Basic Terms Rostow’s Modernization Model Dependency Theory World Systems Microcredit Other issues

Basic Terms

Rostow’s Modernization Model

Dependency Theory

World Systems

Microcredit

Other issues

Geography of Development

www.therightplanet.com

http://www.ted.com/talks/hans_rosling_and_the_magic_washing_machine.html

Let’s let Hans Rosling get us started

• Informal Economy

• MDCs and LDCs

• GNP, GDP and GNI

• PPP and Big Mac Index

• HDI and Better Life Index

• Neocolonialism

• NIDL

• EPZs and SEZs

• Maquiladoras

• NGOs

• MNCs

• Parallel States

Basic Terms

• Globalization?

• Define and give some examples

• Informal Economy

• MDCs and LDCs

• GNP, GDP and GNI

• PPP and Big Mac Index

• HDI and Better Life Index

• Neocolonialism

• EPZs and SEZs

• Maquiladoras

• NGOs

• Parallel States

Basic Terms

http://www.forbes.com/fdc/welcome_mjx.shtml

http://www.oxfamblogs.org/fp2p/?p=285

• Informal Economy

• MDCs and LDCs

• Colonialism & Neocolonialism

• EPZs and SEZs

• Maquiladoras

• NGOs

• Parallel States

• GNP, GDP and GNI

• PPP and Big Mac Index

• HDI and Better Life Index

Basic Terms

http://jong-preanger.deviantart.com/art/neocolonialism-183882158

The Motherland by Brouguereau – 1883 - http://en.wikipedia.org/wiki/Neocolonialism

• New International Division of Labor

• Outcome of globalization where labor moves across international borders

• Industrialized countries outputs have dropped, while LDCs has grown

• Improved transportation and growth of transnational corporations has fed the NIDL

What is the NIDL?

Rostow’s Modernization ModelSometimes called the Ladder of Development

http://www.studyblue.com/notes/note/n/unit-6-vocabulary/deck/5285919

• Stage One – TRADITIONAL – Subsistence – Static Society – Resist Technological Change

• Stage Two – PRECONDITIONS TO TAKEOFF – Progressive leadership moves country forward – More openness and diversity

• Stage Three – TAKEOFF – Industrial Revolution – Sustained Growth – Urbanization increases – Technology increases

• Stage Four – DRIVE TO MATURITY – Diffusion of Technology – Specialization – International trade expands – modernization – population increases

• Stage Five – HIGH CONSUMPTION – high incomes – widespread production of many goods/services – Most work in service sector

Rostow’s Modernization Model

• Liberalist Model

• What did the world look like when Rostow wrote this in 1960?

• For hint – see map pages 250-251

• What else does this model remind us of:• 1. Organic Theory• 2. 5 Economic Sectors• 3. Demographic Transition

Rostow’s Modernization Model

• Eurocentric and Americentric

• Doesn’t account for regional differences within a country

• Doesn’t account for cultural differences within a country

• Doesn’t account for one-commodity economies

• Neo-colonialism

• Major bias that all economies will grow the same way developed countries grew

• Rostow believed all countries would grow in an orderly fashion like Japan and Europe and the US did

• Use exercise to further understand Rostow

Criticisms of Rostow

• Structuralist Model

• Political and economic relationships between countries and regions control and limit development possibilities

• Example – colonialism created…

• Dependent relationships between mother country and the occupied country

• These relationships sustain prosperity of the core country and poverty of the periphery country

• Gives rise to NEOCOLONIALISM in the 1970s, 80s and on to the present

Dependency Theory – pp. 306-08

Dependency even in the Core?http://www.ritholtz.com/blog/2012/05/the-illusion-of-choice/

Global Carbon Footprinthttp://i.imgur.com/CVNUeml.jpg

• Structuralist Model

• Immanuel Wallerstein

• See handout

• Does NOT assume all countries will change the same way

• I call this the “Life sucks and then you die theory”

• The good news is that each sector is not necessarily static – can move from one sector to another

• 3 sectors that we have discussed before – These are relationships between countries – all three types need each other

• CORE

• SEMIPERIPHERY

• PERIPHERY

• But, who always wins?

World Systems Theory – pp. 308-09

• EPZs and SEZs

• Maquiladoras

• NGOs

• Parallel States

• World Cities

EPZs, SEZs and Maquiladoras

• Multinational Corporations

• Decisions made here affect stockholders, regions and states

• Also make decisions that make them actors on the global stage

• Examples

MNCs

Gender Inequality Indexhttp://www.hiidunia.com/2012/03/what-contribution-does-feminist-economics-make-to-the-understanding-of-gender-equality/

Millennium Development Goalshttp://ec.europa.eu/europeaid/what/millenium-development-goals/index_en.htm

• States in which employees do not have to join unions as part of their jobs

• PRO – employee has the right to be in a union or not be in a union. All employees do not have to pay union dues if they do not want to

• CON – employers choose these states because they can pay lower wages and not guarantee work, pay levels or certain benefits to employees

http://en.wikipedia.org/wiki/Right-to-work_law

Right to Work States

• NGOs

• Global Actor

NGOs

• World Cities

• These cities function at the global scale – meaning, reaching beyond state borders and functioning as service centers for the global economy

• Examples are…

• New York City, London and Tokyo

• See map for more information

• Primate Cities

• Disproportionately large and exceptionally expressive of the national culture and center of the country’s economy.

• Many former colonies have primate cities

• Examples are Paris, Mexico City, Athens, Cairo, Lima, Seoul

World or Global Cities and Primate Cities– pp. 295-97

Countries without a primate city according to wikipedia.

Can you say, effects of colonialism?

Microcredit

What about development terms like PPP, HDI and such? What does this say?

• Parallel States

• World Cities

Parallel States