Cumulative Causation Theory – By Gunnar Myrdal

Let’s begin with the name itself: “Cumulative Causation Theory.” Break the term into two parts:

• Cumulative means something that builds up gradually over time.
• Causation implies cause-effect relationships.

So, this theory tells us how development and underdevelopment are not just accidental, but rather, the result of a chain of cause-and-effect processes that reinforce themselves over time.

👨‍🏫 The Scholar Behind the Theory

The theory was proposed by Gunnar Myrdal, a Swedish economist – a Nobel Laureate – who was among the first Western thinkers to warn the world that if we ignore regional inequalities, it won’t just be an economic problem, but can become a political crisis too.

He presented this theory in his famous book:
📘 “Economic Theory and Underdeveloped Regions.”

🧩 The Core Idea – Spread and Backwash Effects

Myrdal gave us the idea of two forces that operate simultaneously in a developing economy:

✅ (A) Spread Effects

These are the positive effects — the benefits of economic growth that spread from developed regions to underdeveloped ones.

For example:

• A big city may create demand for agricultural goods from nearby villages.
• It might lead to inflow of technology or investment in surrounding areas.
• Over time, this can kickstart development in backward regions.

👉 These are centrifugal forces, pushing development outward.

❌ (B) Backwash Effects

These are the negative effects — development in one region may suck away resources from underdeveloped areas.

For example:

• Talented workers migrate to urban centers.
• Capital investment flows into already prosperous areas.
• Local goods from rural areas are consumed in cities, but the profits don’t return.

👉 These are centripetal forces, pulling everything inward toward the developed regions.

🧲 How Regional Imbalances Occur – A Vicious Cycle

According to Myrdal, this is not a one-time event — it is cumulative. That means once a region starts developing, it attracts more labour, capital, firms, and services. This causes even more growth in that area.

But at the same time, the lagging regions keep losing their resources and opportunities.

This creates a vicious cycle:

• 🌆 Developed region → Keeps developing → Pulls in more resources
• 🌄 Backward region → Keeps lagging → Gets drained of its talent and capital

Myrdal says, had these “growth points” (i.e., rapidly developing regions) never emerged, development could have been more evenly spread.

🔁 The Dynamic Process – Not Just Static Geography

It’s important to note that Myrdal’s theory sees development and underdevelopment as interconnected.
It is not that one place is poor just because it lacks something — it is also because another place is pulling away its resources.

This cumulative causation means that inequality breeds more inequality — unless conscious policy measures are taken to strengthen spread effects and weaken backwash effects.

🗺️ Relevance in Regional Planning

In the Indian context, you can clearly see:

• Delhi NCR, Mumbai, Bengaluru – These are growth poles.
• But their growth draws in resources from places like Bihar, Jharkhand, Northeast, etc.

Thus, planning must not just focus on developing already developed areas, but strategically invest in backward regions to reverse the cycle.

✅ In Summary:

Concept	Explanation
Theory	Cumulative Causation Theory
Proponent	Gunnar Myrdal
Core Mechanism	Spread Effects (positive) vs. Backwash Effects (negative)
Impact	Development in one region can worsen underdevelopment in others
Solution	Balanced Regional Planning to enhance spread and reduce backwash