How do we describe the world? An old Cold War way…

First World

Second World

Third World

Democracy and Capitalism

Communism

Everyone Else

Does this describe DEVELOPMENT?

A Better Way?

First World

Second World

Third World

Fourth World

Fifth World?

Industrialized and Service-based

CommunismNewly

Industrializing Countries (NIC)

Least Developed Countries (LDC)

Lack Economy and Government

Economic Sectors: What is being produced?

Primary Sector

• Natural Resources and Agriculture

Secondary Sector

• Manufacturing

Tertiary Sector

• Service

How does this relate to development?

More Detailed Economic Sectors

Primary Sector

• Natural Resources and Agriculture

Secondary Sector

• Manufacturing

Tertiary Sector

• Service

Quaternary Sector

• Exchange of $$$ and Information - Business Services

Quinary Sector

• Health, R & D or Education -Consumer Services

What do LDC, NIC, and MDC’s look like?United States agriculture: 1.2%

industry: 21.9% services: 76.9%

Lets try some examples: click here

Let’s look at some factors that describe development.

Here are some cool maps.

What is the Solution to Development?

PLAN 1: Self-SufficiencyPLAN 2: Development Through

International Trade

1. What are the main ideas of each plan?2. What are some examples of countries who

have used the plans?3. Problems with each plan?

What is the Solution?PLAN 1: Self-Sufficiency• Spread investment in all sector and all regions in country.• Limit Imports and Exports (tariffs, quantity, license).• Government subsides to help some areas.• Examples?

The Problems with Plan 1:1. Inefficient Capitalism: Even the weak survive?2. Bureaucracy: Waste of time & money. Black market?

What is the Solution?PLAN 2: Development Through International Trade

• Sell what you have on the world markets! (Animal, veggies, mineral, manufacturing/distribution, concentrate scarce resources on expansion of local industries.

• Take that $$$ and finance in other areas of development.The Problems with Plan 2:1. Uneven Resource Distribution2. Market Stagnation3. Increase Dependence on MDC’s

Examples?Four Asian Tigers/ Dragons (SK, S, T, HK) - What did they sell?

Arabian Peninsula - What did they sell?

Development TheoriesWhy are some more developed than others?

RostowDependencyStructuralistWorld Systems:Wallerstein

International Trade

Calls for a country to identify its distinctive or unique economic assets. According to the international trade approach, a country can develop economically by concentrating scarce resources on expansion of its distinctive local industries.

Rostow’s Development Model – -The traditional society-The preconditions for take off-The takeoff-The drive to maturity-The age of mass consumption

Rostow’s Model of Development

Rostow’s Ladder of Development

What about the other development theories?

• Dependency

• Structuralist

• World Systems: Wallerstein

• Pol & Econ relations control and limit development. (Dollarization)

• …part of the structuralist theory

• Structure in the world have made change difficult. (Neo-Colonialism)

• It’s all HISTORY!

• 3-Tier Structure (C,SP,P) Not everyone can be equal. We can look at this in different scales.

Why Do LDCs Face Obstacles to Development?

International trade approach triumphs The path most commonly selected by the end

of the twentieth century Countries convert because evidence indicates

that international trade is the more effective path toward development▪ Example: India

World Trade Organization Foreign direct investment

How do you pay for development?

LOANS…IMF and World Bank

Millennium Development Goals by 20151. Eradicate extreme poverty and hunger2. Achieve universal primary education3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria, and other diseases7. Ensure environmental sustainability8. Develop a global partnership for development

Do the loan projects work?How do you pay them back?

Why Do Countries Face Obstacles to Development?

• Making Progress in Development• Closing the Gap

• Progress in reducing the gap in level of development between developed and developing countries varies depending on the variable:• Infant Mortality Rate

• Gap has narrowed from 17 to 6 (per 1,000) in developed countries and from 107 to 44 developing countries.

• Life Expectancy• Gap has not narrowed.

• GNI Per Capita• Gap in wealth between developed and developing countries has

widened.

Other Options???

•Fair Trade: protect workers and small businesses in LDC…it

costs more…but it is “Fair”. (It eliminates some of the exploitation of workers)

•NGOs and Microloans: Work to help the little man and woman!

KIVA.org

What does Development Mean?

•Development implies “progress”

-Progress in what?-Do all cultures view development the

same way?-Do all cultures “value” the same kinds

of development?

How does Geography affect Development?• Dependency Theory• The political and economic relationships between

countries and regions of the world control and limit the economic development possibilities of poorer areas.

-- Economic structures make poorer countries dependent on wealthier countries.

-- Little hope for economic prosperity in poorer countries.

http://www.cnn.com/video/#/video/bestoftv/2013/04/27/exp-gps-0428-witw.cnn

How Government Policies Affect Development

•Governments -get involved in world markets-price commodities-affect whether core processes produce wealth-shape laws to affect production-enter international organizations that affect trade-focus foreign investment in certain places-support large-scale projects

entities that operate independent of state and local governments, typically, NGOs are non-profit organizations. Each NGO has its own focus/set of goals.

Nongovernmental Organizations (NGOs)

Microcredit program:

loans given to poor people, particularly women, to encourage development of small businesses.

Summary• To develop more rapidly, developing countries must adopt

policies that successfully promote development and find funds to pay for it.