allyn & Bacon.
Apply: Dynamic systems theory within a community shows how individuals, groups, organizations, and other formal services interact at all levels to create a multi-faceted and multi-layered group dynamic.

Adapt: A single family can be seen as a system. Every member is an individual, yet each member is mutually influencing other members, outside individuals which interact with family members, and outside services (such as faith organizations, social services, etc.).

International Dependence Models

1.       International Dependence Models

Define: This model states that underdevelopment exists in "Third World" countries due to the influence of multinational corporations and developed countries.

Source: file:///C:/Users/aalbers/Downloads/9789812872470-c2.pdf

Apply: On the community level, this phenomenon can be seen among workers who are paid very little in a developing country, and the multi-national corporations which employ these workers are making a large profit. The worker is left with little to spend or reinvest into his/her own community; the profits instead are made in the developed country.

Adapt: This theory describes underdeveloped countries as dependent on developed nations, financially. And while the developing countries count on the developed countries for resources, investment, and jobs, the developing country exports the products and services they provide at low cost to the developed countries. The developed countries then sell these products for a profit, and the developing country is left in the dust - not benefiting from the partnership.

Theory of Coordination Failure

1.       Theory of Coordination Failure

Define: The theory of coordination failure is an economic development theory which describes when the market fails to coordinate complementary activities.

Source: file:///C:/Users/aalbers/Downloads/9789812872470-c2.pdf

Apply: In the case of development activities, activities must be coordinated and timed to occur in a sequence which makes the actions the most productive. This same principle is important outside of economic development activities; for example, planning availability of human capital, weather, communications, and so on when planning an important community event. 

Adapt: This theory could also be applied to larger corporate business, in which investments are coordinated based on market movement for the purposes of generating the largest return. 

Dualistic Development Theory

Dualistic Development Theory 

Define: Dualistic development theory recognizes the divergences that exist and which are growing between people of means and people living in poverty. 

web.uvic.ca/~ramanik/320s/chapter4.ppt

Apply: Recognizing the impact of this theory in working to develop communities is key; by recognizing the disparities which exist in a community, and the likelihood that these disparities will grow, organizers and residents can begin to address these disparities through action in community development. 

Adapt: Dualistic development could also be applied to policy work, particularly in relation to policies that affect those living in poverty in America. From making decisions on the minimum wage - or a living wage - to Affirmative Action policies, all can be affected when considering the dualistic development theory.

Linear-stages theory

Linear-stages theory 

Define: Linear-stages theory describes development as a series of stages of economic growth. This can involve saving, foreign aid, and investment.

web.uvic.ca/~ramanik/320s/chapter4.pp

Apply: When considering community development, it could be helpful to consider linear-stages theory as it recognizes economic development as the key driver of community development. In a community which is suffering due to lack of investment or poor economic opportunity, planning for the future of the community in stages of economic development could be helpful. 

Adapt: Linear stages theory can also be relevant for a single business looking to grow. By considering their financial growth in stages, from saving, investment in their own growth, and perhaps an influx of cash from an investor, the small business can grow larger. 

Rostow’s Stages of Growth

Rostow’s Stages of Growth 

Define: Rostow's Stages of Growth describe the stages of economic growth within a community. The five stages are: traditional society (things as they are), pre-conditions for take-off, take-off, the drive to maturity, the age of high mass consumption.

Source: web.uvic.ca/~ramanik/320s/chapter4.pp

Apply: These stages can be representative of growth within a single community, and can be useful for a community that is planning the stages of how they will move forward with developing an under-developed or impoverished sector or geographic area of the community.

Adapt: These stages of growth can be considered when looking at the growth of developing countries. While I disagree that the stages of economic growth are as linear and simple as Rostow suggests, this does provide a basic layout for how a developing country or smaller geographical area can grow economically.

Chenery’s Model/Patterns of Development

Chenery’s Model/Patterns of Development 

Define: Chenery's Model describes economic development of a community as requiring multiple related changes to the structure of an economy. 

Source: http://www.jstor.org/stable/2054868?seq=1#page_scan_tab_contents
web.uvic.ca/~ramanik/320s/chapter4.pp

Apply: This can be applied within communities when considering how to spur economic development. Chenery's model can be related to the importance of multi-sector collaboration, and making change from different directions at once. For example, providing low-interest home loans in the housing sector while nonprofits are also working to eliminate blight and improve housing quality and home prices. 

Adapt: Chenery's model can be adapted to many different areas requiring change. When trying to address health issues within a population, it makes sense to attack a problem as it is affecting people with health issues (outcome), but to also address the factors that lead to these conditions (for example, does poor access to healthy food cause obesity?).

Growth Machine Theory

       Growth Machine Theory

Define: Growth Machine Theory states that power structures in communities matter in the economic development of the community; those who benefit the most from economic development are the drivers of development.

Source: http://wp.aae.wisc.edu/ced/wp-content/uploads/sites/3/2013/07/economic-growth-on-line-for-CNRED.pdf

Apply: This theory is important to consider when making decision on how to spurn economic development within a community. The major players involved in the development of the community may also be benefiting economically from decisions made in regard to development. When deciding the key players in community development, this possibility should be considered as the goal is to have economic development that benefits all.

Adapt: This can also be adapted to businesses within a specific geographic who are buying up properties for further development in order to grow their businesses. Those who have the most resources and power at their disposal will be the strongest forces of change within that geographic area. 

Collective Impact

Define: Collective impact occurs when organizations from different sectors come together to accomplish a common goal. For collective impact to be applied properly, the organizations must have a common agenda, shared measurements of success, mutually reinforcing activities, continuous communication, and a strong backbone organization to handle administrative duties and keep organizations on task.

Source: http://collectiveimpactforum.org/what-collective-impact

Apply: An example of the Collective Impact Model can be seen in Washtenaw County with the Washtenaw Health Initiative. The “headquarters” of this coalition are housed within the Center for Healthcare Research and Transformation, which serves as the backbone organization. Common health needs in the community are identified and addressed through multi-sector collaboration, including health systems, the public health department, payers, educators, philanthropy organizations, clinics, public bodies (such as city councils and county administration), housing organizations, faith organizations, and so on. Employees of these services volunteer their time to community projects which address common health concerns; each project has specified goals to be accomplished, and the organizations from these sectors all contribute time, expertise, and community reach to accomplish these goals.

Adapt: Collective impact could – and should - be utilized within government frameworks to promote collaborative and informed approaches to problems faced within governed geographic regions. By working formally with non-profit groups, research organizations, health care providers, educators, and others, governing administrations receive more informed feedback and community buy-in when attempting change.