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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. - PowerPoint PPT Presentation
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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?