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Myrdal's Cumulative Causation Model
Concepts, Stages, Example
Author:
Syed Ali
Edu Level: Unit2
Date: Aug 13 2025 - 7:29 PM
⏱️Read Time: 2 min
Regional Disparities in Development – Myrdal’s Cumulative Causation Model
In 1955, economist Gunnar Myrdal introduced the Cumulative Causation Model to explain why development tends to be uneven between core and peripheral regions.
Myrdal argued that certain areas gain advantages—such as strategic location, abundant natural resources, and better infrastructure—that allow them to develop faster.
Key Concepts in the Model
- Backwash Effect – Negative impacts on less developed (peripheral) areas when investment and skilled labour migrate to more developed (core) areas. This causes a drain of talent, capital, and opportunities away from the periphery.
- Multiplier Effect – Growth in one type of economic activity stimulates further growth in other sectors in the same area. In regions with significant investment and infrastructure (growth poles), this leads to a cycle of cumulative development, attracting even more workers, entrepreneurs, and investors.
- Spread Effects – Positive impacts of core region growth on peripheral areas, such as increased demand for agricultural goods or labour. Over time, some peripheral areas may improve and develop into secondary cores. However, if spread effects are weak, these regions remain underdeveloped.
Myrdal believed that government intervention was essential to help peripheral areas break the cycle of underdevelopment and encourage balanced regional growth.
Stages of Myrdal’s Model
- Traditional Pre-Industrial Stage – Few differences between regions.
- Divergence Stage – Regional disparities increase due to strong multiplier and backwash effects.
- Convergence Stage – Disparities reduce as spread effects strengthen.
Examples of Myrdal’s Model in Action
Caribbean
Core: Trinidad (due to its oil and gas industry) attracts skilled labour and investment from neighbouring islands.
Periphery: Smaller islands like St. Vincent or Dominica may lose skilled workers to Trinidad, but may also benefit from spread effects through increased demand for agricultural exports and tourism.
United States
Core: Silicon Valley, California, draws tech talent and investment from across the country.
Periphery: Rural states experience brain drain, but may benefit from supply contracts or service demands from the tech sector.
Europe
Core: London, with its financial hub, attracts global capital and workers.
Periphery: Regions in Northern England and Wales may experience loss of skilled labour, but can see some spread effects via increased demand for manufacturing and housing.
