Transcript International Development

• Meaning of Development
• Measuring Development
• Location of More and Less Developed Countries
• Strategies for International Development
International
Development
Chapter 9
What Do We Mean By
Development?
 The three objectives of development



increases in availability and improvements
in the distribution of food, shelter, health,
protection, etc.
improvements in ‘levels of living,’ including
higher incomes, more jobs, better
education, etc.
expansions in the range of economic and
social choices available to individuals and
nations
Measuring Development
 Economic Indicators



Gross Domestic Product (GDP)
Types of Jobs (Economic Sectors)
Natural Resources
• Deemed essential, but Japan?
• Some more important than others.

Consumer Goods (Nonessentials)
• Motor Vehicles, Telephones, Televisions
New International Division of
Labor
USA
Norway
Canada
France
Iceland
Netherlands
China
Albania
Uzbekistan
Ukraine
Turkmenistan
Pakistan
India
Burkina Faso
Niger
Burundi
Sierra Leone
Mali
All developing
countries
Least
developed
countries
Industrial
countries
World
Life
Adult
GDP
expectancy literacy rate per capita
76.4
99
26977
77.6
99
22427
79.1
99
21916
78.7
99
21176
79.2
99
21064
77.5
99
19876
69.2
81.5
2935
70.6
85
2853
67.5
99
2376
68.5
98
2361
64.9
98
2345
62.8
37.8
2209
61.6
52
1422
46.3
19.2
784
47.5
13.6
765
44.5
35.3
637
34.7
31.4
625
47
31
565
Human
development
index (HDI)
0.943
0.943
0.96
0.946
0.942
0.941
0.65
0.656
0.659
0.665
0.66
0.453
0.451
0.219
0.207
0.241
0.185
0.236
62.2
70.44
3068
0.5864
51.16
49.2
1008
0.3439
74.17
63.62
98.63
77.58
16337
5990
0.9114
0.7715
Gross Domestic Product
(GDP)
 Total value of goods
and services produced
in a country each year,
usually stated in per
capita terms.
 Gap Between MDCs
and LDCs growing

Last two decades:
GDP up $10,000 in
MDCs compared to
$200 in LDCs. Many
in Africa and Latin
America actually
decreased!
 Measures average, not
distribution of wealth
Source: U.N. World Development
Report, 1998
Measuring Development
 Social Indicators


Education and Literacy
Health and Welfare
Measuring Development
 Social Indicators


Education and Literacy
Health and Welfare
Measuring Development
 Demographic Indicators



Life Expectancy (37 - 80 years)
Infant Mortality (<10 - >100 per thousand)
Natural Increase (0 - 4.7 %)
Life Expectancy
Nation
Singapore
Australia
Jordan
Luxembourg
United States
Botswana
Angola
Zimbabwe
Malawi
Mozambique
Zambia
World
Life
Life
Expectancy Expectancy for
for everyone Males
80.1
77.1
79.8
76.9
77.4
74.9
77.1
73.8
77.1
74.2
39.3
38.6
38.3
37.1
37.8
39.2
37.6
37.2
37.5
38.3
37.2
37.1
64
62
Life
Expectancy Years women
for
expected to
Females
outlive men
83.2
6.1
82.7
5.8
79.9
5
80.6
6.8
79.9
5.7
39.9
1.3
39.6
2.5
36.3
-2.8
38
0.8
36.7
-1.7
37.4
0.3
65
3
Source: CIA World Factbook, 2001
Measuring Development
Human Development Index (HDI):
•Economic - GDP
•Social - literacy and education
•Demographic - life expectancy
* The single most important geographic fact
of development is its striking unevenness.
* Read pages 293 - 301 carefully. You’re expected to
be familiar with the information for each region.
Location of More and Less
Developed Countries
Development generally reflects a North-South split in
the world.
Institutions of International
Development
 United Nations
- formed in 1945 to promote peace.
189 current members.
 World Bank -
financial assistance and loans. Owned by
189 United Nations members.
 International Monetary Fund -
arm of U.N. that
surveys and oversees international money exchange to
prevent monetary crises. Also provides loans and training
to help countries with balance of payment problems.
 Non-Governmental Organizations (NGOs)
World Watch, Human Rights Watch, World Commission on
Dams, many others.
Strategies for International
Development
 Self-Sufficiency Model
 International Trade Model (Economic
Growth)

Rostow’s Model
 Basic Needs Model/Appropriate Technology
Model
 Revolutionary/Radical Reform Model
Rostow’s Model
American economist and political advisor during 1950s developed
model, arguing that each country passes through five stages from
traditional society to high mass consumption.
TRADITIONAL SOCIETY
PRECONDITIONS FOR TAKE-OFF - elite group
initiates economic innovations, leads to productivity.
TAKE-OFF - rapid growth in a number of specific
economic activities, technical advances.
DRIVE TO MATURITY - Modern technology diffuses
to a wide variety of industries
AGE OF MASS CONSUMPTION - economy shifts
from heavy industry to consumer goods.
Problem’s with Rostow’s Model and
the International Trade Approach
•Developmentalism: the idea that every country and
region will eventually make economic progress toward “high
mass consumption” provided that they compete to the best of
their ability. This is not likely and is hard on the planet.
• Increased dependence on MDCs and their markets.
Undue influence on many global policies, including those of
the U.N. and World Bank.
•Market Stagnation: the MDCs have very limited
population growth. Markets for low-cost manufactured goods
grow slowly today. Undervalues the obstacles and competitive
disadvantages faced by late starters versus those in the Core.
Other Problems in
International Development
 High Debt Countries
 Hostility Regarding World Bank and IMF Structural
Adjustment Programs

IMF “Free Market” Requirements for Loans and
Assistance
 Warfare and Instability Limit Foreign Investment
 Core-Periphery Relationships May Be Necessary for
Economic Growth


Within Countries
Globally
High Debt Countries
• The developing world now spends $13 on debt repayment for every $1
it receives in grants.
• For the poorest countries (approximately 60), $550 billion has been paid
in both principal and interest over the last three decades, on $540bn of
loans, and yet there is still a $523 billion dollar debt burden.
Source: Debt relief hope brings out the critics, Jorn Madslien, BBC, June 29, 2005
Case Study
High Debt Countries
• June, 2005 – G8 Nations (eight wealthiest democracies) agreed
to immediately cancel debt of 18 poorest nations and extend this
to 20 more if they agree to IMF “structural adjustment” and
corruption controls. Total immediate cost to the G8: $40.
• Relief is spread over 40 years and effects only a handful of
countries.
• Interesting Iraq’s $30 billion debt was entirely cancelled in 2005
with little debate.
• However, G8 Nations spend $350 billion on farm subsidies and
more than $700 billion on military expenditures.
The G8 Nations include: U.S., France, Germany, Italy, Japan,
Russia, Canada, European Union (EU)
Warfare and Instability Limit
Foreign Investment
Progress
Towards
Development
NIR = Natural Increase Rate
IMR = Infant Mortality Rate