Text 1Traditional economic development theory has maintained that emerging economies progress through identifiable phases: subsistence agriculture giv...
GMAT Craft and Structure : (Structure) Questions
Text 1
Traditional economic development theory has maintained that emerging economies progress through identifiable phases: subsistence agriculture gives way to industrialization, which eventually transitions into service-based economies. This model, dominant since the mid-20th century, suggests that technological advancement and capital accumulation drive nations along a predictable developmental trajectory from low-income to high-income status.
Text 2
Development economist Ha-Joon Chang argues that this sequential model oversimplifies economic reality. In his analysis of East Asian economies, Chang demonstrates that successful developing nations have simultaneously pursued multiple strategies—maintaining agricultural productivity while building industrial capacity and developing service sectors. Rather than following predetermined stages, these economies have adapted their approaches based on global conditions and domestic capabilities.
Based on the texts, how would Chang (Text 2) most likely respond to the traditional economic development theory presented in Text 1?
By challenging the assumption that economic progress follows a predictable sequence of developmental phases
By acknowledging that technological advancement drives development but arguing for the importance of service sectors
By conceding that capital accumulation is essential while asserting that agricultural productivity should be maintained longer
By disputing the significance of industrialization in the transition from low-income to high-income status
Step 1: Decode and Map the Passage
Part A: Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| Traditional economic development theory has maintained that emerging economies progress through identifiable phases: subsistence agriculture gives way to industrialization, which eventually transitions into service-based economies. |
|
| This model, dominant since the mid-20th century, suggests that technological advancement and capital accumulation drive nations along a predictable developmental trajectory from low-income to high-income status. |
|
| Development economist Ha-Joon Chang argues that this sequential model oversimplifies economic reality. |
|
| In his analysis of East Asian economies, Chang demonstrates that successful developing nations have simultaneously pursued multiple strategies—maintaining agricultural productivity while building industrial capacity and developing service sectors. |
|
| Rather than following predetermined stages, these economies have adapted their approaches based on global conditions and domestic capabilities. |
|
Part B: Main Point and Argument Flow
Main Point: Chang challenges the traditional economic development theory by arguing that successful economies don't follow predetermined sequential phases but instead pursue multiple strategies simultaneously and adapt based on conditions.
Argument Flow: Text 1 establishes the dominant traditional theory that economies develop through predictable sequential phases driven by technology and capital accumulation. Text 2 then presents Chang's critique, showing through East Asian examples that this sequential model oversimplifies reality—successful economies actually pursue multiple development strategies simultaneously rather than following predetermined stages.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- Chang's main criticism is that the traditional sequential model (agriculture → industry → services) oversimplifies economic reality
- His key evidence shows that successful economies don't wait for one phase to end before starting the next—they do multiple things at once and adapt based on their specific circumstances rather than following a predetermined path
- The right answer should capture Chang's fundamental disagreement with the idea that economic development follows a predictable, sequential pattern
By challenging the assumption that economic progress follows a predictable sequence of developmental phases
- This directly captures Chang's main argument that the sequential phases model doesn't match economic reality
- Matches our prethinking perfectly—Chang shows economies don't follow predictable sequence but instead adapt and pursue multiple strategies simultaneously
By acknowledging that technological advancement drives development but arguing for the importance of service sectors
- Chang doesn't specifically argue for the importance of service sectors—he argues that all sectors can be developed simultaneously
- This misses Chang's main point about challenging the sequential model itself
By conceding that capital accumulation is essential while asserting that agricultural productivity should be maintained longer
- While Chang does mention maintaining agricultural productivity, this choice suggests he accepts the traditional model's emphasis on capital accumulation
- Chang's point isn't about timing agriculture longer—it's that the entire sequential framework is wrong
By disputing the significance of industrialization in the transition from low-income to high-income status
- Chang doesn't dispute industrialization's significance—he includes building industrial capacity as part of successful strategies
- Chang's argument is about simultaneous development, not questioning industrialization's importance