Transcript Development Part 1 PPT

Development
Chapter 9
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.
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.
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.
Concepts & Approaches
• Gross National Product-all goods & services produced
by the economy per year both inside & outside the nation
• Gross Domestic Product-all goods & services produced
by the economy per year with in the nation
• GNP or GDP does not reflect regional variations-it also
doesn’t count the informal economy-black market, illegal
drug trade & underground economy
• Developed Countries-(DCs) have high levels of
industrialization, urbanization & standard of living
• Underdeveloped (UDCs) or Developing Countries are
moving toward developed status-not as highly
industrialized or urbanized with a lower standard of living
Measures of Development
• National Product per person-the total
income divided by total populationCore (developed) about $25,000 while
Periphery (developing) as low as $100.
• Occupational Structure of the Labor
Force-% of workers in each sectionhigh number in agriculture signals low
development
• Consumption of Energy per Personthe greater the use of electricity-the
higher the development
• Productivity per Worker-production
of all goods divided by the total labor
force
Measures of Development
• Transportation & Communication per
person-railroad, road miles and airline
connections per person as well as
telephone, radio, television or computers
per person.
• Consumption of Manufactured Metal
per Person-the greater the amount of
steel, iron, copper, aluminum etc. used per
person
• Other Rates–
–
–
–
Literacy
Caloric intake
% of income spent on food
Amount of savings per person
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.
Core-Periphery Model
• Immanuel Wallerstein proposed the World Systems
Theory with promoted the Core-Periphery concept.
• Unlike the term-developed and developing, the CorePeriphery Model does not imply that change will occur.
• Core-Periphery regionalism got its start during the period
of colonialism was re-enforced by the Industrial Rev. and
continues in the age of globalization.
Core-Periphery Model
• New approach to developed or
underdeveloped idea
• Core-Periphery also used in a
political context
• Core-the nations with a high
level of prosperity with
dominant economies globally
• Periphery-poor nations that
are dependent on the core as
markets for raw materials and
sources of technology
• Semi-Periphery-better off
than periphery, but still
dominated by the core to some
degree
Global Economic Disparities
• Much of the disparity
existed as Colonialism was
established by European
nations.
• The Industrial Revolution
increased the need for raw
materials and markets for
finished goods.
• Neo-colonialism refers to
the economic dominance of
the core over the former
colonial nations-economic
rather than political control
Conditions in the Periphery
• High birth rates, moderate death rates and low life
expectancy
• High infant mortality rates-large population under age 15
yrs.
• Poor health care & shortage of doctors-disease is common
• Poor sanitation and lack of fresh, clean water
• Poor nutrition and protein deficiency
• Low per capita income with many women & children doing
hard manual labor
• High illiteracy rate with low levels of education
• Great disparity between rich & poor, small middle class
• Urban areas overcrowded, lack of services, rapid urban
migration
• Subsistence farming on small landholdings
Conditions That Hamper Development
• Political instability and
corruption
• Exploitation of natural
resources and workers
regardless of consequences
• Dependence of agricultural
products or primary
products such as mineral
resources
• Misuse of foreign
assistance
• Misguided priorities
• Cultural resistance to
modernization
Costs of Economic Development
• Industrialization
– Export Processing Zones (EPZs), maquiladoras,
and special economic zones (SEZs).
• Agriculture
– Subsistence and agricultural conglomerates
– Desertification-especially in Africa
– Soil erosion
• Tourism-may have serious negative
consequences
– Use of scarce commodities
– Foreign investors make the profit
Tourism: Boom or Bust
• Tourism contributes little to
a country’s development &
may have serious negative
effects on the culture
• Hotels & other facilities are
often owned by transnational
corporations which take the
profits out of the country
• Tourism jobs can be
demeaning & dehumanizing
or even insulting
• Tourism jobs pay minimal
wages for menial tasks
Tourism: Boom or Bust
• Profits are reinvested in
airports, cruise ship ports &
other infrastructure to serve
tourists
• Tourists use up valuable
resources such as food & fresh
water
• Tourism can debase or change a
local culture
• An invasion by wealthy
foreigners can breed hostility
and resentment
• Harsh contrast between
gleaming modern tourist hotels
and poor workers housing
Levels of Industrialization
• Some countries like the
Soviet Union industrialized
quickly with central
planning-Stalin’s Five Year
Plans
• All decisions were made in
Moscow-no local control
• Focus on heavy industrysteel, electrical, chemical,
military hardware
• Little emphasis on consumer
goods
• Little concern for worker
safety or environmental
problems