Development -...

Chapter 10

Development

How do you Define and Measure

Development?

EQ 10.1

What does Development Mean?

• Development implies “progress”

– Progress in what?

– Do all cultures view development the

same way?

– Do all cultures “value” the same kinds of

development?

Indicators of Development• Economic indicators of development

– Gross domestic product per capita high

– Jobs are in the tertiary and quaternary levels

– Raw materials are readily available

– Consumer goods in high demand

• Social indicators of development

– Education and literacy high

– Health and welfare high

• Demographic indicators of development

– Life expectancy high – Infant mortality rate

– Natural increase rate – Crude birth rate

These indicators are measured

several ways:• Human Development Index (HDI)

– Standard of living, life expectancy, education

• Gross National Product (GNP)

• Gross Domestic Product (GDP)

• Gross National Income (GNI)*

– MOST COMMON

• Occupational Structure of the Labor Force

• Transportation and Communications facilities

per person

• Calorie Intake

• Dependency Ratio

Human Development Index, 2005

Fig. 9-1: Developed by the United Nations, the HDI combines several measures

of development: life expectancy at birth, adjusted GDP per capita,

and knowledge (schooling and literacy).

Annual GDP per capita, 2005

Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in

most developed countries but under $5000 in most less developed countries.

Cellular Phones per Population

Fig. 9-5: Cellular telephone lines per 1000 persons, 2005. Cell phones are now

more common than land lines in much of Europe and Africa, but they

are less common than land lines in North America.

Primary Student-Teacher

Ratios

Fig. 9-6: 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 in the population.

Physicians per Population

Fig. 9-8: Physicians per 1000 people, 2005. MDCs have three or more

physicians per 1000 people compared to less than one in most LDCs.

Issues with Measuring

Economic Development

• All measurements count the:

– Formal Economy – the legal economy that

governments tax and monitor.

• All measurements do not count the:

– Informal Economy – the illegal or

uncounted economy that governments do

not tax or keep track of.

More & Less Developed Regions

• More developed regions

– Anglo-America – Western Europe

– Eastern Europe – Japan

– South Pacific

• Less developed regions

– Latin America – East Asia

– Southeast Asia – Middle East

– South Asia – Sub-Saharan Africa

More & Less Developed Regions

Fig. 9-11: The less developed regions include Latin America, Sub-Saharan Africa,

Middle East, South Asia, East Asia, and Southeast Asia.

Development and Gender

• Gender-related development index

(GDI)

– Economic indicator of gender differences

– Social indicator of gender differences

– Demographic indicator of gender

differences

– Gender Inequality Index (GII)

• Gender empowerment

– Economic indicator of empowerment

– Political indicator of empowerment

Female-Male Income Differences

Fig. 9-14: Female income as a percent of male income, 2005. 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.

Gender Differences in School

Enrollment

Fig. 9-15: 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.

Life Expectancy & Gender, 2005

Fig. 9-17: Differences between male & female life expectancy. Women’s life

expectancy is several years longer than men’s in MDCs, but only slightly

longer in many LDCs.

Women Administrators & Managers

Fig. 9-20: More than one-third of top administrators are women in North

America and some other MDCs and LDCs, but 20% or fewer top

administrators are women in many other countries.

Women as Legislators

Fig 9-21: Over 30% of legislative seats in northern Europe and over 20% of those in

China and other nations are held by women . In many other LDCs, under

10% are held by women.

Development Model

Modernization ModelWalt Rostow’s model assumes all countries follow a

similar path to development or modernization, advancing through five stages of development, climbing a ladder of development.

- traditional

- preconditions of takeoff

- takeoff

- drive to maturity

- high mass consumption

How does Geography affect

Development?

EQ 10.2

Dependency Theory•As a result of globalization, the world is more

interdependent.

•Therefore, the political and economic relationships

between countries and regions of the world control and

limit the economic development possibilities of poorer

areas.

-- Economic structures make poorer countries

dependent on wealthier countries.

-- Little hope for economic prosperity in poorer

countries.

Is this true?

Dollarization –

Abandoning the local currency of a country and

adopting the dollar as the local currency.

El Salvador went through dollarization in 2001

* Cannot simply study what is produced.

* Need to examine how and where it is

produced and where the production is on the

commodity chain.

* Examine commodity chains and look for the

kinds of economic processes operating at

each link in the chain.

Geography and Context

Commodity Chain (supply chain)

How processes operated at each step in the commodity

chain that produced the dolomite stone for this

fireplace?

Series of links

connecting the

many places

and steps of

production and

distribution

and resulting in

a commodity

that is then

exchanged in

the world

market.

Application

• Compare and Contrast Rostow’s ladder

of development (modernization model)

to Wallerstein’s 3 tier system (world-

systems theory).

• Read p. 309 carefully to make your

decisions.

What are the Barriers

to and the Costs of

Economic Development?

EQ 10.3

Barriers to Economic

Development

• Low Levels of Social Welfare

– Trafficking

• Foreign Debt

– Structural adjustment loans

• Political Instability

• Widespread Disease

– Malaria

Foreign Debt Obligations Total interest payments compared to the export of

goods and services.

Widespread Disease

• Malaria kills 150,000 children in the global

periphery each month.

Tamolo, India

This baby sleeps

under a mosquito

net distributed to

villagers by

UNICEF

workers.

Global Distribution of

Malaria Transmission Risk

Costs of Economic Development

• Industrialization

– Export Processing Zones (EPZs),

maquiladoras, and special economic

zones (SEZs), The Four Tigers (Hong

Kong, Singapore, South Korea and Taiwan).

• Agriculture

– desertification

• Tourism

– Increased reliance

Export Processing Zones

Areas Threatened by

Desertification

Why do Countries

experience Uneven

Development within the State?

EQ 10.4

Governments affect

development

• Governments

– get involved in world markets

– price commodities

– affect whether core processes produce wealth

– shape laws to affect production

– enter international organizations that affect

trade

– focus foreign investment in certain places

(EPZs)

– support large-scale projects

Governments

and

Corporations

can create

Islands of

Development

Places within a

region or country

where foreign

investment, jobs,

and infrastructure

are concentrated.

Government-created Island of

Development

Forward Capital- a symbolically relocated capital city usually

because of either economic or strategic reasons;

sometimes used to integrate outlying parts of a country into

the state

Malaysian government built a new, ultramodern capital at

Putrajaya from Kuala Lumpur to symbolize the country’s rapid

economic growth.

Other Examples:

Brasilia, Brazil

Washington D.C.

Tokyo, Japan

Corporate-created Island of Development

The global oil industry has created the entire

city of Port Gentile, Gabon to extract Gabon’s oil

resources.

Nongovernmental

Organizations (NGOs)entities that operate independent of state and local

governments, typically, NGOs are non-profit

organizations. Each NGO has its own focus/set of goals.

Microcredit program:

loans given to poor

people, particularly

women, to encourage

development of small

businesses.

Development Strategies• Development through self-sufficiency

– Elements of self-sufficiency approach

• Borrow money

– Problems with self-sufficiency

• Debt, poor governance

• Development through international trade

– Rostow’s development model

• Financing development: where does the

money come from?

• Fair trade

Microfinance in Bangladesh

The Grameen Bank provides small loans to women (and men) in Bangladesh.

Women in this village are repaying their loans.

Poor Infrastructure in Ghana

Many roads in Africa and other developing nations are not paved. This and

other problems of infrastructure are obstacles to economic development.

Fair Trade Coffee

Because the role of middlemen is reduced and because consumers generally pay

higher prices, producers of fair trade coffee can earn more than traditional

coffee growers.

Solutions?

• What changes would you make to

revise the current world economic

system?

• What resources would you need to

ensure these changes would work?

China’s Choice Mini Case Study

• How does the article demonstrate the

costs of economic development?

– Site one specific example

• What does this article say about why

and how countries can experience

uneven development within the state?

– Site two specific examples

Wal-Mart

in China

Wal-Mart, which imports many

goods to the US that are

manufactured in China, opened

its first super-store in

Shanghai, China in 2005.

http://www.pbs.org/wgbh/pages/front

line/shows/walmart/