Correct option is C
In his theory of Circular Cumulative Causation, Gunnar Myrdal describes regional inequalities through the concepts of backwash effects and spread effects. Backwash effects refer to the negative impacts on underdeveloped regions due to the growth of developed areas (such as the migration of labor and resources), while spread effects refer to the positive influences that the development of a prosperous region can have on surrounding areas, such as increased trade or investments.
Information Booster
- Backwash effects are essentially the draining of resources from poorer regions as wealthier regions grow, leading to further inequalities.
- Spread effects occur when the growth of a developed area benefits surrounding regions by spreading new technologies, economic opportunities, and infrastructural development.
- Myrdal’s theory emphasizes that regional inequalities are not only the result of isolated events but are often perpetuated through a feedback loop of growth and decline.
- This model explains how a disparity between regions can increase over time due to the uneven distribution of economic and social benefits.
- Myrdal's contribution helped shift the focus of development theory from simple linear models to more complex, interconnected understandings of regional development.
Additional Knowledge
- Forward and backward linkages (A): These refer to the economic connections between industries and sectors, but they are not directly part of Myrdal’s theory.
- Push and pull factors (B): These refer to the factors that drive migration, such as economic opportunities or hardships, but they are not the main focus of Myrdal’s work on circular causation.
- Balance and unbalanced growth (D): While unbalanced growth is a concept in economic development theory, it is not the same as Myrdal’s backwash and spread effects.