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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/