Economic Geography Chapter 10 Development

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1 Economic Geography Chapter 10 Development

2 Development: Key Issues 1. Why Does Development Vary Among Countries? 2. Where Are Inequalities in Development Found? 3. Why Do Countries Face Challenges to Development? 4. Why Are Countries Making Progress in Development?

3 Key Issue 1: Why Does Development Vary Among Countries? 1.1 Introducing Development 1.2 A Decent Standard of Living 1.3 Access to Knowledge 1.4 Health and Wealth

4 Level of Development Developed States More developed country (MDC) Core countries- World System Theory DTM Stage 4/5 countries- Demographic Transition ETM Stage 4/5 countries- Epidemiological Transition Developing States Less developed country (LDC) Semi Periphery/ Periphery countries- World Systems Theory DTM Stage 2/3 countries- Demographic Transition ETM Stage 2/3 countries- Epidemiological Transition

5 Characteristics of Development LDC Low Uneven Primary High Subsistence by hand Rural High, High, Low Poor Infectious, poor Overcrowded, poor sanitation Poor with Illiteracy Inferior Characteristic Per capita Income Distribution of Wealth Dominate Industry % in Agriculture Farming is. Rural or Urban CBR. CDR. LE. Diet Diseases / medical Housing Education Women MDC High More even Secondary and Tertiary Low Commercial / mechanized Urban Low, Low, High Adequate to overeating Age and good Adequate, good sanitation Highly Developed Equal terms

6 Level of Development Usually expressed by Human Development Index (HDI) 1. Adequate standard of living 2. Long healthy life 3. Access to knowledge Standard of living Income 1. Gross National Income (GNI) Total income for a state Calculation: GDP + Money Received (salary/ benefits) divided by the pop GDP is the value of all goods and services produced in a year in a state Calculate the contribution of the average citizen in a state United States: 15 trillion GNI/ 312 million people = 48, Purchasing Power Parity (PPP) How much can you buy in comparison to people in other states

7 Human Development Index Figure 10-1: The Human Development Index measures development by country around the world.

8 Level of Development Income 3. Economic structure Primary sector Direct extraction of resources- fishing, mining, forestry, or agriculture Secondary sector Manufacturing that processes, transforms, and assembles raw materials as well as making finished consumer goods Tertiary sector Providing goods and services to people for paymentretailing, banking, law, education, government, etc Think Wallerstein (Core, semi-periphery, periphery)

9 GNI PPP Per Capita Figure 10-4: Gross national income per capita, adjusted for purchasing power parity.

10 1.2 Economic Structure Figure 10-5: Employment in the tertiary sector (services) has grown in both developed and developing countries while the primary and secondary sectors have declined.

11 Level of Development Income 4. Productivity Value of a product compared to the amount of labor needed to make it Developed states are more productive than developing states Value added The value of a product minus the costs of raw materials and energy US was $5,900; Japan was $6,700; China was $800; India was $ Consumer goods Developed countries use their wealth to purchase goods and services related to transportation and communications Think Hans Rosling video Greater divide between wealthy and poor in developing states

12 Productivity Figure 10-6: Workers contribute more to a nation s GDP per hour in developed countries than developing countries, representing a higher value added.

13 Motor Vehicles Figure 10-12: Motor vehicles are a consumer good that helps trade and allows access to jobs.

14 Cellular Telephones Figure 10-13: Cell phones are a consumer good that aids communication.

15 Internet Users Figure 10-14: Access to the Internet allows for greater sharing of information.

16 Level of Development Health and Life Nutrition and medical services HDI Indicator Life expectancy at birth 80 in developed; 68 in developing 75 in Latin America; 65 in South Asia; 55 in Africa Infant Mortality (IMR) Less than 1% in developed 6% in developing Access to Knowledge Quantity and Quality of Schooling Literacy rate 99% in Developed; less than 70% in developing Variation in development exists within states and regions

17 Life Expectancy at Birth Figure 10-11: By world region, life expectancy at birth ranges from the mid-50s to early 80s.

18 Mean Years of Schooling Figure 10-7: Mean years of schooling is the average number of years people aged 25 or older have spent in school.

19 Expected Years of Schooling Figure 10-8: Expected years of schooling is the average number of years today s 5-year-olds are expected to be in school.

20 Pupil/Teacher Ratio Figure 10-9: The pupil/teacher ratio is another measure of access to knowledge.

21 Literacy Rate Figure 10-10: The literacy rate is another measure of access to knowledge.

22 Key Issue 2: Where Are Inequalities in Development Found? 2.1 Unequal and Uneven Development 2.2 Gender Inequality 2.3 Gender Empowerment and Employment 2.4 Reproductive Health 2.5 HDI and Gender Inequality

23 Gender and Development No country in the world is without gender inequality Gender Inequality Index Empowerment, Labor force, Trends Inverse relationship with HDI: HDI high = Inequality Low 1. Empowerment Ability of women to achieve improvements to their own status Education and economic and political power are key indicators 2. Labor force Participation rate, level of job, compensation for work 3. Current Trends Inequality is going down world-wide BUT!!! The U.S. is lagging behind all other developed countries

27 Unequal and Uneven Development Inequality-adjusted HDI accounts for inequality within a country. Inequality within developed countries: example of Turkey vs. Brazil Inequality in developed countries: increasing since 1980 in many countries

28 Inequality-adjusted HDI Figure 10-15: Compare to Figure 10-1; many countries are ranked much lower after considering inequality.

29 Inequality Among Regions in Turkey Figure 10-16: Turkey s wealthiest regions are in the west; the eastern area is poorer on average.

30 Inequality Among Regions in Brazil Figure 10-17: Brazil s wealth is concentrated in the south and east, especially along the coast.

31 Inequality in the United States and United Kingdom Figure 10-18: The share of wealth held by the richest 1% has increased in the United States and United Kingdom since about 1980.

32 Gender Inequality Gender-related Development Index (GDI): Same measures as HDI but by sex. Gender Inequality Index (GII) measured through: Reproductive health Female empowerment Female labor force participation

33 Gender-related Development Index Figure 10-19: The GDI is a measure of how unequal women are relative to men on the measures used in the HDI.

34 Gender Inequality Index Figure 10-20: The GII is composed of measures of reproductive health, empowerment, and the labor market. Larger numbers indicate greater gender inequality.

35 Decrease in Gender Inequality Index Figure 10-21: Increased gender equality is a trend in most countries of the world.

36 Gender Inequality Index: Empowerment Figure 10-22: One measure of female empowerment is the percentage of seats held by women in a country s national legislative body.

37 Gender Inequality Index: Empowerment Figure 10-23: Another measure of female empowerment is the ratio of girls to boys in secondary school. Countries with ratios above 1 have more girls than boys enrolled.

38 Gender Inequality Index: Employment Figure 10-24: Female labor force participation as a percentage of male participation is a measure of gender inequality.

39 Gender Inequality Index: Reproductive Health Figure 10-26: The maternal mortality rate is included in the GII.

40 Gender Inequality Index: Reproductive Health Figure 10-27: The adolescent fertility (births per 1,000 women aged 15 to 19) rate is included in the GII.

41 Core and Periphery Figure 10-28a: In a world systems perspective, North America and Europe form the developed core, and the developing countries form the periphery.

42 Core and Periphery Figure 10-28b: The spatial relationship of the core and periphery is more apparent in a world map projection centered on the North Pole.

43 HDI and Gender Inequality Figure 10-30: The general relationship observed in this map is countries high in gender inequality are lower in overall development.

44 Key Issue 3: Why Do Countries Face Challenges to Development? 3.1 Two Paths to Development 3.2 World Trade 3.3 Financing Development 3.4 Development Challenges During Hard Times

45 Two Paths to Development Self-sufficiency: protect domestic production Example: India International trade: specialize and trade Examples: Asian Dragons, Arabian Peninsula Rostow s model of international trade: 1. Traditional society 2. Preconditions for takeoff 3. Takeoff 4. Drive to maturity 5. Age of mass consumption

46 Development Models MODERNIZATION DEPENDENCY WORLD SYSTEMS

47 Rostow s Modernization Model Known as the Stages/Ladder of Development Based on the idea of successive stages, each one leading to the next A country begins with a heavy reliance on primary activities, goes through industrialization and on to a mature stage of postindustrial development Has been a useful explanation of development in Europe and the US, and some countries have followed our lead We can identify countries currently in each stage

48 Critiquing Rostow The theory is too simplified- does not look at context Cultural differences are great and may make development hard- countries are locked in stages 1 & 2 Examples-the caste system, gender inequality, ethnic strife There are other ways to develop. Ex- Saudi Arabia & oil Does not address interdependency- we are connected. Can everyone become developed? We don t want everyone to get to a high mass consumption stage - it s bad for the environment Is there a stage 6- deindustrialization, where most people work in service jobs?

49 Dependency Theory Rostow s idea that every country will make progress if they compete in the world economy is unfair The late starters don t have the same advantages- We were free of effective competition & obstacles They must compete in a crowded field while facing barriers that came from our successes (colonialism) Political & economic relationships between MDCs control and limit the economic development possibilities of less well off areas Colonialism created dependency on the imperial powers This dependency sustains our prosperity & their poverty- it is built into the system (structuralist)

50 Dependency Theory Sees very little hope for economic prosperity in LDCs Some peripheral countries have advanced- this model is very pessimistic Also is weak on considering the uniqueness of each place- colonialism affected places differently

51 World Systems Theory ImmanualWallerstein There is only one world (not the 1 st world v. the 3 rd world) connected by a complex network of economic exchange relationships, with a three tier structure: core, periphery, semi-periphery Not all places can be equally wealthy in a capitalist world system Does not assume change will occur the same way in all places- sensitive to context

52 Self-Sufficiency: India Figure 10-32: Under self-sufficiency in India, imports were limited, and the government regulated domestic industries.

53 International Trade: United Arab Emirates Figure 10-33: A shopper in the United Arab Emirates chooses from a variety of products imported from other countries.

54 International Trade Triumphs Figure 10-34: Both developed and developing countries are increasingly reliant on trade as a contributor to GDP.

55 International Trade Triumphs Figure 10-35: India s GDP growth under self-sufficiency (left, before 1991) and under international trade (right).

56 World Trade Organization and Critics Figure 10-36: The World Trade Organization works to increase free trade between member countries. Critics like these pictured in the Philippines oppose the WTO for several reasons.

57 Financing Development Countries wishing to develop may need money: Foreign direct investment from corporations Loans World Bank International Monetary Fund

58 Growth in Foreign Direct Investment Figure 10-39: Foreign direct investment in East Asia and Latin America has grown faster than other developing regions.

59 Foreign Direct Investment Figure 10-40: Most foreign direct investment is out of and into developed countries in North America and Europe.

60 World Bank Development Assistance Figure 10-41: The World Bank loans the most to countries in Asia.

61 World Bank Development Assistance Figure 10-42: A World Bank-funded road construction project in Kabul, Afghanistan.

62 Debt as Percentage of GDP Figure 10-43: Sometimes international borrowing leads to more debt than countries can repay.

63 Development Challenges During Hard Times Debate over best way to deal with downturn: Stimulus: government spending to stimulate economy Austerity: spending cut dramatically International Monetary Fund imposes structural adjustment programs Disagreements in Europe over sovereign debt Microfinance: access to loans in developing countries with poor banking

64 Anti-austerity Protest Figure 10-44: Greek workers protest austerity measures put in place after the 2008 recession.

65 GDP Per Capita Change Figure 10-45: Greece did not recover from the 2008 recession as quickly as the United States or Germany.

66 Key Issue 4: Why Are Countries Making Progress in Development? 4.1 Fair Trade Standards 4.2 Measuring Progress

67 Fair Trade Standards Fair trade provides more equity for: Producers: greater share of price Workers: fair wages, rights Consumers: cooperative stores

68 Fair Trade Worker Standards Figure 10-47: Indian garment workers produce fair trade clothing from organic cotton.

69 Fair Trade and Consumers Figure 10-48: Cooperative grocery stores like this one in the United Kingdom are likely to stock fair trade products.

70 Measuring Progress: HDI Figure 10-49: HDI in developed and developing countries has had a nearly parallel trend.

71 Measuring Progress: HDI by Region Figure 10-50: The changing circle size shows the increase in development from 1980 to 2013.

72 Measuring Progress: Education Figure 10-51: Education in developed and developing countries has had a nearly parallel trend.

73 Measuring Progress: Life Expectancy Figure 10-52: Life expectancy in developing countries has been increasing more rapidly.

Contemporary Human Geography

Chapter 9 Lecture Contemporary Human Geography rd 3 Edition Chapter 9: Development Marc Healy Elgin Community College 9.1 Development Regions A developed country, also known as a More Developed Country