Geographic Models of Development and Change

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1 11 Geographic Models of Development and Change Chapter Overview Specific Expectations In this chapter, students will: identify different methods of grouping countries and evaluate the implications of categorizing countries in these ways identify ways in which countries and regions of the world are becoming increasingly interdependent compare the economic and political aspirations of selected regional or cultural groups within different countries analyze the causes of economic disparity in the local or regional community analyze the economic and environmental effects of colonialism and neo-colonialism on selected countries assess the relative importance of the various factors that influence the quality of life analyze problems of hunger and poverty in selected countries and explain how certain practices may aggravate the problems gather geographic information, using a variety of geographic tools and technologies use different kinds of maps and images to identify, interpret, and analyze geographic relationships, including those that involve the consequences of human activities or environmental phenomena use appropriate statistical analysis techniques in geographic analysis, observing accepted conventions The countries of our four-world model have varying levels of economic development as a result of different histories, resource bases, types of government, and economic philosophies and systems. Chapter 11 examines some models of economic development and discusses some economic systems and policies that have influenced the growth of nations and the globalized economy. Chapter 11 begins with a Working It Out activity. The activity, entitled Changing Economies, demonstrates how the percentages of the gross domestic product (GDP) contributed by primary, secondary, and tertiary industries change as a nation s economy develops. On a graph, students plot the locations of the percentages of the GDP contributed by primary and secondary industries. The line drawn through these points demonstrates the percentage of the GDP contributed by tertiary industries. On completion of the activity, students will realize that a country s level of economic development may be determined by the percentage of the GDP contributed by tertiary industries. Rostow s five-stage model illustrates the stages of economic development that took place in Old Core countries. It can be used to predict the course of economic change in other countries. For more than four centuries, much of the world was dominated by colonialism. Its impact was so profound that it has had a lasting effect on the economic, social, and political systems of many countries today. The next section begins with a look at colonialism s historical roots and concludes with a list of its positive and negative impacts. It is followed by a short section on neo-colonialism, a form of dominance by wealthy countries over poor countries by means of economic policies and cultural influences. Each of the world s economies falls somewhere along a continuum between a free market economy (no government control) and a command economy (controlled by government). The following section, Economic Systems, discusses the basic tenets of free market versus command economies. The contrasting philosophies of Keynesian economics (also known as progressive thought) and neo-liberalism are presented in Figure Neoliberalism is central to the trend toward economic globalization, and Chapter 11: Geographic Models of Development and Change 119

2 Prior Learning Required Students should review the following: Chapter 3, pages 43 49: the Four- World Concept Chapter 2, page 26: financial and economic globalization it has profound effects on the economies of the developed and developing world. Since most of your students will soon have the opportunity to vote, the chapter concludes by asking if they would vote for a political party that supports neo-liberalism or one that supports progressive thought. Having just learned about the impact of neoliberal policies on economies around the world, they should be able to give some thoughtful answers. Working It Out: Changing Economies (p. 168) Primary industries are resource-based activities such as agriculture, mining, and fishing. Secondary industries include manufacturing and construction activities. Tertiary industries include services such as government, financial services, and education. The percentage of a country s GDP contributed by primary, secondary, or tertiary industries changes as a country develops. The following activity shows you how these changing values may be used to determine a country s level of economic development. Question 1 For this exercise, you will be using standard x/y graph paper. However, instead of dealing with two values as you have usually done on standard paper, you will be dealing with three. It is possible to show three values on a two-dimensional graph as long as the three values always add up to the same total in this case, to 100 percent. Remember that the percentage of the GDP from primary industries is shown on the (horizontal) x-axis, while the percentage of the GDP from secondary industries is shown on the (vertical) y-axis. At any point (for example, A, B, or C) along the red line, the combined value of primary and secondary GDP always equals 100 percent (see Figure11 1). This means that the value of the tertiary GDP equals 0 percent. At any point (for example, D or E) along the green line, the combined value of primary and secondary GDP always equals 50 percent. This means that the value of the tertiary GDP equals 50 percent. At any point (for example, F or G) along the blue line, the combined value of primary and secondary GDP always equals 20 percent. This means that the value of the tertiary GDP equals 80 percent. In simplest terms, as you move toward the graph s origin (0, 0), the percentage of the tertiary GDP value increases. You can see how this works for Canada and Bangladesh in Figure Because the three values add up to 100 percent, the tertiary value can be inferred once the primary and secondary values have been located. The closer any point is to the origin (0,0), the higher the tertiary value. Question 2 Figure 11 3 summarizes changes in GDP in each economic sector for the countries of our Four-World model. On a full page of graph paper, plot the economic changes for each country in a manner similar to that used for Canada and Bangladesh in Figure Plot the members of each world in a different colour. Give students Line Master 11 1 to help them with this exercise. 120 Global Connections Teacher Resource

3 The line for each country illustrates the change in the percentage of the GDP contributed by each industry over time. Using the same colour for the lines of countries within each world helps students to see the trend within each world. Student graphs should look like the one in Line Master Evaluate their work using Assessment Rubric 4 Graphing in the Assessment Rubrics section of this Teacher Resource. Line Masters/Assessment Masters LM 11 1 Graph of Economic Development: Percentage of GDP in Primary (P), Secondary (S), and Tertiary (T) Industries LM 11 2 Graph of Economic Development: (Solution) AR 4 Graphing Question 3 Examine the graph you have created. What economic changes do you see as a country progresses from Far Periphery to Old Core? As a country progresses from Far Periphery to Old Core status, the following economic changes take place: a high percentage of GDP from primary industries and a low percentage of GDP from secondary and tertiary industries (see line at T = 30 percent on Line Master 11 2) changes to a lower percentage from primary industries and a higher percentage from secondary and tertiary industries. On the graph, a line that shows that the percentages of GDP are increasing for secondary industries and decreasing for primary industries moves up and to the left, e.g., Bangladesh and Zambia, Iran, the Philippines, and Malaysia. As a country continues to develop, the economy changes to an even greater percentage of GDP from tertiary industries (see line at T = 70 percent on Line Master 11 2) and to a decreasing percentage of GDP from secondary and primary industries. On the graph, a line that shows that percentages of GDP are increasing for tertiary industries and decreasing for secondary industries moves downward and to the left, e.g., Canada, Germany, and Poland. Primary industries such as farming, mining, forestry, and fishing are typical of traditional societies. Secondary (manufacturing) and tertiary (services) industries are small components of the GDP at this stage. As societies become more urbanized, subsistence agriculture gives way to commercial agriculture, manufacturing develops in urban centres, and services develop to meet the demands of the growing urban population. As manufacturing industries develop, urban growth continues, incomes rise, and the demand for goods and services increases. Eventually, the highly educated urban population focuses on providing services while many manufacturing jobs are lost to countries with lower wages. Question 4 How might economic planners in less developed countries use knowledge of these changes? Knowing that an increase in the percentage of GDP contributed by secondary and tertiary industries, and that a decrease in the percentage contributed by primary industry signals good economic development, economic planners in less developed countries could determine if the country was making good economic strides. Economic planners could also suggest the promotion or funding of industries in the sector into which they want the country to progress. For example, they might recommend that the country begin to focus on developing manufacturing (secondary industry) as opposed to continuing to focus on mineral extraction (primary industry). Chapter 11: Geographic Models of Development and Change 121

4 Chapter Questions: Notes and Answers (p. 179) Knowledge and Understanding Question 1 a) and b) Imagine that a developed Western nation is facing a period of economic decline. What might this government tend to do if it believes in. a) Keynesian economics? b) neo-liberal economics? If the government believes in Keynesian economics, it would increase its spending in an effort to reduce unemployment, which in turn would stimulate the economy. Spending could fund public works such as dam building and highway construction (infrastructure development), or fund public services, e.g., education (even if it created a budget deficit). If the government believes in neo-liberal economics, it would try to stimulate the economy by reducing taxes so that companies would have more money for investment, and citizens would have more money to purchase products. The government or central bank would also use monetary policy to try to decrease interest rates so that companies and individuals could borrow money for new projects. Question 2 a) Using Rostow s work as an example, define what is meant by a model. A model is a simplified representation of reality that allows a person to test an idea against what is observed in the real world. Rostow created a fivestage model of economic development that can be tested against what really happens to countries as they progress economically. The five stages are actually a simplification of a complex process, and enable a better understanding of economic development. Question 2 b) What are the advantages and disadvantages of using a model to describe a complex reality? Advantages a model simplifies reality to make a complex process easier to understand a model can be compared to a real situation to discover if the real situation has missed something in its development or has developed in new and different ways not present in the model. a model offers the opportunity to experiment with facts, figures, events, and timelines in ways that can t be done in reality, e.g., computer simulations a model can help predict possible outcomes for a real situation Disadvantages if the assumptions on which the model is based are incorrect, then the model will lead to incorrect conclusions the accuracy of the model is dependent on the accuracy of the data it is sometimes difficult to formulate the right balance between a model s simplicity (which could lead to inaccuracy) and its complexity (which could make conclusions difficult to draw) Question 3 Briefly summarize, in your own words, the impacts that colonialism has had on former colonies. For each impact, suggest why, after 50 or more years of independence, the effects of colonialism are still causing problems in these countries. See Table 1 below. 122 Global Connections Teacher Resource

5 Table 1 Impacts and Lasting Effects of Colonialism Impacts of Colonialism 1. Colonies existed only to meet the needs of colonizers; the rights of indigenous populations were ignored. 2. Colonies were seen only as a source of raw materials and a market for the goods produced in the mother country; they could not operate in their own best economic interests. 3. Trade and manufacturing restrictions were imposed on colonies. For example, manufactured goods had to be purchased from the mother country and not not be produced in the colony. 4. Colonial powers destroyed traditional land-tenure practices of shared land use; traditional practices were supplanted by private ownership of the land. 5. Local populations were pushed off the land to make way for large estates and plantations owned by Europeans. Dispossessed farmers were then used as cheap labour on plantations and in a variety of other industries. The best land went to Europeans in the form of large plantations and concession companies. 6. Land that had been used to grow traditional food crops that sustained the local population was used to grow cash crops such as tea, coffee, sugar, bananas, and cacao, which were sent to the mother country. People who were once self-sufficient became dependent upon imported food. 7. Resource-based industries paid little attention to environmental protection. 8. Colonial powers imposed foreign political systems that rarely recognized and respected the traditional governing systems of the people in their colonies. 9. Colonial powers trained local residents to hold less important administrative jobs and to serve in the army. 10. Colonial powers created new countries by imposing boundaries that did not take into account traditional tribal boundaries. The boundaries were simply drawn on maps to meet the needs of competing colonizers. 11. Colonizers imposed their culture on the people living in the new lands. 12. Colonizers built transportation infrastructures that served their commercial needs rather than those of the local population. Current Problems Stemming from Colonialism 1. Many colonies have no history of democratic governments and are accustomed to autocratic leaders. 2. The colonies were kept poor when they could not sell goods to the highest bidder; in some cases, this poverty has continued to the present day. 3. Trade restrictions delayed the growth of, or destroyed, local manufacturing. This sector never developed in many former colonies. 4. Private ownership meant that a few wealthy people owned a great deal of land. Some people had only enough to support themselves, and others had no land at all. These patterns of land ownership continue today, and as a result, many people are landless, while a few wealthy people control much of the land. 5. Today, people who do not own land still provide cheap labour for plantation agriculture and industries, often owned by transnational corporations. Indigenous farmers were restricted to growing food for local needs on less productive land; this remains the case today in many former colonies. 6. Cash crops are still grown instead of food crops for the local populations. Now, however, the cash crops are sold to large corporations based in developed countries. Today, people in former colonies are often reliant upon imported food. 7. The lack of concern for environmental protection continues today. The result is considerable environmental degradation and a lack of environmental regulations. 8. Former colonies continue with the political system that was brought by the colonizers, and disregard traditional practices that may be more appropriate. There is often a history of conflict between the modern governments of former colonies and Aboriginal groups who wish to be accorded self-governance. 9. After independence, the trained locals often ended up running the former colonies, whether elected or not. Frequently, they were not representative of the population (e.g., they may have been recruited from a particular tribal group). 10. Today, many countries suffer from civil war because of internal cultural or linguistic differences originally created by European map makers who did not take tribal boundaries into consideration (e.g., the civil war between Tutsis and Hutus in Rwanda). 11. The dominance of the colonial culture has sometimes caused the local culture (native dialects and valuable traditions) to appear inferior and, consequently, to disappear. 12. The infrastructure built by colonizers may not adequately serve the most populated areas today. Table 1 Answer key for page 179, question 3. Chapter 11: Geographic Models of Development and Change 123

6 Question 4 Suggest how colonialism and concession companies aided the economic takeoff of imperial nations and hindered that of colonies. Colonialism and concession companies aided the economic takeoff of imperial nations in a variety of ways. Colonies and concession companies were sources of new products not available in the mother country (e.g., furs, tobacco, spices, tea). The sale of these products to citizens in the mother country greatly stimulated the home economy. Colonies were the source of raw materials. These raw materials were shipped to the mills and factories of the mother country where they were turned into manufactured products. The sale of manufactured goods generated a great deal of wealth that helped the mother country s economy to develop. New products, e.g., coffee, food products, and raw materials from the colonies were traded to other nations by the mother country. This trade brought in large amounts of foreign currency that helped develop the economy. Manufactured goods made in the mother country from products supplied by the colonies were traded to other countries, generating income that helped develop the mother country s economy. Increased manufacturing from colonial raw materials gave rise to important technological innovations that further aided economic development. The colonies provided a captive market for the products produced by manufacturing companies in the mother country. The money flowing back to the mother country helped develop its economy. Agricultural products from the colonies provided food for the mother country s population. The manufacturing companies in the mother country could sell products at whatever prices they wished. Their large profits were invested in the mother country, thus stimulating its economy. Huge amounts of money earned by concession companies abroad were invested in the mother country s economy and infrastructure development. Concession companies had their own ships, troops, and trading posts. The mother country did not have to invest its wealth in these items, but could concentrate on its own economic development. Colonialism and concession companies hindered the economic development of colonies in a variety of ways. Colonies could not develop a manufacturing sector because they had to purchase products from the mother country. The colonies produced cash crops for export, rather than food for local consumption. The money from cash crops went into the mother country s economy. The local population was forced off the best land so that it could be made into plantations that grew cash crops. Indigenous farmers could not use the best land to grow food for local consumption. This removed a source of income from the local economy. Concession companies regulated trade and economic development in the colonies for the benefit of the mother country, not the colonies. Profits made by concession companies were not reinvested in the colonies, but rather in the mother countries. Question 5 a) What is neo-colonialism? Neo-colonialism is a new form of domination exercised by developed nations over developing nations in the post-colonial period. It may be referred to as economic colonialism because it uses economic policies, trade policies, and cultural influences instead of direct political control to dominate a country. Question 5 b) What are the similarities and differences between colonialism and neocolonialism? 124 Global Connections Teacher Resource

7 Similarities: Colonialsm and neo-colonialism are both forms of domination by developed (strong) countries over developing (weak) countries. Today, as in the colonial period, former colonies or developing nations are sources of raw materials for developed nations. Today, former colonies or developing nations are markets for manufactured goods from developed nations. Today, as in the colonial period, one nation may dominate another through the subtle imposition of its culture. Today, as in the colonial period, former colonies or developing nations still supply low-cost labour for companies from developed nations. Differences: Today, former colonies or developing nations are a source of manufactured goods. Today, the chief beneficiaries of neocolonialism are transnational corporations rather than developed countries per se. Today, some former colonies and developing nations wield a lot more power than in the past because of their resources or large populations. Question 5 c) How do strong nations exert control over weak nations through economic and trade policies? Strong nations may exert control over weak nations in the following ways: Foreign aid may be tied to the purchase of another country s manufactured products. They may implement or withhold tariffs to weak nations in exchange for votes at the UN. They may dominate weak countries through the subtle imposition of their culture, for example, by their entertainment, language, and access to news and other sources of information. Thinking Question 6 a) Summarize the characteristics of the five stages of Rostow s model of economic growth. See Table 2 below. Question 6 b) Give evidence, from our economy and lifestyles, to show that Canada is in Rostow s Stage 5 (high mass consumption). Rostow s high mass consumption stage states: Many people have incomes that are greater than the costs to pay for essentials such as shelter, food, and clothing. The majority of Canadians are in this economic position. There is a growing demand for additional consumer goods and services. Consumer demand for products is a major component of economic growth in Canada. Society is wealthy enough to invest in social programs. Canada has a national healthcare program and a wide range of educational opportunities to meet the needs of most Canadians. Question 7 All countries have mixed economies. Some countries, however, have economies highly controlled by their government while others have economies with relatively little government involvement. Through research, identify three countries that have Question 7 a) limited free markets (great deal of government involvement) North Korea, Cuba, Belarus Question 7 b) a balance between free markets and an involved government Canada, Japan, Sweden Question 7 c) free market (little government involvement) United States, New Zealand, United Kingdom Chapter 11: Geographic Models of Development and Change 125

8 Table 2 Stage Rostow s Five Stages of Economic Growth Characteristics Stage 1: Traditional Society Stage 2: Establishing the Preconditions for Takeoff Stage 3: Economic Takeoff Stage 4: The Drive to Maturity Stage 5: High Mass Consumption economy based on subsistence agriculture population growth and social and economic progress limited by natural controls (e.g., droughts, disease) government is often autocratic (i.e., absolute monarchies or dictatorships) social and governmental changes take place very slowly society must achieve a surplus of wealth that can be invested in vital economic sectors, e.g., transportation, communications, and natural resource exploitation achievement of these conditions results in a sense of national purpose creation of a more effective, responsive central government economy begins to change in response to technological innovations agriculture changes from primarily subsistence to primarily commercial manufacturing becomes a more important part of the economy tertiary sector of the economy expands in response to the growth of cities and the number of paid workers, who become customers for service providers economy experiences an extended period of sustained growth per-capita wealth increases as economic growth outpaces population growth nation develops a diversified economy as a result of the expansion of manufacturing and services the implementation of efficient production methods in primary and secondary industries. increasing percentage of the nation s wealth is invested in the economy many people have incomes that are greater than necessary for buying essentials such as shelter, food, clothing demand grows for additional consumer goods and services society is wealthy enough to invest in social programs such as healthcare and education Table 2 Answer key for page 179, question 6 a). Question 8 a) Canada has more extensive social programs than some countries, such as the US. Do these social programs put Canada at a competitive disadvantage compared to these countries? The Canadian government funds more social programs than, for example, the US government. The funds for these services come from taxes levied on companies and citizens, and are comparatively high. These high taxes might dissuade a corporation or entrepreneur from locating or investing in Canada. This puts Canada at a competitive disadvantage. Since Canadian companies must contribute toward many social programs enjoyed by citizens (such as government sponsored healthcare and Employment Insurance), costs for these programs are included in the cost of the product. The product will therefore cost more than the same product produced in the United States, thus putting Canada at a competitive disadvantage. Question 8 b) In what ways might Canada s extensive social programs give it a competitive advantage? Canada s extensive social programs might reduce the social problems related to poverty 126 Global Connections Teacher Resource

9 and ill health. Reduced poverty and ill health would lead to a healthier workforce. A healthier workforce would result in a reduction of lost hours of work and, consequently, lower production costs. Canada s extensive social programs (e.g., healthcare) allow companies to benefit because the companies do not have to develop and pay for healthcare plans for their employees. This ultimately reduces the cost of a product made by the company, and puts the company at a competitive advantage. Employment insurance that covers employees who have lost their jobs for one reason or another is the responsibility of government, not the employer. This ultimately reduces the cost of a product made by the company, and puts the company at a competitive advantage. Question 9 Many countries that used to have command economies have abandoned them. These include the countries that were formerly part of the Soviet Union (including Russia), the countries of eastern Europe, and China. Question 9 a) Choose one of these countries and research how the change from a command economy was accomplished. During the 1980s and 1990s, parts of eastern Europe and the countries of the former Soviet Union made a dramatic but steady transition. Their command economies, where the price and supply of goods and services were determined entirely by the government (as part of a totally planned economy) moved toward a free market economy, where the price of good and services is determined by supply and demand. Russia s state-owned companies were gradually sold off to private business concerns. In China, privatization slowly began in the late 1970s and continues at a more rapid pace today. Students could examine the nature of the economy before the change what prompted the change the time frame during which the change occurred/is occurring the role of government, industry, and other segments of society the positive and negative impacts of this change Question 9 b) Describe how this process has resulted in some people winning and others losing. When an economic system changes, some people within the society will benefit, while others will suffer. Who were the winners and losers in society before the change? Under totalitarian or autocratic governments that generally have command economies, the governing elite has a privileged lifestyle. They are entitled to better housing, better pay, and travelling privileges, while other citizens have fewer privileges and a lower standard of living. Who are the winners and losers after the change? Winners: Citizens in general may benefit as they become entrepreneurs, set up private businesses, and begin to earn more money. This will improve their lifestyle. Losers: With the development of a more democratic government accompanied by a command or mixed economy, the former governing elite may lose some of its privileges. Many people who expected the government to take care of them in their old age, lost this support and became poor. What caused each group to win or lose? The winners were often self-motivated young people who saw opportunities, while losers were often the elderly or those who had little or no motivation because throughout their lives the state took care of them. Each group s future prospects: Winners prospects look promising as economic development brings more opportunities for financial success. Losers prospects are not so promising if they are unable or unwilling to accept responsibility for their own financial well-being. Chapter 11: Geographic Models of Development and Change 127

10 Communication Note: An ArcView activity, Question 10, has been included in these questions. Question 10 What impact has colonialism had on the level of development of former colonies? One commonly used measure of social development is the UN Human Development Index (HDI). Complete a mapping exercise of HDI values, using either a paper base map or ArcView. (Your teacher will provide you with full instructions.) What relationship is there between those countries that were colonies and those with low HDI values? What pattern do you see? Please refer to the GIS section of this Teacher Resource for overall instructions on completing the GIS activities in the text. In doing this exercise, students will see that there is generally a high degree of correlation between former colonies and those with low to medium HDI values. Students work may be evaluated using AR 7 Mapping in the Assessment Rubrics section of this Teacher Resource. Line Masters/Assessment Masters AR 7 Mapping Question 11 Choose a country in Africa, or elsewhere, that was formerly a colony. Research its history during three eras: precolonial, colonial, and post-colonial. Prepare a poster or paper to show this history and to show how this country was affected by the process of colonization, the process of de-colonization (independence), and in some cases how it is affected by the process of neocolonialism. In your research, consider at least the following: original tribal boundaries, language distribution, boundaries established by the colonial power, boundaries today, type of government, economic development, social development, and cultural patterns. Students may work individually or in groups on this project. Some of the countries of former colonial powers that students might choose include: Britain: Egypt, Gambia, Sierra Leone, Ghana (Gold Coast), Nigeria, Sudan, South Africa, Zimbabwe (Rhodesia), and Kenya France: Algeria, Morocco, Gabon, Niger, Mauritania, Mali, and Madagascar Portugal: Angola and Mozambique Italy: Libya, Eritrea, and Somalia Belgium: Democratic Republic of Congo (Belgian Congo) Germany: Namibia (German Southwest Africa) and Cameroon Depending on how you assign this project, students work might be evaluated using Assessment Rubrics 6, 9, or 10 in the Assessment Rubrics section of this Teacher Resource. Line Masters/Assessment Masters AR 6 Research Paper/Project AR 9 Working Cooperatively AR 10 Collage/Poster Question 12 Interview a person born before 1950 to discover how the impact of globalization has changed life in Canada. In a group, compare your findings with those of others using a short oral report to show the social and economic impacts. For the interviews, students should develop a questionnaire. Questions may include: Were jobs mainly local or global in nature when you started working? Were companies mainly local, national, or international in nature? How have the availability and places of production of food changed? How has the place of manufacture of products (motor vehicles, consumer electronics) changed? Have products become relatively more or less expensive over time? Students work may be evaluated using AR 1 Oral Presentation in the Assessment Rubrics section of this Teacher Resource. 128 Global Connections Teacher Resource

11 Line Masters/Assessment Masters AR 1Oral Presentation Application Question 13 a) Suggest reasons why relatively small countries such as Great Britain and the Netherlands were able to develop huge empires. This is a favourite question among historians, since it seems odd that small numbers of Spanish invaders, for example, were able to conquer the mighty empires of the Aztecs and Incas. Superior military technologies, effective government structures, and money to finance exploration and exert control over foreign territories were significant factors in the development of colonial empires. With these attributes, small countries such as Great Britain and the Netherlands were able to develop colonial empires for sources of raw materials and a captive market for their manufactured goods. Question 13 b) Research the reasons why this happened. Were your suggestions on this question accurate? Student research might yield the following information. Because small countries have limited natural resources, they look for sources of materials beyond their own shores. Both countries were seafaring nations that had large navies and trading ships to develop empires. Foods and spices that the populations in each country wanted could not be grown in Europe, but were cultivated in the colonies of the two Empires. As manufacturing industries expanded, they required large markets that empires provided. Question 14 a) Identify one country for each stage of economic development in Rostow s model. Give evidence to support your choices. Students may wish to consult the CIA World Factbook for information at publications/factbook/index.html. Their answers might include any of the following. Stage 1: Traditional Society Many countries in sub-saharan Africa (such as Sudan, Chad, Niger, Somalia, Zambia) and other Far Periphery countries, such as Afghanistan, are limited by natural controls such as droughts and outbreaks of disease. The governments often feature absolute monarchies or dictatorships in conditions that have changed little over centuries. Stage 2: Establishing the Preconditions for Takeoff Some Far Periphery and Near Core countries, such as Ecuador, Paraguay, Nigeria, Namibia, Indonesia, and Vietnam, are now at this stage. They have achieved a surplus of wealth that can be invested in the countries infrastructure and resource exploitation. Stage 3: Economic Takeoff The economies are changing in response to technological innovations and agricultural changes from primarily subsistence to primarily commercial. Manufacturing becomes important and the tertiary sector expands. Many Near Core countries, such as Indonesia, Iran, Mongolia, and Pakistan, and poorer Near Core countries such as Honduras, Colombia, Algeria, Jordan, Philippines, and Iran, are at this stage. Stage 4: The Drive to Maturity There is an extended period of sustained growth, and the economy becomes more diversified with the continued expansion of manufacturing and service industries. New Core countries such as Bahrain, Chile, Peru, India, China, and Thailand are in this stage. Stage 5: High Mass Consumption All Old Core countries are in this stage, in which people have incomes that are greater than necessary for buying the essentials of life. Society is wealthy enough to invest in social programs such as healthcare systems, welfare, and educational opportunities. Question 14 b) Is Rostow s model still valid for describing economic development in the 21st century? Why or why not? (Hint: Consider the impact of economic and financial globalization discussed in Chapter 2.) Chapter 11: Geographic Models of Development and Change 129

12 Students may develop arguments to support either side of the question. The model is still valid: Countries still go through the different stages as they move from stage 1 to stage 5; they just do it at a much faster rate. Although countries may skip stages because of outside influences such as the introduction of technology from developed nations, they still move in the direction indicated by Rostow. The wealth that is needed for takeoff can be provided by external sources and does not need to be developed domestically. The model is no longer valid: Financial globalization involves interconnections among a network of world cities rather than among nations. Economic development, therefore, may not occur on a national level. A major component of economic globalization involves transnational corporations, many of which are more powerful and influential than some countries. Economic development may involve these companies more than nations. It is difficult to clearly identify the stages, as they merge together. Rostow s model is basically one of growth and does not deal with development in a wider context. Question 14 c) Work with one or more classmates to suggest how Rostow s model could be modified to better fit the economic characteristics of the 21st century. Students may suggest modifying Rostow s model to take into account the significance of major cities that are involved in financial globalization and the transnational corporations that conduct much of the world s trade. Question 15 Imagine you are a government official in an actual former colony that is in Rostow s Stage 1 of economic development. Your mandate is to prepare the country for the takeoff stage. What steps would you propose? Consider the following as you develop your strategy: Question 15 a) How did countries such as South Korea, Singapore, and Japan make this transition? These countries began by manufacturing inexpensive products that were easily massproduced in small factories or home-based enterprises. The income from this type of activity was invested in more complex manufacturing and heavy industries, such as steel fabrication and ship building. The income from such manufacturing was in turn invested in the country s infrastructure, educational institutions, research and development, and more complex manufacturing, such as motor vehicles and consumer electronics. Question 15 b) Where on the spectrum shown in Figure would you want the economy to be? Students answers are likely to reflect their own political perspective about what type of economic system works best and provides both maximized economic growth and a high degree of social advancement. Question 15 c) What importance would you place on programs like education, health, and environmental protection? Countries at the takeoff stage generally stress education and healthcare but pay little heed to environmental protection. Present your recommendations in a two-page report. The report may consist of an introduction, a brief commentary under each of the three headings, and a short conclusion. Students work may be evaluated using AR 2 Supported Opinion Writing in the Assessment Rubrics section of this Teacher Resource. Line Masters/Assessment Masters AR 2 Supported Opinion Writing Question 16 FOCUS ON GLOBALIZATION In Figure 11 11, it was stated that the new beneficiaries of economic activities in the former colonies are transnational corporations. It could also be argued that the beneficiaries of the presence of transnational 130 Global Connections Teacher Resource

13 corporations are the former colonies. Select a transnational company and examine its presence in a developing country. Is there a mutual benefit from the investment of the transnational, or does one party seem to gain more? Explain. Share your findings within a group in an oral or written report as directed by your teacher. Students may begin their research by using the name of specific transnational corporations (e.g., IBM, Nike, Coca-Cola, Bata, Exxon, Talisman Energy, Barrick Gold, Wal-Mart, and McDonald s). They may obtain other information if they use the keyword transnational corporations for searching the World Wide Web. Many of the sites they will encounter are those of NGOs and groups protesting the actions or influence of transnational corporations. Examples include: Environmental Investigation Agency: Global Policy Forum: Data Center: Impact Research for Social Justice: By examining the Web sites of a transnational and a protest group, students should obtain several points of view about the involvement of transnational corporations in former colonies. Students work may be evaluated using AR 3 Internet Search/Use in the Assessment Rubrics section of this Teacher Resource. Line Masters/Assessment Masters AR 3 Internet Search/Use Chapter 11: Geographic Models of Development and Change 131