Peer Grading

• You will grade 2 FRQ’s

• Use a different color than the writer AND the other grader!

• Write your name on the post-it note in the color you are grading with.

• Underline/check or clearly label where you find the points from the rubric.

• Give any constructive advice/ justification.

• Put the grade on the notebook paper.

Development & Gender

Ch 9.3

The Girl Effect

• Power of educating women (FRQ)– On population growth– On economic growth– On balanced gender roles

• Terms:– GDI: Gender Development Index– GEM: Gender Empowerment Measure

• Recognizing development impacts different genders unequally, UNDP created GDI and GEM

• GDI – Gender-Related Development Index – shows gender inequality among nations– Male/Female income levels (not total GDP per

capita), plus everything in HDI

Gender and Development

United States Women’s Earnings

• GEM – Gender-Empowerment Measure - shows how much women participate in economic and political decision-making political decision-making – % of women working in technical,

professional, managerial, legal, jobs– % of women holding positions in parliaments

Gender and Development

New Delhi, India

Obstacles to Development

Ch. 9.4

LDCs vs. MDCs

• GDP per capita has doubled in LDCs, but tripled in MDCs– $3,000 vs. $16,000

• Natural Increase has dropped by 5% in LDCs, but 83% in MDCs

• Infant mortality has dropped by 1/2 in LDCs, but 2/3 in MDCs

Comparison of Growth

Development in LDCs

• LDCs must develop quickly if they want to raise their HDI

• LDCs must increase their GDP per capita to make the social and demographic changes necessary to change

• Two obstacles include:– Adopting policies that successfully promote

development– Finding funds to pay for development

Self-Sufficiency Approach• AKA Balanced Growth Approach:

– Pace of development = modest

– Distribution of development = even• Aim is to reduce poverty, not make people wealthy

– Barriers are established to protect local business

• Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers by licenses

Self-Sufficiency: India• India required foreign imports to have a license

– Huge bureaucracy

• Government imposed heavy taxes on consumer (tariffs)

• Restricted export goods• Made currency inconvertible• Businesses in India required government

approval to open a new factory, make ∆s– Doesn’t keep up with trends/technology (Maruti)

• Government would subsidize non-profitable businesses

Problems with Self-Sufficiency• Inefficiency:

– Businesses are often subsidized if they fail to make a profit, so there is no motive to produce high-quality, low-cost goods

– Companies are protected from international competition

• Large Bureaucracy:– Requires a large bureaucracy to administer

control• Licenses, approve changes to industries

International Trade Approach

• Countries have to identify their unique economic assets– Petroleum, Diamonds, etc.

• Countries must focus on developing their resource, and selling it in the world mkt

• A country can benefit from foreign consumers

International Trade Approach

• Rostow’s Development Model– As a basic assumption, Rostow believes that

countries want to modernize as he describes modernization

– The society will rise to the materialistic norms of economic growth.

– Emphasizes free trade– Countries go through stages linearly

Rostow’s Model of Development

1. Traditional Society

• Pre-scientific understandings of gadgets

• Believe that gods or spirits facilitate the procurement of goods, rather than man and his own ingenuity

• The norms of economic growth are completely absent from these societies.

• US prior to independence

2. Preconditions to Take-Off

• Society begins secular education• Uses capital mobilization (banks and

currency)• Entrepreneurial class forms• Manufacturing develops slowly• Leads to a take-off in 10-15 years

• US in early 1800s

3. Take-Off

• Growth becomes common • Society is driven more by economic

processes than traditions • Industrial Revolution/urbanization likely• Takes 50-100 years to reach maturity

• US in mid-1800s

4. Drive to Maturity

• Economy begins to diversify

• Primary becomes less important, as other sectors grow

• Leads to reduction in poverty and rising standard of living

• Population growth slows

• US in late 1800s

5. Age of High Mass Consumption

• Consumers concentrate on durable goods• A society can focus on three things

instead of subsistence:– Military and Security– Equality and Welfare– Developing luxuries for upper class– Less on education?

• US in early 1900s

Criticisms of the Model1. Rostow created his model in hindsight

2. The underlying motive for change is not identified, instead, his model is based on historical data

3. His model is based on American history

4. His model reflects a “capitalist manifesto”

5. Biased towards the west

6. Assumes the country is large, with large population, and abundant natural resources

Examples of International Trade

• Countries of SW Asia– Was one of the least developed regions in the

world– Petroleum prices rose, and transformed the

region’s GDP per capita income– Development has been very rapid

• However, some Islamic religious principles conflict with development– Role of Women– Prayer stopping business

Four Asian Dragons/Tigers

• S. Korea, Singapore, Taiwan, and Hong Kong– Some of 1st to try approach– Followed Britain and Japan

• Very few natural resources– Needed trade w/ others– Concentrated on producing manufactured goods

• Low labor cost sold to MDCs for lower price

Problems with I.T. Approach

• Uneven resource distribution– Most of the oil rich countries are doing well– Some countries with natural resources cannot

afford to access them

• Market stagnation– The world market is shrinking, especially in

tough economic times

• Increased dependence on MDCs– LDCs are spending money to take-off, instead

of providing food, shelter, and schools

Success of IT Approach

• World wealth doubled in last 25 yrs

• World trade has tripled

• India: 4% growth/yr under SS approach; 6% growth/yr under IT approach

World Trade Organization

• Countries involved in 97% of world trade established the WTO in 1995

• It removes trade barriers in two ways:– Negotiates reduction or elimination of

international trade restrictions on manufactured goods and money

– It enforces agreements between countries

• Criticisms: – Antidemocratic, reduces sovereignty

Wallerstein’s World System Analysis

Core: High Income

High use of technology

High % of tertiary activities

High levels of edu. by the majority of the pop.

OECD countries G8

Semi-Periphery: used to be peripheral states

Increased econ. develop.

BRICS, 4 Dragons, Middle East

Eastern Europe

Periphery: Low Income

Low use of technology

High % of primary activities

Low levels of edu. by the majority of the pop.

BRICS: Brazil, Russia, India, China, South AfricaMexico recently admitted to “5” (semi-periphery)

G8 + 5: Top State economiesCanada, France, Germany, Italy, Japan, U.K.,

Russia*, U.S.(Core)

Financing Development• LDCs must obtain $ from MDCs

– Loans from banks/ orgs. OR direct investment– Need for infrastructure should help

development make $ pay back & improve standard of living

• IMF and World Bank, also commercial banks– $2.1 trillion in loans

• Many loans fail (1/2 in Africa)– No more loans follow, banks face instability

Financing Development• Structural Adjustment Programs

(SAPS):– Policies LDCs adopt to estab. efficient

conditions for making loans work– MDCs often enforce, some LDCs angry w/

lack of choice

• Transnational Corporations:– Investment by private companies (FDI)– $13 billion in 1970; $735 billion in 2001

FDI