Transcript What is Development?

November 18, 2013
Ch. 9 Key Issue 1
• BW- What is Development??????
• Upon answering question, students will
review and watch- “The Science of
Overpopulation”
-How does this affect development????
VACATION
• Where would we like to go on vacation?
– Preferably a popular, yet less-developed destination
• What makes this an attractive destination?
– Amenities, climate, scenery, food/lodging $
• Are the people who live in this place year-round fortunate to
live at such a desirable location?
• What do the local people depend on for income?
• What do the people in this country who do not live in a tourist
area do for work?
• Can any of these people who want to vacation in the US
come? Why/why not?
A world divided
• The world is divided by relatively rich and relatively poor
countries
• We will try to understand the reasons for this division and
learn what can be done about it
• Caribbean island vacation
– Who works at the resorts?
– What is life like surrounding the resort?
– How would you feel?
What is Development?
November 18, 2013
The process of improving the
material conditions of people
through the diffusion of knowledge
and technology
More developed countries (MDCs)
AKA developed countries
Lesser developed countries (LDCs)
AKA emerging or developing countries
Course Outline
• VI.Industrialization and Economic Development 13–
17%
• A.Growth and diffusion of industrialization
• 1.The changing roles of energy and technology
• 2.Industrial Revolution
• 3.Evolution of economic cores and peripheries
• 4.Geographic critiques of models of economic
localization
• (i.e., bid rent, comparative costs of transportation),
industrial
• location, economic development, and world systems
• Content Area section)
• B.Contemporary patterns and impacts of
industrialization and
• development
• 1.Spatial organization of the world economy
• 2.Variations in levels of development
• 3.Deindustrialization and economic restructuring
• 4.Globalization and international division of labor
• 5.Natural resources and environmental concerns
• 6.Sustainable development
• 7.Local development initiatives: government policies
• 8.Women in development
ECONOMIC INDICATORS OF
DEVELOPMENT
• 5 factors: Most important GDP
– Economic structure, worker productivity, access to raw
materials, and availability of consumer goods
GDP PER CAPITA
• MDC: $15 per hour
• LDC: $2 per hour
• GDP: value of the total output of goods &
services produced in a country
– Divide GDP by population = contribution made by the
ave individual toward generating a countries wealth in
a year
© 2011 Pearson Education, Inc.
Types of jobs
• Jobs fall into 3 categories:
– Primary, Secondary, Tertiary
• Comparing types of economic activities in MDC/LDC
– Look at the % of people working in each category
• Primary sector: directly extract materials from E
– Via farming, mining, fishing, foresting
• Secondary: process, transform, and assemble
raw materials into useful products
• Tertiary: provision of goods in exchange of $
– Retail, banking, law, education, & gov’t
© 2011 Pearson Education, Inc.
• Economic indicators
of development
Economic activities:
• Primary sector
• Secondary sector
• Tertiary sector:
Quaternary, Quinary
Productivity
• Productivity: value of a product compared to amount of
labor needed to make it
• Value added: gross value of the product – the cost of raw
materials and energy
– ~$80k US, $70k Japan, $1k China, $500 India
• Workers in MDCs produce more w/ less effort
– More machines, tools, equipment, etc.
– MDC workers are more productive
Raw materials
• Development requires raw materials & energy sources
– Iron Ore and Coal help transform UK in late 18th C
– Resources depleted, est. colonies to import more
• Specific raw materials become important bring dvlpmt
– If an LDC has oil, they may develop to an MDC
• A country’s abundance of resources=chance of dvlpmt
• Exceptions to that rule
– Japan, Singapore, S.Korea, and Switzerland
– Success through world trade
Consumer goods
• MDC: goods & services devoted to transp & comm.
– Vehicles, phones, computers
– Helps provide access to jobs & spreads info
– More leisure activities available
• LDC: Not as concerned with tech. advances
– “Haves” and “Have nots”
– Spread from urban to rural
• Connecting MDCs and LDCs through technology
How is development measured?
• Social indicators of
development
– Education and
literacy
• The literacy
rate
– Health and
welfare
• Diet (adequate
calories)
• Access to
health care
How is development measured?
• Demographic
indicators of
development
– Life expectancy
• Babies born today in
MDCs have a life
expectancy in the 70s;
babies born in LDCs, in
the 60s
– Other demographic
indicators:
• Infant mortality
• Natural increase
• Crude birth rate
Education & Literacy
•
•
•
•
More developed=^quantity and quality the edu.
Quantity=ave # of school years attended
Quality=student/teacher ratio and literacy rate
Literacy rate: % of people who can read/write
– MDCs=98% LDC=60%
• MDC=10 years in school
– LDC=a few
• MDC: student/teacher ratio is 2x higher than LDC
Student-Teacher Ratios
Students per teacher, primary school level. Primary school teachers have much larger
class
sizes in LDCs than in MDCs, partly because of the large numbers of young people
Persons per Physician
There is a physician for every 500 or fewer people in most MDCs, while thousands of
people share a doctor on average in LDCs. Especially in rural areas.
Urban areas tend to be much better served.
Calories per Capita
Daily available calories per capita as percent of requirements. In MDCs, the average
person consumes one-third or more over the required average minimum,
which accounts for the obesity found in North America and some affluent
countries.
US RANKINGS
• 1st economically
• 17th in education
– 28th math
– 18th reading
– 22nd science
• 1st in crime
– 1st incarceration
– 24th homicide
• 1st obesity
• 19th democratic freedoms
November 19, 2013
MDC v. LDC- Activity
• Students will be placed in areas of the room labeled
MDC and LDC based on accurate world population
percentages.
• As a class determine the percentage of the world’s
population that lives in each section. Students will be
based on an individual country. For example, 2 of
the 5 students in MDC might be labeled U.S.A.
• Discuss results. Was the outcome what you
expected? Any surprises? What does it mean to be
developed as a country?
© 2011 Pearson Education, Inc.
Where are MDCs and LDCs Distributed?
• More developed regions
– North America and Europe
– Other MDCs with high HDI = Russia,
Japan, Australia, and New Zealand
• Less developed regions
– Latin America = highest HDI among LDCs
– Southwest Asia, Southeast Asia, Central
Asia = similar HDI
– South Asia and sub-Saharan Africa = low
levels of development
© 2011 Pearson Education, Inc.
Location of more/less developed
countries
• Countries are categorized into 9 regions
– Based on their development
– Japan and South Pacific aren’t part of the 9
• North-south Split
– Circle the earth at 30º
– Above 30º=MDC (for the most part) South=LDC
© 2011 Pearson Education, Inc.
More and Less Developed Regions
Figure 9-10
© 2011 Pearson Education, Inc.
Today in Class:
1. Students will color and label on maps, where
the MDCs and LDCs are located.
2. Students will work on worksheet, comparing
LDCs and MDCs.
© 2011 Pearson Education, Inc.
More Developed regions
ANGLO-AMERICA (HDI .94)
• USA/CANADA
– English 1st lang. & most adhere to
Christianity
– Some cultural tension (race and religion)
– Abundance of natural resources (decline
of manu)
– Leader in financial, mgmt, & high tech
services
– Big promoter and supplier of
entertainment/leisure
– World’s most important food exporter
© 2011 Pearson Education, Inc.
More developed regions
WESTERN EUROPE (HDI .93)
• Indo-European languages &
Christianity
– Conflict arise over cultural identities
– Competition among nationalities
causes WWI & WWII
– Influx of Muslims and Hindus spark
pop growth
– Highest level of development (exclude
S Italy, Portugal, Spain and Greece)
– Importers of food, energy minerals
– Worlds largest and richest economic
market
© 2011 Pearson Education, Inc.
More developed regions
EASTERN EUROPE (HDI .80)
• Only region to decline since UN created the index in ’90
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Declining to Latin American level (LDC) due to communism
“Iron Curtain” 15º E longitude
Initially mass increase in per capita GDP ($100s1000s)
Communism didn’t cater to poor/agricultural societies
• Gosplan: 5 year, 3 step economic plan
– 1st: heavy industry-iron, steel, machine tools, weapons
– 2nd: disperse production to the east (= development)
– 3rd: Locate manu facilities near resources, not markets
© 2011 Pearson Education, Inc.
Iron curtain
© 2011 Pearson Education, Inc.
More developed regions
EASTERN EUROPE (HDI .80)
• Abandon communist economic structure
– Outdated equip, import food, impossible targets,
– Lacked basic industry needs: clothes, cars, housing
• Eastern Countries bordering W Europe
– Easier transition to the market economy
© 2011 Pearson Education, Inc.
More developed regions
JAPAN (HDI .94)
• Remarkable development despite natural
resources
– A world leader in steel prod. yet imports all coal and
iron
– 1 asset: abundance of ppl willing to work for low
wages
• Sell product overseas for cheaper than domestic
co.
– THEN specialize in high-valued products: electronics
• Spend 2x more on R&D than the U.S.
– Rigorous edu & training programs for skilled labor
© 2011 Pearson Education, Inc.
More developed regions
SOUTH PACIFIC (HDI .87)
• High HDI but not as relative in global econ.
– Smaller pop
• Comparable to most other MDC HDIs
© 2011 Pearson Education, Inc.
Bellwork: 11/21
• What does Gender Inequality mean?
Today in Class:
• There will be a physical features map quiz of
Africa.
• Next, we will head to the computer lab to look
at HDI information.
11/22- Today in class
Students will work on HDI assignmentreferencing cia.gov.
Human Development Index: HDI
http://hdr.undp.org/en/statistics/hdi/
Human Development Index HDI
HDI only includes income from the formal market.
Reported to the government, pay taxes.
Formal Market: Ecuador
Informal Market: Ecuador
HDI does not include income from the informal market. Not reported to the
government, no taxes paid.
Formal Market: Brazil
Informal Market: Brazil
BELLWORK: 12/2
Students will watch TED TALK, what does the
Washing Machine symbolize?
http://www.gapminder.org/videos/hans-rosling-and-the-magicwashing-machine/
MODELS of DEVELOPMENT
ROSTOW and His Model
• The work of American Walt W. Rostow
• Rostow is an economic historian
• Countries can be placed in one of five
categories in terms of its stage of growth
• How do countries develop?
• If we can understand how development
occurs, strategies can be adopted to help
countries to develop
STUDENTS Will Create a Matrix of
Rostow’s Stages of Development
1.
•
Traditional Society
Characterised by
–
–
–
subsistence economy – output not traded or recorded
existence of barter
high levels of agriculture and labour intensive agriculture
2. Pre-conditions:
–
–
–
–
Development of mining industries
Increase in capital use in agriculture
Necessity of external funding
Some growth in savings and investment
3. Take off:
–
–
–
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Increasing industrialisation
Further growth in savings and investment
Some regional growth
Number employed in agriculture declines
4. Drive to Maturity:
– Growth becomes self-sustaining – wealth generation enables further
investment in value adding industry and development
– Industry more diversified
– Increase in levels of technology utilised
5. High mass consumption
– High output levels
– Mass consumption of consumer durables
– High proportion of employment in service sector
Country Analysis and Comparisson
• http://www.bized.co.uk/educators/1619/economics/development/activity/models.h
tm
Models of Development:
Market Based
Models of Development
Rostow: International Trade Approach
International Trade Approach
Models of Development
• Development through self-sufficiency
– Characteristics:
• Pace of development = modest
• Distribution of development = even
• Barriers are established to protect local
business
–Three most common barriers = (1) tariffs, (2)
quotas, and (3) restricting the number of
importers
• Two major problems with this approach:
–Inefficient businesses are protected
–A large bureaucracy is developed
Development through international trade
– Examples of international trade approach
• The “four Asian dragons”: Singapore, Hong
Kong, Taiwan, South Korea
• Petroleum-rich Arabian Peninsula states
Semi-Peripheral States
– Three major problems:
• Uneven resource distribution
• Increased dependence on MDCs
• Market decline
International Trade Approach
Models of Economic Development
Wallerstein’s World System Analysis
1. Core: High Income
High use of technology
High % of tertiary activities
High levels of Education by the
majority of the population
OECD countries G8
2. Semi-Periphery: used to be
peripheral states
Increased economic development
BRICS
3. Periphery: Low Income
Low use of technology
High % of primary activities
Low levels of education by the
majority of the population
Core and Periphery Model:
North South Divide
BRICS: Brazil, Russia, India, China
South Africa added in 2010
G8: Top State economies
Canada, France, Germany, Italy, U.K., U.S.(Core)
Mexico recently admitted (semi-periphery)
BRICS: Semi-Peripheral States
Core-Periphery on a national scale
What is being done to increase development now?
United Nations Millennium Development Goals
December 3, 2013
http://www.youtube.com/watch?v=jbkSRLYSojo
Students will read article: 12/3
Fair Trade and the Food Movement
http://freakonomics.com/2010/06/30/fairtrade-and-the-food-movement/?_r=0
Why Do LDCs Face Obstacles to
Development?
• Development through self-sufficiency
– Characteristics:
• Pace of development = modest
• Distribution of development = even
• Barriers are established to protect local business
– Three most common barriers = (1) tariffs, (2) quotas, and
(3) restricting the number of importers
• Two major problems with this approach:
– Inefficient businesses are protected
– A large bureaucracy is developed
Why Do LDCs Face Obstacles to
Development?
• Development through international trade
– Rostow’s model of development
– Examples of international trade approach
• The “four Asian dragons”
• Petroleum-rich Arabian Peninsula states
– Three major problems:
• Uneven resource distribution
• Increased dependence on MDCs
• Market decline
Why Do LDCs Face Obstacles to
Development?
• International trade approach triumphs
– The path most commonly selected by the end
of the twentieth century
– Countries convert because evidence indicates
that international trade is the more effective
path toward development
• Example: India
– World Trade Organization
– Foreign direct investment
Triumph of International Trade Approach
Figure 9-27
Figure 9-28
Foreign Direct Investment
Figure 9-30
Why Do LDCs Face Obstacles to
Development?
• Financing development
– LDCs require money to fund development
– Two sources of funds:
• Loans
– The World Bank and the IMF
– Structural adjustment programs
• Foreign direct investment from transnational
corporations
Debt as a Percentage of Income
Figure 9-31
Why Do LDCs Face Obstacles to
Development?
• Fair trade approach
– Products are made and traded in a way that
protects workers and small businesses in LDCs
– Two sets of standards
• Fair trade producer standards
• Fair trade worker standards
– Producers and workers usually earn more
– Consumers usually pay higher prices
DECEMBER 3, 2013: In- Class Review Day