Development & IndustryResources:• Textbook, Chapters 10 & 12• Wood book, Unit 6 (Industrialization &

Economic Development)Important Dates:5/4 – Chapter 10 & 12 Quiz5/6 – Development & Industry Test

DEVELOPMENTChapter 10

The single most important geographic fact of development is its’ striking unevenness.

http://www.rasmusen.org/x/2006/10/28/mark-newmans-cartograms/

Cartogram: World Population

http://www.rasmusen.org/x/2006/10/28/mark-newmans-cartograms/

Cartogram: GDP

Population

Economy

The difference is development.

How do you define & measure development?

Wealth does not depend only on what is produced, but largely on how and where it is produced.

• Development implies progress

• Often controversial b/c not tied to happiness, social stability or sustainability

• 3 major areas to measure: economic welfare, technology and production, social welfare

Indicators of DevelopmentEconomic indicators of development• Gross domestic product per capita• Types of jobs• Raw materials• Consumer goods

Social indicators of development• Education and literacy• Health and welfare

Demographic indicators of development• Life expectancy – Infant mortality

rate• Natural increase rate – Crude birth rate

Measuring Economic WelfareGross National Product (GNP)Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year, both inside and outside a country’s territory

Gross Domestic Product (GDP)Measure of the total value of the officially recorded goods and services produced with a country by the citizens and corporations in a given year

Gross National Income (GNI)Most common measurement used today – per capita

Measure of the monetary worth of what is produced within a country plus income received from investments outside the country

Limitations of GNI: 1. Formal economy vs. informal economy2. Distribution of wealth3. Measures only output, not costs of production

Annual GDP per capita, 2005

Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5000 in most less developed countries.

Informal economy

Formal economy

Other Ways of Measuring Development

Technology & Productivity:• Occupational structure of the labor force

(employment in sectors of the economy)• Productivity per worker (production divided by total

labor force)• Transportation and communications facilities per

person (per capita index of transportation and communications per person)

Social Welfare:• Dependency ratio (dependents, young and old, that

each 100 workers must support)

A measure of the number of people under the age of 15 and over the age of 65 who depend on each working-age adult

Dependency Ratio, 2007

Development ModelsCriticisms:

–“Progress” – industry better or worse?–Similar path or process in all countries

Walt Rostow’s Modernization model5 Stages of Development:

1. Traditional2. Preconditions of takeoff3. Takeoff4. Drive to maturity5. High mass consumption

AKA Rostow’s Ladder of Development

Problems with Rostow’s Model and the International Trade Approach

1. Developmentalism

• The idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability.

• This is not likely and is hard on the planet.

2. Increased dependence on MDC’s and their markets• Undue influence of many global policies, including those

of the U.N. and World Bank.

3. Market Stagnation• The MDCs have very limited population growth. Markets

for low-cost manufactured goods grow slowly today. • Undervalues the obstacles and competitive

disadvantages faced by late starters vs. those in the Core.