Chapter 9 Economic Development

Chapter 9 Economic Development

What does development mean? Brainstorm

Developed or not?

Developed or not?

Synonyms More Developed Country:

MDC Developed Country Relatively Developed Country

Less Developed Country: LDC Developing Country

How do we know? Brainstorm

How do we know? Human Development Index (HDI)

Created by the United Nations Measures the level of development of a country

based on 3 indicators: Economic (Gross Domestic Product) Social (Literacy Rate/Amount of Education) Demographic (Life Expectancy)

Ranges from 0 (Least developed) to 1 (Most developed).

Economic

The economic factor used by the HDI is Gross Domestic Product (GDP) per capita:

GDP is the value of total goods and services by a country per year. US GDP=$12 trillion/300 million people=$40,000/person

Avg. GDP/capita MDC=$27,000 Avg. GDP/capita LDC=$4,000

Per Capita GDP Does not measure distribution.

There may be very few starving people in an LDC and many in an MDC like the US. A small minority receive the majority of the GDP of a country.

Gap between LDCs and MDCs continues to increase despite gains made by LDCs.

Social Factors of HDI Quantitative measure:

Average number of school years attended. More years=more developed. 10 in MDCs, only a couple years in LDCs

Qualitative measure: Literacy Rate--% of a country’s people who can

read/write. 98% in MDCs; Less than 60% in LDCs

Demographic Factors Life Expectancy—How long a person can

expect to live. MDCs—70s LDCs—60s Think about population pyramids:

LDCs have a much higher number of children than adults.

Agenda HW Quiz Grade HW Quiz HDI Map Fill in Shirts, cars, shoes, phone—make your own

theory (excluding China) Neo-colonialism notes Exit Ticket

Neo-colonialism notes Core-periphery model: dependence Raw materials—exploitation

LDCs with certain materials—petroleum—are able to advance their position

Where do they come from? Your shoes

Phone

Shirt

Colonialism and Neocolonialism Colonialism is…

Industrial revolution increased the demands to remote parts of the world. For what???

Colonialism and Neocolonialism

Colonialism then… Dominated their resources, labor and markets

Neocolonialism—being a producer of primary products for processing in the west—this includes about 90.4% of the African continent.

Countries are being exploited and suffering even though they might be able to care for themselves. Cocoa or Cocaine???

Development Models Rostow’s Modernization Model:

Major decolonization occurred around the 1960s. Assumes that all countries follow a similar path to

development through 5 stages.

Rostow’s Modernization ModelAKA Ladder of Development

Stage 1: Traditional Dominated by subsistence farming

Stage 2: Preconditions to takeoff Comes from new leadership, openness and

diversity. Stage 3: Takeoff

Similar to Industrial Revolution, urbanization, mass production

Stage4: Drive to maturity New technologies, more international trade, pop.

growth slows Stage 5: High mass consumption

High incomes, movement to the tertiary sector

Criticisms of Rostow Rostow’s model is based on the

European/American experience. What is wrong with this viewpoint? In other words, why might Rostow’s model not apply to LDCs in Africa and Asia?

Drill 1. What is neocolonialism?

2. How does neocolonialism make Rostow’s model an ineffective one?

Wallerstein’s World-Systems Theory More useful than Rostow because it accounts

for scale, place and culture. 3 parts:

Core—areas that generate wealth through higher levels of education, technology, and higher wages. Headquarters.

Periphery—Require little education, generate little wealth for the people in that place. Dependent on the core.

Semi-periphery—The middle ground between the core and periphery. Some power, some wealth.

1. Which country has the highest HDI? 2. Lowest HDI? 3. Which factor do you think has the most influence

on the HDI? Why? 4. What patterns do you notice about the areas on

the HDI map? How does it relate to core-periphery? 5. Using the ideas of neocolonialism, how can MDCs

sustain their economic strength while keeping other regions impoverished even after decolonization?

Extension Baltimore/Anne Arundel County Song analysis US healthcare—Like an LDC, we pay 50%

TED talks video quiz

According to Richard Wilkinson, what happens to the standard of living in countries as the inequality gap increases? To answer this question, identify 3

factors that are affected as the gap of wealth inequality changes among different countries.

According to income, what occupations are valued as the highest in our society? List 3.

  According to income, list an occupation that is

undervalued in our society. Why do you think this?

  Is the economic inequity a problem in your

eyes? Why or why not?

Gender-Related Development Index GDI is similar to HDI

Measures life expectancy, education, and income differences of men and women in a country.

Countries lose points for large inequalities in men and women.

Complete equality =1.0

Gender Empowerment Measure GEM:

Calculated by combining economic power and political power of women.

Economic=% of women in professional and technical jobs.

Political=% of women in administrative and managerial jobs

Question What is the relationship between HDI and

GDI? Do they affect each other? Why or why not?

LDCs Need to Develop Faster 2 biggest problems:

Adopting policies that promote development Finding money to implement the policies.

2 ways LDCs are attempting greater development: International trade Self-sufficiency

Self-Sufficiency Model Reducing international trade to protect the

country’s businesses. High taxes on imports Limiting the quantity of imports Restricting the number of importers

Example: India=heavy government regulation. Indian government owned communications,

transportations, power companies, automakers, etc.

Problems with Self-Sufficiency Model ???

International Trade Model What materials can be sold to other countries

to better the economy? Think Rostow Successes:

The Four Asian Dragons: S. Korea, Taiwan, Singapore, Hong Kong. Why?

Arabian Peninsula States: Saudi Arabia, Kuwait, Bahrain, Oman, United Arab Emirates (UAE). Why?

Problems with International Trade Model ???

Copy the Chart and Fill it inFair Trade Free

Trade/Capitalism

Make a definition

Who benefits?

Which is better in your opinion?

Socratic Seminar Wrap-up What was the most interesting point made

today? Why?

Did you change your mind? Why or why not?

What did you want to say that you didn’t get a chance to?