Transcript Development
Development Measurements of Development • • • • • • • • • • • HDI Life Expectancy Literacy Education Standard of living Employment Income Technology Raw Materials Gender Empowerment Economic Indicators – GNP – GDP Development Theories • World Systems Theory – Core and Periphery • Growth Models • Rostow’s –principles of capitalism, investment, saving • Nolan’s – integration of technology The Core-Periphery Model • Core-Developed Regions which use the resources of the periphery to continue their success. – i.e India, China, and Brazil’s equal global resource contribution to that of the Western world as well as Japan and Australia, • Periphery- Developing Regions – The lack of investment by developed countries keeps these countries in poverty – Developed countries also own their natural resources limiting these developing countries opportunity to create independent wealth Semi-periphery • Four Asian Tigers – As discussed in Industry • • • • South Korea Taiwan Singapore Hong Kong Urban Areas • Urban areas also serve as world “core cities” – New York – London – Tokyo Semi-periphery cities include: Chicago, Paris, and Shanghai Core-Periphery • • • • Industrial Core Upward Transition Downward Transition Resource Frontier Industrial Core • Where the majority of industry takes place • Large urban areas close to markets • Northeast US Upward Transition • Areas that are gaining jobs by attracting industry • Tax breaks • Attractive services: schools, parks, major league sports, etc. • Examples: – Southern US both West and East • Atlanta, Phoenix, Houston, San Diego Downward Transition • • • • Companies are leaving High rates of unemployment Great Plains Areas with net-out migration Resource Frontier • Resources supplied to the industrial core • Transportation is the key factor – Trains and Pipelines • Alaska Rostow’s Models of Development • Also known as the “Take off Model” – 1. Traditional society – 2. Preconditions for takeoff – 3. Take off stage – 4. The drive to maturity – 5. The age of mass consumption 1. Traditional Society • Primary sector of the economy • Subsistence farming • Mass production is not yet developed 2. Transitional Phase • • • • Transportation and infrastructure improves Shift from primary to secondary sectors Entrepreneurship Expendable income rises 3. Take off stage • Expansion of manufacturing sector • Farmers sell more • Food becomes less subsistence and more commercial • Growth around urban centers • However industrial growth is limited to a few sectors 4. Drive to maturity • Technology seeps into other industries • All areas of manufacturing are employing technology 5. Age of Mass Consumption • Highly skilled professionals • Productivity, earnings and savings are at an all time high • Society has shifted from secondary sector to tertiary economy • Manufacturing has shifted from traditional sectors to consumer goods Critiques and Criticism • Based on assumption that consumers save and invest. • People use wealth to improve economic status • Industry uses investment to grow and investment is returned • Critics say the developing world has inequitable resource distribution that would, using this model, make it impossible to grow. Nolan’s Stages of Growth Model • Describes individual companies adaptation of technology to be competitive in the economy • Six Stages – Initiation – Contagion – Control – Integration – Data administration – Maturity Initiation Stage • Technology is used sparingly • Mostly for data entry • (think first computer) Contagion Stage • The spread of technology • More and more uses • However not for personal home use Control Stage • Mass roll out but users are not comfortable with technology • Difficult to use but high yield productivity on the horizon Integration Stage • Users have become comfortable with technological integration • Increases productivity Data Administration Stage • Collection and storage of data • Less work done by computer but rather is used to store original and inventive products by employees Maturity Stage • New uses for technology • Use it as a tool to advance beyond those of their competitors Nolan: Summary • Individual companies rather than countries as a whole • However, companies are at the forefront of economic development Theories and Development • Economic growth leads to development • Industrial growth leads to development • Trade growth leads to development