Transcript Development

Development
Chapter 10
Key Question:
How do you Define and
Measure Development?
• Awesome
Development
“The process of improving the material
conditions of people through diffusion of
knowledge and technology.”
• Every country lies at some point along the
development continuum.
– MDC Developed Countries
– LDC  Developing Countries
• list
Measuring Development
Gross National Product (GNP)
• Measure of the total value
of the officially recorded
goods and services
produced by the citizens
and corporations of a
country in a given year.
Includes things produced
inside and outside a
country’s territory.
• Includes things that are
produced inside and
outside a country’s
territory.
Measuring Development
Gross Domestic Product
(GDP)
• Measure of the total value
of the officially recorded
goods and services
produced by the citizens
and corporations of a
country in a given year.
• Only includes goods and
services produced within a
country
Measuring Development
Gross National Income (GNI)
• Measure of the monetary
worth of what is produced
within a country plus
income received from
investments outside the
country.
• ** Most common
measurement used today.
• Measured per capita:
– US $41,950
– Japan $31,410
– Nigeria $1040
Issues with Measuring
Economic Development
• All measurements count the:
– Formal Economy – the legal economy that
governments tax and monitor.
• All measurements do not count the:
– Informal Economy – the illegal or uncounted
economy that governments do not tax or keep
track of.
Other Ways of
Measuring Development
• Occupational Structure of the Labor Force
• Productivity per Worker
• Transportation and Communications
Facilities per Person
• Dependency Ratio
Differences in
Communications
Connectivity
Around the World
Dependency Ratio by Country, 2005
A measure of the number of people under the age of 15 and
over the age of 65 that depends on each working-age adult.
What does Development Mean?
• Development implies “progress”
– Progress in what?
• Literacy, communications, etc.
– Do all cultures view development the same
way?
– Do all cultures “value” the same kinds of
development?
Development Models
Modernization Model
Walt Rostow’s model assumes all countries follow a similar
path to development or modernization, advancing through
five stages of development, climbing a ladder of
development.
1.
traditional (subsistence farming)
2.
preconditions of takeoff
3.
takeoff (rapid economic growth)
4.
drive to maturity (workers are more skilled/educated)
5.
high mass consumption (secondary industry)
Some would now add a sixth stage:
“Post-Industrial”
Rostow’s Ladder of Development
Is the idea of economic development inherently
Western? If the West (North America and
Europe) were not encouraging the “developing
world” to “develop,” how would people in the
regions of the “developing world” think about
their own economies?
Key Question:
How does Geography affect
Development?
Dependency Theory
The political and economic relationships between countries
and regions of the world control and limit the economic
development possibilities of poorer areas.
-- Economic structures make poorer countries
dependent on wealthier countries.
-- Little hope for economic prosperity in poorer
countries.
-Views the world as countries that work as
interlocking parts
Neocolonialism
• The periphery takes a dependent role in the
world economy
• It is underdeveloped because of uneven
trade
• Structuralists find this difficult to change
Dollarization –
Abandoning the local currency of a country and adopting
the dollar as the local currency.
El Salvador went through dollarization in 2001
Geography and Context
* Cannot simply study what is produced.
* Need to examine how and where it is produced
and where the production is on the commodity
chain.
* Examine commodity chains and look for the
kinds of economic processes operating at each
link in the chain.
Commodity Chain
Series of links
connecting the
many places of
production and
distribution and
resulting in a
commodity that
is then
exchanged on
the world
market.
How processes operated at each step in the commodity
chain that produced the dolomite stone for this fireplace?
Wallerstein’s Three Tier Structure
Core
Periphery
Processes that incorporate higher
levels of education, higher
salaries, and more technology
* Generate more wealth in the world
economy
Processes that incorporate lower
levels of education, lower
salaries, and less technology
* Generate less wealth in the world
economy
Semi-periphery
Places where core and periphery
processes are both occurring.
Places that are exploited by the
core but then exploit the
periphery.
* Serves as a buffer between core
and periphery
Compare and contrast Rostow’s ladder of
development with Wallerstein’s three-tier
structure of the world economy.
Key Question:
What are the Barriers
to and the Costs of
Economic Development?
Millennium Development goals
• Key issues that need to be resolved in order
for economic development to be achieved
– Poverty, gender equality, etc.
– List on page 328
Barriers to Economic Development
• Low Levels of Social Welfare
– Trafficking
• Foreign Debt
– Structural adjustment loans
• Political Instability
• Widespread Disease
– Malaria
Foreign Debt Obligations
Total interest payments compared to the export of
goods and services.
Foreign Debt Obligations
Foreign Debt and Economic Collapse
in Buenos Aires, Argentina, 2001
Widespread Disease
• Malaria kills 150,000 children in the global
periphery each month.
Tamolo, India
This baby sleeps
under a mosquito
net distributed to
villagers by
UNICEF workers.
Global Distribution of
Malaria Transmission Risk
Costs of Economic Development
• Industrialization
– Export Processing Zones (EPZs) – Offer
favorable tax regulations to foreign firms
• maquiladoras,
– special economic zones (SEZs) – less
environmental regulations and taxes
• Agriculture
– Desertification – destroying livestock
• Tourism
Export Processing Zones
Areas Threatened by Desertification
Think of a trip you have made to a poorer
area of the country or a poorer region of
the world. Describe how your experience in
the place as a tourist was fundamentally
different from the everyday lives of the
people who live in the place.
Key Question:
Why do Countries
experience Uneven
Development within the State?
Uneven Development
• Peripheral countries
– Marked by severe disparities  Cities and Rural
Areas
– Hurricane Katrina vs. WWII Europe
How Government Policies
Affect Development
• Governments
– get involved in world markets
• WTO, ILO, etc. Decide how producers exchange on
the global market
– price commodities (gas)
– shape laws to affect production (Quota Market)
• T-shirt: Texas  China
– focus foreign investment in certain places
Islands of Development
• Created by
Governments and
Corporations can
• Places within a region or
country where foreign
investment, jobs, and
infrastructure are
concentrated.
• Capital city First created
by colonists in periphery
• Some have moved
Government-created Island of Development
Malaysian government built a new, ultramodern capital at
Putrjaya to symbolize the country’s rapid economic growth.
Corporate-created Island of Development
The global oil industry has created the entire city of
Port Gentile, Gabon to extract Gabon’s oil resources.
Nongovernmental
Organizations (NGOs)
entities that operate independent of state and local
governments, typically, NGOs are non-profit
organizations. Each NGO has its own focus/set of goals.
List
Microcredit program:
loans given to poor
people, particularly
women, to
encourage
development of
small businesses.
How do actors in nongovernmental organizations (NGOs)
mobilize political change?
An Indonesian woman (on left) who migrated to Saudi Arabia as a
guest worker talks with an Indonesian activist (on right) who works to
defend migrant workers’ rights.
Take an item of clothing out of your closet, and
using the Internet, try to trace the commodity
chain of production. What steps did the item go
through before reaching you? Consider whether
core or peripheral processes were operating at
each step and consider the roles governments
and international political regimes played along
each step.