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India, Africa, Asia and South America These colonies were used as a source ofraw material
and as markets for industrial and manufactured goods from colonial powers. It was thought
that the sale of these resources to a market where they had the monopoly of trade would
enable the selling country to grow economically. This approach came to be regarded as the
modern classical model, more appropriately koown as the colonial model. The modern
classical system of trade existed into the Twentieth Century until most of these colonies
gained independence from their colonial masters.
Although developing countries began to show increases in per capita income and gross
national product, most of these increases were linked to the colonial government and
expatriates. This made the colonisers (or mother countries) rich with very little ofthe wealth
being ploughed back into the colonies. The colonies exported scarce resources (raw
materials) and imported manufactured goods from the colonial country (Brett et al., 2005).
South Africa was no exception to this process and practice. In a bid to study the
diversification ofthe local economy of Ulundi, this research advocates for strategies that seek
to promote the processing of local primary products for export. This approach is thought to
improve the economic outlook of Ulundi as more jobs may be created. In contrast to the
modern classical approach, this study envisages that more locally processed products would
augment job creation, improve local economic outlook and better the quality of life of the
people ofUlundi.
3.3.2 The Rostow model
The growth model ofRostow developed in the 1950s and is made up of linear stages (Refer to
Figure 3.2). In this model Rostow suggested that all industrializing countries had to pass
through a number ofdevelopment stages. As shown in Figure 3.2 below these stages were the
traditional society, pre-conditions for take-off, the take-off, drive for maturity and the age of
mass consumption. The model was based on observations of how developed countries had
moved from being agricultural economies to industrial and mass consumption economies.
Rostow believed that developing countries were either in the traditional or pre-conditions for
take-off phase of development. The history of developed countries suggests a common
pattern of structural change [\I ww.tutor2u.netleconomics.contentlde\ elopmenr, (2007)]. On
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