Transcript Development2_2010_student

Chapter 9
“Part 2 - Development”
There is a correlation between Development and
Gender Inequality
•Remember GDI and GEM from Part 1 of the Development
slide show.
•GDI is similar to HDI, but for women.
•Eg. Iran and Mexico have a similar HDI (Mexico is a little
higher) and have the same amount of youth in school but
Mexico has a much higher GDI because both boys and
girls have equal access to education.
•Norway has the highest GDI at .941 – Canada is just
below this at .938
•High GDI – Both men and women have achieved a high
level of development
•Low GDI – women have a low level of development
compared to men
•Average income of women is lower than males
everywhere in the world – Economic Indicator
•60 women to every 100 men attend secondary school in
LDCs – Social Indicator
•99 women to every 100 men in MDCs – Social Indicator
•Demographic Indicators are different – Females live longer
than males in MDCs. It is about the same in LDCs
•In both MDCs and LDCs fewer women than men hold
positions of economic and political power – GEM
•Northern Europe is high in women with high incomes and
professional jobs
•North America is high in women in managerial and elected
jobs
•Population Growth is directly related to the status of women
Let’s analyze some slides
Gender-Related Development Index
(GDI)
The GDI combines four measures of development, reduced by the degree of
disparity between males and females.
Gender Differences in School
Enrollment
As many or more girls than boys are enrolled in school in more developed
countries, but fewer girls than boys are enrolled in many LDCs.
Female Literacy Rates
Female literacy is lower than male literacy (Fig. 9-13b) in many LDCs, with significant
gender gaps in parts of the Middle East, Africa, and South Asia.
Male Literacy Rates
There is a gap in literacy rates between MDCs and LDCs as well as between men and
women in many LDCs.
Life Expectancy and Gender
Women’s life expectancy is several years longer than men’s in MDCs, but only slightly
longer in many LDCs.
Female–Male Income Differences
Women’s income is lower than men’s in all countries, but the gender gap is
especially high in parts of the Middle East, South Asia, and Latin America.
Stages of Development
Countries go through economic and
social stages of development. For
example if a country’s economy is
enhanced, the population’s standard of
living is also enhanced, education and
income will also rise and according to
the Demographic Transition (Chapter 2
on Population) their birth rates should
decrease and so on.
The Industrial Revolution created a huge
transformation, but only in countries in Europe
and North America. Their economies moved
towards ‘Industrialization’. Not only did Europe
and North America go through social and
economic change, so did other parts of the
world, the parts that had the resources to fuel
this industrialization. The countries that could
not fuel industrialization were left behind.
From this point on Rich and Poor countries
began to emerge.
When we think of Developed (MDC) we think of:
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•Today there is a large gap between LDCs and
MDCs
•Close this gap by improving the economic,
social and demographic indicators that we
discussed
•1/5 of the world lives in MDCs but consume 4/5
of the resources – Ecological Footprint
•Eg. Europeans spend $11 billion on ice cream
each year. It costs $9 billion to supply 2 billion
people with toilets that they need – make sense?
The poorer countries are designated; Developing
or less developed or LDCs (Less Developed
Countries). These terms suggest that in order to
reach the Developed stage they have to pass
through other stages in order to be like Europe or
North America.
There are a number of theories that try to illustrate
the road to development:
The Modernization Theory (the stages to economic
growth) by W.W. Rostow
Stage 1, the traditional society:…
Stage 2, preconditions for takeoff:…
Stage 3, the takeoff:…
Stage 4, the drive to maturity:…
Stage 5, the age of high mass consumption:…
Countries can skip a stage or even go back a stage
or two – depending on economic conditions.
The above is a theory created by someone from a
rich country, it is a capitalist point of view. The
developing countries found it hard to reach the latter
stages. Brazil and Mexico borrowed lots of money to
create capital but of course they fell into debt. Their
debt led to economic hardship. They became rich in
human resources but the creation of wealth and
entrepreneurs did not happen.
Often the capital for the developing world’s business
remains in the hands of the developed world.
Multinational companies invest in the businesses of
the developing countries, but the profits go back to
the developed countries.
Europe, the US and Japan did it this way so could
other countries.
Globalization could help bring in money and get
things started.
LDCs do have raw materials and now that most are
independent (no longer colonies) they can generate
money with these raw materials
Oil rich countries used money to fund development
but their treatment of women and religious
fundamentalism have held overall development
back.
Levels of Economic Development
5. Age of high mass
consumption
4. Drive to maturity
2. Preconditions for
takeoff
3. Takeoff
1. Traditional
Society
Time
Time
Levels of Economic Development
Core and Periphery Theory by Immanuel
Wallerstein
Wallerstein stated that the existing world economy
is based on capital that existed since the time
period of 1450 to 1670. He states that countries
centered in Western Europe formed an economic
“Core” around which the development of the rest of
the world – the “Periphery” – took place. …
The “periphery” included Asia, Africa, Eastern Europe,
and Latin America.
Side note: Canada calls its’ core the Heartland and the
Periphery is called the Hinterland. The Windsor to Quebec
corridor is Canada’s heartland and the rest of Canada can be
considered the hinterland. Countries and even regions in
countries can have their own core and peripheries. The
meaning of Heartland is even different in the US.
Wallerstein suggests that there are four categories into
which each region of the world may be placed:
Core, Semi-periphery, Periphery, External
1. Core:
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2. Semi-Periphery:
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3. Periphery:
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4. External:
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-Today the core countries can consist of North
America (Canada and the US.). Interesting but
in the early 1900’s Canada was considered a
Semi-Periphery country.
- The Semi-Periphery countries today are
Eastern Europe including Russia and China
and India and Malaysia.
- The Periphery countries include most of
Africa, except South Africa (Semi-Periphery),
Central Asia (Middle East, Turkey, Pakistan,
Afghanistan, Kazakhstan and South-East Asia
(Burma, Thailand, Cambodia)
Wallerstein has noticed a change. Countries that
are rapidly developing and industrializing are
creating their own cores.
A good example is East Asia. The strong These four are called:
the Fourand
Asian
economies of South Korea, Singapore, Taiwan
Dragons - Tigers
Hong Kong (now part of China) have joined Japan
to form a core of trade and centre of banking and
investment. Emerging cores can challenge the
traditional cores (Europe and North America) but
usually these cores remain regional.
The theory suggest that the traditional cores will
continue to dominate the periphery regions of the
world. Latin America will be dominated by North
America and Africa will be dominated by Europe.
Cores may shift in size and even multiply but their
function will remain the same.
Wallerstein sees that the present capitalist world
economy will be detrimental to a large proportion of
the world’s population. He sees the disparities of the
world increasing. The gap between rich and poor
serves the economic needs of the rich. The rich need
to exploit the low wages of the poor. This is the only
way Multi-nationals can make money.
The rich still control the world economy. The
peripheral countries lack the infrastructure to
compete.
According to the UNDP (United Nations Development
Program) the gap between rich and poor has widened
from 30:1 in 1960 to 60:1 in 1990.
Core and Periphery in World Economy
another look
This north polar projection of the world shows that most of the MDCs are in a
core area north of 30° N latitude. The LDCs are mostly on the periphery of this
map.
Develop through Self Sufficiency
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Problems:
• Inefficiency – …
•Large Bureaucracy – …
Development Through International Trade
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Problems:
• Uneven resource distribution – …
• Market Stagnation – …
• Increased dependence on MDCs – …
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• WTO – World Trade Organization – …
• The WTO is all about Globalization – …
• Globalization Good – …
• Globalization Good – …
• Globalization Bad – …
• Globalization Bad – …
• A word about – Trans-nationals – “A company that locates
and does business in counties other than the one it has its
headquarters in”
Transnational corporation are aggressive in finding low-cost
labour, especially in LDCs.
• New international division of labour
• LDCs need money to get started.
• Two ways: …
• Problem: …
• Brazil and Mexico have defaulted in payments
• Sometimes the World Bank or the IMF tells these
countries to adopt a “Structural Adjustment Program” –
The countries are told to raise taxes, sell companies or
change economy or start making products that MDCs
want.
Vocabulary List
Unit VI. Industrialization and Development—Basic Vocabulary and
Concepts
Development
Agricultural labor force
Calorie consumption
Core-periphery model
Cultural convergence
Dependency theory
Development
Energy consumption
Foreign direct investment
Gender
Gross domestic product (GDP)
Gross national product (GNP)
Human Development Index
Levels of development
Measures of development
Neocolonialism
Physical Quality of Life Index
Purchasing power parity
Rostow, W. W.
“Stages of Growth” model
Technology gap
Technology transfer
Third World
World Systems Theory
The End!