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Development and
Industrialization
Do these terms mean the same thing?
Identify characteristics that define each term.
Consider:
What is it like to live in a developed place?
What is it like to live in an industrialized place?
Write a definition for Development.
• Making progress in technology, production,
and socioeconomic welfare.
• A process of improvement in the material
condition of people through the diffusion of
knowledge and technology.
• The process of growth, expansion, or
realization of potential; bringing regional
resources into full productive use.
Characteristics of Development
LDC
Characteristic
Low
Per capita Income
Uneven
Wealth
Primary
Dominate Industry
High
Subsistence by hand
Rural
High, High, Low
Poor
Infectious, poor
% in Agriculture
Farming is ….
Rural or Urban
CBR ___. CDR ___. LE ___.
Diet
Diseases / medical
Overcrowded, poor
sanitation
Housing
Poor with Illiteracy
Education
Inferior
Women
MDC
High
More even
Secondary and Tertiary
Low
Commercial / mechanized
Urban
Low, Low, High
Adequate to overeating
Age and good
Adequate, good sanitation
Highly Developed
Equal terms
What is this map trying to demonstrate?
How do we describe the world?
An old Cold War way…
Democracy and
Capitalism
Communism
Everyone Else
First World
Second World
Third World
Does this describe
DEVELOPMENT?
A Better Way?
Industrialized and
Service-based
Communism
Newly
Industrializing
Countries (NIC)
Least Developed
Countries (LDC)
First World
Second World
Third World
Fourth World
Fifth World?
Lack
Economy and
Government
NIC’s in the World Today
Quiz from 301-305 and 331
1. What is GNI?
2. The blackmarket and illegal drug trade would be
a part of the ___________ economy.
3. Who came up with the classic development
model?
4. How many stages does it have?
5. Agriculture is classified as what type of
economic activity?
6. The Service Industry is classified as what type of
economic activity?
Economic Sectors: What is being produced?
How does this relate to development?
More Detailed Economic Sectors
What do LDC, NIC, and MDC’s look like?
United States
agriculture: 1.2%
industry: 21.9%
services: 76.9%
Lets try some examples: click here
Let’s look at some factors that describe
development.
Here are some cool maps.
What is the difference between
GNP and GDP?
• Which is bigger in Japan? Why?
• How do these relate to GNI?
Goods + Services + Investments (remittances)
• What is PPP?
USA
GDP (PPP)= $14.26 trillion (2009 est.)
GDP - per capita (PPP): $46,400 (2009 est.)
China
GDP (PPP) = $8.767 trillion (2009 est.)
GDP - per capita (PPP): $6,500 (2009 est.)
Rwanda
GDP (PPP) = $10.39 billion (2009 est.)
GDP – per capita (PPP) = $1,000 (2009 est.)
PPP rates for 2003
The economy of the United States is used as a reference, so that country is set at
100.
Bermuda has the highest index value, 154, thus goods sold there are more
expensive than in the United States.
Source
How The GDP Of US States
Compare To Countries Around The World
What does the UN say
about development?
Human Development Index
HDI: Click here
Cool maps!
Click Here
GII: Gender Inequality Index
Development
Theories
Why are some more developed than others?
Rostow
Dependency
Structuralist
World Systems:Wallerstein
ROSTOW’s
Modernization Model
Ladder of Development
Stages of Development
Read using CODES the two articles on Rostow looking for the
answers to the following questions:
1. What are Rostow’s stages?
2. What are some of the key assumptions of his model?
3. What are the criticism?
4. Bonus: How might one country influence another’s
development?
Create a graphic organizer that answers and
demonstrates the key ideas from above.
Rostow’s Stages
High Mass Consumption
Drive to Maturity
Takeoff
Pre-conditions to takeoff
Traditional
Rostow Criticisms
•
•
•
•
•
•
•
•
•
It is a Western idea based on Western countries.
Can every country really develop the same?
Does development really equal consumption?
What about Multinational Corporations? Where does
the money really go?
And the playing field has changed…think about
environmental issues!
Can one country really move up by itself or is it
interconnected with others?
What about scale?
How important is culture?
Is there a stage 6? Deindustrialization?
Create a Venn Diagram
comparing
Rostow’s Modernization Model
and the
DTM
(Include at least 5 categories)
Create a
Models Manual
for
Rostow
What about the
other development
theories?
• Dependency
• Pol & Econ relations control and limit
development. (Dollarization)
• Structuralist
• Structure in the world have made
change difficult. (Neo-Colonialism)
• World Systems: • 3-Tier Structure (C,SP,P)
Wallerstein
Not everyone can be equal.
We can look at this in different
scales.
Is lack of development the result of
external or internal obstacles?
External
Internal
CIA Factbook
What is the Solution to
Development?
PLAN 1: Self-Sufficiency
PLAN 2: Development Through
International Trade
1. What are the main ideas of each plan?
2. What are some examples of countries who
have used the plans?
3. Problems with each plan?
What is the Solution?
PLAN 1: Self-Sufficiency
• Spread investment in all sector and all regions in country.
• Limit Imports and Exports (tariffs, quantity, license).
• Government subsides to help some areas.
• Examples?
The Problems with Plan 1:
1. Inefficient Capitalism: Even the weak survive?
2. Bureaucracy: Waste of time & money. Black market?
What is the Solution?
PLAN 2: Development
Through
International Trade
• Sell what you have on the world markets!
• Take that $$$ and finance in other areas of development.
The Problems with Plan 2:
1. Uneven Resource Distribution
2. Market Stagnation
3. Increase Dependence on MDC’s
Examples?
Four Asian Tigers
(SK, S, T, HK)
- What did they sell?
Arabian Peninsula
- What did they sell?
Is it working?
What does the WTO think about this?
How do you pay for development?
LOANS…IMF and World Bank
Millennium Development Goals by 2015
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Do the loan projects work?
How do you pay them back?
Why do a structural adjustment loan?
Hans Video
Click Here